股 票 研 究 海 外 公 司 （ 中 国 香 港 ） 证 券 研 究 报 告 [Table_MainInfo] [Table_Title] 中石化炼化工程（2386） 海外市场开拓加速，新签合同超预期 | --- | --- | |-------------------------|------------| | | 石油 | | | | | [Table_Invest] 评级： | 增持 | | 当前价格（港元）： | 4.32 | | | 2024.02.28 | [Table_industryInfo] | --- | --- | |-------------------------------------------------------------------------------|-------------------| | [Table_ 交易数据 Market] \n52 周内股价区间（港元） \n当前股本（百万股） | 3.29-4.44 \n4,419 | | 当前市值（百万港元） | 19,088 | | --- | --- | --- | --- | |----------|-- ...

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 24,829,660, a decrease of 4.3% compared to RMB 25,958,552 in 2022[17]. - Gross profit decreased by 15.9% to RMB 2,240,224 from RMB 2,664,294 in the same period last year[17]. - Operating profit fell by 15.0% to RMB 992,967, down from RMB 1,167,517 in 2022[17]. - Net profit attributable to equity holders was RMB 1,317,070, a decrease of 2.9% from RMB 1,356,259 in 2022[17]. - Basic earnings per share decreased to RMB 0.30 from RMB 0.31, reflecting a 2.9% decline[17]. - The gross margin for the first half of 2023 was 9.0%, down from 10.3% in 2022[19]. - The net profit margin improved slightly to 5.3% from 5.2% in the previous year[19]. - The total comprehensive income for the six months ended June 30, 2023, was RMB 1,309,243,000, a decrease of 5.7% compared to RMB 1,388,299,000 in the same period of 2022[172]. - The profit attributable to equity holders of the company for the first half of 2023 was RMB 1,317,070,000, down from RMB 1,356,259,000 in the previous year, reflecting a decline of 2.9%[172]. Assets and Liabilities - As of June 30, 2023, current assets amounted to RMB 69,011,034 thousand, a decrease of 1.9% compared to December 31, 2022[16]. - Non-current assets were reported at RMB 8,086,978 thousand, reflecting a decrease of 2.7% from the end of 2022[16]. - Current liabilities decreased by 4.2% to RMB 44,544,197 thousand compared to the previous year-end[16]. - Non-current liabilities were RMB 2,137,631 thousand, down 1.5% from December 31, 2022[16]. - The asset-liability ratio decreased to 60.5% as of June 30, 2023, from 61.8% at the end of 2022[19]. - Total assets as of June 30, 2023, were RMB 77.10 billion, a decrease of RMB 1.58 billion (2.0%) compared to December 31, 2022[111]. - Total liabilities decreased by RMB 1.96 billion (4.0%) to RMB 46.68 billion as of June 30, 2023, primarily due to a reduction in current liabilities[112]. - The equity attributable to shareholders of the company increased by 1.3% to RMB 30,410,594 thousand[16]. - The total value of uncompleted contracts as of June 30, 2023, was RMB 125,132.95 million, an increase of 11.5% from the end of 2022[43]. Cash Flow - Cash used in operating activities improved by 24.7%, with a net cash outflow of RMB 1,038,507 compared to RMB 1,378,489 in 2022[17]. - The net cash used in investment activities was RMB 506.41 million, primarily due to equipment purchases and increased time deposits[115]. - The net cash used in financing activities was RMB 40.30 million, mainly for lease payments[115]. - The net cash used in operating activities for the first half of 2023 was RMB (1,038,507,000), an improvement compared to RMB (1,378,489,000) in the same period of 2022, indicating a reduction of about 24.7%[179]. - The company reported a net cash outflow from investing activities of RMB (506,405,000) for the first half of 2023, compared to RMB (883,481,000) in the previous year, showing a decrease of approximately 42.6%[179]. Business Strategy and Development - The company aims to enhance its service levels in safety, efficiency, and low-carbon solutions across the energy and chemical engineering sectors[9]. - The company is committed to expanding its business scope and extending its value chain in the energy and chemical engineering construction industry[9]. - The company continues to focus on market expansion and new technology development to enhance future performance[31]. - The company is actively expanding its international market presence, focusing on regions such as the Middle East, Central Asia, Southeast Asia, Africa, and the Americas[34]. - The company aims to enhance its comprehensive competitiveness in the overseas market by integrating technology and engineering services[34]. - The company is exploring diversified business models, including financing and technology cooperation, to drive value creation[34]. - The company is committed to high-quality development and market expansion despite facing challenges from the global economic environment and fluctuating oil prices[36]. Contracts and Projects - The company signed new contracts worth RMB 37.73 billion during the reporting period, with a significant increase in overseas contracts amounting to USD 1.11 billion, up 107.1% year-on-year[34]. - The company executed a total of 1,242 projects during the reporting period, with an average daily workforce exceeding 80,000[35]. - The total value of new contracts signed during the period was RMB 37,731.46 million, a decrease of 14.5% compared to RMB 44,150.18 million in the same period of 2022[110]. - The uncompleted contract value in the oil and petrochemical sector was RMB 74,927.02 million, reflecting a significant increase of 23.9% year-on-year[104]. Research and Development - The company achieved significant results in technology research and development, signing 230 technical development contracts and 36 technical licensing and service contracts, with a total contract value of RMB 494 million[48]. - The company applied for 405 new patents during the reporting period, with 292 being invention patents, accounting for 72.1% of the total[48]. - Research and development costs for the design, consulting, and technology licensing segment decreased by 15.8% to RMB 300.76 million[80]. - Research and development costs for the engineering contracting segment decreased by 5.8% to RMB 299.37 million[86]. Environmental, Social, and Governance (ESG) - The company established a key ESG performance indicator system covering greenhouse gas emissions, resource consumption, and pollution discharge[54]. - The company received the "Global Project Safety President Award" for the Huizhou Ethylene project from the owner[51]. - The company is actively promoting green enterprise initiatives, significantly reducing solid waste emissions in the Tianjin South Port Ethylene project[51]. - The company has established a comprehensive ESG information disclosure mechanism, responding to 48 disclosure indicators in its 2022 ESG report[54]. Human Resources - As of June 30, 2023, the company had a total of 16,133 employees[153]. - Employee costs for the first half of 2023 were approximately RMB 2.228 billion, compared to RMB 2.220 billion for the same period in 2022[155]. - The workforce gender distribution shows 27.1% female employees and 72.9% male employees as of June 30, 2023[156]. - The percentage of employees with a graduate degree is 19.5%, while those with a bachelor's degree account for 47.0%[155]. - The company emphasizes equal treatment and respect in its employment principles, aiming to improve gender diversity despite industry challenges[157]. Compliance and Governance - The audit committee reviewed the interim report and had no dissenting opinions on the financial performance[138]. - The board of directors and senior management have confirmed compliance with the standards set forth in the Securities and Futures Ordinance[150]. - The company has adopted the "Standard Code" as the code of conduct for securities transactions by directors[150]. - The company has not entered into any significant transactions that would provide substantial benefits to any directors or supervisors[152].