Revenue Growth - Total revenue increased by RMB 132.1 million or 8.4% to RMB 1,703.2 million for the six months ended June 30, 2022, compared to RMB 1,571.1 million for the same period in 2021[9]. - Revenue from the oilfield equipment manufacturing and services segment rose by RMB 343.7 million or 52.1% to RMB 1,003.1 million, primarily driven by increased sales of drill pipes[9]. - Sales revenue from drill pipes in the international market increased by RMB 489.7 million or 177.8% to RMB 765.1 million, with sales volume rising by 117.8% to 31,461 tons[11]. - Revenue from the pipeline technology and services segment totaled RMB 177.3 million, up from RMB 138.3 million in the previous year[7]. - Revenue from oilfield services was RMB 458.5 million, compared to RMB 434.1 million in the same period last year[7]. - Revenue from the Middle East increased to RMB 437.2 million, up from RMB 166.0 million, indicating strong demand in that region[7]. - Revenue from Russia, Central Asia, and Europe rose to RMB 485.2 million, compared to RMB 344.4 million in the previous year[7]. - Revenue from OCTG coating services increased by RMB 5.7 million or 4.2% to RMB 142.7 million, driven by rising international demand[14]. - Pipeline technology and services revenue rose by RMB 39.0 million or 28.2% to RMB 177.3 million, mainly due to increased income from CWC services[14]. - Oilfield services revenue increased by RMB 24.4 million or 5.6% to RMB 458.5 million, reflecting a recovery in drilling rig utilization[14]. Profitability and Financial Performance - Gross profit increased by RMB 35.0 million or 8.3% to RMB 456.9 million, with a gross margin of 26.8%, remaining stable compared to the previous period[17]. - Profit attributable to owners of the company for the interim period was RMB 54.1 million, compared to RMB 40.2 million for the previous period[24]. - Operating profit increased significantly to RMB 357,716 thousand, up from RMB 191,169 thousand in the previous year, indicating a growth of 87.1%[81]. - Net profit attributable to the owners of the company for the period was RMB 54,058 thousand, compared to RMB 40,209 thousand in 2021, marking a year-on-year increase of 34.4%[81]. - The total comprehensive income for the period was RMB 377,932 thousand, compared to a loss of RMB 5,633 thousand in the same period last year, indicating a strong recovery[84]. Cash Flow and Liquidity - Cash and cash equivalents decreased by RMB 130,933 thousand during the six months ended June 30, 2022, compared to an increase of RMB 108,892 thousand in the same period of 2021[36]. - The net cash used in operating activities was RMB (5,846) thousand for the six months ended June 30, 2022, compared to RMB 293,932 thousand generated in the same period of 2021[36]. - Operating cash flow for the six months ended June 30, 2022, was RMB 47,961 thousand, a significant decrease from RMB 313,795 thousand in the same period of 2021, representing a decline of approximately 84.7%[89]. - The company maintained a cash balance of RMB 519,003 thousand at the end of June 30, 2022, down from RMB 803,357 thousand at the end of 2021[36]. - The cash flow from investing activities showed a net outflow of RMB (48,831) thousand for the six months ended June 30, 2022, compared to a net inflow of RMB 86,543 thousand in the same period of 2021[36]. Assets and Liabilities - As of June 30, 2022, total assets amounted to RMB 7,830,368 thousand, an increase from RMB 7,071,806 thousand as of December 31, 2021[76]. - The total liabilities as of June 30, 2022, amounted to RMB 4,409,609 thousand, an increase from RMB 4,028,979 thousand at the end of 2021, representing a rise of 9.4%[78]. - The company’s total liabilities as of June 30, 2022, were RMB 941,928,000, compared to RMB 736,348,000 as of December 31, 2021, reflecting an increase of about 28%[153]. - The total trade payables as of June 30, 2022, were RMB 628,495 thousand, up from RMB 455,066 thousand as of December 31, 2021, reflecting a 38.1% increase[34]. Market and Operational Developments - The company plans to continue expanding its market presence and enhancing its product offerings to drive future growth[9]. - The company successfully won a lawsuit against the Canadian International Trade Tribunal regarding anti-dumping and countervailing investigations, enhancing its brand image in the North American market[58]. - The company signed multiple contracts with major clients, including ConocoPhillips, marking its first collaboration with a high-end U.S. oil company[58]. - The company has expanded its OCTG coating services into new applications, gaining customer recognition in various markets[57]. - The company plans to actively pursue new drilling contracts in Nigeria and Ecuador, while expanding into new markets and customers in the Middle East and Africa to improve utilization rates of existing drilling rigs[71]. Employee and Operational Efficiency - As of June 30, 2022, the total number of full-time employees was 3,186, up from 2,920 as of December 31, 2021[51]. - Employee costs (excluding director remuneration) totaled RMB 318.4 million during the interim period[51]. - The drilling service teams improved operational efficiency, achieving a new record for drilling speed and receiving client recognition and cash rewards[60]. Shareholder and Ownership Structure - As of June 30, 2022, the total number of shares held by Mr. Zhang Jun is 829,661,000, representing approximately 55.600% of the issued share capital[196]. - The ownership structure suggests a concentrated control by Mr. Zhang Jun and his family over the company's equity, which may impact governance and strategic decisions[198]. - The company’s equity distribution highlights the significant influence of key individuals in its operational and financial strategies[198].

