Company Overview - Giant Offshore Oil Services Co., Ltd. was established in Shenzhen in 1995 and listed on the Hong Kong Stock Exchange in 2006, focusing on global energy development and utilization [3] - The company operates in multiple locations including Zhuhai, Penglai, Shenzhen, Dalian, and Tianjin, with a production area of over 1.5 million square meters and more than 3,000 employees [3] - Main business activities include marine engineering, offshore and onshore modules, oil platform and ship engineering, petrochemicals, oil and gas processing, new energy equipment, and mechanical product construction, maintenance, and technical support [3] Financial Performance - As of December 31, 2024, the company reported total revenue of 2.079 billion yuan, a year-on-year decrease of 19.78% [1] - The net profit attributable to shareholders was 185 million yuan, down 27.42% year-on-year [1] - The gross profit margin stood at 27.28%, and the debt-to-asset ratio was 30.43% [1] Market Position and Valuation - The company has a price-to-earnings (P/E) ratio of 6.72, ranking 9th in the oil and gas industry, which has an average P/E ratio of -3.47 and a median of 4.1 [2] - Other companies in the industry have varying P/E ratios, with some significantly lower than that of Giant Offshore Oil Services [2] Industry Recognition and Achievements - The company has successfully delivered major projects such as the GCGV olefin facility module, Petrobras FPSO module, and offshore wind power jacket structures in China and Europe [4] - It has received multiple awards for project delivery and safety, including the Best Module Construction Site Award for the GCGV project and the Outstanding Safety Quality Delivery Award from Chevron [4]

Core Viewpoint - The company, Giant Tide Offshore Oil Services, reported a decline in revenue and net profit for the fiscal year 2024, while showing significant improvement in cash flow from operating activities [2]. Financial Performance - The total revenue for 2024 was 2.106 billion yuan, a year-on-year decrease of 19.69% [2]. - The net profit attributable to shareholders was 185 million yuan, down 27.42% compared to the previous year [2]. - The net cash flow from operating activities was 477 million yuan, reflecting a year-on-year increase of 66.25% [2]. - The basic earnings per share were 0.0904 yuan, and the weighted average return on equity was 8.75%, a decrease of 4.73 percentage points from the previous year [2][23]. Valuation Metrics - As of April 30, the price-to-earnings ratio (TTM) was approximately 6.93 times, the price-to-book ratio (TTM) was about 0.59 times, and the price-to-sales ratio (TTM) was around 0.62 times [2]. Revenue Composition - The revenue composition for 2024 included segments from oil and gas industry equipment engineering and comprehensive services, as well as new energy and refining industry equipment engineering and comprehensive services [13][18]. Cash Flow and Financial Position - The net cash flow from financing activities was -374 million yuan, a decrease of 210 million yuan year-on-year, while the net cash flow from investing activities was -79.01 million yuan [27]. - As of the end of 2024, accounts receivable and notes receivable decreased by 74.57%, while cash and cash equivalents increased by 5.72% [37]. Liabilities and Ratios - The company saw a significant reduction in contract liabilities by 90.61% and long-term borrowings by 86.59% [40]. - The current ratio was 2.05, and the quick ratio was 1.94 as of the end of 2024 [43].

Financial Performance - In 2024, the company reported a gross profit of RMB 254,989,000, a decrease from RMB 185,066,000 in 2023 and RMB 208,234,000 in 2022[9]. - The company recorded a revenue of approximately RMB 2,079,022,000 in 2024, a decrease of about 19.78% or approximately RMB 512,751,000 compared to 2023[23]. - The company's gross profit for 2024 was approximately RMB 567,158,000, a decrease of about 13.46% or approximately RMB 88,232,000 compared to 2023, with an overall gross margin increase from 25.29% to approximately 27.28%[27]. - Administrative and other operating expenses increased by approximately 34.78% or about RMB 94,159,000, totaling approximately RMB 364,903,000 in 2024[31]. - The company reported a profit attributable to owners of approximately RMB 185,066,000 in 2024, down from RMB 254,989,000 in 2023, with basic and diluted earnings per share of approximately RMB 9.04 and RMB 8.96 respectively[33]. - The company reported a significant goodwill allocation of RMB 52,444,000 related to its offshore oil and gas equipment manufacturing business[165]. - The company’s total equity as of December 31, 2024, was RMB 2,175,401 thousand, an increase from RMB 2,011,739 thousand in 2023, representing a growth of approximately 8.1%[188]. Dividends and Share Capital - The board of directors did not recommend a final dividend for the year ending December 31, 2024[11]. - The company does not have a preset dividend payout ratio, and the board will consider various factors, including financial performance and cash flow, when recommending dividends[67]. - The company's authorized share capital is HKD 40,000,000, comprising 4,000,000,000 ordinary shares[71]. - As of December 31, 2024, the company's share capital consists of 2,131,598,389 ordinary shares, an increase from 1,981,598,389 ordinary shares in 2023[72]. Market and Strategic Developments - The company faced challenges due to geopolitical conflicts and was listed on the OFAC's Specially Designated Nationals list, impacting client relationships and potential orders[15]. - In the second half of 2024, the company established a detailed design department to enhance its module business capabilities and drive strategic transformation[17]. - The company plans to construct a new terminal in Zhuhai to meet the capacity demands for future large projects and wind power construction projects[20]. - The company has established a dedicated market business team to strategically deploy business opportunities in various regional markets, focusing on offshore wind power equipment manufacturing as a key development direction[23]. - The company anticipates significant market opportunities in the offshore wind power sector in the coming years, driven by technological innovation and policy support[19]. Operational Efficiency and Safety - The company