Financial Performance - For the fiscal year ending December 31, 2024, the total revenue reached RMB 1,356,346,670.03, an increase of approximately 2.95% compared to RMB 1,317,495,782.20 in the previous year[6]. - The loss attributable to equity owners was RMB 43,699,833.39, a significant reduction of about 92.29% from the loss of RMB 566,861,510.82 in the same period last year[6]. - The earnings per share (EPS) improved to approximately RMB 0.05, compared to a loss per share of RMB 0.71 in the previous year, reflecting an increase of about 92.96%[6]. - The total net profit for the year was RMB (44,636,618.16), a significant improvement from RMB (578,534,451.16) in the previous year[8]. - The total operating loss for 2024 was approximately $48.28 million, compared to a loss of $549.18 million in 2023, indicating a significant improvement in financial performance[25]. - The company reported a total comprehensive income of RMB (578,837,140.19) for the current period, a significant decrease compared to the previous period[3]. - The total loss attributable to equity owners for 2024 was RMB 43,699,833.39, with a basic and diluted loss per share of RMB 0.05[44]. - The company reported a net profit attributable to shareholders of RMB -43,699,833.39 for the fiscal year ending December 31, 2024[70]. Revenue and Sales - The total operating revenue for 2024 is reported at RMB 1,356,346,670.03, an increase from RMB 1,317,495,782.20 in 2023, reflecting a growth of approximately 2.9%[21]. - The revenue from pipe products reached RMB 1,230,613,168.65 in 2024, up from RMB 1,141,475,324.31 in 2023, indicating a growth of about 7.8%[21]. - The company's main products, including oil pipes and casings, accounted for nearly 90.73% of total revenue, with export sales increasing by over 25% year-on-year[45]. - The total revenue from the pipe products segment was approximately $1.23 billion, while the three-pump equipment segment generated about $34.15 million in revenue[24]. - The company reported a decrease in the revenue from oil machinery components, which fell to RMB 1,867,935.18 in 2024 from RMB 18,345,313.86 in 2023, indicating a decline of approximately 89.8%[21]. Costs and Expenses - The total operating costs decreased to RMB 1,572,301,308.13 from RMB 1,627,990,434.22, indicating a reduction in costs[7]. - The company reported a decrease in research and development expenses to RMB 29,309,446.94 from RMB 35,480,208.21, reflecting a focus on cost management[7]. - The company experienced a reduction in management expenses from RMB 228,139,393.15 to RMB 118,952,881.37, indicating improved operational efficiency[7]. - Financial expenses decreased to approximately $96.61 million in 2024 from $114.13 million in 2023, showing effective cost management[27]. - Employee costs decreased to RMB 130,228,148.44 in 2024 from RMB 193,620,108.47 in 2023, a reduction of approximately 32.7%[32]. - Research and development costs were RMB 27,102,934.69 in 2024, down from RMB 30,578,559.41 in 2023, indicating a decrease of about 11.9%[32]. Assets and Liabilities - The total assets as of December 31, 2024, amounted to RMB 1,935,407,894.38, compared to RMB 923,407,920.06 in the previous year, indicating substantial growth in total assets[9]. - Total assets amounted to approximately $2.42 billion, with non-current assets totaling around $484.77 million[10]. - Current liabilities reached approximately $1.92 billion, with short-term borrowings at about $1.43 billion[10]. - Total liabilities were approximately $1.93 billion, while non-current liabilities accounted for about $11.38 million[11]. - Owner's equity totaled approximately $491.89 million, with retained earnings showing a deficit of around $1.47 billion[11]. - The company reported a capital reserve of approximately $979.78 million, reflecting an increase from the previous period[11]. - The total liabilities and owner's equity combined reached approximately $2.42 billion, consistent with total assets[11]. - The company's total current liabilities increased by approximately 26.4% compared to the previous period[10]. - The company's total non-current liabilities decreased by approximately 91.2% compared to the previous period[11]. - The group's total assets at the end of the reporting period were RMB 2.42 billion, a year-on-year decrease of 16.20%[48]. - The net assets attributable to shareholders of the listed company were RMB 492 million, a year-on-year increase of 16.10%[48]. Strategic Initiatives and Future Plans - The company plans to expand its market presence and enhance product offerings in the energy equipment sector, focusing on innovation and technology development[17]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings call[24]. - The company is actively seeking new financing to alleviate cash flow pressure, including bank loans and financing leases[54]. - The company has expanded its overseas strategy, currently operating in over 50 countries and regions, including Kazakhstan and Vietnam[55]. - The company aims to enhance market research and optimize product structure to improve competitiveness in response to market demand changes[52]. - The company plans to maintain a stable development strategy in the oil and gas industry, with expectations for oil production to remain above 200 million tons by 2025[49]. Risk Management and Compliance - The company emphasizes risk management and internal control to reduce operational risks and enhance resilience[56]. - The company is closely monitoring raw material price fluctuations to control manufacturing costs and adjust product prices accordingly[59]. - The company is committed to enhancing environmental protection investments due to stricter national safety and environmental policies[60]. - The company has adopted measures to mitigate risks associated with currency fluctuations, particularly with the RMB[61]. - The company has maintained compliance with corporate governance standards and continues to implement measures to adhere to changes in regulations[71]. Dividends and Shareholder Information - The company did not recommend the distribution of a final dividend for the fiscal year ending December 31, 2024[6]. - The board of directors does not recommend the distribution of a final dividend for the fiscal year ending December 31, 2024[69]. - The annual report for the year ending December 31, 2024, will be sent to shareholders and is available for download on the company's website and the Hong Kong Stock Exchange[79].

