Fleet and Market Position - As of June 30, 2021, the company owned and controlled a total of 165 oil tankers with a deadweight tonnage of 24.91 million tons, making it the largest oil tanker owner globally[6]. - The company holds over 55% market share in China's coastal crude oil transportation sector, maintaining its position as the industry leader[6]. - The company has invested in 41 LNG vessels, all tied to specific LNG projects, with 38 vessels currently in operation, totaling 642,000 cubic meters[7]. - The company completed the acquisition of PetroChina's refined oil fleet in March 2018, enhancing its position in the coastal refined oil transportation market[6]. - The company is positioned as a leading player in the LNG transportation market, contributing to its significant role in the global LNG transportation sector[7]. - The company signed 141 new oil tanker orders in the first half of 2021, including 31 VLCC orders, approaching the total order volume for VLCCs in 2020[12]. - The average age of tankers over 15 years old accounted for 27% of the fleet, indicating significant potential for fleet renewal[12]. Financial Performance - The company's main business revenue was RMB 6.078 billion, a decrease of 37.1% compared to the same period last year[12]. - The net profit attributable to shareholders was RMB 582 million, a significant decrease of 80.3% year-on-year[12]. - The company's EBITDA was RMB 2.699 billion, a decrease of 49.6% year-on-year[12]. - In the first half of 2021, the company's oil transportation volume reached 81.25 million tons, a year-on-year increase of 0.2%[12]. - Revenue for the six months ended June 30, 2021, was RMB 6,078,251 thousand, a decrease of 37.5% compared to RMB 9,669,499 thousand in 2020[90]. - Gross profit for the same period was RMB 920,274 thousand, down 74.9% from RMB 3,667,551 thousand in 2020[90]. - Profit before tax decreased to RMB 875,208 thousand, a decline of 73.5% from RMB 3,294,078 thousand in the previous year[90]. - Net profit for the period was RMB 743,873 thousand, down 76.0% compared to RMB 3,094,293 thousand in 2020[91]. Operational Efficiency and Cost Management - The company’s coastal oil transportation and LNG transportation businesses provide stable revenue, acting as a safety cushion for overall performance[7]. - The total operating costs for the first half of 2021 were RMB 5.158 billion, a decrease of 14.1% year-on-year, with significant reductions in fuel costs by 18.1% and repair costs by 40.3%[21]. - Fuel consumption decreased by 8.7% compared to the same period last year, while fuel procurement prices were lower than the market average, leading to cost savings[20]. - The company implemented five strategic measures to improve operational performance, including diversifying business strategies and enhancing safety risk management[12]. - The company adjusted its ship repair plan to 32 vessels for the year, effectively reducing operational days during a market downturn and positioning for future market recovery[17]. Debt and Financial Position - As of June 30, 2021, the total debt of the group was RMB 25,120,894,000, a decrease from RMB 26,034,274,000 as of December 31, 2020[28]. - The net debt-to-equity ratio as of June 30, 2021, was 60%, slightly up from 59% at the end of 2020[28]. - Cash and cash equivalents decreased by RMB 1,111,750,000, or 23%, to RMB 3,758,213,000 as of June 30, 2021[28]. - The group had bank and other interest-bearing loans totaling RMB 19,799,595,000 as of June 30, 2021, down from RMB 20,391,723,000 at the end of 2020[35]. - The total bond payable as of June 30, 2021, was RMB 2,497,018,000, unchanged from the previous period[36]. Future Outlook and Strategic Initiatives - The company anticipates a 4% increase in oil consumption in the second half of 2021, with expected daily consumption of 99.6 million barrels[46]. - The company expects stable and healthy growth in tanker capacity in the second half of 2021, supported by a low delivery volume of new ships[46]. - The company plans to optimize its fleet structure by incorporating low-carbon and energy-efficient vessels while phasing out older capacities[50]. - The company aims to enhance green development by leveraging digital management to reduce carbon emissions and align with industry carbon reduction requirements[50]. - The company will focus on international LNG transportation project development, capitalizing on the global refining capacity coming online[51]. Shareholder and Governance Information - As of June 30, 2021, China Shipping Group Co., Ltd. holds 1,536,924,595 shares, representing 44.33% of the total issued share capital[59]. - China Merchants holds 2,156,350,790 shares, accounting for 62.20% of the total issued share capital[59]. - The total issued share capital of the company as of June 30, 2021, is 4,762,691,885 shares, with 1,296,000,000 shares being H shares and 3,466,691,885 shares being A shares[62]. - The company is focused on maintaining transparency regarding shareholder interests and compliance with securities regulations[62]. - The company established a risk control committee in 2019 to enhance governance and risk management functions[78]. Employee and Management Information - As of June 30, 2021, the total number of employees was 7,435, an increase from 6,876 on June 30, 2020[80]. - Employee costs for the reporting period amounted to approximately RMB 1.233 billion, compared to approximately RMB 968 million in the same period of 2020[80]. - The company has appointed new executives, including Mr. Ren Yongqiang as the new chairman, effective August 5, 2021[56]. Risk Management and Compliance - The company continues to manage various financial risks, including market risk, credit risk, and liquidity risk, with no major changes in risk management policies since the end of last year[105]. - The company has adopted the Listing Rules Appendix 10 as a code for securities trading by its directors, ensuring compliance[79]. - The audit committee reviewed the interim performance and agreed with the accounting treatment methods adopted by the company[74].