emphasized cost reduction and efficiency improvements, promoting domestic material substitution and optimizing operational processes[18]. - The company achieved a zero incident rate for work-related injuries over the past ten years, accumulating 133 million safe working hours[18]. - The company maintained a strong focus on safety management, integrating safety with production management, and achieved high customer satisfaction[18]. Financial Position and Liquidity - As of December 31, 2024, the company had cash and cash equivalents of approximately RMB 785,161,000, an increase from RMB 752,805,000 in 2023[34]. - The company has approximately RMB 200,000,000 in available bank credit as of December 31, 2024, compared to RMB 104,290,000 in 2023[34]. - The company's capital debt ratio decreased to 4.87% in 2024 from 16.56% in 2023, primarily due to a reduction in bank loans and lease liabilities, along with an increase in total equity[43]. - Current liabilities decreased to RMB 858,794 thousand in 2024 from RMB 1,781,239 thousand in 2023, indicating improved liquidity[184]. - Non-current liabilities decreased significantly to RMB 92,921 thousand in 2024 from RMB 292,021 thousand in 2023[186]. Employee and Corporate Governance - The total number of employees as of December 31, 2024, was 2,181, down from 2,281 in 2023, indicating a reduction of approximately 4.39%[44]. - The company emphasizes the importance of employee welfare, offering reasonable compensation and benefits, and has established various training programs to enhance employee skills[56]. - The company has established a Diversity Policy for the Board, focusing on various criteria including gender, age, and professional experience to ensure a balanced composition[153]. - The company has adopted the Corporate Governance Code to enhance transparency and protect shareholder rights[131]. - The board confirmed that all independent non-executive directors are independent according to Listing Rule 3.13[134]. Environmental and Social Responsibility - The company has implemented a consistent environmental policy and waste management regulations to control its operational environmental impact[60]. - The company has achieved OHSAS18001:2007 certification for its occupational health and safety management system, ensuring a safe working environment[61]. - The board of directors is responsible for overseeing the company's policies and performance related to environmental, social, and governance issues[60]. Audit and Compliance - The auditor, Deloitte (Hong Kong) Limited, was reappointed at the last annual general meeting[128]. - The Audit Committee held three meetings during the reporting year to review financial data, discuss risk management, and evaluate the effectiveness of internal controls[148]. - The company has established a comprehensive internal management system to manage risks and ensure compliance, with financial departments monitoring financial risks[143]. Share Options and Rewards - The company adopted a share reward plan on March 18, 2024, which will be effective for ten years and will not involve the issuance of new shares[97]. - A total of 66,000,000 shares were granted as rewards on May 21, 2024, representing 3.10% of the company's total issued shares as of December 31, 2024[101]. - The 2024 Share Option Scheme aims to reward and retain participants, aligning their interests with those of shareholders[83].

Financial Performance - Revenue decreased by 19.78% to RMB 2,079,022,000 compared to RMB 2,591,773,000 in 2023[6] - Gross profit decreased by 13.46% to RMB 567,158,000 from RMB 655,390,000 in the previous year[6] - Profit attributable to owners decreased by 27.42% to RMB 185,066,000, down from RMB 254,989,000 in 2023[6] - Basic earnings per share and diluted earnings per share were RMB 0.0904 and RMB 0.0896 respectively, compared to RMB 0.1287 in 2023[6] - Total comprehensive income for the year was RMB 190,594,000, down from RMB 260,986,000 in 2023[8] - Total revenue for the year ending December 31, 2024, was RMB 2,079,022 thousand, a decrease from RMB 2,591,773 thousand in 2023, representing a decline of approximately 19.7%[26] - Segment profit for the oil and gas equipment engineering and integrated services was RMB 450,711 thousand in 2024, down from RMB 532,312 thousand in 2023, reflecting a decrease of about 15.3%[26] - The company's annual profit attributable to owners decreased to RMB 185,066,000 in 2024 from RMB 254,989,000 in 2023, reflecting a decline of approximately 27%[40] Assets and Liabilities - Non-current assets increased slightly to RMB 1,364,899,000 from RMB 1,363,355,000 in 2023[9] - Current assets decreased significantly to RMB 1,762,217,000 from RMB 2,721,644,000 in 2023[9] - Current liabilities decreased to RMB 858,794,000 from RMB 1,781,239,000 in 2023[10] - Total equity increased to RMB 2,175,401,000 from RMB 2,011,739,000 in 2023[10] - The total assets for the reportable segments decreased to RMB 2,210,471 thousand in 2024 from RMB 3,159,068 thousand in 2023, a reduction of approximately 30%[27] - The total liabilities for the reportable segments also decreased significantly to RMB 811,080 thousand in 2024 from RMB 1,654,273 thousand in 2023, indicating a decline of about 50.9%[27] Revenue Sources - Revenue from construction contracts for 2024 was RMB 1,858,561, a decrease of 21.7% from RMB 2,375,682 in 2023[19] - Revenue from major customer C in the oil and gas sector was RMB 1,078,543 thousand in 2024, down from RMB 1,330,579 thousand in 2023, a decrease of approximately 18.9%[30] - Revenue from the China market (excluding Hong Kong) increased to RMB 558,436 thousand in 2024 from RMB 289,642 thousand in 2023, representing a growth of about 92.9%[28] - The revenue from the oil and gas equipment engineering and integrated services business decreased by approximately 22.47% or about RMB 534,311,000, while the revenue from the new energy and refining equipment engineering and integrated services business increased by approximately 16.10% or about RMB 32,673,000[58] Expenses and Costs - The company reported a bank deposit interest income of RMB 14,673 for 2024, an increase from RMB 13,409 in 2023[23] - The company incurred a financial expense of RMB 10,986 thousand in 2024, a decrease from RMB 20,396 thousand in 2023, reflecting a reduction of approximately 46.1%[27] - The