财务数据显示，截至2024年12月31日，珠江钢管实现营业总收入29.4亿元，同比增长10.9%；归母净利 润2.13亿元，同比增长15.72%；毛利率17.6%，资产负债率80.95%。 6月16日，截至港股收盘，恒生指数上涨0.7%，报24060.99点。珠江钢管（01938.HK）收报0.212港元/ 股，上涨12.77%，成交量348.7万股，成交额74.94万港元，振幅20.21%。 最近一个月来，珠江钢管累计跌幅1.57%，今年来累计涨幅10.59%，跑输恒生指数19.11%的涨幅。 资料显示，珠江石油天然气钢管控股有限公司是中国大型直缝焊管制造商和出口商,2010年于香港联合 交易所主板上市(股票代码:01938.HK),总部位于广州番禺,拥有香港、云浮、南京等多个办事处,主要生产 基地位于珠海、连云港。公司现有齐备的JCOE、COE、SAWH、三辊成型、复合管线等焊管生产线,配 有内外防腐和水泥配重生产线,年产能达到180万吨。公司可批量供应406mm-1829m(16"-72")的大直缝双 面埋弧焊管(SAWL)、245mm-762mm(9"-30")的直缝高频焊管(HFW)、508mm-4 ...

Financial Performance - The Group recorded sales of approximately RMB2,939.9 million for the year ended 31 December 2024, representing an increase of approximately 10.9% compared to RMB2,651 million in 2023[25]. - The profit for the year was approximately RMB212.7 million, up from RMB183.8 million in 2023[25]. - Earnings per share attributable to ordinary equity holders was approximately RMB0.21, compared to RMB0.18 in 2023[25]. - The Group recorded sales of approximately RMB 2,939,900,000, an increase of about 10.9% compared to RMB 2,651,000,000 in the previous year[27]. - The Group's profit was approximately RMB 212,700,000, up from RMB 183,800,000 in the previous year[27]. - Earnings per share for ordinary shareholders was approximately RMB 0.21, compared to RMB 0.18 in the previous year[27]. - The Group's revenue increased from RMB 2,651 million in 2023 to approximately RMB 2,939 million in 2024, primarily due to an increase in overseas sales of steel pipes[100]. - Overseas sales for 2024 were approximately RMB 2,218.7 million, representing a 61.9% increase compared to approximately RMB 1,370.5 million in 2023, accounting for 79.6% of total steel pipe revenue[107]. - Gross profit from steel pipe sales for 2024 was approximately RMB 494.6 million, a decrease of about 3.7% from RMB 513.4 million in 2023, with a gross profit margin of 17.7%[106]. - Revenue from property development and investment decreased by approximately 41.4% to RMB152.3 million in 2024 from RMB260.0 million in 2023, a decline of RMB107.7 million[112]. Production and Capacity - The Group's production capacity as of 31 December 2024 was 1,800,000 tonnes[9]. - The Group delivered a total of 414,000 tonnes of steel pipes and received orders for 272,000 tonnes, consolidating its leading position in the industry[26]. - The Group has successfully produced and developed deep sea welded pipes for use at depths of 3,500 meters underwater, making it the first and only manufacturer in China to achieve this[81]. - The Group's steel pipe products are widely used in major oil and gas pipeline projects, both onshore and offshore, as well as in infrastructure projects domestically and internationally[81]. Market and Industry Trends - The ongoing Russia-Ukraine conflict and tensions in the Middle East have created uncertainties in the global energy market, impacting international trade[24]. - The construction of natural gas pipelines in China continues to present development opportunities for the Group amid the adjustment of its energy structure[24]. - The global economic recovery remains uncertain in 2025, influenced by various geopolitical factors and market dynamics[40]. - The Group anticipates that 2025 will remain a challenging year for the oil and natural gas industry due to ongoing geopolitical tensions and economic factors[168]. Innovation and Technology - The Group holds 114 patents, including 51 invention patents, and has 19 international quality certificates[10]. - The Group is the first and only steel pipe manufacturer in the PRC to develop deep sea welded steel pipes for use at a water depth of 3,500 meters[10]. - The Group's deep-sea development strategy focuses on oil and gas resources, with significant advancements in deep-sea pipeline technology since 2012[38]. - The Group's commitment to independent innovation and marine engineering aligns with national strategies to support China's maritime power ambitions[41]. Awards and Recognition - The Group was awarded the "Specialized and New Annual Masterpiece" case award by China Media Group in January 2024, outperforming among 12,000 specialized enterprises nationwide[37]. - The Group has been accredited with 14 international quality certifications, including those from Det Norske Veritas and the American Petroleum Institute[81]. - The Group is classified as a member of the Offshore Engineering Equipment Industry, capable of manufacturing subsea pipes and drilling platform structure pipes for offshore projects[82]. Financial Management - The Group has fully repaid its bonds from December 31, 2024, aiming to lighten its financial load and achieve better results[43]. - As of December 31, 2024, the Group's total borrowings amounted to approximately RMB1,865 million, with 45% being long-term borrowings and 55% short-term borrowings[154]. - The Group's gearing ratio remained stable at approximately 28.7% in 2024 compared to 28.5% in 2023, indicating no major change in capital structure[150][152]. - Net cash flows from operating activities decreased to approximately RMB205.9 million in 2024 from RMB431.1 million in 2023[138]. Leadership and Management - Ms. Chen Zhao Nian, aged 48, is responsible for the daily management and operations of the Group, having joined in October 2002[191]. - The Company has a strong leadership team with Ms. Chen serving in significant roles within various local and provincial organizations[194]. - The leadership team emphasizes social responsibility and community engagement, as evidenced by Ms. Chen's recognition as a socially responsible entrepreneur[190]. - The Company aims to leverage its leadership's extensive network and experience to drive growth and development in the industry[196].

