HONG KONG, CHINA / ACCESSWIRE / August 21, 2023 / SINOPEC Engineering (Group) Co., Ltd. (“SEG” or the “Company”, together with its subsidiaries collectively known as the “Group”) (stock code: 2386) today announces its interim results for the six months ended 30 June 2023 (the “Reporting Period”).
During the first half of 2023, the world economic recovery continued to come under pressure, crude oil prices fluctuated downward, and consumption in the chemical market was sluggish, which brought great challenges to the development of the industry and the Company’s operation. In the face of difficulties and challenges, the Group adhered to market-oriented, customer-centric, and strived to create sound business performance and achieved a series of new development achievements. During the Reporting Period, the Group recognized the total revenue of RMB24.830 billion, and the net profit was RMB1.317 billion. The value of new contracts amounted to RMB37.731 billion, exceeding the half year targt with strong continuation in domestic and overseas markets.
In terms of value realization – the Group is committed to sharing the company’s development achievements with shareholders. In view of the Group’s profitability, shareholder returns and the needs for future development, the Board declared an interim dividend of RMB0.119 per share, with a dividend payout ratio of 40% and maintain dividend stability. In order to improve the quality as an issuer and promote the realization of the Company’s value, and according to the authorization granted at the shareholder meeting, the Board approved a share repurchase implementation plan on August 18. The Company planned to repurchase the Company’s shares at an appropriate time in the near future. This is the first time the Company has launched a share repurchase plan since it went public in 2013, showing the determination of the Board to enhance corporate value and confidence in the Company’s medium and long-term development.
In terms of tehnology innovation – the Group signed 230 new technology development contracts and 36 new licensing and service contracts, the total amount of technology development and licensing contracts reached RMB494 million. In additional to the RTC industrial demonstration plant achieved significant breakthrough, the pilot plant for direct olefin production from syngas of the Group was successfully operated in Yangzi Petrochemical, and the indicators of one-way conversion rate and olefin selectivity of the reaction reached advanced levels. This technology has the advantages of simplified process flow and low equipment investment, and will consolidate the Group’s advantages in the field of coal chemicals. On LNG cold energy utilization technology and green hydrogen industry chain reserved technology, the Group is prepared for enriching energy and chemical supply under the global carbon reduction policy.
In terms of safety, quality and environmental protection – the Group took “strengthening procss control” as the main line, and promoted the system in depth, strengthened the ability of all employees, grasped the implementation of the whole process, and built barriers in an all-round way. Strive to promote the deep integration of QHSE management system with production and operation, resolved major HSE risks through comprehensive management and special actions, and improve the inherent and sensory quality of the projects. The Group continued to promote green enterprise actions, and built a fully enclosed anti-corrosion plant in Zhenhai and other projects to solve the problem of unorganized VOCs emissions from the prefabrication plant of the project;; successfully planted more than 15,000 trees in the yellow sand surrounding the camp of the Saudi Executive Center, and built an oasis, which could play the role of sewage utilization, emission reduction and carbon reduction, and sand fixation and soil protection. During the first half of 2023, the Company’s cumulative safety man-hous were 128 million, an increase of 7.9% over the same period last year. No quality, safety or environmental accidents occurred, and the Company’s safety, high-quality and clean production situation was stable and controlled.
