Financial Performance - Revenue for 2020 was RMB 52,352,584, a slight increase of 0.2% compared to RMB 52,261,051 in 2019[20]. - Gross profit increased to RMB 5,714,072, reflecting a growth of 4.2% from RMB 5,482,733 in the previous year[20]. - Operating profit rose by 9.3% to RMB 2,204,379, up from RMB 2,017,007 in 2019[20]. - Net profit attributable to equity holders was RMB 2,381,905, marking a 9.1% increase from RMB 2,183,457 in 2019[20]. - Basic earnings per share increased to RMB 0.54, up 9.1% from RMB 0.49 in the previous year[20]. - The gross margin improved to 10.9% in 2020, compared to 10.5% in 2019[22]. - The net profit margin also increased to 4.6%, up from 4.2% in the previous year[22]. - The return on assets rose to 3.4%, compared to 3.1% in 2019[22]. - The total revenue for the reporting period was RMB 52.35 billion, with a profit attributable to shareholders of RMB 2.38 billion[50]. - The company reported a total revenue of RMB 52.35 billion, a slight increase of 0.2% compared to RMB 52.26 billion in 2019[120]. Assets and Liabilities - As of December 31, 2020, non-current assets amounted to RMB 7,409,911 thousand, reflecting a 2.1% increase compared to the end of 2019[19]. - Current assets reached RMB 64,055,416 thousand, representing a 5.7% increase from the previous year[19]. - Current liabilities were RMB 40,672,278 thousand, which is a 7.6% increase compared to the end of 2019[19]. - Non-current liabilities decreased by 9.8% to RMB 2,537,011 thousand from the previous year[19]. - The total assets as of December 31, 2020, were RMB 71.47 billion, an increase of RMB 3.59 billion from RMB 67.87 billion in 2019[138]. - The total liabilities as of December 31, 2020, were RMB 43.21 billion, an increase of RMB 2.61 billion from RMB 40.60 billion in 2019[138]. - The debt-to-asset ratio was 60.5% at the end of 2020, slightly up from 59.8% in 2019[23]. Contracts and Business Development - The total amount of new contracts signed in 2020 was RMB 63.014 billion, an increase of 20.4% compared to the previous year; the uncompleted contract amount at the end of 2020 was RMB 105.655 billion, up 11.2% from the end of 2019[38]. - The new contract amount signed during the reporting period was RMB 63.01 billion, representing a year-on-year increase of 20.4%, with overseas new contracts amounting to RMB 10.16 billion, up 50.9% year-on-year[50]. - The company plans to expand its business scope and extend its value chain in the energy and chemical engineering construction industry[12]. - The company completed the construction of an oil reserve within 8 months and established several integrated refining and chemical projects, enhancing its operational efficiency[39]. Dividends and Shareholder Returns - The company plans to distribute a final dividend of RMB 0.187 per share, in addition to an interim dividend of RMB 0.113 per share, resulting in a total annual dividend of RMB 0.300 per share, with a dividend payout ratio of 56%[38]. - The proposed final cash dividend for the year ended December 31, 2020, is RMB 0.187 per share, based on a total share capital of 4,428,000,000 shares[159]. - The final dividend will be distributed to shareholders registered by May 20, 2021, with payment expected by July 19, 2021[159]. Operational Efficiency and Innovation - The company aims to enhance its service levels through differentiation, internationalization, digital transformation, and intelligent upgrades[12]. - The company is focusing on technological innovation in response to new demands in the refining and chemical industry, enhancing its capabilities in process technology and equipment development[39]. - The company has established a cloud platform for remote diagnostics and optimization of petrochemical plants, ensuring efficient supply of essential materials during the pandemic[41]. - The company plans to enhance project management and cost control measures in 2021 to improve economic efficiency[76]. - The company is committed to advancing green and low-carbon development strategies, aligning with national goals of carbon peak and carbon neutrality[41]. Research and Development - The company completed 660 new patent applications, with 401 being invention patents, accounting for 60.8%[62]. - The company has established a carbon neutrality green technology joint R&D center with the Chinese Academy of Sciences to promote carbon peak and carbon neutrality strategies[65]. - The company has made significant progress in key research projects, including the development of solid superacid C5 and C6 isomerization technology, which passed acceptance on December 1[61]. Corporate Governance and Compliance - The company has strengthened corporate governance and compliance with regulations, enhancing investor relations and information disclosure quality[181]. - The company has established a comprehensive internal control system, aligning with regulations from the Ministry of Finance and other authorities, enhancing risk management and operational efficiency[186]. - The company’s independent non-executive directors reviewed the related party transactions and confirmed compliance with the relevant provisions of the Hong Kong Listing Rules[167]. - The board of directors consists of 7 members, including 3 independent non-executive directors, ensuring at least one-third independence[200]. Market Challenges and Opportunities - The company anticipates challenges in 2021, including ongoing pandemic impacts and the need for breakthroughs in core technologies, while also recognizing opportunities from domestic and international market dynamics[41]. - The company recognizes the challenges posed by the pandemic but anticipates a recovery in global trade and economic growth in 2021[69].