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 2,939,876,000, representing an increase of 10.9% compared to RMB 2,650,852,000 in 2023[2]. - Gross profit for the same period was RMB 517,414,000, down 6.6% from RMB 554,210,000 in the previous year[2]. - The net profit attributable to the owners of the company was RMB 212,671,000, an increase of 15.7% from RMB 183,778,000 in 2023[3]. - Basic and diluted earnings per share rose to RMB 0.21 from RMB 0.18, reflecting a growth of 16.7%[3]. - Adjusted profit before tax for the group was RMB 166,509,000, compared to RMB 39,079,000 in the previous year, reflecting a significant increase[25][31]. - The company reported a profit of approximately RMB 212.7 million in 2024, an increase from RMB 183.8 million in 2023[82]. Revenue Breakdown - The steel pipe division generated revenue of RMB 2,787,554,000, up 16.5% from RMB 2,390,855,000 in the previous year[27][31]. - The property development and investment division reported a revenue of RMB 152,322,000, a decrease of 41.3% from RMB 259,997,000 in 2023[25][31]. - Steel pipe sales accounted for 94.8% of total revenue in 2024, up from 90.2% in 2023, while property development and investment revenue decreased by 41.4% to RMB 152,322,000[67][71]. - The sales revenue from straight seam submerged arc welded pipes was approximately RMB 2,195,400,000, accounting for about 80.5% of the total steel pipe revenue for the year ending December 31, 2024[58]. - The revenue from spiral submerged arc welded pipes was approximately RMB 366,900,000, representing about 15.4% of the total steel pipe revenue, a significant decrease compared to the previous year due to reduced deliveries to infrastructure projects[59]. Assets and Liabilities - Total assets decreased slightly to RMB 4,075,599,000 in 2024 from RMB 4,374,358,000 in 2023[6]. - The total assets of the group as of December 31, 2024, were RMB 6,505,939,000, a slight decrease from RMB 6,421,421,000 in 2023[25][26]. - The total liabilities of the group were RMB 5,266,808,000, compared to RMB 5,345,346,000 in the previous year, indicating a reduction in liabilities[25][26]. - Current liabilities decreased to RMB 4,112,922,000 from RMB 4,374,358,000, indicating improved liquidity management[6]. - The company maintained a net current liability of RMB 427,360,000, an improvement from RMB 845,744,000 in the previous year[10]. Cash Flow and Financing - Cash and cash equivalents increased to RMB 53,323,000 from RMB 32,191,000, showing a positive cash flow trend[10]. - The group recorded a net exchange gain of approximately RMB 15.6 million in 2024, compared to RMB 15.1 million in 2023, mainly due to the appreciation of the US dollar against the RMB when collecting trade receivables[80]. - Net cash flow from operating activities decreased from approximately RMB 431.1 million in 2023 to RMB 205.9 million in 2024, influenced by increased inventory and trade receivables[84]. - Net cash flow used in investing activities increased from an outflow of approximately RMB 8.7 million in 2023 to RMB 55.8 million in 2024, primarily due to the acquisition of property, plant, and equipment[85]. - The group's total borrowings amounted to approximately RMB 1.865 billion as of December 31, 2024, with about 45% being long-term borrowings and 55% short-term borrowings[92]. Operational Highlights - The company delivered a total of 414,000 tons of steel pipes and received orders for 272,000 tons, further solidifying its leading position in the industry[46]. - The company successfully secured a contract for the construction of offshore platform structural modules, providing approximately 30,000 tons of specialized welded pipes for the Crux LNG facility[47]. - The company won a bid for the Middle East terminal project, which will become the largest port in the region, providing approximately 68,000 tons of spiral steel pipes for the project[48]. - The company participated in the TotalEnergies Supplier Day 2024, showcasing its experience in supplying a 1,500 km heated crude oil pipeline for the East African Crude Oil Pipeline (EACOP) project[49]. - The company supplied 90% of the pile foundation steel pipes for the Shenzhen-Zhongshan Channel, a key national infrastructure project, enhancing the durability of the structure[50]. Challenges and Market Conditions - The company is facing challenges in international trade due to global economic uncertainties, including the ongoing Russia-Ukraine conflict and a strong US dollar impacting the RMB[45]. - The company anticipates that 2025 will remain challenging for the oil and gas industry due to ongoing geopolitical tensions and economic slowdowns, but sees long-term support from China's focus on energy security and clean energy initiatives[98]. Corporate Governance - The company has adhered to all corporate governance codes as of December 31, 2024, ensuring compliance with the Hong Kong Stock Exchange regulations[105]. - The independent non-executive directors confirm that the controlling shareholder has fully complied with the non-competition commitments, with no new competitive businesses reported for the year ending December 31, 2024[107]. - The audit committee, consisting of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year ending December 31, 2024[108]. Future Outlook - The company plans to expand its insulation pipe business to meet the demand for green and low-carbon products, aligning with China's dual carbon goals[102]. - The company aims to diversify its steel pipe applications by participating in various global oil and gas engineering projects, targeting infrastructure and high-end construction sectors[104].

[Corporate Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Corporate Profile](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E6%B3%81) This section provides basic information on Pearl River Petroleum & Gas Steel Pipe Holdings Limited, including its board members, committees, and key advisors - The company's Chairman is **Mr. Chen Chang**, and its Independent Non-executive Directors include Mr. Ouyang Guanghua, Mr. Chen Ping, and Mr. Zhan Jianzhou[2](index=2&type=chunk) - The company's auditor is **Zhongzheng Tianheng Certified Public Accountants Co., Ltd.