In terms of market expansion – during the Period, the Group strived to forge ahead and expand the market. The value of new contracts signed by the Group was RMB37.731 billion. Domestically, the Group’s dominant position in the refining and chemical engineering market has been continuously consolidated with approximately RMB29.949 billion in new contracts signed during the first half. We signed a batch of contracts for front-end project construction consultation and design, including Luoyang Ethylene, Maoming Ethylene and CNOOC Shell Phase III, and EPC main contracting and construction contracts for several large-scale park projects, including PetroChina Jihua Transformation and Upgrading Project, Zhenhai Refining and Chemical High-end Synthetic New Materials Projct, CNOOC Daxie Petrochemical Upgrading, Renovation and Expansion Project and the EPC Contracting and construction contract of the multi-bid sections of the BASF integration project. During the first half, total value of new contracts from non-Sinopec Group amounted to RMB22.958 billion, representing 60.8% of total new contracts, deepening the cooperation with non-Sinopec Group project owners led by PetroChina and CNOOC. During the Reporting Period, the Group signed 73 new contracts related to emerging business, with a new contract value of approximately RMB2.021 billion, and the expansion of emerging business continued to accelerate. the Group’s new contracts signed overseas amounted to approximately US$1.112 billion, representing a significant year-on-year increase of 107.1%. In the first half of the year, the Group’s network in international operations was further expanded, and maintained high-frequency interactions on pre-project planning, front-end engineering services and EPC impementation with national oil companies such as Saudi Aramco, Sabek, United Arab Emirates, Kuwait, Malaysia, Thailand, and Kazakhstan; Carried out high-level mutual visits with TR, TCM, Saipan, JGC and other international engineering companies to discuss cooperation intentions and deepen strategic partnerships.
In terms of project execution – during the Reporting Period, the Group made every effort to ensure the smooth operation of 1,242 ongoing projects, among which 1,108 are domestic and 34 are overseas. All project sites were under control in terms of progress, expenditure, safety, quality and environmental protection. Domestically, the Group promoted the construction of key projects with high quality. Tianjin Nangang Ethylene Project successfully entered the peak period of engineering construction. ExxonMobil Huizhou Ethylene Project, PetroChina Jihua Transformation and Upgrading Project, Yulong Petrochemical and other projects advanced efficiently. Huajin, Luoyang and Maoming Ethyene and other major projects have completed the preliminary design work on schedule.
Overseas, the Group’s performance management, cost management, compliance management and risk control capabilities have been comprehensively improved. At present, the Company’s Saudi project group has a total of 19 projects in execution, with a total contract value of USD1.9 billion, and the proportion of localized labor exceeds 85%; projects including ExxonMobil Singapore CRISP integration, Thailand’s clean energy, Algeria’s LNG storage tanks and MTBE were progressing well.
Chairman of SEG, Mr. JIANG Dejun said: “Facing the future, the growth momentum of the world economy needs to be restored, and more inclusive and balanced development opportunities are needed. As an important engine of economic development, the construction of the energy and chemical industry on a global scale is still flourishing and ascending. At the same time, climate change has become an imminent challenge facing the world. Th realistic pressure of abnormal climate requires us to work harder, create more paths for sustainable development, and accelerate the implementation of a series of technology reserves of the Group in the fields of carbon reduction and green environmental protection. Facing this important opportunity, the new Board will strengthen overall coordination and planning, enhance strategic guidance, and move forward steadfastly along the road of product excellence, brand excellence, innovation leadership and modern governance to achieve world-class level. The company will continue to improve corporate governance to ensure the standardized procedures of the Board. The company will continue to strengthen strategic planning and establish clear development goals for the new stage.
The Group will continue to promote scientific and technological innovation, and play the dual roles of ‘raising questions’ and ‘providing solutions’. The Group will take the initiative to take up the industry reform andactively lead the engineering industry to a new industry. The Group will vigorously implement ‘global development’ and actively promote the internationalization of operations. The Group will actively exert its listing functions and strive to achieve diversified value creation. We believe that a cleaner, greener and lower-carbon energy and chemical industry will provide stronger momentum for global development, and will also convey the strong yearning of more countries for a better living. With the strong support of shareholders and the society, and with the relentless efforts of the Board, the management and all employees, SEG will create greater value for shareholders, society and employees!”
