COOEC(SH:600583)2019-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2019 was approximately CNY 4.56 billion, representing a 27.51% increase compared to CNY 3.58 billion in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2019 was a loss of approximately CNY 714.1 million, compared to a loss of CNY 182.4 million in the same period last year[18]. - The net cash flow from operating activities was approximately CNY 39.7 million, a significant improvement from a negative cash flow of CNY 1.63 billion in the same period last year[18]. - The basic earnings per share for the first half of 2019 was -CNY 0.16, compared to -CNY 0.04 in the same period last year[19]. - The company reported a revenue of RMB 45.59 billion, with a net profit attributable to shareholders of -RMB 7.14 billion, primarily due to significant losses from the Saudi 3648 offshore transportation and installation project[46]. - The total comprehensive loss for the first half of 2019 was -¥697,192,505.01, compared to -¥257,430,269.48 in the first half of 2018[157]. - The net profit for the first half of 2019 was a loss of CNY 525,913,506.49, compared to a profit of CNY 1,318,552,334.45 in the first half of 2018, representing a significant decline[161]. Assets and Liabilities - The company's total assets decreased by 3.04% to approximately CNY 29.23 billion from CNY 30.15 billion at the end of the previous year[18]. - The net assets attributable to shareholders decreased by 3.92% to approximately CNY 21.99 billion from CNY 22.89 billion at the end of the previous year[18]. - The total assets of the company reached RMB 292.33 billion, with a net asset value of RMB 219.95 billion and a debt-to-asset ratio of 25% as of June 30, 2019[46]. - The company's total liabilities increased to ¥9,314,667,076.93, compared to ¥9,219,329,336.86 at the end of 2018[156]. - Total equity decreased to ¥18,087,592,128.32 from ¥18,799,074,077.85 in the previous year[156]. Operational Highlights - The company has a workforce of approximately 7,800 employees and operates major manufacturing bases in Qingdao, Tianjin, and Zhuhai, enhancing its engineering capabilities[23]. - The company is recognized as the largest EPCI contractor for offshore oil and gas engineering in the Asia-Pacific region[23]. - The company is currently managing 32 simultaneous projects, focusing on enhancing project management and safety quality control to ensure key projects run as planned[46]. - The company completed 32 operational engineering projects in the first half of the year, including 25 offshore oil and gas field development projects and 5 onshore modular construction projects, with significant progress ahead of schedule by 576 days[50]. Market Position and Strategy - The company has a unique market position as the only large-scale offshore oil and gas engineering contractor in China, with a strong presence in over 20 countries and regions[27][32]. - The company is focusing on the LNG industry, deepwater and underwater engineering, and FPSO industries as new core competitive areas, adapting to industry development trends[24]. - The company achieved significant breakthroughs in international orders, securing contracts worth approximately RMB 94.58 billion, a substantial increase from RMB 10.53 billion in the same period last year[45]. - The company is actively expanding its domestic LNG market, having secured a contract exceeding RMB 40 billion for a northern LNG project in July[45]. Challenges and Risks - The company faced risks in international market operations due to insufficient international talent and experience, which could impact project execution and compliance with local regulations[87]. - The company is taking measures to address the challenges posed by the Saudi 3648 project, including deploying experienced project management teams and streamlining procurement processes[47]. - The company is implementing strategies to mitigate risks from natural disasters and adverse weather conditions, focusing on safety management and emergency response[89]. - The company is also addressing foreign exchange risk due to increased overseas operations, utilizing financial instruments for hedging[90]. Environmental and Social Responsibility - The total wastewater discharge from the Qingdao subsidiary is 28,800 tons, with COD discharge concentration at 69.4 mg/L, resulting in a total COD discharge of 2 tons[116]. - The company has implemented zero discharge for oily wastewater from its vessels, complying with relevant regulations[124]. - The company invested 440,000 man-hours in design work and completed 86,300 structural tons of steel processing in construction[55]. - The company has established a charitable fund to support education, with plans for future donations to local schools[110]. Corporate Governance - The company did not distribute any dividends or bonus shares for the first half of 2019, with a distribution of 0 shares and 0 yuan per 10 shares[93]. - The company reappointed Shinewing Certified Public Accountants as its financial and internal control auditing firm for the fiscal year 2019[95]. - The company maintained a good integrity record, with no reports of dishonesty from regulatory authorities[96]. - The company has committed to not engaging in any competitive activities with its parent company, China National Offshore Oil Corporation, during its existence[94].