The presentation material contains forward-looking statements. Such forward-looking statements are subject to various risks, uncertainties and assumptions, certain of which are not under our control, causing actual results and growth which may differ materially from these direct or indirect forward-looking statements. Forward-looking events and relevant development discussed herein may differ from the expectation of Hilong Holding Limited (the "Company"), and even never occur due to such risks, uncertaintie ...

Financial Performance - In 2024, the company recorded revenue of RMB 4,668.3 million, an increase of 9.8% compared to 2023[4] - Total revenue increased by RMB 416.8 million or 9.8% from RMB 4,251.5 million in 2023 to RMB 4,668.3 million in 2024, driven by growth in oilfield services and marine engineering services[15] - The oilfield services segment achieved revenue of RMB 1,579.9 million, reflecting a growth of 35.2% compared to 2023[7] - The marine engineering services segment reported revenue of RMB 963.8 million, marking a significant increase of 105.9% year-on-year[8] - The oilfield equipment manufacturing and services segment generated revenue of RMB 2,124.7 million, a decrease of 18.7% year-on-year[5] - Revenue from oilfield equipment manufacturing and services decreased by RMB 489.7 million or 18.7% from RMB 2,614.4 million in 2023 to RMB 2,124.7 million in 2024, primarily due to a decline in drill pipe sales[16] - The company reported a total income from oilfield services of RMB 1,579.9 million, representing 33.8% of total revenue in 2024[15] - Oilfield services segment revenue increased by RMB 411.0 million or 35.2% from RMB 1,168.9 million in 2023 to RMB 1,579.9 million in 2024[19] - Marine engineering services segment revenue surged by RMB 495.6 million or 105.9% from RMB 468.2 million in 2023 to RMB 963.8 million in 2024[19] Operational Efficiency and Management - The company has strengthened cash flow management and implemented proactive financial measures to enhance overall operational efficiency[4] - The company has established a scientific management approach to enhance operational efficiency and cash flow management[45] - The company is focused on enhancing its core competitiveness in oilfield services through improved technical capabilities and research levels[11] - The company is committed to technological innovation and digital management transformation to overcome traditional business development bottlenecks[11] - The company is focused on digital transformation and automation in its operations to improve efficiency and reduce production costs[49] Market Expansion and Strategy - The company aims to expand its business in the Middle East, Southeast Asia, and South America, capitalizing on opportunities from overseas oil companies[9] - The company plans to enhance its high-value drill tool products and automate its production lines, focusing on high-end market demands in regions like the Middle East and North America[10] - The company will actively pursue new contracts in international markets such as Nigeria, Ecuador, Brazil, and Kuwait, while diversifying its service offerings[11] - The company aims to enhance its market reputation by promoting high-value drill products tailored to high-end customer needs in regions like the Middle East and North America[51] - The company is actively expanding into new markets and developing new technologies to support long-term growth[45] Financial Health and Risks - The annual profit attributable to the owners of the company decreased from RMB 148.7 million in 2023 to RMB 28.3 million in 2024[28] - The net financial cost increased by RMB 98.2 million or 62.3% to RMB 255.9 million in 2024, mainly due to reduced repurchase note income[25] - Trade receivables increased to RMB 2,620.8 million in 2024 from RMB 2,397.4 million in 2023, with trade receivables turnover days rising from 146 days to 154 days[30][31] - The company's cash and cash equivalents totaled RMB 721.6 million as of December 31, 2024, down from RMB 840.4 million in 2023, while net borrowings decreased to RMB 1,964.9 million from RMB 2,023.5 million[33] - The company faces risks from fluctuations in domestic and international oil and gas prices, which could significantly impact its business and financial performance[164] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange, ensuring compliance with all applicable rules[82] - The board consists of a balanced mix of executive and non-executive directors, promoting independent judgment in decision-making[87] - The company is committed to high ethical standards and transparency, aiming to maximize shareholder returns and maintain high-quality products and services[84] - The company has implemented measures to remind all directors of the importance of compliance with trading rules, especially during blackout periods[85] - The company has established a risk management system that involves all employees and focuses on major business and high-risk areas[134] Leadership and Management Team - The company has a strong management team with extensive experience in the oil sector, including Mr. Gao Zhihai, who has been with the group since