Financial Performance - The company reported a revenue decrease of 29.40% to RMB 823,527,000 for the six months ended June 30, 2023[5]. - Gross profit increased significantly by 1139.95% to RMB 194,337,000 compared to the same period last year[5]. - The profit attributable to the owners of the company for the six months ended June 30, 2023, was RMB 68,844,000, a turnaround from a loss of RMB 140,750,000 in the previous year[5]. - Basic earnings per share for the period were RMB 3.474, compared to a loss of RMB 8.371 per share in the prior year[5]. - The total revenue for the six months ended June 30, 2023, was RMB 823,527,000, a decrease of 29.4% compared to RMB 1,166,518,000 for the same period in 2022[25]. - The oil and gas segment generated revenue of RMB 677,016,000, down 34.5% from RMB 1,033,918,000 in the previous year[30]. - The new energy and refining segment reported revenue of RMB 141,016,000, an increase of 14.1% from RMB 123,540,000 in the prior year[30]. - The total segment profit for the six months ended June 30, 2023, was RMB 194,337,000, significantly up from RMB 15,673,000 in the same period of 2022[27]. - The company reported a net profit before tax of RMB 93,515,000 for the first half of 2023, compared to a loss of RMB 118,567,000 in the same period last year[27]. - The company's profit for the six months ended June 30, 2023, was RMB 68,844,000, compared to a loss of RMB 140,750,000 for the same period in 2022[42]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 4,174,551,000, compared to RMB 4,179,462,000 as of December 31, 2022[9]. - Current liabilities decreased to RMB 1,011,292,000 from RMB 1,089,954,000 at the end of the previous year[9]. - The net asset value increased to RMB 1,829,378,000 as of June 30, 2023, from RMB 1,747,247,000 at the end of 2022[9]. - Trade receivables and notes amounted to RMB 305,978,000 as of June 30, 2023, an increase from RMB 267,304,000 at the end of 2022[31]. - Contract assets decreased to RMB 248,146,000 from RMB 365,608,000 at the end of 2022, while contract liabilities increased to RMB 164,082,000 from RMB 128,220,000[31]. - The company's trade payables as of June 30, 2023, were RMB 447,458,000, a slight decrease from RMB 467,727,000 as of December 31, 2022[48]. - The company reported a decrease in the allowance for doubtful accounts to RMB 96,239,000 as of June 30, 2023, compared to RMB 94,951,000 as of December 31, 2022[45]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2023, was RMB 177,996 thousand, compared to a net cash used of RMB (166,976) thousand in the same period of 2022[11]. - The company reported a net cash used in investing activities of RMB (28,788) thousand, compared to RMB (9,690) thousand in the previous year[11]. - The total cash inflow from the sale of property, plant, and equipment was RMB 141 thousand, an increase from RMB 84 thousand in the same period last year[11]. - The company received government grants totaling RMB 982 thousand, compared to RMB 156 thousand in the previous year[11]. - The net cash used in financing activities was RMB (41,402) thousand, a significant decrease from RMB 202,748 thousand in the same period of 2022[11]. - The company raised bank loans amounting to RMB 30,500 thousand during the period, while repaying RMB 67,450 thousand in bank loans[11]. Shareholder Information - Major shareholder Sanju Environmental Protection (Hong Kong) Co., Ltd. holds 641,566,556 shares, representing 32.38% of the issued share capital[92]. - Director Wang Lishan holds 396,911,278 shares (20.03%) and 2,300,000 share options (0.12%) as of June 30, 2023[90]. - Director Cao Yunsheng has 8,000,000 share options (0.40%) and 20,360,000 shares (1.03%) as of June 30, 2023[90]. - The total number of issued shares is 1,981,598,389 ordinary shares[103]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code to enhance transparency and protect shareholder rights[98]. - The Audit Committee reviewed the unaudited interim financial information for the six months ended June 30, 2023, and found it compliant with applicable accounting standards[101]. Future Plans and Strategies - The company plans to upgrade and update its construction site and facilities to improve efficiency and capacity for large module assembly and offshore wind equipment[76]. - The company will reorganize its market development team to focus on international markets and enhance its competitive capabilities[75]. - The capital management strategy aims to optimize the debt-to-equity ratio to maximize shareholder returns[70].

