Operational Performance - The company operates four jack-up drilling rigs, providing services to Abu Dhabi National Oil Company and the national oil company of Mexico, with all rigs performing normally throughout the year[7]. - The offshore asset management business has been the main profit contributor since the Company's transformation in 2018, with two units of rigs for PEMEX and two for Abu Dhabi National Oil Company operating successfully[60]. - The operational status of four drilling platforms remains strong, receiving positive feedback from clients, which lays a solid foundation for market consolidation in Mexico and future asset management expansion[68]. Financial Performance - In 2020, the company's revenue was $65,144,000, a decrease of 7.5% from $70,246,000 in 2019[41]. - Gross profit for 2020 was $11,234,000, down from $24,036,000 in 2019, indicating a significant decline in profitability[41]. - The company reported a profit attributable to equity shareholders of $10,916,000 for 2020, compared to $9,701,000 in 2019, showing a year-over-year increase of 12.5%[41]. - Current assets decreased to $157,296,000 in 2020 from $258,591,000 in 2019, reflecting a reduction of 39%[44]. - Total assets were reported at $229,930,000 in 2020, down from $356,178,000 in 2019, a decline of 35.4%[44]. - The company achieved a total revenue of approximately $65.1 million and a net profit of about $10.8 million for the year 2020, marking two consecutive years of profitability despite a challenging market environment[67]. Strategic Focus and Development - The company is focusing on the development of clean energy and marine energy-related technology industries, seeking investment opportunities to enhance overall performance[11]. - The company aims to maximize shareholder and investor interests through strategic investments along the industrial supply chain[11]. - The company is committed to achieving comprehensive development in the clean energy sector in line with the global energy revolution[13]. - The company plans to focus on the clean energy market, particularly offshore wind power, and aims to enhance its core competitiveness and achieve performance growth in 2021[71]. - The company aims to develop core equipment for the offshore wind power industry, leveraging its experience in technology and construction[163]. Market Trends and Opportunities - The new installed capacity of solar and wind power is expected to increase by 5TW by 2035, highlighting the significant growth potential in the clean energy market[65]. - The offshore wind power industry is expected to see significant growth, with China's annual average newly installed capacity needing to exceed 50 million kilowatts during the "14th Five-Year Plan" period[156]. - The offshore wind power installation and operation market is currently characterized by high demand, high profit, and a focus on technology[163]. - The forecast for global jack-up rig demand in 2021 is 360 rigs, reflecting a year-on-year growth of 4%[140]. Challenges and Risks - Despite achieving profitability, the Company faces challenges such as tight cash flows and low profit margins for certain products, which will be addressed in future efforts[65]. - The recovery of the offshore drilling market was interrupted by the COVID-19 pandemic, affecting utilization rates[118]. - The Group faced foreign exchange risk, with approximately 50% of its revenue denominated in US dollars while most of its Chinese subsidiaries operated in Renminbi[109]. Asset Management and Investments - The company established a Qingdao equipment manufacturing base to support its operational needs[22]. - The company signed a global settlement deed with Huangpu Shipbuilding in August 2020, which resulted in Huangpu Shipyard becoming a strategic shareholder[23]. - The company completed the disposal of approximately 150 acres of idle plants and land in February 2021, improving its asset-liability structure and increasing operating cash flow[75]. - The Company will continue to improve its asset-liability structure by seeking potential resource integration and investment opportunities in the ocean, energy, and technology industry chain[181][182]. Shareholder and Equity Management - The trustee did not purchase any shares under Share Award Plan 1 during the year ended 31 December 2020, holding a total of 21,147,456 shares, which represents approximately 0.7% of the issued share capital of the Company[190]. - Under Share Award Plan 2, the trustee purchased 45,760,000 shares at a total consideration of approximately HK$11,509,000, representing about 1.49% of the issued share capital at the Adoption Date[191]. - The purpose of both share award plans is to recognize contributions and align the interests of selected grantees with the sustainable growth of the Group[191].