Financial Performance - The total revenue for the year 2020 was RMB 16,268,197,000, representing a 18.5% increase from RMB 13,721,140,000 in 2019[8]. - The profit before tax from continuing operations was RMB 2,904,034,000, up from RMB 1,001,988,000 in the previous year, marking a significant increase of 189.5%[8]. - The net profit attributable to shareholders for the year was RMB 2,381,415,000, compared to RMB 413,857,000 in 2019, reflecting a growth of 474.5%[8]. - The basic earnings per share for 2020 was RMB 0.5200, compared to RMB 0.1026 in 2019, indicating a substantial increase[8]. - EBITDA reached RMB 6.948 billion, reflecting a year-on-year increase of 31.2%[16]. - The main business revenue was RMB 16.268 billion, an increase of 18.6% year-on-year, with a gross profit margin improvement of 10.1 percentage points[16]. - Net profit attributable to shareholders was RMB 2.381 billion, a significant increase of 475.4% year-on-year[16]. - Gross profit for 2020 was RMB 3,881,644 thousand, representing a gross margin of approximately 23.9%[117]. - The company reported a basic earnings per share of RMB 52.00 for 2020, compared to RMB 10.26 in 2019[117]. Market Position and Strategy - The company maintained over 55% market share in the coastal crude oil transportation sector in China[9]. - The company plans to leverage the "Belt and Road" initiative to enhance its global operational strategy and service offerings[5]. - The company has established a global marketing service system and emergency response system to expand its overseas market share[4]. - The company is recognized as a leader in LNG transportation in China and plays a significant role in the global LNG transportation market[4]. - The company is a leader in China's LNG transportation industry and a significant player in the global LNG transportation market[11]. - The company’s coastal oil transportation and LNG transportation businesses provided a stable revenue base, while international oil transportation offered cyclical flexibility[12]. Operational Highlights - The company owned and controlled a fleet of 160 oil tankers with a total capacity of 23.72 million deadweight tons as of December 31, 2020[9]. - The group operated a fleet of 160 oil tankers with a total capacity of 23.72 million deadweight tons, an increase of 9 vessels and 2.01 million deadweight tons year-on-year[16]. - The transportation volume (excluding time charter) reached 160.65 million tons, a year-on-year increase of 6.85%, while the transportation turnover was 486.06 billion ton-miles, up 10.27% year-on-year[16]. - The company has invested in 41 LNG vessels, with 38 currently in operation, totaling 6.42 million cubic meters, and 3 vessels under construction, totaling 522,000 cubic meters[11]. - The company’s LNG vessels are all project vessels, ensuring stable rental income through long-term contracts with project partners[11]. Challenges and Risks - In 2020, global oil consumption was approximately 92.29 million barrels per day, a decrease of about 8.78% compared to 2019 due to the impact of COVID-19[13]. - The international oil transportation market experienced significant price volatility in 2020, with a notable increase in oil tanker rates in the first half of the year followed by a decline[13]. - The company faced significant risks including macroeconomic fluctuations, which can greatly impact the demand for shipping of bulk resources like oil and LNG[121]. - International political and economic uncertainties, such as trade frictions and geopolitical conflicts, pose risks to the global energy transportation market[122]. - The transition to cleaner energy sources is accelerating, which may affect the demand for energy transportation and challenge the company's business planning[123]. - Competition from alternative transportation methods, such as oil pipelines, could reduce the demand for maritime transportation of crude oil despite increasing import volumes[124]. Corporate Governance - The board of directors is committed to enhancing shareholder value and has adhered to corporate governance principles throughout the reporting period[71]. - The company held its annual general meeting on June 22, 2020, with key executives present to address shareholder inquiries[72]. - The company plans to continuously review and improve its corporate governance practices to align with the latest trends and regulations[72]. - The board consists of executive directors Liu Hanbo and Zhu Maijin, with recent changes in non-executive and independent non-executive directors[76][78]. - The company has adopted a board diversity policy to ensure a balanced composition of skills and experiences among board members[79]. Environmental and Social Responsibility - The group has implemented measures to enhance environmental management and reduce pollution