Core Points - The Hong Kong Fundamental 50 Index (H11110) experienced a decline of 0.57%, closing at 2024.18 points with a trading volume of 88.877 billion yuan [1] - Over the past month, the index has increased by 5.23%, 2.50% over the last three months, and 10.55% year-to-date [1] - The index selects the 50 companies with the highest fundamental value from the Hong Kong market, using a fundamental value-weighted calculation to mitigate the impact of overvalued securities typically found in traditional market-capitalization indices [1] Company Holdings - The top ten holdings of the Hong Kong Fundamental 50 Index are: - China Construction Bank (15.8%) - China Mobile (7.5%) - HSBC Holdings (6.62%) - Tencent Holdings (5.13%) - Industrial and Commercial Bank of China (5.01%) - Alibaba Group (4.6%) - Bank of China (4.02%) - China Unicom (3.87%) - CNOOC (3.21%) - Ping An Insurance (2.62%) [1] Sector Allocation - The sector allocation of the index is as follows: - Financials: 44.71% - Communication Services: 20.38% - Real Estate: 10.74% - Energy: 6.48% - Consumer Discretionary: 6.25% - Information Technology: 3.61% - Utilities: 2.49% - Health Care: 1.61% - Materials: 1.31% - Consumer Staples: 1.23% - Industrials: 1.20% [2] Index Adjustment - The index samples are adjusted annually, with changes implemented on the next trading day following the second Friday of June [2] - Weight factors are generally fixed until the next scheduled adjustment, with special circumstances allowing for temporary adjustments [2]

Group 1 - The board of directors of China National Offshore Oil Corporation (CNOOC) held its sixth meeting of 2025 on May 12, 2025, via written resolution, with all 8 directors present, confirming the legality and validity of the meeting [2][4] - The board approved the proposal regarding changes in the composition of independent non-executive directors and board committees, which was reviewed and submitted by the nomination committee [3][4] - The board also approved the remuneration for independent non-executive director Qiu Zhizhong, who will serve as the chairman of the remuneration committee, and the remuneration for Chen Zeming, pending approval at the 2024 annual general meeting [6][7] Group 2 - The board recommended the re-election of Zhou Xinhai, Wang Dehua, Yan Hongtao, and Mu Xiuping as executive and non-executive directors at the 2024 annual general meeting, with all proposals receiving unanimous support [8][11][14][17] - The board approved a proposal to amend the company's articles of association and rules for general meetings, which will be submitted for approval at the 2024 annual general meeting [20][21] - The board also approved the proposal to convene the 2024 annual general meeting, with details to be announced later [23][24] Group 3 - The board announced the resignation of independent non-executive director Zhao Chongkang, effective at the end of the 2024 annual general meeting, and expressed gratitude for his contributions [30][31] - The board proposed the appointment of Chen Zeming as an independent non-executive director, subject to shareholder approval at the 2024 annual general meeting, with a proposed annual remuneration of HKD 950,000 [32][34] - Changes in the composition of board committees were also announced, with Qiu Zhizhong appointed as chairman of the remuneration committee and Li Shuxian as a member of the nomination committee [36] Group 4 - The board approved amendments to the company's articles of association and rules for general meetings to reflect recent regulatory changes and enhance electronic communication and voting [39][40]

Group 1 - The core point of the article is that China National Offshore Oil Corporation (CNOOC) reported a net profit attributable to shareholders of 36.563 billion yuan in the first quarter of 2025, representing a year-on-year decrease of 7.9% [1] Group 2 - The reported net profit for the first quarter of 2025 is 36.563 billion yuan [1] - The year-on-year decrease in net profit is 7.9% [1]

Group 1 - The company reported a revenue of 106.854 billion RMB for the first quarter, representing a year-on-year decrease of 4.1% [1] - The net profit for the first quarter was 36.563 billion RMB, showing a year-on-year decline of 7.9% [1]

