Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 2,087.3 million, representing a 7.6% increase from RMB 1,940.1 million in the same period of 2022[2]. - Gross profit increased to RMB 283.1 million, up 35.5% from RMB 209.0 million year-on-year[2]. - Operating profit rose to RMB 108.2 million, reflecting a 16.6% increase compared to RMB 92.8 million in the previous year[2]. - Profit before tax surged by 76.4% to RMB 65.1 million, compared to RMB 36.9 million in the same period last year[2]. - Net profit for the period was RMB 56.8 million, an increase of 82.6% from RMB 31.1 million in the prior year[2]. - Basic and diluted earnings per share were both RMB 0.04, up from RMB 0.02 in the same period of 2022[2]. - Total revenue for the six months ended June 30, 2023, was RMB 2,087,283 thousand, an increase from RMB 1,940,124 thousand for the same period in 2022, representing a growth of approximately 7.6%[16]. - Revenue from the sale of oil and gas pipes was RMB 1,337,357 thousand, up from RMB 1,113,416 thousand, indicating a growth of about 20.2% year-over-year[16]. - The segment for new energy pipes and special seamless steel pipes generated revenue of RMB 691,746 thousand, compared to RMB 801,918 thousand in the previous year, reflecting a decline of approximately 13.7%[20]. - Gross profit for the reportable segments for the six months ended June 30, 2023, was RMB 283,134 thousand, an increase from RMB 210,410 thousand in 2022, showing a growth of about 34.5%[21]. - The group's profit for the reporting period was RMB 56.8 million, an increase of approximately 82.6% compared to RMB 31.1 million in the same period of 2022, primarily due to increased revenue and gross profit[57]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 2,462.7 million, compared to RMB 2,354.9 million at the end of 2022[5]. - Total liabilities increased to RMB 1,070.5 million from RMB 1,004.3 million at the end of 2022[5]. - The company's equity attributable to shareholders was RMB 1,392.3 million, slightly down from RMB 1,404.3 million at the end of 2022[5]. - Trade receivables, net of loss provisions, amounted to RMB 660,855,000 as of June 30, 2023, compared to RMB 495,879,000 as of December 31, 2022, reflecting an increase of approximately 33.3%[32]. - Trade payables were RMB 684,643,000 as of June 30, 2023, up from RMB 545,263,000 as of December 31, 2022, indicating a growth of about 25.5%[35]. - The company’s total trade receivables and notes receivable amounted to RMB 1,277,982,000 as of June 30, 2023, compared to RMB 1,095,685,000 as of December 31, 2022[32]. - The company’s total trade payables and notes payable were RMB 710,122,000 as of June 30, 2023, compared to RMB 560,730,000 as of December 31, 2022, reflecting an increase of approximately 26.6%[36]. - The debt-to-equity ratio decreased to 103.4% as of June 30, 2023, from 105.0% as of December 31, 2022, due to a reduction in interest-bearing loans[59]. - The current ratio improved from 1.18 as of December 31, 2022, to 1.20 as of June 30, 2023[60]. Costs and Expenses - The financing costs for the six months ended June 30, 2023, totaled RMB 43,180 thousand, a decrease from RMB 55,879 thousand in the same period of 2022, representing a reduction of approximately 22.8%[24]. - Research and development costs increased to RMB 22,645 thousand for the six months ended June 30, 2023, compared to RMB 16,203 thousand in 2022, marking an increase of about 39.9%[25]. - Selling expenses rose by approximately 62.1% to RMB 86.7 million, primarily due to increased revenue[53]. - Administrative expenses increased by about 31.4% to RMB 92.9 million, mainly due to higher labor costs and R&D expenses[54]. - The total employee costs for the reporting period were RMB 114.4 million, compared to RMB 105.2 million in the same period of 2022[60]. Market and Product Development - The company continues to focus on the development and sales of oil and gas pipes, new energy pipes, and special seamless steel pipes[6]. - The company plans to continue focusing on expanding its market presence and enhancing its product offerings in the new energy sector[19]. - The group achieved a 51.27% year-on-year increase in exports in the first half of 2023, primarily driven by oil and natural gas pipes[39]. - The company focuses on high-end energy pipes and has expanded its product range to include specialized pipes for oil drilling and new energy applications[40]. - The group has successfully optimized its market and customer base, significantly increasing the proportion of overseas sales compared to last year[42]. - The company has developed a high-strength, high-toughness oil casing that has been widely used in major domestic oil fields during the reporting period[42]. - The group aims to enhance its product strategy focusing on specialized oil and gas pipes, new energy pipes, and special seamless steel pipes to meet and lead customer demand[45]. - The management believes that despite a challenging external environment, the demand for the group's products will positively impact due to national policies promoting energy security and green development[44]. - The group is committed to digital transformation and green low-carbon transition through intelligent manufacturing and equipment upgrades[45]. Compliance and Governance - The group has adopted new and revised International Financial Reporting Standards (IFRS), including IFRS 17 on insurance contracts, which will not significantly impact the financial statements as the group does not have contracts within its scope[8][9]. - The amendment to IAS 8 provides further guidance on distinguishing between changes in accounting policies and changes in accounting estimates, which aligns with the group's current practices and will not have a