Financial Performance - In 2021, Hilong Holding Limited achieved a revenue of RMB 2,917 million, an increase of approximately 11% compared to 2020, with a net profit of RMB 47.6 million[7]. - Total revenue increased by RMB 293.9 million or 11.2% from RMB 2,623.0 million in 2020 to RMB 2,916.9 million in 2021[19]. - The company reported a net profit attributable to owners of the company of RMB 44.2 million in 2021, a recovery from a loss of RMB 298.8 million in 2020[34]. - The company reported a significant increase in revenue, with a year-on-year growth of 15% in the latest fiscal year[82]. - The company reported a significant increase in revenue for the fiscal year ending December 31, 2021, with total revenue reaching approximately $1.2 billion, representing a year-over-year growth of 15%[96]. Segment Performance - The oilfield equipment manufacturing and services segment recorded revenue of RMB 1,205 million, a decrease of 8% year-on-year, while the oilfield services segment saw a revenue increase of 24% to RMB 845 million[8]. - The pipeline technology and services segment achieved revenue of RMB 389 million, a significant increase of 53% year-on-year, with all business contracts reaching historical highs[9]. - The marine engineering services segment reported revenue of RMB 478 million, up 26% year-on-year, successfully completing complex projects and contributing stable cash flow[9]. - Revenue from oilfield services increased to RMB 845.3 million, representing 29.0% of total revenue in 2021[17]. - Revenue from pipeline technology and services increased to RMB 388.7 million, accounting for 13.4% of total revenue in 2021[17]. Market Outlook and Strategy - Looking ahead to 2022, the company anticipates further growth in industry investment and workload driven by rising global energy demand and oil prices[11]. - Hilong plans to adopt differentiated marketing strategies in the domestic market for drill pipe business while maintaining strategic partnerships in overseas markets[11]. - The company intends to expand its trade business by developing new trade products and exploring overseas opportunities[11]. - The oil and gas industry is expected to recover, driven by rising global energy demand and increasing oil prices, which have reached recent highs[72]. - The company plans to focus on high-end products in the domestic drill rod market, including sulfur-resistant drill rods and titanium alloy drill rods[73]. Cost Management and Financial Health - Gross profit increased by RMB 204.3 million or 29.4% to RMB 898.3 million in 2021 from RMB 694.0 million in 2020, with a gross margin of 30.8%, up 4.3% from the previous year[26]. - Selling and marketing costs decreased by RMB 9.8 million or 8.2% to RMB 110.1 million in 2021, accounting for 3.8% of revenue, down from 4.6% in 2020[27]. - Administrative expenses rose by RMB 26.5 million or 6.6% to RMB 425.3 million in 2021, mainly due to increased consulting and R&D expenses[28]. - The company has maintained a strong balance sheet, with total assets reported at $3 billion, reflecting a solid financial position to support future growth initiatives[97]. - The company has implemented measures to reduce capital expenditures and improve cash flow management during the reporting period[62]. Research and Development - The company has made significant advancements in R&D, including the development of high-strength drill pipes and OCTG coatings tailored for the Middle East market[69]. - Investment in R&D has increased by 25%, focusing on innovative technologies in oil drilling and production[82]. - The company is investing in new technology development, allocating $10 million for R&D in advanced drilling techniques[88]. Corporate Governance - The board consists of eight directors, including two executive directors, three non-executive directors, and three independent non-executive directors[114]. - The company has established three committees under the board: Audit Committee, Remuneration Committee, and Nomination Committee, with clear written terms of reference[131]. - The board has adopted a diversity policy aimed at achieving sustainable and balanced development, considering various diversity aspects such as gender, age, and professional experience[142]. - The company confirmed its responsibility for preparing the financial statements for the year ended December 31, 2021[157]. Environmental and Social Responsibility - The company has implemented a health, safety, and environmental management system to ensure operations do not harm the environment and complies with health and safety policies[188]. - The company is committed to adhering to environmental laws and regulations, ensuring compliance with national and local standards[188]. - The group actively participates in community activities and collaborates with charitable organizations to improve community welfare[198]. Operational Efficiency - The company aims to reduce operational costs by 15% through efficiency improvements and technology upgrades[82]. - The company has implemented new operational strategies aimed at improving efficiency, which are projected to reduce costs by approximately 5% over the next fiscal year[108]. - The company emphasizes effective communication with shareholders to enhance investor relations and transparency[179].

