SPC(SH:600688)2023-08-23 16:00Financial Performance - The company's operating revenue for the first half of 2023 was RMB 44,937,051 thousand, a decrease of 2.10% compared to RMB 45,900,355 thousand in the same period last year[9]. - The total loss for the period was RMB 1,211,974 thousand, representing an increase of 173.83% from a loss of RMB 442,601 thousand in the previous year[9]. - The net loss attributable to shareholders of the parent company was RMB 988,277 thousand, an increase of 126.65% compared to RMB 436,042 thousand in the same period last year[9]. - The company reported a net loss attributable to shareholders of RMB 988.28 million for the first half of 2023, compared to a loss of RMB 436.04 million in the same period last year, representing an increase in loss of 126.67%[13]. - In the first half of 2023, the company achieved a net sales revenue of RMB 38.66 billion, a decrease of 3.69% compared to the same period last year[20]. - The company reported a net loss of RMB 9.67 billion for the first half of 2023, an increase of RMB 5.40 billion compared to a loss of RMB 4.27 billion in the same period last year[21]. - The company reported a basic and diluted loss per share of RMB 0.092 for the six months ended June 30, 2023, compared to RMB 0.040 for the same period in 2022[105]. - The total comprehensive loss for the six months ended June 30, 2023, was RMB 985,707 million, compared to a total comprehensive income of RMB 157,357 million for the same period in 2022[105]. Cash Flow and Financing - The net cash flow used in operating activities was RMB -226,882 thousand, a significant decrease of 96.46% from RMB -6,405,122 thousand in the previous year[9]. - The company’s cash outflow from operating activities was RMB 280 million, significantly reduced from RMB 6.44 billion in the same period last year[22]. - The company achieved a net cash flow from financing activities of RMB 3,427,414,000, a 76.10% increase compared to the previous year, reflecting increased borrowing activities[33]. - The net cash flow from operating activities for the first half of 2023 was a negative RMB 226,882 thousand, a significant improvement compared to a negative RMB 6,405,122 thousand in the same period of 2022[108]. - The company raised RMB 16,018,000 thousand in loans during the first half of 2023, up from RMB 9,455,000 thousand in the same period of 2022[110]. Assets and Liabilities - The net assets attributable to shareholders of the parent company at the end of the reporting period were RMB 25,276,032 thousand, down 3.69% from RMB 26,243,746 thousand at the end of the previous year[10]. - Total assets at the end of the reporting period were RMB 41,701,821 thousand, an increase of 1.11% from RMB 41,242,782 thousand at the end of the previous year[10]. - The company's total borrowings increased by RMB 34.98 billion to RMB 57.48 billion as of June 30, 2023[24]. - The asset-liability ratio as of June 30, 2023, was 38.97%, up from 31.58% a year earlier[26]. - The total liabilities reached RMB 16,295,519 thousand as of June 30, 2023, up from RMB 14,871,357 thousand at the end of 2022, reflecting a rise of approximately 9.5%[99]. Production and Sales - The total production of main products increased by 16.30% year-on-year, reaching 6.3172 million tons in the first half of 2023[18]. - The company processed 7.0939 million tons of crude oil, including 403,100 tons of processing for others, marking a 22.41% increase year-on-year[18]. - The production of gasoline was 1.6047 million tons, up 10.80% year-on-year, while diesel production increased by 40.74% to 1.8454 million tons[18]. - The production of aviation kerosene surged by 107.24% to 816,100 tons in the first half of 2023[18]. - The company's product sales rate was 98.93%, with a cash collection rate of 100% excluding related parties[18]. Research and Development - R&D expenses increased by 86.85% to RMB 68,062,000 due to the rise in research projects during the reporting period[33]. - The company is actively researching new technologies in the refining and chemical industry, including CO2 capture and utilization technology, to adapt to the ongoing transformation in the energy sector[15]. Environmental Compliance - The company achieved a 100% compliance rate for sulfur dioxide emissions, with an actual average concentration of 0.01-30 mg/m³ and a total discharge of 88.51 tons[62]. - The company also maintained a 100% compliance rate for nitrogen oxides, with an actual average concentration of 0.1-85 mg/m³ and a total discharge of 564.73 tons[62]. - The company reported a total discharge of 299.25 tons for chemical oxygen demand, achieving a daily average compliance rate of 100%[64]. - The company received no administrative penalties for environmental issues during the reporting period[72]. Corporate Governance - The board of directors has approved the half-year report in a meeting attended by all directors[2]. - The company held its annual general meeting on June 28, 2023, where various reports and proposals were approved[51]. - The company has complied with all provisions of the Corporate Governance Code as per the Hong Kong Listing Rules during the reporting period[59]. Shareholder Information - The major shareholder, Sinopec Corp., holds 5.459 billion shares, accounting for 50.55% of the total shares, indicating absolute control over the company[50]. - The total number of ordinary shareholders as of the end of the reporting period is 94,357[89]. - The company did not issue any securities during the reporting period[88]. Risks and Challenges - The company faces risks related to the cyclical nature of the oil and petrochemical market, which may adversely affect its operations[44]. - The company relies on imported crude oil for over 95% of its needs, exposing it to procurement risks and price fluctuations[45]. - The company is exposed to risks from currency fluctuations, particularly the depreciation of the RMB against foreign currencies, which could increase costs and impact profitability[48].