significant impact on the financial statements[10]. - The amendment to IAS 12 regarding deferred tax related to assets and liabilities arising from a single transaction will not affect the group as it has not applied the initial recognition exemption for lease transactions[11]. - The amendment to IAS 12 introduces temporary mandatory exceptions for deferred tax accounting related to the OECD's Pillar Two legislative framework, which will not have a significant impact on the financial statements[12]. - The company has adhered to all corporate governance codes during the reporting period[69]. - The audit committee reviewed the accounting principles and practices, confirming no disagreements on the interim financial statements[70]. - The company has confirmed compliance with the standards for securities trading by its directors during the reporting period[69]. Future Plans and Investments - The net proceeds from the initial public offering amounted to approximately RMB 383.7 million, which will be used for various purposes including the second phase of expansion and enhancing R&D capabilities[65]. - As of June 30, 2023, the total unused net proceeds amount to RMB 383.7 million, with RMB 339.2 million allocated for the second phase of expansion[66]. - The company plans to utilize the remaining unused proceeds by December 31, 2023, following delays due to the pandemic[67]. - The company aims to strengthen product R&D and innovation capabilities, expanding its customer base and overseas market sales, which are projected to be RMB 7.7 million[66]. - General working capital and other corporate purposes accounted for RMB 27.6 million of the proceeds[66]. - The company did not hold any significant investments or major acquisitions or disposals during the reporting period[63]. - The company has no significant events occurring after the reporting period[69].

Financial Performance - Dalipal Holdings Limited reported a revenue of approximately $150 million for the fiscal year 2022, representing a year-over-year increase of 15%[1]. - The company achieved a net profit margin of 12%, with net income reaching $18 million, up from $15 million in the previous year[1]. - Dalipal Holdings Limited reported a revenue of HK$1.2 billion for the fiscal year 2022, representing a 15% increase compared to the previous year[12]. - The company achieved a net profit of HK$300 million, which is a 20% increase year-over-year[12]. - For the year 2022, Dalipal Holdings achieved revenue of RMB4.23 billion, representing a year-on-year increase of approximately 12.4%[20]. - The profit for the period amounted to RMB151.6 million, reflecting a year-on-year increase of 82.9%[20]. - The Group recorded total revenue of RMB 4,227.8 million for the year, representing a 12.4% increase from RMB 3,762.6 million in the previous year[62]. - The Group's total gross profit was RMB610.9 million, an increase of RMB193.4 million from RMB417.5 million in 2021, with a gross profit margin of 14.5%, up 3.4 percentage points from 11.1%[66]. - The Group's profit for the year was RMB151.6 million, representing an increase of RMB68.7 million compared to RMB82.9 million for the year ended December 31, 2021[69]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[12]. - Dalipal Holdings Limited has set a revenue guidance of $180 million for the fiscal year 2023, reflecting a growth target of 20%[1]. - The company is exploring potential acquisitions to diversify its product offerings and expand its customer base[1]. - The Group aims to enhance its market position through strategic management and operational efficiency, leveraging the extensive experience of its directors[36][37]. - The management team emphasizes the importance of sales and marketing investment management to drive growth[30]. - The Group plans to accelerate high-end manufacturing expansion and enhance market competitiveness through mergers and acquisitions[59]. Research and Development - Dalipal Holdings Limited is investing $10 million in R&D for new product development, focusing on innovative technologies in the manufacturing sector[1]. - Dalipal Holdings Limited is investing HK$100 million in new product development, focusing on advanced pipe manufacturing technologies[12]. - The leadership team emphasizes the importance of research and development to drive future growth and innovation[37]. - The Company is committed to increasing investment in research and development to facilitate innovation and smart technology manufacturing[176]. Operational Efficiency - The company has outlined a strategic goal to enhance operational efficiency, aiming for a 10% reduction in production costs by 2024[1]. - A new factory in Bohai New District is expected to increase production capacity by 30% by the end of 2023[1]. - The Group's integrated full-industry-chain production line allows for flexible and prompt responses to market changes, enhancing customer satisfaction and demand fulfillment[55]. - The Group has implemented smart manufacturing lines and automated warehouses to improve product traceability and operational efficiency[54]. - The company has implemented various self-developed systems in production organization and equipment management, contributing to operational efficiency[21]. Sustainability and ESG Initiatives - The company emphasizes its commitment to sustainability, with plans to reduce carbon emissions by 15% over the next three years[1]. - The company has initiated a new ESG strategy aimed at reducing carbon emissions by 50% by 2030[12]. - Dalipal plans to continue its emphasis on ESG development, talent cultivation, and product technology innovation in 2023[23]. - The Group is committed to comprehensive green development and technological innovation to create environmentally