Fleet and Operations - As of June 30, 2019, the company owned and controlled a fleet of 151 oil tankers with a total capacity of 22.88 million deadweight tons, including 137 owned vessels (19.02 million deadweight tons) and 14 chartered vessels (2.87 million deadweight tons) [4] - The company has invested in 38 LNG vessels, with 30 currently in operation (5.04 million cubic meters) and 8 under construction (1.39 million cubic meters) [6] - The company is recognized as the largest oil tanker owner globally, reflecting its significant operational scale [4] - The company’s operational model includes spot market charters, time charters, and contracts of affreightment (COA), maximizing fleet utilization [4] - The company completed the acquisition of China National Petroleum Corporation's refined oil fleet in March 2018, enhancing its position in the coastal refined oil transportation market [4] - The company is collaborating with Dalian Shipbuilding Industry Group to develop the world's first LNG dual-fuel VLCC, compliant with EEDI PHASE III standards [18] 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’s coastal oil transportation business and LNG transportation business provide stable revenue, acting as a safety cushion for overall performance [7] - The foreign trade oil transportation revenue was RMB 3,977.11 million, up 52.26% year-on-year, with a gross profit of RMB 446 million, reflecting a 201.56% increase [18] - The domestic oil transportation revenue reached RMB 2,376.75 million, a 29.47% increase year-on-year, with a gross margin of 23.62%, down 6.50 percentage points [18] - The company maintained over 55% market share in domestic crude oil transportation and achieved a 70.42% increase in domestic refined oil transportation revenue [18] Financial Performance - The company's main business revenue amounted to RMB 7.059 billion, a year-on-year increase of 40.16% [13] - The EBITDA for the first half of 2019 was RMB 2.862 billion, reflecting an increase of 81.78% year-on-year [13] - The total revenue for the first half of 2019 reached RMB 7,058.64 million, representing a year-on-year increase of 40.16% [15] - The average daily earnings for VLCC on the Middle East to East route (TD3C) was $20,360, representing a year-on-year increase of 136.1% [10] - The average daily earnings for Suezmax on the West Africa to Europe route (TD20) was $13,731, showing a year-on-year increase of 158.8% [10] - The average daily earnings for Aframax on the Kuwait to Singapore route (TD8) was $12,183, which is a 294.0% increase year-on-year [10] - The LNG transportation segment contributed a pre-tax profit of RMB 286 million, marking a year-on-year growth of 38.60% [13] Cash Flow and Financial Position - The net cash generated from operating activities was approximately RMB 2,696,446,000, an increase of about 633% compared to RMB 367,619,000 in the same period last year [25] - As of June 30, 2019, cash and cash equivalents totaled RMB 4,211,405,000, reflecting a 21.44% increase from the previous year-end [26] - The net debt-to-equity ratio decreased to 89% from 94% at the end of 2018, primarily due to a reduction in borrowings during the reporting period [27] - The company’s total liabilities as of June 30, 2019, were RMB 24,872,185,000, compared to RMB 25,800,939,000 as of December 31, 2018, showing a decrease of about 3.6% [36] - The total bank and other interest-bearing loans amounted to RMB 24,872,185,000 as of June 30, 2019, compared to RMB 25,800,939,000 as of December 31, 2018, indicating a decrease of about 3.6% [36] Strategic Initiatives and Future Plans - The company plans to accelerate its strategic transformation towards becoming a full-service oil tanker transportation provider while advancing into emerging markets and new business areas in the second half of 2019 [49] - The company is accelerating the development of its LNG transportation business and is actively promoting key projects, particularly in the Arctic routes, in collaboration with China National Petroleum Corporation [50] - The company aims to enhance operational efficiency and profitability by integrating domestic and international trade resources and strengthening business collaboration with joint ventures [50] - The company plans to increase the proportion of high-revenue routes by expanding its customer base in Europe, America, and India while enriching its shipping routes and cargo structure [50] Corporate Governance and Management - The company has established four specialized committees within the board: Audit Committee, Remuneration and Assessment Committee, Strategic Committee, and Nomination Committee, to enhance governance and accountability [66][68][69][70] - The company is actively reviewing its corporate governance practices to ensure compliance with the latest developments and revisions of the Corporate Governance Code [66] - The company proposed a non-public issuance of A-shares not exceeding 806,406,572 shares, pending approval from the China Securities Regulatory Commission [74] - The company has adopted the