Financial Performance - Revenue decreased by 29.40% to RMB 823,527,000 compared to RMB 1,166,518,000 in the same period last year[13] - Gross profit increased significantly by 1139.95% to RMB 194,337,000 from RMB 15,673,000 year-on-year[13] - The profit attributable to owners of the company was RMB 68,844,000, a turnaround from a loss of RMB 140,750,000 in the previous year[13] - Basic earnings per share for the six months ended June 30, 2023, was RMB 3.474, compared to a loss of RMB 8.371 per share in the same period last year[13] - The company reported a total comprehensive income attributable to owners of the company of RMB 82,131,000 for the period, a significant recovery from a loss of RMB 127,771,000 in the previous period[39] - The company reported a net foreign exchange gain of RMB 3,526,000 for the six months ended June 30, 2023, down from RMB 4,966,000 in the same period of 2022[51] - The company incurred a loss of RMB 29,773,000 from the fair value of derivative financial instruments, compared to a loss of RMB 16,162,000 in the previous year[51] Assets and Liabilities - Total equity as of June 30, 2023, was RMB 1,829,378,000, up from RMB 1,747,247,000[6] - The total assets as of June 30, 2023, were RMB 2,168,918,000, while total liabilities were RMB 810,595,000[46] - The total assets less current liabilities as of June 30, 2023, were RMB 2,163,259,000, an increase from RMB 2,089,508,000 as of December 31, 2022, representing a growth of approximately 3.5%[40] - The net current assets as of June 30, 2023, were RMB 678,262,000, compared to RMB 531,604,000 as of December 31, 2022, reflecting an increase of about 27.6%[40] - The company’s total liabilities decreased, contributing to a lower capital-to-debt ratio due to profits generated in the first half of 2023[80] - The group's capital debt ratio decreased to 24.84% as of June 30, 2023, down from 28.37% as of December 31, 2022, indicating improved financial stability[115] Cash Flow and Investments - The company’s cash and cash equivalents as of June 30, 2023, were RMB 725,737,000, compared to RMB 610,477,000 as of December 31, 2022, reflecting an increase of approximately 18.9%[40] - Cash and bank deposits as of June 30, 2023, amounted to approximately RMB 729,701,000, an increase from RMB 610,477,000 as of December 31, 2022[74] - The company invested approximately RMB 3,817,000 in property, plant, and equipment during the first half of 2023, down from RMB 23,185,000 in the same period last year[92] - The group has no significant investments for the half-year period ending June 30, 2023, indicating a focus on internal development[100] Operational Efficiency - Operating profit for the period was RMB 104,510,000, compared to an operating loss of RMB 102,240,000 in the previous year[15] - The overall gross margin improved from 1.34% in the previous year to 23.60% in the current period, attributed to better project management and cost control[70] - Administrative and other operating expenses decreased by approximately 22.64% or RMB 30,621,000, totaling about RMB 104,602,000[72] - The company has implemented various management measures to optimize personnel and management structures, enhancing operational efficiency and reducing production costs[64] Market and Business Strategy - The international marine engineering market shows potential opportunities, although geopolitical factors introduce significant uncertainties[65] - The company secured new contracts worth approximately RMB 3 billion, expected to be completed over the next two years[92] - The group plans to restructure its market development team and establish specialized teams for different international markets to enhance market exploration and customer demand understanding[118] - The group aims to actively seek new business opportunities and explore business restructuring through acquisitions and collaborations[119] - The group is transitioning from traditional manufacturing to modular EPC, focusing on new energy businesses, including offshore wind power, to create new growth points[104] Workforce and Human Resources - The total number of employees as of June 30, 2023, was 2,318, a decrease from 2,739 as of December 31, 2022, reflecting a reduction in workforce[116] Dividends - The company announced no interim dividend for the six months ended June 30, 2023[13] - The board does not recommend the distribution of an interim dividend for the six months ending June 30, 2023[106]

Financial Performance - Total revenue for 2022 was RMB 1,750,927 thousand, a decrease of 56.1% compared to RMB 3,981,612 thousand in 2021[144]. - Gross profit for 2022 was RMB 42,530 thousand, down 85.0% from RMB 283,616 thousand in 2021[144]. - Operating loss for 2022 was RMB 169,199 thousand, compared to an operating profit of RMB 49,397 thousand in 2021[144]. - Net loss attributable to owners for 2022 was RMB 208,234 thousand, compared to a profit of RMB 11,024 thousand in 2021[144]. - Basic loss per share for 2022 was RMB (11.80) cents, compared to earnings of RMB 0.66 cents in 2021[144]. - The company reported a net loss of RMB 180,784,000 for the year ended December 31, 2022, compared to a net loss of RMB 443,878,000 for the previous year[148]. - Total comprehensive income for the year was RMB (180,784) thousand, a decrease from RMB (2,324) thousand in the previous year[170]. - The company reported a significant reduction in trade receivables, which fell to RMB 264,023 thousand in 2022 from RMB 419,536 thousand in 2021[146]. - The company recorded a loss on impairment of property, plant, and equipment of RMB 55,962 thousand in 2022, compared to RMB 5,317 thousand in 2021, indicating increased asset impairment issues[198]. - The company experienced a pre-tax loss of RMB (197,844) thousand in 2022, a decrease from a profit of RMB 19,811 thousand in 2021, highlighting a substantial downturn in financial performance[198]. Shareholder Information - As of December 31, 2022, 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 27,430,000[3]. - The company has a public float of at least 25% as of December 31, 2022, ensuring compliance with public shareholding requirements[29]. - The board considers various factors, including financial performance and cash flow, when recommending dividends[4]. - The company paid dividends totaling RMB 512,713,000 during the year[148]. - The company provides information to shareholders and investors primarily through financial reports and regulatory disclosures[107]. - The company has implemented a shareholder communication policy to ensure timely and effective information dissemination to shareholders