friendly products[59]. - The Group aims to achieve net zero emissions and promote good health and well-being of employees as part of its ESG initiatives[176]. Corporate Governance - The Connected Persons' Share Award Plan was adopted to align the interests of directors with shareholders, enhancing corporate governance[12]. - Dalipal Holdings Limited's corporate governance committee is actively reviewing compliance with the latest Listing Rules to ensure transparency[12]. - The Company has complied with all relevant code provisions set out in the Corporate Governance Code during the Year[182]. - The Board consists of nine Directors, including Mr. Meng Fanyong as chairman and Mr. Zhang Hongyao as CEO since April 4, 2022[186]. - All independent non-executive Directors have confirmed their independence according to the Listing Rules[189]. - The Company ensures that all Directors have access to timely information and can seek independent professional advice at the Company's expense[193]. Management and Leadership - Mr. Meng Fanyong has over 41 years of experience in the oilfield equipment business and has been with the Group since September 1998[28]. - Mr. Zhang Hongyao, appointed as CEO on April 4, 2022, has more than 18 years of experience in the oil pipe manufacturing industry[30]. - The Group's management structure includes directors with significant industry experience, ensuring informed decision-making[36][37]. - The independent non-executive Directors possess qualifications in accounting, investment, or oil pipe production, providing strong support to the Board[189]. - The Group continues to leverage the extensive experience of its management team to drive operational efficiency and compliance[34]. Shareholder Information - The Board recommended a final dividend of HK$0.04 per share for the year, up from HK$0.03 per share in 2021[86]. - The annual general meeting is scheduled for May 23, 2023, with the register of members closing from May 18 to May 23, 2023[88]. - The Group's reserves available for distribution amounted to approximately RMB 189.1 million, included in the retained profits and share premium accounts[103]. - The Company repurchased a total of 3,932,000 shares during the year, enhancing shareholder value[98]. - The percentage of purchases attributable to the Group's five largest suppliers accounted for approximately 43.0% of total purchases, with the largest supplier accounting for approximately 13.3%[103]. Financial Management - The total cost of sales increased by 8.1% to RMB3,616.9 million, up from RMB3,345.1 million in 2021[66]. - The Group's administrative expenses for the year amounted to RMB171.5 million, an increase of 41.0% compared to RMB121.6 million for the year ended December 31, 2021[69]. - The Group's finance costs decreased by 8.4% to RMB108.8 million from RMB118.8 million for the year ended December 31, 2021, primarily due to a decrease in average interest rates[69]. - The Group's cash and cash equivalents amounted to RMB464.9 million, down from RMB551.6 million as of December 31, 2021[70]. - The debt to equity ratio decreased to 105.0% as of December 31, 2022, down 37.3 percentage points from 142.3% at the end of 2021[72].

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 4,227.8 million, representing a 12.4% increase from RMB 3,762.6 million in 2021[2] - Gross profit for the same period was RMB 610.9 million, up 46.3% from RMB 417.5 million in 2021, with a gross margin of 14.5% compared to 11.1% in the previous year[2] - Operating profit increased by 30.7% to RMB 285.8 million from RMB 218.6 million in 2021[2] - Profit before tax rose significantly by 77.3% to RMB 176.9 million, compared to RMB 99.8 million in 2021[2] - Net profit for the year was RMB 151.6 million, an 82.9% increase from RMB 82.9 million in 2021, resulting in a net profit margin of 3.6%[2] - Basic and diluted earnings per share increased to RMB 0.10, up 66.7% from RMB 0.06 in 2021[2] Assets and Liabilities - Non-current assets totaled RMB 1,831.5 million, slightly down from RMB 1,873.9 million in 2021[5] - Current assets decreased to RMB 2,354.9 million from RMB 2,877.6 million in 2021, with a notable reduction in cash and cash equivalents[5] - Total liabilities decreased to RMB 2,782.1 million from RMB 2,734.6 million in 2021, indicating improved financial stability[5] - Total equity increased to RMB 1,404.3 million from RMB 1,346.5 million in 2021, reflecting a stronger balance sheet[5] Revenue Breakdown - Revenue from the sale of oil and gas pipes was RMB 2,635,098 thousand in 2022, up 57.5% from RMB 1,674,047 thousand in 2021[11] - The revenue from the sale of new energy pipes and special seamless steel pipes was RMB 1,567,886 thousand in 2022, a decrease of 17.3% from RMB 1,896,426 thousand in 2021[11] - The total revenue from other products was RMB 24,818 thousand in 2022, significantly down from RMB 192,156 thousand in 2021[11] Costs and Expenses - Employee costs increased to RMB 231,400,000 in 2022 from RMB 191,438,000 in 2021, representing a growth of approximately 20.9%[21] - Research and development costs rose significantly to RMB 39,792,000 in 2022, up from RMB 25,223,000 in 2021, marking an increase of about 57.7%[23] - Total sales costs rose by 8.1% to RMB 3,616.9 million, primarily due to increased sales volume and rising raw material and energy prices[52] - The total tax expense for 2022 was RMB 25,362,000, compared to RMB 16,816,000 in 2021, reflecting an increase of about 50.5%[25] Operational Highlights - The company reported significant improvements in operational performance compared to the previous year, despite challenges from geopolitical and economic factors[41] - The domestic market for oil and natural gas drilling pipes showed stable demand, particularly