BOMESC(SH:603727)2018-08-24 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2018, representing a year-on-year increase of 15%[19]. - The net profit attributable to shareholders was RMB 200 million, up 10% compared to the same period last year[19]. - Revenue for the first half of the year was 56,014,701.06 RMB, a decrease of 87.06% compared to 433,045,407.57 RMB in the same period last year[20]. - Net profit attributable to shareholders was -63,271,231.69 RMB, representing a decline of 167.13% from 94,256,569.39 RMB year-on-year[20]. - Basic earnings per share were -0.27 RMB, down 167.5% from 0.40 RMB in the previous year[21]. - The weighted average return on equity decreased by 6.51 percentage points to -2.64% from 3.87%[22]. - The company reported a net cash flow from operating activities of -114,491,316.78 RMB, compared to -160,761,700.35 RMB in the previous year[20]. - The company reported a significant decrease in revenue, with total revenue of ¥56,014,701.06, down 87.06% from ¥433,045,407.57 in the previous year[63]. - Operating costs also decreased to ¥121,633,638.77, a reduction of 61.45% compared to ¥315,529,381.88 last year[63]. - The company reported a total comprehensive income of approximately 46.59 million RMB for the first half of 2018[160]. Market Engagement and Contracts - The company has secured new contracts worth RMB 500 million during the reporting period, indicating strong market demand[19]. - The company secured a contract worth approximately 573 million RMB for the FPSO Carioca MV30 project, indicating ongoing market engagement[34]. - A contract valued at approximately 375 million RMB was signed for the South Flank iron ore project in Australia, highlighting expansion in the mining sector[35]. - The Canada LNG Project, with an estimated investment of 12 billion USD, is underway, reflecting growth in the natural gas liquefaction sector[36]. - The company has successfully secured multiple large-scale projects, including Wheatstone LNG and Yamal LNG, thanks to its strong project management team, which has ensured smooth operations and successful deliveries[42]. - The company has received project orders in Brazil, Australia, and Russia, including the FPSO project for Brazil's national oil company and the South Flank iron ore project for BHP, reflecting its ability to quickly seize market opportunities[48]. Research and Development - Research and development expenses increased by 30% to RMB 150 million, focusing on new technologies for offshore engineering[19]. - In the first half of 2018, the company applied for 9 new patents, including 6 invention patents, and has a total of 15 authorized invention patents and 52 utility model patents as of June 30, 2018, showcasing its strong R&D capabilities[42]. - R&D expenses decreased by 25.47% to ¥10,715,540.09 from ¥14,378,437.75 in the previous year[63]. Strategic Initiatives - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in revenue from this region by 2020[19]. - The company has initiated a strategic partnership with a leading technology firm to enhance its service offerings in the offshore oil and gas sector[19]. - The company is actively exploring new business models, including joint contracting and equity investment, to enhance its capital advantages and support the "Belt and Road" initiative[45]. - The company has expanded its modular construction capabilities, developing a full range of modular construction services for offshore oil and gas development, enhancing its competitive edge in the industry[43]. - The company is committed to extending its business chain and expanding its operational scope, with ongoing projects in various challenging environments, further solidifying its market position[50]. Financial Position and Cash Flow - The total assets decreased by 6.57% to 2,650,956,527.02 RMB from 2,837,459,779.02 RMB at the end of the previous year[20]. - The company reported a financial expense of negative CNY 6.19 million, compared to negative CNY 0.88 million in the previous period, indicating a significant change in financial costs[140]. - The cash flow from investing activities shows a net inflow of CNY 191.12 million, a significant increase compared to a net outflow of CNY 303.25 million in the previous period[144]. - The total current assets decreased from CNY 1,731,365,304.66 to CNY 1,549,488,715.72, a reduction of approximately 10.5%[127]. - The total liabilities decreased from CNY 409,316,203.33 to CNY 320,275,651.41, a decline of approximately 21.8%[129]. - The total equity attributable to shareholders decreased from CNY 2,428,143,575.69 to CNY 2,330,680,875.61, a decrease of about 4%[129]. Shareholder and Governance - The company held four shareholder meetings during the reporting period, all of which complied with relevant laws and regulations[80]. - The proposed profit distribution plan includes a dividend of 10 yuan per share and a bonus share distribution of 10 shares for every 10 shares held[81]. - The actual controller and shareholders have committed to not transferring or entrusting their shares for 36 months from the date of listing[82]. - The company approved the 2018 stock option incentive plan at the second board meeting on May 18, 2018[87]. - The company granted a total of 2,700,000 stock options to executives and directors during the reporting period[121]. Environmental and Social Responsibility - The company has been involved in social responsibility initiatives, supporting over 150 students from impoverished backgrounds in Sichuan Province to pursue higher education over the past five years[96]. - The company donated 150,000 RMB to support 30 students in Sichuan Province in 2018[97]. - The wastewater discharge from Tianjin Bomaiko is treated municipal sewage, with no wastewater generated during production processes, meeting the Class III discharge standards[99]. - The company’s air pollutant emissions include smoke, dust, and volatile organic compounds, with monitoring conducted biannually to comply with legal requirements[100]. - The environmental pollution prevention facilities at Tianjin Bomaiko are operational and in good condition, meeting environmental assessment requirements[103]. Risks and Challenges - The company faces risks related to industry cyclicality, with potential impacts from fluctuations in oil prices affecting project acquisition and performance[74]. - The company is exposed to foreign exchange risks due to its primary business being conducted in USD, which may affect revenue and profit[78]. - The company has received some quality orders during the market recovery, but risks remain if oil prices fluctuate significantly or if new orders do not meet expectations[75].