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]