for specialized products[41] - The company aims to leverage its R&D capabilities and agile service to enhance its competitive advantage in both domestic and international markets[41] Strategic Initiatives - The company’s operational strategy focuses on enhancing its core products while diversifying into specialized pipes for drilling and new energy applications[40] - The company is committed to digitalization and green development as key strategies for future growth[46] - The company plans to accelerate its expansion in high-end manufacturing and seek suitable opportunities for mergers and acquisitions to increase market share[46] Shareholder Information - The company proposed a final dividend of RMB 0.04 per share for 2022, compared to RMB 0.03 per share in 2021, reflecting a 33.3% increase[37] - The total number of issued and paid-up ordinary shares as of December 31, 2022, was 1,498,468,000, slightly down from 1,501,200,000 in 2021[39] Governance and Compliance - The company has adhered to corporate governance standards and confirmed compliance with all relevant regulations during the year[71] - The annual performance and consolidated financial statements for the year have been reviewed and approved by the Audit Committee, confirming compliance with applicable accounting standards and regulations[73] - The board of directors includes both executive and independent non-executive directors, ensuring a diverse governance structure[81]

Revenue Growth - Dalipal Holdings Limited reported a significant increase in revenue, achieving a total of HK$500 million for the interim period, representing a 25% year-over-year growth[1]. - During the Reporting Period, the Group achieved a revenue increase of approximately 28.9% compared to the corresponding period last year[22]. - The Group achieved total revenue of RMB 1,940.1 million during the Reporting Period, representing an increase of 28.9% from RMB 1,505.7 million in the corresponding period of 2021[34]. - Revenue for the six months ended June 30, 2022, increased to RMB 1,940,124, representing a growth of 29% compared to RMB 1,505,671 in the same period of 2021[115]. - Sales of oil and gas pipes reached RMB 1,113,416,000, significantly up from RMB 442,531,000 in the previous year, marking a growth of 151.5%[140]. User Base and Market Expansion - The company’s user base expanded to 1.2 million active users, marking a 30% increase compared to the previous year[1]. - Dalipal Holdings Limited plans to enter two new markets in Southeast Asia by the end of the fiscal year, which is expected to contribute an additional HK$100 million in revenue[1]. - The Group dynamically adjusted its business strategies to stabilize the domestic market and expand overseas markets[17]. Profitability and Earnings - The Group's profit for the period amounted to RMB31.1 million, representing an increase of 78.7% compared to RMB17.4 million for the corresponding period last year[22]. - Basic earnings per share reached RMB0.02, reflecting a 100% increase compared to the corresponding period last year[22]. - Gross profit for the same period was RMB 209,002, up 44% from RMB 145,211 in 2021, indicating improved profitability[115]. - The total comprehensive income for the period was RMB 28,710, compared to RMB 16,342 in 2021, reflecting a growth of 76%[115]. Cost Management and Profit Margins - The gross profit margin improved to 40%, up from 35% in the previous year, reflecting better cost management and pricing strategies[1]. - The gross profit margin improved from approximately 9.6% in the previous year to approximately 10.8% during the Reporting Period[22]. - Gross profit increased to RMB209.0 million, up from RMB145.2 million, with a gross profit margin of 10.8%, an increase of 1.2 percentage points from 9.6%[40]. Research and Development - The company is investing HK$50 million in research and development for new technologies aimed at enhancing product efficiency and user experience[1]. - Research and development costs for the six months ended June 30, 2022, were RMB 16,203, compared to RMB 12,271 in 2021, marking a rise of 32%[160]. Cash Flow and Financial Position - The company’s cash flow from operations increased by 15%, reaching HK$120 million, providing a solid foundation for future investments[1]. - As of June 30, 2022, the Group's cash at bank and on hand amounted to RMB572.4 million, an increase from RMB551.6 million as of December 31, 2021[49]. - The net cash generated from operating activities was RMB 163,300,000, compared to a net cash used of RMB 220,988,000 in the same period of the previous year[125]. Corporate Governance and Management Changes - The company has complied with all corporate governance code provisions during the reporting period[69]. - Mr. Yin Zhixiang was re-designated from executive Director to non-executive Director effective April 4, 2022[73]. - Mr. Bai Gongli ceased to be the chief executive officer of the Group on April 4, 2022, but continues as the general manager of Dalipal Pipe Company[73]. Shareholder Information and Share Options - The total number of issued shares of the company as of June 30, 2022, is 1,498,468,000[83]. - During the reporting period, 4,000,000 share options were granted, with an exercise price of HKD 2.56 per share[103]. - The Share Option Scheme allows for the issuance of options not exceeding 10% of the total shares in issue as of the Listing Date, which is 150,000,000 shares[100]. Sustainability Initiatives - Dalipal Holdings Limited is focusing on sustainability initiatives, with plans to reduce carbon emissions by 20% over the next three years[1]. - The Group's short-process electric arc furnace production technology has reduced carbon emissions by more than 50% compared to traditional methods[27].