and investors[120]. - The company actively engages with investors through performance briefings and individual meetings to communicate its status and developments[121]. - The company is committed to enhancing communication with shareholders and investors through various channels, including its website and investor relations department[119]. Corporate Governance - The company has adopted the Corporate Governance Code to enhance transparency and protect shareholder rights[43]. - The company aims to maintain high standards of corporate governance to improve operational efficiency[44]. - The company has established a comprehensive internal management system to monitor financial risks and ensure compliance[55]. - The company’s board of directors includes independent non-executive directors, ensuring compliance with listing rules[47]. - The audit committee oversees the financial reporting process and ensures that the management prepares the consolidated financial reports appropriately[66]. - The audit committee acknowledges that the issues leading to the qualified opinion have been resolved, and the financial impact has been reflected in the financial statements for the years ended December 31, 2021, and December 31, 2022[64]. - The audit committee held two meetings during the year to review financial data, including annual and semi-annual performance, and discussed risk management and internal control systems[87]. - The company has established a remuneration committee to review and recommend compensation policies for directors and senior management[89]. - The nomination committee held three meetings to discuss the nomination of new directors and ensure diversity in the board's composition[101]. - The company emphasizes a diversity policy for board members, considering various factors such as gender, age, and professional experience[102]. Risk Management - The company has a risk management framework in place to identify and assess potential risks affecting business objectives[55]. - The board is responsible for reviewing the effectiveness of risk management and internal control systems, which aim to manage risks rather than eliminate them[79]. - The company has established internal audit functions to regularly review financial management, production, and service processes[80]. - Directors are required to stay informed about the company's operational and financial conditions and report any significant events[81]. - The board conducted an annual review of the group's risk management and internal control systems, affirming their overall effectiveness[82]. Audit and Compliance - The independent auditor issued a qualified opinion on the consolidated financial statements for the year ended December 31, 2022, due to insufficient audit evidence[67]. - The independent auditor was unable to obtain sufficient appropriate audit evidence to support the carrying value of the default provision as of December 31, 2021[85]. - The independent auditor's report indicates that the consolidated financial statements reflect a true and fair view of the company's financial position as of December 31, 2022, except for matters described in the "Basis for Qualified Opinion" section[126]. - The audit fees for the year amounted to HKD 1,680,000, while other services cost HKD 250,000[62]. - The company’s independent auditor has been retained since its establishment in 2005, confirming independence and objectivity[41]. Capital Expenditures and Investments - Approximately HKD 500 million was allocated for the design, procurement, installation, and construction of oil and gas facilities, fully utilized as planned[8]. - About HKD 250 million was designated for capital expenditures related to the enhancement and expansion of production and office facilities in Zhuhai, with HKD 194 million already spent[8]. - The company has not utilized approximately HKD 100 million allocated for upgrading the Penglai site and related equipment, expected to be used in 2023 to 2024[10]. - Approximately HKD 38,866,500 was allocated for general operating funds, with HKD 6 million utilized during the reporting year[10]. - The company raised bank loans amounting to RMB 295,500 thousand during the year, while repaying RMB 312,900 thousand in bank and other loans[177]. Financial Position - Non-current assets totaled RMB 1,557,904 thousand in 2022, down from RMB 1,736,590 thousand in 2021[146]. - Current assets decreased to RMB 1,621,558 thousand in 2022 from RMB 2,137,380 thousand in 2021[146]. - Current liabilities decreased to RMB 1,089,954 thousand in 2022 from RMB 1,797,047 thousand in 2021[146]. - As of December 31, 2022, total equity amounted to RMB 1,747,247,000, a decrease from RMB 1,805,467,000 as of December 31, 2021[148]. - The company's net asset value decreased to RMB 1,747,247 thousand in 2022 from RMB 1,805,467 thousand in 2021, indicating a reduction in equity[173]. - The company’s total equity decreased from RMB 1,805,467 thousand in 2021 to RMB 1,747,247 thousand in 2022, reflecting a decline in shareholder value[173]. - The company’s cash and cash equivalents were RMB 610,477 thousand in 2022, down from RMB 662,765 thousand in 2021[146]. - Cash and cash equivalents as of December 31, 2022, were RMB 97,799,000, down from RMB 134,310,000 in 2021[150]. - The company recognized a significant goodwill of RMB 52,444,000 allocated to its oil and gas exploration equipment manufacturing business[157]. Default Compensation and Provisions - The company reported a provision for default compensation of approximately RMB 138,600,000 due to a contract delay, with an increase of RMB 73,600,000 recognized in the profit and loss account for the year ended December 31, 2022[61]. - The final amount for the default compensation reached RMB 138,600,000, and additional claims amounted to RMB 29,000,000, fully reflected in the financial statements for the years ended December 31, 2021, and December 31, 2022[63]. - Management is in negotiations with clients regarding the final amount of default compensation related to delivery delays, which exceeded the provisions made[84]. - The company recorded significant delays in the delivery of goods under a contract, which were attributed to various factors beyond its control[108]. - The company uses a provision matrix to estimate expected credit losses for trade receivables, which involves significant management judgment based on historical loss experience[116]. - The audit identified the estimation of expected credit losses for trade receivables as a key audit matter due to its importance to the consolidated financial statements[116].