Financial Performance - The company's operating revenue for the third quarter reached ¥400,483,972.01, representing a 96.60% increase compared to the same period last year[3] - The net profit attributable to shareholders was a loss of ¥104,738,904.56, a decrease of 18.13% year-on-year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥105,526,854.62, down 18.85% compared to the previous year[3] - The company reported a basic earnings per share of (¥0.1312), a decrease of 17.99% year-on-year[3] - The diluted earnings per share also stood at (¥0.1312), reflecting the same percentage decrease[3] - The weighted average return on net assets was -19.10%, a decline of 7.95% compared to the previous year[3] - The company reported a total operating profit of approximately 60.19 million, a significant improvement from a loss of 254.23 million in the previous period[22] - Net profit for the current period reached approximately 64.61 million, compared to a net loss of 254.68 million in the prior period[22] - The basic and diluted earnings per share for the current period were both 0.0820, recovering from a loss of 0.3095 in the previous period[23] - Total comprehensive income attributable to the parent company was approximately 65.57 million, compared to a loss of 247.28 million in the previous period[23] Cash Flow - The net cash flow from operating activities increased by 156.07% to ¥52,228,518.39 year-to-date[3] - Cash flow from operating activities increased by 156.07% to ¥52,228,518.39, driven by higher cash receipts from sales[10] - The net increase in cash and cash equivalents was (¥73,676,883.08), an improvement from (¥270,392,594.47) in the previous period, reflecting combined cash flow impacts[10] - The company received approximately 31.45 million in tax refunds, a notable increase from 0.47 million in the previous period[25] - Operating cash inflows totaled approximately 1.11 billion, up from 1.07 billion in the previous period[25] - The company incurred cash outflows of approximately 1.05 billion from operating activities, slightly higher than 1.04 billion in the previous period[25] - The net cash flow from investment activities was 139,311,867.35, a significant improvement from the previous period's negative cash flow of (4,413,963.35)[26] - Cash inflow from financing activities amounted to 2,772,744,400.69, compared to 3,256,156,598.33 in the prior period, indicating a decrease of approximately 14.7%[26] - The net cash flow from financing activities was (258,985,580.89), slightly better than the previous period's (292,004,557.16)[26] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,764,646,911.14, a decrease of 4.27% from the previous year[3] - The equity attributable to shareholders increased by 15.63% to ¥490,295,354.48 compared to the end of the previous year[3] - Total current assets amount to 1,322,322,991.01 RMB, an increase from 923,407,920.06 RMB at the beginning of the period[15] - Total liabilities decreased from 2,553,379,468.25 to 2,274,627,128.70, a reduction of about 10.9%[19] - Long-term liabilities decreased from 130,258,420.38 to 25,275,429.47, a significant reduction of approximately 80.6%[19] - The equity attributable to the parent company increased from 424,013,364.43 to 490,295,354.48, an increase of about 15.6%[19] Receivables and Inventory - Accounts receivable decreased by 84.45% to ¥12,128,908.42 due to a reduction in outstanding commercial acceptance bills[6] - Other receivables increased significantly by 8,276.66% to ¥391,617,428.91 primarily from passive financial assistance after the sale of subsidiary equity[6] - Accounts receivable decreased slightly to 252,754,455.53 RMB from 253,264,672.00 RMB[15] - Inventory increased to 547,454,366.08 RMB from 454,882,307.24 RMB[15] Shareholder Information - Total number of ordinary shareholders at the end of the reporting period is 27,553, including 27,509 H-share holders[11] - The largest shareholder, Shouguang Molong Holdings Co., Ltd., holds 29.53% of shares, equating to 235,617,000 shares[11] - The top ten shareholders include both domestic and foreign entities, with significant stakes held by Shouguang Molong Holdings and Hong Kong Central Clearing Limited[12] - No significant changes in the shareholding structure due to margin trading activities were reported[13] Other Financial Metrics - Non-recurring gains and losses for the reporting period totaled ¥787,950.06, significantly lower than the previous year's total of ¥285,853,814.28[4] - Management expenses decreased by 51.88% to ¥94,814,055.40 due to cost control measures and reduced expenses after subsidiary equity transfers[8] - The company reported a substantial increase in other income by 132,723.59% to ¥7,031,782.73, influenced by VAT rebate policies[8] - The company recognized an asset impairment loss of (¥72,074,572.87), a significant increase of 2,531.55% compared to the previous year[8] - The company’s investment income reached ¥282,091,477.58, resulting from the sale of related subsidiary equity[8] - The company’s tax expenses showed a significant change, with a decrease of 117.82% to (¥339,579.86) due to unrecognized deferred tax expenses[8]