Business Review and Highlights
Strive to forge ahead and expand the market
During the Reporting Period, the value of new contracts signed by the Group was RMB37.731 billion, achieving more than half of the time and completing the target. During the Reporting Period, the Group signed approximatly RMB29.949 billion in new contracts in China, maintaining its overall competitiveness in the domestic market. We signed a batch of contracts for front-end project construction consultation and design, including Luoyang Ethylene, Maoming Ethylene and CNOOC Shell Phase III, and EPC main contracting and construction contracts for several large-scale park projects. Representative new contracts include the EPC Contracting for multiple sets of equipment for Zhenhai Refining and Chemical High-end Synthetic New Materials Project with a contract value of approximately RMB3.288 billion; the EPC project of ethylene plant of PetroChina Jihua Transformation and Upgrading Project with a contract value of approximately RMB3.173 billion; and the EPC Contracting and construction contract of the multi-bid sections of the BASF integration project with a contract value of approximately RMB1.755 billion; the EPC Contracting of Qingdao Refining and Chemical Liquefied Gas Safety Improvement Project with a ontract value of approximately RMB1.353 billion; the EPC Contracting of polypropylene of CNOOC Daxie Petrochemical Upgrading, Renovation and Expansion Project with a contract value of approximately RMB1.673 billion; the EPC Contracting of Changling Refining and Petrochemical 1 million t/a continuous reforming combined plant with a contract value of approximately RMB873 million.
During the Reporting Period, the Group’s new contracts signed overseas amounted to approximately US$1.112 billion, representing a significant year-on-year increase of 107.1%, maintaining a strong market development momentum. Representative new contracts include the tank farm of the Saudi AMIRAL project and the EPC Contracting for the integration project with the SATORP refinery with a contract value of approximately US$727 million, and the offshore [technology+] high-end engineering services have achieved good results and successfully signed a number of front-end service contracts such as the pre-design of the DNOC project in the United Arab Emirates, the technical consultation of the Mozyr polypropylene project in Belarus, and the process package design of the New Logan polystyrene project in Vietnam.
During the Reporting Period, the Group signed 73 new contracts in the new energy, new materials and other new fields, with a new contract value of approximately RMB2.021 billion, and the expansion of emerging business continued to accelerate.
Smooth and orderly implementation of projects
Tianjin Nangang Ethylene Project was in the peak stage of construction, and the overall progress was over 80%.
Baling Caprolactam Project was in the final stage of construction, and the overall progress was over 90%.
Zhenhai Refining and Chemical High-end Synthetic New Materials Project was in the civil construction stage, and the overall progress was over 30%.
PetroChina Jihua Transformation and Upgrading Project wasin the detailed design stage, and the overall progress was over 10%.
Longkou LNG Project ws in the stage of rapid construction, and the overall progress was over 60%.
Tianjin LNG Project (Phase II) was in the final stage of construction, and the overall progress was over 90%.
Shandong LNG Project (Phase III) was in the final stage of construction, and the overall progress was over 90%.
Wenzhou LNG Project has been delivered.
Kuqa Green Hydrogen Demonstration Project has been delivered and hydrogen gas was successfully produced, achieving full procedure integration.
Saudi Aramco crude oil transportation pump station upgrade and renovation project was in the peak stage of construction, and the overall progress was over 60%.
ExxonMobil Singapore CRISP integration project was in the installation stage of steel structure, main gallery, etc., and the overall progress was over 10%.
Vigorously promote scientific and technological breakthroughs
During the Reporting Period, the Group has made prominent achievements in research and development of science and technology. The Group siged 230 new technology development contracts and 36 new licensing and service contracts, the total amount of technology development and licensing contracts reached RMB494 million.
During the Reporting Period, the Group filed 405 new patent applications, among which, 292 were invention patents, accounting for 72.1%; 271 newly licensed patents, 147 of which were invention patents, accounting for 54.2%, patent quality has been continuously optimized.
During the Reporting Period, the Group received a total of 36 science and technology progress awards in scientific and technical innovation and engineering construction fields at the provincial and above level. Among these awards, we won 5 first prizes, 4 second prizes and 2 third prizes of Sinopec Science and Technology Progress Award; 1 national patent silver award; 2 National Excellent Design Awards; 19 provincial and ministerial level excellent design awards.
The Group’s engineering technology innovation closely focuses on the Company’sstrategy and market demand, and key scientific research projects have been steadily advanced, and new progress has been made in key core technology research. During the Reporting Period, the Group carried out special work on oil refining and chemical industry chain and technology chain combing, providing forward-looking guidance for the next step of technology upgrading and development. At the same time, the Company will study and judge the situation in a timely manner according to the requirements of industry development, carry out the work of “extended chain”, “complementary chain” and “strong chain”, and do a good job in technology development and market development strategic deployment.