Financial Performance - Revenue for the year ended December 31, 2022, decreased by 56.02% to RMB 1,750,927,000 compared to RMB 3,981,612,000 in 2021[24] - Gross profit for the same period fell by 85% to RMB 42,530,000 from RMB 283,616,000 in the previous year[24] - The company reported a loss attributable to shareholders of RMB 208,234,000 for the year ended December 31, 2022, compared to a profit of RMB 11,024,000 in 2021[24] - The basic loss per share for the year was RMB 11.80, with no final dividend recommended for the year ended December 31, 2022[24] - The company reported a pre-tax loss of RMB 197,844,000 for the year, compared to a pre-tax profit of RMB 19,811,000 in 2021[13] - The total reported segment profit for 2022 was RMB 42,530,000, a significant decrease from RMB 283,616,000 in 2021, reflecting a decline of approximately 85%[42] - The company reported a net loss of RMB 105,196,000 for the year 2022, compared to a net profit of RMB 28,733,000 in 2021[69] - The company reported a net loss of RMB 208,234,000 in 2022, compared to a profit of RMB 11,024,000 in 2021[103] Operational Highlights - The group operated 15 projects at the Penglai site in 2022, with 8 projects completed and delivered successfully, achieving zero incident rate for 8 consecutive years[5] - The group achieved a total of 1.16 billion safe working hours without incidents, meeting all health, safety, and environmental targets for the year[5] - The company experienced significant project delays and cost increases, leading to substantial losses in the Zhuhai facility, impacting overall operational performance in 2022[120] - The company achieved 25 million safe working hours on the Arctic LNG2 project, marking a significant milestone in safety and quality[147] Employee and Management Changes - The total number of employees as of December 31, 2022, was 2,739, a decrease from 3,512 in 2021, with a reduction in both management and technical staff[9] - The company adjusted its management team in the second half of 2021 to address specific issues in project execution at the Zhuhai facility[121] - The group emphasizes the importance of creating a fair and open competitive environment for employees, with compensation and rewards based on industry standards and performance[189] Financial Position - Non-current assets decreased from RMB 1,736,590 thousand in 2021 to RMB 1,557,904 thousand in 2022, a decline of approximately 10.3%[28] - Current liabilities reduced significantly from RMB 2,137,380 thousand in 2021 to RMB 1,621,558 thousand in 2022, representing a decrease of about 24.1%[28] - The company's total equity decreased from RMB 1,805,467 thousand in 2021 to RMB 1,747,247 thousand in 2022, a decline of approximately 3.2%[29] - The company’s cash and cash equivalents decreased from RMB 662,765 thousand in 2021 to RMB 610,477 thousand in 2022, a decline of approximately 7.9%[28] - The total assets reported for 2022 were RMB 3,179,462,000, down from RMB 3,873,970,000 in 2021, indicating a reduction of about 18%[42] - The total liabilities decreased to RMB 1,432,215,000 in 2022 from RMB 2,068,503,000 in 2021, representing a decline of approximately 31%[42] Revenue and Cost Analysis - Total revenue from construction contracts and new energy products for 2022 was RMB 1,750,927 thousand, down from RMB 3,981,612 thousand in 2021, indicating a decline of approximately 56.1%[35] - Revenue from construction contracts for 2022 was RMB 1,544,552,000, down from RMB 3,801,550,000 in 2021, a decrease of about 59%[56] - The cost of sales and services for 2022 was about RMB 1,708,397,000, down 53.80% from RMB 3,697,996,000 in 2021[153] - Direct costs accounted for 83.02% of total sales and service costs, amounting to RMB 1,418,338,000, a reduction of 57.84% from RMB 3,364,114,000 in the previous year[153] - Administrative and other operating expenses decreased by 17.30% to approximately RMB 273,223,000 compared to RMB 330,375,000 in 2021[156] Strategic Initiatives - The group plans to actively explore business restructuring and transformation opportunities through acquisitions and collaborations[6] - The company plans to continue investing in upgrading existing facilities to enhance construction capacity and timely delivery capabilities[124] - The company aims to develop multi-system and multi-field integrated energy service capabilities, focusing on core markets and advantageous products[150] - The group plans to focus on market development, particularly in the energy sector, and will enhance bidding capabilities and personnel to track upcoming projects over the next two years[194] - The company has plans for market expansion and new product development, although specific details were not disclosed in the conference call[43] Challenges and Risks - The global energy crisis, exacerbated by geopolitical conflicts, poses significant challenges for the company and the industry as a whole[146] - The group is actively managing foreign exchange risks associated with fluctuations in the RMB against USD and EUR, aiming to minimize exposure to foreign currency-denominated assets[188] - The group is in discussions with clients regarding the final amount of penalties due to significant delays in the delivery of goods, which exceeded the prepared provisions[192] Miscellaneous - The company recognized government subsidies of approximately RMB 3,936,000 for 2022, compared to RMB 6,737,000 in 2021, reflecting a decline of about 42%[60] - The company has been recognized as a high-tech enterprise, allowing for a reduced tax rate of 15% for certain subsidiaries until November 17, 2025[47][48] - The company reached an agreement with clients regarding compensation for delayed defaults amounting to RMB 138,600,000 and additional claims of RMB 29,000,000, which have been reflected in the financial statements[184]