Corporate Governance Code and confirmed compliance by all directors and senior management during the reporting period [71] Employee and Talent Management - The total number of employees as of June 30, 2019, was 6,720, a decrease from 7,021 on June 30, 2018 [72] - Employee costs for the reporting period amounted to approximately RMB 886 million, compared to approximately RMB 723 million in the same period of 2018, representing a year-on-year increase of about 22.6% [72] - The company is deepening reforms to stimulate team vitality and has designed talent development pathways to encourage outstanding employees [50] Related Party Transactions and Guarantees - The company has provided guarantees for lease agreements totaling up to USD 167,000,000 (approximately RMB 1,148,075,000) for joint ventures related to the Yamal LNG transportation project [40] - The company has provided financial guarantees amounting to USD 377.5 million (approximately RMB 2,595,199,000) to three joint ventures, covering 50% of the bank loans provided by two banks [181] - The company reported an increase in accounts payable to related parties, with RMB 645,299 thousand owed to subsidiaries as of June 30, 2019, compared to RMB 468,505 thousand in the previous year [174] Financial Reporting and Compliance - The interim financial data has been approved by the board on August 29, 2019, and is presented in RMB, rounded to the nearest thousand [89] - The financial data is prepared in accordance with HKAS 34 and HKFRS 5, focusing on interim financial reporting and business combinations [90] - The financial data has not been audited, indicating a preliminary assessment of the company's financial position [89]

Fleet and Operations - As of December 31, 2018, COSCO SHIPPING Energy Transportation owned and controlled a fleet of 151 oil tankers with a total deadweight tonnage of 21.88 million tons, making it the largest fleet globally[4]. - The company has invested in 38 LNG vessels, with 26 currently in operation, totaling 4.35 million cubic meters, and 12 under construction, totaling 2.08 million cubic meters[4]. - The company maintained a market share of over 55% in the coastal crude oil transportation sector, solidifying its position as a leading enterprise in this field[11]. - The company is a leader in the LNG transportation business in China, with investments in 38 LNG vessels, of which 26 are operational, totaling 4.35 million cubic meters[13]. - The company has signed long-term charter contracts for all its LNG vessels, ensuring stable rental income and investment returns[13]. - The company completed the acquisition of the PetroChina refined oil fleet, becoming a leader in domestic refined oil transportation, with revenue from this segment increasing by 45.8% year-on-year[19]. - The company controlled oil tanker capacity reached 648,959 deadweight tons, a year-on-year increase of 17.0%[18]. - The company plans to add 16 new oil tankers with a total deadweight tonnage of 3.058 million tons over the next three years, with projected capital expenditures of RMB 6.45 billion[122]. - The company plans to add 1 oil tanker with a deadweight tonnage of 114,000 tons and 9 LNG vessels with a total capacity of 1.553 million cubic meters, aiming for a total operational fleet of 152 oil tankers and 35 LNG vessels[58]. Financial Performance - Total assets as of December 31, 2018, amounted to RMB 63.42 billion, an increase from RMB 60.39 billion in 2017[8]. - The equity attributable to owners of the company was RMB 28.19 billion as of December 31, 2018, slightly up from RMB 27.92 billion in 2017[9]. - The company's revenue from continuing operations for the year ended December 31, 2018, was RMB 12,099,685,000, an increase from RMB 9,504,935,000 in 2017, representing a growth of approximately 27%[10]. - The profit from continuing operations before tax was RMB 413,063,000, down from RMB 2,055,013,000 in 2017, indicating a decline of about 80%[10]. - The net profit attributable to the company's owners for the year was RMB 74,679,000, a significant decrease from RMB 1,774,648,000 in 2017, reflecting a decline of approximately 96%[10]. - The company's main business revenue for 2018 was RMB 12.1 billion, a year-on-year increase of 14.8%[20]. - The group's other income and net gains from continuing operations in 2018 were approximately RMB 222 million, a decrease of about 75% compared to 2017, primarily due to a reduction in government subsidies by approximately RMB 407 million and a foreign exchange loss of about RMB 84 million compared to a foreign exchange gain in 2017[125]. - The group's income tax for 2018 was approximately RMB 120 million, a decrease of about 26% compared to 2017, mainly due to fluctuations in the shipping market leading to a decline in taxable profits from domestic operations in China[125]. Market and Industry Outlook - The international oil tanker transportation market is characterized by significant price volatility influenced by international political and economic factors, with daily earnings for VLCCs ranging from $12,800 