June 2005[74] - The company reported a significant leadership change, with Mr. Daliang resigning as Executive President effective October 15, 2024[80] - The company appointed Mr. Zhang Jun as the co-CEO effective December 23, 2024, bringing over 29 years of experience in the oil industry[74] - The management team includes professionals with advanced degrees and certifications, enhancing the company's governance and operational capabilities[75][76] Community Engagement and Social Responsibility - The company actively participates in community activities and collaborates with charitable organizations to enhance community welfare[163] - The company is committed to providing a safe and harmonious work environment for its employees, recognizing them as its most valuable asset[164] - The group has adhered to environmental laws and regulations, ensuring compliance with standards for emissions and waste management, with no significant costs incurred during the reporting period[156] Internal Controls and Risk Management - The company has made significant progress in addressing identified internal control deficiencies through the appointment of an internal control consultant[136] - An internal audit team has been established to regularly assess the effectiveness of the risk management and internal control systems, reporting results every six months[137] - The audit committee is responsible for monitoring and reviewing the effectiveness of the risk management and internal control systems[129] Shareholder Communication - The company has established multiple channels for ongoing dialogue with shareholders, ensuring timely and transparent communication[145] - The company provides shareholders with contact information for inquiries, including phone numbers and email addresses[147] - All company communications, including annual reports and financial summaries, are made available in both Chinese and English to facilitate understanding[149]

Financial Performance - Revenue for the year ended December 31, 2024, was approximately RMB 4,668.3 million, an increase of about 9.8% compared to 2023[4] - Gross profit for the same period was approximately RMB 1,121.8 million, representing a 22.5% increase year-over-year, with a gross margin of 24.0%[4] - Annual profit was approximately RMB 30.1 million, a decrease of 82.4% from RMB 171.5 million in 2023, with profit attributable to owners of the company at RMB 28.3 million, down 81.0% from RMB 148.7 million[4] - Operating profit for the year was RMB 371.8 million, down from RMB 434.5 million in the previous year[5] - Basic and diluted earnings per share from continuing and discontinued operations were RMB 0.0167, compared to RMB 0.0876 in the previous year[6] - The group reported a total segment profit of RMB 476,599,000 for the year ending December 31, 2024, compared to RMB 519,582,000 in 2023[28] - The group’s operating profit for the year was RMB 371,771,000, reflecting a decrease from RMB 434,509,000 in 2023[28] - The company reported a net loss of RMB 68.1 million in 2024, compared to a net profit of RMB 62.2 million in 2023, mainly due to exchange losses from the depreciation of the Nigerian Naira[61] Revenue Breakdown - The oilfield equipment manufacturing and services segment generated revenue of RMB 2,124,700,000, down 18.7% from RMB 2,614,421,000 in 2023[26] - The oilfield services segment saw a revenue increase of 34.9%, reaching RMB 1,579,862,000 compared to RMB 1,168,928,000 in 2023[26] - The marine engineering services segment reported revenue of RMB 963,770,000, a significant increase from RMB 468,182,000 in 2023[26] - Revenue from the oilfield equipment manufacturing and services segment decreased by RMB 489.7 million or 18.7% from RMB 2,614.4 million in 2023 to RMB 2,124.7 million in 2024, primarily reflecting a decline in drill pipe sales[54] - Revenue from the oilfield services segment increased by RMB 411.0 million or 35.2% to RMB 1,579.9 million in 2024, reflecting increased income from oil casing trading and improved drilling rig utilization[56] - Revenue from the marine engineering services segment surged by RMB 495.6 million or 105.9% to RMB 963.8 million in 2024, driven by increased income from seabed pipeline laying and offshore drilling platform construction projects[56] Expenses and Costs - Research and development expenses increased to RMB 24.8 million from RMB 18.4 million in 2023[5] - Selling and marketing costs rose by RMB 18.6 million or 25.0% to RMB 92.9 million in 2024, accounting for 2.0% of revenue, up from 1.7% in 2023[59] - Administrative expenses increased by RMB 99.9 million or 22.1% to RMB 551.1 million in 2024, primarily reflecting higher employee costs and headquarters expenses[60] - Financial costs increased by RMB 98.2 million or 62.3% to RMB 255.9 million in 2024, primarily due to a decrease in repurchase note income[62] Assets and Liabilities - Total assets increased to RMB 8,077,721 thousand in 2024, up from RMB 7,957,923 thousand in 2023, representing a growth of 1.5%[7] - Total liabilities rose to RMB 4,818,597 thousand in 2024, compared to RMB 4,628,918 thousand in 2023, marking an increase of 4.1%[8] - Current assets amounted to RMB 