Financial Performance - Revenue decreased by 42.88% year-on-year to RMB 1,166,518,000[4] - Gross profit decreased by 94.05% year-on-year to RMB 15,673,000[4] - The loss attributable to owners for the six months ended June 30, 2022, was RMB 140,750,000, compared to a profit of RMB 98,301,000 for the same period in 2021[4] - Basic loss per share for the six months ended June 30, 2022, was RMB 8.371[4] - The company reported a total comprehensive loss of RMB 127,771,000 for the period[7] - Total comprehensive income for the six months ended June 30, 2022, was RMB (140,750) thousand, compared to RMB (127,771) thousand for the same period in 2021[16] - The company reported a total comprehensive loss before tax of RMB 118,567 thousand for the six months ended June 30, 2022, compared to a profit of RMB 124,649 thousand for the same period in 2021[35] - The company reported a loss attributable to owners of approximately RMB 140,750,000, a decrease of about 243% compared to the profit in the same period last year[88] Assets and Liabilities - Total assets less current liabilities as of June 30, 2022, amounted to RMB 2,185,730,000[10] - Net current assets as of June 30, 2022, were RMB 552,945,000[10] - Non-current assets as of June 30, 2022, totaled RMB 1,632,785,000[8] - Total equity as of June 30, 2022, was RMB 1,676,326,000[10] - The company reported a total equity of RMB 1,676,326 thousand as of June 30, 2022, compared to RMB 1,896,255 thousand as of December 31, 2021[16] - The company’s total liabilities as of June 30, 2022, were RMB 634,351 thousand, compared to RMB 1,896,255 thousand as of December 31, 2021[16] Cash Flow - Cash used in operating activities for the six months ended June 30, 2022, was RMB (166,976) thousand, a decrease from RMB 363,012 thousand in the same period of 2021[16] - Net cash generated from financing activities for the six months ended June 30, 2022, was RMB 202,748 thousand, compared to RMB (204,210) thousand in the same period of 2021[16] - The cash and cash equivalents at the end of the period were RMB 705,024 thousand, down from RMB 1,344,933 thousand at the end of June 30, 2021[16] - The company reported a net cash outflow from operating activities of approximately RMB 166,976,000 for the period[89] Segment Performance - Revenue from external customers for the Oil and Gas segment was RMB 1,033,918 thousand, while the New Energy and Refining segment generated RMB 123,540 thousand, totaling RMB 1,166,518 thousand for the six months ended June 30, 2022[33] - The Oil and Gas segment reported a profit of RMB 139,919 thousand, whereas the New Energy and Refining segment incurred a loss of RMB 124,212 thousand, resulting in a total segment profit of RMB 15,673 thousand[33] Operational Challenges - The company faced significant losses from the Zhuhai site due to project delays and cost overruns, impacting performance in 2021 and the first half of 2022[75] - The company reported a substantial decrease in workload in the first half of 2022 compared to the same period last year, with insufficient new orders impacting future operations[76] - The company is actively negotiating with clients to push forward project progress affected by external uncertainties, including geopolitical tensions[72] Corporate Governance - The audit committee has reviewed the unaudited interim financial information for the six months ending June 30, 2022, and found it compliant with applicable accounting standards[164] - The company has adopted the Corporate Governance Code to enhance transparency and protect shareholder rights[160] - The company has established an audit committee consisting of three independent non-executive directors and one non-executive director[164] - The company is committed to maintaining high standards of corporate governance and compliance with listing rules[160] Shareholder Information - As of June 30, 2022, the major shareholder Wang Lishan holds 396,911,278 shares, representing 23.61% of the total shares[145] - The beneficial owner of the company, Sanju Environmental Protection (Hong Kong) Limited, holds 641,566,556 shares, accounting for 38.16% of the total shares[147] - Major shareholders include Beijing Sanju Environmental Protection New Materials Co., Ltd. with 641,566,556 shares (38.16%) and Xiangxing Investment Co., Ltd. with 396,911,278 shares (23.61%) [151] Future Outlook - The company plans to focus on market development, particularly in North America and Europe, due to strong investment momentum in oil and gas development projects[105] - The company aims to actively expand its offshore wind power construction strategy[106] - Future guidance indicates a projected revenue growth of approximately 10% year-over-year for the next fiscal period[138]

Financial Performance - The company's turnover for 2021 was RMB 3,981,612,000, a significant increase compared to RMB 3,647,183,000 in 2020, representing a growth of approximately 9.1%[8] - Gross profit for 2021 was RMB 447,749,000, while net profit was RMB 11,024,000, indicating a net profit margin of approximately 0.28%[8] - Basic and diluted earnings per share for 2021 were RMB 0.0066 and RMB 0.0065, respectively[9] - In 2021, the company's net profit attributable to owners was approximately RMB 11,024,000, a decrease of 92.49% compared to RMB 146,712,000 in 2020[31] - The company's gross profit for 2021 was approximately RMB 283,616,000, a decrease of 36.66% or RMB 164,133,000 from 2020, resulting in a gross margin drop from 12.28% to 7.12%[28] - The company recorded revenue of approximately RMB 3,981,612,000 in 2021, an increase of 9.17% or RMB 334,429,000 compared to 2020[22] - Revenue from the oil and gas equipment engineering and integrated services increased by 2.72% or RMB 77,378,000, while revenue from the new energy and refining equipment engineering and integrated services surged by 33.34% or RMB 259,765,000, mainly due to contributions from offshore wind power equipment projects[22] Dividends and Share Capital - The company did not recommend a final dividend for the year ended December 31, 2021[9] - The company has no predetermined dividend payout ratio, and the declaration of dividends is at the discretion of the board[70] - The board of directors has approved a dividend payout of $0.50 per share, representing a 25% increase from the last dividend[48] - The company issued 47,290,000 ordinary shares in 2021, raising a total of HKD 30,819,000[72] - The company's total share capital as of December 31, 2021, consisted of 1,681,306,389 ordinary shares, an increase from 1,634,016,389 shares in 2020[73] Operational Achievements - The completion of the GCGV natural gas chemical plant core module construction project in March 2021 marked a significant achievement, with a total of 2,230 million safe working hours recorded[11] - The Arctic LNG 2 liquefied natural gas production line core module construction project delivered its first three modules by the end of 2021, contributing to a total of over 20 million safe working hours[12] - The company has received multiple awards for project excellence, including "Best Site" and "Best Team" for the GCGV project[11] Management and Strategy - The company is actively optimizing its management structure and enhancing management controls to improve project delivery efficiency[11] - The company is actively seeking new business opportunities through acquisitions and collaborations to promote business transformation[18] - The company plans to enhance its construction efficiency and reduce costs by investing in facility upgrades and improving manufacturing capabilities[17] - The company aims to improve market organization and marketing capabilities to secure major bidding opportunities and increase