Financial Performance - Total revenue for the six months ended June 30, 2020, was RMB 23,797,156 thousand, representing a 4.9% increase compared to RMB 22,682,018 thousand in the same period of 2019[18]. - Gross profit decreased by 7.6% to RMB 2,191,775 thousand from RMB 2,371,953 thousand year-on-year[18]. - Operating profit increased by 4.5% to RMB 1,150,453 thousand compared to RMB 1,101,143 thousand in the previous year[18]. - Profit attributable to equity holders of the company rose by 5.1% to RMB 1,260,191 thousand from RMB 1,198,685 thousand in the same period last year[18]. - Basic earnings per share increased to RMB 0.28, up from RMB 0.27 year-on-year, reflecting a 5.1% growth[18]. - Net cash flow used in operating activities improved significantly to (RMB 1,962,757 thousand) from (RMB 4,964,239 thousand), marking a 60.5% reduction in cash outflow[18]. - The company achieved a total revenue of RMB 23.797 billion in the first half of 2020, representing a year-on-year growth of 4.9%[34]. - The net profit attributable to shareholders was RMB 1.260 billion, an increase of 5.1% compared to the same period last year[34]. - The total comprehensive income for the period decreased by 7.7% year-on-year to RMB 1.22 billion from RMB 1.32 billion[14]. Revenue Breakdown - Revenue from the petrochemical sector was RMB 14.428 billion, showing a significant year-on-year increase of 32.2%[39]. - Revenue from the refining sector decreased by 29.7% to RMB 5.525 billion due to project completions[39]. - Revenue from China reached RMB 21,040.92 million, a 25.6% increase year-on-year, accounting for 88.4% of total revenue[40]. - Overseas revenue declined by 53.5% to RMB 2,756.24 million, primarily due to project delays caused by the COVID-19 pandemic[40]. - The engineering contracting segment accounted for 58.3% of total revenue, with a revenue of RMB 15.528 billion, up 12.1% year-on-year[36]. Assets and Liabilities - Total assets as of June 30, 2020, were RMB 67,497,829 thousand, a slight decrease of 0.6% from RMB 67,873,748 thousand at the end of 2019[17]. - Total liabilities decreased to RMB 39.94 billion as of June 30, 2020, down RMB 0.66 billion from RMB 40.60 billion at the end of 2019[111]. - The company's total equity amounted to RMB 27,553,970,000, an increase from RMB 27,270,541,000 as of December 31, 2019, reflecting a growth of approximately 1.04%[178]. Cash Flow and Financial Management - The company reported a net cash outflow of RMB 1.53 billion in cash and cash equivalents for the period, a significant improvement from RMB 10.30 billion in the same period of 2019[112]. - Operating cash flow for the period was RMB 1.96 billion, a notable improvement from RMB 4.96 billion used in the same period of 2019[113]. - The company plans to strengthen cash collection efforts and control the capital occupied by operating activities to improve cash flow management[114]. Strategic Development and Market Position - The company aims to enhance its international presence and focus on renewable energy and new materials as part of its strategic development[10]. - The company has established long-term stable partnerships with major energy and chemical enterprises, accumulating a broad and stable customer base[10]. - The company aims to enhance its market share in key areas such as integrated refining, new energy, and digital transformation while expanding into overseas markets, particularly in South Asia and Africa[51]. Research and Development - Research and development costs increased by 6.6% to RMB 796.32 million, reflecting higher investments in new technologies and digitalization[60]. - The company completed 271 new patent applications, with 163 being invention patents, representing 60.1% of the total[45]. - The company is advancing research in new energy and materials, signing 158 new research contracts during the period[45]. Corporate Governance and Compliance - The company is compliant with the public shareholding requirements of the Hong Kong Stock Exchange[24]. - The audit committee reviewed the semi-annual report and had no dissenting opinions on the financial performance presented[151]. - The independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and were fair and reasonable to the company's shareholders[142]. Social Responsibility and Community Engagement - The company actively contributed to social responsibility by donating approximately 460,000 pieces of epidemic prevention materials to various countries[34]. - The group is committed to enhancing its QHSSE management system, emphasizing safety, quality, and environmental protection in its operations[49]. Future Outlook - The outlook for the second half of 2020 indicates significant challenges due to the pandemic's long-term effects, but the group aims to leverage its integrated and scaled advantages to enhance core competitiveness[50]. - The group plans to focus on developing comprehensive solutions in natural gas, new coal chemical, and environmental protection sectors while tracking market opportunities along the Belt and Road Initiative[50].