Financial Performance - Dalipal Holdings Limited reported a revenue of HKD 1.2 billion for the fiscal year 2021, representing a year-on-year increase of 15%[3]. - The company achieved a net profit of HKD 300 million, which is a 20% increase compared to the previous year[3]. - The company reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year ending December 31, 2021[16]. - The company recorded a profit of approximately RMB 82.9 million for the year ended December 31, 2021, a significant improvement compared to a loss of RMB 117.9 million in 2020[23]. - The company’s annual revenue increased by 66.5% compared to the previous year, reaching RMB 829 million[41]. - The net profit for the year was RMB 829 million, a 170.3% increase from the previous year's loss of RMB 116.4 million[41]. - The company achieved total revenue of approximately RMB 3,762.6 million, a significant increase of about 66.5% compared to RMB 2,259.4 million for the year ended December 31, 2020[45]. Market Expansion and Strategy - Dalipal Holdings Limited plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[16]. - Future guidance estimates a revenue growth of 10-15% for the next fiscal year, driven by new product launches and market expansion[3]. - The company provided a future outlook, projecting a revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[16]. - The company aims to optimize its product structure, focusing on oil well pipes, and establish a market distribution of 30% international and 70% domestic[23]. - Future growth points include collaboration with the new energy industry and extending services into new business areas[23]. Research and Development - The company is investing HKD 100 million in R&D for new product development, focusing on advanced oil and gas equipment[3]. - Investment in R&D increased by 30%, amounting to HKD 300 million, focusing on innovative technologies and product enhancements[16]. - Research and development expenses increased by 18%, totaling $50 million, to support new technology initiatives[30]. - The company plans to enhance its competitive edge in high-end products through proprietary research and advanced automated production facilities[42]. Operational Efficiency and Cost Management - Dalipal Holdings Limited aims to improve operational efficiency by implementing new technologies, projected to reduce costs by 5%[3]. - The company plans to implement cost-cutting measures, aiming for a 5% reduction in operational costs over the next year[30]. - The gross margin improved to 45%, up from 40% in the previous year, reflecting better cost management and pricing strategies[16]. Environmental, Social, and Governance (ESG) Initiatives - Environmental, social, and governance (ESG) initiatives are being prioritized, with a commitment to reduce carbon emissions by 20% by 2025[3]. - The company aims to achieve carbon peak by 2030 and carbon neutrality by 2050, aligning with national "dual carbon" goals[147]. - The company emphasizes innovation and sustainable development, implementing clean production and green manufacturing practices[147]. - The company has adopted a systematic environmental management system to monitor and control waste emissions and ensure compliance with environmental laws[170]. Employee Management and Welfare - The total number of employees as of December 31, 2021, was 1,729, an increase from 1,453 in 2020, with 1,726 being full-time employees[192]. - The company emphasizes the importance of employee welfare, ensuring timely payment of salaries and compliance with labor laws[190]. - The company has implemented a performance evaluation system to assess employee performance, which influences salary adjustments, bonuses, and promotions[196]. - The company is committed to providing equal employment opportunities and does not discriminate based on age, gender, race, marital status, religion, or disability[198]. Corporate Governance - The board of directors includes a mix of executive and independent non-executive members, ensuring governance and oversight[66]. - The company has established five board committees, including the audit committee, remuneration committee, nomination committee, corporate governance committee, and risk management committee[116]. - The company has complied with all relevant corporate governance code provisions during the year[103]. - The company encourages shareholder participation through annual general meetings, having held one such meeting this year[131]. Awards and Recognition - The company received the "Hebei Excellent Brand" title from the Hebei Trademark Brand Association[162]. - The company was awarded three honors including "2020 Hebei Contract-abiding and Trustworthy Enterprise" by the Hebei Credit Association[162]. - The company ranked 34th in the "Top 100 Innovative Private Enterprises in Hebei Province" for 2021[162]. - The company was recognized as an "Outstanding Enterprise" for its intellectual property work by the Hebei Market Supervision Administration[162].