Financial Performance - Operating revenue for the first half of 2024 was CNY 604,627,930.88, a decrease of 24.27% compared to CNY 798,419,015.10 in the same period last year[11]. - Net profit attributable to shareholders was CNY 170,134,914.07, a significant increase of 207.52% from a loss of CNY 158,242,397.13 in the previous year[11]. - The net cash flow from operating activities reached CNY 121,341,347.40, improving by 610.47% compared to a negative cash flow of CNY 23,770,597.65 last year[11]. - Basic earnings per share were CNY 0.2132, a turnaround from a loss of CNY 0.1983 per share in the same period last year, reflecting a 207.51% increase[11]. - Total assets at the end of the reporting period were CNY 2,785,815,580.65, down 3.54% from CNY 2,888,081,988.80 at the end of the previous year[11]. - Net assets attributable to shareholders increased by 40.27% to CNY 594,758,642.76 from CNY 424,013,364.43 at the end of the previous year[11]. - The weighted average return on net assets improved to 33.42%, an increase of 50.84 percentage points from -17.42% in the previous year[11]. - The company achieved a net profit attributable to shareholders of approximately RMB 170 million, influenced by the sale of 70% equity in Shouguang Baolong and 98.0769% equity in Weihai Baolong, generating an investment income of about RMB 281 million[17]. - The company's operating revenue was approximately RMB 605 million, a year-on-year decrease of 24.27%, primarily due to a focus on cost control and efficiency improvements[17]. Assets and Liabilities - Total assets at the end of the reporting period were approximately RMB 2.786 billion, a decrease of 3.54% compared to the beginning of the year, while net assets attributable to shareholders increased by 40.27% to approximately RMB 595 million[17]. - Total liabilities decreased to RMB 2,191,364,000 as of June 30, 2024, from RMB 2,974,997,000 as of June 30, 2023, a reduction of 26.4%[98]. - The asset-liability ratio is approximately 78.66%, down from 88.41% in 2023, with total liabilities of RMB 2.191 billion and total assets of RMB 2.786 billion[126]. - Cash and cash equivalents at the end of the period were CNY 90,475,362.73, accounting for 3.25% of total assets, down from 3.43% last year[34]. - Fixed assets decreased to CNY 1,279,176,385.26, accounting for 45.92% of total assets, down from 54.62% last year, reflecting an 8.70% decrease due to the sale of subsidiary equity[34]. Market and Operational Strategy - The company operates under a "sales-driven production" model, ensuring orderly production and delivery based on market demand and customer orders[17]. - The company has developed a series of new products, including pipeline products that meet customer standards, and has optimized production processes to improve efficiency and reduce costs[22]. - The company has a mature sales network and specialized teams for domestic and international market research, development, and after-sales service[17]. - The company expanded its overseas market presence by developing 2 new market regions and acquiring 10 new customers in the first half of 2024[24]. - The domestic market revenue decreased by 41.43% to ¥372,373,974.21, while overseas market revenue increased by 42.79% to ¥232,253,956.67[28]. Research and Development - Research and development investment decreased by 22.60% to ¥14,106,548.95, attributed to reduced spending on new product development[27]. - The company holds 187 patents, including 19 invention patents, and has established a technology innovation system that integrates industry, academia, and research[21]. - The company is prioritizing research and development to innovate and improve existing product lines[185]. Environmental and Compliance - The company strictly adheres to environmental protection policies and industry standards, including Shandong Province's air pollutant emission standards[60]. - The company has established comprehensive wastewater treatment facilities across all production sites, ensuring all treated wastewater is recycled and not discharged[64]. - The company has implemented various air pollution control measures, including denitrification and dust removal equipment, to ensure compliance with emission standards[64]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[68]. Corporate Governance - The company has a robust internal control management system to protect shareholder rights and ensure transparent decision-making processes[69]. - The company has established an audit committee to review and supervise financial reporting procedures, risk management, and internal controls[139]. - The company has continuously improved its governance practices in accordance with relevant laws and regulations, with no deviations from the Corporate Governance Code[118]. Future Outlook - The company plans to expand its market presence and invest in new product development to drive future growth[185]. - Future guidance indicates a cautious outlook, with expected revenue growth in the range of 5-7% for the next quarter[185]. - The management expressed confidence in achieving the performance guidance set for the upcoming quarters, despite the current economic challenges faced[190].