Financial Performance - CNOOC Limited reported a revenue of RMB 106,854 million for Q1 2025, a decrease of 4.1% compared to RMB 111,468 million in the same period last year[6]. - The net profit attributable to shareholders was RMB 36,563 million, down 7.9% from RMB 39,719 million year-on-year[6]. - The cash flow from operating activities was RMB 57,274 million, reflecting a decline of 4.5% from RMB 59,978 million in the previous year[6]. - The company's oil and gas sales revenue for Q1 2025 was approximately RMB 88.27 billion, a decrease of 1.9% year-on-year due to falling oil prices[15]. - Operating profit for Q1 2025 was RMB 49,927 million, down 5.7% from RMB 52,597 million in Q1 2024[21]. - Net profit for Q1 2025 was RMB 36,601 million, a decline of 7.1% from RMB 39,726 million in Q1 2024[22]. Production and Sales - In Q1 2025, the company's total net production reached 188.8 million barrels of oil equivalent, an increase of 4.8% year-on-year[14]. - The company's net production in China was 130.8 million barrels of oil equivalent, up 6.2% year-on-year, primarily due to contributions from the Bozhong 19-6 oil and gas field[14]. - Natural gas sales increased by 15.8% to RMB 13,635 million, compared to RMB 11,774 million in the previous year[10]. Pricing and Costs - The average realized price for crude oil was USD 72.65 per barrel, a decrease of 7.7% from USD 78.75 per barrel in the same quarter last year[10]. - The average realized gas price was $7.78 per thousand cubic feet, an increase of 1.2% year-on-year[15]. - The Brent crude oil futures average price for Q1 2025 was $74.98 per barrel, down 8.3% year-on-year[14]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 1,102,706 million, representing a 4.4% increase from RMB 1,056,281 million at the end of the previous year[6]. - Total liabilities as of March 31, 2025, amounted to RMB 316,922 million, up from RMB 306,845 million at the end of 2024[20]. - The total equity attributable to shareholders of the parent company increased to RMB 783,824 million as of March 31, 2025, from RMB 747,548 million at the end of 2024[20]. Cash Flow and Financing - Cash flow from investing activities for Q1 2025 was negative RMB 35,408 million, compared to negative RMB 33,884 million in Q1 2024[24]. - The company reported a basic earnings per share of RMB 0.77 for Q1 2025, down from RMB 0.84 in Q1 2024[23]. - Cash inflow from borrowings decreased significantly to $9 million in Q1 2025 from $1,331 million in Q1 2024, representing a decline of 99.32%[25]. - Total cash inflow from financing activities was $42 million in Q1 2025, down from $1,352 million in Q1 2024, a decrease of 96.91%[25]. - The net cash flow from financing activities was negative $1,794 million in Q1 2025, worsening from negative $1,156 million in Q1 2024[25]. Capital Expenditures and Discoveries - Capital expenditures totaled RMB 27,713 million, down 4.5% from RMB 29,014 million in the same period last year[10]. - The company made two new discoveries and successfully evaluated 14 oil and gas structures during the quarter[14]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 233,407[12]. - The largest shareholder, China National Offshore Oil Corporation (BVI), holds 60.54% of the shares[12]. Leadership and Future Outlook - The company is set to implement new accounting standards starting in 2025, which may affect financial reporting[26]. - The board of directors includes key executives such as CEO Zhou Xinhui and CFO Mu Xiuping, indicating strong leadership continuity[26].