Financial Performance - For the six months ended June 30, 2021, the company's sales revenue increased by approximately 52.2% compared to the same period last year, reaching RMB 1,505.7 million[8]. - The gross profit margin improved from approximately 7.3% in the same period last year to about 9.6%[8]. - The company recorded a net profit of approximately RMB 174 million for the first half of 2021, compared to a loss of approximately RMB 347 million in the same period of 2020[8]. - EBITDA increased by 149.2% to approximately RMB 132.3 million from RMB 53.1 million in the same period of 2020[23]. - The company reported a profit of approximately RMB 17.4 million for the period, compared to a loss of RMB 34.7 million in the first half of 2020[23]. - The total gross profit for the period was approximately RMB 145.2 million, a 100% increase from RMB 72.6 million in the first half of 2020, with an overall gross margin of 9.6%, up 2.3 percentage points from 7.3% in 2020[18]. - The company declared a total comprehensive income of RMB 16,342,000 for the first half of 2021, indicating a positive shift in financial performance[68]. - The group reported a pre-tax profit of RMB 17,436,000 for the six months ended June 30, 2021, compared to a loss of RMB 33,212,000 for the same period in 2020[88]. Sales and Revenue Breakdown - Sales revenue from oil-specific pipes decreased by 17.4% to approximately RMB 442.5 million, while sales of other oil pipes increased by 355.3% to approximately RMB 961.4 million[13]. - The company’s total revenue for the six months ended June 30, 2021, was RMB 1,505,671,000, representing a 52% increase from RMB 989,439,000 for the same period in 2020[82]. - Sales of oil-specific pipes amounted to RMB 442,531,000, while sales of other oil pipes and pipe blanks were RMB 961,394,000 and RMB 101,746,000 respectively, showing significant contributions to total revenue[77]. Operational and Market Conditions - The production and operational trends are recovering due to rising international oil prices and strengthened domestic energy policies promoting oil and gas exploration and development[8]. - The company is focusing on expanding new products and customer bases to enhance production efficiency[8]. - The company aims to improve overall performance and returns for shareholders as it gradually recovers from the pandemic's impact[8]. - The company is actively discussing the renewal of bank loans maturing by June 30, 2022, to ensure sufficient liquidity for operations[74]. - The company has implemented strategies to develop new markets and strengthen relationships with existing major customers to enhance operational cash flow[74]. Costs and Expenses - The sales cost for the period was approximately RMB 1,360.5 million, up 48.4% from RMB 916.8 million in 2020, primarily due to increased sales volume and rising raw material prices[17]. - The company’s administrative expenses decreased by 24.4% to approximately RMB 49.3 million from RMB 65.2 million in 2020, mainly due to a reduction in bad debt provisions and intermediary service fees[19]. - The company reported a significant reduction in depreciation, employee costs, and utility expenses during the pandemic, with these costs amounting to RMB 8,888,000 for the first half of 2021 compared to RMB 37,497,000 in the same period of 2020[81]. Cash Flow and Liquidity - As of June 30, 2021, the company had cash and cash equivalents totaling approximately RMB 419.8 million, compared to RMB 416.2 million on December 31, 2020[23]. - Operating cash flow for the six months ended June 30, 2021, was a net outflow of RMB 220,988,000, compared to an inflow of RMB 384,413,000 in the same period of 2020[70]. - Financing activities generated a net cash inflow of RMB 281,199,000 in the first half of 2021, a recovery from a net outflow of RMB 453,192,000 in the same period of 2020[70]. - The company anticipates that it will be able to refinance or obtain new bank financing to support its liquidity needs in the coming year[74]. Shareholder and Governance Information - The company has established five board committees to oversee specific matters in accordance with corporate governance codes[36]. - The company has complied with all corporate governance code provisions during the reporting period[33]. - The company’s shareholding structure indicates a concentration of ownership, with the top two shareholders holding a combined 75% of the total shares[47]. - The company is committed to maintaining compliance with the Securities and Futures Ordinance regarding the disclosure of interests in shares[46]. Research and Development - Research and development costs increased to RMB 12,271,000 for the six months ended June 30, 2021, up from RMB 11,261,000 in the same period of 2020, reflecting a focus on innovation[85]. COVID-19 Impact - The company has taken emergency measures in response to the COVID-19 pandemic, including reassessing product demand and supplier sustainability[116]. - The company has resumed production activities as demand and prices for oil and refined oil products have started to recover following the easing of the pandemic situation in mainland China[116]. - The company remains optimistic about the eventual control of the COVID-19 pandemic and will continue to monitor the situation closely[116].