**[3](index=3&type=chunk) - The company's Hong Kong stock code is **1938**[3](index=3&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Financial Review](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's revenue grew while profit attributable to owners declined due to lower gross margins and increased financing costs Key Financial Indicators for H1 2024 | Indicator | H1 2024 (Unaudited) | H1 2023 (Unaudited) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 1.638 billion | RMB 1.195 billion | +37.1% | | Profit Attributable to Owners | RMB 129.5 million | RMB 158.0 million | -18.0% | | Earnings Per Share | RMB 0.13 | RMB 0.16 | -18.8% | | Interim Dividend | Nil | Nil | - | - Revenue growth was primarily driven by steel pipe sales, with the proportion of overseas sales revenue to total steel pipe revenue **increasing significantly to 79.1%** from 60.0% in the prior period[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - The gross profit margin of the steel pipe business **decreased to 18.7%** from 24.8% year-over-year, mainly due to a major overseas project with a relatively low gross margin[10](index=10&type=chunk) - Financing costs **increased by 62.2%** to RMB 58.1 million, while other expenses surged by **149.0%** to RMB 83.4 million, mainly from write-offs and impairment of other receivables[11](index=11&type=chunk) [Business Review](index=9&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's core business is steel pipe manufacturing, complemented by property development and investment activities - The steel pipe business is the Group's core, and the company is the **first and only manufacturer in China** capable of developing deep-sea welded pipes for use at 3,500-meter water depths[13](index=13&type=chunk) - During the reporting period, the Group received new steel pipe orders of approximately **116,000 tonnes** and delivered approximately **217,000 tonnes** of welded steel pipes[13](index=13&type=chunk) - The Group's property development project is the "Jin Long Cheng Fortune Plaza", but **steel pipe manufacturing remains the core business**[13](index=13&type=chunk)[15](index=15&type=chunk) [Future Plans and Prospects](index=10&type=section&id=%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83%E5%8F%8A%E5%89%8D%E6%99%AF) The Group anticipates opportunities from China's focus on energy security and clean energy despite a challenging global economic environment - **Favorable National Policies**: China's "14th Five-Year Plan" targets expanding the oil and gas pipeline network to 210,000 km by 2025, with natural gas pipelines being a key focus for stable growth over the next 10-20 years[17](index=17&type=chunk) - **Emerging Market Opportunities**: To achieve its "dual carbon" goals, China will prioritize natural gas and explore clean energy sources like hydrogen and wind power, creating demand for related pipelines and offshore platforms[19](index=19&type=chunk) - **Marine Engineering Potential**: China's offshore oil and gas exploration is moving into deep and ultra-deep waters, presenting opportunities for the Group as a manufacturer of deep-sea welded pipes[18](index=18&type=chunk) - **International Market Expansion**: Geopolitical conflicts and supply chain adjustments are prompting importers to seek stable Chinese suppliers, creating opportunities for the Group to expand its overseas market share[19](index=19&type=chunk) - **Company Strategy**: The Group aims to become a leading global steel pipe manufacturer by participating in global oil and gas projects and expanding applications into infrastructure and high-end construction[19](index=19&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group faces liquidity pressure with a current ratio of 0.83, significant short-term debt, and an overdue bond under negotiation Liquidity and Financial Resources (as of June 30, 2024) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Bank Balances | RMB 75.1 million | RMB 32.2 million | | Current Ratio | 0.83 | 0.81 | | Total Borrowings | RMB 1.911 billion | RMB 1.832 billion | | Gearing Ratio | 29.5% | 28.5% | - The Group faces short-term debt pressure, with approximately **92% of its total borrowings** due for repayment within one year[26](index=26&type=chunk) - A bond with a principal of **HKD 140 million** matured in December 2023, and the company is still negotiating a repayment extension with investors[25](index=25&type=chunk) - The Group has pledged assets with a total net book value of approximately **RMB 2.222 billion** as collateral for bank loans[24](index=24&type=chunk) [Other Information](index=17&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Interests of Directors and Substantial Shareholders](index=17&type=section&id=%E8%82%A1%E6%9D%B1%E8%88%87%E8%91%A3%E4%BA%8B%E6%AC%8A%E7%9B%8A) Chairman Chen Chang is the controlling shareholder, holding approximately 69.85% of the company's total shares - Chairman **Mr. Chen Chang** is deemed to hold 706,261,000 shares, representing **69.85% of the total share capital**, making him the controlling shareholder[30](index=30&type=chunk)[33](index=33&type=chunk) [Share Option Scheme](index=18&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company adopted a share option scheme in 2020, but no options have been granted as of June 30, 2024 - As of June 30, 2024, **no share options have been granted** under the company's scheme; the total number of options available for grant is 101,114,200, representing about 10% of the issued share capital[34](index=34&type=chunk) [Corporate Governance](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company complied with most Corporate Governance Code provisions but deviated by not separating the Chairman and CEO roles - The company deviated from the Corporate Governance Code's provision requiring the separation of Chairman and CEO roles, with **Mr. Chen Chang holding both positions** to facilitate efficient decision-making[36](index=36&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2024[39](index=39&type=chunk) [Interim Financial Statements](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The company recorded revenue of RMB 1.638 billion and profit attributable to owners of RMB 129.5 million for the period H1 2024 Statement of Profit or Loss Summary | Item | Amount (RMB '000) | | :--- | :--- | | Revenue | 1,638,141 | | Gross Profit | 307,276 | | Profit before tax | 86,665 | | Profit for the period attributable to owners of the Company | 129,516 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Total comprehensive income attributable to owners was RMB 116.8 million after accounting for other comprehensive losses - Profit for the period was **RMB 129.5 million**, and after accounting for other comprehensive losses of RMB 12.74 million (mainly exchange differences), the total comprehensive income attributable to owners was **RMB 116.8 million**[42](index=42&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=23&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) The Group had total assets of RMB 6.47 billion, total liabilities of RMB 5.28 billion, and net current liabilities of RMB 749 million Statement of Financial Position Summary (as of June 30, 2024) | Item | Amount (RMB '000) | | :--- | :--- | | Total non-current assets | 2,868,329 | | Total current assets | 3,601,387 | | Total current liabilities | 4,350,025 | | Total non-current liabilities | 926,837 | | **Net Assets** | **1,192,854** | - The Group recorded **net current liabilities of approximately RMB 749 million** at the period end, indicating its current assets do not cover current liabilities[43](index=43&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Total equity attributable to owners increased from RMB 1.076 billion to RMB 1.193 billion, driven by comprehensive income - Equity attributable to owners of the Company **increased from RMB 1.076 billion** on January 1, 2024, **to RMB 1.193 billion** on June 30, primarily due to the comprehensive income for the period[45](index=45&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The Group generated positive operating cash flow, leading to an increase in cash and cash equivalents to RMB 75.14 million H1 2024 Statement of Cash Flows Summary | Item | Amount (RMB '000) | | :--- | :--- | | Net cash flows from operating activities | 116,281 | | Net cash flows used in investing activities | (31,884) | | Net cash flows used in financing activities | (29,545) | | Net increase in cash and cash equivalents | 54,852 | | Cash and cash equivalents at June 30 | 75,136 | [Notes to the Interim Condensed Consolidated Financial Statements](index=29&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Note 2: Basis of Preparation](index=29&type=section&id=%E9%99%84%E8%A8%BB2%EF%BC%9A%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The financial statements are prepared on a going concern basis despite net current liabilities of RMB 749 million - As of June 30, 2024, the Group had **net current liabilities of approximately RMB 749 million**, indicating a material uncertainty related to going concern[54](index=54&type=chunk) - Management has implemented several measures to improve liquidity, including negotiating for sufficient bank facilities, renewing maturing loans, and implementing cost controls to boost operating cash flow[55](index=55&type=chunk)[56](index=56&type=chunk) [Note 4: Operating Segment Information](index=33&type=section&id=%E9%99%84%E8%A8%BB4%EF%BC%9A%E7%87%9F%E9%81%8B%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The steel pipe segment is the primary contributor to revenue and profit, with Africa being the largest geographical market Segment Results for H1 2024 | Segment | Revenue (RMB '000) | Segment Results (RMB '000) | | :--- | :--- | :--- | | Steel pipes | 1,637,661 | 129,885 | | Property development and investment | 480 | (35,491) | | **Total** | **1,638,141** | **94,394** | Revenue by Geographical Location for H1 2024 | Region | Revenue (RMB '000) | Percentage | | :--- | :--- | :--- | | Mainland China | 342,145 | 20.9% | | Africa | 947,460 | 57.8% | | Other Asian countries | 221,845 | 13.5% | | Middle East | 73,037 | 4.5% | | Others | 53,654 | 3.3% | | **Total** | **1,638,141** | **100%** | [Note 14 & 15: Trade Receivables and Payables](index=46&type=section&id=%E9%99%84%E8%A8%BB14%20%26%2015%EF%BC%9A%E6%87%89%E6%94%B6%E6%87%89%E4%BB%98%E8%B3%AC%E6%AC%BE) Trade receivables increased significantly to RMB 491 million, while trade and bills payables decreased to RMB 858 million - Net trade receivables **increased from RMB 288 million to RMB 491 million**, with receivables aged over 60 days accounting for approximately **RMB 204 million (42%)**[82](index=82&type=chunk)[83](index=83&type=chunk) - Total trade and bills payables **decreased from RMB 943 million to RMB 858 million**, with payables aged over 90 days totaling approximately **RMB 228 million**[84](index=84&type=chunk) [Note 16 & 17: Bonds and Borrowings](index=48&type=section&id=%E9%99%84%E8%A8%BB16%20%26%2017%EF%BC%9A%E5%82%B5%E5%88%B8%E5%8F%8A%E5%80%9F%E8%B2%B8) Total interest-bearing borrowings stood at RMB 1.853 billion, with an overdue HKD 140 million note under negotiation - The 12% notes with a principal of **HKD 140 million** (the 2020 Notes) matured on December 22, 2023, with **HKD 61 million** outstanding and under negotiation for extension[86](index=86&type=chunk) - Total interest-bearing bank and other borrowings amounted to approximately **RMB 1.853 billion**, of which **RMB 1.706 billion** are current liabilities due within one year[87](index=87&type=chunk)[88](index=88&type=chunk) - The Group has **undrawn bank facilities totaling RMB 865 million**, providing a buffer for future operations and debt service[89](index=89&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,638,141,000, representing a 37.1% increase from RMB 1,194,632,000 in the same period of 2023[1] - Gross profit for the same period was RMB 307,276,000, slightly up from RMB 296,525,000, indicating a gross margin improvement[1] - Profit attributable to owners of the company decreased to RMB 129,516,000, down 18.1% from RMB 158,031,000 in the prior year[1] - Basic and diluted earnings per share for the period were RMB 0.13, compared to RMB 0.16 in the previous year[1] - The adjusted profit before tax for the company was RMB 86,665 thousand, with a segment profit of RMB 94,394 thousand after accounting for expenses[16] - The company reported a pre-tax profit of RMB 154,318 thousand, reflecting a strong performance despite the challenges in the market[17] - The company recorded a net profit attributable to ordinary shareholders of RMB 129,500,000 for the current period, down from RMB 158,000,000 in the same period last year[44] Assets and Liabilities - Total non-current assets as of June 30, 2024, were RMB 2,868,329,000, a slight decrease from RMB 2,892,807,000 at the end of 2023[3] - Current assets increased to RMB 3,601,387,000 from RMB 3,528,614,000, driven by higher trade receivables[3] - Current liabilities totaled RMB 4,350,025,000, a marginal decrease from RMB 4,374,358,000, resulting in a net current liability of RMB (748,638,000)[3] - Total assets as of June 30, 2024, amounted to RMB 6,469,716 thousand, with segment assets of RMB 3,282,078 thousand in the steel pipe division and RMB 3,332,574 thousand in property development[16] - Total liabilities were reported at RMB 5,276,862 thousand, with segment liabilities of RMB 3,435,194 thousand for the steel pipe division and RMB 2,095,692 thousand for property development[16] - The company’s total liabilities decreased by 1.5% from the previous year, demonstrating effective debt management strategies[17] Cash Flow and Liquidity - The company maintained cash and cash equivalents of approximately RMB 75,136,000 as of June 30, 2024[8] - The board of directors has assessed the company's future liquidity and performance, confirming sufficient financial resources for ongoing operations[8] - As of June 30, 2024, the company has secured sufficient unused credit facilities from financial institutions, ensuring adequate funding for debt repayment over the next 18 months[9] - The company is negotiating to renew a loan of RMB 786 million due within one year, with expectations to extend it for five years[9] - The company is implementing cost control measures to improve operating cash flow and profitability, with a cash flow forecast covering the next 18 months[10] - The total interest expenses for the six months ended June 30, 2024, amounted to RMB 58,122,000, compared to RMB 35,826,000 in the previous year, indicating a rise of approximately 62.2%[28] Revenue Segments - The steel pipe segment generated revenue of RMB 1,637,661 thousand, while the property development and investment segment contributed RMB 480 thousand, totaling RMB 1,638,141 thousand in external sales[16] - Revenue from external customers in Africa surged to RMB 947,460 thousand, a substantial increase from RMB 110,028 thousand in the previous year[19] - The sales of straight seam submerged arc pipes amounted to RMB 1,364,809 thousand, up 90.5% from RMB 715,802 thousand year-over-year[18] - Domestic sales of steel pipes accounted for approximately 20.9% of total steel pipe revenue, while overseas sales accounted for about 79.1%, compared to 40.0% and 60.0% respectively in the same period last year[45] Expenses and Costs - Sales and distribution expenses were approximately RMB 30,700,000, a decrease of about 30.0% from RMB 43,700,000 in the same period of 2023, attributed to reduced commissions and consulting fees[49] - Administrative expenses were approximately RMB 96,800,000, down about 8.9% from RMB 