Core Viewpoint - The marine engineering equipment manufacturing industry in China is experiencing high-quality development, significantly supporting the marine economy and the construction of a maritime power. The industry is projected to achieve a value-added of 103.2 billion yuan in 2024, representing a growth of 9.1% compared to 2023 [1][20]. Group 1: Industry Overview - The marine oil and gas engineering equipment sector is crucial for the development of marine resources, with advancements in technology leading to the establishment of various standards and series of equipment [1][4]. - Recent achievements include the construction of significant marine equipment such as the FPSO "Ocean Oil 119" and the semi-submersible production and storage platform "Deep Sea No. 1" [1][20]. - The utilization rates of marine drilling equipment in China are notably higher than the global average, with mobile drilling equipment at 93% [1][20]. Group 2: Industry Development History - The marine oil and gas engineering equipment industry in China began in the 1960s, initially relying on imported technology and equipment. Over the decades, the industry has evolved, with significant advancements in domestic capabilities [6]. - The introduction of policies supporting equipment localization has led to breakthroughs in key technologies, particularly in deepwater and ultra-deepwater equipment [6][8]. Group 3: Industry Policies - The Chinese government has implemented various policies to support the marine engineering equipment sector, including plans to enhance the production capacity of marine engineering products and accelerate the development of new equipment [8][10]. - The Ministry of Industry and Information Technology has also promoted the integration of 5G technology in marine applications, enhancing operational efficiency [8][10]. Group 4: Industry Chain - The marine oil and gas engineering equipment industry chain consists of upstream design and raw material supply, midstream manufacturing, and downstream service provision to oil service companies and operators [11]. Group 5: Market Trends - The industry is expected to see continued demand growth, particularly in deepwater and unconventional resource development, driven by technological advancements and the push for sustainable practices [29][30][32]. - The focus on green technology and low-carbon solutions is becoming increasingly important, with a shift towards renewable energy equipment and environmentally friendly materials [30][32]. Group 6: Key Companies - Major players in the industry include CNOOC Engineering, CNOOC Services, and China Shipbuilding Industry Corporation, which dominate various segments of the marine oil and gas exploration and production equipment market [22][23]. - CNOOC Engineering is recognized as the largest marine oil and gas engineering contractor in the Asia-Pacific region, while CNOOC Services is a leading offshore drilling contractor [25][27].

Core Points - The China Securities Index Hong Kong 300 Value Index (HK300V) reported a decline of 3.40% over the past month, an increase of 4.61% over the past three months, and a year-to-date increase of 3.37% [1] - The index is composed of four indices: the China Securities Index Hong Kong 300 Growth Index, the China Securities Index Hong Kong 300 Value Index, the China Securities Index Hong Kong 300 Relative Growth Index, and the China Securities Index Hong Kong 300 Relative Value Index [1] - The top ten holdings of the HK300V index include HSBC Holdings (11.0%), China Construction Bank (10.45%), China Mobile (7.86%), Industrial and Commercial Bank of China (7.47%), Bank of China (5.71%), Ping An Insurance (5.39%), CNOOC (4.73%), China Merchants Bank (3.2%), Agricultural Bank of China (2.28%), and Bank of China Hong Kong (2.03%) [1] Industry Breakdown - The financial sector constitutes 59.06% of the index holdings, followed by communication services at 11.70%, energy at 10.51%, real estate at 8.19%, and industrials at 3.65% [2] - The index undergoes adjustments every six months, with sample adjustments implemented on the next trading day after the second Friday of June and December [2] - The weight factors are adjusted in accordance with the sample adjustments, and temporary adjustments occur when the underlying index samples are modified [2]