income tax expense for 2024 was RMB 34,986,000, a decrease of 73% compared to RMB 130,587,000 in 2023[36] - Research and development expenses were RMB 78,262,000 in 2024, down from RMB 99,557,000 in 2023, indicating a focus on cost management[38] - Administrative and other operating expenses increased by approximately 34.78% to about RMB 364,903,000 in 2024, with administrative expenses rising by RMB 115,300,000 due to increased employee compensation[63] Dividends and Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the year ending December 31, 2024[6] - The company did not declare a final dividend for the year ending December 31, 2024, consistent with the previous year[39] Compliance and Governance - The company has complied with the Corporate Governance Code, except for a deviation regarding monthly financial updates provided only to specific board members[79] - The board has adopted the standard code for securities trading, confirming compliance by all directors during the reporting year[80] - No purchase, sale, or repurchase of the company's listed securities occurred during the fiscal year ending December 31, 2024[81] - The auditor, Crowe (HK) CPA Limited, has agreed that the financial statements for the year ending December 31, 2024, are consistent with the reported figures[82] Future Outlook and Strategy - The company plans to continue focusing on the oil and gas and new energy sectors for future growth and expansion strategies[26] - The company is actively promoting business transformation and upgrading, focusing on offshore wind power equipment construction as a key development direction for the future[56] - The company plans to initiate the construction of a new dock in Zhuhai to meet the production capacity needs for potential large projects and wind power business construction[57] Operational Efficiency - The company is enhancing its project management and cost control to improve operational efficiency, resulting in higher gross margins for certain projects[60] - The company established a detailed design department in the second half of 2024 to enhance its modular business capabilities and drive strategic transformation towards higher value-added services[54] - The company maintained a zero accident rate for 10 years, achieving a cumulative total of 133 million safe working hours[55] Accounting Standards and Changes - The company anticipates adopting all newly issued accounting standards effective from January 1, 2027, which may significantly impact its accounting policies[17] - The company is evaluating the impact of the new Hong Kong Financial Reporting Standards on its consolidated income statement and cash flow statement[17] - The company expects to fully adopt the new accounting standards in the first accounting period starting on or after their effective dates[17]

Financial Performance - Revenue increased by 55.95% year-on-year to RMB 1,284,256,000[1] - Gross profit rose by 89.11% year-on-year to RMB 367,501,000[1] - Profit attributable to owners increased by 157.55% year-on-year to RMB 177,309,000[1] - Basic and diluted earnings per share were RMB 8.675 and RMB 8.673 respectively[1] - Operating profit for the period was RMB 215,068,000, compared to RMB 104,510,000 in the previous year[2] - The company reported a pre-tax consolidated profit of RMB 207,759,000 for the six months ended June 30, 2024, compared to RMB 93,515,000 for the same period in 2023[24] - The company reported a net profit attributable to shareholders of approximately RMB 177,309,000 for the first half of 2024, with basic and diluted earnings per share of RMB 8.675 and RMB 8.673, respectively[60] Dividends - The board proposed an interim dividend of HKD 0.03 per share for the six months ended June 30, 2024[1] - The company has proposed an interim dividend of HKD 0.03 per share for the six months ended June 30, 2024, compared to no dividend for the same period in 2023[32] - The board proposed an interim dividend of HKD 0.03 per share for the six months ending June 30, 2024, to be paid on October 16, 2024[72] Assets and Liabilities - Total assets decreased from RMB 2,721,644,000 as of December 31, 2023, to RMB 2,248,914,000 as of June 30, 2024[4] - Net assets increased to RMB 2,207,451,000 from RMB 2,011,739,000[6] - Current liabilities decreased from RMB 1,781,239,000 to RMB 1,311,325,000[5] - The company’s total liabilities as of June 30, 2024, were RMB 1,438,735 thousand, compared to RMB 1,379,936 thousand as of January 1, 2024, indicating an increase of approximately 4.2%[9] - The total equity attributable to owners of the company as of June 30, 2024, was RMB 825,354 thousand, up from RMB 611,981 thousand as of December 31, 2023, marking an increase of around 35%[9] Cash Flow - For the six months ended June 30, 2024, net cash generated from operating activities was RMB 450,601 thousand, a significant increase from RMB 177,996 thousand in the same period of 2023, representing a growth of approximately 153%[10] - The total cash and cash equivalents at the end of June 30, 2024, amounted to RMB 951,065 thousand, compared to RMB 729,701 thousand at the end of June 30, 2023, reflecting an increase of about 30%[11] - The company reported a net increase in cash and cash equivalents of RMB 195,744 thousand for the six months ended June 30, 2024, compared to RMB 107,806 thousand for the same period in 2023, indicating a growth of approximately 81%[11] - The net cash used in investing activities for the six months ended June 30, 2024, was RMB (10,072) thousand, compared to RMB (80,496) thousand in the same period of 2023, indicating a reduction in cash outflow by approximately 87%[10] - The company’s financing activities resulted in a net cash outflow of RMB 174,361 thousand for the six months ended June 30, 2024, compared to RMB 41,402 thousand in the same period of 2023, reflecting a significant increase in cash used for financing[10] Segment Performance - The oil and gas segment reported external revenue of RMB 1,281,731,000 and segment profit of RMB 363,509,000 for the six months ended June 30, 2024, compared to RMB 677,016,000 and RMB 111,536,000 respectively for the same period in 2023[23] - The new energy and refining segment generated external revenue of RMB 2,226,000 with a segment profit of RMB 4,428,000 for the six months ended June 30, 2024, compared to RMB 