SPC(600688)2023-09-20 16:00Financial Performance - The company's operating revenue for the first half of 2023 was RMB 44,937,051, a decrease of 2.10% compared to RMB 45,900,355 in the same period last year[7]. - The total loss for the period was RMB -1,211,974, representing an increase in loss of 173.83% from RMB -442,601 in the previous year[7]. - The net loss attributable to shareholders of the parent company was RMB -988,277, which is a 126.65% increase from RMB -436,042 in the same period last year[7]. - The basic loss per share for the first half of 2023 was RMB -0.092, compared to RMB -0.040 in the same period last year[9]. - The company reported a significant tax benefit of RMB 226,288 thousand due to increased losses compared to the previous year[30]. - The company reported a gross loss of RMB 1,090,281 thousand, compared to a gross loss of RMB 539,032 thousand in the previous year, indicating a significant increase in losses[106]. - The net loss attributable to shareholders reached RMB 988,277 thousand, a 126.65% increase compared to RMB 436,042 thousand in the same period last year[30]. Cash Flow and Financial Position - The net cash flow used in operating activities was RMB -226,882, a significant decline from RMB -6,405,122 in the previous year[7]. - The group's cash outflow from operating activities in the first half of 2023 was RMB 280 million, significantly reduced from RMB 6.445 billion in the same period last year, due to lower cash payments for goods and taxes[22]. - The company's cash and cash equivalents at the end of June 2023 stood at RMB 4,611 million, a significant increase from RMB 2,439 million at the end of June 2022[116]. - The net cash inflow from financing activities was RMB 3,427,414 thousand for the first half of 2023, compared to RMB 1,946,321 thousand in the same period of 2022, representing a year-over-year increase of approximately 76%[196]. - The net cash inflow from investment activities for the first half of 2023 was RMB 513,477 thousand, down from RMB 1,776,708 thousand in the first half of 2022[195]. Assets and Liabilities - The total assets increased by 1.11% to RMB 41,701,821 from RMB 41,242,782 at the end of the previous year[7]. - The total liabilities as of June 30, 2023, amounted to RMB 16,295,519 thousand, an increase of 9.5% from RMB 14,871,357 thousand at the end of 2022[192]. - The total equity attributable to shareholders of the parent company decreased to RMB 25,276,032 thousand from RMB 26,243,746 thousand, reflecting a decline of 3.7%[192]. - The company's total assets as of June 30, 2023, were RMB 41,701,821 thousand, compared to RMB 41,242,782 thousand at the end of 2022, indicating a slight increase[192]. - The company's total liabilities amounted to RMB 15,428,340 thousand, compared to RMB 13,998,338 thousand at the end of 2022, an increase of 10.24%[188]. Operational Efficiency and Cost Management - The company is focusing on optimizing product structure and improving product quality to adapt to the changing market dynamics and increasing competition[14]. - The company has made progress in optimizing its business processes and reducing costs, with a focus on increasing production efficiency and reducing losses[18]. - The company reduced its other auxiliary material expenses by 23.74% to RMB 3.726 billion compared to the same period last year[20]. - The company achieved a product sales rate of 98.93% and a cash collection rate of 100% for the first half of 2023[16]. Research and Development - R&D expenses increased to RMB 68,062 thousand, up 86.85% from RMB 36,426 thousand in the previous year[30]. - The company is actively researching new technologies in the refining sector, including green raw material technology and CO2 capture and utilization technology[13]. Market and Industry Position - The company is positioned in the rapidly growing East China region, which is a key market for high-quality petrochemical products[13]. - In the first half of 2023, domestic crude oil production and processing both increased, while product prices and revenues saw a decline year-on-year[13]. - The company has over 50 years of experience in the petrochemical industry, which enhances its competitive advantage in quality and logistics[14]. Environmental Compliance and Sustainability - The company has received the title of "Green Enterprise" from Sinopec Group as of January 13, 2023[70]. - The company achieved a 100% compliance rate for sulfur dioxide emissions, with an actual average concentration of 6.39 mg/m3 against a limit of 35 mg/m3[75]. - The company has implemented effective pollution prevention measures, achieving stable emissions within regulatory limits[75]. - The company has established nine emergency response plans for environmental incidents, including specific plans for water body risks and hazardous chemical leaks[77]. Shareholder and Governance - The company has not issued any bonds for all subsidiaries[38]. - The company has not changed its accounting firm during the reporting period[53]. - The company has complied with all provisions of the Corporate Governance Code during the reporting period[101]. - The first meeting of the Audit and Compliance Management Committee was held on August 22, 2023, to review financial reports and discuss risk management[100].