During the Reporting Period, the Group focused on the transformation of traditional technologies and the goal of “Carbon Peaking and Carbon Neutrality”, and achieved major breakthroughs in engineering transformation. The world’s first set of 3 million t/a RTC (RESIDUUM TO CHEMICALS) industrial demostration unit was successfully put into operation, realizing the leapfrog progress of catalytic cracking technology in China, and providing strong technical support for the transformation and upgrading of refining and chemical from traditional fuel refineries to chemical refineries. It will also lay a solid foundation for the Group to expand market development and contract engineering projects in this field.
During the Reporting Period, China’s first 10,000-ton green hydrogen demonstration project － Kuqa photovoltaic green hydrogen demonstration project, was successfully put into operation, the project has a hydrogen production scale of 20,000 t/a, and green hydrogen is supplied to Tahe Refining and Chemical nearby, which can reduce carbon dioxide emissions by 485,000 tons per year. This project marks the first time in China to realize the whole industrial chain of 10,000-ton green hydrogen and green hydrogen refining and chemical projects, providing a replicable and replicable demontration case for the development of green hydrogen industry, and is of great significance to the rapid development of green hydrogen industry. As at the end of the Reporting Period, another 30,000-ton wind, solar, electricity and green hydrogen project undertaken by the Group － Ordos Green Hydrogen Project has entered the project implementation stage.
During the Reporting Period, the pilot plant for direct olefin production from syngas of the Group was successfully operated in Yangzi Petrochemical, and the indicators of one-way conversion rate and olefin selectivity of the reaction reached advanced levels, laying a solid foundation for the industrial application of this technology. Compared with the indirect Methanol To Olefin (MTO) technology using synthetic gas, this technology has the advantages of simplified process flow and low equipment investment. This technology will consolidate the Group’s advantages in the field of coal chemicals, and will also lay the foundation for the Grop’s subsequent contract of related technology and engineering business.
During the Reporting Period, the Group’s 150,000-ton/year CHPPO unit was successfully put into operation in Tianjin Sinopec, which further enriched the Group’s epoxy technology; the first domestic micro-interface enhanced diesel hydrogenation technology was successfully put into operation in Jinling Sinopec, achieving significant energy savings and carbon reductions. We completed the development of the process package of the kiloton-level liquid polyolefin technology industrialization test device, and promoted the development of polyolefin synthesis technology towards high performance and multi-function; developed cold energy power generation, thermal seawater desalination, electrolytic seawater hydrogen production and other application scenarios, reserve LNG cold energy utilization technology improved the efficiency of LNG cold energy utilization; we actively extended the green hydrogen industry chain, reserved geen synthetic ammonia and green methanol technology, and prepared for enriching energy and chemical supply under the global carbon reduction policy.
Continuous enhancement of project execution capability
During the Reporting Period, the Group continuously improved its production and operation capabilities, the Group has executed 1,242 projects in China and foreign countries, all projects under implementation domestically and overseas were under control in terms of progress, expenditure, safety, quality and environmental protection. Domestically, the Group fully leverages the advantages of group organization construction, projects such as Hainan Ethylene, Structural Adjustment for Transformation of Anqing Oil Refining Towards Chemical Industry, Kuqa Green Hydrogen have been completed and put into operation, projects such as Tianjin Nangang Ethylene, Huizhou Ethylene, Jihua Transformation and Upgrading, Yulong Petrochemical, Shandong LNG, Tianjin LNG have been efficiently promoted, proiding important support for the high-quality development and transformation and upgrading of the industry. Among them, the world’s first 3 million t/a RTC (RESIDUUM TO CHEMICALS) industrial demonstration plant was successfully put into operation in Anqing Petrochemical, realizing the leapfrog progress of China’s catalytic cracking technology, and is the successful practice of China’s first traditional refinery to chemical transformation, providing strong technical support for the transformation and upgrading of refining and chemical enterprises; the successful commissioning of the world’s largest green hydrogen project, Kuqa Green Hydrogen Project, marks the first time that China has achieved the whole industrial chain of 10,000-ton green hydrogen and green hydrogen refining and chemical projects, providing a replicable and replicable demonstration case for the development of the domestic green hydrogen industry, which is of great significance to the rapid development of the green hydrgen industry. In overseas market, the Group’s overseas project execution has fully resumed normal, the Saudi Arabia project Cluster and ExxonMobil Singapore CRISP integration project have been fully promoted, and the overseas business maintained continuous, stable and healthy operation.
