Financial Performance - For the first half of 2022, Honghua Group reported revenue of RMB 1,509.18 million, a decrease of 2.7% compared to RMB 1,551.54 million in the same period last year[9]. - The company experienced an operating loss of RMB 416.37 million, a significant increase of 2,718.1% from an operating loss of RMB 14.78 million in the previous year[9]. - The pre-tax loss reached RMB 563.54 million, up 686.3% from RMB 71.67 million in the prior year[9]. - Shareholders' loss attributable to the company was RMB 523.38 million, a 617.3% increase from RMB 72.97 million in the same period last year[9]. - The gross profit margin fell to -4.7%, a decline of 25.2 percentage points from 20.5% in the previous year[13]. - The net profit margin was -34.6%, down 29.9 percentage points from -4.7% in the previous year[13]. - The average return on equity dropped to -15.9%, a decrease of 14.2 percentage points from -1.7% in the previous year[13]. - The gross loss for the period was approximately RMB -0.071 billion, with a gross margin of -4.7%, a decline of 25.2 percentage points from 20.5% in the same period last year[48]. - The group's net loss attributable to shareholders was approximately RMB 0.523 billion, resulting in a net loss rate of 34.7%, compared to 4.7% in the same period last year[52]. - The company reported a total comprehensive loss of RMB 558,967 thousand for the first half of 2022, compared to a total comprehensive loss of RMB 63,979 thousand in the same period of 2021[106]. Assets and Liabilities - Total non-current assets decreased by 4.2% to RMB 4,787.33 million from RMB 4,998.48 million at the end of 2021[9]. - Total current assets also fell by 4.2% to RMB 6,462.93 million from RMB 6,749.43 million at the end of 2021[9]. - The total liabilities increased slightly by 0.8% to RMB 8,062.72 million from RMB 8,001.51 million at the end of 2021[9]. - The total assets of the group as of June 30, 2022, were approximately RMB 11.25 billion, with current assets at approximately RMB 6.46 billion, accounting for about 57.4% of total assets, a decrease of RMB 286 million from December 31, 2021[57]. - The total liabilities of the group as of June 30, 2022, were approximately RMB 8.06 billion, with current liabilities at approximately RMB 7.92 billion, representing about 98.2% of total liabilities, an increase of RMB 127 million from December 31, 2021[58]. - The company's equity attributable to owners decreased to RMB 3,187,541 thousand from RMB 3,746,396 thousand, a decline of approximately 15%[110]. - The asset-liability ratio of the group as of June 30, 2022, was 71.7%, an increase of 3.6 percentage points from December 31, 2021[58]. Sales and Revenue Streams - In the first half of 2022, the company sold a total of 5 drilling rigs, generating approximately RMB 172 million in sales, a 207.1% increase compared to RMB 56 million in the same period last year[23]. - The company achieved a total sales revenue of approximately RMB 443 million from equipment and engineering services in the first half of 2022, a decrease of 11.4% from RMB 500 million in the same period last year[25]. - The company’s offshore wind power business revenue decreased by 96.2% to RMB 17 million due to insufficient new orders following a policy vacuum after a rush to install projects in the second half of 2021[24]. - The special power business achieved revenue of RMB 69 million, representing a year-on-year growth of 64.3%[26]. - The drilling services generated sales revenue of approximately RMB 199 million, an increase of 46.3% compared to RMB 136 million in the same period last year[28]. - Revenue from external customers in China was RMB 946,650,000, down from RMB 1,250,586,000 in the previous year, indicating a decline of approximately 24.3%[135]. Operational Developments - The company produced 10.288 million tons of crude oil in the first half of 2022, representing a year-on-year growth of 4.0%[18]. - The company produced 109.6 billion cubic meters of natural gas in the first half of 2022, reflecting a year-on-year increase of 4.9%[18]. - The company has actively adjusted its market layout, increasing investment in traditional markets, particularly in the Americas, and has secured continuous drilling rig orders from new customers in Oman[23]. - The company plans to enhance oil and gas exploration capabilities in response to rising global oil prices, with increased upstream capital expenditure expected in the second half of 2022[34]. - The company aims to expand new product sales and explore overseas markets while maintaining a focus on quality and cost control[35]. - The company has successfully completed the longest horizontal section fracturing operation in China, measuring 3,601 meters[26]. Research and Development - The company applied for 36 patents in the first half of 2022, including 21 domestic invention patents and 6 international patents[31]. - The company successfully developed the first domestic dual-screw high-efficiency electric sand delivery device, achieving a maximum sand storage capacity of 120m³ and a maximum sand delivery efficiency of 160m³/h[25]. - The company is advancing the development of smart drilling rigs and intelligent electric fracturing systems, with some projects nearing completion[30]. Employee and Corporate Structure - The total number of employees decreased by 25.6% to 2,430 as of June 30, 2022, as part of a strategic adjustment[32]. - The company has a total of 318,202,548 shares held by Wealth Afflux Limited, representing 5.94% of the issued share capital[77]. - The major shareholder, Dongfang Electric Group International Investment Co., Ltd., holds 1,606,000,000 shares, accounting for 29.98% of the issued share capital[77]. - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[153]. Cash Flow and Financing - The company reported a net cash outflow from operating activities of RMB 446,501 thousand, compared to RMB 823,490 thousand for the same period in 2021, representing a 45.7% improvement[120]. - The net cash outflow from financing activities was RMB 1,769,268 thousand for the first half of 2022, compared to RMB 1,400,551 thousand in the same period of 2021, reflecting a 26.3% increase in cash used for financing[120]. - The company has returned USD 200 million of senior notes with a coupon rate of 6.375% through low-cost loans, laying a solid foundation for better development amid industry recovery[21]. - The total borrowings of the group as of June 30, 2022, were approximately RMB 5.032 billion, a decrease of RMB 0.114 billion or 2.2% from December 31, 2021[55]. - The group had unused loan facilities amounting to RMB 3,241,312 as of June 30, 2022, compared to RMB 3,381,860 as of December 31, 2021, showing a decrease of 4.2%[171].
宏华集团(00196) - 2022 - 中期财报