Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 6,176 million, a decrease from RMB 7,370 million for the same period in 2022, representing a decline of approximately 16.2%[2] - Gross profit for the same period was RMB 1,064 million, down from RMB 1,408 million in 2022, indicating a decrease of about 24.4%[3] - Net profit attributable to the owners of the company was RMB 1,715 million, compared to RMB 937 million in the previous year, reflecting an increase of approximately 83%[4] - Basic earnings per share increased to RMB 0.37 from RMB 0.20, marking an increase of 85% year-over-year[3] - The company reported a pre-tax profit of RMB 1,840 million, up from RMB 1,296 million in the previous year, an increase of approximately 42%[3] - Other income for the period was RMB 57 million, compared to RMB 33 million in the same period last year, showing an increase of approximately 75%[3] - The group’s net profit for the period was RMB 1,725.5 million, an increase of RMB 679.5 million or 65.0% compared to RMB 1,046.0 million in the same period of 2022[62] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 23,697 million, slightly up from RMB 23,498 million at the end of 2022[9] - Total equity increased to RMB 18,772 million from RMB 17,777 million, representing a growth of about 5.6%[7] - The company’s total liabilities decreased to RMB 4,926 million from RMB 5,721 million, indicating a reduction of about 13.9%[9] - The group’s total interest-bearing debt was RMB 2.00 billion, with a capital debt ratio of 9.7% as of June 30, 2023[66] Cash Flow and Dividends - The company did not declare any dividend for the current period, compared to a proposed dividend of RMB 820 million in the previous year[7] - As of June 30, 2023, the company held cash and cash equivalents of RMB 1,064.4 million, an increase from RMB 528.8 million at the beginning of the year[67] - The net cash inflow from operating activities for the first half of 2023 was RMB 378.5 million, while net cash inflow from investing activities was RMB 1,011.8 million[67] - The company declared a dividend of RMB 0.178 per share for the fiscal year 2022, totaling RMB 820,580,000 distributed, compared to RMB 711,138,000 for the previous year[38] Production and Sales - The urea segment generated revenue of RMB 2,520,008 thousand, while the phosphate and compound fertilizer segment generated RMB 1,193,639 thousand, and the methanol segment generated RMB 1,062,075 thousand[14] - In the first half of 2023, the company's urea production reached 1,044,993 tons, with a sales volume of 1,043,916 tons, achieving an operating rate of 113.5%[51] - The company produced 68,700 tons of methanol and sold 65,500 tons during the same period, reflecting a strong operational performance[49] - The sales volume of compound fertilizers decreased by 33.0% year-on-year, resulting in a revenue drop of RMB 588.3 million[52] Market Conditions - The domestic urea price experienced a significant decline, dropping over RMB 700 per ton by mid-June 2023, following a peak of RMB 2,700 per ton earlier in the year[44] - The price of diammonium phosphate fell from RMB 3,800-3,850 per ton at the beginning of the year to RMB 2,400 per ton by the end of June 2023, reflecting a decrease of over RMB 1,000 per ton[45] - The overall chemical product market faced continuous price declines due to weak domestic and international demand, with prices adjusting downward throughout the first half of 2023[46] Governance and Compliance - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[81] - The company is committed to transparency by disclosing its performance on the Hong Kong Stock Exchange[81] - The company has a structured approach to corporate governance with independent non-executive directors[81] - The company continues to adhere to regulatory requirements for financial reporting and disclosures[81] Other Financial Metrics - The effective corporate income tax rate for the group is 25% for entities located in China[25] - The group recognized government grants of RMB 35,206 thousand during the six months ended June 30, 2023, compared to RMB 15,947 thousand in the same period of 2022[17] - The group’s depreciation and amortization expenses for the six months ended June 30, 2023, totaled RMB 267,824 thousand, slightly down from RMB 271,077 thousand in the same period of 2022[21] - Administrative expenses rose to RMB 272.7 million, an increase of RMB 21.3 million or 8.5% from RMB 251.4 million in the same period of 2022[56] Strategic Initiatives - The company plans to enhance production safety, optimize business models, and promote digitalization in smart factories and sales[75] - The company is exploring opportunities in green methanol production and has established partnerships with several downstream enterprises[50]
中海石油化学(03983) - 2023 - 中期业绩