Financial Performance - For the six months ending June 30, 2024, the group's revenue reached RMB 604.63 million, a decrease of approximately 24.27% compared to the same period last year[2] - The net profit attributable to shareholders was RMB 170.13 million, compared to a net loss of RMB 158.24 million in the same period last year[2] - Earnings per share were approximately RMB 0.2132, compared to a loss per share of RMB 0.1983 in the same period last year[2] - The total operating revenue was RMB 604,627,930.88, compared to RMB 798,419,015.10 for the same period in 2023, indicating a significant decrease[11] - The operating profit for the same period was approximately $6.56 million, compared to $132.72 million in the previous year, indicating a significant decline[15] - The total comprehensive income for the period was RMB 794,276.38, reflecting the company's financial performance[2] - Total profit for the six months ended June 30, 2024, was 170,134,914.07, compared to a loss of 158,242,397.13 in the same period of 2023[25] Operating Costs and Expenses - The total operating costs for the six months were RMB 717.97 million, down from RMB 798.42 million in the previous year[4] - Research and development expenses amounted to RMB 12.09 million, significantly reduced from RMB 135.86 million in the same period last year[4] - Financial expenses totaled approximately $41.32 million, a decrease from $43.62 million in the same period of 2023[17] - The company reported a credit impairment loss of (741,269.32) for the first half of 2024, a significant decrease from (2,115,579.66) in the same period of 2023[18] - The company recognized an asset impairment loss of (8,955,173.29) for the first half of 2024, compared to (1,465,146.60) in the same period of 2023[19] - The company incurred a current income tax expense of 62,936.72 for the first half of 2024, with a total tax expense of (394,994.52) after considering deferred tax[24] Assets and Liabilities - The total assets as of June 30, 2024, were RMB 2.79 billion, an increase from RMB 1.96 billion as of December 31, 2023[5] - Current assets totaled RMB 1.24 billion, compared to RMB 858.92 million in the previous year[5] - As of June 30, 2024, the company reported current liabilities totaling approximately 2.16 billion, a significant increase from 52.8 million in the previous year[6] - Total liabilities amounted to approximately 2.19 billion, compared to 130.26 million in the previous year, indicating a substantial rise[6] - The company’s total assets minus current liabilities stood at approximately 626.58 million, a notable improvement from a negative 1.50 billion in the previous year[6] - The company’s retained earnings showed a negative balance of 1.26 billion, indicating ongoing financial challenges[6] Revenue Breakdown - Revenue from machinery products was RMB 542,742,258.39, while the revenue from casting and forging products was RMB 5,724,946.04, showing a decline from RMB 716,389,280.84 in the previous year[11] - Revenue from domestic transactions was approximately $372.37 million, while revenue from other countries was approximately $232.25 million for the six months ended June 30, 2024[16] - The company reported a significant decrease in external transaction revenue from other countries, down from $635.77 million in the previous year[16] - The company's main products, particularly pipe products, accounted for nearly 90% of total operating revenue, with a significant increase in export sales[33] Corporate Governance and Compliance - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance and relevant regulations, with no changes in accounting policies during the reporting period[10] - The company has adhered to all corporate governance codes as per the listing rules during the reporting period[40] - The company reported a net decrease in capital of RMB 77,607,634.64 during the reporting period[2] - The company has not adopted foreign currency hedging policies but does not foresee any significant currency risks in the near future[39] Future Outlook and Strategy - The company aims to expand its market presence and enhance its product offerings in the energy equipment sector[9] - The company plans to continue investing in research and development to innovate and improve its product lines in the energy sector[9] - The outlook for the energy equipment industry remains positive, driven by high international oil prices and increased investment in oil and gas exploration and development[35] - The National Energy Administration plans to enhance oil and gas exploration and development efforts, which is expected to boost demand for oil service equipment[36] - The group has no major investments or capital asset purchases planned for the future as of June 30, 2024[38] Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ending June 30, 2024[2] - The board of directors proposed no interim dividend for the six months ending June 30, 2024, consistent with the previous year[44] - The interim report for the six months ending June 30, 2024, will be made available to shareholders and on the company's website at a later date[44]