5,166,030 thousand in 2024, slightly up from RMB 5,140,557 thousand in 2023, indicating a growth of 0.5%[7] - Cash and cash equivalents decreased to RMB 721,631 thousand in 2024, down from RMB 840,384 thousand in 2023, a decline of 14.1%[7] - The company's equity attributable to owners was RMB 3,263,918 thousand in 2024, compared to RMB 3,335,539 thousand in 2023, showing a decrease of 2.1%[7] - Trade and other payables increased significantly to RMB 1,737,743 thousand in 2024, from RMB 1,395,278 thousand in 2023, reflecting a rise of 24.5%[8] - The company has a net debt of RMB 1,947,454 thousand as of December 31, 2024, compared to RMB 1,960,319 thousand in 2023[78] Cash Flow and Liquidity - The group had cash and cash equivalents of RMB 721,631,000 as of December 31, 2024, indicating significant uncertainty regarding the ability to continue as a going concern[20] - The company is taking measures to improve its liquidity and financial position, including restructuring its RMB 2,261,082,000 notes due on November 18, 2024[51] - The current ratio as of December 31, 2024, is 110.2%, down from 117.0% in 2023, calculated based on current assets of RMB 5,166.0 million and current liabilities of RMB 4,686.9 million[73] Corporate Governance and Future Plans - The company did not recommend any dividend for the year ended December 31, 2024[3] - The board has resolved not to recommend any dividend for the year ending December 31, 2024[109] - The company plans to continue seeking alternative financing and loans to meet existing financial obligations and future operational and capital expenditures[22] - The company aims to expand its integrated service capabilities and strengthen its market position through a transformation towards "light assets and technology-driven" operations[87] - The company plans to increase its exploration investment to RMB 5 billion annually until 2025, aiming to double exploration workload and proven reserves by that year[90] Market and Operational Developments - The company has expanded its market presence in North America, the Middle East, and Southeast Asia, securing important orders from high-end clients[85] - The company is focusing on technological innovation and digital transformation to enhance product quality and service performance[85] - The company is actively developing high-end markets and clients while emphasizing the construction of a research talent team[85] - The company has achieved certification for its drilling tools from major clients in the Middle East, laying a foundation for entering high-end markets[85] - The company is enhancing its production efficiency and reducing costs through automation and intelligent upgrades in its manufacturing processes[88] Audit and Compliance - The independent auditor issued a disclaimer of opinion on the consolidated financial statements due to significant uncertainties regarding the company's ability to continue as a going concern[49] - The company has engaged Ernst & Young (China) to conduct an independent investigation regarding transactions related to MTC, with significant progress reported[101] - The company has appointed Kai Jin Consulting Limited for an independent review of internal control procedures, with major findings and recommendations to be announced in due course[101]

Revenue Growth - Revenue increased by RMB 618.9 million or 33.5% to RMB 2,465.6 million for the six months ended June 30, 2024, compared to RMB 1,846.7 million for the same period in 2023[15]. - The oilfield services segment recorded revenue of RMB 923.5 million, representing a significant year-on-year growth of 56.9% compared to the first half of 2023[63]. - Revenue from marine engineering services reached RMB 409.7 million in the first half of 2024, representing a year-on-year growth of 175.6% compared to the first half of 2023[65]. - The oilfield equipment manufacturing and service segment achieved revenue of RMB 1,132.5 million, a year-on-year increase of 2.1% compared to the first half of 2023[60]. Cost and Profitability - The cost of sales and services rose by RMB 476.4 million or 33.8% to RMB 1,887.3 million for the six months ended June 30, 2024[21]. - Gross profit increased by RMB 142.5 million or 32.7% to RMB 578.3 million for the six months ended June 30, 2023, with a gross margin of 23.5%, down 0.1% from the previous period[22]. - Operating profit decreased to RMB 229,110 thousand from RMB 301,288 thousand, reflecting a decline of 24% year-over-year[88]. - Net profit attributable to owners of the company from continuing operations was RMB 46,002 thousand, compared to RMB 27,040 thousand in the previous year, marking an increase of 70.5%[94]. Financial Position - Total assets as of June 30, 2024, amounted to RMB 8,113,195 thousand, up from RMB 7,957,923 thousand at the end of 2023, indicating a growth of 1.95%[85]. - Total liabilities increased to RMB 4,784,608 thousand from RMB 4,628,918 thousand, reflecting a rise of 3.37%[85]. - The company’s total equity as of June 30, 2024, was RMB 3,328,587 thousand, a marginal decrease from RMB 3,329,005 thousand at the end of 2023[85]. - The net debt as of June 30, 2024, was RMB 2,283.8 million, up from