to $105,000 over the past two decades[12]. - The coastal oil transportation market in China is relatively stable, with a balanced supply and demand, leading to higher price stability compared to the international market[13]. - The company anticipates continued healthy growth in the international oil transportation market in 2019, supported by stable oil consumption growth and changes in cargo structure[53]. - The global LNG consumption growth rate is projected at 1.7% annually from 2019 to 2040, with LNG demand expected to double compared to 2017 levels, primarily driven by Asian countries like China[55]. - The price of new VLCC vessels increased by approximately 14% from USD 81.5 million to USD 93 million per vessel between early 2018 and January 2019, which may suppress the growth of new orders[53]. Cost Management and Efficiency - The company implemented lean management to control costs, with total operating costs rising to approximately RMB 10,300 million, a 38.5% increase year-on-year[27]. - The company implemented fuel efficiency management measures, saving approximately 86,200 tons of fuel, which resulted in a cost saving of about RMB 288 million[29]. - The average fuel consumption of the fleet was reduced by 9.2% to 2.04 kg per thousand tons of cargo[29]. - Fuel costs accounted for 31.5% of the company's main business costs in 2018, up from 27.2% in 2017, indicating increased exposure to fuel price volatility[120]. - The company has implemented energy-saving technologies and economic sailing speeds to reduce fuel consumption and manage procurement costs[120]. Corporate Governance and Compliance - The company revised its Articles of Association and related rules in 2011 to enhance corporate governance and ensure compliance with regulatory requirements[61]. - The company adopted a board diversity policy in 2013 to ensure a balanced composition of skills, experience, and perspectives among board members[61]. - The company has established a comprehensive internal control system, completing the update of the internal control manual for the fiscal year 2015[64]. - The company has continuously improved its internal management operations through effective checks and balances among various governance bodies[62]. - The independent non-executive directors found no areas needing improvement in corporate governance and compliance with national laws and regulations in 2018[193]. Strategic Initiatives and Future Plans - The company aims to enhance its operational capabilities and service quality to meet the growing demand in the energy transportation sector[2]. - The company plans to expand its LNG transportation business and develop new projects, focusing on the Arctic shipping route to enhance its competitive edge in LNG vessel management[59]. - The company is committed to strengthening its industry leadership by innovating technology and establishing a research center to enhance market research capabilities[59]. - The company prioritizes talent development to build a high-quality, professional, and international workforce, fostering a culture that encourages performance and skill enhancement[59]. - The company has established a dedicated investor relations department to enhance communication with investors and analysts[109]. Risk Management - The company faces significant risks from macroeconomic fluctuations, which can impact demand for shipping of bulk resources like oil and LNG[117]. - The company is exposed to competition from other transportation methods, which may reduce the demand for its services despite the growth in oil imports[118]. - The company has taken measures to mitigate piracy risks, which remain a significant threat to shipping safety[121]. - Currency exchange rate fluctuations may impact the company's operations due to a portion of revenues and costs being denominated in USD[123]. Employee and Compensation - The total employee cost for the company in 2018 was approximately RMB 2.153 billion, an increase from RMB 1.874 billion in 2017[158]. - The company has developed a salary system combining position wages, seniority wages, performance wages, and auxiliary wages to incentivize employees[68]. - The company has a compensation and assessment committee chaired by independent non-executive director Ye Chengzhi[138]. - The total number of stock options granted under the incentive plan is 35,460,000, accounting for approximately 0.88% of the company's total issued shares as of the report date[165]. Shareholder Relations - The company emphasizes a sustainable dividend policy, balancing shareholder expectations with prudent capital management[108]. - The board proposed a final dividend of RMB 0.02 per share for the year, pending approval at the upcoming annual general meeting[115]. - The company has established a special account for the use of raised funds, ensuring compliance with relevant laws and regulations[182]. - The company actively participated in shareholder meetings and board meetings, providing independent opinions on significant matters for long-term development[194].

