Zheng Quan Zhi Xing·2025-08-22 22:42Core Viewpoint - China Petroleum & Chemical Corporation (Sinopec) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit compared to the previous year [1]. Financial Performance - Total revenue for the first half of 2025 was 1,409.05 billion yuan, a decrease of 10.6% year-on-year [1]. - Net profit attributable to shareholders was 21.48 billion yuan, down 39.83% from the previous year [1]. - In Q2 2025, total revenue was 673.70 billion yuan, reflecting a 14.31% decline year-on-year, while net profit was 8.22 billion yuan, a decrease of 52.73% [1]. - Gross margin was 15.35%, down 2.66% year-on-year, and net margin was 1.67%, down 35.63% [1]. - Total expenses (selling, administrative, and financial) amounted to 63.22 billion yuan, representing 4.49% of revenue, an increase of 13.61% year-on-year [1]. Key Financial Ratios - Earnings per share (EPS) was 0.18 yuan, a decrease of 40.20% year-on-year [1]. - Operating cash flow per share was 0.50 yuan, an increase of 44.94% year-on-year [1]. - The company's return on invested capital (ROIC) was 4.92%, indicating weak capital returns [14]. Accounts Receivable and Debt - Accounts receivable amounted to 647.19 billion yuan, representing 128.63% of net profit, indicating a high level of receivables relative to profit [1][15]. - Interest-bearing debt increased by 16.87% to 3,561.17 billion yuan [1]. Changes in Financial Items - Accounts receivable increased by 45.98% due to expanded overseas trade operations [3]. - Accounts payable and other liabilities saw significant changes, with various items reflecting increased financing activities and operational adjustments [4][9][12]. Investment and Cash Flow - The company made strategic investments, including a significant stake in CATL, which contributed to a 1,064.18% increase in other equity investments [5]. - Cash flow from operating activities increased by 44.35%, attributed to reduced working capital needs [13]. Fund Holdings - The largest fund holding Sinopec is the Harvest CSI 300 Dividend Low Volatility ETF, which has reduced its holdings [16].