RMB 2,023.5 million as of December 31, 2023[37]. Cash Flow and Liquidity - The company reported a net cash outflow from operating activities of RMB 90,403 thousand, compared to a net inflow of RMB 212,928 thousand for the same period in 2023[100]. - Cash and cash equivalents decreased to RMB 610,085 thousand from RMB 840,384 thousand, a decline of 27.3%[85]. - The company is facing significant uncertainty regarding its ability to continue as a going concern, which raises substantial questions about its financial obligations and liquidity[114]. - Plans have been established to alleviate liquidity pressure, including seeking support from bondholders for a proposed restructuring to extend the maturity date of the 2024 notes[114]. Market Strategy and Innovation - The company aims to strengthen long-term partnerships with well-known clients in the international market to meet increasing demand, particularly in the Middle East and Russia[17]. - The company is focused on technological innovation and expanding its market presence through new product development and strategic initiatives[11]. - The company is actively managing cash flow and has implemented measures to enhance operational efficiency, maintaining relatively stable cash flow in the first half of 2024[59]. - The company is exploring new business growth points and has secured high-end clients and orders in key regions such as North America and the Middle East[59]. Risk Management - The company has implemented measures to manage liquidity risk, including monitoring cash reserves and expected cash flows[120]. - Credit risk management measures are in place to control potential recoverability issues, with cash and cash equivalents held in reputable financial institutions[122]. - The company regularly assesses customer creditworthiness based on financial conditions and market situations to mitigate credit risk[123]. - The company is considering entering into currency hedging transactions to manage foreign exchange risks more effectively[52]. Compliance and Governance - The company has established an independent investigation committee to assess transactions related to its Russian subsidiaries and ensure compliance with market regulations[78]. - The company appointed a new auditor, Guo Fu Hao Hua (Hong Kong) CPA Limited, effective July 8, 2024, to ensure proper financial oversight[81]. - The company is working on fulfilling the resumption guidance set by the stock exchange, which includes independent investigations and financial disclosures[78]. - The company has been suspended from trading since April 2, 2024, pending compliance with the stock exchange's resumption requirements[76].

Financial Performance - Hilong achieved a revenue of RMB 4,251.5 million in 2023, representing an increase of approximately 38.4% compared to 2022, with a net profit of RMB 171.5 million[5]. - Total revenue increased by RMB 1,178.6 million or 38.4% from RMB 3,072.9 million in 2022 to RMB 4,251.5 million in 2023[20]. - The oilfield equipment manufacturing and services segment generated revenue of RMB 2,614.4 million, a significant increase of 37.5% year-on-year, driven by rising oil demand and increased capital expenditure in the upstream sector[7]. - The oilfield services segment recorded revenue of RMB 1,168.9 million, up 10.5% from 2022, benefiting from sustained capital expenditure by upstream companies[9]. - The marine engineering services segment saw revenue rise to RMB 468.2 million, a remarkable increase of 311.9% year-on-year, reflecting the company's transformation into a high-tech EPCIC contractor[10]. - Gross profit increased by RMB 230.4 million or 33.6% from RMB 685.1 million in 2022 to RMB 915.5 million in 2023, with a gross margin of 21.5%, down 0.8% from the previous year[26]. - Profit attributable to owners of the company increased from RMB 105.6 million in 2022 to RMB 148.7 million in 2023[33]. - The company reported a significant increase in revenue for the fiscal year ending December 31, 2023, with total revenue reaching approximately $500 million, representing a year-over-year growth of 15%[104]. Market Strategy and Expansion - Hilong's strategic focus includes expanding into high-end markets in the Middle East, the US, and Canada, enhancing the reputation of its drilling products[11]. - The company aims to expand its market presence in regions such as the Middle East, Southeast Asia, and West Africa, focusing on high-tech service contracts[14]. - The company is actively expanding into high-technology integrated package services, successfully completing a drilling package contract in Iraq[68]. - The company plans to enhance its product offerings, including high-strength, corrosion-resistant drill tools, and smart drilling rods, while also investing in automation and new technology development[76]. - The company will actively pursue new contracts in Nigeria, Ecuador, Iraq, Oman, Brazil, and Kuwait, while diversifying its service offerings in drilling and well services[78]. - The company expects to benefit from increased upstream oil and gas capital expenditures in Saudi Arabia, UAE, and Iraq, which will create significant opportunities in the Middle East