Financial Performance - In the first half of 2020, Wison Engineering reported a revenue of approximately RMB 3,099.8 million, a decrease of 73.1% year-on-year[13]. - The company recorded revenue of approximately RMB 2,314.0 million, a year-on-year increase of 43.6% compared to RMB 1,611.2 million for the same period in 2019[22]. - The company's total revenue increased by 43.6% from RMB 1,611.2 million for the six months ended June 30, 2019, to RMB 2,314.0 million for the six months ended June 30, 2020[76]. - Revenue for the six months ended June 30, 2020, was RMB 2,313,972,000, representing a 43.5% increase from RMB 1,611,231,000 in the same period of 2019[156]. - The total revenue from customer contracts for the six months ended June 30, 2020, was RMB 2,313,972,000, an increase of 43.5% from RMB 1,611,231,000 for the same period in 2019[184]. Profitability - Gross profit was approximately RMB 185.7 million, a decrease of 17.9% from RMB 226.2 million in the same period of 2019[22]. - The gross margin for the EPC segment fell from 13.0% to 7.1%, primarily due to a decline in the gross margin of refining projects[80]. - Profit before tax for the period was RMB 16,657,000, a decline of 52.6% compared to RMB 35,159,000 in the previous year[156]. - Net profit attributable to the parent company was approximately RMB 9.3 million, down 19.2% from RMB 11.5 million in the same period of 2019, primarily due to increased market competition and rising raw material costs[22]. - Profit for the period fell by 20.0% from RMB 11.5 million for the six months ended June 30, 2019, to RMB 9.2 million for the same period in 2020, primarily due to a decrease in overall gross profit[97]. Contract and Project Updates - The total value of new contracts signed during the period decreased significantly due to the impact of the COVID-19 pandemic on the global economy and industry[13]. - The total value of uncompleted contracts was approximately RMB 22,612.5 million, an increase of 3.4% compared to December 31, 2019[13]. - The company successfully entered the municipal engineering sector through the PPP model, with three new PPP projects signed, including a major water supply project in Jiangsu with a design capacity of 430,000 tons per day[23]. - The company achieved a breakthrough in the Middle East by obtaining its first overseas natural gas-to-methanol FEED+EPC project, located in Jubail, Saudi Arabia[30]. - The company signed a total EPC contract for a 600,000 tons/year PDH unit with Shandong Binhua, which is a key project with an investment exceeding 10 billion RMB[38]. Market and Economic Conditions - The international oil market experienced significant fluctuations, with WTI crude oil futures dropping to a historic low of -$37.63 per barrel in May 2020[13]. - In the second quarter of 2020, China's GDP grew by 3.2%, becoming the only major economy to achieve positive growth in the first half of the year, positively impacting the domestic energy and chemical market[15]. - Domestic refining companies benefited from low oil prices, leading to a rapid turnaround from losses to profits in the second quarter[16]. - The olefin industry achieved a profit peak in nearly two years, driven by demand for medical protective products and packaging[16]. Research and Development - The company has increased its strategic investment in technology R&D, adding 2 new patent applications and 8 authorized patents during the reporting period[44]. - The company is actively promoting a national key R&D project on CO2 efficient synthesis of chemical products, aligning with its green and low-carbon development strategy[44]. - Research and development costs increased to RMB 55,274,000 for the six months ended June 30, 2020, compared to RMB 4,896,000 in the same period of 2019[192]. - The company aims to expand its market presence and enhance its service offerings through ongoing research and development initiatives[186]. Financial Position and Cash Flow - As of June 30, 2020, the group's cash and bank balances were RMB 601.5 million, accounting for approximately 12.7% of current assets, down from RMB 814.3 million (19.0% of current assets) as of December 31, 2019[99]. - The company's net cash flow used in operating activities was RMB (583,248,000), significantly higher than RMB (116,512,000) in the previous year, indicating a worsening cash flow situation[167]. - The total cash and cash equivalents at the end of the period were RMB 601,455,000, compared to RMB 563,291,000 at the end of the previous period, showing a slight improvement in liquidity[167]. - The company reported a net cash flow from financing activities of RMB 413,028,000, a substantial increase from RMB (50,882,000) in the same period last year, primarily due to new bank loans of RMB 670,000,000[167]. Strategic Initiatives - The company aims to enhance its core competitiveness through self-developed technology and technical cooperation, optimizing talent and organizational structure[63]. - The company plans to enhance strategic cooperation with leading enterprises and seek quality investment and acquisition opportunities to create a comprehensive ecosystem covering the entire industry chain[71]. - The company is focused on strategic investments in technology and innovation companies, as well as high-quality enterprises[111]. - The company is deepening cooperation with Honeywell to implement digital delivery and smart factory construction in the petrochemical ethylene business[51]. Human Resources - The company has a workforce with 89% holding a bachelor's degree or above, and 40% with a master's degree or higher, enhancing its R&D capabilities[58]. - Employee costs for the six months ended June 30, 2020, totaled RMB 303.0 million, compared to RMB 301.1 million for the same period in 2019, reflecting a slight increase of 0.6%[116]. - The company emphasizes talent development and management capabilities, continuing high-quality training even during the pandemic[19]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules[142]. - The audit committee has reviewed and discussed the unaudited interim results for the six months ended June 30, 2020[145]. - There have been no changes in the directors' biographies that require disclosure since the publication of the 2019 annual report[146].
惠生工程(02236) - 2020 - 中期财报