Financial Performance - For the first half of 2021, the company's revenue was RMB 1,551.54 million, a decrease of 14.1% compared to RMB 1,807.06 million in the same period last year [11]. - The gross profit for the first half of 2021 was approximately RMB 318 million, down 47.6% from RMB 608 million year-on-year [19]. - The company reported a loss attributable to shareholders of approximately RMB 729.66 million, compared to a profit of RMB 311.61 million in the same period last year, representing a decline of 334.2% [11]. - The company's gross margin decreased to 20.5% from 33.6% year-on-year, a decline of 13.1% [15]. - The net loss attributable to shareholders was approximately RMB 73 million, with a net loss margin of 4.7%, compared to a profit of RMB 31 million and a net profit margin of 1.7% in the same period last year [60]. - EBITDA for the period was approximately RMB 82 million, down from RMB 255 million in the previous year, resulting in an EBITDA margin of 5.3%, down from 14.1% [61]. - The company reported a loss before tax of RMB 71,674,000 for the first half of 2021, compared to a profit of RMB 52,042,000 in the same period of 2020 [148]. - The total comprehensive loss for the first half of 2021 was RMB 63,979 thousand, compared to a total comprehensive income of RMB 45,496 thousand in 2020 [122]. Assets and Liabilities - Total non-current assets as of June 30, 2021, were RMB 4,172.98 million, a decrease of 1.6% from RMB 4,240.98 million at the end of 2020 [11]. - Current assets increased by 9.2% to RMB 8,487.47 million from RMB 7,771.40 million at the end of 2020 [11]. - Total liabilities rose by 9.5% to RMB 8,229.48 million from RMB 7,517.75 million at the end of 2020 [11]. - Total assets as of June 30, 2021, were approximately RMB 12.660 billion, with current assets accounting for about 67.0% of total assets, an increase of RMB 716 million from December 31, 2020 [66]. - The total liabilities of the group as of June 30, 2021, were approximately RMB 8.229 billion, with current liabilities making up about 70.6% of total liabilities, an increase of RMB 640 million from December 31, 2020 [67]. - The debt-to-asset ratio of the group as of June 30, 2021, was 65.0%, an increase of 2.4 percentage points from December 31, 2020 [67]. Market and Production Insights - The average price of West Texas Intermediate (WTI) crude oil was $62.20 per barrel in the first half of 2021, an increase of 70.0% year-on-year [20]. - The average price of Brent crude oil was $65.00 per barrel, reflecting a year-on-year increase of 62.7% [20]. - In the first half of 2021, domestic crude oil production reached 99.32 million tons, an increase of 2.4% year-on-year, while natural gas production was 104.5 billion cubic meters, up 10.9% year-on-year [22]. - The company anticipates a rebound in global natural gas demand by 3.6% in 2021, with expectations to reach nearly 4.3 trillion cubic meters by 2024, a 7% increase compared to pre-pandemic levels [21]. Sales and Orders - The company achieved sales of 3 drilling rigs totaling approximately RMB 56 million, a decrease of 91.0% compared to RMB 619 million in the same period last year; however, sales of spare parts increased by 83.0% to RMB 860 million [26]. - The company signed new orders for offshore wind power projects totaling approximately RMB 110 million in the first half of 2021 [27]. - The company’s backlog of orders for drilling rigs and related products amounted to approximately RMB 1.17 billion as of June 30, 2021 [28]. - Revenue from external customers in China was RMB 1,250,586,000, representing an increase of 24.8% from RMB 1,001,667,000 in 2020 [151]. Technological Developments - The company launched the first nationwide "one-click linkage" automation equipment system, significantly improving drilling efficiency [27]. - The company upgraded its digital drilling system to UNISON 2.0, integrating complex mechanical controls into a unified platform for real-time data access [26]. - The company established a digital fracturing simulation laboratory to provide a testing environment for fracturing software products, enhancing the development of digital and intelligent fracturing equipment [31]. - The company’s electric fracturing service received widespread market recognition, with new orders for fracturing engineering services increasing by 41% year-on-year [31]. Workforce and Operations - Huahua's workforce as of June 30, 2021, totaled 3,282, a decrease of 12.7% compared to the same period last year [42]. - In the first half of 2021, Huahua's drilling teams completed a total footage of approximately 13,739 meters, a decrease of 75.6% compared to the same period last year, with total sales revenue of approximately RMB 136 million, down 25.3% year-on-year [35]. Cash Flow and Financing - The net cash outflow from operating activities during the period was approximately RMB 823 million, while financing activities generated a net inflow of approximately RMB 380 million [64]. - The company reported a basic and diluted loss per share of RMB (1.38) for the first half of 2021, compared to earnings of RMB 0.59 per share in 2020 [120]. - The company incurred a loss of RMB (1,400,551) thousand in loan repayments during the first half of 2021, compared to RMB (997,478) thousand in the same period of 2020 [137]. Shareholder Information - The company has a total of 318,202,548 shares held by Wealth Afflux Limited, representing 5.94% of the issued share capital [85]. - The total number of shares held by Kewah Technology Limited is 1,606,000,000, which accounts for 29.98% of the issued share capital [85]. - The company has not recommended the distribution of interim dividends for the six months ended June 30, 2021, similar to the previous year [168].
宏华集团(00196) - 2021 - 中期财报