141,016,000 and RMB 83,062,000 for the same period in 2023[23] Operational Highlights - The company continues to focus on expanding its market presence and enhancing its service offerings in both existing and new sectors[22] - The company is actively pursuing international marine engineering market opportunities and maintaining close relationships with long-term clients in the oil and gas service sector[50] - The company has implemented measures to enhance risk management in operations amid macroeconomic developments and uncertainties[50] - The company continues to optimize project management and strengthen production capabilities, focusing on digital systems and smart equipment upgrades to enhance operational efficiency[50] Employee and Governance - The total number of employees increased to 2,310 as of June 30, 2024, compared to 2,281 as of December 31, 2023, with management and technical personnel rising to 1,063 from 1,026[70] - The company is committed to employee development, providing ongoing training and encouraging continuous education[70] - The company has established an audit committee consisting of four independent non-executive directors to review financial reporting and risk management systems[101] - The audit committee reviewed the unaudited interim financial information for the six months ending June 30, 2024, and found it compliant with applicable accounting standards and regulations[101] Share Options and Capital Management - The company has adopted a new share incentive plan, purchasing 163,700,000 shares at prices ranging from HKD 0.51 to HKD 0.95, with a total cost of approximately HKD 107,882,000 (RMB 98,032,000)[45] - The updated 2024 Share Option Scheme permits the issuance of up to 213,159,838 shares, which is 10% of the issued shares as of the 2024 AGM[80] - The total number of options granted to directors and employees from various plans amounts to 119,200,000, representing 5.59% of the company's total share capital[89] - The company believes that the share option plan effectively incentivizes eligible participants without the need for performance targets[91] - The capital structure is actively managed, with adjustments made to dividends, share issuance, and debt levels in response to economic conditions and asset risk characteristics[68] Risks and Uncertainties - The company faces potential business uncertainties due to its subsidiary being listed on the OFAC Specially Designated Nationals List, which may impact future orders and contract settlements[50] - The company is cautiously assessing the impacts of global political and economic tensions on its business development and is seeking solutions to navigate these challenges[71]

[Performance Summary](index=1&type=section&id=Financial%20Highlights) [Key Financial Indicators](index=1&type=section&id=Financial%20Highlights-Key%20Financial%20Indicators) In the first half of 2024, the company achieved strong performance growth, with revenue increasing by 55.95%, gross profit by 89.11%, and profit attributable to owners of the company significantly increasing by 157.55%; the Board recommended an interim dividend of HKD 0.03 per share Key Financial Indicators | Indicator | H1 2024 | YoY Change | | :--- | :--- | :--- | | Revenue | RMB 1,284,256,000 | +55.95% | | Gross Profit | RMB 367,501,000 | +89.11% | | Profit Attributable to Owners of the Company | RMB 177,309,000 | +157.55% | | Basic Earnings Per Share | RMB 8.675 cents | +149.71% | | Proposed Interim Dividend | HKD 0.03 per share | None in Prior Period | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) During the reporting period, the company achieved significant growth in both revenue and gross profit, leading to more than double year-on-year increases in operating profit and profit attributable to owners of the company, reaching RMB 215 million and RMB 177 million respectively Condensed Consolidated Statement of Profit or Loss | Item (RMB Thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 1,284,256 | 823,527 | | Gross Profit | 367,501 | 194,337 | | Operating Profit | 215,068 | 104,510 | | Profit for the Period Attributable to Owners of the Company | 177,309 | 68,844 | | Basic Earnings Per Share (RMB cents) | 8.675 | 3.474 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the company's total assets were RMB 3.61 billion, with net assets increasing to RMB 2.21 billion; net current assets remained stable, non-current liabilities significantly decreased, indicating a robust overall financial position Condensed Consolidated Statement of Financial Position | Item (RMB Thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-current Assets | 1,360,761 | 1,363,355 | | Current Assets | 2,248,914 | 2,721,644 | | **Total Assets** | **3,609,675** | **4,084,999** | | Current Liabilities | 1,311,325 | 1,781,239 | | Non-current Liabilities | 90,899 | 292,021 | | **Total Liabilities** | **1,402,224** | **2,073,260** | | **Net Assets (Total Equity)** | **2,207,451** | **2,011,739** | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [Segment Information](index=6&type=section&id=3.%20Segment%20Information) The Group's business is primarily divided into Oil and Gas and New Energy and Refining segments; during the reporting period, the Oil and Gas segment was the absolute core of revenue and profit, with revenue reaching RMB 1.28 billion, growing nearly 90% year-on-year, while New Energy and Refining segment revenue significantly contracted Segment Information | Segment (RMB Thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Oil and Gas** | | | | Revenue | 1,281,731 | 677,016 | | Segment Profit | 363,509 | 111,536 | | **New Energy and Refining** | | | | Revenue | 2,226 | 141,016 | | Segment Profit | 4,428 | 83,062 | [Revenue Analysis](index=8&type=section&id=4.%20Revenue) The vast majority (approximately 98%) of the Group's total revenue is derived from goods and services transferred over time, primarily contributed by the Oil and Gas segment Revenue Recognition Timing | Revenue Recognition Timing (RMB Thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Transferred at a Point in Time | 21,987 | 23,714 | | Transferred Over Time | 1,262,269 | 799,813 | | **Total** | **1,284,256** | **823,527** | [Share Capital and Share Award Scheme](index=13&type=section&id=15.