2023-08-27 16:00Financial Performance - For the first half of 2023, the company's operating revenue was RMB 1,593,682 million, a decrease of 1.1% compared to the same period in 2022[7]. - The net profit attributable to shareholders of the parent company was RMB 35,111 million, down 20.1% year-on-year[7]. - The net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB 33,655 million, a decrease of 22.4% compared to the previous year[7]. - Basic earnings per share for the first half of 2023 were RMB 0.293, a decrease of 19.3% compared to the same period in 2022[9]. - The weighted average return on net assets was 4.43%, down 1.18 percentage points year-on-year[9]. - The company's total revenue for the first half of 2023 was RMB 53,696 million, a decrease of 14.7% compared to RMB 62,924 million in the same period of 2022[13]. - The net profit attributable to shareholders for the first half of 2023 was RMB 36,122 million, down 19.4% from RMB 44,841 million in the first half of 2022[13]. - The company's operating income for the first half of 2023 was RMB 810.5 billion, a year-on-year decrease of 11.2%, primarily due to lower trade prices for crude oil and refined products[57]. - The net profit for the six months ended June 30, 2023, was RMB 40,476 million, a decrease of 18.9% compared to RMB 49,944 million for the same period in 2022[145]. - The total comprehensive income for the six months ended June 30, 2023, was RMB 35,382 million, down from RMB 66,651 million in the same period of 2022, a decline of 46.9%[147]. Cash Flow and Financing - The net cash flow from operating activities was RMB 27,562 million, an increase of 457.1% year-on-year[7]. - The company's cash flow from operating activities for the first half of 2023 increased significantly to RMB 27,562 million, a 457.1% increase from RMB 4,947 million in the same period of 2022[13]. - The company's financing activities generated a net cash inflow of RMB 66.9 billion in the first half of 2023, a decrease of RMB 8.4 billion year-on-year[61]. - The company's net cash inflow from operating activities for the first half of 2023 was RMB 27.6 billion, a significant increase of RMB 22.6 billion year-on-year[62]. - Cash paid for operating activities decreased to RMB 632,206 million from RMB 719,144 million year-on-year, reflecting improved cash management[151]. - The company reported a cash interest coverage ratio of 9.81, an increase from 5.84 in the previous year[139]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 2,026,902 million, reflecting a 3.9% increase from the end of 2022[8]. - The company's total liabilities amounted to RMB 1,078.3 billion, an increase of RMB 66.7 billion compared to the end of 2022[60]. - The company's total assets reached RMB 2,026.9 billion as of June 30, 2023, reflecting an increase of RMB 75.8 billion from the end of 2022, primarily due to increased inventory and accounts receivable[68]. - The company's short-term borrowings increased significantly to RMB 99,132 million, compared to RMB 21,313 million at the end of 2022, to ensure liquidity for operations[11]. - The company's long-term borrowings also increased by 68.5% to RMB 160,017 million, reflecting the need for investment and operational funding[11]. - As of June 30, 2023, total liabilities stood at RMB 1,077,421 million, compared to RMB 1,010,664 million, which is an increase of about 6.6%[142]. Production and Operations - The company's oil and gas equivalent production for the first half of 2023 was 250 million barrels, representing a year-on-year increase of 3.3%[18]. - Natural gas production reached 6,609 billion cubic feet in the first half of 2023, up 7.6% from the previous year[18]. - In the first half of 2023, the company processed 12.654 million tons of crude oil, a year-on-year increase of 4.8%, and produced 7.607 million tons of refined oil, up 10.3% year-on-year, with kerosene production increasing by 63.5%[20]. - Total sales of refined oil reached 11.66 million tons, representing an 18.5% year-on-year growth, with domestic sales at 9.247 million tons, up 17.9%[22]. - The company’s ethylene production was 6.875 million tons, a slight increase of 0.4% compared to the same period last year[25]. Capital Expenditures and Investments - Capital expenditures for the first half of 2023 amounted to RMB 74.667 billion, with RMB 33.420 billion allocated to exploration and development, RMB 7.063 billion to refining, and RMB 30.036 billion to the chemical sector[28]. - Capital expenditures for the second half of the year are planned at RMB 104 billion, with RMB 41 billion allocated for exploration and development[30]. - The company completed investments of RMB 112.5 billion in the Zhenhai Refining and Chemical expansion project, which includes a new 11 million tons/year refining unit and is expected to be fully completed by December 2024[100]. - The Tianjin Nangang Ethylene and downstream high-end new materials industry cluster project has seen cumulative investments of RMB 170.2 billion, with a planned completion by the end of 2023[101]. - The company has invested RMB 38.4 billion in the Yizheng Chemical Fiber PTA project, which is expected to be completed by August 2023[102]. Environmental and Social Responsibility - The company achieved a 13% year-on-year reduction in COD emissions and a 2% decrease in sulfur dioxide emissions, with a 100% proper disposal rate for hazardous waste[86]. - The company reduced carbon emissions by 2.26 million tons of CO2 equivalent during the reporting period and recovered 843,000 tons of CO2[87]. - The company maintained a 99.99% compliance rate for air pollutant emissions, with actual emissions of 2,409 tons of sulfur dioxide[89]. - The company reported a total of RMB 49,000 in administrative penalties due to environmental issues during the reporting period[97]. - The company has expanded its educational assistance programs, increasing the number of supported schools from 37 to 59, and completed consumption assistance totaling RMB 400 million[99]. Corporate Governance and Management - The company has undergone significant management changes, including the appointment of a new executive director and several resignations due to age[75]. - The company is committed to ensuring compliance with securities trading regulations among its directors and senior management[76]. - The company has engaged KPMG as its external auditor for the 2023 fiscal year, ensuring continued oversight of financial reporting[72]. - The company has authorized the board to decide on the issuance of debt financing instruments and to repurchase shares[72]. - Sinopec's future three-year shareholder return plan (2023-2025) was discussed, emphasizing ongoing shareholder value creation[74]. Market Position and Strategy - The company has a strong market position, being the largest refined oil and chemical supplier in China, with a refining capacity ranked first globally[107]. - The company is focusing on optimizing operations, market expansion, and innovation development in response to anticipated economic recovery in China[29]. - The company aims to enhance its integrated marketing strategy and expand its hydrogen energy applications, transitioning towards a comprehensive energy service provider[21]. - Sinopec's overseas business expansion faces challenges due to geopolitical changes, economic uncertainties, and legal risks in host countries[129]. - The company is committed to a green transformation strategy, focusing on the development of hydrogen energy and high-end chemical materials[107].