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 24,829,660, a decrease of 4.3% compared to RMB 25,958,552 in the same period of 2022[14]. - Gross profit for the same period was RMB 2,240,224, down 15.9% from RMB 2,664,294 in 2022[14]. - Operating profit decreased by 15.0% to RMB 992,967 from RMB 1,167,517 in the previous year[14]. - Profit attributable to equity holders of the company was RMB 1,317,070, a decline of 2.9% compared to RMB 1,356,259 in 2022[14]. - Basic earnings per share for the period was RMB 0.30, down from RMB 0.31 in the same period last year[14]. - The total revenue for Sinopec Engineering Group in the first half of 2023 was RMB 24.83 billion, a decrease of 4.3% year-on-year[30]. - The net profit attributable to shareholders was RMB 1.32 billion, down 2.9% compared to the same period last year[30]. - The total revenue for the first half of 2023 was RMB 24,829.66 million, a decrease of 4.3% from RMB 25,958.55 million in the same period of 2022[39]. - The total comprehensive income for the six months ended June 30, 2023, was RMB 1,309,243,000, a decrease of 5.7% compared to RMB 1,388,299,000 in the same period of 2022[168]. - The profit attributable to equity holders of the company for the first half of 2023 was RMB 1,317,070,000, down from RMB 1,356,259,000 in the previous year, reflecting a decline of 2.9%[168]. Cash Flow and Assets - Cash used in operating activities was RMB (1,038,507), an improvement of 24.7% compared to RMB (1,378,489) in 2022[14]. - Current assets as of June 30, 2023, were RMB 69,011,034, a decrease of 1.9% from RMB 70,369,169 at the end of 2022[13]. - Non-current assets decreased by 2.7% to RMB 8,086,978 from RMB 8,313,294 at the end of 2022[13]. - Total assets as of June 30, 2023, amounted to RMB 77.10 billion, a decrease of RMB 1.58 billion (2.0%) compared to December 31, 2022[108]. - Total liabilities decreased to RMB 46.68 billion, down RMB 1.96 billion (4.0%) from the end of 2022[109]. - Cash and cash equivalents decreased by RMB 1.58 billion during the reporting period, with net cash used in operating activities amounting to RMB 1.04 billion[110]. Shareholder Information - Total shares outstanding remained at 4,428,000,000 as of June 30, 2023[21]. - The largest shareholder, China Petroleum & Chemical Corporation, holds 67.01% of the total shares[23]. - The company had a total of 915 shareholders as of the report date[22]. - The interim cash dividend proposed is RMB 0.119 per share, based on a total share capital of 4,428,000,000 shares[121]. - The interim dividend will be distributed to shareholders registered by the end of business on September 12, 2023, with payment expected by October 27, 2023[121]. Market and Contracts - The company signed new contracts worth RMB 37.73 billion during the reporting period, with a significant increase in overseas contracts amounting to USD 1.11 billion, up 107.1% year-on-year[31]. - The total amount of uncompleted contracts as of June 30, 2023, was RMB 125,132.95 million, an increase of 11.5% from the end of 2022[40]. - New contracts signed amounted to RMB 37,731.46 million, a decline of 14.5% year-on-year[40]. - The total value of new contracts signed in the first half of 2023 was RMB 37,731.46 million, a decrease of 14.5% compared to the same period in 2022[106]. - The value of uncompleted contracts in overseas markets was RMB 26,417.27 million, an increase of 27.5% compared to December 31, 2022[102]. Operational Efficiency - The company executed a total of 1,242 projects, with an average daily workforce exceeding 80,000 people, maintaining control over progress, costs, safety, quality, and environmental standards[32]. - The company plans to enhance project execution capabilities and optimize project management to improve efficiency and quality in future operations[58]. - The company achieved a cumulative safety man-hour of 128 million, an increase of 7.9% compared to the same period last year[48]. - The company implemented automatic welding technology in the Tianjin LNG project, significantly improving efficiency and quality[47]. Research and Development - Research and development costs decreased by 11.5% to RMB 793.53 million, attributed to a reduction in R&D projects during the reporting period[65]. - The company achieved significant results in technology research and development, signing 230 technology development contracts and 36 technology licensing and service contracts, with a total contract value of RMB 494 million[45]. - The company applied for 405 new patents during the reporting period, with 292 being invention patents, accounting for 72.1% of the total[45]. Environmental and Social Governance (ESG) - The company established a key ESG performance indicator system covering greenhouse gas emissions, resource consumption, and pollution discharge[51]. - The company received an AA rating in the Wind ESG assessment and won the "Best ESG Practice Award" in the Hong Kong energy sector[51]. - The company planted over 15,000 trees around the Saudi execution center, contributing to carbon reduction and environmental protection[48]. - The company is committed to achieving its "dual carbon" goals by systematically conducting research on carbon reduction and utilization across various stages of its operations[56]. Strategic Initiatives - The company aims to enhance its service levels in safety, efficiency, and sustainability in the energy and chemical engineering sector[6]. - The company is actively expanding its international market presence, focusing on regions such as the Middle East, Central Asia, Southeast Asia, Africa, and the Americas[30]. - The company is exploring diversified business models, including integrated investment and financing, extending into technology research and development and cooperation[30]. - The company plans to actively promote international operations by enhancing cooperation with domestic partners and international engineering firms, aiming to improve its comprehensive competitiveness in overseas markets[53].

