上海石油化工股份(00338) - 2024 - 中期业绩

Important Notes This section provides crucial introductory information regarding the report's nature and the company's basic listing details Report Summary Explanation This document provides a summary of the company's 2024 semi-annual report for the six months ended June 30, 2024, with investors advised to consult the full report for comprehensive details - This report is a semi-annual report summary, with detailed content requiring consultation of the full report[1] Company Profile This section provides the company's basic information, including stock listing details on the Shanghai Stock Exchange and Hong Kong Stock Exchange, and contact information for the Board Secretary Company Listing Information | Stock Exchange Listed On | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | | Shanghai Stock Exchange | Shanghai Petrochemical | 600688 | | Hong Kong Stock Exchange | Shanghai Petrochemical Co. | 00338 | Key Financial Data and Shareholder Information This section presents the company's primary accounting and financial data, along with details on major shareholders and their equity holdings Key Accounting Data According to China Enterprise Accounting Standards, the company achieved a significant turnaround in the first half of 2024, with net profit attributable to parent company shareholders of RMB 27.912 million, compared to a loss of RMB 988.277 million in the same period last year, while operating revenue slightly decreased by 3.12%, and operating cash flow turned positive, with total assets increasing by 8.28% from the end of the previous year Key Accounting Data (According to China Enterprise Accounting Standards) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB '000) | 43,532,806 | 44,937,051 | -3.12% | | Net Profit Attributable to Parent Company Shareholders (RMB '000) | 27,912 | -988,277 | Not Applicable (Turned Profit) | | Net Cash Flow from Operating Activities (RMB '000) | 341,970 | -226,882 | Not Applicable (Turned Positive) | | Asset Status | End of Current Period | End of Prior Year | Period-end vs. Year-start Change (%) | | Total Assets (RMB '000) | 42,941,617 | 39,658,244 | 8.28% | Key Financial Indicators (According to China Enterprise Accounting Standards) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/Share) | 0.003 | -0.092 | Not Applicable | | Weighted Average Return on Net Assets (%) | 0.113 | -3.818 | Increased by 3.931 percentage points | - There are differences between financial statements prepared under China Enterprise Accounting Standards and International Financial Reporting Standards, with net profit under international standards (RMB 2.845 million) significantly lower than under China standards (RMB 27.912 million)[7] - Non-recurring gains and losses totaled RMB -33.393 million during the reporting period, primarily due to other non-operating income and expenses[8] Major Shareholder Holdings As of the end of the reporting period, China Petroleum & Chemical Corporation is the controlling shareholder, holding 5,459,455,000 A shares, accounting for 50.51% of the company's total share capital, with HKSCC Nominees Limited being the second largest holder with 3,303,196,780 overseas listed foreign shares Top Five Non-Restricted Shareholders' Holdings | Shareholder Name | Number of Shares Held | Type of Shares | | :--- | :--- | :--- | | China Petroleum & Chemical Corporation | 5,459,455,000 | RMB Ordinary Shares | | HKSCC Nominees Limited | 3,303,196,780 | Overseas Listed Foreign Shares | | Hong Kong Securities Clearing Company Limited | 55,167,595 | RMB Ordinary Shares | | Southern Asset Management - Agricultural Bank of China - Southern CSI Financial Asset Management Plan | 39,031,700 | RMB Ordinary Shares | | GF Fund Management - Agricultural Bank of China - GF CSI Financial Asset Management Plan | 38,039,800 | RMB Ordinary Shares | Major Shareholder Interests and Short Positions This section discloses the interests and short positions of major shareholders (holding 5% or more) in the company's shares as per the Securities and Futures Ordinance, with China Petroleum & Chemical Corporation holding a 51.14% long position in A shares, and details also provided for Corn Capital Company Limited and Yardley Finance Limited's long and short positions in H shares - Controlling shareholder China Petroleum & Chemical Corporation holds 5,459,455,000 A shares, representing 51.14% of the total issued shares[13][14] Directors' and Supervisors' Interests and Short Positions This section discloses the company shares held by its directors and supervisors, with Executive Director Huang Xiangyu, Supervisor Zhang Feng, and Supervisor Chen Hongjun holding 140,000, 10,000, and 31,400 A shares respectively as of June 30, 2024 Directors' and Supervisors' Shareholdings | Name | Position | Number of Shares Held | | :--- | :--- | :--- | | Huang Xiangyu | Executive Director and Deputy General Manager | 140,000 A Shares | | Zhang Feng | Supervisor | 10,000 A Shares | | Chen Hongjun | Supervisor | 31,400 A Shares | Management Discussion and Analysis This section provides