Financial Performance - The company's operating revenue for the first half of 2023 was RMB 44,937,051, a decrease of 2.10% compared to the same period last year[7]. - The total loss for the period was RMB -1,211,974, representing an increase in loss of 173.83% year-on-year[7]. - The net loss attributable to shareholders of the parent company was RMB -988,277, an increase of 126.65% compared to the previous year[7]. - The basic loss per share for the period was RMB -0.092, compared to RMB -0.040 in the same period last year[9]. - The company reported a gross loss of RMB 1,090,281 thousand, compared to a gross loss of RMB 539,032 thousand in the previous year[106]. - The net loss for the period was RMB 964,097 thousand, compared to a net loss of RMB 421,379 thousand in the prior year[108]. - The total comprehensive income for the six months ended June 30, 2023, was RMB (985,707) thousand, compared to RMB (157,357) thousand for the same period in 2022, indicating a challenging financial environment[193]. Cash Flow and Liquidity - The net cash flow used in operating activities was RMB -226,882, a significant decline of 96.46% from the previous year[7]. - The company's cash flow from operating activities for the first half of 2023 showed a positive trend, contributing to the overall liquidity position of the company[187]. - The net cash flow from investment activities for the first half of 2023 was RMB 513,477 thousand, a decline from RMB 1,776,708 thousand in the first half of 2022[195]. - The company reported a net cash inflow from financing activities of RMB 3,427,414 thousand for the first half of 2023, compared to RMB 1,946,321 thousand in the same period of 2022, representing a year-over-year increase of approximately 76%[196]. - The total cash and cash equivalents at the end of June 2023 amounted to RMB 4,610,758 thousand, up from RMB 2,438,650 thousand at the end of June 2022, indicating a significant increase of approximately 89%[196]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 41,701,821, an increase of 1.11% compared to the end of the previous year[7]. - The total liabilities increased to RMB 15,428,340 thousand from RMB 13,998,338 thousand, marking a growth of 10.24%[188]. - The company's total equity as of June 30, 2023, was RMB 26,273,481 thousand, reflecting an increase from RMB 25,244,444 thousand at the end of 2022, a growth of 4.08%[188]. - The company's long-term equity investments decreased to RMB 3,384,009 thousand from RMB 3,594,393 thousand, a decline of 5.85%[188]. Operational Highlights - Total production of main products reached 6.3172 million tons, an increase of 16.30% year-on-year[16]. - The company achieved a product sales rate of 98.93% and a cash collection rate of 100% (excluding related parties) in the first half of 2023[16]. - The company processed a total of 7.0939 million tons of crude oil, including 403,100 tons of processing for others, representing a year-on-year increase of 22.41%[16]. - The company is actively adjusting its product structure and improving product quality to meet the increasing domestic demand for high-quality petrochemical products[13]. Research and Development - R&D expenses increased to RMB 68,062 thousand, up 86.85% compared to RMB 36,426 thousand in 2022[30]. - The company is focusing on technological advancements in the refining and chemical industry, including new production technologies and green chemical products[13]. Market Position and Strategy - The company is positioned in the rapidly growing East China region, which is a key market for high-quality petrochemical products[13]. - The company emphasizes its competitive advantages in quality, geographical location, and vertical integration in production[14]. - The company has over 50 years of experience in petrochemical production and management, contributing to its strong market position[14]. Environmental Compliance - The company has been recognized as a "Green Enterprise" by Sinopec Group, reflecting its commitment to environmental protection[70]. - The company achieved a 100% compliance rate for sulfur dioxide emissions, with an actual average concentration of 0.01-30 mg/m3 against a permissible limit of 10-100 mg/m3[71]. - The company has implemented stringent measures to control emissions, exceeding national and local standards[70]. Shareholder Information - Sinopec Corp. holds 5.459 billion shares, representing 50.55% of the total shares, which gives it absolute control over the company[48]. - The company has a total issued share capital of 10,785,000,000 shares, with 67.84% owned directly or indirectly by China Petroleum Group[90]. - The company did not declare any interim dividends for the six months ended June 30, 2023, consistent with the previous year[141]. Risks and Challenges - The company faces risks related to the cyclical nature of the oil and petrochemical market, which can significantly impact operating performance due to price fluctuations[42]. - The company relies on imported crude oil for over 95% of its production, exposing it to procurement risks and the inability to fully pass on increased costs to customers[43]. - Fluctuations in the RMB exchange rate against the USD and other currencies may adversely affect the company's business and financial results[46].
上海石油化工股份(00338) - 2023 - 中期财报