emissions during operations[129]. - The company is committed to green development by optimizing energy efficiency in shipping operations and tracking energy-saving technology trends to meet international emission reduction requirements[63]. - The company has implemented a plan to care for crew members during the pandemic, including health packages for families of long-serving crew members[55]. - The group made charitable donations of approximately RMB 8.49 million in 2020, compared to RMB 7.6 million in 2019[131]. Future Outlook - The company aims to achieve a transportation turnover of 597.8 billion ton-miles and projected operating revenue of RMB 14.12 billion in 2021, with operating costs estimated at RMB 11.73 billion[61]. - The LNG transportation market is anticipated to experience an oversupply in the short term, but significant improvements in supply-demand structure are expected starting in 2023[59]. - The company plans to add 6 new oil tankers in 2021, totaling 1.265 million deadweight tons, with a total of 166 oil tankers and 24.985 million deadweight tons expected to be in operation by year-end[61]. - The company aims to enhance operational efficiency and management standards in response to the uncertainties brought by the COVID-19 pandemic and the oil and gas industry's challenges, focusing on high-quality development[62]. Employee and Talent Management - The total employee cost for the company in 2020 was approximately RMB 2.72 billion, an increase from RMB 2.55 billion in 2019, reflecting a year-over-year growth of about 6.8%[166]. - The company has a total of 7,398 employees as of the end of 2020, with employee compensation linked to operational efficiency[166]. - The incentive plan aims to align the interests of shareholders and senior management, ensuring competitive compensation to attract key personnel[171]. - The company contributes 12% of employees' basic salaries to the local social security medical insurance plan, which has been in effect since July 1, 2001[168].

Fleet and Operations - As of June 30, 2020, the company owned and controlled a fleet of 152 oil tankers with a total capacity of 22.17 million deadweight tons, including 142 owned vessels (19.42 million deadweight tons) and 10 chartered vessels (2.75 million deadweight tons) [4] - The company has invested in 41 LNG vessels, with 36 currently in operation, totaling a capacity of 6.08 million cubic meters, and 5 vessels under construction with a capacity of 0.87 million cubic meters [5] - The company has a comprehensive operational model that includes spot charters, time charters, and contracts of affreightment (COA) to optimize logistics solutions for clients [4] - The company has maintained a strong focus on safety and environmental standards in its operations, particularly in the transportation of hazardous liquid cargoes [5] - The company operates a total of 199 vessels, with a deadweight tonnage of 2,285 million and an average vessel age of 8.8 years [40] Market Position and Revenue - The company holds over 55% market share in the coastal crude oil transportation sector in China, maintaining its position as the industry leader [4] - The company is recognized as a leading player in the LNG transportation market in China and a significant participant in the global LNG transportation sector [5] - The coastal oil transportation and LNG transportation businesses provide a stable revenue base, while international oil transportation offers cyclical flexibility due to market price volatility [6] - The company’s LNG transportation business is expected to accelerate revenue growth as newly constructed LNG vessels come online [6] - The company achieved a transportation volume of 81.11 million tons in the first half of 2020, a year-on-year increase of 3.0%, and a transportation turnover of 257.86 billion ton-miles, a year-on-year increase of 1.0% [10] Financial Performance - The company's main business revenue reached RMB 9.6699 billion, an increase of 37.0% year-on-year, while the main business cost was RMB 6.0019 billion, an increase of 5.8% year-on-year [10] - The net profit attributable to equity holders of the company was RMB 2.955 billion, a significant increase of 528.2% year-on-year, with an EBITDA of RMB 5.351 billion, up 87.0% year-on-year [10] - The company maintained a high gross profit margin of 37.9%, an increase of 18.3 percentage points year-on-year [12] - The average TCE for VLCC on the TD3C route (Middle East to China) was USD 82,200 per day, representing a year-on-year increase of approximately 303.7% [7] - The LNG transportation revenue for the first half of 2020 was RMB 650 million, a decrease of 0.4% year-on-year, while the investment income from LNG transportation reached RMB 337 million, an increase of 76.2% year-on-year [17] Debt and Financial Management - The