market orders[16] Employee and Safety Initiatives - The company is focusing on enhancing employee skills and safety through various training and engagement activities[16] - The company has implemented a health, safety, and environmental management system certified by OHSAS18001:2007, focusing on creating a safe production environment[63] - The company conducts annual health checks for employees to ensure they meet health standards[64] Financial Position and Liabilities - As of December 31, 2021, the group's cash and cash equivalents amounted to approximately RMB 666,970,000, down from RMB 1,191,173,000 in 2020[31] - The capital debt ratio increased to 29.58% in 2021 from 25.55% in 2020, primarily due to a reduction in total equity after dividend payments totaling RMB 512,713,000[38] - The group had approximately RMB 397,830,000 in available bank credit as of December 31, 2021, compared to RMB 332,940,000 in 2020[31] - The group reported a provision for default compensation of approximately RMB 65 million due to contract delivery delays as of December 31, 2021[179] - The expected credit loss for trade receivables is estimated using a matrix that involves significant management judgment based on historical credit loss experience[191] Corporate Governance - The company has adopted the Corporate Governance Code to maintain high standards of corporate governance, enhancing transparency and protecting shareholder rights[132] - The board held a total of 12 meetings in 2021, with attendance rates for individual directors ranging from 11 to 12 out of 12 meetings[141] - The company has confirmed that all independent non-executive directors have submitted annual confirmations regarding their independence as per listing rules[140] - The company is committed to reviewing and monitoring compliance with legal and regulatory requirements as part of its corporate governance responsibilities[140] Audit and Compliance - The independent auditor expressed a qualified opinion regarding the adequacy of audit evidence for the provision recognized in the financial statements[155] - The audit committee held two meetings during the year to review and discuss the company's financial information, including annual and semi-annual performance[163] - The audit committee recommended the reappointment of the independent auditor for the 2022 financial year[165] - The auditor's report aims to provide transparency while balancing legal and public interest considerations[200] Future Outlook - The company provided guidance for the next quarter, expecting revenue to be between $1.6 billion and $1.7 billion, indicating a growth rate of 7% to 13%[48] - New product launches are anticipated to contribute an additional $200 million in revenue over the next fiscal year[48] - Market expansion plans include entering two new international markets by the end of the fiscal year, projected to increase market share by 5%[48]

JUTAL (於開曼群島註冊成立的有限公司) 股份代號：03303 2021 中期報告 目錄 | --- | --- | |------------------------------|-------| | | | | 財務摘要 | 2 | | 獨立審閱報告 | 3 | | 簡明綜合損益表 | 5 | | 簡明綜合損益及其他全面收益表 | 6 | | 簡明綜合財務狀況表 | 7 | | 簡明綜合權益變動表 | 9 | | 簡明綜合現金流量表 | 10 | | 簡明綜合財務報表附註 | 11 | | 管理層討論及分析 | 29 | | 董事會報告及公司管治 | 40 | | 公司資料 | 58 | 二零二一年中期報告 2 財務摘要 | --- | --- | |---------------------------------------------------------------------|------------------| | | | | • 營業額較去年同期增加 57.53% 至人民幣 2,042,142,000 元。 | | | • 毛利較去年同期增加 48.46% 至人民幣 263,505, ...

Financial Performance - The total revenue for the year 2020 was RMB 4,477,490,000, with a gross profit of RMB 3,647,183,000 and a net profit of RMB 146,712,000[10]. - Basic and diluted earnings per share for 2020 were both RMB 0.0898[11]. - The company recorded revenue of approximately RMB 3,647,183,000 in 2020, an increase of 107.15% or RMB 1,886,559,000 compared to 2019[24]. - Revenue from the oil and gas equipment engineering and integrated services increased by 75.99% or RMB 1,228,267,000, primarily due to the peak construction period of the natural gas chemical module project[24]. - Revenue from the new energy and refining equipment engineering and integrated services surged by 516.00% or RMB 652,640,000, mainly contributed by offshore wind power equipment projects[24]. - The company's gross profit for 2020 was approximately RMB 447,749,000, a 39.79% increase from RMB 320,294,000 in 2019[29]. - The overall gross margin decreased from 18.19% in 2019 to 12.28% in 2020, attributed to lower margins on certain projects[29]. - The profit attributable to owners for 2020 was approximately RMB 146,712,000, an increase of 3,216.27% compared to RMB 4,424,000 in 2019[34]. Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.22 per share for the year ended December 31, 2020[12]. - As of December 31, 2020, the company had a share premium reserve of approximately RMB 1,733,618,000 and retained earnings available for distribution to shareholders of approximately RMB 7,103,000[74]. - The company has no predetermined dividend payout ratio, and the board will review the dividend policy periodically[75]. - The company proposed a final dividend of HKD 0.22 per share for the year ended December 31, 2020, subject to shareholder approval at the upcoming annual general meeting[78]. - As of December 31, 2020, the company's issued share capital consisted of 1,634,016,389 ordinary shares, unchanged from 2019[80]. Operational Achievements - The company achieved a 100% on-time delivery rate for 17 completed projects out of 22 operational projects in 2020[15]. - The company completed over 97% of the overall progress for the GCGV gas chemical plant module construction project by the end of 2020[16]. - The company received a large order to supply 50 sets of offshore wind power equipment for a European offshore wind farm project, with a total contract value exceeding RMB 2 billion[15]. - The company maintained over 28 million safe working hours in 2020, achieving zero accident frequency and severity at the Penglai site[18]. - The company is actively transitioning towards clean energy and refining sectors, leveraging its strengths in marine engineering modules[15]. Cost and Expenses - The sales and service costs for 2020 amounted to approximately RMB 3,199,434,000, an increase of 122.13% or RMB 1,759,104,000 compared to 2019[26]. - Administrative and other operating expenses increased by 1.29% or RMB 3,359,000 to approximately RMB 263,211,000 in 2020[32]. - The financial expenses for 2020 totaled approximately RMB 34,122,000, primarily consisting of bank loan interest of about RMB 27,031,000[33]. Assets and Liabilities - As of December 31, 2020, the group's total assets amounted to approximately RMB 2,249,345,000, an increase from RMB 2,150,993,000 in 2019[36]. - The capital debt ratio decreased to 23.10% in 2020 from 31.71% in 