BOMESC(SH:603727)2023-07-21 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥900,460,969.61, a decrease of 42.37% compared to ¥1,562,533,243.71 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was -¥71,028,412.44, representing a decline of 240.13% from a profit of ¥50,685,741.35 in the previous year[21]. - Basic earnings per share for the first half of 2023 were -¥0.25, down 238.89% from ¥0.18 in the same period last year[22]. - The weighted average return on net assets was -2.16%, a decrease of 3.75 percentage points from 1.59% in the previous year[22]. - The decrease in operating revenue was primarily due to a reduction in orders and completed work volume during the period[23]. - The decrease in net profit attributable to shareholders was mainly due to a reduction in operating profit[23]. - The company reported a significant increase in interest income to CNY 18,050,970.10, compared to CNY 5,427,375.40 in the same period last year, marking a rise of 232.5%[146]. - The company reported a comprehensive income total of -70,603,446.52 RMB for the first half of 2023, reflecting a decrease in overall profitability[161]. Cash Flow and Assets - The net cash flow from operating activities increased to ¥254,043,193.04, compared to -¥144,475,025.81 in the same period last year, indicating improved cash management[21]. - The total assets decreased by 7.97% to ¥4,741,032,634.50 from ¥5,151,633,687.78 at the end of the previous year[21]. - The net cash flow from operating activities for the first half of 2023 was -37,094,482.26 RMB, an improvement from -316,119,663.10 RMB in the same period of 2022[156]. - Cash and cash equivalents increased to RMB 2,012,762,744.55 from RMB 1,960,553,644.51, showing a growth of approximately 2.0%[140]. - The company's cash and cash equivalents are subject to restrictions totaling RMB 333,212,403.60 due to deposits and guarantees[69]. - The total amount of contract assets decreased by 42.64% to RMB 382,116,996.43 from RMB 666,185,686.83 year-on-year[61]. Market Position and Strategy - The company focuses on high-end clients in the natural gas liquefaction, offshore oil and gas development, and mining sectors, providing specialized modular integration design and construction services[30]. - The company is increasing its efforts in the natural gas liquefaction sector and expanding into new energy business areas, responding to rising LNG import demands from emerging markets[32]. - The UARU FPSO project marks a significant collaboration with MODEC, enhancing the company's presence in the high-end market and meeting stringent technical standards[35]. - The company has maintained a strong international market presence, serving clients across over 20 countries, including China, Brazil, and the Middle East[38]. - The company has successfully signed contracts for projects like UARU FPSO, rapidly increasing its order backlog[39]. - The FPSO market is expected to evolve towards higher standards, driven by the need for lower carbon emissions and improved production efficiency[34]. Research and Development - Research and development expenses decreased by 32.98% to RMB 43,261,914.95 from RMB 64,554,415.34 year-on-year[58]. - As of June 30, 2023, the company holds a total of 238 authorized patents, including 50 invention patents and 188 utility model patents[41]. - The company has established a high-level manufacturing technology innovation alliance in Tianjin, promoting resource sharing and technological innovation among marine equipment enterprises[41]. Environmental Responsibility - The company was designated as a key pollutant discharge unit by the Tianjin Ecological Environment Bureau in 2023, indicating its environmental impact[96]. - The company has implemented a photovoltaic transformation plan for its power supply system, aimed at reducing energy costs and carbon emissions[49]. - The company has passed the ISO 14001:2015 environmental management system certification, enhancing its commitment to environmental responsibility[111]. - The company has been actively promoting water-saving and energy-saving technologies to reduce environmental impact and enhance resource utilization efficiency[111]. Risks and Challenges - The company is facing industry cyclicality risks, particularly in the LNG and offshore oil and gas sectors, which are sensitive to economic fluctuations[77]. - Political risks, such as the Russia-Ukraine conflict, could create uncertainties for ongoing and prospective projects[83]. - The company faces significant market competition risks due to the presence of experienced competitors from Europe, the US, Singapore, South Korea, and China, which have large asset scales and first-mover advantages[84]. Financial Management - The company has established a scientific budget management mechanism to control project costs and manage changes effectively[82]. - The company has committed to not transferring more than 25% of its shares during the lock-up period after the expiration of the lock-up period[116]. - The company reported a total guarantee amount of RMB 75,000.00 million, which accounts for 23.31% of the company's net assets[123]. - The company provided a credit guarantee of RMB 75,000.00 million for its subsidiary Tianjin Bomaike Ocean Engineering Co., Ltd. as of June 30, 2023[123].