Financial Performance - The company recorded revenue of approximately RMB 1,837.9 million for the first half of 2024, a decrease of 2.9% compared to RMB 1,893.6 million for the same period in 2023[7]. - Gross profit for the first half of 2024 was approximately RMB 114.2 million, down 20.8% from RMB 144.1 million in the previous year[7]. - The loss attributable to equity holders of the parent company was approximately RMB 34.3 million, an improvement from a loss of RMB 104.7 million in the same period last year[7]. - The EPC segment's revenue decreased by 3.5% to RMB 1,687.2 million, primarily due to the completion of projects in China and Southeast Asia in 2023[24]. - The design, consulting, and technical services segment saw revenue increase by 3.8% to RMB 150.7 million, but gross margin dropped from 31.2% to 13.5% due to increased execution costs[25]. - The petrochemical segment's revenue increased by 33.3% to RMB 1,654.1 million, attributed to projects in the Middle East entering mid-stage[26]. - The coal chemical segment's revenue decreased by 68.1% to RMB 147.2 million, mainly due to project completions in Henan and delays in Shandong[27]. - The net loss for the period decreased by 62.0% from RMB 108.0 million in the same period last year to RMB 41.0 million, with the net profit margin improving from -5.7% to -2.2%[32]. - Other income increased by 41.0% to RMB 128.6 million, mainly due to fair value changes of investment properties and successful claims from subcontractors[29]. Contract and Project Management - The total value of new contracts obtained in the first half of 2024 was approximately RMB 2,744.0 million, an increase of 991.9% year-on-year[7]. - As of June 30, 2024, the total value of uncompleted contracts was approximately RMB 24,147.2 million, reflecting a 3.8% increase from December 31, 2023[7]. - Significant progress was made on key projects, including the completion of design work and 90% of pipeline installation for the 1.2 million tons/year ethylene project for Wanhua Chemical Group[7]. - The company signed 31 design and EPC contracts in the first half of 2024, with a total new contract value of RMB 2.74 billion[13]. - The company completed 90% of civil engineering for the Saudi Aramco DPCU project, with all equipment and materials ordered[8]. - The Qatar EPC4 sulfur processing project reached 47% overall progress, with 90% of design model review completed and 75% of civil engineering finished[8]. Market Expansion and Strategic Focus - The company is actively pursuing new market opportunities both domestically and internationally, emphasizing its core products and key customer engagements[12]. - The company has established a strong foundation in the Middle East market, focusing on ethylene and PDH/PP projects, and maintaining stable partnerships with SABIC and Saudi Aramco[14]. - The company is focusing on new energy and new materials, signing multiple EPC and preliminary service contracts in these areas[13]. - The company is advancing the industrialization of the Panjin Sanli MMA project, set to commence in late August 2024, utilizing innovative and sustainable technologies[15]. - The company is actively pursuing opportunities in emerging markets, including Russia, Central Asia, Southeast Asia, North America, and Africa, in sectors such as petrochemicals and new materials[14]. Research and Development - The company has made significant progress in developing a new generation of energy-saving butene dehydrogenation catalysts, reducing steam consumption by 30% and wastewater by 40%, lowering production costs by approximately RMB 1,400 per ton[16]. - The company has added 8 new authorized patents and filed 6 new patent applications, strengthening its intellectual property and technology reserves[16]. - The company is focusing on green energy transformation and has established a product technology center to capture global energy and chemical transformation trends[16]. - The company aims to become a leading provider of renewable energy technology solutions, aligning with international climate change initiatives[16]. Financial Position and Assets - Cash and bank balances amounted to RMB 1,248.9 million as of June 30, 2024, representing about 19.5% of current assets, up from RMB 901.8 million (16.5%) as of December 31, 2023[32]. - The company's capital expenditure for the review period was RMB 10.0 million, down from RMB 16.9 million in the same period last year[39]. - The debt-to-asset ratio increased to 75.5% as of June 30, 2024, compared to 72.7% as of December 31, 2023[34]. - The total bank and other borrowings amounted to RMB 1,104.2 million as of June 30, 2024, compared to RMB 1,090.1 million as of December 31, 2023[36]. - The company reported a net asset value of approximately RMB 206,003,000 as of June 30, 2024, compared to RMB 191,590,000 as of December 31, 2023[109]. Employee and Management - As of June 30, 2024, the company employed 1,757 staff, an increase from 1,608 employees as of December 31, 2023, with total employee costs amounting to RMB 397.1 million, representing 21.6% of the company's revenue for the period[40]. - Over 100 high-level professionals in design, project execution, and contract management have been recruited, enhancing the company's talent structure[20]. - The total compensation paid to key management personnel for the six months ended June 30, 2024, was RMB 4,204,000, up from RMB 3,760,000 in the same period of 2023, reflecting a growth of 11.7%[121]. Compliance and Governance - The company has complied with the corporate governance code and standards for securities trading during the review period[48]. - The company has implemented a foreign currency hedging policy to manage currency risks associated with its business transactions primarily conducted in RMB and USD[40]. - The company is focused on enhancing internal management and optimizing organizational structure to adapt to market changes[40].