During the Reporting Period, the Group continued to strengthen lean management, strengthen the overall planning of project resources, and make every effort to ensure the smooth operation of projects; with efficiency and progress as the core, implemented the “triple early warning” of schedule deviation, revenue deviation and budget deviation, and timely carried out corrective management; strengthened standardization and integration by optimizing the design workflow and professional division of labor interface; improved design and construction efficiency through modular design and modular construction; improved subcontracting management, strengthened the cultivation of strategic subcontractors, and effecively improved the execution capacity of subcontracting resources and project quality; organized management benchmarking, and optimized purchase program, so that purchase price negotiation and project supply assurance capability have been continuously enhanced.
During the Reporting Period, the Group increased the application of advanced equipment and technology, promoted the industrial application of automatic welding and welding robots, explored and promoted the implementation of standardization, automation, digitalization and modular construction in engineering construction, focused on improving ergonomics and quality, and actively led the innovation of engineering models. For the first time, the breakthrough of tank vertical seam automatic welding technology was realized, and it was popularized and applied in the tank construction of Tianjin LNG project, continued to promote the improvement of intrinsic safety, work efficiency and quality; the 9-axis all position intelligent weldin robot has been developed, which successfully realized the automatic intelligent 360-degree all-position one-time welding of pipelines, and the welding process was digitalized, and the quality control was visualized.
Maintenance of excellent state of safety, quality and environmental protection
During the Reporting Period, the Group took “strengthening process control” as the main line, and promoted the system in depth, strengthened the ability of all employees, grasped the implementation of the whole process, and built barriers in an all-round way, and resolved major risks and improved internal and sensory quality through comprehensive management and special actions. Strive to promote the deep integration of QHSE management system with production and operation and “three basics” work, do a good job in intrinsic safety construction and scientific and technological support, continue to promote green enterprise actions, and help the high-quality development of refining and chemical proects.
During the Reporting Period, the Group continued to promote green enterprise actions, and built a fully enclosed anti-corrosion plant in Zhenhai and other projects to solve the problem of unorganized VOCs emissions from the prefabrication plant of the project; the optimized design and construction of the Tianjin Nangang ethylene project significantly reduced solid waste emissions, set up a green construction site benchmark; successfully planted more than 15,000 trees in the yellow sand surrounding the camp of the Saudi Executive Center, and built an oasis, which could play the role of sewage utilization, emission reduction and carbon reduction, and sand fixation and soil protection.
During the Reporting Period, no quality, safety or environmental accidents occurred. As of the end of this report period, the Company’s cumulative safety man-hours were 128 million, an increase of 7.9% over the same period last year, and the Company’s safety, high-quality and clean production situaton was stable and controlled. During the Reporting Period, the Group’s Huizhou ethylene project was awarded the “Global Project President Safety Award” by ExxonMobil.
Further promote the application of digitalization
During the Reporting Period, the Group coordinated the promotion of the construction of the refining and chemical engineering business domain. In the operation management subdomain, promote standardized data governance of business processes, integrate the application architecture requirements of business domains into the Company’s management and control system, and further strengthen the “three middle platforms” functions of business, technology and data. In the subdomain of business operations, promote the digital transformation of enterprises, unify the planning of the whole business chain structure such as R&D, design, procurement, manufacturing, construction and delivery, focus on 10 key application fields, and further strengthen the sharing of “data + platform + appication” achievements. In terms of deepening applications, we will continuously improve the integrated application of the operation management platform of the refining and chemical engineering business domain and the digital twin of the intelligent factory.