Financial Performance - The company achieved a revenue of RMB 53.028 billion and a net profit of RMB 2.282 billion for the year 2022[46]. - The total value of new contracts signed in 2022 amounted to RMB 72.525 billion, reflecting strong business performance[46]. - The proposed final dividend for 2022 is RMB 0.210 per share, with a total annual dividend of RMB 0.328 per share, resulting in a payout ratio of 65%[47]. - The company generated a total revenue of RMB 476.4 billion and a profit of RMB 23.9 billion over the past decade, with a total dividend payout of RMB 12.1 billion[48]. - In 2022, the company signed new domestic contracts amounting to RMB 4.65 billion, achieving a historical high in contract value[49]. - The company achieved a 40% year-on-year increase in technology licensing contracts, totaling RMB 399 million[49]. - The company achieved a revenue of RMB 53,028,139 thousand in 2022, a decrease of 8.2% compared to RMB 57,759,590 thousand in 2021[99]. - Gross profit for 2022 was RMB 5,612,325 thousand, down 13.2% from RMB 6,468,189 thousand in the previous year[99]. - Operating profit increased by 6.4% to RMB 1,810,813 thousand in 2022, compared to RMB 1,701,898 thousand in 2021[99]. - The net cash flow from operating activities surged by 131.3% to RMB 6,809,048 thousand in 2022, up from RMB 2,943,228 thousand in 2021[99]. - The company reported a capital return on investment of 7.8% in 2022, up from 7.5% in 2021[105]. - The total revenue for the year 2022 decreased by 8.2% to RMB 53,028.14 million from RMB 57,759.59 million in 2021[141]. - The net profit attributable to shareholders for the year was RMB 2.28 billion, reflecting the challenges faced during the year[118]. - The amount of uncompleted contracts at the end of 2022 was RMB 112.23 billion, up 21.0% from RMB 92.73 billion at the end of 2021[123]. Business Strategy and Development - The company aims to enhance its service levels across the entire energy and chemical engineering industry chain, focusing on safety, efficiency, and low-carbon solutions[40]. - The company plans to expand its business areas and extend its value chain to create a world-leading technology-driven engineering company[40]. - The company is positioned as a comprehensive service provider for the entire lifecycle of energy and chemical engineering projects[39]. - The company aims to align with the "dual carbon" goals, focusing on high-quality development and technological leadership in the energy and chemical industry[51]. - The company aims to enhance its service capabilities by providing high-end consulting and reliable engineering services for the green transformation of the energy and chemical industries, focusing on project quality and safety[52]. - The company is focused on building a world-leading technology-driven engineering firm, emphasizing value leadership, innovation, and green development[67]. - The company plans to focus on high-end, intensive, and differentiated development goals in technology innovation[135]. - The company will explore new opportunities under the "dual carbon" goals, particularly in nuclear power and refining applications[135]. - The company aims to strengthen its international business capabilities and deepen cooperation with international engineering firms[136]. Innovation and Technology - The company received 35 provincial and above-level awards for technological progress in 2022, reflecting its commitment to innovation[50]. - The company has established a comprehensive digital delivery system across nearly 40 large projects, enhancing engineering design efficiency and quality[50]. - The company has made significant advancements in green and low-carbon technologies, applying core environmental protection technologies in multiple major petrochemical projects[51]. - The company has established a comprehensive hydrogen energy technology R&D layout, supporting its expansion into the hydrogen energy business[85]. - The company developed a series of large-scale LNG storage tank technologies, which have been promoted and applied in the market[87]. - The company completed 301 technology development contracts and 92 technology licensing contracts, with a total contract value of RMB 855 million, marking a historical high[128]. - The company filed 771 new patent applications, with 540 being invention patents, accounting for 70% of the total[128]. - The company is committed to innovation in areas such as oil transformation and hydrogen energy, focusing on original and integrated innovation to advance refining and chemical processes[53]. Operational Efficiency - The company executed 1,192 projects domestically and internationally, with an average daily workforce exceeding 80,000, achieving a total of 250 million safe man-hours[49]. - The company has established a talent pool of 267 experts across 41 specialties, enhancing its talent development strategy[133]. - The company aims to enhance project management efficiency by optimizing cost control and improving collaboration across project phases[136]. - The company achieved a safety working hours total of 250 million, meeting annual quality and environmental goals[131]. Market Presence and Expansion - The company has successfully entered the Algerian market and exceeded its annual target of $1 billion in overseas business, consolidating its presence in the Middle East[49]. - The total number of domestic contracts signed reached 17,642, with a total value of RMB 452.5 billion, while 260 overseas contracts were signed, totaling USD 15.3 billion[68]. - The company has established long-term stable partnerships with major energy and chemical enterprises, accumulating a broad and stable customer base[40]. - The company has established a strong brand presence through participation in the Belt and Road Initiative, enhancing its equipment, technology, and standards internationally[52]. Financial Health and Governance - The company emphasizes continuous improvement in corporate governance and risk management, aiming to enhance the management system and attract high-level talent[53]. - The company maintains a stable profit distribution policy, ensuring shareholder returns while balancing long-term interests and sustainable development[64]. - The asset-liability ratio increased to 61.8% in 2022 from 60.1% in 2021[100]. - The total assets of the group as of December 31, 2022, were RMB 786.82 billion, an increase of RMB 5.76 billion from RMB 729.17 billion in 2021[193]. - The total liabilities increased to RMB 486.42 billion, up RMB 48.48 billion from RMB 437.94 billion in 2021[193]. - The group’s equity attributable to shareholders increased to RMB 300.40 billion, up RMB 9.16 billion from RMB 291.23 billion in 2021[193].

