Financial Performance - The company's operating revenue for the first half of 2021 was RMB 37,136,606 thousand, representing a 4.13% increase compared to RMB 35,663,352 thousand in the same period last year[7]. - The total profit for the reporting period was RMB 1,510,713 thousand, a significant recovery from a loss of RMB 2,354,618 thousand in the previous year[7]. - Net profit attributable to shareholders of the parent company was RMB 1,244,189 thousand, compared to a loss of RMB 1,716,072 thousand in the same period last year[7]. - Basic earnings per share for the reporting period were RMB 0.115, a recovery from a loss of RMB 0.159 in the same period last year[9]. - The weighted average return on net assets increased to 4.164%, up 10.75 percentage points from -6.588% in the previous year[9]. - The net profit attributable to shareholders was RMB 1.2765 billion, up RMB 2.9473 billion from a loss of RMB 1.6708 billion in the previous year[16]. - The gross profit margin for oil products was 31.9%, reflecting an increase of 8.39 percentage points year-on-year[36]. - The net profit for the six months ended June 30, 2021, was RMB 1,276,462 thousand, contributing to a total comprehensive income of RMB 1,328,893 thousand[115]. Revenue and Sales - The company's revenue for the first half of 2021 was RMB 37.0885 billion, an increase of RMB 1.461 billion or 4.10% year-on-year[16]. - In the first half of 2021, the company achieved a net sales amount of RMB 31.636 billion, an increase of 5.71% compared to the same period last year[21]. - The sales revenue for synthetic fibers, resins and plastics, and petroleum products increased by 1.55%, 5.58%, and 15.84% respectively, while intermediate petrochemical products and petrochemical product trading decreased by 6.23% and 11.43%[21]. - Oil product sales revenue reached RMB 19,501,406 thousand for the six months ended June 30, 2021, an increase from RMB 18,977,693 thousand in the same period of 2020[183]. Production and Operations - The total production of main products decreased by 11.19% year-on-year to 5.9085 million tons due to major maintenance activities[16]. - The crude oil processing volume was 6.2101 million tons, a decrease of 11.52% compared to the same period last year[16]. - The production of finished oil was 3.6183 million tons, down 8.34% year-on-year, with gasoline production decreasing by 0.86% and diesel by 15.67%[16]. - Ethylene production fell by 25.92% to 303,000 tons, while synthetic fiber polymer production increased by 3.80% to 171,900 tons[16]. - The company completed its largest historical maintenance project, involving 58 units over a period of nearly three and a half months[16]. Cash Flow and Financial Position - The net cash flow from operating activities improved to RMB -2,389,552 thousand, a 17.72% reduction in cash outflow compared to RMB -2,904,166 thousand in the previous year[7]. - The company's cash and cash equivalents decreased significantly to RMB 1,367,415 thousand from RMB 6,916,408 thousand, a decrease of about 80.24%[110]. - The company's cash and cash equivalents included short-term deposits of RMB 9,087,104,000 as of June 30, 2021, down from RMB 11,092,283,000 as of December 31, 2020[142]. - The company's operating cash outflow was RMB 2.4434 billion, an improvement from RMB 2.9389 billion in the same period last year[24]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 46,829,792 thousand, reflecting a 4.65% increase from RMB 44,749,173 thousand at the end of the previous year[7]. - The total liabilities increased to RMB 17,224,087 thousand, an increase from RMB 15,394,155 thousand, which is a rise of about 11.9%[200]. - The asset-liability ratio as of June 30, 2021, was 36.65%, up from 35.92% on June 30, 2020[27]. - The company's total liabilities increased to RMB 10,199,742,000 as of June 30, 2021, from RMB 6,476,924,000 as of December 31, 2020, indicating a growth of 57.0%[153]. Environmental and Regulatory Compliance - The company maintained a 100% compliance rate for wastewater discharge in the first half of the year, with significant reductions in emissions of COD, ammonia nitrogen, and nitrogen oxides by 32.36%, 39.59%, and 18.79% respectively[17]. - The company has received multiple environmental certifications, including ISO 14001, and continues to promote green development initiatives[68]. - The company has established a comprehensive emergency response plan for environmental incidents, which includes 11 aspects such as risk analysis and emergency response measures[72]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[76]. Investment and Capital Expenditure - The group's capital expenditure in the first half of 2021 was RMB 1.193 billion, primarily for projects including 24,000 tons/year raw silk and 12,000 tons/year 48K tow carbon fiber[26]. - The capital expenditure for 2021 is estimated to be around RMB 3.25 billion, funded through self-owned funds and bank loans[47]. - The company has ongoing projects including a 24,000 tons/year carbon fiber project with an investment of RMB 3.489638 billion, which is currently under construction[43]. Risks and Challenges - The company has outlined potential risks in its report, advising investors to be aware of investment risks[5]. - The company faces risks from the cyclical nature of the oil and petrochemical market, which may adversely affect its operations due to price fluctuations[45]. - The company relies on imported crude oil for over 95% of its needs, exposing it to procurement risks and potential cost increases due to rising oil prices[46]. - Currency fluctuations, particularly the depreciation of the RMB, could negatively impact the company's costs and profitability, especially since a portion of its procurement is denominated in foreign currencies[49]. Shareholder Structure and Governance - The company has a controlling shareholder, Sinopec Limited, holding 5.46 billion shares, accounting for 50.44% of the total shares, which may influence the company's operations and financial distribution negatively for minority shareholders[51]. - The company maintained a stable shareholder structure with no new major shareholders entering during the reporting period[86]. - The top ten shareholders include China Petroleum & Chemical Corporation holding 50.44% of shares, and Hong Kong Central Clearing Limited holding 31.91%[83]. - The company has complied with all provisions of the Corporate Governance Code as per the Hong Kong Listing Rules during the reporting period[102].
上海石油化工股份(00338) - 2021 - 中期财报