106,300,000 in the same period of 2023, mainly due to a reduction in R&D expenses[49] - Financing costs increased to approximately RMB 58,100,000, up about 62.2% from RMB 35,800,000 in the same period of 2023, due to interest related to property segments no longer being capitalized[49] - The group recorded other expenses of approximately RMB 83,400,000, an increase of about 149.0% from RMB 33,500,000 in the same period of 2023, primarily due to write-offs and impairments of other receivables[49] Market Strategy and Future Outlook - The company plans to expand its market presence in Africa and other Asian countries, leveraging the growth in demand for its products[19] - The company aims to become a global leader in steel pipe manufacturing by participating in more global oil and gas engineering projects[55] - The company plans to continue focusing on increasing sales in overseas markets to drive future revenue growth[44] - The group anticipates that 2024 will remain a challenging year for the oil and gas industry, but long-term support is expected from insufficient pipeline construction and China's focus on energy security and clean energy promotion[53] Corporate Governance and Compliance - The board of directors has confirmed compliance with the securities trading standards throughout the six-month period ending June 30, 2024[68] - The audit committee, composed of independent non-executive directors, reviewed the unaudited interim results for the six months ending June 30, 2024[70] - The interim results announcement will be available on the Hong Kong Stock Exchange and the company's website, ensuring transparency for shareholders[70]

Production Capacity and Manufacturing - The Group's total annual production capacity reached 1,800,000 tonnes as of December 31, 2023[6]. - The Group operates five production lines for longitudinal submerged arc-welded (LSAW) pipes and two for spiral submerged arc-welded (SSAW) pipes[6]. - A total of 553,000 tonnes of steel pipes were delivered, with orders received for 601,000 tonnes, including significant projects like the East African Crude Oil Pipeline Project, which accounted for 260,000 tonnes and a sales amount of approximately RMB2,600 million[24]. - The Group delivered approximately 553,000 tonnes of welded steel pipes during 2023[71]. - The strength grade of the newly developed large wall thickness spiral arc-welded pipe is Q355C, with a length of 45m and a weight of 90 tonnes, intended for significant infrastructure projects[29]. Research and Development - The Group holds 120 patents, including 41 invention patents, demonstrating strong research and development capabilities[7]. - The Group is the first and only manufacturer in the PRC to develop deep sea welded steel pipes for use at a water depth of 3,500 meters[7]. - The Group achieved a breakthrough in R&D by producing the world's first large-diameter ultra-thick-walled spiral steel pipe with a diameter of 3,000mm and a wall thickness of 30mm, which is a significant advancement in the manufacturing of spiral steel pipes[29]. - The Group was recognized as a provincial Specialized and New "Little Giant" enterprise, showcasing its advancements in deep sea steel pipe technology for ultra-deep submarine pipelines[32]. Financial Performance - The Group recorded sales of approximately RMB2,651 million in 2023, representing an increase of approximately 12.2% compared to RMB2,362 million in 2022[23]. - The profit for the year was approximately RMB183.8 million, up from RMB163 million in 2022, with earnings per share attributable to ordinary equity holders at approximately RMB0.18, compared to RMB0.16 in 2022[23]. - Revenue from the sales and manufacturing service of LSAW steel pipes amounted to approximately RMB1,496 million, accounting for about 69.2% of total steel pipe revenue for the year ended December 31, 2023[77]. - Revenue from SSAW steel pipes reached approximately RMB612 million, representing about 26.6% of total steel pipe revenue for the year ended December 31, 2023, significantly higher than the previous year[78]. - The gross profit from steel pipe sales for 2023 was approximately RMB513.4 million, an increase of approximately 24.0% compared to RMB413.9 million in 2022[101]. - The revenue of the Group increased from RMB2,362 million in 2022 to approximately RMB2,651 million in 2023, representing an increase of approximately 12.2%[91]. Market Presence and Demand - The Group is a qualified supplier for major companies such as Petrobras and Petronas, indicating strong market presence[7]. - The Group's steel pipes are primarily used in energy transmission, including oil and gas pipelines, deep sea pipelines, and city gas networks[5]. - The East African Crude Oil Pipeline Project is the world's longest heated crude oil transmission pipeline, with a total length of 1,540 kilometers, expected to boost economic development in East Africa[24]. - The global economy is expected to recover in 2024, but uncertainties remain, particularly regarding geopolitical tensions and climate change, which may affect demand growth[33]. - China's "14th Five-Year Plan" aims for a national oil and gas pipeline network of 210,000 kilometers by 2025, indicating ongoing demand for pipeline construction[33]. International Operations and Sales - The Group received new orders of approximately 601,000 tonnes of welded steel pipes in 2023, with significant overseas orders including projects in East Africa and Nigeria[71]. - Overseas sales for 2023 reached approximately RMB1,370.5 million, a significant increase of approximately 107.4% from RMB660.7 million in 2022[102]. - Overseas sales accounted for 57.3% of total revenue in 2023, amounting to RMB1,370.5 million, compared to 36.5% or RMB660.7 million in 2022[107]. Cost and Expenses - Finance costs surged by 111.8% to approximately RMB94.5 million in 2023, up from RMB44.6 million in 2022, due to interest related to the property sector no longer being capitalized[126]. - Selling and distribution expenses increased by approximately 19.0% to RMB65.5 million in 2023, up from RMB55.1 million in 2022, driven by higher overseas sales commissions[119]. - Administrative expenses rose by approximately 9.9% to RMB270.0 million in 2023, compared to RMB245.8 million in 2022, primarily due to increased research and development costs[120]. Employee and Management - Staff costs for the year ended December 31, 2023, were approximately RMB151.4 million, an increase from RMB123.7 million in 2022[167]. - The Group had a total of 875 full-time employees as of December 31, 2023, compared to 824 employees in 2022[173]. - Mr. Chen has over 54 years of experience in the electromechanical industry, focusing on management, strategic planning, and business development[195]. Strategic Goals and Future Outlook - The Group aims to expand its market share in the welded pipe sector overseas, driven by increasing demand for oil and natural gas as global economies recover from the pandemic[190]. - The Group's long-term strategic goal is to become a leading global steel pipe manufacturer by participating in more global oil and gas engineering projects[191]. - The Group will leverage its technical strength to meet the demand for green and low-carbon products as part of China's dual carbon strategy[189].