Financial Performance - The company achieved a revenue of RMB 53.028 billion and a net profit of RMB 2.282 billion for the year 2022[45]. - The total revenue for the year 2022 was RMB 53,028,139, a decrease of 8.2% compared to RMB 57,759,590 in 2021[98]. - Gross profit for 2022 was RMB 5,612,325, down 13.2% from RMB 6,468,189 in the previous year[98]. - Operating profit increased by 6.4% to RMB 1,810,813 from RMB 1,701,898 in 2021[98]. - Net profit attributable to equity holders was RMB 2,281,800, reflecting a 7.1% increase from RMB 2,129,589 in 2021[98]. - The cash flow from operating activities surged by 131.3% to RMB 6,809,048 compared to RMB 2,943,228 in 2021[98]. - The total revenue for the group in 2022 was RMB 53.03 billion, a decrease of 8.2% compared to RMB 57.76 billion in 2021[118]. - The net profit attributable to shareholders for the period was RMB 2.28 billion[117]. - The gross margin decreased to 10.6% in 2022 from 11.2% in 2021[104]. - Net profit margin improved to 4.3% in 2022 compared to 3.7% in 2021[104]. - Return on assets remained stable at 3.0% in 2022, unchanged from 2021[104]. - Return on equity increased to 7.6% in 2022 from 7.3% in 2021[104]. - Return on invested capital rose to 7.8% in 2022, up from 7.5% in 2021[104]. Contracts and Business Growth - The total amount of new contracts signed in 2022 reached RMB 72.525 billion, reflecting strong business performance[45]. - The company signed 17,642 domestic contracts with a total value of RMB 452.5 billion and 260 overseas contracts valued at USD 15.3 billion[67]. - The company achieved a historical high in new domestic contract signing amounting to RMB 4.65 billion, with significant projects including Tianjin Nangang Ethylene and Sinopec's Huizhou Phase III[48]. - The company completed 1,192 projects with an average daily workforce exceeding 80,000, achieving a total of 250 million safe man-hours throughout the year[48]. - The amount of uncompleted contracts at the end of the period was RMB 112.23 billion, an increase of 21.0% year-on-year[122]. - Domestic new contract amount hit a historical high of RMB 65.324 billion, up 19.9% year-on-year[126]. - The company executed 1,192 projects both domestically and internationally, ensuring strong operational support[129]. Awards and Recognition - The company has received 22 National Excellent Design Awards and 37 National Quality Engineering Awards in the past ten years, enhancing its industry reputation[47]. - The company received 35 provincial and ministerial-level scientific and technological progress awards during the year[50]. - The company has received multiple national awards for technological advancements in the petrochemical sector, including the first-class award for the development of large-scale ethylene technology[90]. Technology and Innovation - Significant advancements in technology include the successful industrial application of ethylene production from steam cracking and the development of various petrochemical technologies[81]. - The company has actively engaged in hydrogen energy technology projects, forming an integrated R&D layout for hydrogen production, storage, transportation, and utilization[84]. - The company has developed key technologies for high-acid natural gas purification, addressing large-scale safety and efficiency challenges[86]. - The company completed 771 new patent applications, with 540 being invention patents, accounting for 70% of the total[127]. - The company plans to enhance R&D in areas such as energy conservation, digitalization, and automation technologies[145]. Sustainability and Compliance - The company is focusing on the "dual carbon" goals, enhancing its capabilities in green transformation and sustainable development[51]. - The company’s energy-saving projects saved 170,000 tons of standard coal per year and reduced carbon dioxide equivalent emissions by nearly 410,000 tons annually[50]. - The company implemented a comprehensive compliance management system, becoming the first listed company in the petrochemical industry to pass the ISO 37301 certification[48]. - The company aims to expand its market share in emerging fields such as LNG, green hydrogen, and CCUS[134]. Financial Position and Assets - The total asset scale increased by RMB 41.6 billion since the company's listing[62]. - The total assets as of December 31, 2022, amounted to RMB 786.82 billion, an increase of RMB 5.76 billion from RMB 729.17 billion at the end of 2021[192]. - The company's equity attributable to shareholders increased to RMB 300.40 billion, up RMB 9.16 billion from RMB 291.23 billion at the end of 2021[192]. - The total liabilities as of December 31, 2022, were RMB 486.42 billion, an increase of RMB 4.85 billion from RMB 437.94 billion in 2021[192]. Future Outlook - In 2023, the company aims for new domestic contracts worth RMB 50 billion and overseas contracts worth USD 1.5 billion[134]. - The company plans to focus on high-end, intensive, and differentiated development goals in technology innovation, particularly in new energy and new materials[134]. - The company will strengthen its project execution capabilities by optimizing cost control and enhancing collaboration across project phases[135]. - The company is committed to enhancing its international business competitiveness by deepening relationships with key overseas clients and optimizing its marketing network[135].

Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 25,958,552 thousand, a decrease of 3.3% compared to RMB 26,851,392 thousand in the same period of 2021[12]. - Gross profit increased by 5.5% to RMB 2,664,294 thousand from RMB 2,524,351 thousand year-on-year[12]. - Operating profit remained stable at RMB 1,167,517 thousand, a slight increase of 0.6% from RMB 1,161,083 thousand in the previous year[12]. - Profit attributable to equity holders of the company was RMB 1,354,606 thousand, reflecting a 0.6% increase from RMB 1,347,127 thousand in the same period last year[12]. - Basic earnings per share rose to RMB 0.31, up from RMB 0.30, marking a 0.6% increase[12]. - Net profit margin improved to 5.2% in H1 2022 compared to 5.0% in H1 2021[13]. - The total comprehensive income for the period was RMB 1,386,644,000, an increase of 2.9% from RMB 1,347,293,000 in the previous year[55]. - The company's net profit for the six months ended June 30, 2022, was RMB 1,354,606 thousand, compared to RMB 1,347,127 thousand for the same period in 2021, showing a slight increase of approximately 0.5%[159]. Revenue Breakdown - The engineering contracting segment generated revenue of RMB 14.79 billion, down 9.1% year-on-year, while the construction segment reported revenue of RMB 12.57 billion, a decrease of 3.1% year-on-year[34]. - The design, consulting, and technology licensing segment's revenue was RMB 1.59 billion, remaining stable year-on-year, while equipment manufacturing revenue fell to RMB 397 million, down 17.2% year-on-year[34]. - The refining segment's revenue was RMB 3.99 billion, a decline of 25.6% year-on-year, while the petrochemical segment saw revenue increase to RMB 16.15 billion, up 