Financial Performance - For the six months ended June 30, 2024, revenue was approximately RMB 1,837,914,000, a decrease of 2.9% compared to RMB 1,893,621,000 for the same period in 2023[1]. - Gross profit for the same period was approximately RMB 114,156,000, down 20.8% from RMB 144,058,000 in the prior year[1]. - The company recorded a loss of approximately RMB 40,962,000, a significant reduction of 62.1% from RMB 107,994,000 in the same period last year[1]. - The loss attributable to the parent company was approximately RMB 34,342,000, a decrease of 67.2% compared to RMB 104,732,000 in the previous year[1]. - The group recorded revenue of approximately RMB 1,837.9 million for the review period, a decrease of 2.9% compared to RMB 1,893.6 million for the six months ended June 30, 2023[29]. - Gross profit for the group was approximately RMB 114.2 million, down from RMB 144.1 million for the six months ended June 30, 2023, representing a decrease of about RMB 29.9 million[29]. - The group reported a pre-tax loss of RMB 34,342,000 for the six months ended June 30, 2024, compared to a loss of RMB 104,732,000 for the same period in 2023, indicating a significant improvement[78]. Contract and Project Management - The total value of new contracts (net of estimated VAT) reached approximately RMB 2,744,031,000, an increase of 991.9% compared to RMB 251,298,000 in the same period of 2023[1]. - As of June 30, 2024, the total value of unfinished contracts (net of estimated VAT) was approximately RMB 24,147,152,000, compared to RMB 23,255,794,000 as of December 31, 2023, reflecting an increase of 3.8%[1]. - The company signed a total of 31 design and general contracting contracts, with new contracts amounting to RMB 2.74 billion for the first half of 2024[13]. - The company has strengthened project management capabilities through the implementation of a unified project management platform, enhancing cost and progress control[8]. - The company has completed 2 R&D projects, 3 engineering consulting projects, and 3 engineering design projects during the review period, contributing to improved project management levels[11]. Market and Business Strategy - The company is actively pursuing global development strategies, focusing on both domestic and international markets to capitalize on the recovering energy demand[12]. - The company is focusing on core products in the domestic market, enhancing order quality, and has signed several core competitive contracts in the petrochemical and coal chemical sectors[13]. - The company is actively exploring emerging fields, enhancing research and development in new energy and new materials technologies[5]. - The overall performance of the petrochemical market showed strong operational momentum, supported by international crude oil price fluctuations[4]. - The company plans to enhance its market expansion efforts, particularly in the Middle East and Southeast Asia, to drive future growth[70]. Financial Position and Assets - As of June 30, 2024, total current assets amounted to RMB 6,388,664,000, an increase from RMB 5,476,777,000 as of December 31, 2023[57]. - The company's debt-to-asset ratio increased to 75.5% as of June 30, 2024, compared to 72.7% as of December 31, 2023[45]. - The group’s total assets amounted to RMB 10,318,593 thousand, an increase from RMB 9,459,717 thousand as of December 31, 2023[69]. - Total liabilities as of June 30, 2024, were RMB 7,916,384 thousand, up from RMB 7,010,934 thousand at the end of 2023, reflecting a rise of 12.9%[69]. - The company's equity totaled RMB 2,402,209 thousand as of June 30, 2024, down from RMB 2,448,783 thousand as of December 31, 2023, representing a decline of approximately 1.9%[59]. Research and Development - The company has made significant breakthroughs in key technology transfers during the review period, enhancing its R&D capabilities in new materials and processes[15]. - The group’s research and development costs remained relatively stable at RMB 58,644,000 for the six months ended June 30, 2024, compared to RMB 58,708,000 in 2023[73]. - The company is collaborating with Dalian Institute of Chemical Physics on catalytic technology, which is expected to significantly reduce investment, energy consumption, and carbon emissions in ethylene production[16]. - The company has developed a new generation of energy-saving butene dehydrogenation catalysts, reducing steam consumption by 30% and wastewater by 40%, leading to a further decrease in production costs of butadiene by approximately RMB 1,400 per ton[18]. Compliance and Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules, ensuring compliance throughout the review period[99]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial statements and confirmed compliance with relevant accounting standards[101]. - The company has maintained its compliance with the standards for securities trading by directors during the review period[100]. Employee and Operational Efficiency - Employee costs totaled RMB 397,100,000, representing 21.6% of the group's revenue, an increase from 15.5% in the previous year[53]. - The group employed 1,757 employees, up from 1,608 employees as of December 31, 2023[53]. - Selling and distribution expenses rose by 25.4% to RMB 25.7 million, mainly due to increased overseas marketing activities and accrued bonuses for sales staff[36]. - The company has introduced over 100 high-level professionals in design, project execution, and contract management, enhancing talent structure and quality[26].

Financial Performance - The company's gross profit margin for the year was 5.9%, compared to a gross profit margin of -4.5% in the same period last year[22]. - Total revenue for the year ended December 31, 2023, was RMB 3,842.7 million, a decrease of 17.4% from RMB 4,658.8 million in 2022[50]. - Gross profit for the same period was RMB 227.2 million, compared to a gross loss of RMB 208.3 million in 2022, indicating a significant recovery[50]. - The net loss for the year was RMB 198.4 million, a reduction from a net loss of RMB 1,197.4 million in the previous year, reflecting improved financial performance[50]. - Cash flow from operating activities was RMB 651.5 million, a turnaround from a negative cash flow of RMB 594.9 million in 2022[37]. - The company's net loss for the year significantly decreased by 83.4% to RMB 198.4 million from RMB 1,197.4 million in the previous year[58]. - Total comprehensive income for the year amounted to RMB (126.8) million, compared to RMB (1,069.7) million in 2022[58]. Assets and Liabilities - As of December 31, 2023, the company's trade receivables and contract assets amounted to RMB 1,070,771,000 and RMB 2,171,402,000, respectively[6]. - Non-current assets totaled RMB 3,982.9 million, slightly down from RMB 4,037.5 million in 2022[55]. - Current assets increased to RMB 5,476.8 million from RMB 4,906.1 million in the previous year[55]. - Current liabilities rose to RMB 5,188.3 million, up from RMB 4,797.8 million in 2022[55]. - The company's cash and bank balances increased to RMB 901.8 million from RMB 383.6 million in the previous year[55]. - Non-current liabilities totaled RMB 1,822,674 thousand as of December 31, 2023, an increase of 16% from RMB 1,570,123 thousand in 2022[93]. - The net assets of the company were RMB 2,448,783 thousand, down from RMB 2,575,601 thousand in the previous year, reflecting a decrease of approximately 5%[93]. - Total equity attributable to the owners of the parent company was RMB 2,463,491 thousand, a decrease of 5% from RMB 2,588,053 thousand in 2022[93]. Revenue Recognition and Impairment - The company has implemented a percentage-of-completion method for revenue recognition, which involves significant management estimates regarding contract costs and completion[2]. - The company made impairment provisions of RMB 597,055,000 for trade receivables and RMB 448,410,000 for contract assets as of December 31, 2023[6]. - The expected credit loss assessment for trade receivables involves significant judgments and estimates made by management, including past payment records and forward-looking factors[6]. - The company has disclosed relevant information regarding revenue recognition and impairment provisions in the notes to the