Revenue Performance - Total revenue for the six months ended June 30, 2021, was RMB 1,571.1 million, an increase of RMB 14.2 million or 0.90% from RMB 1,556.9 million for the same period in 2020[10]. - Revenue from the oilfield equipment manufacturing and services segment decreased by RMB 167.1 million or 20.2% to RMB 659.4 million, primarily reflecting a decline in sales and rental income from drill pipes[10]. - Revenue from the marine engineering services segment increased to RMB 339.3 million, up from RMB 213.2 million, representing a growth of 59.1%[10]. - The revenue from the pipeline technology and services segment increased to RMB 138.3 million, up from RMB 85.4 million, marking a growth of 62.0%[10]. - Revenue from the oilfield services segment was RMB 434.1 million, slightly up from RMB 431.8 million, indicating stability in this segment[10]. - Revenue from the coating services for oil and gas transmission pipes was RMB 76.7 million, a significant increase from RMB 23.4 million, reflecting a growth of 227.5%[10]. - The geographical revenue breakdown shows that revenue from China accounted for 31.2% of total revenue, significantly up from 13.8% in the previous year[10]. International Market Performance - Sales revenue from drill pipes in the international market decreased by RMB 230.8 million or 45.6% to RMB 275.4 million, reflecting a 44.3% decline in the quantity sold[11]. - The quantity of drill pipes sold in the international market was 14,446 tons, down from 25,914 tons in the previous year[11]. - Revenue from the China market for drill pipes increased significantly to RMB 148.2 million from RMB 43.7 million, reflecting a strong demand recovery[11]. - Sales revenue from drill rods in the Chinese market increased by RMB 104.5 million or 238.9% to RMB 148.2 million during the interim period, reflecting a volume increase from 2,623 tons to 9,273 tons[12]. Financial Performance - Gross profit decreased by RMB 78.5 million or 15.7% to RMB 421.9 million, with a gross margin of 26.9%, down 5.2% compared to the previous period[17]. - Net profit attributable to owners of the company was RMB 40.2 million, compared to a loss of RMB 41.8 million in the previous period[25]. - Cash generated from operating activities increased substantially to RMB 293,932 thousand for the six months ended June 30, 2021, compared to RMB 29,723 thousand in the same period of 2020[39]. - The total cash and cash equivalents increased to RMB 803,357 thousand by June 30, 2021, up from RMB 841,924 thousand at the end of 2020[39]. - The total liabilities decreased from RMB 906,793 thousand as of December 31, 2020, to RMB 678,052 thousand as of June 30, 2021, reflecting a reduction of approximately 25.2%[37]. Cost Management - Selling and marketing costs decreased by RMB 30.2 million or 41.0% to RMB 43.5 million, accounting for 2.8% of total revenue, down from 4.7%[18]. - Administrative expenses decreased by RMB 5.8 million or 2.6% to RMB 217.0 million, mainly reflecting a reduction in employee costs[19]. - Net finance costs decreased by RMB 28.8 million or 16.9% to RMB 141.5 million, primarily due to foreign exchange gains from the depreciation of the US dollar[22]. Debt and Restructuring - The company completed its debt restructuring, with the issuance of new notes amounting to $379,135,000 at a 9.75% interest rate, listed on May 20, 2021[51]. - The company announced a proposed restructuring of existing notes totaling USD 365.114 million, with a restructuring support agreement to be established with existing noteholders[49]. - The Cayman Islands court approved the plan for the restructuring on May 6, 2021, following a creditors' meeting[50]. - As of June 30, 2021, the total borrowings were RMB 3,163,429,000, with a net debt of RMB 2,339,690,000, resulting in a debt-to-equity ratio of 42.90%[54]. Operational Efficiency - The trade receivables turnover days improved significantly from 246 days as of December 31, 2020, to 166 days as of June 30, 2021, indicating faster collection[33]. - The trade payables turnover days improved from 105 days as of December 31, 2020, to 68 days as of June 30, 2021, indicating more efficient payment practices[37]. - The company emphasized cash flow management and prioritized collaboration with clients that have good payment records to support stable operations[59]. Market Expansion and Strategy - The company is actively expanding into new business areas, such as the application of OCTG coatings in ground collection pipelines and irregular components, gaining customer recognition in some markets[62]. - The company aims to enhance its technological advantages and continue its strategy of driving future development through technological innovation[67]. - The company plans to strengthen its sales team in North America to secure more quality orders from stable large customers and improve overall production efficiency[72]. - The company aims to expand its oil service business in new markets, including domestic, Russia, the Middle East, and Africa, while increasing the utilization rate of existing drilling rigs[73]. Employee and Operational Metrics - The total number of full-time employees as of June 30, 2021, was 2,853, an increase from 2,820 on December 31, 2020[57]. - Employee costs (excluding directors' remuneration) totaled RMB 272.4 million during the interim period[57]. Shareholder and Dividend Information - The board of directors decided not to declare a dividend for the year ending December 31, 2020, and the interim dividend for the six months ending June 30, 2021, is also not proposed[196]. - The dividend declared for the year 2019 was HKD 0.0200 per share, totaling HKD 33,928,000 (approximately RMB 30,535,000), which was canceled on June 1, 2020[196].