7.3% year-on-year[35]. - Revenue from the petrochemical industry was RMB 16.145 billion, a year-on-year increase of 7.3%[36]. - Revenue from the refining industry was RMB 3.985 billion, a year-on-year decrease of 25.6%[36]. - Total revenue from domestic operations was RMB 23.781 billion, a year-on-year decrease of 3.9%[38]. - Total revenue from overseas operations was RMB 2.177 billion, a year-on-year increase of 3.6%[38]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 72,256,949 thousand, a decrease of 0.9% from RMB 72,917,243 thousand at the end of 2021[11]. - Current liabilities decreased by 2.4% to RMB 40,382,299 thousand from RMB 41,370,338 thousand at the end of 2021[11]. - The company's equity attributable to equity holders increased by 1.4% to RMB 29,521,670 thousand from RMB 29,118,084 thousand at the end of 2021[11]. - Asset-liability ratio decreased to 59.1% as of June 30, 2022, from 60.1% at the end of 2021[13]. - Total liabilities decreased to RMB 42,729,985 thousand from RMB 43,793,907 thousand, reflecting a reduction of approximately 2.4%[158]. Cash Flow - Net cash flow used in operating activities improved significantly to (RMB 1,378,489 thousand), a 30.3% reduction from (RMB 1,978,359 thousand) in the previous year[12]. - Cash and cash equivalents decreased by RMB 2.26 billion during the reporting period, compared to a decrease of RMB 1.82 billion in the previous year[105]. - Operating cash flow for the six months ended June 30, 2022, was RMB (1,378,489) thousand, a decrease from RMB (1,978,359) thousand in 2021, representing a reduction of approximately 30.3%[162]. Strategic Initiatives - The company aims to enhance its service levels in safety, efficiency, and sustainability as part of its strategic vision to become a world-leading technology-driven engineering company[6]. - Future outlook includes continued focus on operational efficiency and market expansion strategies[26]. - The company is focusing on the transformation and upgrading of traditional refining and chemical industries towards green and low-carbon development[30]. - The company is actively pursuing market expansion and has signed significant contracts in both domestic and international markets, including projects in Algeria[29]. Research and Development - The company plans to enhance its innovation capabilities by focusing on key technologies in areas such as "oil transformation" and hydrogen energy[51]. - The company completed 272 new patent applications and received 280 new authorized patents, including 126 invention patents, indicating a steady improvement in patent quality[46]. - Research and development costs for the period were RMB 897,120 thousand, slightly higher than RMB 892,152 thousand in the previous year[155]. Shareholder Information - The company maintained a total share count of 4,428,000,000 shares as of June 30, 2022[20]. - The largest shareholder, China Petroleum & Chemical Corporation, holds 67.01% of the total shares[22]. - The company plans to distribute a mid-term cash dividend of RMB 0.118 per share based on a total share capital of 4,428,000,000 shares as of June 30, 2022[115]. Employee and Management - As of June 30, 2022, the total number of employees in the group was 16,541, with 77.9% being engineering and technical personnel[142]. - Employee costs for the first half of 2022 were approximately RMB 2.22 billion, compared to RMB 2.31 billion for the same period in 2021[144]. - The management team includes a general manager and three deputy general managers, with the general manager in position since December 2020[138]. Compliance and Governance - The audit committee reviewed the interim report and found no disagreements regarding the financial performance[129]. - There were no significant legal disputes or arbitration matters reported during the period[122]. - The group maintained compliance with the Hong Kong Listing Rules regarding related party transactions[121].

Financial Performance - Total revenue for the first half of 2022 was RMB 25,958,552 thousand, a decrease of 3.3% compared to RMB 26,851,392 thousand in the same period of 2021[16] - Gross profit increased by 5.5% to RMB 2,664,294 thousand from RMB 2,524,351 thousand year-on-year[16] - Operating profit remained stable at RMB 1,167,517 thousand, reflecting a slight increase of 0.6% from RMB 1,161,083 thousand in 2021[16] - Profit attributable to equity holders of the company was RMB 1,354,606 thousand, up 0.6% from RMB 1,347,127 thousand in the previous year[16] - Basic earnings per share increased to RMB 0.31 from RMB 0.30, marking a growth of 0.6%[16] - The total comprehensive income for the period was RMB 1,386,644,000, up 2.9% from RMB 1,347,293,000[59] - The group's net profit for the period was RMB 1.355 billion, showing no significant change compared to the previous year[67] - The net profit margin improved to 5.2% from 5.0% year-on-year[111] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 72,256,949 thousand, a decrease of 0.9% from RMB 72,917,243 thousand at the end of 2021[15] - Current liabilities decreased by 2.4% to RMB 40,382,299 thousand from RMB 41,370,338 thousand at the end of 2021[15] - Asset-liability ratio decreased to 59.1% as of June 30, 2022, down from 60.1% at the end of 2021[17] - Total liabilities decreased to RMB 42,729,985 thousand from RMB 43,793,907 thousand, a reduction of approximately 2.4%[162] - The equity attributable to equity holders increased to RMB 29.52 billion, an increase of RMB 404 million from the end of 2021, mainly due to retained earnings growth[107] Revenue Segments - The engineering contracting segment generated revenue of RMB 14.785 billion, down 9.1% year-on-year, while the construction segment reported revenue of RMB 12.566 billion, a decrease of 3.1% year-on-year[38] - The refining segment's revenue was RMB 3.985 billion, down 25.6% year-on-year, while the petrochemical segment's revenue increased by 7.3% to RMB 16.145 billion[39] - Revenue from the petrochemical industry was RMB 16.145 billion, a year-on-year increase of 7.3%[40] - Revenue from the refining industry was RMB 3.985 billion, a year-on-year decrease of 25.6%[40] - Total revenue from domestic operations was RMB 23.781 billion, a year-on-year decrease of 3.9%[42] - Total revenue from overseas operations was RMB 2.177 billion, a year-on-year increase of 3.6%[42] Contracts and Projects - The company signed new contracts worth RMB 44.150 billion during the reporting period, representing a year-on-year increase of 20.4%[33] - The total amount of uncompleted contracts was RMB 120.916 billion, an increase of 8.9% compared to the end of 2021[43] - The company has 1,138 ongoing projects under control in terms of progress, costs, safety, quality, and environmental protection[32] - New projects such as Tianjin Nangang Ethylene and Xinjiang Kuqa Green Hydrogen were successfully launched during the reporting period[32] Cash Flow and Investments - Cash flow from operating activities showed an improvement, with a net outflow of RMB 1,378,489 thousand, a reduction of 30.3% compared to RMB 1,978,359 thousand in the same period last year[16] - Capital