consolidated financial statements[6]. Operational Efficiency - The company has seen a reduction in the impact of additional labor costs and project costs, leading to a gradual recovery of gross profit margin to normal levels[24]. - Sales and distribution expenses decreased by 49.1% to RMB 28.2 million from RMB 55.4 million in the previous year, focusing marketing resources on high-competitive projects[33]. - Other expenses decreased by 32.2% to RMB 170.5 million from RMB 251.6 million, primarily due to impairment provisions related to specific EPC projects in the previous year[35]. - The company’s financial and contract asset impairment losses were reduced to RMB 32.5 million from RMB 556.8 million in the previous year, indicating improved asset management[50]. - The company’s basic and diluted loss per share improved to RMB (4.81) from RMB (29.10) in the previous year, reflecting better operational efficiency[50]. Corporate Governance and Management - The group has established and implemented an environmental management system in accordance with GB/T 24001–2004/ISO14001:2004 standards, receiving certification from a third-party organization[78]. - The group actively promotes a "green engineering" development strategy, adhering strictly to environmental laws and regulations[78]. - The group has a formal and transparent policy for determining the remuneration of individual directors and employees, which is crucial for attracting and retaining skilled personnel[82]. - All executive directors have entered into three-year service contracts, with provisions for termination with written notice of no less than six months[82]. - The board believes that attracting, motivating, and retaining skilled and experienced personnel is significant for the long-term success of the group[82]. - The group has received annual confirmations regarding the independence of its independent non-executive directors as per the Hong Kong Stock Exchange listing rules[84]. - The group did not engage in any arrangements during the year that would allow directors or key executives to acquire rights to purchase shares or bonds of the company[84]. Shareholder Information - The shareholding structure indicates that Wison Holdings (Group) Limited holds 75.82% of the company’s shares[119]. - The executive director Zhou Hongliang holds 3,250,000 shares, representing 0.08% of the company[114]. - The executive director Zheng Shifeng holds 2,250,000 shares, representing 0.06% of the company[114]. - The company has maintained a public float of 21.87% as of the report date, complying with the minimum public shareholding requirement[193]. Contracts and Agreements - The company provides integrated services covering the entire project cycle, including feasibility studies, consulting services, proprietary technology, design, engineering, procurement, and construction management[97]. - The total contract value for the Wison Engineering's EPCIC phase tops out at RMB 120,000,000, covering various costs including employee wages and management fees[134]. - Wison Engineering expects to receive a total amount of RMB 121,500,000 from the EPCIC phase contract, including a performance bonus of up to RMB 1,500,000 for efficient project delivery[134]. - The anticipated revenue from the top surface engineering design contract is RMB 37,422,000 as of December 31, 2023[131]. - The total expected receivable amount from the top surface engineering design contract will not exceed RMB 45,000,000[131]. - The engineering design framework agreement is set to expire on December 31, 2025, with annual transaction limits of RMB 260 million for the years ending December 31, 2023, 2024, and 2025[191]. Risk Management - The group faces multiple risks and uncertainties that may impact its business, financial condition, or operating performance[78]. - The group’s governance structure emphasizes effective risk management and internal control systems, ensuring transparency in reporting and compliance with relevant rules and regulations[180].

Financial Performance - For the year ended December 31, 2023, the revenue was approximately RMB 3,842,719,000, a decrease of 17.5% compared to RMB 4,658,780,000 in 2022[1] - The gross profit for the year ended December 31, 2023, was approximately RMB 227,202,000, an increase of approximately RMB 435,502,000 compared to a gross loss of RMB 208,300,000 in 2022[1] - The net loss for the year ended December 31, 2023, was approximately RMB 198,378,000, a reduction of approximately RMB 999,008,000 compared to a net loss of RMB 1,197,386,000 in 2022[1] - The total revenue for 2023 was RMB 3,842.7 million, a decrease of 17.5% compared to RMB 4,658.8 million in 2022[101] - The group reported a net loss attributable to equity holders of the parent of RMB 196.1 million for 2023, compared to a loss of RMB 1,185.5 million in 2022[173] - The net loss for the year was reduced by 83.4% to RMB 198.4 million, down from RMB 1,197.4 million in the previous year, resulting in a net margin of -5.2%[108] Contract and Project Management - The total value of new contracts for 2023 was approximately RMB 407,911,000, significantly lower than RMB 11,312,845,000 in the same period of 2022[7] - As of December 31, 2023, the total value of uncompleted contracts was approximately RMB 23,255,794,000, a decrease of 13.0% from RMB 26,724,003,000 as of December 31, 2022[7] - The company is focusing on expanding its presence in the new energy and new materials sectors to capture new market opportunities[9] - The company is enhancing its project management capabilities and has achieved significant results in QHSE management[16][17] - The company emphasized project management capabilities and risk control for overseas projects, enhancing core competitiveness[48] - The company achieved 13,194,640 safe man-hours across domestic and international projects, with all HSE management indicators within target control ranges[52] Technological Advancements and Innovations - The company has established a product technology center focused on new businesses, technologies, and products, aiming to capture global energy transformation trends[33] - The company has successfully implemented innovative carbon four separation technology, reducing energy consumption by 26% and wastewater by over 90% compared to traditional methods[31] - The company has made significant breakthroughs in key technologies, including the commercialization of ethane catalytic oxidation dehydrogenation technology for ethylene production[60] - The company has developed a new generation of energy-saving butene oxidation dehydrogenation catalyst, reducing steam consumption by 30% and wastewater by 40%, with production costs lowered by approximately RMB 1,400 per ton of butadiene[61] - The company is independently developing 1,3-propanediol catalysts and processes, which are expected to become a significant competitive advantage in the new materials technology field[62] Market Expansion and International Strategy - The company is actively expanding into emerging markets, securing preliminary consulting contracts for projects in Nigeria and participating in bidding for projects in Africa and Indonesia[27] - The company has established a strong business foundation in the Middle East, focusing on ethylene and PDH/PP projects, and is actively pursuing renewable energy and green hydrogen opportunities[57] - The company is actively pursuing international market opportunities, maintaining a global development strategy to capture emerging market chances[54] Financial Management and Cost Control - The total capital expenditure for the year was RMB 22.7 million, up from RMB 13.9 million in 2022[140] - The total assets decreased from RMB 4,037.5 million in 2022 to RMB 3,982.9 million in 2023[153] - The total equity decreased from RMB 2,575.6 million in 2022 to RMB 2,448.8 million in 2023[154] - Cash and bank balances as of December 31, 2023, were RMB 901.8 million, representing 16.5% of current assets, up from RMB 383.6 million (7.8%) in 2022[109] - Administrative expenses increased by 19.8% from RMB 258.7 million to RMB 309.8 million, mainly due to increased management personnel and office building maintenance costs[127] Industry Challenges and Outlook - The petrochemical industry faced significant challenges in 2023, with fluctuating crude oil prices impacting production costs and revenue risks[39] - The outlook for 2024 indicates a complex international situation, but the global economy is expected to maintain steady recovery, positively impacting the petrochemical industry[87] Awards and Recognition - The company received 7 various design awards in 2023, including a first-class design award for the 300,000 tons methanol-to-olefins project from Shandong Yangmei Hengtong[21] - The company received eight awards for outstanding consulting achievements in 2023, reflecting its strong performance in engineering consulting[53] Compliance and Reporting - The company has adopted new and revised International Financial Reporting Standards in the current financial statements, impacting the disclosure of significant accounting policies[185] - The company disclosed significant accounting policy information in its financial statements, which is expected to influence the decisions of primary users of the financial statements[185]