total debt as of June 30, 2020, was RMB 29,574,628,000, down from RMB 32,238,569,000 as of December 31, 2019 [25] - The net debt to equity ratio decreased to 61% as of June 30, 2020, from 97% as of December 31, 2019, primarily due to the completion of a private placement of A-shares and repayment of part of bank loans [25] - Cash and cash equivalents increased by RMB 3,298,592,000 to RMB 7,218,092,000, representing an 84% increase compared to the end of the previous year [25] - The company raised approximately RMB 5.1 billion through a private placement to support low-cost fleet development [10] - The company’s financial risk management policies have not changed since the end of last year, indicating stability in risk management practices [93] Strategic Initiatives and Future Outlook - The company aims to enhance its core value by focusing on strategic planning and executing the "14th Five-Year Plan" to guide future development [45] - The company plans to leverage structural trade opportunities and expand its overseas strategic network to create new business growth points [45] - The company is actively developing LNG transportation projects and enhancing its independent LNG vessel management capabilities to improve core competitiveness in the LNG transportation business [45] - Future guidance indicates a focus on increasing user engagement and optimizing product offerings to drive revenue growth [82] - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its portfolio [82] Corporate Governance and Shareholder Information - The company has established five specialized committees within the board, including the Audit Committee, Compensation and Assessment Committee, Strategic Committee, Nomination Committee, and Risk Control Committee [61] - The company has adhered to the Corporate Governance Code and is committed to enhancing shareholder value [61] - As of June 30, 2020, major shareholders include China Shipping with 1,554,631,593 shares (44.84%) and COSCO Shipping with 2,156,350,790 shares (62.20%) of the total issued shares [50] - The total issued share capital of the company is 4,762,691,885 shares, with 1,296,000,000 shares being H-shares and 3,466,691,885 shares being A-shares [50] - The company completed a private placement of A-shares, increasing total shares from 4,032,032,861 to 4,762,691,885, with A-shares rising from 2,736,032,861 to 3,466,691,885 [70] Employee and Crew Welfare - The total number of employees as of June 30, 2020, was 6,876, an increase from 6,720 on June 30, 2019 [68] - Employee costs for the reporting period amounted to approximately RMB 968 million, compared to approximately RMB 886 million in the same period of 2019 [68] - The company emphasizes the importance of crew welfare and has implemented nine measures to support crew members during the pandemic [42] - The company has delivered over 500,000 masks and other protective equipment to its vessels to ensure crew health during the COVID-19 pandemic [41] - Approximately 2,900 crew changes have been completed, covering 99% of the company's owned vessels, ensuring safe operations [42]

[Important Notices](index=3&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Statement on Authenticity and Audit Status](index=3&type=section&id=1.1%20%E6%8A%A5%E5%91%8A%E7%9C%9F%E5%AE%9E%E6%80%A7%E5%A3%B0%E6%98%8E%E4%B8%8E%E5%AE%A1%E8%AE%A1%E6%83%85%E5%86%B5) The Board of Directors and management guarantee the authenticity and accuracy of this unaudited quarterly report - The company's management ensures that the content of this quarterly report is **true, accurate, and complete**, with no false records, misleading statements, or material omissions[5](index=5&type=chunk) - The company's first-quarter report for 2020 is **unaudited**[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) The company's Q1 2020 revenue grew 5.73% to RMB 4.07 billion, while net profit surged 46.90% to RMB 629 million Key Financial Indicators for Q1 2020 | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 4,068,168,831.41 | 3,847,709,571.87 | 5.73% | | Net Profit Attributable to Shareholders (RMB) | 628,874,194.09 | 428,082,373.67 | 46.90% | | Net Cash Flow from Operating Activities (RMB) | 278,915,745.01 | 1,507,917,545.17 | -81.50% | | Basic Earnings Per Share (RMB/Share) | 0.1560 | 0.1062 | 46.89% | | Weighted Average Return on Equity (%) | 2.21% | 1.52% | +0.69 p.p. | Key Balance Sheet Indicators at Period End | Indicator | End of Current Period | End of Prior Year | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets (RMB) | 72,572,175,199.90 | 65,841,861,904.73 | 10.22% | | Net Assets Attributable to Shareholders (RMB) | 33,864,200,526.59 | 28,124,735,236.79 | 20.41% | - Non-recurring gains and losses for the period totaled **RMB 534,477.19**, primarily from non-current asset disposals and government