expenditures were approximately RMB 276 million, a year-on-year decrease of 27.6%[44] - The company’s investment in property, plant, and equipment was RMB (401,253) thousand, up from RMB (274,275) thousand in 2021, indicating an increase of about 46.2%[166] Research and Development - The company signed 265 technology development contracts and 39 technology licensing contracts, with the total value of technology licensing contracts exceeding RMB 150 million[50] - The company completed 272 new patent applications and received 280 new authorized patents, including 126 invention patents, indicating a steady improvement in patent quality[50] - Research and development costs for the period were RMB 897,120 thousand, slightly higher than RMB 892,152 thousand in the previous year[159] Strategic Initiatives - The company aims to enhance its service levels in safety, efficiency, and sustainability as part of its strategic vision to become a world-leading technology-driven engineering company[10] - The company plans to expand its business scope and extend its value chain, focusing on engineering innovation and value creation as key development engines[10] - The company is focusing on the transformation and upgrading of traditional refining and chemical industries towards green and low-carbon development[34] - The company aims to enhance its technical research and engineering transformation capabilities in response to the challenges posed by the evolving energy market[34] Employee and Management - As of June 30, 2022, the total number of employees in the group was 16,541, with 77.9% being engineering and technical personnel[146] - Employee costs for the first half of 2022 were approximately RMB 2.22 billion, compared to RMB 2.31 billion for the same period in 2021[148] - The company has a good labor relationship, with employee compensation including salary, discretionary bonuses, and mandatory social security contributions[148] Audit and Compliance - The audit opinion confirms that the consolidated financial statements present a true and fair view of the group's financial position as of June 30, 2022[151] - The audit committee reviewed the interim report and had no dissenting opinions regarding the financial performance[133] - The board of directors and supervisors confirmed compliance with the standards set forth in the Hong Kong Listing Rules during the reporting period[143]

Financial Performance - Revenue for 2021 reached RMB 57,759,590, an increase of 10.3% compared to RMB 52,352,584 in 2020[14] - Gross profit for 2021 was RMB 6,468,189, reflecting a growth of 13.2% from RMB 5,714,072 in the previous year[14] - Operating profit decreased by 22.8% to RMB 1,701,898 from RMB 2,204,379 in 2020[14] - Pre-tax profit fell by 13.9% to RMB 2,592,407 compared to RMB 3,010,562 in 2020[14] - Net profit attributable to equity holders was RMB 2,129,589, down 10.6% from RMB 2,381,905 in 2020[14] - Basic earnings per share decreased by 10.6% to RMB 0.48 from RMB 0.54 in the previous year[14] - The company achieved a revenue of RMB 57.76 billion and a net profit of RMB 2.13 billion in 2021, with a total new contract value of RMB 63.15 billion[30] - The total revenue for the group reached RMB 57,759.59 million, a year-on-year increase of 10.3%[39] - The profit attributable to shareholders was RMB 2.13 billion, a year-on-year decrease of 10.6%[39] Assets and Liabilities - As of December 31, 2021, non-current assets increased by 7.7% to RMB 7,979,567,000 compared to RMB 7,409,911,000 in 2020[13] - Current assets rose by 1.4% to RMB 64,937,676,000 from RMB 64,055,416,000 in the previous year[13] - Current liabilities increased by 1.7% to RMB 41,370,338,000, up from RMB 40,672,278,000 in 2020[13] - Non-current liabilities decreased by 4.5% to RMB 2,423,569,000 compared to RMB 2,537,011,000 in 2020[13] - Equity attributable to shareholders increased by 3.1% to RMB 29,118,084,000 from RMB 28,251,172,000 in 2020[13] - The total assets as of December 31, 2021, were RMB 72,917.24 million, an increase of RMB 1,451.92 million from RMB 71,465.33 million in 2020[122] - The total liabilities as of December 31, 2021, were RMB 43,793.91 million, an increase of RMB 584.62 million from RMB 43,209.29 million in 2020[122] Cash Flow - Net cash flow from operating activities was RMB 2,943,228, a slight decrease of 0.5% from RMB 2,956,836 in 2020[14] - Cash and cash equivalents increased by RMB 2,057.00 million during the reporting period, with net cash from operating activities amounting to RMB 2,943.00 million[124] - The net cash flow from operating activities for the year ended December 31, 2021, was RMB 29.43 billion, a slight decrease from RMB 29.57 billion in 2020[125] - The net cash flow from investing activities was RMB 5.03 billion, primarily due to a reduction in loans to the ultimate holding company[126] - The net cash flow used in financing activities was RMB 13.89 billion, mainly attributed to dividend payments and reduced borrowings from subsidiaries[126] Profitability Ratios - Gross margin improved to 11.2% in 2021 from 10.9% in 2020[15] - Net profit margin decreased to 3.7% in 2021 from 4.6% in 2020[15] - Return on assets was 3.0% in 2021, down from 3.4% in 2020[15] - The company's debt ratio improved to 0.8% in 2021 from 1.1% in 2020, reflecting a decrease in interest-bearing debt[127] - The return on equity (ROE) declined to 7.3% in 2021 from 8.4% in 2020, influenced by reduced profit and increased total equity[131] Strategic Initiatives - The company aims to enhance its service levels in safety, efficiency, and sustainability as part of its strategic vision[7] - Future strategies include expanding business areas and extending the value chain in the energy and chemical engineering sector[7] - The company plans to implement six major development strategies focusing on value leadership and innovation[7] - The company is focusing on the "dual carbon" target strategy, emphasizing the development of key technologies related to clean energy and carbon neutrality[34] - The company aims to strengthen its project lifecycle quality management and improve design safety levels continuously[34] Research and Development - R&D expenses increased by 9.4% to RMB 2,379.15 million, driven by investments in new technologies and materials[75] - The company completed 681 new patent applications, with 476 being invention patents, representing 69.9% of the total[56] - The company has made significant advancements in technology, including the development of a hydrogen energy full industry chain and the successful industrial application of "direct crude oil cracking to ethylene technology"[31] - The company is committed to talent development through initiatives like the "Seedling Plan" for young cadres to enhance their professional skills[34] Project Execution and Safety - A total of 1,423 projects were executed in 2021, with 804 projects completed without any safety, quality, or environmental incidents reported[32] - The company achieved a cumulative total of 295 million safe working hours, maintaining a good safety production status[53] - The company has implemented a three-tier