Financial Performance - The Group's revenue for the six months ended 30 June 2020 reached approximately US$31.2 million, representing a decrease of approximately 3.8% from US$32.4 million for the same period in 2019[13]. - Gross profit amounted to approximately US$10.1 million for the six months ended 30 June 2020, representing an increase of approximately 2.7% from US$9.9 million for the same period in 2019[13]. - Net profit attributed to equity shareholders of the Company amounted to approximately US$2.9 million for the six months ended 30 June 2020, representing a decrease of 62.0% from US$7.5 million for the same period in 2019[13]. - Earnings per share for the six months ended 30 June 2020 was US$0.10 cent, representing a decrease of 64.3% compared with US$0.28 cent for the same period in 2019[13]. - The Board has resolved not to declare an interim dividend for the six months ended 30 June 2020[13]. - Total comprehensive loss for the period amounted to approximately US$521,000, compared to a total comprehensive income of US$7.3 million for the same period in 2019[17]. - The Group's profit before taxation for the six months ended 30 June 2020 was US$3.2 million, down from US$7.7 million for the same period in 2019[15]. - The consolidated profit before taxation for the six months ended June 30, 2020, was $3,185,000, down from $7,687,000 in 2019, a decrease of approximately 58.7%[51]. - The profit from operations increased significantly by 250.6% to US$3.7 million compared to US$1.0 million in the previous year[118]. Revenue Breakdown - Revenue from oilfield expendables and supplies increased to $20,966 thousand in 2020 from $15,054 thousand in 2019, representing a growth of approximately 39.5%[33]. - Sales of capital equipment decreased to $6,826 thousand in 2020 from $13,510 thousand in 2019, reflecting a decline of approximately 49.6%[33]. - Reportable segment revenue for the period ended June 30, 2020, was $31,171,000, a decrease from $32,386,000 in the same period of 2019, representing a decline of approximately 3.8%[42]. - Revenue from external customers for the six months ended June 30, 2020, was US$31,171,000, a decrease of 3.7% from US$32,386,000 for the same period in 2019[60]. - Revenue from capital equipment and packages decreased by 49.5% from US$13.5 million in the first half of 2019 to US$6.8 million in the first half of 2020 due to the impact of COVID-19[124]. - Engineering services revenue decreased from US$3.8 million in the first half of 2019 to US$3.4 million in the first half of 2020, mainly due to a drop in demand[128]. Assets and Liabilities - As of June 30, 2020, total assets amounted to $285,804,000, an increase from $258,591,000 as of December 31, 2019, representing a growth of approximately 10.5%[19]. - Current liabilities increased to $253,085,000 from $228,789,000, reflecting a rise of about 10.6%[19]. - Net current assets improved to $32,719,000, up from $29,802,000, indicating an increase of approximately 6.4%[19]. - Non-current liabilities decreased to $5,826,000 from $6,975,000, showing a reduction of about 16.5%[21]. - Total equity attributable to equity shareholders decreased slightly to $119,803,000 from $121,056,000, a decline of approximately 1.0%[21]. - Cash and cash equivalents decreased to $30,178,000 from $35,021,000, a decline of about 13.8%[19]. - The company's total liabilities rose to US$258,911,000 as of June 30, 2020, compared to US$235,764,000 at the end of 2019, indicating an increase of about 9.8%[55]. Cash Flow - For the six months ended June 30, 2020, the net cash used in operating activities was $(4,016) thousand, compared to $(13,921) thousand in 2019, indicating a significant improvement[26]. - The net cash generated from investing activities was $4,521 thousand in 2020, a recovery from $(36,552) thousand in 2019[26]. - The company reported a net cash used in financing activities of $(5,355) thousand for the six months ended June 30, 2020, compared to a net cash generated of $81,975 thousand in 2019[26]. Market and Industry Trends - The average oil demand for 2020 is projected to be 8,700 to 8,800 thousand barrels per day, a decrease of 10.9% from 2019, with expectations of recovery to 9,300 to 9,700 thousand barrels per day in 2021[96]. - Major oil companies have cut capital expenditures by approximately $62.5 billion, about 27% lower than budgeted, due to the COVID-19 pandemic[96]. - The overall capital expenditure of the drilling industry is expected to decrease by 25% in 2020 compared to 2019[96]. - The offshore drilling market is cyclical, with a typical cycle of approximately 5 to 6 years, and was showing signs of recovery before the pandemic[96]. - The average wet lease daily rate for global offshore jack-up rigs decreased by 10% to US$86,000 per day from the end of 2019, with standard rigs at US$56,000 and high-spec rigs at US$106,000 per day[98]. Strategic Initiatives - The company is focusing on clean energy and technology investments to enhance overall performance and maximize shareholder value[93]. - The company aims to strengthen its marketisation operation in the offshore asset management business amid market challenges[167]. - The company plans to improve capital operation efficiency through financial leasing and other strategies[167]. - Future investments will target high-tech technology and intelligent manufacturing that align with the company's existing high-end equipment manufacturing[178]. - The company will explore investment and acquisition opportunities in clean energy sectors, including offshore wind power and LNG, as well as in artificial intelligence and big data[180]. Shareholder and Management Information - The company did not declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year[9]. - The management team has undergone changes, with new appointments effective from February 19, 2020, including a new chairman and CEO[183]. - The trustee purchased 23,400,000 shares under Share Award Plan 2, representing 0.8% of the issued share capital, for a total consideration of approximately HK$5,534,187 during the six months ended 30 June 2020[196].

Offshore Engineering and Asset Management - The company reported significant growth in offshore engineering platform assets, aiming to enhance operational efficiency and brand influence through strategic acquisitions and partnerships with leading global operators[19]. - The company plans to expand its offshore asset operation and management business, targeting full development in 2020, leveraging various capital forms including public listings and financing leases[20]. - The company has established a joint venture with China Merchants & Great Wall Ocean Strategy & Technology Fund, facilitating the sale of two jack-up rigs and share subscriptions in Shelf Drilling, enhancing asset value and operational efficiency[10]. - The company aims to strengthen its offshore engineering industrial value chain by acquiring high-quality assets and improving utilization effectiveness through collaboration with top-tier operators[19]. - The company is positioned to capitalize on cyclical opportunities in the offshore engineering sector, enhancing its strategic layout from manufacturing to asset management[10]. - The company successfully integrated six jack-up rigs and became the largest shareholder of SHELF with a 19.4% stake[63]. - The company plans to focus on the integration of offshore assets and explore opportunities in clean energy markets such as LNG and offshore wind power[68]. - The company aims to enhance value integration of the offshore industry chain through deep distribution in global oil and gas hotspots[34]. - The company aims to create a world-class global marine energy technology industry chain value integration operator[111]. - The Group will continue to strengthen market-oriented operations and integrate low-cost, high-quality offshore assets to expand asset management size[114]. Financial Performance - Revenue for 2019 was US$70,246,000, an increase of 19.5% compared to US$58,839,000 in 2018[45]. - Gross profit for 2019 reached US$24,036,000, significantly up from US$10,047,000 in 2018, marking a gross margin improvement[45]. - Profit before taxation for 2019 was US$10,297,000, a turnaround from a loss of US$31,405,000 in 2018[45]. - The company reported a profit attributable to equity shareholders of US$9,701,000 for 2019, compared to a loss of US$41,358,000 in the previous year[45]. - Non-current assets increased to US$97,587,000 in 2019 from US$52,774,000 in 2018, reflecting strategic investments[45]. - Current assets rose to US$258,591,000 in 2019, up from US$228,008,000 in 2018, indicating