market[75]. Technological Innovation and R&D - The company is focusing on technological innovation and digital transformation, aiming to evolve into a light-asset, digital, and high-tech intelligent enterprise[5]. - The company plans to enhance R&D in high-strength drill rods, eco-friendly threaded drill rods, and smart drilling technologies, focusing on differentiated market opportunities[12]. - The company has made significant advancements in technology research and development, including the completion of high-strength and high-sulfur-resistant drill rod projects, with orders received from North American markets[72]. - The company is committed to increasing its technological capabilities and research levels to shorten drilling completion cycles and enhance core competitiveness[13]. - The company has established a research team with rich product technology service and system management experience, focusing on technological innovation and digital transformation[65]. Financial Management and Efficiency - The company is actively managing accounts receivable and inventory to improve asset operational efficiency, maintaining relatively stable cash flow in 2023[5]. - Trade receivables turnover days decreased from 173 days in 2022 to 146 days in 2023, indicating faster collection from international oil and gas companies[40]. - The company has strengthened cash flow management through accounts receivable and inventory management, maintaining relatively stable cash flow in 2023[63]. - The company has implemented measures to prevent future violations of trading regulations by reminding directors of compliance importance[123]. - The company is undergoing an independent internal control review to address identified deficiencies in its risk management and internal control systems, with recommendations being implemented to ensure ongoing effectiveness[188]. Corporate Governance - The company has strengthened its governance framework, enhancing transparency and accountability measures in line with best practices[116]. - The board of directors has confirmed compliance with the corporate governance code throughout the year[119]. - The company adopted the standard code for securities trading by directors, ensuring adherence to regulations during the reporting period[120]. - The board consists of a balanced mix of executive and non-executive directors, ensuring strong independent judgment[125]. - The company has established written guidelines for employees regarding insider trading, aligning with the standard code[123]. Shareholder Engagement - The company expressed gratitude to shareholders and employees for their contributions, emphasizing the importance of their efforts for future growth[15]. - The board of directors held an annual general meeting with full attendance from most members, demonstrating commitment to shareholder engagement[198]. - The board has taken multiple plans and measures to improve the group's liquidity and financial condition, as detailed in the consolidated financial statements[175]. Risk Management - The company has established a risk management system that aligns with its strategic objectives and complies with relevant laws and regulations[181]. - The audit committee monitors the effectiveness of the risk management and internal control systems and reports to the board[180]. - The company emphasizes cost-effective risk management procedures to enhance the efficiency and effectiveness of its risk management systems[182]. - An internal audit team has been established to regularly assess the adequacy and effectiveness of the company's risk management and internal control systems, reporting results every six months to the audit committee and board[189]. Employee and Management Changes - The company employed a total of 2,370 full-time employees as of December 31, 2023, down from 3,245 employees a year earlier[58]. - The company’s employee costs (excluding directors' remuneration) totaled RMB 773.2 million[59]. - The company plans to appoint a new CEO by the end of November 2024, deviating from the code provision C.2.1 from October 15, 2024[134]. - The company’s chairman, Zhang Jun, was appointed as CEO on October 15, 2024, bringing over 34 years of experience in the oil industry[92].

Financial Performance - Revenue for the year ended December 31, 2023, was approximately RMB 4,251.5 million, an increase of about 38.4% compared to 2022[1] - Gross profit was approximately RMB 915.5 million, up 33.6% year-on-year, with a gross margin of 21.5%, a decrease of about 0.8% from 2022[1] - Annual profit was approximately RMB 171.5 million, a 55.3% increase from RMB 110.4 million in 2022, with profit attributable to owners of the company at RMB 148.7 million, up 40.8% from RMB 105.6 million[1] - Operating profit for the year was RMB 434.5 million, compared to RMB 465.4 million in 2022[2] - Basic earnings per share from continuing operations was RMB 0.1079, compared to a loss of RMB 0.0235 in 2022[3] - The company did not recommend any dividend payment for the year ended December 31, 2023[1] - Financial income increased to RMB 15.8 million from RMB 4.4 million in 2022[2] - The company reported a net loss from discontinued