Group 1 - The core index, the China Securities Hong Kong 300 Value Index (HK300V), closed at 2684.65 points, showing a decline of 6.44% over the past month, an increase of 5.03% over the past three months, and a year-to-date increase of 1.80% [1][2] - The index consists of four sub-indices: the China Securities Hong Kong 300 Growth Index, the China Securities Hong Kong 300 Value Index, the China Securities Hong Kong 300 Relative Growth Index, and the China Securities Hong Kong 300 Relative Value Index, reflecting the overall performance of different style securities based on the China Securities Hong Kong 300 Index sample [1][2] - The top ten holdings of the China Securities Hong Kong 300 Value Index include HSBC Holdings (10.58%), China Construction Bank (10.38%), China Mobile (8.24%), Industrial and Commercial Bank of China (7.42%), Bank of China (5.93%), Ping An Insurance (5.21%), CNOOC (4.79%), China Merchants Bank (3.18%), Agricultural Bank of China (2.22%), and Bank of China Hong Kong (1.98%) [1][2] Group 2 - The industry composition of the index shows that finance accounts for 58.40%, communication services for 12.21%, energy for 10.62%, real estate for 8.24%, industrial for 3.67%, utilities for 2.49%, materials for 1.57%, consumer staples for 1.29%, healthcare for 0.65%, consumer discretionary for 0.44%, and information technology for 0.42% [2] - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December each year, with a sample adjustment ratio generally not exceeding 20% [2] - In the event of temporary adjustments, the index samples will be adjusted accordingly when the China Securities Hong Kong 300 Index undergoes sample changes, and companies that are delisted will be removed from the index sample [2]

Financial Performance - Total revenue for 2023 was RMB 416,609 million, a slight decrease from RMB 422,230 million in 2022, representing a 1.5% decline[20]. - Net profit for 2023 was RMB 124,090 million, down from RMB 141,677 million in 2022, reflecting a decrease of 12.5%[20]. - The company expects total revenue for 2024 to be approximately RMB 420,506 million, indicating a projected growth of 0.9%[20]. - The total assets of the company are approximately RMB 1,056.3 billion[10]. - The total assets increased to RMB 1,005,598 million in 2023, up from RMB 929,031 million in 2022, marking an increase of 8.2%[21]. - The total liabilities for 2023 were RMB 337,722 million, a slight increase from RMB 330,648 million in 2022, reflecting a growth of 2.0%[21]. - The company achieved an annual operating revenue of RMB 420.5 billion and a net profit attributable to shareholders of RMB 137.9 billion, maintaining a high level of profitability[33]. Production and Reserves - As of December 31, 2024, the company holds net proven reserves of 7.27 billion barrels of oil equivalent, with an annual net production of 726.8 million barrels of oil equivalent[10]. - Total production in 2023 reached 1,801,692 BOE per day, an increase of 9.0% compared to 1,652,718 BOE per day in 2022[23]. - The company reported a total of 1,345,117 BOE per day in China for 2024, which is a forecasted increase of 5.3% from 1,277,725 BOE per day in 2023[23]. - Proven oil reserves in China increased from 1,952.6 million barrels in 2020 to 3,102.9 million barrels in 2024, representing a growth of 58.7%[25]. - The total net proven reserves (in million barrels of oil equivalent) increased from 5,001.2 in 2020 to 6,905.9 in 2024, marking a growth of 38.1%[25]. - The company achieved a record oil and gas production of 726.8 million barrels of oil equivalent in 2023, a year-on-year increase of 7.2%[31]. - The reserve replacement ratio reached 167% in 2023, indicating strong resource replenishment capabilities[30]. Dividends and Shareholder Returns - The company proposes a final dividend of HKD 0.66 per share (tax included) for the year 2024, totaling HKD 1.40 per share when combined with the interim dividend of HKD 0.74 per share[4]. - The company plans to maintain its dividend payout despite potential changes in the total number of issued shares[4]. - The company plans to maintain a dividend payout ratio of no less than 45% from 2025 to 2027, subject to shareholder approval[34]. Technological Advancements and Development - The company is committed to low-carbon development and technological advancements in its operations[21]. - Significant technological advancements were made, including the successful deployment of Asia's first deepwater jacket and the first mobile heating platform in offshore operations[38]. - The company emphasizes the integration of exploration and development to enhance resource conversion efficiency[45]. - The company is focusing on large and medium-sized oil and gas fields in 2025, with a strategic shift towards gas production[45]. Risk Management and Compliance - The company emphasizes the importance of risk management and internal control, stating that its systems are effective as of December 31, 2024[87]. - The company faces risks from fluctuating oil and gas prices, which can significantly affect its business, cash flow, and profitability[94]. - The company operates in sensitive environmental and politically unstable regions, which poses health, safety, security, and environmental (HSSE) risks[96]. - The company has implemented a risk management and internal control framework to manage risks associated with achieving business objectives[159]. - The company has integrated ESG risk management into its regular risk management processes, identifying at least six categories of ESG risks, including climate change and data privacy, for centralized management[160]. Corporate Governance - The board of directors emphasizes that the financial reports are prepared in accordance with both Chinese and international accounting standards, audited by Ernst & Young[3]. - The company has received multiple awards for its corporate governance and ESG performance, including the "Outstanding Enterprise Contribution Award" for the 75th anniversary of New China and the "Best ESG" award from Institutional Investor magazine[117]. - The company is committed to maximizing shareholder value and strictly adheres to corporate governance policies in compliance with the Hong Kong Stock Exchange listing rules[119]. - The company has established a professional investor relations department to enhance communication with shareholders and investors[184]. Exploration and Global Operations - The company is focused on expanding its operations in various regions, including Asia, Africa, North America, South America, Oceania, and Europe[10]. - The company successfully secured 10 oil contracts in Mozambique, Brazil, and Iraq, enhancing its position as a global industry leader[32]. - The company holds a 50% stake in BC ENERGY INVESTMENTS CORP. in Argentina, enhancing its presence in South America[71]. - The company signed oil contracts for five blocks in Mozambique in 2024, expanding its exploration portfolio in Africa[66]. Employee and Board Diversity - The company has a total of 3,706 female employees, representing 17% of the total workforce, with 16% of senior management positions held by women[126]. - The board has adopted a diversity policy aimed at enhancing corporate governance and ensuring diversity among board members, considering factors such as gender, age, cultural background, and professional experience[126]. - The company emphasizes equal opportunities in recruitment, training, and promotion, fostering a culture of respect and inclusion[126]. Environmental and Social Responsibility - The company completed green electricity replacement of 760 million kilowatt-hours, contributing to its green transformation initiatives[38]. - The company has invested RMB 133.12 million in social responsibility initiatives in 2024, including RMB 132.85 million in cash donations[84]. - CNOOC aims to integrate offshore wind power with oil and gas production, promoting green and low-carbon development initiatives[82].

