Financial Performance - For the six months ended June 30, 2020, SPT Energy Group reported revenue of RMB 609.1 million, a decrease of RMB 145.6 million or 19.3% compared to the same period last year[9]. - The net profit for the same period was RMB 18.6 million, down RMB 56.6 million or 75.3% year-on-year[9]. - Revenue from the Chinese market was RMB 437.2 million, a decrease of RMB 30.8 million or 6.6%, accounting for 71.8% of total revenue[9]. - Revenue from overseas markets was RMB 171.9 million, a decrease of RMB 114.8 million or 40.0%, accounting for 28.2% of total revenue[9]. - The group's revenue for the six months ended June 30, 2020, was RMB 609.1 million, a decrease of RMB 145.6 million or 19.3% compared to RMB 754.7 million in the same period last year, primarily due to the impact of the pandemic and falling oil prices[31]. - The group reported a net loss of RMB 3.8 million from other income, compared to a net income of RMB 3.4 million in the same period last year, mainly due to foreign exchange losses[32]. - Operating profit for the period was RMB 44.2 million, a decrease of RMB 59.4 million or 57.3% from RMB 103.6 million in the previous year[41]. - The group’s profit for the period was RMB 18.6 million, a decrease of RMB 56.6 million or 75.3% from RMB 75.2 million in the same period last year[44]. - The equity holders' profit attributable to the company was RMB 21.4 million, down RMB 53.8 million or 71.5% from RMB 75.2 million year-on-year[45]. - The EBITDA for the reportable segments was RMB 138,127 thousand for the six months ended June 30, 2020, down 29.2% from RMB 195,203 thousand in the same period of 2019[147]. Revenue Breakdown - The drilling segment revenue was RMB 185.973 million, down RMB 126.2 million or 40.4% year-on-year[12]. - The completion segment revenue was RMB 195.247 million, a slight decrease of RMB 1.1 million or 0.6% year-on-year[12]. - The reservoir segment revenue was RMB 227.920 million, down RMB 18.3 million or 7.4% year-on-year[12]. - Revenue from the drilling segment was RMB 185,973 thousand, a decrease of 40.5% compared to RMB 312,219 thousand in the same period of 2019[139]. - Revenue from the completion segment was RMB 195,247 thousand, which remained relatively stable compared to RMB 196,356 thousand in the same period of 2019[139]. - Revenue from the reservoir segment was RMB 227,920 thousand, a decrease of 7.4% from RMB 246,172 thousand in the same period of 2019[139]. - Revenue from Kazakhstan was RMB 106.5 million, down 23.7% year-on-year, primarily due to reduced investment from oil companies amid the pandemic and low oil prices[22]. - Revenue from Kazakhstan was RMB 106,491 thousand, down 23.7% from RMB 139,515 thousand in the same period of 2019[148]. - Revenue from Indonesia was RMB 17,765 thousand, a decrease of 26.7% compared to RMB 24,284 thousand in the same period of 2019[148]. Cost and Expenses - Material costs decreased to RMB 141.4 million, down RMB 37.8 million or 21.1% from RMB 179.2 million year-on-year, attributed to a contraction in business operations[33]. - Employee benefits expenses were RMB 207.9 million, a decrease of RMB 15.8 million or 7.1% from RMB 223.7 million in the previous year, due to improved human resource management and temporary reductions in social security contributions[34]. - The net financing cost increased to RMB 15.9 million, up RMB 3.2 million or 25.2% from RMB 12.7 million year-on-year, due to increased interest expenses from heightened financing efforts[42]. - The company reported a total of RMB 194,082,000 in financial assets as of June 30, 2020, up from RMB 140,602,000 as of December 31, 2019, representing an increase of 37.9%[162]. - The total interest expense on bank loans for the six months ended June 30, 2020, was RMB (10,398,000), an increase from RMB (8,090,000) in 2019, reflecting a rise of approximately 28.6%[183]. Assets and Liabilities - Total assets as of June 30, 2020, amounted to RMB 2,873,415 thousand, a decrease from RMB 3,131,474 thousand as of December 31, 2019, representing a decline of approximately 8.2%[110]. - Total liabilities decreased to RMB 1,367,029 thousand from RMB 1,631,905 thousand, representing a reduction of 16.2%[117]. - The company’s total liabilities as of June 30, 2020, were RMB 730,804 thousand, compared to RMB 731,979 thousand as of December 31, 2019, indicating a slight decrease[125]. - The company’s non-current liabilities, including borrowings, amounted to RMB 158,253 thousand, a substantial increase from RMB 47,403 thousand year-on-year[117]. - The total deferred tax liabilities as of June 30, 2020, were RMB 21,964,000, compared to RMB 19,890,000 in 2019, showing an increase of approximately 10.4%[179]. Corporate Governance - The company has adopted high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability[69]. - The company has complied with the corporate governance code as of June 30, 2020, and will continue to review and enhance its governance practices[69]. - The company will continue to review and enhance its corporate governance practices to ensure compliance with the corporate governance code[69]. Future Outlook and Strategy - The company plans to enhance R&D investment in new technologies and tools, with a focus on applications in drilling, completion, and environmental protection[25]. - The company will continue to focus on the Chinese market, leveraging its technical service advantages in the high-end drilling and completion market to help clients achieve low-cost stable production and efficient gas field production[66]. - The current situation demands higher requirements for innovation in oil and gas exploration technology and information technology, prompting the company to accelerate the promotion and application of new technologies to enhance core competitiveness[67]. - The company plans to focus on promoting new technologies in the second half of 2020, anticipating a broad market outlook[28]. Shareholder Information - As of June 30, 2020, the company’s major shareholder, Mr. Wang Guoqiang, holds 648,484,000 shares, representing approximately 34.98% of the company's equity[74]. - Mr. Wu Dongfang, another major shareholder, also holds 648,484,000 shares, equivalent to approximately 34.98% of the company's equity[75]. - Widescope Holdings Limited holds 137,372,000 shares, representing 7.41% of the company[80]. - Elegant Eagle Investments Limited owns 158,972,000 shares, accounting for 8.58% of the company[80]. - Truepath Limited and Red Velvet Holdings Limited each hold 489,512,000 shares, which is 26.41% of the company[80]. - Credit Suisse Trust Limited acts as a trustee for 711,642,242 shares, representing 38.39% of the company[80]. Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2020, was RMB 101,701 thousand, compared to RMB 47,964 thousand for the same period in 2019, indicating a significant increase in cash outflow[128]. - The net cash used in investing activities was RMB 105,720 thousand for the six months ended June 30, 2020, compared to RMB 91,354 thousand in the previous year, showing an increase in investment expenditures[128]. - The financing activities generated a net cash inflow of RMB 236,566 thousand, while cash outflows for repayment of borrowings totaled RMB 211,476 thousand during the same period[128]. - The company’s cash flow from financing activities was impacted by a significant increase in borrowings, reflecting a strategic move to enhance liquidity during the period[128].
华油能源(01251) - 2020 - 中期财报