Core Viewpoint - The significant decline in international crude oil prices and the drop in downstream petrochemical product prices have adversely affected China Petroleum & Chemical Corporation's (Sinopec) performance in the first half of the year [2]. Financial Performance - Sinopec reported a 10.6% year-on-year decrease in revenue to 1.41 trillion yuan, with net profit attributable to shareholders falling by 39.8% to 21.483 billion yuan [2]. - The primary reasons for the revenue and profit decline include fluctuating international oil prices, decreased domestic gasoline and diesel demand, and low chemical margins [2]. Oil Price and Demand Trends - The average spot price of Brent crude oil decreased by 14.7% year-on-year to 71.7 USD per barrel in the first half of the year [2]. - Domestic refined oil demand fell by 3.6%, with gasoline and diesel consumption decreasing by 4.6% and 4.3%, respectively [2]. Business Segment Performance - Sinopec's main business revenue dropped by 11% to 1.38 trillion yuan due to lower prices and sales volumes of petroleum and petrochemical products [2]. - Among the top ten petrochemical products sold by Sinopec, half experienced a year-on-year decline in sales volume, with crude oil, kerosene, and diesel showing the most significant drops [2]. Sales Revenue Breakdown - Revenue from the sale of petroleum products accounted for nearly 60% of total revenue, amounting to 807.9 billion yuan, a 12% decrease year-on-year [3]. - Sales revenue from key products such as gasoline, diesel, and kerosene fell by 13.1% to 669 billion yuan, still representing over 80% of the company's petroleum product sales [3]. Industry Outlook - The peak demand for refined oil in China has significant implications for industry chain enterprises, with gasoline demand expected to peak in 2023 and overall oil demand projected to peak by 2028 [3]. - Sinopec plans to reduce its annual capital expenditure by approximately 5%, focusing on the development of comprehensive energy stations and the transformation of existing sales networks [3]. Strategic Initiatives - Despite a 5.8% year-on-year decline in total refined oil sales volume, Sinopec is accelerating the development of terminal gas and charging networks [5]. - The company achieved a 61.8% year-on-year increase in liquefied natural gas (LNG) sales volume, reaching 1.934 million tons, with an average selling price rising by 1.7% to 3,811 yuan per ton [5]. - Sinopec made a strategic investment in CATL, planning to build at least 500 battery swap stations in collaboration with the company [5].

Core Viewpoint - The significant decline in international crude oil prices and the drop in downstream petrochemical product prices have adversely affected Sinopec's performance in the first half of the year, leading to a decrease in both revenue and net profit [3][4]. Financial Performance - Sinopec reported a 10.6% year-on-year decline in revenue to 1.41 trillion yuan, with net profit falling by 39.8% to 21.483 billion yuan [3]. - The average price of Brent crude oil decreased by 14.7% year-on-year to $71.7 per barrel [3]. - Domestic refined oil demand fell by 3.6%, with gasoline and diesel consumption down by 4.6% and 4.3%, respectively [3]. Business Segment Analysis - The main business revenue from oil and petrochemical products decreased by 11% to 1.38 trillion yuan, with half of the top ten exported petrochemical products experiencing a decline in sales volume [3]. - Revenue from oil product sales accounted for nearly 60% of total revenue, amounting to 807.9 billion yuan, a 12% decrease [4]. - Sales revenue from gasoline, diesel, and kerosene dropped by 13.1% to 669 billion yuan, representing over 80% of the company's oil product sales [4]. Market Trends - The peak demand for refined oil in China has significant implications for industry chain enterprises, with gasoline demand reaching its peak in 2023 and expected to decline rapidly after 2030 [4]. - Overall oil product demand is projected to peak by 2028 [4]. Strategic Adjustments - Sinopec has decided to reduce its annual capital expenditure plan by approximately 5% due to resource and market considerations [4]. - The capital expenditure plan for marketing and distribution will focus on developing a comprehensive energy station network and upgrading existing sales networks [4]. Growth in Alternative Energy - Despite a 5.8% decline in total refined oil sales volume, the sales volume of vehicle LNG and charging services saw significant growth, with LNG retail market share leading domestically [6]. - Sales of liquefied LNG products reached 1.934 million tons, a 61.8% increase year-on-year, with an average selling price rising by 1.7% to 3,811 yuan per ton [6]. Strategic Investments - In May, Sinopec became a cornerstone investor in CATL, planning to build at least 500 battery swap stations this year [6]. - The investment in CATL led to a 1,064% year-on-year increase in other equity investment amounts, reaching 4.843 billion yuan [6].