Financial Performance - Revenue for the first half of 2023 was approximately RMB 1,893.6 million, a decrease of 14.4% compared to the same period in 2022[109] - Gross profit for the first half of 2023 was approximately RMB 144.1 million, a significant improvement from a gross loss of RMB 12.5 million in the same period in 2022[109] - Revenue for the period decreased by 14.4% to RMB 1,893.6 million compared to RMB 2,211.0 million in the same period last year[172] - EPC revenue decreased by 17.9% to RMB 1,748.4 million, with a gross margin of 5.7%, up from -1.5% in the previous year[173] - Refining business revenue increased by 19.0%, supported by the completion phase of the Abu Dhabi refining project[174] - Coal chemical business revenue rose by 5.7%, remaining stable compared to the previous year[195] - Other income and gains decreased by 6.4% to RMB 91.2 million from RMB 97.4 million[179] - Sales and distribution expenses decreased by 21.7% to RMB 20.5 million due to focused marketing efforts on high-competitive projects[180] - R&D costs decreased to RMB 58.7 million from RMB 76.0 million in the previous year[181] - Total other expenses decreased by 6.3% to RMB 78.2 million from RMB 83.5 million[199] Cost and Expense Management - The cost of services provided decreased to RMB 1,749,563 thousand in the first half of 2023, down from RMB 2,223,441 thousand in the same period of 2022, reflecting a 21.3% decline[3] - R&D expenses decreased to RMB 58,708 thousand in the first half of 2023, compared to RMB 75,988 thousand in the same period of 2022, a 22.7% reduction[3] - Administrative expenses increased by 2.2% to RMB 119.8 million compared to RMB 117.2 million in the same period last year[64] - Financing costs rose by 13.7% to RMB 51.3 million, primarily due to increased interest expenses related to payables[69] Cash and Bank Balances - Cash and bank balances increased to RMB 1,207,137 thousand as of June 30, 2023, compared to RMB 663,242 thousand as of December 31, 2022, an 82% increase[21] - The company's cash and bank balances denominated in RMB amounted to RMB 1,105,529 thousand as of June 30, 2023, up from RMB 602,159 thousand as of December 31, 2022, an 83.6% increase[24] - The company's cash and cash equivalents (unsecured and unfrozen) increased to RMB 748,724 thousand as of June 30, 2023, up from RMB 347,972 thousand as of December 31, 2022, a 115.2% increase[21] - Bank balances and fixed deposits amounted to RMB 7,141,000 as of June 30, 2023, a decrease from RMB 13,880,000 as of December 31, 2022, due to collateral for import equipment financing[38] Debt and Borrowings - Bank loans due within one year or on demand decreased to RMB 561,093 thousand as of June 30, 2023, down from RMB 1,187,632 thousand as of December 31, 2022, a 52.7% reduction[28] - Bank loans due within one year (secured) amounted to RMB 561,093, while long-term bank loans (secured) due after one year were RMB 1,150,593[43][44] - The company's interest-bearing bank and other borrowings totaled RMB 1,150.6 million as of June 30, 2023[189] - Interest-bearing bank and other borrowings ranged from 3.70% to 5.88% during the six months ended June 30, 2023[45] Project Progress and Completion - The Thailand natural gas-to-hydrogen project achieved 86% completion, with 73% of equipment and materials delivered and 17% of instrumentation bridge installation completed[58] - The Shandong Binhu New Materials C3C4 comprehensive utilization project successfully started production, yielding high-quality propylene with a concentration exceeding 99.6%[85] - The PGA pilot plant, in collaboration with Inner Mongolia Rongxin Chemical, successfully started trial production in July 2023 and is expected to complete pilot testing by the end of the year[100] - The overall progress of the Xinjiang Weigerui project reached 97.71%, with the first process unit achieving mechanical completion on May 15, 2023[89] - The Saudi Aramco DPCU project reached 54% overall progress, with all equipment and materials ordered and structural steel modules arriving[91] - The Shandong Jinhai Chemical 1 million tons/year light hydrocarbon comprehensive utilization project successfully started production on March 4, 2023, with stable operation of the HDPE and butadiene units[112] - The Fujian Shenyuan Phase II synthetic ammonia hydrogen production project was successfully put into operation by the end of June 2023, with performance assessment completed[113] - The Henan Shenma hydrogen ammonia project achieved high-standard intermediate handover on July 5, 2023, and is currently assisting the owner in production preparation[114] - The Panjin Sanli MMA project has completed 90% of model review conditions, with 75% of storage tank installation completed and 348 tons of pipe rack steel structure installed[116] - The Wanhua Chemical 1.2 million tons/year ethylene cracking furnace project has achieved 17.9% overall progress, with 70% design completion and 7 furnace radiation chambers installed[117] - The Qatar EPC4 sulfur treatment project has achieved 15.62% overall progress, with 30% model review passed and 4 contractor interviews completed in August 2023[118] - The Saudi FARABI Lab4 project has achieved 4.42% overall progress, with HAZOP review completed and civil bidding finalized[120] - The company successfully completed intermediate handover and startup for 3 EPC projects, including the Quanzhou Guoheng 660,000 tons/year PDH heater project, and achieved safe startup for 6 projects, including the Dongming Petrochemical 1 million tons/year light hydrocarbon utilization project[121] Contracts and New Business - The company secured new contracts worth approximately RMB 251.3 million in the first half of 2023[109] - New contracts signed in H1 2023 totaled approximately RMB 270 million, lower than expected due to delayed customer investment decisions[153] - The company secured the PDP+FEED task for the Russian CIC ethylene project in H1 2023, which is expected to positively impact multiple ethylene cracking furnace and polyolefin projects being tracked[128] Regional Revenue - Middle East region revenue increased to RMB 375.4 million, accounting for 19.8% of total revenue in H1 2023, up from 7.3% in H1 2022[151] - Southeast Asia region revenue surged to RMB 358.5 million, representing 18.9% of total revenue in H1 2023, compared to 0.7% in H1 2022[151] - Overseas project revenue accounted for 41.9% of total revenue, up from 12.0% in the previous year, driven by EPC projects in the Middle East and Southeast Asia[197] Innovation and R&D - The company has developed a new generation of energy-saving butene oxidative dehydrogenation catalyst and reaction technology, reducing energy consumption by 30%, wastewater by 40%, and production cost by approximately RMB 1,400 per ton of butadiene[131] - The company has added 7 new authorized patents and 4 new patent applications, strengthening its intellectual property and technical reserves[133] - The company is focusing on innovation, strengthening independent R&D, and expanding cooperation with global patent holders in new energy and materials[142] Safety and Quality Management - The company achieved 7,402,174 safe man-hours across