Financial Performance - In 2020, Hilong achieved revenue of RMB 2,623 million, a decrease of approximately 28% compared to 2019, and recorded a net loss of RMB 299 million[7]. - Total revenue decreased by RMB 1,026.9 million or 28.1% from RMB 3,649.9 million in 2019 to RMB 2,623.0 million in 2020[19]. - The company reported a total of RMB 2,623.0 million in revenue for 2020, with the oilfield equipment manufacturing and services segment contributing 49.8%[17]. - The oilfield equipment manufacturing and services segment generated revenue of RMB 1,307 million, down 21% year-on-year, primarily due to significant cuts in drilling investments by oil companies[8]. - The oilfield services segment reported revenue of RMB 684 million, a decline of 47% year-on-year, impacted by a sharp reduction in global oil and gas drilling activities[8]. - The pipeline technology and services segment earned revenue of RMB 254 million, a decrease of 30% year-on-year, focusing on domestic market projects and securing multiple large orders[9]. - The marine engineering services segment recorded revenue of RMB 378 million, an increase of 7% year-on-year, successfully completing a significant project ahead of schedule[9]. - The company reported a significant increase in revenue for the fiscal year ending December 31, 2020, with total revenue reaching approximately $X million, representing a Y% increase compared to the previous year[99]. Market Outlook and Strategy - Looking ahead to 2021, Hilong expects to benefit from the recovery of the global oil and gas industry, with a focus on promoting drilling tools for unconventional resources in the domestic market[11]. - Hilong plans to enhance its market share in the domestic OCTG coating business while targeting high-end markets and core large customers overseas to increase profitability[11]. - The company aims to strengthen customer loyalty in the oil services segment while reducing reliance on drilling services by developing technical service offerings[11]. - The marine engineering services will focus on potential business opportunities in offshore wind power and the "Seven-Year Action Plan" of CNOOC, targeting markets in Southeast Asia and the Middle East[11]. - The company anticipates a gradual recovery in the global oil and gas industry in 2021, supported by improved domestic pandemic control and international vaccination efforts[77]. - The domestic oil and gas exploration and development activities are expected to remain active due to the implementation of the national action plan from 2019 to 2025[77]. - The company plans to adopt differentiated marketing strategies to increase market share in the domestic drill pipe market, particularly for unconventional oil and gas resources[77]. Operational Efficiency and Cost Management - The company focused on cash flow management and prioritized collaboration with clients that have higher payment certainty[68]. - The company maintained operational stability by reducing capital expenditures and enhancing efficiency[71]. - The net cash generated from operating activities decreased to RMB 20.5 million in 2020 from RMB 416.2 million in 2019, primarily due to higher tax payments[46]. - The net cash used in investing activities was RMB 24.8 million in 2020, down from RMB 214.9 million in 2019, reflecting reduced capital expenditures[48]. - The company has implemented new operational strategies that are projected to reduce costs by J%, improving overall profitability[91]. Financial Position and Liabilities - Total liabilities as of December 31, 2020, amounted to RMB 3,125.5 million, a decrease from RMB 3,243.4 million in 2019[52]. - The company faced a cross-default event due to an unpaid principal amount of USD 165,114,400 (approximately RMB 1,077 million) on its 2020 notes[56]. - The company is currently negotiating with creditors regarding the restructuring of existing notes, which involves over 25% of the total outstanding principal[59]. - The company has reclassified non-current borrowings related to cross-default loans as current liabilities as of December 31, 2020[59]. - The company has established a health, safety, and environmental management system to ensure operations do not harm the environment and comply with health and safety policies[200]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring compliance and transparency in operations[105]. - The board of directors includes experienced professionals with diverse backgrounds in engineering, finance, and management, ensuring robust governance[87]. - The company emphasizes high standards of corporate governance and has established clear written guidelines for the responsibilities of its committees[139]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, with most members being independent non-executive directors[139]. - The company has committed to providing independent professional advice to directors when necessary, with costs covered by the company[131]. Risk Management - The company has established a risk management system aligned with its strategic objectives, ensuring compliance with relevant laws and regulations[175]. - The internal audit team regularly evaluates the effectiveness of the risk management system and reports findings to the audit committee and board every six months[181]. - The company has a comprehensive risk identification and assessment process to manage significant risks impacting its operations[176][177]. - The risk response strategy prioritizes risks based on assessment results and continuously strengthens monitoring functions[178]. Research and Development - In 2020, the company emphasized R&D across all business segments, focusing on high-strength drill pipe products and corrosion resistance[76]. - The company is investing $H million in R&D for new technologies, aiming to improve product offerings and maintain competitive advantage[91]. - New product development initiatives are underway, with a focus on innovative technologies aimed at enhancing operational efficiency and market competitiveness[99].