During the Reporting Period, the Group’s design simulation adaptation verification passed the national acceptance, and won the 2023 Best Pioneer Management Award for Digital Transformation of Hexagon Digital Intelligence. During the Reporting Period, the Group’s design simulation industrial software adaptation verification has passed the national acceptance.
The construction of talent team
During the Reporting Period, the Group continued to promote the development strategy of “building a strong enterprise by relying on talents” and strengthen the construction of talent team. Implemented the second phase of the “Plan for raising of seedling” to build a platform for young talents to practice and exercise; carried out PMP project maagement training for all employees of the headquarters to systematically improve the professional management ability of the personnel of the headquarters; carried out an inventory of the international talents to further evaluate the international talent structure and talent capabilities, and consolidate the human foundation for better building an international team; further improved the expert database to better optimize the allocation of resources, and provide professional knowledge and technical support for policy formulation and innovative development. In overseas, we gradually improved the international talent training and introduction mechanism and took a pilot for the international professional manager system in the operation of overseas institutions.
Business Prospects
Facing the future, the growth momentum of the world economy remains to be restored, and more inclusive and balanced development opportunities are needed. As an important engine of economic development, the constuction of the energy and chemical industry on a global scale is still flourishing and ascending. At the same time, climate change has become an imminent challenge facing the world. The realistic pressure of abnormal climate requires us to work harder, create more paths for sustainable development, and accelerate the implementation of a series of technology reserves of the Group in the fields of carbon reduction and green environmental protection. Facing this important opportunity, the Group will strengthen overall coordination and planning, enhance strategic guidance, and move forward steadfastly along the road of product excellence, brand excellence, innovation leadership and modern governance to achieve world-class level.
The Group will continue to strengthen strategic coordination. The Company will adhere to the functional positioning of “strategic decision making center, resource allocation center, risk control center and service support center”, and guide the differentiated develpment of “one enterprise, one policy” of each Group member in the fields of new business and international operation. The Company will fully unleash the development vitality of each Group member as the main body of production and operation, and have a more balanced layout in the product chain and service chain, and continuously improve the integration and synergy ability, so as to make every effort to build the world’s leading technology-oriented engineering company. During the Reporting Period, the Group put forward an indicator system and development path for the high-quality development stage based on the “one interest, five rates”, and put forward the internationalization operation goal of promoting the proportion of international business to 30% in three to five years.
The Group will continue to promote technological innovation. On the one hand, the Group will pay attention to the key core technologies and focuses on shifting from producing refined oil products to chemicals and pecialty products, new chemical materials, clean coal utilization, energy saving and environmental protection and CCUS to continue to carry out technological research, accelerates technological integration innovation and engineering conversion; accelerates the integrated research and development layout of the whole industrial chain in the construction of hydrogen energy production, storage, transportation and terminal utilization, which forms the Company’s technical characteristics and continuously injects green development momentum into the high-quality development, and further promotes the integrated development of new energy and petrochemical industries. On the other hand, the Group will pay more attention to technological progress in the field of engineering construction and increases the research and development and promotion of soil treatment, intelligent demolition and safety technology; intensifies the application of advanced equipment and technology, and continuously promotes he development and industrial application of advanced tooling represented by automatic welding and welding robots to improve intrinsic safety and production efficiency.
The Group will actively lead the new industry in the engineering industry. The Group will continue to strengthen the integration and coordination of the entire industry chain, and coordinate the promotion of standardized design, factory prefabrication, modular construction, standardized construction site, information management and digital delivery. Systematically integrates design, procurement and construction to create a new operation process, promote the close integration of 3D files and in-depth prefabrication, and promote layered operation on the construction site. Increase the proportion of advanced tooling applications, strive to realize the transformation of engineering construction from on-site installation to factory manufacturing + on-site assembly, continuously improve the intrinsic safety and intrinsic quaity, continue to improve the on-site operating environment, and realize the green and low-carbon leadership in engineering construction.