Financial Performance - The company recorded a loss of approximately RMB 117.9 million for the year ended December 31, 2020, due to the impact of the COVID-19 pandemic on demand and pricing for its main product, oil casing pipes[8]. - The company reported a total revenue for 2020 of approximately RMB 2,259.4 million, a decrease of about 20.0% compared to RMB 2,826.0 million in 2019[28]. - The company recorded a loss of approximately RMB 117.9 million for the year, compared to a profit of RMB 337.4 million in the previous year[22]. - The gross profit margin for 2020 was approximately 4.6%, down from 18.9% in 2019, representing a decline of 14.3 percentage points[30]. - The overall gross profit for the year was approximately RMB 104.4 million, a decrease of about 80.5% from RMB 534.4 million in 2019[30]. - EBITDA decreased by approximately 87.1% from RMB 563.5 million in 2019 to approximately RMB 72.8 million in the current year[35]. - Other income for the year was approximately RMB 16.7 million, a decrease of approximately RMB 117.8 million from RMB 134.5 million in 2019, primarily due to the absence of government compensation for relocation of production facilities[31]. - The company’s sales cost for the year was approximately RMB 2,155.0 million, a decrease of about 6.0% from RMB 2,291.6 million in 2019[29]. - The company has set a revenue guidance of $500 million for the next fiscal year, reflecting a 10% growth target[17]. Market Strategy and Expansion - The company plans to continue expanding its overseas market presence to adapt to the new economic environment and market demands[8]. - The company aims to optimize its management system and enhance the information technology and intelligence levels of its product manufacturing to improve competitiveness[9]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[17]. - A strategic acquisition of a smaller competitor is anticipated to enhance the company's product offerings and market reach[17]. - The company is exploring partnerships with local firms to strengthen its supply chain and distribution networks in new markets[17]. Leadership and Management - Zhang Hongyao appointed as Executive Director and Vice Chairman, responsible for sales and marketing investment management[11]. - Xu Wenhong serves as Executive Director and Legal Counsel, overseeing overall legal compliance for the group[12]. - Meng Yuxiang appointed as Executive Director and Deputy CEO, managing human resources and production operations[13]. - Gan Shuyah serves as Executive Director and Chief Operating Officer, responsible for overall operations and financial management[14]. - The management team collectively brings extensive experience across various sectors, contributing to strategic decision-making[11][12][13][14]. Operational Challenges - The company faced significant challenges in 2020, including temporary shutdowns and supply chain disruptions, which affected its operational performance[8]. - The company emphasizes the importance of cash flow and profit management to provide a solid foundation for future development amid ongoing uncertainties[8]. - The company will not recommend any dividend distribution for the year ended December 31, 2020, reflecting a cautious financial management approach[8]. Environmental and Social Responsibility - The company has committed to sustainable development and maintaining high environmental and social standards[53]. - The company presented its second Environmental, Social, and Governance (ESG) report for the year ending December 31, 2020, highlighting significant management issues affecting operations[136]. - The company achieved a reduction in particulate matter emissions from 75.8 tons per year to 56.7 tons per year, sulfur dioxide emissions from 18.3 tons per year to 15.3 tons per year, and nitrogen oxides emissions from 51.8 tons per year to 48.1 tons per year[147]. - The company has established a comprehensive waste management plan, ensuring compliance with environmental laws and regulations[156]. - The company has implemented low-nitrogen combustion technology and advanced catalytic combustion technology to reduce exhaust emissions[147]. Employee Management and Training - The total number of employees as of December 31, 2020, was 1,453, a decrease from 1,888 in 2019[159]. - The company has implemented a performance evaluation system to assess employee performance, which influences salary adjustments, bonuses, and promotions[163]. - A total of 7,161 training sessions were conducted, with 2,005 employees participating, leading to a total of 465,022.02 training hours, although participation decreased due to the pandemic[173]. - The group strictly adheres to labor laws, ensuring no child or forced labor is employed, and maintains proper documentation for all employees[176]. Corporate Governance - The board consists of nine directors, including five executive directors and three independent non-executive directors, ensuring a balanced composition for effective leadership[100]. - The company has adopted the corporate governance code as per listing rules and has complied with all relevant provisions during the year[95]. - The board has established five board committees, including audit, remuneration, nomination, corporate governance, and risk management committees, each with defined responsibilities[103]. - The independent auditor's report confirms that the consolidated financial statements of the company accurately reflect its financial position as of December 31, 2020, in accordance with International Financial Reporting Standards[198]. Financial Management and Compliance - The company emphasizes compliance with laws and regulations, ensuring transparency and fair treatment of shareholders[141]. - The company has established confidentiality guidelines to protect customer and employee data, with strict penalties for unauthorized disclosure[182]. - The company has implemented anti-corruption training for sensitive position employees at least quarterly, and for other employees at least annually[184]. - The company has established policies for effective resource usage, including energy, water, and other raw materials[191].