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 2,650,852,000, representing an increase of 12.2% compared to RMB 2,362,015,000 in 2022[2] - Gross profit for the same period was RMB 554,210,000, up from RMB 470,623,000, indicating a growth of 17.7%[2] - The net profit attributable to the owners of the company for 2023 was RMB 183,778,000, compared to RMB 163,034,000 in 2022, reflecting an increase of 12.8%[4] - Basic and diluted earnings per share increased to RMB 0.18 from RMB 0.16, marking a growth of 12.5%[4] - The total comprehensive income attributable to the owners of the company for 2023 was RMB 145,136,000, compared to RMB 105,423,000 in 2022, an increase of 37.7%[6] - The adjusted profit before tax for the year ended December 31, 2023, was RMB 39,079,000, compared to RMB 162,465,000 in 2022, reflecting a decline of 76.0%[35] - The company recorded a profit of approximately RMB 183,800,000 in 2023, compared to RMB 163,000,000 in 2022[96] Revenue Breakdown - The steel pipe segment generated revenue of RMB 2,390,855,000, up 32.0% from RMB 1,810,097,000 in the previous year[37] - The property development and investment segment reported revenue of RMB 259,997,000, a decrease of 53.2% from RMB 551,918,000 in 2022[35] - Steel pipe sales accounted for 90.2% of total revenue in 2023, up from 76.6% in 2022, while property development and investment revenue decreased to 9.8% from 23.4%[77] - The revenue from manufacturing and selling seamless welded steel pipes was RMB 2,390,855,000 in 2023, up from RMB 1,810,097,000 in 2022[41] - The revenue from straight seam submerged arc pipes accounted for approximately 69.2% of the total steel pipe revenue, with sales revenue reaching approximately RMB 1.496 billion[65] - The revenue from spiral submerged arc pipes was approximately RMB 612 million, representing about 26.6% of total steel pipe revenue, driven by increased sales to a Middle Eastern customer[67] Assets and Liabilities - The total non-current assets as of December 31, 2023, amounted to RMB 2,892,807,000, slightly up from RMB 2,850,413,000 in 2022[8] - Current liabilities increased to RMB 4,374,358,000 in 2023 from RMB 3,627,690,000 in 2022, indicating a rise of 20.5%[8] - The net current liabilities as of December 31, 2023, were RMB 845,744,000, compared to a net current asset of RMB 76,834,000 in 2022[14] - Total assets as of December 31, 2023, amounted to RMB 6,421,421,000, a slight increase from RMB 6,554,937,000 as of December 31, 2022[35] - As of December 31, 2023, the total borrowings amounted to approximately RMB 1,832,400,000, with about 8% being long-term borrowings[106] - The debt-to-asset ratio was approximately 28.5% in 2023, showing no significant change from 27.1% in 2022[105] Cash Flow and Financing - The company reported a cash and cash equivalents balance of RMB 32,191,000, up from RMB 16,128,000 in the previous year, representing a growth of 99.8%[14] - Net cash flow from operating activities increased to RMB 431,100,000 in 2023 from RMB 154,100,000 in 2022[98] - The net cash flow from investing activities changed from an inflow of approximately RMB 38,200,000 in 2022 to an outflow of about RMB 8,700,000 in 2023[99] - The net cash flow used in financing activities increased to RMB 366,000,000 in 2023 from RMB 149,100,000 in 2022, primarily due to new borrowings[100] - In 2023, the financing cost increased to RMB 94,500,000, up 111.8% from RMB 44,600,000 in 2022, with an actual interest rate of 5.2% compared to 2.5% in 2022[91] Operational Highlights - The company has engaged in the manufacturing and sale of welded steel pipes and related services, as well as property development and investment activities[15] - The company delivered a total of 553,000 tons of steel pipes and received orders for 601,000 tons, including significant projects like the East African Crude Oil Pipeline and the Nigeria AKK project[53] - The East African Crude Oil Pipeline project represents the largest single order in the company's history, with a total procurement of 260,000 tons and a sales amount of $370 million (approximately RMB 2.6 billion)[53] - The company successfully delivered all required straight seam submerged arc pipes for the Ras Laffan Petrochemicals project, which is set to become one of the largest ethylene projects globally, with an annual production capacity of up to 2.1 million tons[54] - The company has developed the world's first large-diameter, thick-walled spiral steel pipe with a diameter of 3,000mm and a wall thickness of 30mm, marking a significant technological breakthrough[56] - The company is positioned to benefit from the ongoing demand for pipeline construction, particularly in light of China's plans to expand its oil and gas pipeline network to approximately 210,000 kilometers by 2025[59] Research and Development - Research and development costs rose to RMB 107,636,000 in 2023 from RMB 64,283,000 in 2022, indicating a focus on innovation[45] - The company will continue to focus on technological capabilities to meet the demand for green low-carbon products in the energy sector[119] Regulatory and Compliance - The company has adopted new and revised International Financial Reporting Standards (IFRS) for the current financial year, including IFRS 17 on insurance contracts, which does not significantly impact the financial statements[19] - The company has reassessed its accounting policy disclosures to ensure consistency with the revised IFRS, with no significant impact on the financial statements[20] - Changes in accounting estimates and definitions have been aligned with the revised IAS 8, maintaining consistency without significant impact on the financial statements[21] - The introduction of new tax regulations under the OECD's Pillar Two framework is not expected to have a significant impact on the financial statements[25] - The company is preparing for the upcoming changes in long service payment regulations effective from May 1, 2025, which will eliminate the offset mechanism for mandatory contributions[26] Employee and Management - Employee costs for the year ended December 31, 2023, amounted to RMB 151.4 million, an increase of 22.4% from RMB 123.7 million in 2022[111] - The total number of full-time employees increased to 875 in 2023, up from 824 in 2022, reflecting a growth of 6.2%[113] - The company has not appointed a separate CEO, with the chairman also serving in operational roles, ensuring strong leadership and decision-making[123] - The audit committee, composed of three independent non-executive directors, oversees financial reporting and risk management processes[126] Future Outlook - The company anticipates that 2024 will remain a challenging year for the oil and gas industry due to geopolitical tensions and economic uncertainties[114] - The company plans to leverage opportunities in the deep-sea pipeline manufacturing sector as China expands its offshore oil and gas exploration[119] - The company aims to diversify its steel pipe applications by participating in global oil and gas engineering projects, targeting infrastructure and high-end construction sectors[120] - The company recognizes the national energy security and dual carbon goals as opportunities to enhance sales and market share[120]