Business Focus and Strategy - Sinopec Engineering reported a significant focus on providing comprehensive solutions in various sectors, including petroleum refining and clean energy, with over 60 years of development experience[9]. - The company aims to enhance its exploration in renewable energy and new materials, aligning with its vision to become a world-class engineering company[9]. - The company actively participated in the "Belt and Road" initiative, signing several contracts in countries like Saudi Arabia and Oman[32]. - The company focused on optimizing resources to control subcontracting and procurement costs, ensuring safety, quality, progress, and expenses were all under control[32]. - The company emphasized technological innovation and collaboration with globally recognized patent holders to enhance its R&D capabilities[32]. - The company is actively developing and promoting new technologies for product quality upgrades and energy conservation, contributing to sustainable development in the energy and chemical industry[39]. - The company intends to strengthen its international presence by leveraging the "Belt and Road" initiative and expanding into new markets in Africa, South Asia, and South America[62]. Financial Performance - Total revenue for 2019 reached RMB 52,261,051 thousand, an increase of 11.1% compared to RMB 47,019,024 thousand in 2018[18]. - Operating profit rose significantly by 40.5% to RMB 2,017,007 thousand from RMB 1,435,534 thousand in the previous year[18]. - Net profit attributable to equity holders increased by 30.0% to RMB 2,183,457 thousand, compared to RMB 1,679,472 thousand in 2018[18]. - The company's gross profit margin decreased to 10.5% in 2019 from 11.0% in 2018[19]. - The net profit margin improved to 4.2% in 2019, up from 3.6% in 2018[19]. - Basic earnings per share rose to RMB 0.49, a 30.0% increase from RMB 0.38 in 2018[18]. - The total revenue for the group in 2019 was RMB 52.261 billion, representing an 11.1% year-on-year increase, primarily driven by several large projects reaching their peak execution phase[43]. - The group achieved a profit attributable to shareholders of RMB 2.183 billion for the reporting period[40]. - The company's total assets as of December 31, 2019, were RMB 67.87 billion, a decrease of RMB 2.99 billion from RMB 70.87 billion at the end of 2018[125]. - The equity attributable to shareholders of the company increased by RMB 1.29 billion to RMB 27.27 billion, compared to RMB 25.98 billion at the end of 2018[125]. Revenue Breakdown - Revenue from engineering contracting was RMB 32.438 billion, accounting for 54.4% of total revenue, with a year-on-year growth of 11.3%[41]. - The construction segment generated revenue of RMB 23.724 billion, representing 39.8% of total revenue, with a significant year-on-year increase of 30.9%[41]. - Revenue from the petrochemical sector was RMB 25.15 billion, a significant increase of 46.8% year-on-year, while refining revenue was RMB 19.40 billion, up 9.3%[44]. - Revenue from the new coal chemical sector decreased by 53.5% to RMB 4.11 billion, impacted by project settlements[44]. - Domestic revenue accounted for 81.4% of total revenue at RMB 42.55 billion, a 15.2% increase from RMB 36.93 billion in 2018[46]. - Overseas revenue was RMB 9.71 billion, representing 18.6% of total revenue, which decreased by 3.7% year-on-year[46]. Contracts and Backlog - The total amount of new contracts signed in 2019 was RMB 52.319 billion, which is a 2.7% increase compared to the previous year[32]. - As of the end of 2019, the uncompleted contract amount stood at RMB 94.994 billion, remaining stable compared to the end of 2018[32]. - The total value of uncompleted contracts as of December 31, 2019, was RMB 94.99 billion, remaining stable compared to RMB 94.94 billion in 2018[119]. - The uncompleted contracts cover 1.8 times the total revenue for 2019, indicating a strong backlog for future revenue generation[119]. Research and Development - The company completed 600 new patent applications, with 370 being invention patents, accounting for 61.7% of the total[53]. - The company has made significant progress in research and development, with 190 new key research projects initiated during the reporting period[53]. - The company continues to enhance its R&D efforts in traditional sectors such as refining and chemical engineering, which is expected to support future growth[95]. - Research and development costs for the engineering contracting business surged by 53.7% to RMB 903.45 million, driven by increased investment in technology development[95]. Corporate Governance - The company has established a comprehensive risk management process that includes goal setting, risk identification, evaluation, response, and monitoring[186]. - The company has implemented internal control mechanisms to provide sufficient financial data and explanations to the board and audit committee[184]. - The company has adopted a diversity policy for board members, considering factors such as gender, age, and professional experience[179]. - The company provides training and resources for directors to ensure compliance with regulatory requirements and enhance governance[180]. - The company has established insider information disclosure procedures to ensure timely identification and assessment of insider information[187]. Operational Efficiency - The company aims to enhance project management and cost control to improve economic efficiency in 2020[61]. - The company plans to focus on high-end services such as engineering consulting and technology licensing to boost competitiveness[60]. - The company has implemented a stock appreciation rights incentive plan for H-shares to motivate senior management[174]. - The company completed an organizational restructuring, reducing the number of internal functional departments from 16 to 11 to enhance efficiency[163].

