SSC(600871)2024-08-20 11:44Financial Performance - The company reported a significant increase in revenue, achieving a total of 10 billion RMB for the first half of 2024, representing a 15% growth compared to the same period last year[10]. - Operating revenue for the reporting period was RMB 36,821,444 thousand, a decrease of 0.8% compared to the same period last year[11]. - Net profit attributable to shareholders was RMB 451,807 thousand, representing a 38.6% increase year-on-year[11]. - Basic earnings per share increased to RMB 0.024, up 41.2% from RMB 0.017 in the same period last year[12]. - The weighted average return on net assets rose to 5.48%, an increase of 1.19 percentage points year-on-year[12]. - The company reported a total revenue of RMB 36,492,421 thousand for the first half of 2024, with a gross margin of 8.1%[42]. - The company reported a revenue decrease of 4.8% in mainland China, while revenue from Hong Kong, Macau, Taiwan, and overseas increased by 14.0%[43]. - The company’s subsidiary, Sinopec International Petroleum Engineering Company, achieved a net profit of RMB 279,067 thousand[40]. Market Expansion and Strategy - The company has provided a positive outlook for the second half of 2024, projecting a revenue growth of 12% to 15% based on current market trends and demand[10]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2025[10]. - A strategic acquisition of a smaller competitor was completed, which is anticipated to contribute an additional 1 billion RMB in annual revenue[10]. - The company plans to enhance its technological capabilities in geophysical exploration and strengthen cooperation with international oil service companies[48]. - The company will focus on expanding its international business in markets such as Saudi Arabia, Kuwait, Ecuador, Mexico, and Uganda, ensuring project compliance and efficiency[51]. Research and Development - New product development includes the launch of a cutting-edge drilling technology expected to enhance efficiency by 25%[10]. - The company applied for 478 patents in the first half of 2024, including 292 invention patents, reflecting its commitment to technological innovation[30]. - Research and development expenses increased by 36.9% to RMB 1,115,981 thousand, attributed to accelerated project implementation[34][35]. Environmental and Sustainability Initiatives - The company has initiated a new strategy focusing on carbon capture and storage (CCUS), aiming to reduce emissions by 40% over the next five years[10]. - The company has implemented an energy efficiency management plan, achieving a comprehensive energy consumption of RMB 0.166 per ten thousand yuan of industrial output, a year-on-year decrease of 5.6%[78]. - The company has established a complete environmental emergency management system and conducts regular training and drills for emergency response plans[79]. - The company reduced carbon emissions by 16.3 thousand tons in the first half of 2024, with total emissions amounting to 1.021 million tons[80]. Financial Position and Assets - Total assets at the end of the reporting period were RMB 75,900,751 thousand, a 1.0% increase from the previous year[15]. - The company's cash and cash equivalents increased by 6.7% to RMB 3,005,730 thousand compared to the previous period[36]. - The inventory increased by 93.6% to RMB 2,330,945 thousand, mainly due to new and ongoing labor projects[36][37]. - The company's contract assets increased by 24.9% to RMB 20,239,946 thousand, indicating growth in project contracts[36]. Corporate Governance and Management - The company held three shareholder meetings and five board meetings during the reporting period, with a total of 14 resolutions passed at the shareholder meetings[68]. - The company emphasized improving corporate governance and investor communication, achieving new results in investor relations during the reporting period[68]. - The company has adopted the Corporate Governance Code and confirmed compliance by all directors, supervisors, and senior management during the reporting period[76]. Related Party Transactions - The company reported a significant related party transaction for raw materials and equipment procurement amounting to RMB 4,386,073 thousand, accounting for 28.0% of similar transactions[89]. - Engineering services provided to Sinopec Group amounted to RMB 21,180,590 thousand, representing 58.4% of similar transactions[90]. - The company has ongoing related party transactions that are deemed necessary for operational stability and are conducted at market prices[90]. Cash Flow and Financing - The net cash flow from operating activities was -RMB 190,066 thousand, a decline of 145.1% compared to the end of the previous year[11]. - The net cash inflow from financing activities for the first half of 2024 was RMB 1,508,206 thousand, an increase of RMB 408,116 thousand year-over-year[64]. - The company plans to broaden financing channels and develop good relationships with listed and state-owned financial institutions to secure more credit limits[139]. Shareholder Information - As of June 30, 2024, the total number of shareholders is 110,819, with 110,496 being domestic A-share shareholders[99]. - The largest shareholder, China Petroleum & Chemical Corporation, holds 56.51% of the shares, totaling 10,727,896,364 shares[101]. - The company has not disclosed any strategic investors or general legal entities becoming major shareholders[106]. Financial Reporting and Compliance - The financial report has been reviewed by Hong Kong Lixin Dehao Accounting Firm, ensuring compliance with international financial reporting standards[10]. - The company’s financial statements indicate no significant changes in accounting policies or prior period error corrections during the first half of 2024[127].