2019, primarily due to a reduction in bank and other loans[47]. - The net value of non-current assets was approximately RMB 1,787,180,000 as of December 31, 2020, compared to RMB 1,716,353,000 in 2019[36]. Employee and Management Information - The total number of employees increased to 3,568 as of December 31, 2020, up from 3,172 in 2019[48]. - The company has a strong management team with extensive experience in the oil and gas industry, including executives with backgrounds in engineering and finance[59]. - The management team includes professionals with advanced degrees in business administration and engineering, indicating a strong educational background[59]. - The company emphasizes the importance of employee welfare, offering reasonable compensation and benefits, and implementing various training programs to support long-term development[65]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency in its operations[62]. - The company has appointed several independent non-executive directors with significant experience in finance and accounting, enhancing corporate governance[55][56]. - The board consists of six executive directors and three independent non-executive directors, ensuring a balanced governance structure[151]. - The company has adopted the Corporate Governance Code to enhance transparency and protect shareholder interests[147]. Risk Management and Compliance - The company has established a comprehensive internal management system to manage risks and ensure compliance[162]. - The board is responsible for reviewing the effectiveness of the risk management and internal control systems[162]. - The audit committee held two meetings during the year to review and discuss the company's consolidated financial reports and the effectiveness of risk management and internal control systems[166]. - The company is committed to timely and accurate disclosure of inside information as per the Securities and Futures Ordinance and Listing Rules[164]. Related Party Transactions - The company has complied with the disclosure requirements under the Listing Rules regarding related party transactions[137]. - The independent non-executive directors confirmed that the ongoing related party transactions were conducted in the ordinary course of business and on normal commercial terms[139]. - The external auditor reported no issues regarding the ongoing related party transactions not being approved by the board or not following the group's pricing policy[140]. Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2020[184]. - Key audit matters identified included goodwill impairment assessment and revenue recognition for construction contracts[186]. - The audit committee recommended the reappointment of the external auditor for the fiscal year 2021[168].

Financial Performance - Revenue increased by 163.13% year-on-year to RMB 1,296,344,000[4] - Gross profit rose by 101.91% year-on-year to RMB 177,496,000[4] - Profit attributable to owners for the six months ended June 30, 2020, was RMB 25,363,000, compared to a loss of RMB 32,716,000 for the same period in 2019[4] - Basic and diluted earnings per share for the six months ended June 30, 2020, were RMB 1.552[4] - Operating profit for the period was RMB 56,715,000, compared to an operating loss of RMB 4,332,000 in the previous year[10] - Total comprehensive income for the period attributable to owners was RMB 43,459,000, compared to a loss of RMB 26,101,000 in the previous year[12] - The group’s pre-tax profit for the period was RMB 37,283, a turnaround from a loss of RMB 23,536 in the same period last year[31] - The group's profit for the six months ended June 30, 2020, was RMB 25,363,000, compared to a loss of RMB (32,716,000) for the same period in 2019, indicating a significant recovery[46] Assets and Liabilities - Non-current assets as of June 30, 2020, amounted to RMB 1,177,163,000[13] - Current assets, including inventory, totaled RMB 2,521,374,000 as of June 30, 2020[13] - As of June 30, 2020, the company's total current liabilities amounted to RMB 1,481,848 thousand, a decrease from RMB 1,526,695 thousand as of December 31, 2019[15] - The company's total assets less current liabilities increased to RMB 2,758,978 thousand as of June 30, 2020, up from RMB 2,679,296 thousand as of December 31, 2019[15] - The company reported a total equity of RMB 2,196,387 thousand as of June 30, 2020, an increase from RMB 2,150,993 thousand as of December 31, 2019[15] - The company’s total liabilities as of June 30, 2020, were RMB 562,591 thousand, compared to RMB 528,303 thousand as of December 31, 2019[15] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 511,025 thousand, compared to a net cash outflow of RMB 123,225 thousand for the same period in 2019[19] - The net cash and cash equivalents at the end of the period were RMB 1,007,565 thousand, significantly higher than RMB 487,617 thousand at the end of the same period in 2019[19] - The company incurred a net cash outflow from investing activities of RMB 130,930 thousand for the six months ended June 30, 2020, compared to RMB 45,585 thousand for the same period in 2019[19] - The company raised bank loans totaling RMB 148,000 thousand during the financing activities for the six months ended June 30, 2020, compared to RMB 70,000 thousand in the same period of 2019[19] Segment Performance - Revenue from external customers for the Oil and Gas segment was RMB 1,287,834, representing a significant increase from RMB 442,529 in the same period last year, which is a growth of approximately 191%[29] - The total segment profit for the group was RMB 177,496, compared to RMB 87,910 in the previous year, indicating an increase of about 101%[31] - The group's contract assets increased to RMB 296,251 from RMB 161,777 year-over-year, reflecting an increase of approximately 83%[33] - The group's contract liabilities rose to RMB 525,653, up from RMB 299,110, marking a growth of about 76%[33] Operational Highlights - The company secured several large project orders at the Zhuhai site, including the construction of 50 offshore wind power equipment units for a European offshore wind farm, with a total contract value of approximately RMB 2 billion[66] - The company is preparing to fully launch the Arctic LNG 2 module construction project in the second half of the year, despite some delays due to the pandemic[66] - The company has shifted its business focus towards modular construction and energy facilities, successfully participating in several international large-scale projects[64] - The company has a comprehensive layout plan for the construction site to improve core construction capabilities and steadily increase production capacity[99] Employee and Governance - The total number of employees as of June 30, 2020, was 