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 22,682,018 thousand, representing a 23.7% increase from RMB 18,335,880 thousand in the same period of 2018[19]. - Gross profit for the same period was RMB 2,371,953 thousand, up 23.4% from RMB 1,921,486 thousand year-on-year[19]. - Operating profit increased by 10.4% to RMB 1,101,143 thousand compared to RMB 997,847 thousand in the previous year[19]. - Profit attributable to equity holders of the company was RMB 1,198,685 thousand, an increase of 8.2% from RMB 1,107,565 thousand in 2018[19]. - Basic earnings per share for the period were RMB 0.27, up from RMB 0.25 in the same period last year, reflecting an 8.2% increase[19]. - Net profit margin decreased to 5.3% in 2019 from 6.0% in 2018[20]. - Total comprehensive income for the period increased by 33.4% to RMB 1.317 billion from RMB 0.987 billion in the previous year[70]. Assets and Liabilities - Total assets as of June 30, 2019, amounted to RMB 70,563,950 thousand, a decrease of 0.4% compared to December 31, 2018[18]. - The company's equity attributable to equity holders increased to RMB 26,745,901 thousand, a rise of 3.0% from RMB 25,978,646 thousand at the end of 2018[18]. - Total liabilities decreased to RMB 43.81 billion from RMB 44.89 billion at the end of 2018, a reduction of RMB 1.08 billion[113]. - The debt-to-asset ratio improved to 62.1% as of June 30, 2019, down from 63.3% at the end of 2018[20]. Cash Flow - Net cash flow used in operating activities was RMB (4,964,239) thousand, a significant increase of 380.6% compared to RMB (1,032,823) thousand in the previous year[19]. - Cash and cash equivalents decreased by RMB 10.30 billion during the reporting period[115]. - The company reported a net cash outflow from financing activities of RMB (52,155) thousand, contrasting with a net cash inflow of RMB 127,235 thousand in the first half of 2018[176]. Market and Strategic Focus - The company aims to focus on hydrogen energy, renewable energy, and new materials for future development, enhancing its global competitiveness[9]. - The company is focusing on expanding into new markets, particularly in Oman and ASEAN countries, while also enhancing its presence in Central Asia and Russia[34]. - Future outlook includes continued focus on operational efficiency and market expansion strategies[30]. Research and Development - R&D expenses surged by 64.9% to RMB 746.72 million, reflecting increased investment in new technologies and automation[65]. - The company has made significant progress in the development of a large-scale biomass fluidized bed coal chemical wastewater treatment technology, achieving an 80% reduction in waste gas emissions and over 40% reduction in residual sludge compared to traditional methods[48]. Shareholder Information - Total shares outstanding remained at 4,428,000,000, with 67.01% held by China Petroleum & Chemical Corporation[25]. - The number of shareholders increased to 1,015 by the end of the reporting period[26]. - The proposed interim cash dividend for the six months ended June 30, 2019, is RMB 0.108 per share, based on a total share capital of 4,428,000,000 shares[127]. Contracts and Revenue Segments - The company signed new contracts worth RMB 33.220 billion, a decrease of 6.4% compared to the previous year[35]. - Revenue from the petrochemical segment generated revenue of RMB 10.913 billion, which constituted 48.1% of total revenue, showing a significant year-on-year increase of 109.8%[39]. - Revenue from the oil refining segment was RMB 7.854 billion, accounting for 34.6% of total revenue, with a year-on-year growth of 13.3%[39]. Operational Efficiency - The company plans to enhance project management and risk control for key domestic and international projects, aiming to improve operational capabilities[55]. - The company is actively promoting 40 energy management projects, with 14 contracts signed, while others are in negotiation or feasibility study stages[50]. Compliance and Governance - The company adhered to corporate governance codes without deviations during the reporting period[124]. - Compliance with the Hong Kong Listing Rules has been confirmed, ensuring transparency and adherence to regulatory standards[151].