management's review and outlook on the company's operating performance, key financial results, investment activities, and profit distribution plans Operating Performance Review and Outlook In the first half of 2024, the Group successfully turned losses into profits by focusing on safety production, profitability, and high-quality development, despite a 3.12% decrease in revenue to RMB 43.49 billion, achieving a pre-tax profit of RMB 12 million compared to a RMB 1.19 billion loss in the prior year, with refined oil product output slightly increasing and jet fuel output significantly growing by 51%, while the company anticipates continued challenges in the second half and will focus on five key areas - The company successfully turned losses into profits in the first half of 2024, achieving a post-tax profit of RMB 3 million, an increase of RMB 970 million compared to a RMB 967 million loss in the prior year[19] H1 2024 Key Product Output | Product | Output (Ten Thousand Tons) | YoY Change | | :--- | :--- | :--- | | Total Main Products | 583.07 | -7.70% | | Crude Oil Processed | 665.29 | -6.22% | | Refined Oil Products | 428.47 | +0.43% | | - Jet Fuel | 123.23 | +51.00% | | - Diesel | 138.67 | -24.86% | | Ethylene | 21.98 | -38.47% | Net Sales Composition (Six Months Ended June 30) | Product Category | 2024 Net Sales (RMB Million) | Share (%) | 2023 Net Sales (RMB Million) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Refining Products | 24,948.22 | 66.53 | 24,470.70 | 63.29 | | Chemical Products | 8,757.87 | 23.36 | 9,504.53 | 24.59 | | Petrochemical Product Trading | 3,144.79 | 8.39 | 4,257.24 | 11.01 | | Other | 645.65 | 1.72 | 430.06 | 1.11 | | Total | 37,496.53 | 100.00 | 38,662.53 | 100.00 | - Looking ahead to the second half, the company anticipates continued complex and severe production and operating conditions due to global economic growth pressure and the chemical market remaining at a low point in its cycle, with a focus on ensuring safety and stability, achieving profitability, promoting transformation and upgrading, deepening reforms, and talent development[32][33] Analysis of Key Operating Performance This section provides an in-depth analysis of the reporting period's operating details, showing significant changes in financial statement items such as R&D expenses and other income due to increased R&D projects and government subsidies, a substantial year-on-year improvement in operating performance leading to a turnaround, an increase in refining product gross margin, a decrease in chemical product gross margin, with East China remaining the primary revenue source, and significant changes in assets and liabilities like cash, accounts receivable, and notes payable due to operating activities and funding arrangements - Several financial statement items changed by over 30%, with net profit attributable to parent company shareholders turning profitable primarily due to increased gross profit from petrochemical products; net cash flow from investing activities turned negative due to reduced recovery of time deposits and increased investment in joint ventures[35] Main Business by Product Category | Product Category | Operating Revenue (RMB '000) | Gross Margin (%) | YoY Change in Operating Revenue (%) | Change in Gross Margin vs. Prior Year Period | | :--- | :--- | :--- | :--- | :--- | | Refining Products | 30,856,418 | 22.04 | 0.59% | Increased by 2.80 percentage points | | Chemical Products | 8,837,013 | 0.67 | -7.18% | Decreased by 2.89 percentage points | | Petrochemical Product Trading | 3,147,406 | 1.56 | -26.13% | Increased by 0.21 percentage points | - The company's core competitiveness lies in its integrated refining and chemical scale, product quality, advantageous geographical location in the Yangtze River Delta core area, and cost and efficiency advantages from vertically integrated production[42] Investment Status Analysis During the reporting period, the company had no new entrusted wealth management, entrusted loans, or use of raised funds, and analysis of major subsidiaries and associates shows diversified performance, with Shanghai Jinchang's losses decreasing due to cessation of operations, while Shanghai Jinfei's profit declined due to lower product gross margins, and the company is advancing several non-fundraising projects, such as the thermal power unit renovation and thermoplastic elastomer project - During the reporting period, the company had no entrusted wealth management, entrusted loans, or use of raised funds[43][44] - The operating performance of major controlled and associated companies varied significantly compared to the prior year, for example, Shanghai Jinchang's net loss decreased by 60.77% year-on-year, while Shanghai Jinfei's net profit decreased by 213.80% year-on-year[48] Major Non-Fundraising Projects | Major Project | Total Project Investment (RMB '000) | Investment in Reporting Period (RMB '000) | Project Progress | | :--- | :--- | :--- | :--- | | Shanghai Petrochemical Thermal Power Unit Clean Efficiency Improvement Project | 3,287,711 | 62,790 | Basic Design Stage | | 