improved liquidity[45]. - The net profit reached US$9.3 million, marking a year-on-year increase of 122.3%[61]. - Total assets amounted to US$356.2 million, which is a 26.9% increase compared to the previous year[61]. - The company's total liabilities decreased by 6.6% year-on-year to US$235.8 million[61]. - Net assets surged by 324.0% year-on-year to US$120.4 million[61]. Market Trends and Opportunities - The global energy consumption is projected to increase by nearly 50% by 2050, with significant growth expected in non-OECD countries[80]. - Industrial energy consumption is expected to rise by over 30% globally, reaching approximately 315 quadrillion British thermal units by 2050[81]. - Natural gas consumption is anticipated to increase by over 40% globally, with total consumption reaching nearly 200 quadrillion Btu by 2050[81]. - The offshore engineering market is expected to recover fully in the medium to long term due to rising global energy consumption[111]. - Short-term demand is expected to rise in markets such as India, the Middle East, and Mexico, promoting new market opportunities[112]. - The offshore rig market is currently oversupplied, but demand for drilling equipment maintenance services is expected to gradually increase as utilization rates improve[114]. Strategic Initiatives and Partnerships - The company has a strategic focus on the development of clean energy and technology-related industries, actively pursuing investment and consolidation opportunities[18]. - The company partnered with Zentech and CSSC to construct high-spec R-550D jack-up drilling rigs and began developing investment and operations management for offshore engineering platforms[26]. - The company established a manufacturing base in Qingdao in the same year[26]. - The company conducted a rights issue to introduce new shareholders and raised capital for further investments[26]. - The company is committed to improving its asset structure and expanding its asset management scale while exploring strategic partnerships for long-term development[75]. - The Group plans to increase investment in sales and market development, particularly in high-end markets such as North America and the Middle East[114]. Operational Efficiency and Innovation - The company aims to enhance its core competitiveness through high-end equipment manufacturing, asset management, engineering operations, and supply chain services[76]. - The Group aims to leverage technological breakthroughs in AI, big data, and robotics to promote innovation in the marine energy field[119]. - The company will implement measures to improve quality and efficiency while controlling costs and expenses in 2020[190]. - The management team successfully turned losses into profits, demonstrating effective leadership and strategic execution in a challenging market environment[130]. Corporate Governance and Leadership Changes - The chairman and CEO positions were changed on February 19, 2020, with Mr. Lou Dongyang and Mr. Cong Yongjian appointed respectively[198]. - Mr. Wang Hongyuan resigned as an executive Director of the Company effective from 19 February 2020[199]. - Mr. Cong Yongjian was appointed as an executive Director of the Board of the Company effective from 19 February 2020[200].

Financial Performance - The group's revenue for the six months ended June 30, 2019, was approximately $32.4 million, an increase of about 9.6% compared to $29.6 million in the same period of 2018[4]. - Gross profit for the same period was approximately $9.9 million, representing a significant increase of about 51.3% from $6.5 million in 2018[4]. - The net profit attributable to equity shareholders for the six months ended June 30, 2019, was approximately $7.5 million, compared to a net loss of $6.8 million in the same period of 2018[4]. - Earnings per share for the six months ended June 30, 2019, was 0.28 cents, while the loss per share for the same period in 2018 was 0.53 cents[4]. - The group reported total comprehensive income of $7.3 million for the six months ended June 30, 2019, compared to a total comprehensive loss of $7.5 million in 2018[8]. - The company reported a comprehensive income of $7,734 thousand for the six months ended June 30, 2019, compared to $7,317 thousand in 2018, reflecting a growth of 5.7%[19]. - The company recorded