Financial Performance - Operating revenue for Q1 2024 was CNY 193,609,052.43, a decrease of 52.55% compared to CNY 408,037,331.85 in Q1 2023[12] - Operating costs decreased by 51.09% to CNY 187,933,014.42 from CNY 384,212,165.48 year-on-year[12] - R&D expenses decreased by 42.01% to CNY 2,633,923.36, attributed to reduced investment in new product development[12] - The company reported a significant increase in non-operating income, reaching CNY 2,710,092.85, a 295.97% increase year-on-year[13] - Net profit attributable to shareholders for the current period is ¥216,912,792.77, a significant increase of 349.05% from a loss of ¥87,097,310.59 in the previous year[41] - Operating profit for the current period is ¥213,767,499.26, compared to a loss of ¥88,076,596.24 in the previous period[56] - Net profit for the current period is ¥216,128,932.23, a significant recovery from a loss of ¥89,259,022.14 in the previous period[56] - The total comprehensive income attributable to the parent company's owners is ¥216,884,397.83, recovering from a loss of ¥86,882,950.39 in the previous period[64] Asset and Liability Management - Non-current asset disposal profit amounted to CNY 281,593,361.45, primarily from the sale of subsidiary equity[8] - Total liabilities increased by 54.02% to CNY 84,299,028.72, primarily due to an increase in advance payments[11] - Non-current liabilities decreased from CNY 130,258,420.38 at the beginning of the year to CNY 41,125,512.44 at the end of the period, a reduction of approximately 68.4%[20] - Total liabilities decreased from CNY 2,553,379,468.25 at the beginning of the year to CNY 2,346,490,000.35, a reduction of approximately 8.1%[20] - Current liabilities total ¥2,305,364,487.91, down from ¥2,423,121,047.87 in the previous year[36] Cash Flow Analysis - Cash flow from operating activities showed a significant decline of 107.62%, dropping to CNY (2,664,458.90) compared to CNY 34,975,015.23 in the same period last year[26] - Cash flow from investing activities increased dramatically by 3596.19%, reaching CNY 141,716,637.04, primarily due to proceeds from the sale of subsidiary equity[26] - The company reported a net cash flow from operating activities of -¥2,664,458.90, a decline of 107.62% compared to ¥34,975,015.23 in the previous year[41] - Cash flow from investment activities shows a net inflow of ¥141,716,637.04, compared to a net outflow of ¥4,053,463.91 in the previous period[105] - The net cash flow from financing activities was negative at approximately ¥114.67 million, an improvement from the previous period's negative ¥165.82 million[114] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 35,472, with H-share holders numbering 42[28] - Shareholders' equity attributable to the parent company increased by 51.42% to ¥642,034,543.92 from ¥424,013,364.43 at the end of the previous year[41] Investment and Other Income - Investment income for the period was CNY 282,197,481.17, primarily from subsidiary equity transfer gains[13] - Other income for the current period is ¥33,789.37, while investment income is ¥282,197,481.17, indicating strong performance in these areas[56] Future Outlook - The company plans to focus on market expansion and new technology development in the upcoming quarters[12]

Financial Performance Announcement - The company clarified the dates mentioned in the 2023 Annual Performance Announcement, correcting them to "May 22, 2024" and "May 16, 2024" respectively[3] - The 2023 Annual Performance Announcement was published on April 2, 2024, covering the financial results up to December 31, 2023[4] - Other information in the 2023 Annual Performance Announcement remains unchanged[5]

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 1,317,495,782.20, a significant decrease of approximately 52.3% compared to RMB 2,765,645,281.40 in 2022[12] - Revenue from foreign transactions originating from China was RMB 990,219,379.24, down from RMB 2,359,717,382.90 in the previous year, representing a decline of about 58.0%[13] - The company reported a net loss of RMB 231,188,456.56 for the year, compared to a loss of RMB 16,980,412.51 in the previous year, indicating a significant increase in losses[15] - The loss attributable to equity owners was RMB 566,861,510.82, an increase of approximately 33.39% from RMB 424,969,725.59 in the prior year[26] - The loss per share was approximately RMB 0.71, up about 33.96% from RMB 0.53 per share in the previous year[26] - The total operating revenue was approximately 1.32 billion, a decrease from 2.77 billion in 2022, representing a decline of about 52.3%[104] - The operating profit for 2023 was approximately -549.18 million, compared to -441.51 million in 2022, reflecting a worsening of about 24.4%[104] - The total comprehensive loss for 2023 was $(578.84) million, compared to $(450.44) million in 2022, indicating a worsening of approximately 28.5%[108] Assets and Liabilities - The total liabilities amounted to RMB 2,553,379,468.25, a decrease from RMB 3,128,252,351.27 in the previous year, indicating a reduction of approximately 18.3%[4] - Total assets decreased from $4.04 billion in 2022 to $2.89 billion in 2023, a decline of approximately 28.4%[109] - Total liabilities decreased from $2.97 billion in 2022 to $2.42 billion in 2023, a reduction of approximately 18.5%[109] - The company reported a total accounts receivable of RMB 302,629,749.21 with a bad debt provision of RMB 49,365,077.21 for the year 2023[20] - The total accounts payable amounted to RMB 509,647,241.72, down from RMB 611,264,285.51 in the previous year[22] - Non-current assets decreased from $2.39 billion in 2022 to $1.96 billion in 2023, a decline of about 17.9%[109] Research and Development - The company has ongoing research and development efforts aimed at new product innovations, although specific details were not disclosed in the earnings call[1] - Research and development expenses in 2023 were approximately 35.48 million, down from 41.65 million in 2022, showing a decrease of about 14.8%[104] - The company is committed to innovation and product development, aiming to create marketable and profitable products through effective incentive mechanisms[75] Strategic Initiatives - The company is exploring market expansion strategies, particularly in international markets, to recover from the significant revenue decline experienced in 2023[1] - The company plans to implement cost-cutting measures to improve financial performance in the upcoming fiscal year[1] - The company plans to adjust sales strategies based on market conditions and focus on developing new markets and customers in 2024[52] - The company will continue to optimize its product and customer structure, aiming to improve market share and restore market confidence[52] - The group plans to enhance financing efforts to ensure capital safety, focusing on