Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 2,776,000, an increase of 11.3% compared to RMB 2,494,437 for the same period in 2023[1] - Gross profit for the same period was RMB 301,514, representing a significant increase of 98.1% from RMB 152,202 in 2023[2] - Operating profit for the six months was RMB 80,970, a turnaround from an operating loss of RMB 22,563 in the previous year[2] - The company reported a net profit attributable to shareholders of RMB 2,419, compared to a loss of RMB 154,192 in the same period last year[2] - Basic and diluted earnings per share were RMB 0.03, recovering from a loss of RMB 2.91 per share in the previous year[2] - The gross margin improved to 10.9%, an increase of 4.8 percentage points from 6.1% in the prior year[1] - The group reported a pre-tax profit of RMB 12,498,000 for the six months ended June 30, 2024, recovering from a loss of RMB 167,149,000 in the same period of 2023[9] - For the six months ended June 30, 2024, the company reported a net loss attributable to owners of RMB 2,419 thousand, a significant improvement compared to a net loss of RMB 154,192 thousand for the same period in 2023[19] - EBITDA for the period was approximately RMB 232 million, an increase from RMB 134 million in the same period last year, with an EBITDA margin of 8.4% compared to 5.4% last year[62] Revenue Breakdown - The revenue from external customers in the land drilling segment was RMB 869,464,000, while the revenue from the same segment in the previous year was RMB 1,154,829,000, indicating a decrease of 24.7%[8] - The group generated RMB 327,584,000 in revenue from a single external customer, down from RMB 357,110,000 from another customer in the previous year[11] - The group’s revenue from the Middle East was RMB 779,714,000, a decrease of 4.9% from RMB 819,938,000 in 2023[10] - The group’s revenue from Africa was RMB 364,833,000, significantly increasing from RMB 101,834,000 in 2023, marking a growth of 258.5%[10] - The company’s sales revenue from the mainland China region was approximately RMB 1.296 billion, accounting for 46.7% of total revenue, an increase of RMB 107 million compared to the previous year[51] - The company’s export revenue was approximately RMB 1.48 billion, accounting for 53.3% of total revenue, an increase of RMB 1.75 million compared to the previous year[51] Expenses and Costs - Research and development expenses increased to RMB 58,212 from RMB 37,018, indicating a focus on innovation[2] - The company's sales cost for the period was approximately RMB 2.474 billion, an increase of RMB 132 million or 5.6% compared to RMB 2.342 billion in the same period last year[56] - The group's administrative expenses for the period were approximately RMB 130 million, an increase of RMB 9 million or 7.4% compared to RMB 121 million in the same period last year, primarily due to increased employee benefits[59] - Research and development expenses for the period were approximately RMB 58 million, an increase of RMB 21 million or 56.8% compared to RMB 37 million in the same period last year, reflecting a continued focus on automation, digitalization, and intelligence in drilling equipment[59] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 12,770,703, up from RMB 12,519,539 at the end of 2023[5] - The total non-current assets, excluding financial instruments and deferred tax assets, were RMB 3,273,972,000 as of June 30, 2024, down from RMB 3,375,106,000 at the end of 2023[11] - The group had cash and cash equivalents of approximately RMB 961 million, an increase of RMB 183 million compared to the end of the previous year[64] - The group's total liabilities were approximately RMB 9.148 billion, with a debt-to-asset ratio of 71.63%, an increase of 0.24 percentage points from the end of the previous year[66] - The total borrowings as of June 30, 2024, reached RMB 4,842,987, compared to RMB 4,470,069 as of December 31, 2023, indicating an increase of 8.3%[27] Dividends and Shareholder Returns - The company has proposed not to declare an interim dividend for the period[1] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[20] - The group proposed no interim dividend as of June 30, 2024[63] Operational Highlights - The company sold a total of 14 drilling rigs, generating sales of approximately RMB 869 million, a decrease of 24.8% from RMB 1.155 billion in the previous year[40] - Sales of spare parts amounted to RMB 1.426 billion, an increase of 61.7% compared to RMB 882 million in the same period last year[40] - The group completed 1,130 fracturing operations in the first half of the year, with a backlog of contracts amounting to approximately RMB 400 million as of June 30, 2024[41] - The group secured a drilling project contract with Sinopec, marking its entry into the Sichuan-Chongqing shale gas market, with the first well reaching a depth of 5,949 meters[42] - The renewable energy segment signed 32 orders for large offshore wind power jackets, with a backlog of contracts amounting to approximately RMB 900 million, including RMB 700 million for offshore wind power[44] Future Outlook - The company is optimistic about the business outlook for the second half of 2024, focusing on high-end and intelligent drilling equipment, as well as expanding into the coalbed methane market[49] - The company plans to enhance its offshore wind power products and services, leveraging technological advancements and market opportunities in the renewable energy sector[49] Compliance and Governance - The company has adopted a set of securities trading codes for directors, which are as strict as the standards outlined in the Listing Rules Appendix C3[72] - All directors confirmed compliance with the securities trading codes during the reporting period ending June 30, 2024[72] - There were no reported incidents of employees violating the written guidelines for securities trading during the reporting period[73]
宏华集团(00196) - 2024 - 中期业绩