operations of RMB 24.2 million for the year[2] - The company reported a significant increase in trade and other payables, which rose from RMB 981,740 thousand in 2022 to RMB 1,395,278 thousand in 2023, an increase of approximately 42.1%[5] - The company reported a profit attributable to owners of RMB 148,665,000 for the year, a significant increase from a loss of RMB 39,792,000 in the previous year[35] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 7,957.9 million, slightly up from RMB 7,892.1 million in 2022[4] - Total equity attributable to owners of the company was RMB 3,329.0 million, compared to RMB 3,317.9 million in 2022[4] - Non-current liabilities decreased from RMB 2,706,052 thousand in 2022 to RMB 234,063 thousand in 2023, a reduction of approximately 91.4%[5] - Current liabilities increased significantly from RMB 1,868,106 thousand in 2022 to RMB 4,394,855 thousand in 2023, representing an increase of about 135.4%[5] - Total liabilities slightly increased from RMB 4,574,158 thousand in 2022 to RMB 4,628,918 thousand in 2023, a growth of approximately 1.2%[5] - Total equity and liabilities rose from RMB 7,892,060 thousand in 2022 to RMB 7,957,923 thousand in 2023, indicating an increase of around 0.8%[5] - As of December 31, 2023, the group has current liabilities totaling RMB 2,744,476,000, including RMB 2,234,333,000 in notes payable due within 12 months[12] - The group's cash and cash equivalents amount to RMB 840,384,000 as of December 31, 2023, indicating significant liquidity concerns[12] - The net debt as of December 31, 2023, was RMB 2,023.5 million, down from RMB 2,514.5 million in 2022[61] - The current ratio decreased to 117.0% as of December 31, 2023, compared to 246.9% in 2022[61] Operational Highlights - The company is primarily engaged in the manufacturing and distribution of oil and gas equipment, oilfield services, and marine engineering services[7] - The oilfield equipment manufacturing and services segment generated revenue of RMB 2,614,421,000, up 37.5% from RMB 1,901,759,000 in the previous year[21] - The oilfield services segment reported revenue of RMB 1,168,928,000, an increase of 10.5% compared to RMB 1,057,479,000 in 2022[21] - The offshore engineering services segment saw significant growth, with revenue rising to RMB 468,182,000 from RMB 113,677,000, marking a 312.5% increase[21] - The company plans to continue expanding its market presence and investing in new technologies to enhance service offerings[21] - The company has successfully expanded its market presence in North America and the Middle East, securing high-end customer orders[75] - The company is actively expanding into high-tech integrated drilling package projects, showcasing its enhanced capabilities in integrated drilling services[76] Financial Management and Strategy - The board has developed plans to alleviate liquidity pressure and improve cash flow, including restructuring discussions with noteholders[12] - The group aims to accelerate the collection of trade and other receivables to enhance operational cash flow[12] - The company is actively seeking alternative financing and loans to meet its financial obligations and future capital expenditures[12] - The management has taken measures to control costs and expenses effectively to improve the cash flow situation[12] - The company is implementing various plans to improve liquidity and financial condition, including restructuring borrowings and obtaining new financing[44] Corporate Governance - The company has adhered to all applicable corporate governance codes as of December 31, 2023[93] - The company has adopted the standard code for securities transactions by directors and confirmed compliance by all directors for the year ending December 31, 2023[94] - The annual performance for the year ending December 31, 2023, has been reviewed and agreed upon by the audit committee and the auditor[95] - The independent auditor issued a disclaimer of opinion on the consolidated financial statements for the year ended December 31, 2023, due to uncertainties related to going concern[43] Market and Industry Outlook - The global oil supply is expected to remain tight, supporting oil prices at mid to high levels in the medium to long term[80] - The company aims to expand its high-end customer base in the US, Canada, and the Middle East, focusing on maintaining existing advantages and achieving breakthroughs in new markets[81] - The company plans to enhance its market reputation for drill products in the Middle East and North America, while also increasing investment in high-strength and corrosion-resistant drill tools[82]