3,348, an increase from 3,172 as of December 31, 2019[97] - The company emphasizes employee development and provides ongoing training opportunities to enhance skills and career growth[98] - The company has adopted the Corporate Governance Code to enhance transparency and protect shareholder interests[165] - The company aims to maintain high standards of corporate governance to improve management efficiency[165] Share Options and Capital Management - The total number of options granted under the 2016 share option plan is capped at 80,035,427 shares, representing 10% of the issued shares at the time of the shareholders' meeting[111] - A total of 48,000,000 options were granted on April 24, 2020, with an exercise price of HKD 0.48[148] - The options granted to directors and employees are part of a share option scheme aimed at incentivizing performance and aligning interests with shareholders[148] - The company has a structured approach to option grants, ensuring that the exercise prices reflect market conditions at the time of grant[148] Corporate Information - The company is listed on the Hong Kong Stock Exchange under the stock code 03303 since September 21, 2006[170] - The registered office is located in Grand Cayman, Cayman Islands[170] - The company’s main business location in Hong Kong is at Central, Hong Kong[170] - The company has a significant presence in Shenzhen, China, with its main office located in Shekou[170]

Financial Performance - The company reported a total revenue of RMB 3,202.94 million for the year ended December 31, 2019, with a gross profit of RMB 442.4 million and a net profit of RMB 1,760.62 million[13]. - Basic and diluted earnings per share for 2019 were RMB 0.0027 each[14]. - The company did not recommend the payment of a final dividend for the year ended December 31, 2019[15]. - The company recorded a revenue of approximately RMB 1,760,624,000 in 2019, an increase of 18.48% or RMB 274,660,000 compared to 2018[31]. - The gross profit for 2019 was approximately RMB 320,294,000, representing a 77.44% increase from RMB 180,505,000 in 2018, with an overall gross margin rising from 12.15% to 18.19%[36]. - The profit attributable to the owners of the company in 2019 was approximately RMB 4,424,000, a decrease of 83.39% from RMB 26,637,000 in 2018[42]. - The total other income for the group in 2019 was approximately RMB 58,353,000, primarily from interest income, insurance claims, and government subsidies[39]. Revenue Sources and Growth - Revenue from the oil and gas equipment engineering and integrated services business increased by 64.42% or RMB 633,287,000, primarily due to the peak construction phase of a natural gas chemical module project[31]. - In 2019, the company's revenue from the oil and gas equipment engineering and integrated services segment was RMB 328,989,000, with a gross margin of 20%[38]. - The company had over RMB 5 billion in backlog orders as of the end of 2019[19]. - The company reported revenue from construction contracts and other service contracts recognized over time amounted to RMB 1,673,280,000, accounting for approximately 95% of the total revenue for the year ended December 31, 2019[183]. Operational Developments - The company expanded its construction site area to approximately 1 million square meters to meet the needs of large project construction[19]. - A significant contract worth over RMB 3 billion was awarded for the construction of core compressor and generator modules for the Arctic LNG 2 project[19]. - The traditional offshore service business remained stable, with new markets being explored, including offshore wind power installation services[21]. - The company anticipates challenges in human resources and project management due to several large projects being at peak construction simultaneously[25]. - The modular construction approach is expected to become mainstream in industries such as energy, chemicals, and marine engineering, presenting significant market opportunities[25]. Management and Governance - Liu Lei serves as the Executive Director and Chairman, having joined the company in June 2000[59]. - Wang Ning Sheng, the Executive Director and President, joined the company in 2012 and has extensive management experience in the oil and gas industry[60]. - The company has a strong management team with diverse backgrounds in engineering, finance, and project management, enhancing operational efficiency[67]. - The management team includes independent non-executive directors with significant experience in finance and accounting, ensuring robust governance[63]. - The company has adopted the Corporate Governance Code to enhance transparency and protect shareholder interests[143]. Financial Management and Risk Control - The company aims to strengthen risk management and cost control while actively exploring new high-value business markets[27]. - The board is responsible for risk management and internal control systems, which are designed to manage risks rather than eliminate them[158]. - The company has established a comprehensive internal management system to ensure compliance and effective monitoring of business operations[158]. - The audit committee supervises the financial reporting process and ensures compliance with accounting policies[162]. Employee and Stakeholder Engagement - The company emphasizes employee welfare, offering reasonable compensation and benefits, and encourages continuous training and development[72]. - The company is committed to sustainable development and increasing communication with stakeholders in response to market changes[77]. - The company has established a safety monitoring department to ensure compliance with national safety production and environmental protection laws[76]. Shareholder Information - The company reported a share premium reserve of approximately RMB 1,733,618,000 and cumulative losses available for distribution to shareholders of approximately RMB 5,364,000 as of December 31, 2019[79]. - The company has a significant shareholder, Sanju Environmental (Hong Kong) Limited, holding 641,566,556 shares, which is 39.26% of the issued share capital[119]. - The total sales from the top five customers indicate a high concentration risk, which may impact future revenue stability[128]. Audit and Compliance - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2019[178]. - Key audit matters identified include goodwill impairment assessment and revenue recognition for construction contracts[180]. - The audit process identified and assessed risks of material misstatement in the consolidated financial statements due to fraud or error[194]. - The audit report highlighted key audit matters that were most significant to the audit of the current period's consolidated financial statements[198].