Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 24,829,660, a decrease of 4.3% compared to RMB 25,958,552 in 2022[17]. - Gross profit decreased by 15.9% to RMB 2,240,224 from RMB 2,664,294 in the same period last year[17]. - Operating profit fell by 15.0% to RMB 992,967, down from RMB 1,167,517 in 2022[17]. - Net profit attributable to equity holders was RMB 1,317,070, a decrease of 2.9% from RMB 1,356,259 in 2022[17]. - Basic earnings per share decreased to RMB 0.30 from RMB 0.31, reflecting a 2.9% decline[17]. - The gross margin for the first half of 2023 was 9.0%, down from 10.3% in 2022[19]. - The net profit margin improved slightly to 5.3% from 5.2% in the previous year[19]. - The total comprehensive income for the six months ended June 30, 2023, was RMB 1,309,243,000, a decrease of 5.7% compared to RMB 1,388,299,000 in the same period of 2022[172]. - The profit attributable to equity holders of the company for the first half of 2023 was RMB 1,317,070,000, down from RMB 1,356,259,000 in the previous year, reflecting a decline of 2.9%[172]. Assets and Liabilities - As of June 30, 2023, current assets amounted to RMB 69,011,034 thousand, a decrease of 1.9% compared to December 31, 2022[16]. - Non-current assets were reported at RMB 8,086,978 thousand, reflecting a decrease of 2.7% from the end of 2022[16]. - Current liabilities decreased by 4.2% to RMB 44,544,197 thousand compared to the previous year-end[16]. - Non-current liabilities were RMB 2,137,631 thousand, down 1.5% from December 31, 2022[16]. - The asset-liability ratio decreased to 60.5% as of June 30, 2023, from 61.8% at the end of 2022[19]. - Total assets as of June 30, 2023, were RMB 77.10 billion, a decrease of RMB 1.58 billion (2.0%) compared to December 31, 2022[111]. - Total liabilities decreased by RMB 1.96 billion (4.0%) to RMB 46.68 billion as of June 30, 2023, primarily due to a reduction in current liabilities[112]. - The equity attributable to shareholders of the company increased by 1.3% to RMB 30,410,594 thousand[16]. - The total value of uncompleted contracts as of June 30, 2023, was RMB 125,132.95 million, an increase of 11.5% from the end of 2022[43]. Cash Flow - Cash used in operating activities improved by 24.7%, with a net cash outflow of RMB 1,038,507 compared to RMB 1,378,489 in 2022[17]. - The net cash used in investment activities was RMB 506.41 million, primarily due to equipment purchases and increased time deposits[115]. - The net cash used in financing activities was RMB 40.30 million, mainly for lease payments[115]. - The net cash used in operating activities for the first half of 2023 was RMB (1,038,507,000), an improvement compared to RMB (1,378,489,000) in the same period of 2022, indicating a reduction of about 24.7%[179]. - The company reported a net cash outflow from investing activities of RMB (506,405,000) for the first half of 2023, compared to RMB (883,481,000) in the previous year, showing a decrease of approximately 42.6%[179]. Business Strategy and Development - The company aims to enhance its service levels in safety, efficiency, and low-carbon solutions across the energy and chemical engineering sectors[9]. - The company is committed to expanding its business scope and extending its value chain in the energy and chemical engineering construction industry[9]. - The company continues to focus on market expansion and new technology development to enhance future performance[31]. - The company is actively expanding its international market presence, focusing on regions such as the Middle East, Central Asia, Southeast Asia, Africa, and the Americas[34]. - The company aims to enhance its comprehensive competitiveness in the overseas market by integrating technology and engineering services[34]. - The company is exploring diversified business models, including financing and technology cooperation, to drive value creation[34]. - The company is committed to high-quality development and market expansion despite facing challenges from the global economic environment and fluctuating oil prices[36]. Contracts and Projects - The company signed new contracts worth RMB 37.73 billion during the reporting period, with a significant increase in overseas contracts amounting to USD 1.11 billion, up 107.1% year-on-year[34]. - The company executed a total of 1,242 projects during the reporting period, with an average daily workforce exceeding 80,000[35]. - The total value of new contracts signed during the period was RMB 37,731.46 million, a decrease of 14.5% compared to RMB 44,150.18 million in the same period of 2022[110]. - The uncompleted contract value in the oil and petrochemical sector was RMB 74,927.02 million, reflecting a significant increase of 23.9% year-on-year[104]. Research and Development - The company achieved significant results in technology research and development, signing 230 technical development contracts and 36 technical licensing and service contracts, with a total contract value of RMB 494 million[48]. - The company applied for 405 new patents during the reporting period, with 292 being invention patents, accounting for 72.1% of the total[48]. - Research and development costs for the design, consulting, and technology licensing segment decreased by 15.8% to RMB 300.76 million[80]. - Research and development costs for the engineering contracting segment decreased by 5.8% to RMB 299.37 million[86]. Environmental, Social, and Governance (ESG) - The company established a key ESG performance indicator system covering greenhouse gas emissions, resource consumption, and pollution discharge[54]. - The company received the "Global Project Safety President Award" for the Huizhou Ethylene project from the owner[51]. - The company is actively promoting green enterprise initiatives, significantly reducing solid waste emissions in the Tianjin South Port Ethylene project[51]. - The company has established a comprehensive ESG information disclosure mechanism, responding to 48 disclosure indicators in its 2022 ESG report[54]. Human Resources - As of June 30, 2023, the company had a total of 16,133 employees[153]. - Employee costs for the first half of 2023 were approximately RMB 2.228 billion, compared to RMB 2.220 billion for the same period in 2022[155]. - The workforce gender distribution shows 27.1% female employees and 72.9% male employees as of June 30, 2023[156]. - The percentage of employees with a graduate degree is 19.5%, while those with a bachelor's degree account for 47.0%[155]. - The company emphasizes equal treatment and respect in its employment principles, aiming to improve gender diversity despite industry challenges[157]. Compliance and Governance - The audit committee reviewed the interim report and had no dissenting opinions on the financial performance[138]. - The board of directors and senior management have confirmed compliance with the standards set forth in the Securities and Futures Ordinance[150]. - The company has adopted the "Standard Code" as the code of conduct for securities transactions by directors[150]. - The company has not entered into any significant transactions that would provide substantial benefits to any directors or supervisors[152].
中石化炼化工程(02386) - 2023 - 中期财报