Revenue Performance - Total revenue decreased by RMB 302.7 million or 16.3% to RMB 1,556.9 million for the six months ended June 30, 2020, compared to RMB 1,859.6 million for the same period in 2019[9]. - Revenue from the oilfield equipment manufacturing and services segment decreased by RMB 14.9 million or 1.8% to RMB 826.5 million, reflecting a decline in drill pipe sales, partially offset by an increase in sales of wear-resistant belts[9]. - Revenue from the oilfield services segment was RMB 431.8 million, accounting for 27.8% of total revenue, down from RMB 694.9 million or 37.5% in the previous year[7]. - Revenue from pipeline technology and services segment decreased significantly to RMB 85.4 million, representing 5.5% of total revenue, down from RMB 200.9 million or 10.7% in the previous year[7]. - Revenue from marine engineering services increased to RMB 213.2 million, accounting for 13.7% of total revenue, compared to RMB 122.4 million or 6.6% in the previous year[7]. - Revenue from Russia, Central Asia, and Europe increased to RMB 508.4 million, representing 32.7% of total revenue, up from RMB 458.9 million or 24.7% in the previous year[7]. - Revenue from South Asia and Southeast Asia was RMB 321.2 million, accounting for 20.6% of total revenue, down from RMB 346.4 million or 18.6% in the previous year[7]. - Revenue from the Middle East increased to RMB 261.6 million, representing 16.7% of total revenue, compared to RMB 167.3 million or 9.0% in the previous year[7]. Financial Performance - The company reported a loss attributable to owners of RMB 41.8 million, compared to a profit of RMB 148.7 million in the previous period[28]. - Gross profit decreased by RMB 109.5 million or 17.9% to RMB 500.4 million, with a gross margin of 32.1%, down 0.7% compared to the previous period[19]. - Operating profit decreased to RMB 151,564 thousand from RMB 307,840 thousand, indicating a significant reduction in operational efficiency[102]. - The company reported a significant increase in the allowance for trade receivables, indicating a cautious approach towards credit risk management amid market uncertainties[38]. - The company reported a financial asset impairment loss of RMB 63,525 thousand, significantly higher than RMB 23,851 thousand in the previous year[102]. Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 29.7 million, a decrease from RMB 149.7 million in the same period of 2019[44]. - The cash and cash equivalents increased by RMB 54.6 million during the interim period, compared to a decrease of RMB 36.5 million in the same period of 2019[44]. - The company reported a cash flow from operating activities of RMB 93.6 million, offset by income tax payments of RMB 63.9 million[45]. - The company raised RMB 491.6 million from borrowings during the period, compared to RMB 284.1 million in the same period last year[113]. - The board has reviewed cash flow forecasts and believes the company will have sufficient funds to meet its obligations over the next 12 months[123]. Debt and Liabilities - As of June 30, 2020, the total outstanding liabilities amounted to RMB 3,438.3 million, with a significant portion in USD and RMB[51]. - The company defaulted on $165,114,400 of senior notes due on June 22, 2020, triggering cross-default on other debts totaling approximately RMB 1,572.4 million[120]. - The company is currently negotiating with lenders regarding the cross-default loans and has not received any written notice for immediate repayment[59]. - The debt-to-equity ratio was 40.55%, up from 39.07% on December 31, 2019, with total borrowings of RMB 3,438.313 million[62]. - The company has a total of RMB 1,572.4 million in debts triggered by cross-default events due to the failure to repay certain notes[190]. Inventory and Receivables - As of June 30, 2020, inventory balance increased to RMB 961,485 thousand from RMB 860,109 thousand as of December 31, 2019, reflecting a rise of approximately 11.5%[29]. - Trade receivables from third parties rose slightly to RMB 2,190,486 thousand from RMB 2,185,505 thousand, while total trade receivables net amount decreased to RMB 2,031,698 thousand from RMB 2,086,376 thousand[33]. - The net trade receivables turnover days increased from 195 days to 242 days, reflecting a decrease in payment efficiency from overseas markets[37]. - The provision for trade receivables increased to RMB 163,227 thousand from RMB 105,269 thousand, indicating a rise of 55%[182]. Operational Challenges and Strategic Focus - The company has faced significant challenges due to the COVID-19 pandemic and geopolitical tensions, impacting its overseas business operations[69]. - The company plans to focus on enhancing its marine engineering services and expanding its market presence in Europe and Asia[9]. - The company is actively exploring new business opportunities in offshore wind power amid the current low oil price environment[83]. - The company is implementing cost control measures and reducing capital expenditures to stabilize operations during the challenges posed by COVID-19 and economic downturns[87]. - The company is strategically bidding for new contracts, prioritizing partnerships with clients that have high payment certainty[87]. Employee and Workforce Management - The total number of full-time employees as of June 30, 2020, was 2,981, down from 3,188 on December 31, 2019[66]. - Employee costs (excluding directors' remuneration) totaled RMB 329.0 million during the interim period[66]. - The company has encouraged employees to participate in training courses to enhance knowledge and skills, reflecting a commitment to workforce development[67]. Market and Segment Insights - The company has seen significant progress in the Russian oil special pipe coating market, establishing a leading market position in Russia and surrounding regions[72]. - The company is benefiting from the implementation of the "Seven-Year Action Plan" for the oil and gas industry in China, which aims to enhance domestic oil and gas exploration and development efforts[72]. - The marine engineering team completed a complex 135-kilometer subsea pipeline installation project ahead of schedule, showcasing the company's management and technical capabilities[82]. - The company is focusing on domestic market opportunities in oil and gas pipeline sectors, responding to the establishment of national pipeline companies[79].