%20Share%20Capital) In March 2024, the company completed a placement of 150 million new shares, raising net proceeds of approximately HKD 61.51 million for the construction of its Zhuhai facility and general working capital; concurrently, the company adopted a new share award scheme and granted 66 million award shares - On March 7, 2024, the company completed a placement of **150 million shares** at **HKD 0.42 per share**, raising net proceeds of **approximately HKD 61.51 million** for the construction of its Zhuhai facility and general working capital[30](index=30&type=chunk) - The company adopted a new share award scheme, granting **66 million award shares** as of June 30, 2024, and recognized related share award expenses of **approximately RMB 44.93 million** in administrative expenses[31](index=31&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Risks](index=15&type=section&id=1.%20Review) During the reporting period, the Group achieved strong performance by optimizing project management and cost control; however, a significant risk emerged as its wholly-owned subsidiary, Penglai Juta, was added to the US SDN list, creating uncertainty for potential orders and contract settlements, which may materially adversely affect the Group's overall business - The Group continued to optimize project management, control costs, and enhance design capabilities in the first half of the year, driving its business towards higher value-added transformation[33](index=33&type=chunk) - Core risk: Wholly-owned subsidiary Penglai Juta was added to the Specially Designated Nationals (SDN) list by the US Department of the Treasury's Office of Foreign Assets Control (OFAC), which has severely impacted some customer cooperation intentions and created uncertainty for potential orders and contract settlements[33](index=33&type=chunk) [Financial Performance Analysis](index=15&type=section&id=Financial%20Performance%20Analysis) The first half of 2024 saw strong financial performance, with total revenue growing **55.95%** to **RMB 1.28 billion**, primarily driven by the Oil and Gas business; gross margin improved from **23.6%** to **28.62%**, leading to an **89.11%** increase in gross profit, and ultimately, profit attributable to owners of the company surged **157.55%** to **RMB 177 million** [Revenue](index=15&type=section&id=Revenue) Revenue in the first half of 2024 increased by **55.95%** to **RMB 1.28 billion**, primarily driven by the Oil and Gas segment, which saw an **89.32%** revenue growth and completely dominated the Group's revenue composition, while New Energy and Refining business revenue significantly contracted by **98.42%** Business Segment Revenue | Business Segment (RMB Thousands) | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Oil and Gas | 1,281,731 | 677,016 | +89.32% | | New Energy and Refining | 2,226 | 141,016 | -98.42% | | Others | 299 | 5,495 | -94.56% | | **Total** | **1,284,256** | **823,527** | **+55.95%** | [Gross Profit](index=16&type=section&id=Gross%20Profit) Total gross profit increased by **89.11%** to **RMB 368 million**, with the overall gross margin significantly improving from **23.60%** in the prior period to **28.62%**, primarily due to changes in business mix, optimized project management, and stringent cost control - Total gross profit was approximately **RMB 368 million**, an **89.11%** year-on-year increase[38](index=38&type=chunk) - Overall gross margin increased from **23.60%** in the prior period to **28.62%**, mainly due to changes in business mix and higher gross profit recorded on certain projects[38](index=38&type=chunk) [Expenses](index=16&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) Total administrative and other operating expenses increased by **60.44%** year-on-year, primarily due to a significant increase in staff remuneration and new share option expenses; finance costs decreased year-on-year due to reduced bank borrowings - Total administrative and other operating expenses amounted to approximately **RMB 168 million**, an increase of **60.44%** year-on-year, mainly due to increased staff remuneration and share option expenses[41](index=41&type=chunk) - Finance costs were approximately **RMB 7.31 million**, a year-on-year decrease, primarily due to reduced interest expenses on bank borrowings[42](index=42&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) As of the period end, the Group held cash and bank balances of approximately **RMB 951 million**, an increase from the beginning of the year; operating activities generated a strong net cash inflow of **RMB 451 million** during the reporting period Cash and Bank Balances | Item (RMB Thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Bank Balances | 951,065 | 752,805 | | Available Bank Credit Facilities | 61,010 | 104,290 | - Net cash inflow from operating activities in the first half of 2024 was approximately **RMB 451 million**[44](index=44&type=chunk) [Capital Structure and Management](index=17&type=section&id=Capital%20Structure) The Group's capital structure further optimized, with net assets increasing to **RMB 2.21 billion**; benefiting from profit growth and reduced debt, the gearing ratio significantly decreased from **16.56%** at the beginning of the year to **9.07%** Capital Structure | Item (RMB Thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Bank Borrowings and Lease Liabilities | 200,129 | 333,125 | | Total Equity | 2,207,451 | 2,011,739 | | **Gearing Ratio** | **9.07%** | **16.56%** | [Business Outlook](index=18&type=section&id=2.