domestic and international projects in the first half of 2023, with all HSE management indicators within the target range[94] - The welding pass rate, inspection and test plan (ITP) control point acceptance rate, and material acceptance rate for projects under construction in the first half of 2023 all exceeded 99%[96] - The company updated its public safety emergency plans based on the 2023 Overseas Public Safety Comprehensive Assessment Report to strengthen risk control in overseas operations[94] Asset and Property Management - The fair value of buildings and leased land in mainland China was RMB 3,442,632 thousand as of June 30, 2023, slightly down from RMB 3,494,142 thousand as of December 31, 2022[30] - The weighted average market daily rent for buildings and leased land in mainland China was RMB 5.91 per square meter as of 2022, with a long-term vacancy rate of 4% and a yield rate of 4%[18] Trade Receivables and Impairment - Trade receivables impairment increased to RMB 50,192 thousand in the first half of 2023, up from RMB 42,956 thousand in the same period of 2022, a 16.8% rise[3] - Trade receivables from related companies were RMB 2,898,696 as of June 30, 2023, with a decrease in non-current portions to RMB 573,813 from RMB 874,098 as of December 31, 2022[41] Dividend Policy - The company did not declare, pay, or recommend any interim dividends for the six months ended June 30, 2023, consistent with the same period in 2022[7] Digital and Project Management - The company is advancing digital project management systems, with the Engineering Data Warehouse (EDW) achieving 100% accuracy in attribute matching[164] Strategic Focus and Future Plans - The company is committed to enhancing its comprehensive competitiveness by optimizing design to reduce project costs and establishing a global unified procurement platform[143] - The company is closely monitoring market conditions and will adjust its strategies and operations to improve efficiency and profitability[145] - The company has completed feasibility studies for several wind-solar-hydrogen and coal chemical integration projects, aiming for implementation within the year[137] - The company's technical and design team is expected to reach 1,000 people by the end of the year, with more international project-experienced professionals being recruited[139]

Financial Performance - For the six months ended June 30, 2023, revenue was approximately RMB 1,893.6 million, a decrease of 14.4% compared to RMB 2,211.0 million for the same period in 2022[3]. - Gross profit for the same period was approximately RMB 144.1 million, an increase of approximately RMB 156.5 million compared to a gross loss of RMB 12.5 million in the prior year[3]. - The net loss for the six months ended June 30, 2023, was approximately RMB 107.99 million, a reduction of 57.8% from RMB 256.0 million in the same period of 2022[3]. - The loss attributable to the parent company was approximately RMB 104.73 million, down 59.0% from RMB 255.6 million in the prior year[3]. - The total value of new contracts for the six months ended June 30, 2023, was approximately RMB 251.3 million, a significant decrease of 81.3% compared to RMB 1,341.5 million in the same period of 2022[3]. - The group recorded revenue of approximately RMB 1,893.6 million, a decrease of 14.4% compared to RMB 2,211.0 million for the same period last year[64]. - The gross profit increased to approximately RMB 144.1 million, compared to a gross loss of RMB 12.5 million in the same period last year[64]. - The group reported a net loss of RMB 107.99 million for the six months ended June 30, 2023, compared to a net loss of RMB 256.04 million for the same period in 2022, indicating a reduction in losses[118]. Project Developments - Shandong Jinhai Chemical's 1 million tons/year light hydrocarbon comprehensive utilization project successfully started production on March 4, 2023, with stable operation and qualified products[13]. - The PDH unit of Shandong Binhua New Materials achieved a successful startup on June 30, 2023, producing high-quality propylene with a concentration exceeding 99.6%[13]. - The Fujian Shenyuan Phase II ammonia hydrogen project completed its performance verification by the end of June 2023, successfully passing all processes[13]. - The Henan Shenma hydrogen ammonia project reached a key installation milestone on May 15, 2023, and is currently assisting the owner with production preparations[14]. - The Xinjiang Weigeli project is 97.71% complete, with mechanical completion achieved on May 15, 2023, and various pre-commissioning tests underway[14]. - The Thailand natural gas hydrogen project is 86% complete, with all equipment and materials ordered, achieving a delivery rate of 73%[16]. - The Saudi Aramco DPCU project is 54% complete, with all equipment and materials ordered and ongoing structural work[17]. - The Qatar EPC4 sulfur handling project is 15.62% complete, with 30% of the model review passed and preparations for construction underway[17]. Strategic Focus and Market Position - The company continues to focus on core business areas, maintaining leadership in traditional products such as ethylene and methanol-to-olefins (MTO) while exploring new fields like hydrogen energy and biodegradable plastics[11]. - The company aims to accelerate its layout in new energy and new materials to seize market opportunities[6]. - The management emphasizes the importance of risk control and operational efficiency to create value for customers amid challenging market conditions[6]. - The company is actively expanding into new energy and traditional hydrogen-using industries, providing comprehensive engineering solutions for converting unstable green electricity into hydrogen, ammonia, and alcohol[46]. - The company has established strong partnerships in the Middle East, focusing on ethylene and PDH/PP projects, and is actively pursuing renewable energy and green hydrogen opportunities[35]. Financial Management and Cost Control - Selling and distribution expenses decreased by 21.7% to RMB 20.5 million from RMB 26.2 million in the previous year[79]. - Research and development costs decreased to RMB 58.7 million from RMB 76.0 million, reflecting a focus on cost management[81]. - The total employee cost for the group was RMB 294.2 million, accounting for 15.5% of the group's revenue, an increase from 12.5% in the previous year[113]. - The company has implemented changes in accounting policies and estimates effective from January 1, 2023, with no significant impact on financial position or performance[160]. Innovation and Technology Development - The company has applied for 17 patents related to the ethane catalytic ODHE technology, which significantly reduces investment, energy consumption, and carbon emissions compared to traditional methods, indicating a breakthrough in ethylene production[41]. - The new energy-saving butene oxidation dehydrogenation catalyst has reduced steam consumption significantly, with energy consumption lowered by 30% and wastewater reduced by 40%, leading to a cost reduction of approximately RMB 1,400 per ton of butadiene produced[42]. - The company has achieved preliminary results with the ethylene acetate catalyst, entering the industrial testing and market promotion phase, while also developing a 1,3-propanediol catalyst with competitive potential[43]. - The company has added 7 authorized patents and submitted 4 new patent applications, continuously strengthening its intellectual property and technical reserves[45]. Market Trends and Economic Outlook - Economic recovery in China is expected to strengthen in the second half of 2023, driven by various policy measures aimed at stimulating domestic demand[54]. - Brent crude oil prices are projected to fluctuate between $75 and $85 per barrel, with downstream demand recovery being crucial for industry profitability[56]. Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring oversight of the group's financial reporting and internal control procedures[196]. - The group is not required to pay any income tax in the Cayman Islands and British Virgin Islands due to no taxable income generated in various countries including Hong Kong and Japan for the six months ended June 30, 2023[200].