grants[7](index=7&type=chunk) [Shareholder Information](index=5&type=section&id=2.2%20%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the reporting period end, the company had 86,017 shareholders, with the top two holding a combined 59.26% stake - The total number of shareholders at the end of the reporting period was **86,017**[8](index=8&type=chunk) Top Three Shareholders | Shareholder Name | Shares Held at Period End | Ownership (%) | | :--- | :--- | :--- | | China Shipping Group Company Limited | 1,536,924,595 | 32.27% | | HKSCC NOMINEES LIMITED | 1,285,404,978 | 26.99% | | China COSCO SHIPPING Corporation Limited | 601,719,197 | 12.63% | [Significant Events](index=6&type=section&id=%E4%B8%89%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Analysis of Significant Changes in Key Financial Metrics](index=6&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Profitability improved due to a strong oil tanker market, while a private placement boosted capital and financing cash flow - Market Review: The global oil transportation market improved in Q1, with the average daily earnings for the VLCC Middle East to Far East route at approximately **$74,869**, a YoY increase of about **168%**[10](index=10&type=chunk) - The LNG transportation business performed strongly, adding one new LNG vessel and achieving a pre-tax profit of **RMB 222 million**, a YoY increase of **61.4%**[10](index=10&type=chunk) [Significant Changes in Balance Sheet Items](index=7&type=section&id=3.1.1%20%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8) A private placement significantly increased cash, paid-in capital, and capital reserves at the end of the period Major Changes in Balance Sheet Items and Reasons | Item | Change from Beginning of Year (%) | Primary Reason | | :--- | :--- | :--- | | Cash and Cash Equivalents | 131.20% | Proceeds from non-public issuance of shares | | Accounts Receivable | 46.76% | Increased oil tanker freight rates leading to higher receivables | | Contract Assets | 109.97% | Increased revenue from uncompleted voyages due to higher freight rates | | Paid-in Capital | 18.12% | Non-public issuance of shares | | Capital Reserve | 57.45% | Non-public issuance of shares | [Significant Changes in Income Statement Items](index=7&type=section&id=3.1.2%20%E5%88%A9%E6%B6%A6%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8) Higher oil tanker freight rates drove growth in total operating revenue and operating profit Major Changes in Income Statement Items and Reasons | Item | YoY Change (%) | Primary Reason | | :--- | :--- | :--- | | Total Operating Revenue | 5.73% | Oil tanker market freight rates rose and remained high | | Investment Income | 55.12% | Increased profits from associates and joint ventures | | Operating Profit | 41.28% | Higher market freight rates and increased investment income | | Finance Costs | -18.42% | Lower USD loan interest rates and reduced foreign exchange losses | [Significant Changes in Cash Flow Statement Items](index=8&type=section&id=3.1.3%20%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8) Operating cash flow decreased due to delayed freight collections, while financing cash flow surged from a share issuance Major Changes in Cash Flow Statement Items and Reasons | Item | YoY Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -81.50% | Delayed collections from uncompleted voyages; increased fuel and other expenses | | Net Cash Flow from Investing Activities | -1070.49% | Increased payments for vessels under construction | | Net Cash Flow from Financing Activities | 852.31% | Non-public issuance of shares and increased bank borrowings | [Progress on Significant Events](index=8&type=section&id=3.2%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5) The company completed a private placement, saw its subsidiary removed from a sanctions list, and executed an internal equity transfer - The company completed a non-public issuance in March 2020, raising net proceeds of **RMB 5.076 billion**, with new shares registered on March 17[15](index=15&type=chunk)[16](index=16&type=chunk) - The wholly-owned subsidiary, Dalian Ocean Shipping Company, was removed from the U.S. Department of the Treasury's SDN List on January 31, 2020[16](index=16&type=chunk) - An internal equity transfer of 100% of Universe Tankships Inc from Dalian Ocean Shipping to the company was completed in February 2020[16](index=16&type=chunk) [Appendix](index=10&type=section&id=%E5%9B%9B%E3%80%81%E9%99%84%E5%BD%95) [Financial Statements](index=10&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This appendix presents the unaudited consolidated and parent company financial statements for the first quarter of 2020 Core Consolidated Financial Data (Q1 2020) | Statement Item | Amount (RMB) | | :--- | :--- | | **Balance Sheet (Period End)** | | | Total Assets | 72,572,175,199.90 | | Total Liabilities | 37,789,683,399.95 | | Equity Attributable to Parent Company | 33,864,200,526.59 | | **Income Statement (Current Period)** | | | Total Operating Revenue | 4,068,168,831.41 | | Total Profit | 762,740,930.37 | | Net Profit Attributable to Parent Company | 628,874,194.09 | | **Cash Flow Statement (Current Period)** | | | Net Cash Flow from Operating Activities | 278,915,745.01 | | Net Cash Flow from Investing Activities | -682,618,995.43 | | Net Cash Flow from Financing Activities | 5,510,255,296.94 | [Consolidated Balance Sheet](index=10&type=section&id=4.1.1%20%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2020, consolidated total assets were RMB 72.57 billion and total liabilities were RMB 37.79 billion [Parent Company Balance Sheet](index=12&type=section&id=4.1.2%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2020, the parent company's total assets were RMB 37.53 billion and total liabilities were RMB 7.93 billion [Consolidated Income Statement](index=15&type=section&id=4.1.3%20%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For Q1 2020, the company reported consolidated total operating revenue of RMB 4.07 billion and net profit of RMB 629 million [Parent Company Income Statement](index=16&type=section&id=4.1.4%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For Q1 2020, the parent company reported operating revenue of RMB 180 million and net profit of RMB 76 million [Consolidated Cash Flow Statement](index=18&type=section&id=4.1.5%20%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For Q1 2020, net cash from operating activities was RMB 279 million, with a period-end cash balance of RMB 9.06 billion [Parent Company Cash Flow Statement](index=19&type=section&id=4.1.6%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For Q1 2020, the parent company's net cash from operating activities was RMB 662 million, with a period-end cash balance of RMB 4.83 billion [Other Appendix Items](index=20&type=section&id=4.2-4.4%20%E5%85%B6%E4%BB%96%E9%99%84%E5%BD%95%E4%BA%8B%E9%A1%B9) The company did not adopt new revenue or lease standards during the period, and the quarterly report is unaudited - The company did not adopt new revenue or lease standards for the first time in the reporting period, and there are no related adjustments[35](index=35&type=chunk) - This quarterly report is **unaudited**[35](index=35&type=chunk)

Financial Performance - The total revenue from continuing operations for 2019 was RMB 13,721,140, an increase of 13.4% compared to RMB 12,099,685 in 2018[7]. - The profit before tax from continuing operations was RMB 1,001,988, significantly up from RMB 413,063 in the previous year[7]. - The net profit attributable to the owners of the company for 2019 was RMB 413,857, compared to RMB 74,679 in 2018, marking a substantial increase[7]. - The earnings per share for 2019 was RMB 0.1026, compared to RMB 0.0185 in 2018[7]. - The main business revenue reached RMB 13.721 billion, an increase of 13.4% year-on-year[15]. - The net profit attributable to shareholders was RMB 414 million, a significant increase of 454.2% year-on-year[15]. - The EBITDA was RMB 5.295 billion, reflecting a year-on-year increase of 36.3%[15]. - The company's revenue for the year ended December 31, 2019, was RMB 13,721,140,000, an increase from RMB 12,099,685,000 in 2018, representing a growth of approximately 13.4%[103]. - Gross profit for the same period was RMB 2,596,118,000, compared to RMB 1,795,611,000 in 2018, indicating a significant increase of about 44.6%[103]. Assets and Liabilities - The total assets as of December 31, 2019, amounted to RMB 65,841,861, up from RMB 63,416,267 in 2018[7]. - The total liabilities and non-controlling interests were RMB (37,717,126), an increase from RMB (35,224,647) in 2018[7]. - The total debt as of December 31, 2019, was RMB 29,506,535,000, down from RMB 30,989,715,000 as of December 31, 2018[30]. - The net debt to equity ratio decreased to 88% as of December 31, 2019, from 94% as of December 31, 2018, primarily due to a reduction in borrowings during the reporting period[30]. - The total receivables and contract assets amounted to RMB 937,682,000 as of December 31, 2019, compared to RMB 752,110,000 as of December 31, 2018[33]. Fleet and Operations - The company owned and controlled a fleet of 151 oil tankers with a total deadweight tonnage of 21.71 million tons as of December 31, 2019[4]. - The company has invested in 38 LNG vessels, with 35 currently in operation, totaling 590,000 cubic meters[4]. - The company is the world's largest tanker owner, with a total fleet of 151 vessels and a deadweight tonnage of 21.71 million tons as of December 31, 2019[8]. - The company holds over 55% market share in the coastal crude oil transportation sector in China, maintaining its