Financial Performance - The company reported revenue of approximately RMB 1,194,600,000 for the six months ended June 30, 2023, an increase of about 0.7% compared to RMB 1,186,500,000 for the same period in 2022[10]. - The profit attributable to ordinary shareholders was RMB 158,000,000, with earnings per share of RMB 0.16, compared to RMB 153,300,000 and RMB 0.15 respectively in the previous year[10]. - The gross profit for steel pipes was approximately RMB 296,400,000, representing a 40.6% increase from RMB 210,800,000 in the same period last year, with a gross margin of about 24.8%[16]. - The company achieved a net profit attributable to ordinary shareholders of approximately RMB 158,000,000, compared to RMB 153,300,000 in the same period of 2022, with earnings per share of RMB 0.16, up from RMB 0.15[24]. - The company reported revenue of RMB 1,194,632,000, a slight increase of 0.9% compared to RMB 1,186,531,000 for the same period in 2022[67]. - Gross profit for the same period was RMB 296,525,000, down 13.9% from RMB 344,463,000 year-on-year[67]. - The company reported a profit for the period of RMB 158,031,000, compared to RMB 153,292,000 for the same period in 2022, indicating a slight increase of about 3.5%[77]. Revenue Breakdown - Steel pipe sales accounted for 100% of total revenue, with domestic sales contributing approximately 40% and overseas sales contributing approximately 60%[11][14]. - The increase in overall revenue was primarily driven by increased steel pipe sales, particularly in overseas markets[11]. - Total revenue from property development and investment was approximately RMB 6,000,000, a decrease of about 23.7% compared to RMB 7,800,000 in the same period of 2022, primarily due to reduced bank interest income[20]. - The steel pipe segment reported a profit of RMB 203,817,000, while the property development and investment segment incurred a loss of RMB 43,138,000, resulting in a total adjusted profit before tax of RMB 154,318,000[102]. - Revenue from the manufacturing and sales of welded steel pipes reached RMB 1,194,465 thousand, a significant increase of 41.2% compared to RMB 845,798 thousand in the same period last year[109]. - The revenue from spiral submerged arc welded pipes surged to RMB 357,663 thousand, compared to only RMB 45,047 thousand in the previous year, marking an increase of 694.5%[104]. Expenses and Costs - Sales and distribution expenses increased to approximately RMB 43,700,000, up 40.8% from RMB 31,100,000 in the same period of 2022, mainly due to higher commissions and consulting fees[20]. - Administrative expenses decreased to approximately RMB 106,300,000, down 8.8% from RMB 116,600,000 in the same period of 2022, primarily due to reduced stamp duty and related tax expenses[20]. - Financing costs rose to approximately RMB 35,800,000, an increase of 78.4% from RMB 20,100,000 in the same period of 2022, mainly due to increased interest rates and total borrowings[20]. - The company recorded other expenses of approximately RMB 33,500,000, an increase of 85.9% from RMB 18,000,000 in the same period of 2022, attributed to impairment of other receivables[20]. - The cost of sold inventory increased to RMB 898,107,000 in 2023 from RMB 635,024,000 in 2022, reflecting a rise of about 41.5%[124]. Assets and Liabilities - The total borrowing amount as of June 30, 2023, is approximately RMB 1,817,000,000, an increase from RMB 1,776,000,000 as of December 31, 2022[45]. - The current ratio as of June 30, 2023, is approximately 1.00, slightly down from 1.02 as of December 31, 2022[43]. - The asset-liability ratio as of June 30, 2023, is approximately 26.3%, compared to 27.1% as of December 31, 2022[45]. - The company's total liabilities increased to RMB 4,078,249,000 from RMB 3,627,690,000, indicating a rise of 12.4%[73]. - Total assets as of June 30, 2023, amounted to RMB 6,913,788,000, a decrease from RMB 7,435,256,000 as of June 30, 2022, indicating a decline of approximately 7%[102][103]. - The total interest-bearing bank and other borrowings as of June 30, 2023, amounted to RMB 1,745,161,000, compared to RMB 1,690,648,000 as of December 31, 2022, indicating an increase of approximately 3.2%[146]. Cash Flow and Financing - The operating cash flow for the six months ended June 30, 2023, was RMB 137,224,000, an increase from RMB 108,944,000 for the same period in 2022, representing a growth of approximately 26%[81]. - The company recorded a net cash inflow from financing activities of RMB 353,511,000, compared to RMB 250,936,000 in the previous year, indicating increased borrowing[82]. - Cash and cash equivalents increased to RMB 87,265,000 as of June 30, 2023, up from RMB 18,372,000 at the end of the same period in 2022[82]. - The company has ongoing capital commitments of approximately RMB 121,958,000 as of June 30, 2023[87]. - The company’s cash flow forecast indicates sufficient operating funds to meet its financial obligations over the next twelve months[89]. Market and Strategic Focus - The company continues to focus on expanding its market presence and enhancing its product offerings in the steel pipe sector[11]. - The company aims to diversify the use of steel pipes into infrastructure and high-end construction projects, including bridges and offshore platforms[36]. - The company is positioned to benefit from the construction of oil and gas pipelines as part of China's "14th Five-Year Plan," which aims to enhance oil and gas supply capabilities and expand the national pipeline network[32]. - The company anticipates that the second half of 2023 will remain challenging for the oil and gas industry, with global economic growth projected to slow to about 2.5%[30]. Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the reporting period[57]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2023, ensuring the adequacy and effectiveness of the internal control system[64]. - The interim condensed consolidated financial statements were approved and authorized for publication by the board on August 25, 2023[167].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHU KONG PETROLEUM AND NATURAL GAS STEEL PIPE HOLDINGS LIMITED 珠 江 石 油 天 然 氣 鋼 管 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1938） 截至二零二三年六月三十日止六個月的 二零二三年中期業績公佈 珠江石油天然氣鋼管控股有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈本公司及 其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月的未經審核簡明綜合財 務報表連同二零二二年同期的比較數字如下： 中期簡明綜合損益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 附註 人民幣千元 人民幣千元 ...