warning system for project deviations to ensure effective risk management[51] Corporate Governance - The company has improved its corporate governance structure with the election of a new board of directors, enhancing decision-making capabilities[31] - The board of directors consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, with independent directors making up at least one-third of the board[171] - The company has established a comprehensive internal control system that integrates risk management, internal control, and regulatory compliance[160] - The audit committee reviewed the annual report and had no dissenting opinions regarding the financial performance[151] Environmental, Social, and Governance (ESG) - The company is actively promoting green low-carbon initiatives, including CO2 recycling and distributed photovoltaic power generation[31] - The company has established an ESG committee to integrate advanced technology for green and efficient production[33] - The company established an ESG committee on March 18, 2022, reflecting a commitment to environmental, social, and governance practices[197] Market Position and Contracts - The company is actively involved in major projects such as the Hainan Ethylene and Shandong LNG Phase III, further consolidating its market position[33] - The new signed contracts amounted to RMB 63.15 billion, a slight increase of 0.2% compared to the previous year[46] - The uncompleted contracts at the end of the reporting period were RMB 1110.45 billion, an increase of 5.1% year-on-year, covering 1.92 times the total revenue for the year[46]

Financial Performance - Revenue for 2021 was RMB 57,759,590, an increase of 10.3% compared to RMB 52,352,584 in 2020[18] - Gross profit for 2021 reached RMB 6,468,189, reflecting a growth of 13.2% from RMB 5,714,072 in the previous year[18] - Operating profit decreased by 22.8% to RMB 1,701,898 from RMB 2,204,379 in 2020[18] - Net profit attributable to equity holders was RMB 2,129,589, down 10.6% from RMB 2,381,905 in 2020[18] - Basic earnings per share for 2021 was RMB 0.48, a decrease of 10.6% compared to RMB 0.54 in 2020[18] - The company achieved a revenue of RMB 57.76 billion and a net profit of RMB 2.13 billion in 2021, marking a historical high for multiple operational indicators[34] - The total amount of new contracts signed in 2021 reached RMB 63.15 billion, reflecting strong business growth[34] - The total revenue for the group reached RMB 57.76 billion, representing a year-on-year growth of 10.3%[43] - The profit attributable to shareholders was RMB 2.13 billion, a decrease of 10.6% year-on-year[43] - The total value of new contracts signed during the year was RMB 63,150.16 million, a slight increase of 0.2% compared to RMB 63,013.63 million in 2020[124] Assets and Liabilities - As of December 31, 2021, non-current assets increased by 7.7% to RMB 7,979,567,000 compared to RMB 7,409,911,000 in 2020[17] - Current assets rose by 1.4% to RMB 64,937,676,000 from RMB 64,055,416,000 in the previous year[17] - Current liabilities increased by 1.7% to RMB 41,370,338,000, up from RMB 40,672,278,000 in 2020[17] - Non-current liabilities decreased by 4.5% to RMB 2,423,569,000 compared to RMB 2,537,011,000 in 2020[17] - The total assets as of December 31, 2021, were RMB 72,917.24 million, an increase of RMB 1,451.92 million from RMB 71,465.33 million in 2020[126] - The total liabilities as of December 31, 2021, were RMB 43,793.91 million, an increase of RMB 584.62 million from RMB 43,209.29 million in 2020[126] - The backlog of uncompleted contracts at the end of the reporting period was RMB 1110.45 billion, up 5.1% year-on-year, covering 1.92 times the total revenue for the year[50] Profitability Metrics - Gross margin improved to 11.2% in 2021 from 10.9% in 2020[19] - Net profit margin decreased to 3.7% in 2021 from 4.6% in 2020[19] - Return on assets was 3.0% in 2021, down from 3.4% in 2020[19] - The company's net profit margin decreased from 4.6% in 2020 to 3.7% in 2021, reflecting a decline in profitability[133] - The return on assets (ROA) fell from 3.4% in 2020 to 3.0% in 2021, due to reduced profits and increased total assets[135] - The return on equity (ROE) decreased from 8.4% in 2020 to 7.3% in 2021, attributed to lower profits and higher total equity[135] Strategic Initiatives - The company aims to enhance its service levels in safety, efficiency, and sustainability as part of its strategic vision[11] - Future strategies include expanding business areas and extending the value chain in the energy and chemical engineering sector[11] - The company emphasizes innovation and value creation as key drivers for its development[11] - The company is focusing on the "dual carbon" target strategy, exploring the reconstruction of refining processes under new energy and new power systems[38] - The company is committed to talent development through a mid-to-long-term talent development plan and initiatives like the "Seedling Plan" for young cadres[38] - The company is actively promoting green low-carbon initiatives, including CO2 recycling and distributed photovoltaic power generation[35] Technology and Innovation - The company has made significant advancements in technology, including the development of a hydrogen energy full industry chain and the successful industrial application of "direct crude oil cracking to ethylene technology"[35] - The company launched a 3,000 tons/year high-end polybutene-1 industrial demonstration unit, marking a major breakthrough in high-end synthetic materials[35] - The company has received 92 provincial and above-level science and technology progress awards, including a first-class award for "complex raw material million-ton ethylene complete technology"[35] - The company has made significant progress in hydrogen energy technology, including the implementation of the world's largest green hydrogen project in Xinjiang and the production of a hydrogen purification device for fuel cells[58] - The company completed 681 new patent applications, with 476 being invention patents, representing 69.9% of the total[60] - The company is focusing on key core technologies related to oil transformation and high-end chemical materials to drive industry transformation and upgrade[38] Corporate Governance - The company has established a comprehensive internal control system in compliance with various regulatory requirements, enhancing risk management and operational efficiency[163] - The board of directors consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, with independent directors making up at least one-third of the board[175] - The company has established a nomination committee to evaluate the independence of independent non-executive directors and ensure a diverse board composition[177] - The company adheres to the corporate governance code as per the Hong Kong Listing Rules without any deviations[172] - The company has implemented internal control mechanisms to provide sufficient financial data and explanations to the board and audit committee[181] Risk Management - The company has taken effective internal control