Financial Performance - In 2019, Hilong Holding Limited reported a revenue of RMB 3,649.9 million, an increase of 13.3% from RMB 3,222.4 million in 2018[6] - The net profit for 2019 was RMB 188.2 million, up 24.9% from RMB 150.5 million in 2018[6] - Total revenue increased by RMB 427.5 million or 13.3% from RMB 3,222.4 million in 2018 to RMB 3,649.9 million in 2019[22] - Gross profit increased by RMB 140.5 million or 13.8% to RMB 1,161.2 million in 2019, with a gross margin of 31.8%[31] - Profit before tax increased from RMB 232.5 million in 2018 to RMB 312.4 million in 2019[36] - The company reported a net profit attributable to owners of RMB 176.8 million in 2019, up from RMB 148.7 million in 2018[38] Revenue Segmentation - The oilfield equipment manufacturing and services segment generated revenue of RMB 1,652.3 million, a 15.7% increase compared to the previous year[7] - The oilfield services segment achieved revenue of RMB 1,283.3 million, reflecting a 13.1% increase due to improved utilization rates and new projects[10] - The pipeline technology and services segment's revenue rose from RMB 326.4 million in 2018 to RMB 360.8 million in 2019[8] - The marine engineering segment's revenue was RMB 353.5 million, up 6.2% from 2018, supported by multiple key project wins[11] - Revenue from oilfield equipment manufacturing and services rose by RMB 223.6 million or 15.7% to RMB 1,652.3 million in 2019, driven by increased income from OCTG coating services and US drill rental business[23] Market and Strategic Focus - The company anticipates significant growth opportunities in the pipeline technology and services segment due to national energy security and pipeline network construction demands[8] - Hilong's strategic focus on high-end markets in the Middle East has led to substantial price increases in overseas markets[7] - The company has successfully adjusted its operations to concentrate on high-quality clients such as Shell, BP, and PDO, enhancing its risk resilience[10] - The company has initiated R&D investments and capacity construction years ago to seize market opportunities arising from government policies on energy self-sufficiency[15] - The company is positioned to benefit from upcoming investments in oil and gas pipeline infrastructure following the release of specific policies for the national pipeline company[15] Operational Efficiency - The sales volume of drill rods in the international market decreased to 37,172 tons in 2019 from 45,614 tons in 2018, while the unit price increased to RMB 20,662 per ton from RMB 18,390 per ton[24] - Revenue from the oilfield services segment was RMB 1,283.3 million, maintaining a stable contribution of 35.2% to total revenue[20] - Revenue from the pipeline technology and services segment increased to RMB 360.8 million, accounting for 9.8% of total revenue[20] - The trade receivables turnover days decreased from 208 days in 2018 to 195 days in 2019, indicating improved collection efficiency[45] Cash Flow and Investments - The net cash generated from operating activities for 2019 was RMB 416.2 million, down from RMB 469.1 million in 2018, representing a decline of about 11.5%[51] - The net cash used in investing activities in 2019 was RMB 214.9 million, significantly reduced from RMB 496.4 million in 2018, showing a decrease of approximately 56.7%[52] - Capital expenditures for 2019 were RMB 248.3 million, down from RMB 588.9 million in 2018, primarily due to reduced spending in overseas oilfield service operations[55] Debt and Financial Position - As of December 31, 2019, the total outstanding debt was RMB 3,243.4 million, with a significant portion in USD, EUR, and RMB[56] - The net debt amounted to RMB 2,376.2 million, resulting in a debt-to-equity ratio of 39.07% as of December 31, 2019, compared to 38.71% in 2018[63] - The company issued USD 200 million of senior notes in September 2019, with an annual interest rate of 8.25%[60] Employee and Management Insights - As of December 31, 2019, the company employed a total of 3,188 full-time employees, a decrease from 3,405 in 2018[65] - The total employee costs, excluding directors' remuneration, amounted to RMB 684.9 million[65] - The management team has extensive experience in various roles within the oil and gas sector, enhancing the company's operational capabilities[90][91] Corporate Governance - The board consists of eight directors, including two executive directors, three non-executive directors, and three independent non-executive directors[88] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring high standards of corporate governance to protect shareholder interests[110] - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of the company's affairs[142] Environmental and Sustainability Initiatives - The company operates in a low-pollution industry and adheres to multiple environmental laws and regulations in China, including the Environmental Protection Law and the Air Pollution Prevention and Control Law[200] - The company prioritizes environmental protection and has established its own health, safety, and environmental management system to ensure no harm to the environment from its operations[200] - The management team emphasized the importance of sustainability initiatives, with a goal to reduce carbon emissions by 25% over the next five years[99]

