Revenue Growth - Revenue increased by RMB 618.9 million or 33.5% to RMB 2,465.6 million for the six months ended June 30, 2024, compared to RMB 1,846.7 million for the same period in 2023[15]. - The oilfield services segment recorded revenue of RMB 923.5 million, representing a significant year-on-year growth of 56.9% compared to the first half of 2023[63]. - Revenue from marine engineering services reached RMB 409.7 million in the first half of 2024, representing a year-on-year growth of 175.6% compared to the first half of 2023[65]. - The oilfield equipment manufacturing and service segment achieved revenue of RMB 1,132.5 million, a year-on-year increase of 2.1% compared to the first half of 2023[60]. Cost and Profitability - The cost of sales and services rose by RMB 476.4 million or 33.8% to RMB 1,887.3 million for the six months ended June 30, 2024[21]. - Gross profit increased by RMB 142.5 million or 32.7% to RMB 578.3 million for the six months ended June 30, 2023, with a gross margin of 23.5%, down 0.1% from the previous period[22]. - Operating profit decreased to RMB 229,110 thousand from RMB 301,288 thousand, reflecting a decline of 24% year-over-year[88]. - Net profit attributable to owners of the company from continuing operations was RMB 46,002 thousand, compared to RMB 27,040 thousand in the previous year, marking an increase of 70.5%[94]. Financial Position - Total assets as of June 30, 2024, amounted to RMB 8,113,195 thousand, up from RMB 7,957,923 thousand at the end of 2023, indicating a growth of 1.95%[85]. - Total liabilities increased to RMB 4,784,608 thousand from RMB 4,628,918 thousand, reflecting a rise of 3.37%[85]. - The company’s total equity as of June 30, 2024, was RMB 3,328,587 thousand, a marginal decrease from RMB 3,329,005 thousand at the end of 2023[85]. - The net debt as of June 30, 2024, was RMB 2,283.8 million, up from RMB 2,023.5 million as of December 31, 2023[37]. Cash Flow and Liquidity - The company reported a net cash outflow from operating activities of RMB 90,403 thousand, compared to a net inflow of RMB 212,928 thousand for the same period in 2023[100]. - Cash and cash equivalents decreased to RMB 610,085 thousand from RMB 840,384 thousand, a decline of 27.3%[85]. - The company is facing significant uncertainty regarding its ability to continue as a going concern, which raises substantial questions about its financial obligations and liquidity[114]. - Plans have been established to alleviate liquidity pressure, including seeking support from bondholders for a proposed restructuring to extend the maturity date of the 2024 notes[114]. Market Strategy and Innovation - The company aims to strengthen long-term partnerships with well-known clients in the international market to meet increasing demand, particularly in the Middle East and Russia[17]. - The company is focused on technological innovation and expanding its market presence through new product development and strategic initiatives[11]. - The company is actively managing cash flow and has implemented measures to enhance operational efficiency, maintaining relatively stable cash flow in the first half of 2024[59]. - The company is exploring new business growth points and has secured high-end clients and orders in key regions such as North America and the Middle East[59]. Risk Management - The company has implemented measures to manage liquidity risk, including monitoring cash reserves and expected cash flows[120]. - Credit risk management measures are in place to control potential recoverability issues, with cash and cash equivalents held in reputable financial institutions[122]. - The company regularly assesses customer creditworthiness based on financial conditions and market situations to mitigate credit risk[123]. - The company is considering entering into currency hedging transactions to manage foreign exchange risks more effectively[52]. Compliance and Governance - The company has established an independent investigation committee to assess transactions related to its Russian subsidiaries and ensure compliance with market regulations[78]. - The company appointed a new auditor, Guo Fu Hao Hua (Hong Kong) CPA Limited, effective July 8, 2024, to ensure proper financial oversight[81]. - The company is working on fulfilling the resumption guidance set by the stock exchange, which includes independent investigations and financial disclosures[78]. - The company has been suspended from trading since April 2, 2024, pending compliance with the stock exchange's resumption requirements[76].
海隆控股(01623) - 2024 - 中期财报