Revenue Performance - EPC revenue decreased by 26.0% from RMB 6,035.8 million in 2021 to RMB 4,463.6 million in 2022, with a negative gross margin of -5.7% compared to a positive margin of 6.1% in 2021[8] - Engineering, consulting, and technical services revenue fell by 19.9% from RMB 243.7 million in 2021 to RMB 195.2 million in 2022, with a gross margin decline from 36.5% to 24.6%[8] - Revenue from the petrochemical sector dropped by 42.7%, while coal chemical revenue increased by 15.6%[16][17] - Public infrastructure revenue decreased by 79.0% due to project slowdowns caused by the pandemic[16] - Other products and services revenue surged by 183.9%, attributed to successful progress in new materials projects in Xinjiang[18] - Total revenue for 2022 was RMB 4,658.8 million, down 25.8% from RMB 6,279.5 million in 2021[9] - Revenue from mainland China accounted for 86.8% of total revenue in 2022, up from 84.1% in 2021[21] Financial Performance - Other income and gains increased by 22.7% to RMB 243.9 million from RMB 198.8 million in the previous year[24] - The net loss for the year increased significantly by 1,189.7% to RMB 1,197 million, with a net profit margin dropping to -25.7%[51] - The income tax expense decreased by 15.4% to RMB 219 million, primarily due to a reduction in taxable profits[50] - The financing costs increased by 18.6% from RMB 769 million in the previous year to RMB 912 million in the current year[49] - The net cash flow from operating activities was -RMB 594.9 million, compared to RMB 256.5 million in the previous year[54] Assets and Liabilities - Trade receivables and bills receivable totaled RMB 611 million, a decrease of approximately 28.8% from RMB 857.7 million in the previous year[52] - As of December 31, 2022, the cash and bank balances amounted to RMB 383.6 million, representing about 7.8% of the group's current assets[53] - The asset-liability ratio showed a downward trend, indicating an increase in total assets proportion[56] - As of December 31, 2022, the company's total bank borrowings amounted to RMB 1,087.5 million, a decrease from RMB 1,173.0 million as of December 31, 2021[65] - The company's short-term bank borrowings accounted for 100% of total bank borrowings as of December 31, 2022, consistent with the previous year[62] Operational Highlights - The company signed a topside module engineering design contract with Shanghai Wison Marine, with a maximum contract value expected not to exceed RMB 45 million[33] - Capital expenditures for the year were RMB 13.9 million, significantly lower than RMB 43.5 million in 2021[71] - The company employed 1,370 staff as of December 31, 2022, an increase from 1,323 staff in the previous year[81] - Employee costs totaled RMB 645.7 million for the year, down from RMB 661.5 million in 2021[81] Corporate Governance and Management - The company reported a monthly salary of RMB 175,000 for the executive director, with an additional RMB 25,000 as a director's fee[1] - The executive director has over 30 years of experience in the petrochemical industry, contributing to strategic planning and daily management[1] - The company emphasizes the importance of strategic planning and decision-making in its daily operations, ensuring effective management[1] - The board of directors includes members with significant financial expertise, having held senior financial positions in various publicly listed companies[1] - The leadership team is composed of professionals with advanced degrees and certifications, reflecting a commitment to high standards in management[1] Compliance and Risk Management - The company is committed to complying with relevant laws and regulations that significantly impact its operations[110] - The company has faced various risks and uncertainties that may impact its business, financial condition, or operating results[107] - The company has implemented a foreign currency hedging policy to manage currency risks associated with its operations[72] Shareholder Information - Wison Engineering Holdings Limited has a controlling shareholder, Wison Investment, which holds approximately 75.82% of the company's shares as of December 31, 2022[172] - The company’s directors and senior management held a total of 6,500,000 shares, representing 0.16% of the total share capital[128] - The shareholding structure indicates that the largest beneficial owner among directors holds 3,250,000 shares, which is 0.08% of the total[128] Share Option Plans - The company’s share option plan aims to attract and retain outstanding personnel, providing additional incentives to employees, directors, consultants, and advisors[134] - The total number of share options exercised during the year was 6,000,000, with 24,000,000 options remaining as of April 1, 2022[150] - The company has adopted a new stock option plan on December 20, 2022, which will be effective for a period of ten years[161] - The total number of shares that may be issued under the 2022 stock option plan is capped at 10% of the total shares issued as of the adoption date, amounting to 407,376,780 shares[161] Environmental and Technological Initiatives - The company has established and implemented an environmental management system compliant with GB/T 24001–2004/ISO14001:2004 standards, receiving certification from a third-party organization[108] - The company actively promotes "green engineering" development strategies to achieve energy conservation, emission reduction, and environmental protection goals[109] - The company has a strong focus on technological development and internal R&D to support its engineering services[98] - The company is actively involved in new product and technology development, focusing on digital applications and renewable energy[180]

Financial Performance - For the year ended December 31, 2022, revenue was approximately RMB 4,658.8 million, a decrease of 25.8% compared to RMB 6,279.5 million in 2021[19]. - The gross loss for the year was approximately RMB 208.3 million, a decline of 145.4% from a gross profit of RMB 458.8 million in 2021[19]. - The net loss for the year was approximately RMB 1,197.4 million, an increase of 1,189.7% compared to a net loss of RMB 92.8 million in 2021[15]. - The total revenue for 2022 was RMB 4,658.8 million, a decrease of 25.8% from RMB 6,279.5 million in 2021[89]. - The group reported a significant loss of RMB 1,197.4 million for the year, a 1,189.7% increase from the previous year's loss of RMB 92.8 million, resulting in a net profit margin decrease from -1.5% to -25.7%[143]. - The gross profit margin dropped from 7.3% in the previous year to -4.5% this year[111]. - The company's operating loss before tax was RMB (1,175,466) thousand, indicating a significant financial challenge[193]. - The company reported a net impairment loss of RMB (610,743) thousand, which reflects ongoing challenges in asset valuation[195]. Contract and Project Management - The total value of new contracts obtained in 2022 was approximately RMB 11.3 billion, an increase of 76.4% year-on-year[19]. - As of December 31, 2022, the total value of uncompleted contracts was approximately RMB 26.7 billion, an increase of 4.7% compared to the previous year[19]. - The total value of new contracts for the year ended December 31, 2022, was approximately RMB 11,312,845,000, an increase of 76.4% compared to RMB 6,414,042,000 in the same period of 2021[44]. - The total value of unfinished new contracts as of December 31, 2022, was approximately RMB 26,724,003,000, an increase of 4.7% from RMB 25,529,301,000 on December 31, 2021[44]. - The company has signed contracts for several key projects, including the Inner Mongolia Rongxin PGA total package contract and the Qingdao Sanli MMA project, while strengthening cooperation with long-term quality clients[34]. - The company is actively exploring new markets in the Middle East, having signed contracts for the EPC total package of the Cartel Energy sulfur processing unit and the LAB4 project with Saudi FARABI[35]. Cash Flow and Financial Stability - The company had cash and bank balances of