250,000 Tons/Year Thermoplastic Elastomer Supporting Project | 211,326 | 43,850 | Under Construction | Profit Distribution Plan The company's 2023 annual general meeting approved a proposal not to distribute dividends or convert capital reserves into share capital for 2023, and similarly, there is no profit distribution or capital reserve conversion plan for the current reporting period - The company's 2023 profit distribution plan was to not distribute dividends or convert capital reserves into share capital, and there is no profit distribution or conversion plan for the current reporting period[50][51] Other Matters This section covers various other important matters, including changes in director and supervisor information, securities repurchase activities, and compliance with corporate governance codes Changes in Directors' and Supervisors' Information During the reporting period, significant personnel changes occurred in the company's board of directors, with Mr. Wan Tao resigning as chairman and Mr. Guo Xiaojun appointed as executive director, chairman, and chairman of relevant committees effective June 6, 2024 - Mr. Wan Tao resigned from his positions as executive director and chairman of the company effective April 12, 2024[52] - Mr. Guo Xiaojun was appointed as the new executive director and chairman of the company effective June 6, 2024[52] Purchase, Sale, and Redemption of Company Securities During the reporting period, the company repurchased 53,866,000 H shares on the Hong Kong Stock Exchange for approximately RMB 53.425 million under shareholder authorization, and together with shares repurchased in 2023, a total of 124,058,000 shares were cancelled on June 17, 2024 H1 2024 H Share Repurchase Details | Repurchase Month | Number of Shares Repurchased | Total Price (HKD) | | :--- | :--- | :--- | | 2024 Jan | 23,840,000 | 26,224,743.4 | | 2024 Feb | 17,358,000 | 18,359,206.6 | | 2024 Apr | 4,646,000 | 5,005,173.6 | | 2024 May | 5,384,000 | 6,188,706.2 | | 2024 Jun | 2,638,000 | 3,023,224.0 | - The company cancelled a total of 124,058,000 H shares on June 17, 2024, including those repurchased during the current period[55] Compliance with Corporate Governance and Dealing Codes The company applied and complied with all code provisions of Appendix C1 of the Hong Kong Listing Rules' Corporate Governance Code during the reporting period and adopted the Model Code for Securities Transactions by Directors of Listed Issuers to regulate securities transactions by directors and supervisors, with all directors, supervisors, and senior management confirming compliance - The company complied with the provisions of the Corporate Governance Code and the Model Code for Securities Transactions during the reporting period[56] Interim Financial Statements This section presents the company's interim financial statements prepared under both China Enterprise Accounting Standards and International Financial Reporting Standards Financial Statements Prepared Under China Enterprise Accounting Standards This section provides the unaudited consolidated and parent company interim financial statements prepared in accordance with China Enterprise Accounting Standards, including the balance sheet, income statement, cash flow statement, and statement of changes in shareholders' equity Consolidated Financial Statement Summary (China Enterprise Accounting Standards) | Item | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | | :--- | :--- | :--- | | Balance Sheet | | | | Total Assets | 42,941,617 | 39,658,244 | | Total Liabilities | 18,057,451 | 14,715,337 | | Total Equity Attributable to Parent Company Shareholders | 24,782,456 | 24,824,929 | | Income Statement (Jan-Jun) | 2024 | 2023 | | Operating Revenue | 43,532,806 | 44,937,051 | | Total Profit | 37,495 | -1,211,974 | | Net Profit Attributable to Parent Company Shareholders | 27,912 | -988,277 | Financial Statements Prepared Under International Financial Reporting Standards (Unaudited) This section provides the unaudited consolidated interim financial statements prepared in accordance with International Financial Reporting Standards (IFRS), showing the company achieved a profit of RMB 2.845 million during the reporting period compared to a loss of RMB 967 million in the prior year, and includes explanations of accounting policy changes and detailed revenue and operating profit information by business segment Consolidated Income Statement Summary (International Financial Reporting Standards) | Item (RMB '000) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 43,489,664 | 44,889,109 | | Profit/(Loss) for the Period | 6,331 | (964,097) | | Profit/(Loss) Attributable to Company Shareholders | 2,845 | (966,688) | Segment Operating Profit/(Loss) (International Financial Reporting Standards) | Segment (RMB '000) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Refining Products | 752,152 | (475,365) | | Chemical Products | (1,040,475) | (685,398) | | Petrochemical Product Trading | 10,044 | 5,808 | | Other | 110,913 | (51,572) | | Total Segment Operating Loss | (167,366) | (1,206,527) |