communication with banks and optimizing the debt structure to reduce high-interest debt rates[59] - The group will strengthen marketing efforts and optimize sales strategies to adapt to market dynamics and customer needs[73] Governance and Management - The management expressed optimism about future growth prospects, contingent on market recovery and successful execution of strategic initiatives[1] - The company is committed to maintaining high governance standards and has adhered to the corporate governance code throughout the year[180] - The management's ability to continue as a going concern is uncertain and depends on meeting future operational funding and financing needs[86] - The company has taken measures to address significant uncertainties regarding its ability to continue as a going concern, including improving financial management[174] Dividend and Shareholder Information - The board of directors does not recommend the distribution of a final dividend for the year ended December 31, 2023[26] - The company will not recommend the distribution of a final dividend for the year ending December 31, 2023, pending shareholder approval[163] - The annual report for the year ending December 31, 2023, will be sent to shareholders and is available for download on the company's website and the stock exchange websites[185] Market Conditions - The group acknowledges the impact of global economic growth, oil and gas price cycles, and carbon neutrality policies on the industry and will adjust product structure and market layout accordingly[72] - The company anticipates growth in the oil service industry due to rising oil prices and increased capital expenditure in upstream oil and gas[128]

Financial Performance - The company reported a net loss attributable to shareholders of $(0.71) per share for 2023, compared to $(0.53) per share in 2022, indicating a worsening in earnings per share[5]. - Net loss attributable to the owners of the parent company increased to RMB (1,425,879,061.33) from RMB (859,017,550.51) in the previous year, marking an increase of about 66.0%[43]. - The total net profit for the current period is (578,534,451.16), compared to (448,935,447.37) in the previous period, indicating a significant increase in losses[69]. - The net profit attributable to shareholders of the parent company is (566,861,510.82), up from (424,969,725.59), reflecting a worsening financial performance[69]. - The loss per share was approximately RMB 0.71, up about 33.96% from RMB 0.53 per share in the previous year[66]. Revenue and Costs - Total operating revenue for the year ended December 31, 2023, was RMB 1,317,495,782.20, a decrease from RMB 2,765,645,281.40 in 2022, representing a decline of approximately 52.3%[40]. - Total operating costs for the year were RMB 1,627,990,434.22, down from RMB 3,129,597,158.90 in the previous year, indicating a reduction of about 48.0%[40]. - Revenue from external transactions originating in China was ¥990,219,379.24 in 2023, down from ¥2,359,717,382.90 in 2022, indicating a decrease of approximately 58.0%[80]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 2,888,081,988.80, down from RMB 4,038,605,559.51 in 2022, a decrease of approximately 28.5%[43]. - Total liabilities as of December 31, 2023, were RMB 2,553,379,468.25, down from RMB 3,128,252,351.27 in 2022, a decrease of approximately 18.3%[43]. - Current assets decreased to 923,407,920.06 from 1,648,063,045.76, representing a decline of approximately 44%[70]. - Cash and cash equivalents significantly dropped to 99,072,876.12 from 459,657,822.57, a decrease of about 78%[70]. Accounts Receivable and Bad Debts - Total accounts receivable decreased to approximately $509.65 million in 2023 from $611.26 million in 2022, a reduction of about 16.6%[9]. - The total bad debt loss for accounts receivable was approximately $(9.72) million in 2023, significantly lower than $(61.27) million in 2022, reflecting improved credit management[2]. - The aging analysis of accounts receivable shows a significant decrease in receivables aged within one year, from approximately $406.34 million in 2022 to $208.81 million in 2023, a decline of about 48.7%[9]. Research and Development - Research and development expenses for the year were RMB 35,480,208.21, down from RMB 41,651,730.15 in 2022, representing a decrease of approximately 14.9%[40]. - The company incurred research and development costs of RMB 30,578,559.41, compared to RMB 33,412,376.94 in the previous year[59]. Strategic Plans and Market Outlook - The company plans to enhance its financing efforts to ensure capital safety and optimize its debt structure, aiming to reduce high-interest debt rates[28]. - The outlook for the domestic oil and gas industry remains positive, driven by increased exploration and development efforts, which is expected to boost demand for oilfield services[17]. - The company aims to adjust sales strategies for 2024, focusing on new markets and customers, with a goal to improve market share and restore confidence[101]. - The company plans to strengthen marketing efforts and optimize sales strategies, focusing on new markets and customers to improve operational conditions in 2024[137]. Governance and Compliance - The company has adopted the corporate governance code and has complied with all relevant provisions for the year ending December 31, 2023[167]. - The board does not recommend the distribution of a final dividend for the year ending December 31, 2023, pending shareholder approval[156]. - The company has not repurchased, sold, or redeemed any of its listed securities during the year ending December 31, 2023[172]. Risk Management - The company emphasizes risk management strategies to mitigate operational risks, including monitoring raw material price fluctuations and currency exchange rates[25][26]. - The company aims to enhance financing efforts to ensure capital safety and improve internal control management systems to mitigate operational risks[130][131].