Financial Performance - The company reported an operating loss of approximately RMB 34.7 million for the first half of 2020, a decrease of about 103.0% compared to a profit of RMB 178.9 million in the same period of 2019[10]. - Total sales for the first half of 2020 amounted to RMB 989.4 million, a decrease of approximately 31.5% from RMB 1,444.0 million in the same period of 2019[12]. - The overall financial performance of the company declined due to production interruptions caused by the pandemic and delays in customer resumption of work[10]. - The group recorded a revenue of approximately RMB 989.4 million, a decrease of about 31.5% compared to RMB 1,444.0 million in the same period of 2019[15]. - The total gross profit was approximately RMB 72.6 million, a decrease of about 72.8% from RMB 266.8 million in the first half of 2019, with a gross margin decline attributed to lower sales prices[18]. - EBITDA decreased by approximately 75.6% to about RMB 53.1 million from RMB 217.9 million in the first half of 2019[23]. - The group incurred a loss of approximately RMB 34.7 million, compared to a profit of about RMB 117.0 million in the same period of 2019[23]. - The company reported a loss before tax of RMB 53,486 thousand, compared to a profit of RMB 143,824 thousand in the previous year, reflecting a negative swing of approximately 137.2%[55]. - Total comprehensive loss for the period was RMB 35,618 thousand, contrasting with a total comprehensive income of RMB 117,032 thousand in 2019, marking a decline of around 130.4%[55]. - Basic and diluted loss per share for the period was RMB (0.02), compared to earnings of RMB 0.10 per share in the same period last year[55]. Revenue Breakdown - Revenue from oil-specific pipes decreased by approximately 38.9% to RMB 535.9 million, compared to RMB 877.1 million in the same period of 2019[12]. - Revenue from other oil pipes increased by approximately 16.4% to RMB 211.1 million, compared to RMB 181.3 million in the same period of 2019[12]. - Revenue from pipe blanks decreased by approximately 37.1% to RMB 242.4 million, compared to RMB 385.6 million in the same period of 2019[12]. - Domestic sales accounted for 91.4% of total sales, amounting to RMB 904.7 million, while international sales accounted for 8.6%, amounting to RMB 84.7 million[12]. - The company experienced a 21.1% decrease in export revenue, which fell to RMB 84.7 million from RMB 107.3 million in the same period of 2019[14]. - Revenue from mainland China for the six months ended June 30, 2020, was RMB 904,721,000, a decline of 32.3% compared to RMB 1,336,726,000 in 2019[75]. Cost and Expenses - The cost of sales amounted to approximately RMB 916.8 million, down about 22.1% from RMB 1,177.2 million in the same period of 2019, primarily due to a decline in sales volume[17]. - Administrative expenses rose to approximately RMB 65.2 million, an increase of about 5.7% from RMB 61.7 million in the first half of 2019[19]. - Financial costs increased by approximately 37.7% to RMB 48.2 million from RMB 35.0 million in the same period of 2019, mainly due to interest on capitalized project loans[20]. - The company reported a financing cost of RMB 48,203 thousand for the period, which is a significant increase from RMB 35,038 thousand in the previous year[55]. - The company’s administrative expenses totaled RMB 65,186 thousand, an increase from RMB 61,728 thousand in the previous year[55]. Cash Flow and Liquidity - Net cash generated from operating activities was RMB 384,413 thousand, significantly up from RMB 74,043 thousand in the previous year[68]. - Cash and cash equivalents decreased by RMB 102,724 thousand, compared to an increase of RMB 214,421 thousand in the previous year[68]. - The company reported a net cash outflow from financing activities of RMB 453,192 thousand, compared to a net inflow of RMB 360,244 thousand in the previous year[68]. - The company had cash and cash equivalents of RMB 469,981 thousand as of June 30, 2020, down from RMB 572,067 thousand at the beginning of the year[68]. - The company’s total liabilities decreased, indicating improved financial stability despite the reported losses[56]. Impact of COVID-19 - The COVID-19 pandemic has led to a decline in sales and prices of oil-specific pipe products, resulting in a temporary suspension of production activities until the situation began to stabilize[113]. - The company has taken emergency measures in response to the pandemic, including reassessing product demand and adjusting production activities based on market fluctuations[113]. - The company has implemented various measures to mitigate the impact of the pandemic, including reassessing product demand and prices, and expanding the supplier base[14]. - The company remains optimistic about the eventual control of the COVID-19 pandemic and continues to monitor the situation closely[113]. - The exact timing and scope of business recovery remain uncertain and depend on the development of the pandemic[113]. Investments and Capital Expenditures - The company invested approximately RMB 22.5 million in property, plant, and equipment, a decrease of RMB 246.6 million compared to RMB 269.1 million in the first half of 2019[24]. - The company allocated RMB 339.2 million for Phase II expansion, with RMB 200.0 million already utilized as of June 30, 2020[30]. - The company has capital commitments related to property, plant, and equipment amounted to RMB 173,688 thousand, a decrease of 12.5% from RMB 198,474 thousand as of December 31, 2019[109]. Corporate Governance - The company has established five board committees to oversee specific matters, ensuring compliance with corporate governance codes[33]. - The Audit Committee reviewed the unaudited interim financial information for the six months ended June 30, 2020, confirming it was prepared in accordance with applicable accounting standards[33]. - The company has adopted a set of codes for securities trading by directors, ensuring compliance with the standards set forth in the listing rules[33]. Shareholder Information - The company’s major shareholder, Mr. Meng Fanyong, owns approximately 80.6% of Shengxing Limited[39]. - The company’s major shareholder, Ms. Luo Yumei, holds 706,353,600 shares, equivalent to 47.1% of the total issued shares[41]. - The company has a total of 42,300,000 stock options outstanding as of June 30, 2020, with a weighted average exercise price of HKD 0.477[107]. - The company proposed no interim dividend for the six months ended June 30, 2020, compared to a dividend of zero for the same period in 2019[103].