a pre-tax profit of $7,687 thousand for the six months ended June 30, 2019, compared to a loss of $(6,989) thousand in the same period of 2018[55]. - Basic earnings per share for the six months ended June 30, 2019, was approximately $7,545,000, compared to a loss of $6,849,000 in the same period of 2018[69]. Assets and Liabilities - Non-current assets as of June 30, 2019, amounted to $103.0 million, compared to $52.8 million as of December 31, 2018[10]. - Current assets increased to $262.4 million as of June 30, 2019, from $225.1 million as of December 31, 2018[10]. - The group’s cash and cash equivalents increased to $51.1 million as of June 30, 2019, compared to $19.8 million as of December 31, 2018[10]. - Non-current liabilities decreased from $7,201 thousand to $9,325 thousand, a reduction of approximately 21.5%[12]. - Total equity rose from $28,398 thousand to $119,065 thousand, marking an increase of 319.5%[12]. - Total liabilities as of June 30, 2019, were $(249,309) thousand, a decrease from $(252,384) thousand at the end of 2018[57]. - The debt ratio was 67.7% as of June 30, 2019, down from 89.9% at the end of 2018[125]. Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2019, was $(14,088) thousand, compared to $(11,229) thousand for the same period in 2018, indicating a decline of 25.4%[19]. - New share issuance raised $83,350 thousand, up from $65,326 thousand in the previous year, an increase of 27.6%[19]. - The company incurred a cash outflow of $(37,000) thousand for the acquisition of joint venture shares[19]. - The company completed a rights issue on January 31, 2019, raising approximately HKD 660 million to support new business initiatives and strategic transformation[105]. Market and Operational Developments - The company aims to become a world-class operator in the marine energy technology industry chain[3]. - The company has signed contracts for four self-elevating drilling platforms and purchased shares in Shelf Drilling, enhancing operational efficiency and asset value through strategic partnerships[89]. - The company entered the Mexican offshore drilling market by winning a contract with PEMEX to provide 2-3 self-elevating drilling platforms, enhancing its international market presence[106]. - The company is actively seeking investment opportunities in clean energy and smart technology sectors to enhance overall performance and maximize shareholder value[90]. - The company is focused on enhancing its operational capabilities through strategic investments and partnerships, positioning itself for future growth in the offshore energy sector[90]. Accounting Standards and Compliance - The company adopted the revised retrospective method for the initial application of HKFRS 16, which did not restate comparative figures[12]. - The company has adopted the new Hong Kong Financial Reporting Standard (HKFRS) 16, which introduces a single accounting model for lessees, requiring the recognition of right-of-use assets and lease liabilities for all leases, except for short-term leases and low-value asset leases[25]. - The adoption of HKFRS 16 did not have a significant impact on the consolidated financial statements, as the company previously applied HKAS 40 for investment properties[32]. - The audit committee reviewed the unaudited financial performance for the six months ended June 30, 2019, and found that the accounting treatment was in compliance with applicable accounting standards[163]. Shareholder Information - The company did not recommend an interim dividend for the six months ended June 30, 2019[4]. - Major shareholders include China Merchants Group with 1,530,372,000 shares, representing 51.94% of the issued share capital[149]. - The total issued share capital as of June 30, 2019, is 2,946,312,408 shares[154]. - The company has a stock option plan approved for a maximum of 56,254,040 options[158]. Future Outlook - The company provided a future outlook with a revenue guidance of $320 million for the full year 2019, indicating a projected growth of 25%[174]. - New product development includes the launch of a next-generation energy solution expected to contribute an additional $30 million in revenue by Q4 2019[174]. - The company plans to increase its marketing budget by 30% to support new product launches and market expansion efforts[174].