Financial Performance - As of December 31, 2023, the total revenue of the group reached RMB 1,317,495,782.20, a decrease of approximately 52.36% compared to RMB 2,765,645,281.40 in the same period last year [1] - The loss attributable to equity owners amounted to RMB 566,861,510.82, an increase of approximately 33.39% from RMB 424,969,725.59 in the same period last year [1] - The loss per share was approximately RMB 0.71, up about 33.96% from a loss of RMB 0.53 per share in the previous year [1] - Total revenue for the year 2023 was RMB 1.317 billion, a decrease of 52.36% year-over-year [27] - Net loss attributable to shareholders for 2023 was RMB 567 million, compared to a net loss of RMB 448.94 million in 2022 [27] - The company reported a basic and diluted loss per share of RMB (0.71) for 2023, compared to RMB (0.53) in 2022 [17] - The total comprehensive income attributable to the parent company's owners for 2023 was RMB (567,133,930.95), down from RMB (426,327,037.05) in 2022, a decline of 33.0% [124] - The net profit for 2023 was RMB (578,534,451.16), compared to RMB (448,935,447.37) in 2022, indicating a loss increase of 28.9% [124] Dividend and Shareholder Information - The board of directors did not recommend the distribution of a final dividend for the year ended December 31, 2023 [1] - The board does not recommend the distribution of a final dividend for the year ending December 31, 2023, pending shareholder approval [64] Company Operations and Structure - The group primarily engages in the design, research and development, manufacturing, sales services, and export trade of products required for the energy equipment industry [7] - The group’s operations are divided into six reporting segments based on internal organizational structure and management requirements [8] - Management regularly evaluates the performance of these reporting segments to allocate resources and assess their performance [8] - The accounting policies and measurement standards used in the segment reporting are consistent with those used in preparing the financial statements [9] Market and Strategic Focus - The company plans to focus on market expansion and customer service, particularly in new markets and with new customers, in 2024 [31] - The company aims to optimize product and customer structure while enhancing the order volume of high-value-added products [31] - The marketing strategy for 2024 focuses on adjusting sales tactics based on market conditions, emphasizing exports and oil pipes while strengthening the general pipe segment [59] - The company aims to enhance product and customer structure, targeting major oilfield markets and improving bidding processes to boost market share and restore confidence [59] Financial Position and Liabilities - Total assets at the end of the reporting period were RMB 2.888 billion, down 28.49% year-over-year [27] - Net assets attributable to shareholders decreased by 57.08% to RMB 424 million [27] - The company has no significant liabilities at the end of the reporting period [24] - The company has approximately 1.679 billion RMB of interest-bearing liabilities due within one year, with some debts in default and creditors initiating lawsuits, leading to account freezes and asset seizures [57] - The company’s total liabilities included RMB 1,039,227,174.84 in segment liabilities [158] Cost Management and Efficiency - The company aims to enhance production management and cost control to improve profitability, focusing on reducing high-interest debt and optimizing the debt structure [74] - Employee costs, including director remuneration, decreased to CNY 193,620,108.47 from CNY 253,656,649.51, a decline of about 23.6% [104] - Inventory costs recognized as expenses dropped to CNY 1,215,719,694.55 from CNY 2,675,212,319.74, a decrease of approximately 54.5% [104] - Total operating costs for 2023 were approximately ¥1.63 billion, down from ¥3.13 billion in 2022, reflecting a reduction of 48% [123] Research and Development - Research and development costs decreased to CNY 30,578,559.41 from CNY 33,412,376.94, a decline of about 8.3% [104] - The company will continue to innovate in technology and product development, aiming to create marketable and profitable products [42][51] Risk Management and Compliance - The company is committed to strengthening internal control management and enhancing risk management to reduce operational risks [44][53] - The company acknowledges the uncertainty regarding the execution of its plans and the ability to continue as a going concern based on future operational and financing needs [75] - The company is focused on improving financing efforts to ensure capital safety and reduce financing costs through better communication with banks [52] - The company will closely monitor currency fluctuations and interest