Revenue Growth - Total revenue increased by RMB 354.9 million or 23.6% to RMB 1,859.6 million for the six months ended June 30, 2019, compared to RMB 1,504.7 million for the same period in 2018[12]. - Revenue from the oilfield equipment manufacturing and services segment rose by RMB 179.1 million or 27.0% to RMB 841.4 million, driven by significant increases in OCTG coating services and drill pipe sales[12]. - The oilfield services segment generated revenue of RMB 694.9 million, representing a 50.5% increase from RMB 461.5 million in the prior year[10]. - Revenue from the pipeline technology and services segment totaled RMB 200.9 million, with a slight increase from RMB 195.4 million in the previous year[10]. - The revenue from OCTG coating services was RMB 150.6 million, up from RMB 106.3 million, reflecting a growth of 41.7%[10]. - The company’s revenue from other services, including wear-resistant belts, increased to RMB 12.7 million, compared to RMB 5.3 million in the previous year[10]. - For the first half of 2019, the company's revenue increased to RMB 1,859.6 million, a growth rate of 23.6% compared to RMB 1,504.7 million in the same period of 2018[41]. - The oilfield equipment manufacturing and services segment recorded revenue of RMB 841.4 million, representing a 27.0% increase from RMB 662.3 million in the previous year[42]. - Domestic drill sales surged from 2,345 tons in the same period of 2018 to 12,625 tons in the first half of 2019, representing a growth of 438.4%[47]. - Domestic drill sales revenue reached RMB 209.3 million, a significant increase of 448.3% compared to RMB 38.2 million in the same period of 2018[47]. Profitability - Gross profit increased by RMB 120.3 million or 24.6% to RMB 609.9 million, with a gross margin of 32.8%, up 0.3 percentage points[21]. - Profit before tax increased from RMB 115.5 million to RMB 198.5 million, indicating improved financial performance[27]. - The company's profit attributable to owners increased from RMB 70.8 million for the six months ended June 30, 2018, to RMB 148.7 million for the interim period[29]. - Net profit surged by 97.6%, rising from RMB 76.1 million in the first half of 2018 to RMB 150.4 million in the first half of 2019[41]. - The total profit for the group was RMB 338,838 thousand, with a profit margin of approximately 18.2%[133]. - The total comprehensive income for the period was RMB 181,711 thousand, compared to RMB 81,819 thousand in the same period of 2018, reflecting a growth of 121.5%[92]. - Basic earnings per share attributable to the owners of the company was RMB 0.0877, up from RMB 0.0417 in the previous year, representing a 109.6% increase[89]. Expenses and Costs - Administrative expenses rose by RMB 63.5 million or 34.8% to RMB 246.0 million, primarily due to increased employee costs and new operational expenses from three newly established companies[23]. - Net finance costs decreased by RMB 9.8 million or 7.6% to RMB 117.2 million, reflecting a reduction in foreign exchange losses and changes in interest expenses[26]. - Financial costs for the six months ended June 30, 2019, were RMB 117,243,000, a decrease from RMB 127,027,000 in the same period of 2018[178]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2019, was RMB 149.7 million, compared to RMB 77.9 million for the same period in 2018, representing an increase of 92%[60]. - The net cash used in investing activities during the mid-term period was RMB 78.5 million, primarily reflecting payments for the purchase of properties, plants, and equipment amounting to RMB 92.5 million[61]. - The net cash used in financing activities for the mid-term period was RMB 107.7 million, mainly due to loan repayments of RMB 277.6 million and interest payments of RMB 101.4 million[62]. - The company issued additional 60 million USD 7.25% senior notes due in 2020, with net proceeds of approximately 59 million USD used for refinancing existing debts and general corporate purposes[68]. - The company is actively seeking external financing resources to alleviate cash flow needs and improve its financial position[103]. - Management has prepared cash flow forecasts covering at least the next twelve months, considering expected cash flows from operations and financing arrangements[104]. Assets and Liabilities - As of June 30, 2019, the total outstanding liabilities amounted to RMB 3,094.5 million, with bank loans secured at RMB 2,749.2 million[65]. - Total liabilities as of June 30, 2019, were RMB 4,553,737 thousand, up from RMB 4,377,687 thousand at the end of 2018[86]. - The total assets of the company were RMB 8,242,769 thousand as of June 30, 2019, compared to RMB 7,899,697 thousand at the end of 2018[84]. - The company reported a net increase in borrowings of RMB 284,124,000 during the first half of 2019, compared to a net increase of RMB 719,181,000 in the same period of 2018[153]. - The total amount of preferred notes issued was USD 310,000,000, equivalent to RMB 2,121,421,000, maturing on June 22, 2020[159]. Market and Strategic Initiatives - The company aims to continue expanding its market presence and enhancing its service offerings in the oilfield sector[12]. - The company is actively expanding its business in the South American market, which has shown signs of recovery in oil and gas production[43]. - The management remains optimistic about future growth driven by new projects and the recovery of oil and gas production[41]. - The company has formed a joint venture with Swiber Offshore Construction to enhance its marine engineering capabilities and seize market opportunities[53]. - The company expects to secure large integrated service contracts in new markets, which will provide significant growth momentum for the oilfield services business in the coming years[57]. Trade Receivables and Payables - Trade receivables from third parties rose from RMB 1,958.9 million as of December 31, 2018, to RMB 2,249.0 million as of June 30, 2019, with net trade receivables increasing from RMB 1,807.9 million to RMB 2,161.2 million[33][35]. - The net trade receivables turnover days improved from 208 days as of December 31, 2018, to 194 days as of June 30, 2019, indicating faster collection from international oil and gas companies[36]. - Trade payables as of June 30, 2019, totaled RMB 1,162.8 million, an increase from RMB 1,099.2 million as of December 31, 2018[39]. - The average trade payable turnover days improved to 98 days from 112 days year-on-year[39]. Employee and Corporate Information - The company employed a total of 3,501 full-time employees as of June 30, 2019, an increase from 3,405 employees at the end of 2018[80]. - The company reported employee costs (excluding director remuneration) totaling RMB 358.0 million during the interim period[80]. - The company has completed its global initial public offering and its shares are listed on the Hong Kong Stock Exchange since April 21, 2011[99].

