2020-08-27 16:00Financial Performance - Operating revenue for the first half of 2020 was RMB 929,045 million, down 22.3% year-on-year[8]. - The net loss attributable to shareholders of the parent company was RMB 29,983 million, representing a decline of 205.5% compared to a profit of RMB 28,423 million in the same period last year[8]. - Basic and diluted earnings per share were both RMB (0.164), compared to RMB 0.155 in the same period last year, reflecting a decline of 205.5%[8]. - The company's total revenue for the six months ended June 30, 2020, was RMB 929,045 million, a decrease from RMB 1,196,259 million for the same period in 2019, representing a decline of approximately 22.3%[144]. - The net loss attributable to shareholders for the six months ended June 30, 2020, was RMB 29,986 million, compared to a profit of RMB 28,420 million for the same period in 2019[144]. - The operating loss for the six months ended June 30, 2020, was RMB 19,753 million, compared to an operating profit of RMB 65,092 million for the same period in 2019[144]. - The company's total comprehensive loss for the six months ended June 30, 2020, was RMB 23,760 million, compared to a comprehensive income of RMB 42,142 million for the same period in 2019[144]. Cash Flow and Liquidity - The net cash flow from operating activities was RMB 79,080 million, a decrease of 41.2% from RMB 134,425 million in the previous year[8]. - The net cash flow from operating activities for the first half of 2020 was RMB 79,080 million, a decrease of 41.5% compared to RMB 134,425 million for the same period in 2019[145]. - Cash inflows from operating activities totaled RMB 1,060,809 million, down 22.2% from RMB 1,362,497 million in the previous year[145]. - Cash outflows from operating activities were RMB 981,729 million, a reduction of 20.1% compared to RMB 1,228,072 million in the prior year[145]. - The total cash and cash equivalents at the end of the period was RMB 90,335 million, slightly down from RMB 90,640 million at the end of June 2019[145]. Assets and Liabilities - Total assets as of June 30, 2020, were RMB 2,677,347 million, a decrease of 2.0% compared to the previous year[8]. - The total liabilities as of June 30, 2020, amounted to RMB 1,276,959 million, slightly down from RMB 1,288,612 million at the end of 2019[141]. - The company's total equity as of June 30, 2020, was RMB 1,400,665 million, down from RMB 1,444,578 million at the end of 2019[141]. - The company's long-term borrowings as of June 30, 2020, were RMB 223,452 million, an increase from RMB 174,411 million at the end of 2019[141]. Production and Operations - In the first half of 2020, the company's crude oil production reached 475.4 million barrels, a 5.2% increase compared to 451.9 million barrels in the same period of 2019[28]. - The company achieved a total oil and gas equivalent production of 833.7 million barrels, reflecting a 7.0% increase from 779.4 million barrels year-on-year[28]. - The company processed 568.2 million barrels of crude oil, down 4.9% from 597.4 million barrels in the first half of 2019[30]. - The production of chemical products increased by 9.5% to 13.847 million tons, with ethylene production rising by 4.0%[30]. - The company’s natural gas production reached 950 billion cubic meters, a 9.9% increase year-on-year[24]. Dividends and Shareholder Information - The total interim dividend declared was RMB 0.08742 per share, amounting to a total of RMB 16 billion based on the total share capital of 183,020,977,818 shares as of June 30, 2020[3]. - The company has maintained a cash dividend policy of distributing no less than 30% of the net profit attributable to the parent company, with a current payout ratio of 45%[71]. - For the fiscal year 2019, the final dividend distributed was RMB 0.06601 per share, totaling RMB 12.081 billion, paid on June 30, 2020, for A shares and July 31, 2020, for H shares[71]. - The interim dividend for 2020 is set at RMB 0.08742 per share, amounting to a total of RMB 16 billion, with payment scheduled for October 30, 2020[72]. Governance and Compliance - The board of directors increased from 9 to 11 members, enhancing governance and operational oversight during the reporting period[69]. - The company held 2 shareholder meetings and 5 board meetings, resulting in 14 shareholder resolutions and 25 board resolutions, ensuring compliance with regulatory requirements[69]. - The company has adhered to the corporate governance code and made necessary adjustments to its board composition during the reporting period[70]. - The company and its current directors, supervisors, senior management, controlling shareholders, and actual controllers have not faced any investigations or legal actions during the reporting period[86]. Market and Economic Environment - The average international crude oil price significantly decreased compared to the same period last year, impacting the company's operational performance[22]. - The company faced unprecedented challenges due to the significant decline in domestic oil and gas demand[22]. - The GDP of China decreased by 6.8% year-on-year in Q1 2020, but showed a recovery with a 3.2% year-on-year growth in Q2 2020[22]. - The company is exposed to oil and gas price volatility, which is influenced by global political and economic factors[102]. Strategic Initiatives - The company aims to maintain strategic focus and high-quality development despite significant risks and uncertainties in the global economy and oil market[64]. - In exploration and production, the company will focus on increasing gas output and enhancing exploration efficiency, particularly in key basins and areas[65]. - The refining and chemical segment will prioritize structural adjustments and transformation, aiming to increase the production of high-value products while optimizing resource utilization[65]. - The company plans to improve the quality of refined oil marketing by enhancing regional collaboration and implementing precise marketing strategies[65]. Related Party Transactions - The total amount of related party transactions during the reporting period was RMB 157,083 million, with sales to related parties amounting to RMB 47,049 million, representing 5% of similar transaction amounts[82]. - The company has ongoing related party transactions with China National Petroleum Corporation, including product and service supply agreements[79]. Environmental and Social Responsibility - CNPC is actively pursuing environmental protection measures, complying with the Environmental Protection Law of the People's Republic of China[97]. - The company has disclosed its environmental information in accordance with regulations, as some subsidiaries are key pollutant discharge units[97].