Financial Performance - The Group recorded a turnover of approximately RMB 2,362,000,000 for the year ended December 31, 2022[21]. - The Group reported a revenue of approximately RMB2,362.0 million for 2022, representing an increase of approximately 30.3% compared to RMB1,813.4 million in 2021[22]. - The Group achieved a profit of approximately RMB163.0 million in 2022, recovering from a loss of RMB94.4 million in 2021, with earnings per share of approximately RMB0.16[22]. - Gross profit from steel pipe sales rose to approximately RMB413.9 million in 2022, representing an increase of approximately 113.4% compared to RMB194.0 million in 2021[101]. - The gross profit margin for steel pipe sales improved to approximately 22.9% in 2022, up from 10.8% in 2021[101]. - Revenue from property development and investment surged to approximately RMB551.9 million in 2022, a significant increase of approximately 5,009.4% from RMB10.8 million in 2021[110]. - The cost of sales for property development increased to approximately RMB495.2 million in 2022, compared to RMB9.2 million in 2021, reflecting a rise of 5,261.4%[111]. - Other income and gains decreased by approximately 84.9% to RMB 238.7 million in 2022 from RMB 1,580.8 million in 2021[117]. - Selling and distribution expenses increased slightly by approximately 4.1% to RMB 55.1 million in 2022 from RMB 52.9 million in 2021[118]. - Administrative expenses decreased by approximately 6.8% to RMB 245.8 million in 2022 from RMB 263.6 million in 2021[119]. - Finance costs for 2022 were approximately RMB 44.6 million, a decrease of 69.1% from approximately RMB 144.3 million in 2021[125]. - The Group recorded a profit of approximately RMB 163.0 million in 2022, compared to a loss of RMB 94.4 million in 2021[129]. - Net cash inflows from operating activities were approximately RMB 154.1 million in 2022, a turnaround from net outflows of approximately RMB 904.6 million in 2021[139]. - The net cash flows from operating activities changed from a net outflow of approximately RMB 904.6 million in 2021 to a net inflow of approximately RMB 154.1 million in 2022[141]. - The net cash flows from investing activities decreased from approximately RMB 2,562 million in 2021 to approximately RMB 38.2 million in 2022, primarily due to the receipt of compensation for land acquisition in Panyu in 2021[142]. - The net cash flows used in financing activities decreased from approximately RMB 1,709.2 million in 2021 to approximately RMB 149.1 million in 2022, influenced by new bond issues and borrowings of approximately RMB 529.6 million and repayments of approximately RMB 678.7 million[144][148]. Production and Capacity - The Group has an annual production capacity of 1,750,000 tonnes as of December 31, 2022[6]. - A total of 314,000 tonnes of steel pipes were delivered in 2022, with secured orders for 413,000 tonnes, including projects with major oil companies and various pipeline construction projects[23]. - The Group operates five production lines for longitudinal submerged arc-welded (LSAW) pipes and two production lines for spiral submerged arc-welded (SSAW) pipes[6]. - LSAW steel pipes accounted for approximately 77.5% of the total steel pipe revenue, with revenue from sales amounting to approximately RMB1,171.7 million[79][82]. - Revenue from SSAW steel pipes was approximately RMB287.1 million, representing about 17.8% of the total steel pipe revenue[80][83]. - The total revenue from steel pipes and manufacturing services was RMB1,810.1 million in 2022, slightly up from RMB1,802.6 million in 2021[107]. - Domestic sales of steel pipes accounted for approximately 63.5% of total steel pipe revenue in 2022, compared to 53.0% in 2021[102]. - The Group's overseas sales of steel pipes decreased to RMB660.7 million in 2022, accounting for 36.5% of total steel pipe revenue, down from 47.0% in 2021[107]. Research and Development - The Group holds 105 patents, including 41 invention patents, demonstrating strong research and development capabilities[7]. - The Group successfully piloted the production of composite steel pipes resistant to seawater corrosion and developed new processes for hydrogen sulfide double resistance line pipes, enhancing its core competitiveness[24]. - The Group's investment in research and development has been increasing year by year, positioning its products as industry leaders in technology and innovation[27]. Market Environment and Strategy - The global economy faced downward pressure with growth rates of 3.1% and 3% for the global and Chinese economies, respectively, in 2022[20]. - The ongoing COVID-19 pandemic and geopolitical tensions have impacted the Group's operational environment in 2022[20]. - The global economic outlook for 2023 indicates a potential recession, with the World Bank projecting only a 1.7% growth, yet demand for pipeline construction in China is expected to remain strong[32]. - The Group plans to expand its product offerings beyond oil and gas transmission pipelines to include infrastructure projects such as bridges and offshore platforms, aiming to meet diverse market demands[33]. - The domestic oil and gas pipeline network is expected to increase to 240,000 kilometers by 2025, with significant investments projected to enhance supply capacity[180]. - The national oil and gas pipeline network construction will significantly accelerate, enhancing oil and gas transportation capacity and ensuring a stable supply of energy, benefiting the Group's operational development[183][185]. - The natural gas market growth is forecasted to focus on the eastern region, including the Bohai Rim, Southeast region, South Central region, and Yangtze River Delta, which will be immensely beneficial to the Group's production base in Zhuhai[183][185]. - The "dual carbon" strategic goal indicates a shift towards green and low-carbon development, with increased focus on natural gas and clean energy, which will drive future demand for the Group's products[184][186]. Corporate Governance and Management - Mr. Chen holds a total interest of 706,261,000 shares in the company, which includes 701,911,000 shares through Bournam Profits Limited and 4,350,000 personal shares[198]. - Mr. Chen Guo Xiong is responsible for overseeing the overall business development plan and strategic management of the Group[199]. - Mr. Chen joined the Group as deputy general manager in February 2019, bringing extensive experience in the manufacturing industry[199]. Awards and Recognition - The Group has received various honors, including the "Gold Cup Prize for Actual Quality of Metallurgical Products" and "High and New Technology Enterprise" recognition[7]. - Guangdong Province recognized the company as an Outstanding New Product in 1996, with renewals in 2010 and 2014[41]. - The company received the Gold Cup Prize for Actual Quality of Metallurgical Products for LSAW in 2005, with renewals in 2011, 2012, and 2015[43]. - The company was awarded the First Prize for Sci-Tech Achievement in Guangzhou City in 2008[48]. - The company was recognized as a High and New Technology Enterprise by multiple Guangdong authorities in 2010, with renewals in 2011, 2012, and 2015[50]. - The company achieved the Superior Quality Award for Actual Quality of Metallurgical Products in 2014[60]. - The company was awarded the First Prize of Sci-Tech Achievement for Deep Sea Pipe for Natural Gas in 2016[61]. - The company received the Saudi Arabia Excellent Chinese Project Award in 2016[64]. - The company was recognized as a Top 10 Original Brand of Guangdong Province in 2011[56]. - The company was awarded the Government Quality Award of Guangdong Province in 2012[58]. - The company was recognized as an Innovative Enterprise of Guangdong Province from 2013 to 2016[59]. Employee and Operational Metrics - Staff costs for the year ended December 31, 2022, were approximately RMB 123.7 million, a decrease from RMB 140.8 million in 2021[168]. - The Group had a total of 824 full-time employees as of December 31, 2022, down from 862 employees in 2021[175].