RMB 602.2 million as of December 31, 2022, down from RMB 1,327.5 million in 2021[7]. - The net cash flow from operating activities was -RMB 594.9 million, compared to RMB 256.5 million in the previous year[122]. - The asset-liability ratio as of December 31, 2022, was 67.2%, compared to 60.8% in 2021[124]. - The company’s total liabilities decreased to RMB 4,797,821,000 from RMB 5,714,899,000, indicating improved financial stability[162]. - The company’s cash and bank balances decreased to RMB 383,592,000 from RMB 931,268,000, showing a significant reduction in cash reserves[162]. - The group has successfully negotiated a supplemental credit facility with a bank to rectify a financial covenant breach, allowing for a repayment period extending beyond December 31, 2023, for RMB 678 million[150]. Operational Developments - The company is focusing on energy and chemical engineering sectors while actively expanding into new energy and new materials markets[11]. - The company has optimized its organizational structure and enhanced risk management and digital capabilities during the reporting period[11]. - The company aims to ensure project implementation despite adverse factors such as the pandemic, with significant progress in key projects like the PDH facility in Shandong[20]. - The company is focusing on green hydrogen, ammonia, and carbon reduction, with ongoing feasibility studies for a green ammonia project utilizing wind and solar energy[37]. - Significant progress has been made in the development and industrialization of biodegradable plastics, with the completion of detailed design for the PGA project and plans for pilot plant construction by May 2023[39]. - The company is actively exploring new fields such as new energy and new materials, with breakthroughs in areas like ethane oxidative dehydrogenation to ethylene and biodegradable plastics[49]. Market Expansion and Strategy - The company aims to expand into new energy and traditional hydrogen industries, leveraging its technical advantages in hydrogen, ammonia, and alcohol[95]. - The company plans to enhance its global presence by actively exploring overseas markets, particularly in the Middle East and North America, while also targeting emerging markets in Russia, Central Asia, Southeast Asia, and Africa[81]. - The company is actively expanding into emerging markets, including Nigeria and Southeast Asia, and has secured preliminary consulting contracts for oil refining projects[66]. - The company is focusing on optimizing and upgrading butadiene technology, which is currently entering the industrial trial and promotion stage[40]. Research and Development - The company has filed 14 new patents and submitted 13 new patent applications during the reporting period, strengthening its intellectual property and technology reserves[99]. - The company is developing a new generation of energy-saving butene dehydrogenation catalysts and reaction technology, aiming to reduce energy consumption by 30% and wastewater by 40%, while increasing yield by over 5 percentage points[40]. - The company has achieved initial success in developing ethylene acetate catalysts, which meet current domestic technical requirements for ethylene acetate development[40]. - The company is developing a green new process for MMA production with a capacity of 100,000 tons/year, utilizing advanced technologies to address pollution and energy consumption issues[70]. - The company has entered the commercialization phase of the ethane catalytic oxidative dehydrogenation (ODHE) technology, which significantly reduces investment, energy consumption, and carbon emissions compared to traditional methods[71]. Employee and Organizational Development - The total number of employees as of December 31, 2022, was 1,370, with 46 new graduates hired during the year, indicating a stable growth in workforce[76]. - The company is actively optimizing its organizational structure and mechanisms to attract new talent[103]. - The group reported research and development costs of RMB 149 million, down from RMB 168.9 million in the previous year[140].

Financial Performance - For the year ended December 31, 2022, revenue was approximately RMB 4,658,780,000, a decrease of 25.8% compared to RMB 6,279,549,000 in 2021[2] - The gross loss for the year was approximately RMB 208,300,000, a decline of 145.4% from a gross profit of RMB 458,797,000 in 2021[2] - The net loss for the year was approximately RMB 1,197,386,000, an increase of 1,189.7% compared to a net loss of RMB 92,839,000 in 2021[2] - The company reported a revenue of approximately RMB 4,658.8 million for the year ending December 31, 2022, a decrease of 25.8% compared to RMB 6,279.5 million for the previous year[30] - The gross loss for the year was approximately RMB 208.3 million, a significant decline of 145.4% from a gross profit of RMB 458.8 million in the prior year[30] - The net loss attributable to the company's shareholders was approximately RMB 1,185.5 million, compared to a loss of RMB 92.6 million for the year ending December 31, 2021[30] - The group's net loss increased by 1,189.7% from RMB 92.8 million in the previous year to RMB 1,197.4 million in 2022, resulting in a net margin decline from -1.5% to -25.7%[108] - The basic and diluted loss per share for 2022 was RMB 0.291, compared to RMB 0.023 in 2021, indicating a significant increase in loss per share[168] Contract and Project Updates - The total value of new contracts (net of estimated VAT) for the year was approximately RMB 11,312,845,000, an increase of 76.4% from RMB 6,414,042,000 in the same period of 2021[4] - The total value of uncompleted new contracts (net of estimated VAT) as of December 31, 2022, was approximately RMB 26,724,003,000, an increase of 4.7% from RMB 25,529,301,000 as of December 31, 2021[4] - The company signed new contracts totaling RMB 11.3 billion during the review period, reflecting a strong market demand for energy and chemical products[51] - The company has secured key design projects in the petrochemical and coal chemical sectors, including contracts for the Yantai Wanhua Phase II ethylene project and the Xinjiang Yihua melamine project[52] - The company is actively expanding into new markets, including Russia, Southeast Asia, North America, and Africa, while also pursuing opportunities in modular projects in the U.S.[54] Operational and Strategic Focus - The company aims to deepen its focus on energy engineering and actively explore new markets, particularly in new energy and new materials[25] - The company is enhancing its digital and modular capabilities to strengthen its core competitiveness in response to market changes and challenges[25] - The company continues to strengthen its core business in traditional products such as ethylene, propane dehydrogenation (PDH), and methanol-to-olefins (MTO) while exploring new areas in renewable energy and materials technology[32] - The company is committed to accelerating the development of new energy and new materials to establish a solid foundation for sustainable development[77] - The company intends to deepen cooperation with foreign clients while expanding its presence in emerging markets such as Russia, Central Asia, Southeast Asia, and Africa[78] Financial Position and Liabilities - Cash and bank balances as of December 31, 2022, were RMB 383.6 million, representing approximately 7.8% of current assets, down from RMB 931.3 million and 15.6% in the previous year[109] - The company had outstanding loans totaling RMB 310,000,000, which are due in 2023[114] - The company successfully negotiated a supplemental credit facility with the bank after December 31, 2022, correcting the covenant breach[115] - The total credit facilities available to the company amount to RMB 976,948,000, with RMB 30,000,000 expiring in 2024[116] - The company is actively seeking new investment and business opportunities to achieve profitability and positive cash flow[116] Research and Development - Research and development costs for 2022 were RMB 148,970,000, a decrease from RMB 168,910,000 in 2021, indicating a decline of about 11.8%[157] - The company has filed 14 new patents and submitted 13 new patent applications, strengthening its intellectual property and technology reserves[66] - The company is developing new technologies in the field of 1,3-propanediol, which is expected to support the differentiated requirements of domestic polyester product development[65] Safety and Compliance - The company achieved a total of 21.71 million safe man-hours in domestic and international projects during the year, receiving multiple honors for safety management[47] - The company has maintained compliance with corporate governance standards as per the Hong Kong Stock Exchange regulations[193] - The audit committee confirmed that the annual performance complies with all applicable accounting standards, laws, and regulations[197] Market and Economic Conditions - The company is closely monitoring global macroeconomic conditions to adjust its development strategies in response to market fluctuations[84] - The company plans to focus on expanding its market presence and enhancing its service offerings in the coming years[140]