Financial Performance - Net profit attributable to shareholders decreased by 121.51% to a loss of CNY 268,314,660.54 for the first nine months of the year[8]. - Operating revenue for the first nine months increased by 13.97% to CNY 8,292,210,213.85 compared to the same period last year[8]. - Basic earnings per share decreased by 121.49% to a loss of CNY 0.0665 per share[8]. - The weighted average return on equity decreased by 5.49 percentage points to -0.96%[8]. - The company's EBITDA for the first nine months of 2018 was RMB 2.499 billion, down 29.08% year-on-year[15]. - Total profit for Q3 2018 reached CNY 64.55 million, down 85% from CNY 447.51 million in the same period last year[41]. - Net profit for Q3 2018 was CNY 23.46 million, a significant decline from CNY 438.03 million in Q3 2017[41]. - The total comprehensive income attributable to shareholders for the first nine months of 2018 was CNY 238.11 million, down from CNY 790.31 million in the same period last year[42]. Cash Flow - Net cash flow from operating activities decreased by 55.89% to CNY 1,067,268,328.80 for the first nine months[8]. - Cash flow from operating activities for the first nine months was 1,067,268,328.80 RMB, a decrease of 55.8% from 2,419,616,973.24 RMB in the same period last year[50]. - Cash inflow from operating activities totaled 7,836,507,840.78 RMB, down 14.6% from 9,178,628,132.72 RMB year-on-year[50]. - Cash outflow from operating activities was 6,769,239,511.98 RMB, slightly up from 6,759,011,159.48 RMB in the previous year[50]. - Cash flow from financing activities showed a net outflow of -1,073,151,410.21 RMB, a significant decrease from a net inflow of 3,245,883,472.34 RMB in the previous year[51]. - The cash and cash equivalents at the end of the period were 4,088,737,464.51 RMB, down from 6,314,564,722.29 RMB year-on-year[51]. Assets and Liabilities - Total assets increased by 4.81% to CNY 63,291,505,259.72 compared to the end of the previous year[8]. - The company's total assets reached ¥63,291,505,259.72, an increase of 4.7% compared to ¥60,390,928,285.33 at the beginning of the year[33]. - Total liabilities increased to ¥34,273,779,677.72, up from ¥32,122,841,643.90, reflecting a growth of 6.7%[33]. - The company's equity attributable to shareholders was ¥27,924,686,731.20, showing a slight decrease from ¥27,925,837,375.50 at the beginning of the year[33]. - The company's total non-current assets amounted to ¥55,471,182,270.84, an increase from ¥53,141,440,076.89 at the beginning of the year, reflecting a growth of 4.4%[32]. Shareholder Information - The total number of shareholders as of the report date was 111,202[12]. - The largest shareholder, China Ocean Shipping Group, holds 38.12% of the shares[11]. Operational Metrics - The company's total transportation volume reached 11,361.11 million tons, a year-on-year increase of 30.66%[15]. - The average daily earnings for VLCC on the Middle East-China route (TD3C) in Q3 2018 were USD 13,909, which is still below the industry average breakeven level[15]. - The company's operating costs increased by 37.12% year-on-year, reaching RMB 7.40 billion, primarily due to rising fuel prices and increased fleet capacity[21]. Government Support - The company received government subsidies amounting to CNY 3,630,645.17 for the first nine months[10]. Financial Strategy - The company plans to raise RMB 5.4 billion through a non-public offering to purchase 14 new oil tankers and 2 Panamax oil tankers[23]. - The company is focusing on expanding its market presence and enhancing operational efficiency to counterbalance rising costs and maintain profitability[40].