The Group will actively promote the internationalization of our corporate operations. During the Reporting Period, the Group further improved our layout in domestic and overseas markets, established five major regional market centers in the Middle East, Southeast Asia, Central Asia, Americas and Africa. In the next step, the Group will accelerate the development of an international business ecosystem featuring overseas cooperation with domestic partners, strong alliances with international engineering companies, and deepening front-end services and long-term cooperation with strategic customers. The Group will continue to increase the allocation of resources in overseas market development and endeavored to enhance the comprehensive competitiveness of international operations, striving to stabilize the proportion of overseas business at 1/3. The Groupwill give full play to the efficiency advantages of China construction and continuously promoted the better integration of the construction model of international standards + Chinese characteristics into overseas business, making consistent progress towards the high-end of the value chain with a focus on the front end of the industrial chain. The Group will lay more emphasis on the internationalization of resource allocation by continuously promoting the construction of overseas low-cost centers and localized operation capabilities and improving the mechanism for training and introducing international talents.
The Group will strive to achieve diversified value creation. The Group will continue to explore the diversification of its main business and business model, gradually realize a diversified operation, and transform itself from an engineering contractor and equipment manufacturer towards an investment and financing + engineering service provider. The Group will actively make attemts to undertake overseas engineering projects in the mode of “investment-construction-operation”, while extending investment and financing to the fields of new technology research and development and new technology cooperation to enhance the competitiveness and value creation through investment. The Group will cultivate and develop professional, highlysophisticated, specialized and advanced “little giants” in the fields of new energy, new technology, new equipment and energy conservation and environmental protection, and acquire equities, expand business areas and extend value chain through various capital operations such as mergers and reorganizations and equity participation and control.
China’s economy has great development resilience and potential, the long-term good fundamentals have not changed, after the smooth turn of epidemic prevention and control, economic recovery will be a wave of development and tortuous progress. In the second half of 2023, the external environment face by the Group is still complex, the Group will adhere to bottom-line thinking and extreme thinking, while preventing various risks, strive to promote the stable consolidation of annual business performance, and go all out to complete the annual goals with high quality.
In terms of the scientific and technical innovation, the Group will strengthen and optimize technologies in traditional advantages fields, and speed up integration, innovation and engineering transformation of new energy and new material technology at the same time, and continuously enhance independent innovation capability through continuous optimization of innovation system and mechanism. Firstly, continue to promote the reform of system and mechanism of scientific research, optimize the mechanism of “public offer of reward for scientific and technical innovation” for major technical problems tackling projects of the Company, stimulate innovation vitality, and improve the efficiency of scientific and technical innovaton; do a good job in overall coordination, actively make good use of relevant innovation resources, form an “innovation consortium”, continue to increase scientific and technical innovation, promote the development of new technologies and the implementation of R&D results through multiple channels, and realize the integration and benefit of all links of “production, teaching, research and using”. Secondly, deeply study and interpret the “Carbon Peaking and Carbon Neutrality” target and strategic deployment, transform the constraints of the “Carbon Peaking and Carbon Neutrality” target into new opportunities for the Company’s development, and systematically carry out research from the links of carbon reduction at source, carbon reduction in process, carbon capture at the end and carbon resource utilization; carry out research of coupled application of nuclear power and oil refining and chemical industry, put forth efforts on development of core technical competitive power, and continue o strengthen innovation capability for engineering technology. Thirdly, in the field of hydrogen energy, make full use of the leading advantages accumulated by Kuqa green hydrogen projects, actively promote a number of major hydrogen energy projects such as Ordos and Ulanqab, accelerate the construction of integrated R&D layout of hydrogen energy production, storage, transportation and terminal utilization, promote the demonstration of hydrogen energy projects in the whole industry. Fourthly, in the field of new chemical materials, the Group will focus on tackling technical problems of key materials in new material field, rely on the current projects under implementation such as polyolefin elastomers, special rubber, degradable materials, strengthen the research and construction of supporting platforms such as polymerization and devolatilization technology of high-viscosity and ultra-high-viscosity systems, and provide support and guarantee for accelerating the development of the Compay’s new chemical material technology, expanding business fields and enhancing competitive advantages.
Summary of Financial Data and Indicators Prepared in Accordance with International Financial Reporting Standards (“IFRS”)
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