Disclaimer 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, u ...

2019年全年业绩路演 2023 Interim Results Presentation Disclaimer 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 "Compan ...

Financial Performance - In 2023, the company achieved total revenue of RMB 4,251.5 million and a net profit of RMB 171.5 million[16] - Revenue increased by 38.4% from 2022 to 2023[12, 16] - Net profit increased by 55.3% from 2022 to 2023[12, 16] - Gross profit increased from RMB 685 million in 2022 to RMB 915 million in 2023[16, 32] Segment Performance - Oilfield Equipment Manufacturing & Services revenue increased by 37.5%[13, 20] - Oilfield Services revenue increased by 10.5%[14, 25] - Offshore Engineering Services revenue increased significantly by 311.9%[15, 27] Business Development & Strategy - The company is focusing on high-tech specialized integrated EPCIC turkey service business model in Offshore Engineering Services[15] - The company is strengthening R&D and digital transformation across all segments[15, 20, 25, 27] - The company is focusing on US/Canada and Middle East markets for Oilfield Equipment Manufacturing & Services[45] - The company aims to further develop business model of existing drilling and workover service, technical service and oilfield trade service, elevate Integrated turnkey project service[46]

2024 Interim Results Presentation Disclaimer 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 eve ...

Financial Performance - In 2024, the company achieved a revenue of approximately RMB 4668 million, a 9.8% increase compared to 2023[9] - Net profit was about RMB 30 million, an 82.4% decrease compared to 2023[9] - Gross profit increased by 22.5% from RMB 915 million to RMB 1,122 million[11] - Revenue from oilfield equipment manufacturing & services accounted for 45.6% of total revenue in 2024[26] - Oilfield services contributed 27.5% to the total revenue in 2024[26] - Offshore engineering services accounted for 20.6% of the total revenue in 2024, with a revenue increase of 105.9%[9, 26] Business Segments - Oilfield equipment manufacturing & services segment revenue was RMB 1,133 million[15] - Oilfield services segment revenue was RMB 923 million, with a 35.2% increase[9, 19] - Offshore engineering services segment revenue increased to RMB 964 million[22] Business Development & Technology - The company is transforming into high-tech specialized integrated EPCIC turkey offshore services[9] - The company is focusing on high-end markets and customers with higher technology drilling tools[16] - The company is continuously developing High-tech Integrated Turnkey Project business model[9]

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]