measures to monitor sanctions risks related to its projects in Iran and Russia, ensuring compliance with commitments to the Hong Kong Stock Exchange[168] - The risk management and internal control system has been integrated, with risk factors identified and evaluated annually, and measures established for significant risks[182] - The company conducts quarterly evaluations of internal control execution and annual comprehensive assessments of risk-oriented internal control effectiveness[182] Market Position and Growth - The company has established long-term stable partnerships with major energy and chemical enterprises globally, enhancing its market influence[11] - The company is actively involved in major projects such as the Hainan Ethylene and Shandong LNG Phase III, further consolidating its market position[37] - The company is committed to international business development, focusing on traditional markets in the Middle East and Southeast Asia while exploring emerging markets in Africa and South Asia[67] - The company has a strong international competitive position in the energy and chemical engineering sector, serving both domestic and overseas clients[195]

Financial Performance - Total revenue for the six months ended June 30, 2021, was RMB 26,851,392 thousand, representing a 12.8% increase compared to RMB 23,797,156 thousand in the same period of 2020[16] - Gross profit for the same period was RMB 2,524,351 thousand, up 15.2% from RMB 2,191,775 thousand year-on-year[16] - Net profit attributable to equity holders of the company was RMB 1,347,127 thousand, a 6.9% increase from RMB 1,260,191 thousand in the previous year[16] - The gross margin for the first half of 2021 was 9.4%, compared to 9.2% in the same period of 2020[17] - The net profit margin for the first half of 2021 was 5.0%, slightly down from 5.3% in the previous year[17] - The total revenue for the first half of 2021 was RMB 26.851 billion, representing a year-on-year growth of 12.8%[33] - Net profit for the same period was RMB 1.347 billion, an increase of 6.9% year-on-year[30] - Total comprehensive income for the period rose by 10.8% year-on-year to RMB 1,347,293 thousand[160] Assets and Liabilities - The company's total assets as of June 30, 2021, were RMB 72,210,511 thousand, reflecting a 1.0% increase from RMB 71,465,327 thousand at the end of 2020[15] - The company's equity attributable to equity holders increased to RMB 28,770,273 thousand, a rise of 1.8% from RMB 28,251,172 thousand at the end of 2020[15] - Total liabilities increased to RMB 43.44 billion, up by RMB 0.23 billion from RMB 43.21 billion at the end of 2020[106] - The company's total equity as of June 30, 2021, was RMB 28,775,295 thousand, an increase from RMB 27,553,970 thousand as of June 30, 2020, indicating a growth of approximately 4.4%[161] Revenue Breakdown - Revenue from engineering general contracting was RMB 16.265 billion, accounting for 51.9% of total revenue, with a year-on-year increase of 4.7%[33] - Revenue from construction services was RMB 12.969 billion, representing 41.4% of total revenue, with a significant year-on-year growth of 34.9%[33] - Revenue from design, consulting, and technology licensing was RMB 1.614 billion, showing a year-on-year increase of 31.2%[34] - Revenue from refining was RMB 5.354 billion, which accounted for 19.9% of total revenue, reflecting a decrease of 3.1% year-on-year[35] - Revenue from petrochemicals was RMB 15.051 billion, making up 56.1% of total revenue, with a year-on-year increase of 4.3%[35] - Revenue from storage and other services surged to RMB 5.918 billion, a remarkable increase of 260.8% year-on-year[35] - Domestic revenue amounted to RMB 24.749 billion, representing 92.2% of total revenue, with a year-on-year growth of 17.6%[37] - Overseas revenue decreased to RMB 2.101 billion, accounting for 7.8% of total revenue, with a year-on-year decline of 23.8%[37] Contracts and Projects - New contracts signed during the reporting period amounted to RMB 36.663 billion, with domestic contracts at RMB 30.131 billion and international contracts at approximately RMB 6.532 billion[30] - The company’s uncompleted contracts at the end of the reporting period totaled RMB 115.466 billion, a 9.3% increase compared to December 31, 2020[30] - Major contracts signed included the Hainan refining and ethylene expansion project worth approximately RMB 9.506 billion[41] - The company made significant breakthroughs in the Russian market, signing a contract for the AGCC project worth approximately USD 9.42 million[41] Cash Flow and Financial Management - The company reported a cash flow from operating activities of (RMB 1,978,359) thousand, a marginal increase in cash outflow compared to (RMB 1,962,757) thousand in the same period of 2020[16] - The company aims to strengthen cash flow management and control operating capital usage in future investments[109] - The company reported a net decrease in cash and cash equivalents of RMB 1.82 billion during the period[109] Shareholder Information - The total number of shares outstanding is 4,428,000,000, with 67.01% held by the controlling shareholder, China Petroleum & Chemical Corporation[21] - The number of foreign H shares is 1,460,800,000, representing 32.99% of the total shares[21] - The top shareholder, China Petroleum & Chemical Corporation, holds 2,967,200,000 domestic shares, accounting for 67.01% of the total[23] - The company has met the minimum public float requirements as per the Hong Kong Listing Rules[22] Research and Development - R&D expenses increased by 12.0% year-on-year to RMB 892 million, driven by investments in oil conversion technology, new materials, and digitalization[7] - The group completed 315 new patent applications, with 69.5% being invention patents, and received 44 provincial and national-level awards for technological progress[47] Risk Management and Compliance - The company has maintained a zero-infection record domestically and effectively controlled public safety and pandemic risks in overseas projects[43] - The company is enhancing its management system based on risk and process standards, aiming to obtain ISO9001, ISO45001, and ISO14001 certifications by the end of the year[43] - The auditors identified and assessed risks of material misstatement due to fraud or error in the financial statements, emphasizing the importance of internal controls[154] Employee Information - As of June 30, 2021, the total number of employees was 16,896, with engineering technical personnel accounting for 77.7%[143] - Employee costs for the first half of 2021 were approximately RMB 2.308 billion, compared to RMB 2.113 billion for the same period in 2020[145] - The group has a good labor relationship, with employee compensation including salary, discretionary bonuses, and mandatory social security fund contributions[145] Corporate Governance - The management confirmed that there were no significant transactions or contracts that would provide substantial benefits to any directors or supervisors during the reporting period[142] - 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[125]