Financial Performance - The basic earnings per share for the first half of 2018 was -0.0535 yuan, a decrease of 125.33% compared to 0.2112 yuan in the same period last year[20]. - The diluted earnings per share for the same period was also -0.0535 yuan, reflecting the same decline of 125.33%[20]. - The weighted average return on net assets decreased to -0.77%, down by 3.84 percentage points from 3.07% in the previous year[20]. - The return on assets, after excluding non-recurring gains and losses, was -0.97%, a decrease of 4.70 percentage points from 3.73% in the same period last year[20]. - The company reported a significant decline in user data metrics, with a notable drop in operational performance compared to the previous year[20]. - The net profit attributable to shareholders was a loss of approximately CNY 215.72 million, a decrease of 125.33% year-on-year[21]. - The net cash flow from operating activities was approximately CNY 432.19 million, down 78.54% from the previous year[21]. - The company’s net profit attributable to shareholders was RMB -216 million, a decline of 125.33% year-on-year[51]. - EBITDA decreased to RMB 1.562 billion, down 30.42% year-on-year[51]. - The total operating revenue for the first half of 2018 was CNY 5,116,541,954.76, a slight increase from CNY 5,109,202,979.90 in the same period last year, representing a growth of approximately 0.14%[190]. - The total operating costs increased significantly to CNY 5,481,410,973.36 from CNY 4,138,180,228.48, marking an increase of about 32.5%[190]. - The net profit for the first half of 2018 was a loss of CNY 125,450,512.38, compared to a profit of CNY 908,492,332.75 in the previous year, indicating a decline of over 113.8%[191]. Revenue and Costs - The company's operating revenue for the first half of the year was approximately CNY 5.12 billion, a slight increase of 0.14% compared to the same period last year[21]. - Main business revenue was RMB 5.051 billion, an increase of 1.19% compared to the previous year[51]. - Main business costs rose to RMB 4.569 billion, reflecting a year-on-year increase of 31.35%[51]. - The total operating cost for the main business was approximately RMB 4.57 billion in the first half of 2018, a year-on-year increase of 31.35%[62]. - The financial report received a standard unqualified audit opinion from the accounting firm[5]. Assets and Liabilities - The total assets at the end of the reporting period were approximately CNY 61.86 billion, an increase of 2.45% compared to the end of the previous year[21]. - The company’s net assets attributable to shareholders decreased by 1.15% to approximately CNY 27.60 billion compared to the previous year[21]. - The company’s overseas assets amounted to RMB 38.727 billion, accounting for 62.60% of total assets[36]. - Total liabilities rose to CNY 33.27 billion from CNY 32.12 billion, an increase of about 3.58%[185]. - Long-term borrowings increased to CNY 17.72 billion from CNY 17.27 billion, reflecting a growth of approximately 2.60%[185]. - Shareholders' equity totaled CNY 28.60 billion, up from CNY 28.26 billion, indicating an increase of about 1.20%[185]. Market Position and Strategy - The company maintained a market share of over 55% in the coastal crude oil transportation sector, solidifying its position as the industry leader[29]. - The company has outlined future strategies focusing on market expansion and technological innovation to improve performance[20]. - The company plans to enhance its LNG and new energy transportation capabilities, aiming to capitalize on the growing LNG market and strengthen strategic alliances with major oil companies[72]. - The company aims to optimize its fleet positioning and market forecasting through data analysis, focusing on improving operational efficiency[71]. - The company will continue to pursue a strategy of integrating traditional and emerging markets, enhancing its service offerings in the oil tanker transportation sector[71]. Investments and Acquisitions - The company completed the acquisition of PetroChina's refined oil fleet in March 2018, enhancing its position in the coastal refined oil transportation market[29]. - The company completed the acquisition of a 51% stake in Dalian PetroChina Shipping Co., Ltd. for approximately 397 million yuan[84]. - The company has invested in 38 LNG vessels, with 22 currently in operation, contributing to its leadership in the LNG transportation market[31]. - The company has invested in 32 LNG vessels through joint ventures, with 16 vessels already in operation[86]. Environmental and Social Responsibility - The company is actively investing in the construction of liquefied natural gas (LNG) transport vessels to contribute to the national clean energy strategy[138]. - The company has engaged in various poverty alleviation projects, including tourism and agricultural development, to enhance local economic conditions[134]. - The company has committed to establishing scholarships and grants to assist 30 high-achieving but financially challenged high school graduates in Yuanling County[137]. - The company has implemented energy-saving technologies and economic sailing speeds to reduce fuel consumption, but cannot fully mitigate the risks associated with fuel price fluctuations[98]. Governance and Compliance - The company has committed to maintaining independence from its controlling shareholder, China Ocean Shipping Group, in terms of personnel, finance, and operations[109]. - The company has implemented measures to avoid or minimize related party transactions with its controlling shareholder[109]. - The company is focused on ensuring fair and transparent related party transactions in compliance with legal regulations[109]. - The company has a commitment from its controlling shareholder to ensure that the net profit for Dalian Oil Transport from 2016 to 2018 will not be less than RMB 819 million[109]. Risks and Challenges - The company faces risks from intense competition in the shipping market, with global oil tanker capacity growth outpacing demand, resulting in decreased vessel utilization rates[95]. - The company anticipates potential fluctuations in net profit due to macroeconomic conditions and competitive pressures in the shipping industry[93]. - The company faces significant risks from maritime safety incidents, including piracy, which remains a major threat despite preventive measures[99]. - The company has a high proportion of dollar-denominated liabilities, which may expose it to exchange rate risks as its foreign trade business expands[101].