Revenue Performance - Revenue increased by RMB 403.2 million or 23.7% to RMB 2,106.4 million for the six months ended June 30, 2023, compared to RMB 1,703.2 million for the same period in 2022[15]. - Oilfield equipment manufacturing and services revenue rose by RMB 272.0 million or 27.1% to RMB 1,275.1 million, driven primarily by increased sales of drill pipes[15]. - Oilfield services revenue increased by RMB 130.2 million or 28.4% to RMB 588.7 million, reflecting higher trade service income and improved drilling rig utilization[6]. - The company reported a total income of RMB 2,106.4 million, with contributions from various regions including North and South America, and the Middle East[12]. - The oilfield service segment achieved revenue of RMB 589 million, showing a significant growth of 28% year-on-year in the first half of 2023[115]. - The oilfield equipment manufacturing and services segment generated revenue of RMB 1,275 million, representing a 27% increase compared to the first half of 2022[141]. Cost and Expenses - Administrative expenses increased by RMB 91.8 million or 43.7% to RMB 301.7 million, mainly due to higher employee costs and increased travel and communication expenses[2]. - Sales and marketing costs decreased by RMB 2.9 million or 4.6% to RMB 60.7 million, accounting for 2.9% of total revenue, down from 3.7% in the previous period[1]. - Cost of sales/service rose by RMB 198.5 million or 15.9% to RMB 1,444.9 million[20]. Profitability - Gross profit increased by RMB 204.6 million or 44.8% to RMB 661.5 million, with a gross margin of 31.4%, up 4.6% from the previous period[21]. - The company reported a profit attributable to owners of RMB 144.7 million, compared to RMB 54.1 million in the previous period[45]. - The net profit for the six months ending June 30, 2023, was RMB 157.7 million, reflecting a significant increase from RMB 221.9 million in the same period of 2022, primarily due to foreign exchange gains of RMB 140.8 million from the appreciation of the USD[60]. - Operating profit increased to RMB 438,753 thousand from RMB 357,716 thousand, reflecting a growth of about 22.6%[157]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were RMB 838.1 million, up from RMB 519.0 million at the end of 2022, showing improved liquidity[71]. - The company recognized a cash inflow from operating activities of RMB 177.0 million for the six months ending June 30, 2023, compared to a cash outflow of RMB 5.8 million in the same period of 2022[71]. - The net cash generated from operating activities was RMB 176,974 thousand, a substantial improvement from a net cash used of RMB (5,846) thousand in the prior year[163]. - The company generated RMB 49,684 thousand in net cash from investing activities, a recovery from a net cash used of RMB (48,831) thousand in the same period last year[163]. Financial Position - The total liabilities increased to RMB 1,329.3 million as of June 30, 2023, compared to RMB 1,033.3 million as of December 31, 2022, indicating a rise in financial obligations[68]. - The company reported a total of RMB 920.8 million in trade payables as of June 30, 2023, compared to RMB 677.9 million as of December 31, 2022, reflecting a rise in obligations to suppliers[68]. - As of June 30, 2023, total borrowings amounted to RMB 3,140.4 million, with a debt-to-equity ratio of 39.36%, down from 40.25% as of December 31, 2022[80]. - The company's current liabilities totaled 2,031,910 thousand RMB as of June 30, 2023, compared to 1,787,101 thousand RMB at the end of 2022[129]. Market and Strategic Initiatives - The company continues to focus on expanding its oilfield services and equipment manufacturing capabilities to drive future growth[15]. - The company is actively exploring new business areas, including environmental technology services and enhanced oil recovery techniques, to diversify its service offerings[115]. - The company plans to enhance its integrated market communication and bidding management systems, focusing on project evaluation and risk control in the EPC project market[126]. - The company aims to expand its traditional drilling services in mature markets like Nigeria, Ecuador, Iraq, and Oman while also pursuing new contracts and diversifying its service offerings[124]. Technological Development - The company is focusing on technological development and innovation, aiming for a transition towards lightweight, digital, and high-tech intelligent operations[112]. - The company has completed the first phase of development for AI-based pipeline inspection data analysis technology and obtained multiple intellectual property rights[145]. - The company is focusing on high-tech R&D, having applied for the 2023 technology enterprise designation, and is advancing research in offshore engineering capabilities and new technologies[148]. Employee and Operational Efficiency - The number of full-time employees increased to 3,254 as of June 30, 2023, compared to 3,245 on December 31, 2022[85]. - The company has improved operational efficiency, with a decrease in non-productive time (NPT) and zero-day rates over recent years, indicating enhanced operational effectiveness[115]. - Employee costs (excluding directors' remuneration) totaled RMB 446.4 million for the interim period[110].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Hilong Holding Limited 海隆控股有限公司* （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：1623） 截至二零二三年六月三十日止六個月的 中期業績公告 財務摘要 • 收入約為人民幣2,106.4百 萬 元，較 二 零 二 二 年 同 期 增 加 約23.7%。 • 經營利潤約為人民幣438.8百 萬 元，較 二 零 二 二 年 同 期 增 加 約22.7%。 • 本公司所有者應佔利潤約為人民幣144.7百 萬 元，較 截 至 二 零 二 二 年 六 月三十日止六個月本公司所有者應佔期內利潤人民幣54.1百萬元增加 約167.5%。 • 董事會決議不會就截至二零二三年六月三十日止六個月宣派任何中期 股 息。 * 僅供識別 – 1 – 海隆控股有限公司（「本公司」）董 事（「董 事」）會（「董事會」 ...