Core Viewpoint - China National Offshore Oil Corporation (CNOOC) reported a net profit increase of 11.4% for 2024, driven by significant growth in oil and gas production and ongoing cost control measures [1][3]. Financial Performance - Revenue for 2024 reached RMB 420.506 billion, a 0.9% increase year-on-year, influenced by rising oil and gas sales and declining international oil prices [3]. - The net profit attributable to shareholders was RMB 137.982 billion, reflecting an 11.4% year-on-year increase due to enhanced production and efficiency [2][3]. - Basic and diluted earnings per share were both RMB 2.90 [3]. Production and Reserves - CNOOC's oil and gas production reached 726.8 million barrels of oil equivalent, a 7.2% increase year-on-year [1][3]. - The company achieved a net proven reserve of 7.27 billion barrels of oil equivalent, with a reserve replacement ratio of 167%, ensuring a stable reserve life of 10 years [1][3]. Cost Management - The average cost per barrel of oil equivalent was USD 28.52, maintaining a competitive cost advantage [4]. - Operating costs per barrel were USD 7.61, showing minimal change from the previous year, indicating ongoing efforts in cost efficiency [4]. International Expansion and Green Transition - CNOOC successfully acquired 10 oil contracts in Mozambique, Brazil, and Iraq, enhancing its global asset portfolio [5]. - The company is advancing in deepwater oil and gas development technologies and has initiated the construction of smart oil fields [5]. - CNOOC is committed to green development, actively pursuing offshore wind power and carbon capture technologies [5]. - For 2025, the company targets a production goal of 760-780 million barrels of oil equivalent and plans capital expenditures of RMB 125-135 billion [5].