2023-08-29 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 10.5 billion RMB for the first half of 2023, representing a 15% year-over-year growth[1]. - The net profit for the first half of 2023 reached 1.2 billion RMB, which is a 20% increase compared to the same period last year[1]. - The company's operating revenue for the reporting period reached RMB 37,133,528 thousand, representing a 12.0% increase compared to the same period last year[12]. - The net profit attributable to shareholders was RMB 325,904 thousand, reflecting a significant increase of 58.0% year-over-year[12]. - The adjusted net profit attributable to shareholders, excluding non-recurring gains and losses, was RMB 285,044 thousand, marking a 90.0% increase compared to the previous year[12]. - The basic earnings per share for the reporting period was RMB 0.017, up 54.5% from RMB 0.011 in the previous year[13]. - The weighted average return on equity increased to 4.29%, up 1.33 percentage points from the previous year[14]. - In the first half of 2023, the company's consolidated operating revenue reached RMB 37,133,528 thousand, a 12% increase from RMB 33,148,652 thousand in the same period last year, marking the best performance since the 13th Five-Year Plan[22]. - The company reported a significant increase in inventory, rising by RMB 737,017 thousand due to new projects and unfinished labor tasks[38]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2024[1]. - The company aims to enhance its service capabilities across both conventional and unconventional oil and gas projects, aligning with its strategic vision of becoming a world-class technology-driven oil service company[19]. - The company is exploring potential mergers and acquisitions to enhance its service capabilities, with a focus on integrating advanced technologies[1]. - The company aims to strengthen its presence in target markets such as Saudi Arabia, Kuwait, Ecuador, Mexico, and Uganda, focusing on key project management and operational efficiency[54]. - The company plans to sign new contracts worth over RMB 246 billion in the second half of 2023, with RMB 177 billion expected from Sinopec Group[47]. Research and Development - New product development includes the launch of a carbon capture technology, expected to reduce emissions by 40% in the next five years[1]. - Research and development expenses increased by 18% in the first half of 2023, reflecting the company's commitment to innovation[1]. - The company applied for 431 patents in the first half of 2023, including 217 invention patents, reflecting its commitment to innovation and technology development[32]. - The company successfully completed the "Qilu Petrochemical - Shengli Oilfield Million-ton CCUS" project, marking a significant advancement in carbon capture and storage technology[29]. Financial Guidance and Projections - The company has set a performance guidance for the full year 2023, projecting a revenue target of 22 billion RMB, which would represent a 10% increase from 2022[1]. - The company plans capital expenditures of RMB 3.75 billion in the second half of 2023, focusing on enhancing exploration and development service capabilities[58]. - The company anticipates achieving a potential efficiency gain of RMB 540 million through cost management and resource optimization initiatives[57]. Cash Flow and Financial Position - The net cash flow from operating activities was RMB 421,612 thousand, a significant recovery from a negative cash flow of RMB -537,926 thousand in the same period last year[12]. - The net cash inflow from operating activities for the first half of 2023 was RMB 421,612 thousand, an increase of RMB 959,538 thousand year-on-year, primarily due to payments received for previously unsettled project funds[68]. - The net cash outflow from investing activities in the first half of 2023 was RMB 1,633,442 thousand, an increase of RMB 1,140,851 thousand year-on-year, mainly due to increased equipment purchase payments[68]. - The net cash inflow from financing activities in the first half of 2023 was RMB 1,100,090 thousand, an increase of RMB 794,247 thousand year-on-year, primarily due to an increase in loan scale[68]. Environmental and Compliance Efforts - The company has established a comprehensive environmental emergency management system and conducts regular training and drills for emergency response teams[79]. - The company has implemented a "green enterprise action plan" to enhance environmental management capabilities and promote energy-saving technologies[78]. - The company has maintained compliance with environmental protection laws and regulations, ensuring that emissions meet local standards[78]. - The company has actively promoted the use of clean energy sources such as electricity and natural gas in its operations[79]. Related Party Transactions - The company reported significant related party transactions, including procurement of raw materials and equipment from Sinopec Group amounting to RMB 4,904,459 thousand, which represents 31.6% of similar transaction amounts[90]. - The company provided engineering services to Sinopec Group totaling RMB 22,572,244 thousand, accounting for 61.5% of similar transaction amounts[90]. - The company emphasized that all related party transactions were conducted at market prices and adhered to fair and transparent principles, ensuring no adverse impact on profitability or independence[91]. Legal and Regulatory Matters - The company has no significant litigation or arbitration matters pending during the reporting period[84]. - The company confirmed that there were no legal investigations or penalties against its directors, supervisors, senior management, or controlling shareholders during the reporting period[88]. - The arbitration ruling on a contract dispute resulted in the company being ordered to pay approximately RMB 11.77 million and other costs, while it is also seeking repayment of RMB 322 million from the claimant[85]. Shareholder Information - The total number of ordinary shareholders was 113,975[103]. - The largest shareholder, China Petroleum & Chemical Corporation, holds 10,727,896,364 shares, representing 56.51% of total shares[104]. - The company has a diversified shareholder structure, with major shareholders including China Petroleum & Chemical Corporation and CITIC Group, ensuring stability and support[130]. Accounting and Financial Reporting - The company’s financial report is prepared in accordance with Chinese accounting standards, with amounts presented in thousands of RMB[114]. - The financial statements comply with the accounting standards issued by the Ministry of Finance, reflecting the financial position and operating results as of June 30, 2023[138]. - The company has not made any adjustments to its accounting policies during this period, ensuring consistency in financial reporting[125].