Financial Performance - For the first half of 2022, the company recorded revenue of approximately RMB 2,211.0 million, a decrease of 13.4% compared to RMB 2,553.0 million for the same period in 2021[14]. - The gross profit for the first half of 2022 was approximately RMB -12.5 million, a significant decrease of 105.0% from RMB 249.4 million in the previous year[14]. - The loss attributable to equity holders of the parent company was approximately RMB 255.6 million, compared to a loss of RMB 90.8 million in the same period of 2021[14]. - The total value of new contracts obtained in the first half of 2022 was approximately RMB 1,341.5 million, a decrease of 65.4% year-on-year[14]. - The company's net loss increased by 181.9% to RMB 256.0 million, with a net margin decline from -3.6% to -11.6%[73]. - The company reported a net loss attributable to shareholders of RMB 255.6 million for the six months ended June 30, 2022[88]. - The company reported a loss before tax of RMB 233,405 thousand for the six months ended June 30, 2022, compared to a loss of RMB 75,981 thousand for the same period in 2021[172][174]. - The company reported a net loss before tax of RMB 277,241,000 for the six months ended June 30, 2022, compared to RMB 272,900,000 for the same period in 2021[189]. Contract and Project Updates - As of June 30, 2022, the total value of uncompleted contracts was approximately RMB 20,200.6 million, a decrease of 20.9% from December 31, 2021[14]. - The Shandong Jinhai Chemical 1 million tons/year light hydrocarbon comprehensive utilization project has reached 92.4% overall progress, with main equipment installation completed and pipeline pressure testing ongoing[16]. - The Fujian Shenyuan Phase II synthetic ammonia hydrogen project successfully commenced production in June 2022, achieving a full process flow and producing qualified hydrogen and liquid ammonia products[16]. - The Thailand natural gas hydrogen project is 32% complete, with detailed design 60% reviewed and expected to commence operation in January 2024[19]. - The company signed new contracts totaling RMB 1.3 billion during the review period, focusing on both domestic and international markets[24]. Market and Strategic Focus - The company continues to focus on its core business in the energy and chemical markets, maintaining a leading position in traditional products such as ethylene and methanol-to-olefins (MTO)[15]. - The company is actively exploring emerging fields and enhancing research and development in new energy and new materials technologies[15]. - The company is committed to advancing green coal chemical and new energy optimization, aligning with national policies on carbon neutrality[11]. - The company is focusing on new markets, closely monitoring projects in Russia, Southeast Asia, North America, and Africa to capture incremental market space[27]. - The company is enhancing project management capabilities through refined management and risk control, particularly for overseas projects[20]. Financial Position and Liabilities - As of June 30, 2022, the company's total bank borrowings amounted to RMB 1,137.8 million, a decrease from RMB 1,173.0 million as of December 31, 2021[85]. - The company's debt-to-asset ratio increased to 62.9% as of June 30, 2022, compared to 60.8% at the end of 2021[80]. - The company has triggered cross-default clauses with other banks due to a breach of financial covenants, requiring immediate repayment of RMB 371.3 million in outstanding loans[88]. - The company has secured an extension on a bank loan repayment of RMB 60,000,000 and a new bank loan of RMB 40,000,000 maturing after June 30, 2023[157]. - The company has unused credit facilities of RMB 200,000,000 from a subsidiary as of the report date[157]. Employee and Talent Management - The group employed 1,300 employees, a slight decrease from 1,323 employees as of December 31, 2021[102]. - The total employee cost amounted to RMB 277.2 million, representing 12.5% of the group's revenue for the period, compared to 10.7% for the six months ended June 30, 2021[102]. - The group has granted a total of 126,500,000 share options to eligible employees under the share option scheme adopted on November 30, 2012, to enhance compensation attractiveness and encourage better performance[102]. - The group has implemented training programs for employee development, including onboarding and ongoing education, to support strategic planning needs[105]. - The group has a clear compensation policy based on performance, with adjustments made dynamically according to company and employee performance[102]. Research and Development - The company is actively tracking investment opportunities from foreign clients such as BASF and COVESTRO in China, securing overall design work for COVESTRO's new project[25]. - The company is cultivating new flagship products in the fields of new energy and new materials, while strengthening cooperation with long-term quality clients[23]. - The company has made significant breakthroughs in new materials and biodegradable plastics, with the first engineering project of the ethylene-based MMA green process entering the implementation phase, targeting a production capacity of 50,000 tons per year[31]. - The company is advancing the industrialization of polylactic acid (PGA) and has completed 60% of the 3D model design for the new technology project, with major equipment procurement already finished[32]. - R&D expenses for the first half of 2022 were RMB 75,988,000, an increase from RMB 63,453,000 in the same period of 2021[189]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the review period[127]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting process and internal controls[131]. - The company has adopted the standard code for securities trading by directors, confirming compliance during the review period[128]. - The interim financial statements were reviewed and found to comply with relevant accounting standards and regulations[137]. Cash Flow and Financial Management - The company experienced a cash outflow from operating activities of RMB 555,817 thousand in the first half of 2022, contrasting with a cash inflow of RMB 256,716 thousand in the same period of 2021[151]. - The company’s financing activities resulted in a net cash outflow of RMB 9,800 thousand in the first half of 2022, compared to a net inflow of RMB 131,573 thousand in the same period of 2021[151]. - The company’s cash and cash equivalents decreased by RMB 587,566 thousand in the first half of 2022, compared to an increase of RMB 431,612 thousand in the same period of 2021[151]. - The company reported a significant increase in inventory reduction, amounting to RMB 99,907 thousand in the first half of 2022, compared to an increase of RMB 139,383 thousand in the same period of 2021[149]. - The company is actively seeking new investments and business opportunities to achieve profitability and positive cash flow[164].