%20Outlook) Looking ahead to the second half of the year, the Group will continue to focus on market expansion, developing businesses such as marine engineering and new energy equipment; concurrently, the company recognizes the complex and volatile global economic and political landscape and will prudently assess various impacts to steadily advance its work - The core work for the second half of the year is market expansion, continuing to advance marine engineering, new energy equipment, and technical support services[51](index=51&type=chunk) - The company is aware of external challenges such as a weak global economic outlook and escalating geopolitical conflicts, and will prudently assess their impact and actively respond[51](index=51&type=chunk) [Directors' Report and Corporate Governance](index=19&type=section&id=Directors'%20Report%20and%20Corporate%20Governance) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board recommended an interim dividend of **HKD 0.03 per share**, payable on October 16, 2024 - The Board recommended an interim dividend of **HKD 0.03 per share** for the six months ended June 30, 2024[55](index=55&type=chunk) - The record date for the dividend is September 24, 2024, with payment on October 16, 2024[55](index=55&type=chunk) [Corporate Governance and Compliance](index=19&type=section&id=Corporate%20Governance) The company has adopted and complied with most provisions of the Corporate Governance Code, with one deviation: monthly financial updates are not provided to all Board members, which the company believes enhances efficiency; the Audit Committee has reviewed the interim financial information - The company complies with the Corporate Governance Code, with one deviation: monthly financial updates are not provided to all directors, which the company states is for efficiency improvement[58](index=58&type=chunk) - The Audit Committee, comprising four independent non-executive directors, has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2024[60](index=60&type=chunk)

Financial Performance - The company reported a revenue of RMB 3,981,612,000 for the year ending December 31, 2023, reflecting a significant increase compared to previous periods[8] - Gross profit for the same period was RMB 800,000,000, indicating a strong operational performance[8] - The net profit for the year was RMB 300,000,000, showcasing the company's ability to maintain profitability despite market challenges[8] - Basic and diluted earnings per share were both RMB 0.1287, demonstrating consistent earnings performance[14] - The company recorded a revenue increase of approximately 48.02% year-on-year, amounting to about RMB 2,591,773,000 in 2023, compared to RMB 1,750,927,000 in 2022[23] - The revenue from the oil and gas equipment engineering and integrated services segment increased by approximately 51.44%, reaching RMB 2,377,445,000, accounting for 91% of total revenue[25] - The gross profit for 2023 was approximately RMB 655,390,000, a significant increase of about 1,441% from RMB 42,530,000 in 2022, resulting in a gross margin rise from 2.43% to 25.29%[29] - The company reported a net profit attributable to shareholders of RMB 254,989,000 in 2023, a significant recovery from a loss of RMB 208,234,000 in 2022, resulting in earnings per share of RMB 0.1287[31] Dividend Policy - The company did not recommend a final dividend for the year ending December 31, 2023, reflecting a focus on reinvestment[8] - The company does not have a preset dividend payout ratio, and the board will consider various factors, including financial performance and cash flow, when recommending dividends[79] - The company has approximately RMB 1,379,936,000 in share premium reserves, available for distribution to shareholders after deducting cumulative losses of about RMB 36,170,000[78] Operational Highlights - The company successfully operated 15 projects in 2023, overcoming various challenges such as design modifications and adverse weather conditions[16] - The company achieved new records in modular construction delivery, receiving high praise from key clients for project management capabilities[16] - The company is committed to enhancing operational management and cost efficiency to navigate the uncertain economic landscape[16] - The company is focused on expanding its market presence and strengthening project operations to secure future orders[16] - The company established a detailed design department to enhance its modular business capabilities and drive strategic transformation towards higher value-added services[18] - The company is focusing on technological innovation and has achieved breakthroughs in key component design and supply, which reduces risks and improves project management[17] - The company plans to expand its construction capacity by renovating the Penglai West plant area to address the severe shortage of assembly space[17] - The company aims to strengthen its market development efforts, particularly in the offshore wind power sector, which has significant growth potential[19] - The company is actively pursuing business transformation and upgrades through collaborations and acquisitions, while enhancing its digital systems and smart equipment applications[19] Financial Position - As of December 31, 2023, the company's cash and cash equivalents amounted to RMB 752,805,000, an increase from RMB 610,477,000 in 2022, with net cash inflow from operating activities of RMB 287,139,000[32] - The company's total equity as of December 31, 2023, was approximately RMB 2,011,739,000, up from RMB 1,747,247,000 in 2022, reflecting a strengthened capital structure[34] - The capital debt ratio decreased to 16.56% in 2023 from 28.37% in 2022, primarily due to a reduction in bank loans and lease liabilities[45] - The company has no significant contingent liabilities as of December 31, 2023, ensuring a stable financial position[37] Employee and Safety Management - The company has maintained a zero incident rate for work-related injuries, achieving 11.14 million safe working hours throughout the year[17] - The total number of employees decreased to 2,281 as of December 31, 2023, from 2,739 in the previous year, indicating a restructuring in workforce[46] - The company emphasizes the importance of employee welfare, offering reasonable compensation and benefits, and has established various training programs to enhance employee skills[61] Market and Customer Relations - The company values long-term relationships with clients, including energy companies and engineering contractors, and actively seeks to expand its customer base[61] - The company has established a customer feedback mechanism to continuously improve product quality and service delivery[62] - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the previous year[56] Environmental and Safety Standards - The company has implemented a comprehensive environmental management system in accordance with ISO 14001 standards to manage operational emissions and environmental impacts[68] - The company is committed to health and safety, having established an OHSAS 18001:2007 certified occupational health and safety management system[73] - The company conducts regular safety inspections and risk assessments