Shang Hai Zheng Quan Bao·2025-08-20 19:41Core Viewpoint - The company reported a decline in revenue and increased losses for the first half of 2025, attributed to external economic challenges and industry competition, while emphasizing ongoing efforts in high-quality development and innovation [5][21][22]. Company Overview - The company did not distribute profits for the first half of 2025 and did not implement capital reserve transfers to increase share capital [5][30]. - As of June 30, 2025, the company had a total debt balance reduced by RMB 11.82 billion compared to the beginning of the period [15]. Financial Performance - The company's revenue for the first half of 2025 was RMB 39.5 billion, a decrease of RMB 3.99 billion or 9.17% year-on-year [5]. - The pre-tax loss was RMB 583 million, compared to a profit of RMB 12 million in the same period last year, marking an increase in loss of RMB 595 million [5]. - The net loss after tax and non-controlling interests was RMB 449 million, an increase in loss of RMB 452 million compared to a profit of RMB 3 million in the previous year [5][12]. Production and Sales - The total production of main products was 5.5768 million tons, a decrease of 4.35% year-on-year [6]. - The company processed 6.3249 million tons of crude oil, including 556,400 tons of processing, a decrease of 4.93% year-on-year [6]. - The sales net for the first half of 2025 was RMB 33.498 billion, a decline of 10.66% year-on-year, with refining and chemical sales net decreasing by 16.14% and 3.21% respectively [10]. Cost Management - The company's sales cost was RMB 34.139 billion, a decrease of 9.11% year-on-year, accounting for 101.91% of sales net [10]. - The crude oil processing cost was RMB 23.085 billion, a reduction of RMB 2.735 billion year-on-year, with the unit processing cost decreasing by 8.67% [11]. Strategic Initiatives - The company is focusing on safety and environmental management, aiming to achieve a green enterprise rating and enhance risk management [21][22]. - The company is accelerating project construction and technological upgrades, including the clean efficiency improvement of thermal power units and the development of high-performance carbon fiber [8][22]. Market Outlook - The company anticipates a challenging market environment in the second half of 2025, with a focus on optimizing operations and enhancing innovation to drive growth [21][22].