Financial Performance - Total revenue for the six months ended June 30, 2021, was RMB 26,851,392 thousand, representing a 12.8% increase compared to RMB 23,797,156 thousand in the same period of 2020[16] - Gross profit for the same period was RMB 2,524,351 thousand, up 15.2% from RMB 2,191,775 thousand year-on-year[16] - Net profit attributable to equity holders of the company was RMB 1,347,127 thousand, a 6.9% increase from RMB 1,260,191 thousand in the previous year[16] - The gross margin for the first half of 2021 was 9.4%, compared to 9.2% in the same period of 2020[17] - The net profit margin for the first half of 2021 was 5.0%, slightly down from 5.3% in the previous year[17] - The total revenue for the first half of 2021 was RMB 26.851 billion, representing a year-on-year growth of 12.8%[33] - Net profit for the same period was RMB 1.347 billion, an increase of 6.9% year-on-year[30] - Total comprehensive income for the period rose by 10.8% year-on-year to RMB 1,347,293 thousand[160] Assets and Liabilities - The company's total assets as of June 30, 2021, were RMB 72,210,511 thousand, reflecting a 1.0% increase from RMB 71,465,327 thousand at the end of 2020[15] - The company's equity attributable to equity holders increased to RMB 28,770,273 thousand, a rise of 1.8% from RMB 28,251,172 thousand at the end of 2020[15] - Total liabilities increased to RMB 43.44 billion, up by RMB 0.23 billion from RMB 43.21 billion at the end of 2020[106] - The company's total equity as of June 30, 2021, was RMB 28,775,295 thousand, an increase from RMB 27,553,970 thousand as of June 30, 2020, indicating a growth of approximately 4.4%[161] Revenue Breakdown - Revenue from engineering general contracting was RMB 16.265 billion, accounting for 51.9% of total revenue, with a year-on-year increase of 4.7%[33] - Revenue from construction services was RMB 12.969 billion, representing 41.4% of total revenue, with a significant year-on-year growth of 34.9%[33] - Revenue from design, consulting, and technology licensing was RMB 1.614 billion, showing a year-on-year increase of 31.2%[34] - Revenue from refining was RMB 5.354 billion, which accounted for 19.9% of total revenue, reflecting a decrease of 3.1% year-on-year[35] - Revenue from petrochemicals was RMB 15.051 billion, making up 56.1% of total revenue, with a year-on-year increase of 4.3%[35] - Revenue from storage and other services surged to RMB 5.918 billion, a remarkable increase of 260.8% year-on-year[35] - Domestic revenue amounted to RMB 24.749 billion, representing 92.2% of total revenue, with a year-on-year growth of 17.6%[37] - Overseas revenue decreased to RMB 2.101 billion, accounting for 7.8% of total revenue, with a year-on-year decline of 23.8%[37] Contracts and Projects - New contracts signed during the reporting period amounted to RMB 36.663 billion, with domestic contracts at RMB 30.131 billion and international contracts at approximately RMB 6.532 billion[30] - The company’s uncompleted contracts at the end of the reporting period totaled RMB 115.466 billion, a 9.3% increase compared to December 31, 2020[30] - Major contracts signed included the Hainan refining and ethylene expansion project worth approximately RMB 9.506 billion[41] - The company made significant breakthroughs in the Russian market, signing a contract for the AGCC project worth approximately USD 9.42 million[41] Cash Flow and Financial Management - The company reported a cash flow from operating activities of (RMB 1,978,359) thousand, a marginal increase in cash outflow compared to (RMB 1,962,757) thousand in the same period of 2020[16] - The company aims to strengthen cash flow management and control operating capital usage in future investments[109] - The company reported a net decrease in cash and cash equivalents of RMB 1.82 billion during the period[109] Shareholder Information - The total number of shares outstanding is 4,428,000,000, with 67.01% held by the controlling shareholder, China Petroleum & Chemical Corporation[21] - The number of foreign H shares is 1,460,800,000, representing 32.99% of the total shares[21] - The top shareholder, China Petroleum & Chemical Corporation, holds 2,967,200,000 domestic shares, accounting for 67.01% of the total[23] - The company has met the minimum public float requirements as per the Hong Kong Listing Rules[22] Research and Development - R&D expenses increased by 12.0% year-on-year to RMB 892 million, driven by investments in oil conversion technology, new materials, and digitalization[7] - The group completed 315 new patent applications, with 69.5% being invention patents, and received 44 provincial and national-level awards for technological progress[47] Risk Management and Compliance - The company has maintained a zero-infection record domestically and effectively controlled public safety and pandemic risks in overseas projects[43] - The company is enhancing its management system based on risk and process standards, aiming to obtain ISO9001, ISO45001, and ISO14001 certifications by the end of the year[43] - The auditors identified and assessed risks of material misstatement due to fraud or error in the financial statements, emphasizing the importance of internal controls[154] Employee Information - As of June 30, 2021, the total number of employees was 16,896, with engineering technical personnel accounting for 77.7%[143] - Employee costs for the first half of 2021 were approximately RMB 2.308 billion, compared to RMB 2.113 billion for the same period in 2020[145] - The group has a good labor relationship, with employee compensation including salary, discretionary bonuses, and mandatory social security fund contributions[145] Corporate Governance - The management confirmed that there were no significant transactions or contracts that would provide substantial benefits to any directors or supervisors during the reporting period[142] - Independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and were fair and reasonable to the company's shareholders[125]
中石化炼化工程(02386) - 2021 - 中期财报