Financial Performance - In 2018, the company reported revenue of $58.839 million, a decrease of 23.2% from $76.552 million in 2017[42]. - The gross profit for 2018 was $10.047 million, showing an increase from $9.221 million in 2017[42]. - The company incurred a loss before tax of $31.405 million in 2018, an improvement from a loss of $84.406 million in 2017[42]. - The net loss attributable to shareholders for 2018 was $41.36 million, a significant reduction of 50% from the $82.79 million loss in 2017[52]. - Revenue decreased from $76.6 million in 2017 to $58.8 million in 2018, a decline of $17.7 million or 23.1%[118]. - Gross profit increased by 9.0% from $9.2 million in 2017 to $10.0 million in 2018, with a gross margin improvement from 12.0% to 17.1%[127]. Strategic Partnerships and Acquisitions - The joint venture WME acquired two high-specification CJ46 self-elevating drilling platforms with contracts to provide offshore drilling services for Abu Dhabi National Oil Company[13]. - The company signed agreements with Shelf Drilling for the sale and lease of two CJ46 self-elevating platforms, enhancing its strategic partnership and operational capabilities in the offshore engineering sector[13]. - A partnership was formed with Shelf Drilling to lease and sell 2+2 CJ46 self-elevating drilling platforms[40]. - The company successfully acquired two high-specification CJ46 jack-up drilling rigs with stable leases, contributing to its strategic transformation into marine asset management[49]. - The company aims to strengthen cooperation with Shelf Drilling to enhance business synergy and accelerate the sale and leasing of CJ46 platform assets[101]. Business Transformation and Strategy - The company is committed to transforming its core business from manufacturing to the management of offshore engineering platform assets, leveraging its extensive experience and global network[13]. - The company aims to enhance resource reserves across multiple segments of the offshore industry chain, focusing on acquiring quality platform assets and collaborating with top global operators[14]. - The company’s strategic development framework includes five core areas: offshore engineering, energy development, technology entrepreneurship, capital management, and global operations[13]. - The strategic transformation included a focus on offshore equipment manufacturing and asset management in the marine energy sector[48]. - The company plans to continue its transformation in 2019, aiming to achieve a turnaround from losses to profitability[50]. Market Trends and Outlook - According to BP's 2019 Energy Outlook, oil and gas will continue to dominate global energy demand, accounting for over 53% by 2040[58]. - Global upstream oil and gas capital expenditure rose from $357 billion in 2017 to $384 billion in 2018, marking an 8% increase, with a projected further increase to $414.5 billion in 2019[60]. - The demand for jack-up rigs is expected to grow at an annual rate of 6.5%, with 2018 demand at 336 units and a forecast of 361 units for 2019, reflecting a 7% increase[63]. - The overall market for offshore platforms is gradually recovering, with a supply-demand gap of 108 units expected in 2019[63]. - The International Energy Agency (IEA) forecasts a tightening of global oil supply in 2019, maintaining a demand growth estimate of 1.4 million barrels per day[13]. Capital Management and Funding - The company successfully raised approximately HKD 657 million through a 1:1 rights issue approved by shareholders on December 28, 2018, providing strong financial support for new business layouts and strategic transformation[14]. - A rights issue was successfully implemented at a price of HKD 0.45 per share, representing a 12% premium over the trading price on the first day of the rights issue[55]. - About HKD 353.55 million (70% of the raised funds) is planned for expanding existing business and potential acquisitions[157]. - The company plans to use the net proceeds from the rights issue for equity distribution in a joint venture, debt repayment, and general working capital[183]. Operational Developments - The company established a strategic headquarters in Hong Kong in July 2018[20]. - The establishment of a manufacturing base in Qingdao is part of the company's market expansion strategy[20]. - The company is actively seeking investment and integration opportunities in clean energy and smart technology sectors to enhance overall performance and maximize shareholder value[11]. - The company is focusing on extending the oil and gas industry chain, particularly in "clean energy" and "manufacturing technology," to seek potential investment opportunities and sustainable business development[107]. Employee and Management Changes - The company appointed Mr. Yang Guohui as Executive Director and Chief Operating Officer effective February 9, 2018, while Mr. Wang Yong resigned as Executive Director and CEO on the same date, being reappointed as President[159]. - The company appointed Mr. Wang Hongyuan as the Executive Chairman and CEO since February 9, 2018, bringing extensive experience in strategic planning and capital operations in maritime and logistics sectors[199]. - Mr. Zhang Menggui has been a co-founder and Executive Director since June 22, 2017, with 35 years of experience in the oil and gas industry, including roles in major companies[200].