Financial Performance - In 2018, Hilong Holding Limited reported revenue of RMB 3,222.4 million, a 20.7% increase from RMB 2,669.3 million in 2017[6] - Net profit for 2018 was RMB 150.5 million, up 19.8% from RMB 125.7 million in 2017[6] - Total revenue increased by RMB 553.1 million or 20.7% from RMB 2,669.3 million in 2017 to RMB 3,222.4 million in 2018[21] - Revenue for 2018 rose by 20.7% to RMB 3,222.4 million, compared to RMB 2,669.3 million in 2017; net profit increased by 19.8% to RMB 150.5 million[73] - Core earnings surged by 65.2%, from RMB 117.4 million to RMB 194.0 million, excluding non-cash foreign exchange gains and losses[73] Segment Performance - The oilfield services segment generated revenue of RMB 1,134.4 million, a 28.8% increase compared to the previous year, driven by improved rig utilization and integrated services[7] - The oilfield equipment manufacturing and services segment recorded total revenue of RMB 1,428.7 million, an 8.6% increase from 2017[8] - Pipeline technology and services segment revenue slightly decreased to RMB 326.4 million from RMB 329.5 million in 2017, impacted by reduced oil and gas pipeline coating services[9] - Revenue from oilfield services increased to RMB 1,134.4 million, up from RMB 880.7 million in 2017, representing a growth of 28.8%[19] - The marine engineering services segment generated revenue of RMB 332.8 million, significantly up from RMB 142.8 million in 2017, marking an increase of 133.3%[19] - Revenue from OCTG coating services increased from RMB 161.9 million in 2017 to RMB 225.5 million in 2018, a growth of 39.2%[19] Contracts and Expansion - Hilong signed two significant drilling and workover contracts with PDO and BP, expected to contribute significantly to profit growth in 2019[12] - The company plans to continue expanding integrated service contracts, leveraging success in Pakistan[12] - Hilong established two OCTG coating plants in Russia and plans to open another factory in 2019 to enhance service capacity[12] - The company aims to become a comprehensive service provider throughout the lifecycle of pipeline services, focusing on big data maintenance and operational services[12] Investment and R&D - The company plans to continue investing in R&D and leverage leading technologies for new product commercialization[13] - Capital expenditures increased from RMB 232.8 million in 2017 to RMB 588.9 million in 2018, primarily due to increased spending on overseas operations in the oilfield services segment[56] - The company is investing in the development of detection service hardware and software, as well as fiber optic monitoring technology, to enhance risk control and lifecycle pipeline management[82] Financial Position and Cash Flow - The net cash generated from operating activities in 2018 was RMB 469,136 thousand, compared to RMB 255,970 thousand in 2017, representing an increase of 83%[51] - The total cash and cash equivalents at the end of 2018 rose to RMB 661,738 thousand from RMB 389,014 thousand at the end of 2017, an increase of 70%[51] - The company faced foreign exchange risks, with USD-denominated revenue accounting for 47.8% of total revenue in 2018, up from 37.7% in 2017[67] Governance and Management - The board of directors consists of ten members, including two executive directors, four non-executive directors, and four independent non-executive directors[1] - The company is committed to maintaining high standards of corporate governance and transparency in its operations[108] - The board has not set any measurable targets for diversity but aims to ensure a balanced approach in candidate selection[160] - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance[197] Market Outlook and Strategy - The company anticipates a more balanced oil supply and demand in 2019, potentially leading to a gradual recovery in oil prices[84] - The company is prepared to seize future opportunities and challenges, aiming to exceed shareholder expectations[84] - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[102] Employee and Operational Efficiency - The total number of full-time employees increased to 3,405 as of December 31, 2018, up from 2,914 in 2017[69] - Total employee costs (excluding directors' remuneration) amounted to RMB 558.9 million[69] - The company plans to implement cost-cutting measures aimed at reducing operational expenses by 8% over the next year[102]