2019-09-20 08:42Financial Performance - Operating revenue rose by 6.8% to RMB 1,196,259 million year-on-year[14] - Net profit attributable to shareholders increased by 3.6% to RMB 28,423 million compared to the same period last year[14] - Basic earnings per share rose to RMB 0.155, reflecting a 3.6% increase year-on-year[14] - The company achieved operating revenue of RMB 119.63 billion in the first half of 2019, an increase of 6.8% compared to RMB 112.00 billion in the same period of 2018[39] - Net profit attributable to shareholders of the parent company was RMB 28.42 billion, up 3.6% from RMB 27.44 billion in the previous year[43] - The total comprehensive income for the six months ended June 30, 2019, was RMB 42,142 million, compared to RMB 36,330 million in the same period of 2018, reflecting an increase of approximately 15.5%[124] - The company's operating profit for the six months ended June 30, 2019, was RMB 65,092 million, slightly down from RMB 65,848 million in the same period of 2018, a decrease of about 1.1%[124] Assets and Liabilities - Total assets increased by 8.1% to RMB 2,637,490 million compared to the previous year[13] - The group's total liabilities increased by 17.4% to RMB 1,211.66 billion, up from RMB 1,031.99 billion at the end of 2018[51] - The total equity under IFRS is RMB 1,425.835 billion, while under Chinese Accounting Standards it is RMB 1,426.117 billion, with a difference of RMB 0.282 billion[17] - The company's total assets reached RMB 2,637,779 million as of June 30, 2019, compared to RMB 2,441,169 million at the end of 2018, marking an increase of about 8.0%[122] - The company's total equity as of June 30, 2019, was RMB 1,426,117 million, an increase from RMB 1,409,176 million at the end of 2018, indicating a growth of about 1.2%[122] Cash Flow - Cash flow from operating activities decreased by 9.1% to RMB 134,425 million compared to the previous year[14] - The net cash flow from operating activities for the first half of 2019 was RMB 134.43 billion, a decrease of 9.1% from RMB 147.87 billion in the same period of 2018[53] - The net cash flow used in investing activities was RMB 129.97 billion, an increase of 30.6% compared to RMB 99.51 billion in the first half of 2018[54] - The net cash flow from financing activities for the first half of 2019 was RMB 0.33 billion, a significant turnaround from a net outflow of RMB 544.91 billion in the first half of 2018, primarily due to an increase in short-term borrowings[55] Dividends - The company declared an interim dividend of RMB 0.06988 per share, totaling RMB 142.12 billion[8] - The company declared a final dividend of RMB 0.09 per share for the 2018 fiscal year, totaling RMB 16.472 billion, paid on June 28, 2019 (A-shares) and August 2, 2019 (H-shares) [69] - For the 2019 interim dividend, the company will distribute RMB 0.07765 per share, including a special dividend of RMB 0.00777 per share, amounting to a total of RMB 14.212 billion, based on a total share capital of 183,020,977,818 shares as of June 30, 2019 [69] - The company has maintained a dividend payout ratio of 45% of the net profit attributable to the parent company since its listing, with additional special dividends introduced since 2016 [68] Production and Operations - In the first half of 2019, the company's crude oil production reached 451.9 million barrels, an increase of 3.2% compared to the same period last year[33] - The company achieved a natural gas production of 1,964.3 billion cubic feet, representing a growth of 9.7% year-on-year[33] - The total oil and gas equivalent production was 779.4 million barrels, up by 5.9% from the previous year[33] - The company processed 597.4 million barrels of crude oil, a 3.1% increase compared to the first half of 2018[35] - The chemical product output was 12.64 million tons, which is a 5.2% increase year-on-year[34] Market and Strategy - The company implemented a differentiated marketing strategy to adapt to the challenging market conditions and enhance market share[36] - The company aims to optimize its business model and enhance market expansion efforts in the refined oil sales sector, focusing on retail large customers and high-grade gasoline[66] - The company plans to maximize overall efficiency in natural gas and pipeline operations, ensuring full production and sales of domestic gas[66] - The company is committed to increasing oil and gas reserves and production through concentrated exploration in key areas and enhancing the efficiency of existing oil fields[66] Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange during the reporting period [68] - The board of directors has been authorized to determine the interim dividend distribution plan, reflecting the company's strong financial fundamentals and cash flow situation [69] - The company has appointed a new president and added two directors during the reporting period, enhancing its governance structure [68] - The company will continue to improve its corporate governance and internal control management systems to ensure compliance and effective operation [68] Taxation and Financial Regulations - The company is subject to various tax rates, including a corporate income tax rate of 15% or 25% and a resource tax rate of 6% on oil and gas sales[192] - The special oil income tax rate ranges from 20% to 40%, based on excess revenue from domestic crude oil sales[192] - The company has benefited from a reduced corporate income tax rate of 15% for certain subsidiaries located in the western region of China[195] Risk Management - The group actively takes measures to mitigate various risks in its operations, including regulatory and tax policy risks[88] - The company is exposed to risks from fluctuations in oil and gas product prices due to global political and economic changes[88] - The company operates in multiple countries, facing risks related to political instability, tax policy changes, and regulatory environments[92] Financial Reporting and Accounting - The company has implemented new financial accounting standards effective from January 1, 2019, which may impact future financial reporting and performance metrics[133] - The financial statements are presented in Renminbi (RMB) millions, with specific disclosures required by the China Securities Regulatory Commission[135] - The company confirmed the recognition of right-of-use assets and lease liabilities at the lease commencement date, measuring the right-of-use assets at cost[175]