Revenue Performance - Total revenue increased from RMB 2,916.9 million in 2021 to RMB 3,736.1 million in 2022, representing an increase of RMB 819.2 million or 28.1%, driven mainly by growth in the oilfield equipment manufacturing and service segments[6] - The oilfield service segment's revenue rose from RMB 845.3 million in 2021 to RMB 1,057.5 million in 2022, an increase of RMB 212.2 million or 25.1%, reflecting higher trade service revenue and improved drilling rig utilization[7] - The oilfield equipment manufacturing and services segment achieved revenue of RMB 2,210 million, a significant increase of 83% compared to 2021[107] - The pipeline technology and services segment generated revenue of RMB 355 million, a 9% decrease year-on-year due to order delays caused by COVID-19 restrictions in Shanghai[78] - The revenue from the pipeline technology and services segment decreased by RMB 33.8 million or 8.7% to RMB 354.9 million in 2022, down from RMB 388.7 million in 2021, primarily due to a decline in revenue from oil and gas pipeline coating services[176] Profitability and Costs - Gross profit increased from RMB 898.3 million in 2021 to RMB 1,067.0 million in 2022, an increase of RMB 168.7 million or 18.8%, with a gross profit margin of 28.6% in 2022, down 2.2% from 2021[8] - The net profit recorded for the year was RMB 145.8 million[106] - The net profit for 2022 was RMB 272.3 million, compared to RMB 71.9 million in 2021, reflecting a foreign exchange gain of RMB 265.4 million[135] - Administrative expenses increased by RMB 41.8 million or 9.8% from RMB 425.3 million in 2021 to RMB 467.1 million in 2022, primarily reflecting increased employee costs and travel expenses[139] - The total cost of sales/services rose by RMB 650.6 million or 32.2% to RMB 2,669.2 million in 2022[133] Cash Flow and Financial Position - The net cash generated from operating activities in 2022 was RMB 556.2 million, after accounting for income tax payments of RMB 122.6 million[16] - The net cash generated from operating activities in 2022 was RMB 556.2 million, compared to RMB 453.8 million in 2021, representing an increase of 22.6%[36] - The net cash used in investing activities in 2022 was RMB 103.1 million, compared to RMB 23.6 million in 2021, indicating a significant increase in investment outflows[36] - The net cash used in financing activities in 2022 was RMB 321.0 million, primarily reflecting the repayment of borrowings amounting to RMB 662.0 million[38] - As of December 31, 2022, the company had outstanding liabilities of RMB 3,115.4 million, primarily denominated in USD and RMB[18] - The company reported a debt-to-equity ratio of 40.25% as of December 31, 2022, down from 43.77% in the previous year, indicating improved financial stability[197] Market and Strategic Initiatives - The company expects sufficient workload in 2023, driven by high oil prices and ongoing market development efforts, with a focus on increasing international market share[2] - The company plans to enhance its core competitiveness through lean management and technological innovation, while exploring new profit margins in various segments[2] - The company aims to expand its market presence in high-end drilling markets in the Middle East and Americas, and will increase R&D efforts for high-end drilling products[2] - The company plans to actively pursue new contracts in drilling and workover markets in Nigeria, Ecuador, and Pakistan, while also expanding into new markets in the Middle East and Africa[81] - The company is focusing on improving brand image and expanding international presence while seeking collaboration opportunities with high-end clients[82] Workforce and Operational Capacity - The total workforce of the company is 3,245, including 2,054 field workers and 136 R&D personnel[75] - The total number of full-time employees increased to 3,245 as of December 31, 2022, compared to 2,920 in the previous year, indicating growth in operational capacity[199] Research and Development - The company has completed the R&D of HLNST special thread joints and is currently promoting them in North America, having secured orders[172] - The company has obtained 2 invention patents and 1 utility model patent in 2022, along with multiple government project approvals[172] - The company is focusing on technological innovation and has established a scientific R&D project management system to drive sustainable development[172] - The company is focusing on developing three key technology products: industrial smart sensors, industrial special robots, and safety monitoring solutions for oil and gas stations, aiming to become a leader in the industrial internet technology sector[174] International Operations - The company has initiated the registration of a subsidiary in Libya and is conducting market development activities to achieve new business breakthroughs in 2023[81] - The company successfully completed its first total drilling package well in Iraq, enhancing its overseas oil service market presence[108] - The company plans to complete the construction of a corrosion protection facility in the Middle East by the end of 2023, aiming to expand its overseas projects[174]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Hilong Holding Limited 海隆控股有限公司* （於開曼群島註冊成立之有限公司） （股 份 代 號：1623） 截至二零二二年十二月三十一日止年度的 年度業績公告 財務摘要 • 收入約為人民幣3,736.1百 萬 元，較 二 零 二 一 年 增 加 約28.1%。 • 毛利約為人民幣1,067.0百 萬 元，較 二 零 二 一 年 增 加 約18.8%。於 二 零 二 二 年，毛 利 率 為28.6%，較 二 零 二 一 年 減 少 約2.2%。 • 年度利潤約為人民幣145.8百萬元，而二零二一年的年度利潤則為人民幣 47.6百 萬 元。歸 屬 於 本 公 司 所 有 者 的 年 度 利 潤 約 為 人 民 幣141.0百 萬 元， 而二零二一年歸屬於所有者的利潤則為人民幣44.2百 萬 元。 • 基本每股盈利約為人民幣0.08 ...