rate risks to mitigate their impact on financial performance [48] Environmental and Regulatory Compliance - The company is committed to improving environmental protection measures in response to stricter national safety and environmental regulations, which will increase operational costs [70] Asset Management and Divestitures - The company plans to divest low-efficiency subsidiaries to optimize its asset-liability structure, which is expected to enhance liquidity and improve profitability [57] - The company has entered into two sale agreements to sell 70% of Shouguang Baolong Petroleum Equipment Co., Ltd. for RMB 1 and 98.0769% of Weihai Baolong Petroleum Special Materials Co., Ltd. for RMB 141,606,708.94, with the completion of these transactions expected by March 2024 [62] Industry Outlook - The domestic oil and gas industry is expected to experience strong growth due to increased exploration and development efforts driven by national policies [29] - High oil prices and a favorable industry outlook are expected to enhance overall performance for oil companies, leading to increased business volume for oil service companies [161]

Financial Performance - Operating revenue for the reporting period was CNY 203,704,216.55, a decrease of 68.66% compared to the same period last year[1] - Net profit attributable to shareholders of the listed company was a loss of CNY 88,667,654.68, representing a 4.89% improvement year-on-year[1] - Basic and diluted earnings per share were both CNY (0.1112), an increase of 4.79% compared to the previous year[1] - Operating revenue for the first nine months of 2023 was CNY 1,002,123,231.65, a decrease of 54.88% compared to CNY 2,220,897,730.20 in the same period of 2022[22] - Operating costs for the same period were CNY 929,267,750.89, down 56.49% from CNY 2,135,736,337.65 year-on-year[22] - Total profit for the current period was (252,776,791.83), which is an improvement from (281,618,097.30) in the previous period, showing a reduction in losses by approximately 10.3%[44] - Net profit for the current period was (254,682,267.47), compared to (283,377,622.15) in the previous period, indicating an improvement of about 10.1%[44] Assets and Liabilities - Total assets decreased by 18.15% to CNY 3,305,574,889.93 from CNY 4,038,605,559.51 at the end of the previous year[9] - Total current assets as of September 30, 2023, amounted to CNY 1,068,000,643.78, down from CNY 1,648,063,045.76 at the beginning of the year[34] - Total liabilities amount to 2,648,409,531.96 CNY, a decrease of 15.4% from 3,128,252,351.27 CNY in the previous period[61] - Total equity attributable to the parent company is 742,586,010.04 CNY, down 25.0% from 987,960,842.88 CNY in the previous period[62] - The company’s total equity as of September 30, 2023, was CNY 657,165,357.97, down from CNY 910,353,208.24 at the beginning of the year[40] Cash Flow - Cash flow from operating activities for the year-to-date was CNY 20,395,954.15, down 19.79% year-on-year[1] - The company’s cash flow from operations was reported at 803,038,653.98, a decrease from 2,109,038,730.95 in the previous period, indicating a decline of approximately 61.9%[48] - Net cash flow from financing activities was CNY (292,004,557.16), a significant increase of 519.39% compared to CNY (47,143,640.15) in the previous year, primarily due to increased debt repayment[16] - Cash inflow from financing activities totaled approximately ¥3.26 billion, a decrease of 4.4% from the previous period's ¥3.41 billion[98] - Cash outflow for debt repayment was approximately ¥3.48 billion, an increase of 9.0% compared to ¥3.19 billion in the prior period[98] Shareholder Information - The total number of common shareholders at the end of the reporting period was 35,609, including 35,565 A-share accounts and 44 H-share accounts[27] - The top ten shareholders held a combined 62.81% of the shares, with Shouguang Molong Holdings Co., Ltd. holding the largest share at 29.53%[18] Other Income and Expenses - The company reported a total of CNY 124,442.60 in non-operating income for the reporting period, with a total of CNY 1,597,626.90 for the year-to-date[4] - Other income decreased by 82.37% to CNY 132,723.59 from CNY 752,905.98, mainly due to a reduction in subsidy income[22] - The company reported a significant increase in gains from asset disposal, which rose by 28,880.86% to CNY 325,712.98 compared to CNY 1,123.89 in the previous year[22] Impairment and Litigation - The company reported a credit impairment loss of (1,713,385.47) compared to a gain of 3,641,035.54 in the previous period, reflecting a significant negative shift[44] - The company has ongoing litigation and arbitration cases totaling 78, with a combined amount of approximately 147.95 million, accounting for 14.98% of the latest audited net assets[55]