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 ...

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].