to ensure compliance with safety management system requirements[75] - The board of directors oversees the company's environmental, social, and governance policies, emphasizing sustainable development[72] Research and Development - Research and development investment has increased by 25%, focusing on sustainable energy solutions[56] - New product launches are anticipated, including a next-generation offshore drilling technology expected to enhance operational efficiency by 30%[56] Financial Risk Management - The group has recognized expected credit losses for trade receivables and contract assets based on historical loss experience, adjusting for specific debtor factors and overall economic conditions[168] - The group has made significant estimates regarding deferred tax assets related to temporary differences, which may impact future tax expenses[158] - The company has a credit risk management strategy that includes assessing the creditworthiness of counterparties and monitoring economic conditions[193] Share Options and Capital Management - The company's share option plan allows for the issuance of up to 80,035,427 shares, representing 10% of the issued shares as of the 2016 AGM date (800,354,278 shares)[91] - As of December 31, 2023, there are 84,000,000 unexercised options remaining from the total of 98,000,000 options granted on June 10, 2021, representing 4.24% of the total share capital[101] - The estimated fair value of options granted on November 9, 2023, is approximately HKD 27,818,000 (equivalent to RMB 25,042,000) based on a binomial option pricing model[108]

Revenue and Profitability - Revenue increased by 48.02% year-on-year to RMB 2,591,773,000[2] - Gross profit surged by 1,441.01% year-on-year to RMB 655,390,000[2] - The profit attributable to owners for the year ended December 31, 2023, was RMB 254,989,000, compared to a loss of RMB 208,234,000 for the previous year[2] - Basic earnings per share were RMB 12.87[2] - The total comprehensive income for the year was RMB 260,986,000, compared to a loss of RMB 180,784,000 in the previous year[5] - Total revenue for the year ended December 31, 2023, was RMB 2,591,773,000, an increase from RMB 1,750,927,000 in 2022, representing a growth of approximately 48.0%[48] - Reported segment profit for the year was RMB 655,390,000, significantly up from RMB 42,530,000 in the previous year, indicating a substantial improvement in profitability[49] - The company reported a pre-tax profit of RMB 385,576,000 for the year, a significant turnaround from a loss of RMB 197,844,000 in 2022[49] - The company reported a profit of RMB 254,989,000 for 2023, compared to a loss of RMB 208,234,000 in 2022, indicating a significant turnaround in performance[57] Revenue Sources - Construction contract revenue for 2023 was RMB 2,375,682,000, up from RMB 1,544,552,000 in 2022[27] - Revenue from product sales was RMB 24,518,000 in 2023, down from RMB 41,912,000 in 2022[27] - Revenue from technical support services increased to RMB 191,573,000 in 2023 from RMB 164,463,000 in 2022[27] - The reported revenue from the UAE market was RMB 1,343,194,000 in 2023, a significant increase from RMB 4,130,000 in 2022, showcasing successful market expansion[50] - Revenue from the oil and gas equipment engineering and integrated services business increased by approximately 51.44% or about RMB 807,596,000 compared to 2022, accounting for 91% of total revenue[140] Assets and Liabilities - Total equity as of December 31, 2023, was RMB 2,011,739,000, compared to RMB 1,747,247,000 in 2022[20] - The total assets of the company increased to RMB 4,084,999,000 in 2023 from RMB 3,179,462,000 in 2022, reflecting a growth of about 28.4%[49] - The total liabilities rose to RMB 2,073,260,000 in 2023, compared to RMB 1,432,215,000 in 2022, marking an increase of approximately 45.0%[49] - The total assets less current liabilities increased to RMB 2,303,760,000 in 2023, compared to RMB 2,089,508,000 in 2022, an increase of 10.3%[180] - Non-current assets decreased to RMB 1,363,355,000 in 2023 from RMB 1,557,904,000 in 2022, a decline of 12.4%[180] Cash Flow and Financial Management - As of December 31, 2023, the company's cash and cash equivalents amounted to approximately RMB 752,805,000, an increase from RMB 610,477,000 in 2022[145] - Total bank loans amounted to RMB 309,300,000 in 2023, down from RMB 464,800,000 in 2022, reflecting a reduction of 33.4%[164] - Financial expenses for 2023 totaled approximately RMB 20,396,000, mainly comprising bank interest expenses of about RMB 18,601,000[121] - Financial expenses decreased to RMB 20,396,000 from RMB 28,645,000, indicating improved financial management[191] Operational Performance - The company’s sales and service costs for 2023 were approximately RMB 1,936,383,000, an increase of about 13.35% compared to RMB 1,708,397,000 in 2022[140] - The group completed 15 projects in 2023, overcoming challenges such as design modifications and material delays, achieving new modular construction delivery records[85] - The group has focused on cost reduction and efficiency improvement, increasing supplier bidding and expanding procurement channels to lower purchasing costs[87] - The group is closely monitoring macroeconomic developments and potential risks, with some tracked projects possibly delayed, which may impact workload in the first half of 2024[88] Research and Development - Research and development expenses increased to RMB 99,557,000 in 2023 from RMB 78,469,000 in 2022, reflecting a focus on innovation[58] - The group has made advancements in technology and process innovation, achieving breakthroughs in the independent design and supply of key components[86] - The group plans to actively promote business transformation and upgrades, focusing on technological innovation and process research and development, including digital system upgrades[114] Employee and Safety Management - The total number of employees decreased to 2,281 as of December 31, 2023, from 2,739 in the previous year, a reduction of 16.7%[164] - The group achieved 11.14 million safe working hours in 2023, maintaining zero incidents of work-related injuries or lost workdays[133] - The company aims to strengthen its safety management culture and reduce safety risks through various initiatives[137] Dividends and Shareholder Returns - The company did not recommend the payment of a final dividend for the year ended December 31, 2023[2] - The company did not recommend a final dividend for the year ending December 31, 2023, consistent with the previous year[60] - The company aims to optimize its capital structure to maximize shareholder returns while maintaining operational capability[125] Miscellaneous - The company did not generate any taxable profits in Hong Kong for the years ended December 31, 2023, and 2022, resulting in no provision for Hong Kong profits tax[54] - The company expects that the adoption of new accounting standards will not significantly impact the consolidated income and financial statements[198] - The group is not within the scope of the OECD Pillar Two rules, thus the revisions will not affect the consolidated financial statements[199]

