XCEC(SH:600777)2023-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2023 was CNY 3,988,904,648.79, a decrease of 6.56% compared to CNY 4,268,923,946.66 in the same period last year[16]. - Net profit attributable to shareholders for the first half of 2023 was CNY 1,151,008,725.36, down 28.69% from CNY 1,614,081,581.96 year-on-year[16]. - The company's basic earnings per share for the first half of 2023 were CNY 0.1693, a decrease of 28.66% from CNY 0.2373 in the same period last year[17]. - The net cash flow from operating activities was RMB 3.18 billion, a decrease of 9.98% compared to the previous year[24]. - The company reported a total profit of CNY 1,460,058,756.80, down from CNY 2,052,606,991.68 in the first half of 2022[96]. - The company’s total comprehensive income for the first half of 2023 was a loss of CNY 13,089,481.80, compared to a loss of CNY 22,674,930.39 in the same period of 2022[100]. Production and Operations - The company achieved a crude oil production of 7.6416 million barrels in the first half of 2023, representing a year-on-year increase of 12.75%[20]. - Natural gas production amounted to 2.9583 million barrels of oil equivalent, reflecting a year-on-year increase of 13.98%[20]. - The company has 691 shale oil wells online by the end of the reporting period[20]. - The company has not indicated any plans for market expansion, new product development, or mergers and acquisitions in the current report[6]. Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 33,878,881,798.28, an increase of 8.18% from CNY 31,318,500,770.10 at the end of the previous year[16]. - The net assets attributable to shareholders increased by 12.96% to CNY 19,081,667,958.87 compared to CNY 16,892,916,037.31 at the end of the previous year[16]. - The total liabilities rose to CNY 14,797,213,839.41, compared to CNY 14,425,584,732.79, indicating an increase of around 2.6%[90]. - The company’s total current assets reached CNY 3,720,837,410.87, an increase from CNY 3,288,642,697.55 at the end of 2022, reflecting a growth of approximately 13.1%[88]. Legal and Regulatory Matters - The company is currently involved in a legal case regarding a compensation obligation of approximately CNY 3.582 billion, with ongoing proceedings in the Supreme Court[4]. - The company has received administrative regulatory measures from the China Securities Regulatory Commission due to violations of information disclosure regulations[73]. - The company has faced multiple lawsuits, including actions from shareholders regarding the validity of resolutions from shareholder meetings[71]. Governance and Shareholder Matters - The company held a shareholder meeting on February 27, 2023, to elect a new board of directors and supervisory board, with a term of three years[43]. - Liu Bin was elected as the chairman and general manager, while Bing Zhou was appointed as the CFO[44]. - The company has reported a shareholding change, with a total of 6,500,000 shares being reduced without prior disclosure in May 2020, affecting the overall shareholding structure[53]. - The company has committed to not engaging in any business that competes with New Chao Industry and Zhejiang Benbao after the completion of the transaction, ensuring no future conflicts of interest[55]. Financial Policies and Accounting Practices - The financial report for the first half of 2023 has not been audited, but management has assured its accuracy and completeness[2]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete view of its financial status as of June 30, 2023[122]. - The company has not made any changes to significant accounting policies or estimates during the year[189]. Risk Factors - The company has outlined potential risks in its management discussion and analysis section, urging investors to pay attention to these risks[6]. - The company faces risks related to industry policies, including potential changes in U.S. regulations affecting oil and gas development, which may impact short-term performance[36]. - Currency exchange rate fluctuations present a risk, as the company's operations are primarily in USD while financial reporting is in RMB, potentially affecting reported performance[36]. Environmental and Social Responsibility - The company has committed to environmental protection, adhering to local laws and regulations, and has not experienced any major environmental incidents during the reporting period[49]. - The company is actively pursuing a green low-carbon development strategy, focusing on energy conservation and emission reduction[49].