leading position[8]. - The group achieved a transportation volume of 15.035 million tons, a decrease of 2.9% year-on-year[15]. - The group completed a total of 21 domestic and international trade interactions, an increase of 10 times year-on-year, enhancing overall fleet efficiency[20]. Revenue Streams - Domestic transportation revenue was RMB 5.033 billion, with a gross margin of 24.9%[17]. - The foreign trade LNG transportation revenue was RMB 1.321 billion, with a gross margin of 53.9%[16]. - The group's transportation revenue from international oil transportation reached RMB 7.312 billion in 2019, an increase of 10.9% year-on-year, with a gross profit of RMB 608 million, up RMB 644 million from 2018, resulting in a gross margin of 8.3%, an increase of 8.9 percentage points year-on-year[19]. - LNG transportation revenue was RMB 1.321 billion, an increase of 11.9% year-on-year, with a gross profit of RMB 713 million, up 7.7% year-on-year, and a gross margin of 53.9%, down 2.1 percentage points year-on-year[21]. Cost Management - The total operating cost for the main business was approximately RMB 11.125 billion, an increase of 8.0% year-on-year[22]. - Fuel costs decreased by 2.0% year-on-year to RMB 3.174 billion, while crew costs increased by 14.9% to RMB 1.634 billion[23]. - The group focused on optimizing route layouts and increasing the proportion of high-revenue VLCC routes[15]. - The company is committed to cost control and lean management, leveraging fleet scale advantages and improving fuel efficiency through refined management mechanisms[55]. Strategic Initiatives - The company aims to enhance its global competitiveness and brand influence by leveraging the "Belt and Road" initiative[5]. - The company plans to provide high-quality services to large petrochemical enterprises and strategic partners globally[5]. - The company plans to continue expanding LNG capacity steadily to enhance profit stability[15]. - The company aims to enhance its LNG transportation business and increase its global development efforts to improve profitability and corporate value[52]. - The company is investing in digital transformation to improve management efficiency and is increasing its budget for information technology infrastructure[55]. Governance and Compliance - The company has established a comprehensive internal control and risk management system, with ongoing improvements to governance and compliance with regulatory requirements[59]. - The company has implemented 56 new regulations following a major asset restructuring, enhancing its internal control framework[59]. - The board of directors is responsible for corporate governance, including reviewing policies and monitoring compliance with legal regulations[68]. - The company emphasizes continuous professional development for directors, providing monthly updates on performance and operations to enhance governance awareness[94]. Shareholder Engagement - The company has established a dedicated investor relations department to enhance communication and transparency with investors[100]. - The company held three shareholder meetings in 2019, approving nine resolutions including the 2018 profit distribution plan[67]. - The company proposed a final dividend of RMB 0.04 per share for the year, pending approval at the upcoming annual general meeting[105]. Market Outlook - The international oil transportation market is anticipated to experience demand growth driven by increased oil production from major oil-producing countries[49]. - The domestic oil transportation market in China is expected to stabilize in the long term despite short-term impacts from the COVID-19 pandemic[50]. - Global LNG trade volume is expected to continue growing, with global liquefaction capacity projected to reach nearly 74.1 million tons per year by 2024[51]. Risk Management - The company is exposed to foreign exchange risk, with a potential impact of RMB 23,287,000 on pre-tax profit if the USD and HKD appreciate or depreciate by 1% against RMB[44]. - The company faces competition from alternative transportation methods, which could reduce the demand for its oil transportation services despite the growth in crude oil imports[109]. - The company has taken measures to mitigate currency exchange rate risks, although fluctuations may still impact its operations due to the increasing scale of foreign trade[115]. Employee and Talent Management - Employee costs for 2019 amounted to approximately RMB 2.547 billion, an increase from RMB 2.153 billion in 2018[150]. - The company has a total of approximately 6,929 employees as of the end of 2019, with salary adjustments linked to operational efficiency[150]. - The company has developed a training program for high-quality talent, combining internal development with market recruitment to enhance human capital[55].