Financial Performance - Revenue increased by 48.02% to RMB 2,591,773,000 compared to the previous year[16] - Gross profit surged by 1,441.01% to RMB 655,390,000[16] - Net profit attributable to owners for the year ended December 31, 2023, was RMB 254,989,000, recovering from a loss of RMB 208,234,000 in the previous year[11] - Basic earnings per share for the year was RMB 12.87, compared to a loss of RMB 11.80 per share in the previous year[18] - Operating profit for the year was RMB 405,972,000, a significant recovery from an operating loss of RMB 169,199,000 in the previous year[18] - The company's profit for 2023 was RMB 254,989,000, compared to a loss of RMB 208,234,000 in 2022, indicating a significant turnaround[76] - The net profit before tax for the year was RMB 385,576,000, compared to a loss of RMB 197,844,000 in the previous year[66] - The company reported a total comprehensive income of RMB 260,986,000 for the year, compared to a loss of RMB 180,784,000 in the previous year[128] Revenue and Growth - The company's total revenue for 2023 reached RMB 2,591,773 thousand, a significant increase from RMB 1,750,927 thousand in 2022, representing a growth of approximately 48.1%[56] - The construction contract revenue for 2023 was RMB 2,375,682 thousand, compared to RMB 1,544,552 thousand in 2022, indicating a growth of about 53.7%[56] - The total revenue for 2023 reached RMB 2,591,773 thousand, an increase from RMB 1,750,927 thousand in 2022, representing a growth of approximately 48.0%[68] - Revenue from the oil and gas equipment engineering and integrated services business increased by approximately 51.44% or about RMB 807,596,000, while revenue from the new energy and refining equipment engineering and integrated services business increased by approximately 21.40% or about RMB 35,774,000[166] Assets and Liabilities - Total assets increased to RMB 2,721,644,000 from RMB 1,621,558,000[20] - The total liabilities increased to RMB 2,073,260 thousand in 2023 from RMB 1,432,215 thousand in 2022, reflecting a rise of approximately 45.0%[66] - The total non-current liabilities decreased from RMB 342,261 thousand in 2022 to RMB 292,021 thousand in 2023, a reduction of about 14.7%[31] - The total non-current assets as of December 31, 2023, were RMB 1,354,281 thousand, compared to RMB 1,495,304 thousand in 2022, showing a decrease of about 9.4%[68] - The company reported a net asset value of RMB 2,011,739 thousand in 2023, up from RMB 1,747,247 thousand in 2022, reflecting an increase of approximately 15.2%[31] Cash Flow and Expenses - The group reported a net cash inflow from operating activities of approximately RMB 287,139,000 for the year[157] - Financial expenses for 2023 amounted to RMB 20,396 thousand, down from RMB 28,645 thousand in 2022, representing a decrease of approximately 28.7%[51] - The total financial expenses for 2023 amounted to approximately RMB 20,396,000, primarily consisting of bank interest expenses of about RMB 18,601,000[169] - The total administrative and other operating expenses decreased by approximately 0.91% or about RMB 2,479,000 to approximately RMB 270,744,000 compared to 2022[183] Dividends and Equity - The company did not recommend a final dividend for the year ended December 31, 2023[16] - Total equity increased to RMB 2,011,739 thousand in 2023, up from RMB 1,747,247 thousand in 2022, reflecting a growth of about 15.1%[193] - The board of directors does not recommend the payment of a final dividend for the year ended December 31, 2023[194] Operational Highlights - The company completed 15 projects in 2023, achieving new modular construction delivery records despite challenges such as design modifications and adverse winter conditions[145] - The company has established a solid foundation for securing future project orders through excellent project management and construction organization capabilities[145] - The group has initiated the renovation of the Penglai West plant to address the severe shortage of assembly space, aiming to enhance construction capacity[150] - The establishment of a detailed design department in the second half of 2023 aims to enhance the group's capabilities in module business and high value-added strategic transformation[150] Research and Development - The company's research and development expenses rose to RMB 99,557,000 in 2023 from RMB 78,469,000 in 2022, reflecting increased investment in innovation[89] - The group is focusing on technological innovation and process research, emphasizing domestic material and equipment substitution, patent product development, and digital system upgrades[151] Compliance and Governance - The company confirmed compliance with the Corporate Governance Code, with no deviations reported for the year ended December 31, 2023[196] - The audit committee, composed of four independent non-executive directors, reviewed the consolidated performance for the year ended December 31, 2023[195] Market Outlook - The company plans to expand its market presence in the underwater maintenance and technical support services sectors, particularly in the oil and gas and new energy industries[45] - The company faced significant geopolitical and economic uncertainties impacting global trade and energy markets, which may influence future performance[145]

智通财经APP讯，巨涛海洋石油服务(03303)发布公告，预期截至2023年12月31日止年度或取得公司拥有人应占溢利约人民币1.6亿元至人民币2.6亿元之间，而截至2022年12月31日止年度公司拥有人应占亏损为人民币2.08亿元。于2023年，集团的收入相较2022年或有较大幅度提升。根据公司当前掌握的资料，董事会认为溢利增加主要是因为集团采取严格的管理措施，实施减员增效，降低成本费用，若干项目的工作效率明显改善，实现了提前交付，从而提升了公司效益。 ...