Group 1 - The company expects a significant reduction in net loss of over 70% for the six months ending June 30, 2025, compared to a net loss of RMB 69.8 million for the same period ending June 30, 2024 [1] - The operational subsidiary, Dali Pu Special Pipe Co., Ltd., has successfully adjusted its product structure, leading to a turnaround in its operating results [1] - The primary reasons for the company's losses in the first half of 2025 include upfront investments in the Saudi project and intense competition in the domestic energy equipment industry [1] Group 2 - The Saudi project is expected to have a very positive long-term impact on the company's earnings, although it has affected current earnings [1] - The domestic energy equipment industry is undergoing transformation and is still in a phase of cyclical adjustment, resulting in limited overall profit margins [1] - The company is optimistic about future competitiveness due to the gradual production ramp-up of a new smart production line in Cangzhou, China, and ongoing optimization of product and market structures [1]

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。 – 1 – Dalipal Holdings Limited 達力普控股有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：1921） 盈利警告 預期虧損同比大幅收窄 本公告由達力普控股有限公司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」）根 據 香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09(2)(a)條及香港法例 第571章證券及期貨條例第XIVA部之內幕消息條文（定 義 見 上 市 規 則）而 作 出。 本公司董事（「董 事」）會（「董事會」）謹此知會本公司股東（「股 東」）及 潛 在 投 資 者， 根據對本集團截至2025年6月30日 止（「報告期內」）六個月的未經審核綜合管理賬 目 的 初 步 評 估 及 董 事 會 目 前 可 得 的 資 料，預 期 本 集 團 於 報 ...

Group 1: Market Reactions - The announcement of a potential ceasefire between Israel and Iran led to a significant drop in oil prices, with WTI and Brent crude oil falling nearly 9% and over 7% respectively [1] - In the Asia-Pacific market, WTI crude futures initially dropped over 5%, and as of the report, both WTI and ICE Brent crude were down over 2% [1] - Gold prices also saw a decline of 0.3% amid the easing geopolitical tensions [1] Group 2: Stock Performance - Hong Kong oil and gas stocks experienced sharp declines, with Baikin Oil Services plunging nearly 30%, Shandong Molong down over 18%, and Sinopec Oilfield Services falling over 14% [2][3] - In the A-share market, oil and gas service stocks also faced significant losses, with companies like Beiken Energy and Zhun Oil shares hitting the daily limit down [4] Group 3: Geopolitical Context - Trump's unilateral announcement of a ceasefire was met with skepticism, as both Israel and Iran did not confirm the agreement, with Iran's foreign minister stating no ceasefire "agreement" had been reached [6][8] - The ongoing conflict continued despite the announcement, with reports of missile attacks from Iran towards Israel [6] - The situation in the Strait of Hormuz, a critical oil shipping route, was highlighted, with previous threats from Iran to close it, which could have led to oil prices soaring to $120-$130 per barrel [11]

港股油气设备股走强，山东墨龙(00568.HK)大涨50%，中石化油服(01033.HK)涨10%，达力普控股 (01921.HK)涨超7%。 ...

Group 1 - Hong Kong oil and gas equipment stocks experienced significant gains in the afternoon trading session [1] - Shandong Molong (00568.HK) surged over 160% at one point and is currently up 120% [1] - Sinopec Oilfield Service (01033.HK) rose nearly 40%, while Daqin Holdings (01921.HK) increased over 14% [1] - CNOOC Services (02883.HK) saw an increase of over 6% [1]

Group 1 - The company has successfully tested two new intelligent production lines for oil pipes at its manufacturing base in Cangzhou, Hebei, which will soon commence operations [1] - The production lines integrate advanced systems such as IoT and real-time information monitoring, enabling full-process intelligent manufacturing and digital management [1] - The product specifications for oil pipes will cover all needs, catering to diverse domestic and international market demands [1] Group 2 - Production efficiency is expected to increase by 35%, while labor configuration can be reduced by 30% [1] - The company aims to significantly enhance its production capacity for high-end oil pipe products, transitioning towards a high-end and customized product structure [1] - The board views the new production lines as a crucial milestone for technological iteration and capacity upgrade, anticipating a positive impact on medium to long-term earnings [1]

Share Incentive Plan - A total of 3,539,589 shares were vested to five highest-paid employees and other employees under the share incentive plan adopted on May 31, 2022[3] - The weighted average closing price per share before the vesting date was HKD 5.00[3]

Financial Performance - The company reported a revenue of $150 million for the fiscal year 2024, representing a 20% increase compared to the previous year[2]. - The Group recorded total revenue of RMB3,292.3 million for the Year, a decrease of 14.5% from RMB3,850.0 million in 2023[90]. - Revenue from oil and gas pipes decreased to RMB2,196.4 million, down 10.7% from RMB2,459.9 million in 2023[92]. - Revenue from new energy pipes and special seamless steel pipes fell to RMB1,095.9 million, representing a decrease of 17.7% from RMB1,331.9 million in 2023[92]. - The Group recorded a loss of RMB 77.1 million for the year, a decrease in profit of RMB 211.6 million compared to a profit of RMB 134.5 million in 2023[107][113]. - The Group recorded an adjusted net loss of RMB 56.8 million for 2024, a significant decline from an adjusted net profit of RMB 141.9 million in 2023, resulting in an adjusted net profit margin of -1.7% compared to 3.7% in the previous year[118]. - Gross profit fell to RMB 263.4 million, a decrease of RMB 264.8 million from RMB 528.2 million in 2023, resulting in a gross profit margin of 8.0%, down 5.7 percentage points[98][101]. Market Expansion and Strategy - Market expansion efforts have led to a 25% increase in sales in the Asia-Pacific region[2]. - In 2024, Dalipal launched its Middle East development strategy, establishing a presence in Saudi Arabia to access high-quality markets across the Middle East, Africa, and the Americas[26]. - The company is exploring potential acquisitions to enhance its market position, with a budget of $10 million allocated for this purpose[2]. - The company aims to expand its market presence and enhance product offerings through strategic management and R&D initiatives[44]. - The Middle East is identified as a strategic development area, leveraging its oil production and reserves for market expansion[82]. Research and Development - The company is investing $5 million in R&D for new technologies aimed at enhancing product efficiency[2]. - The Group's business model focuses on "production determined by sales," emphasizing technology accumulation and self-R&D in collaboration with well-known domestic universities[64]. - The Group is committed to "adjusting structure, improving efficiency, and reducing costs" to enhance core competitiveness and expand the coverage of non-API specialty pipe products[67]. - The Group's R&D efforts have led to the successful development of high-strength, corrosion-resistant casing products, which are now widely used in domestic shale gas blocks[68]. Sustainability and ESG Initiatives - The board of directors emphasized a commitment to sustainability, with plans to reduce carbon emissions by 30% over the next five years[2]. - The company has an ESG committee established to oversee environmental, social, and governance matters[20]. - The company is committed to improving product performance through technological innovation and digital transformation to meet high-end market needs[79]. - The company has introduced advanced technologies for energy conservation and emission reduction, achieving emissions far below Hebei Province's ultra-low standards[73]. - The Group has maintained compliance with environmental laws and regulations, ensuring sustainable development of its business[164]. Operational Efficiency - The company has implemented cost-cutting measures that are expected to save approximately $2 million annually[2]. - The company plans to enhance on-site management and promote standardized operations to improve cost capabilities[34]. - The introduction of intelligent manufacturing equipment is expected to significantly enhance the Group's core competitiveness, including real-time tracking of production and quality data[69]. - The Group's operational and financial management is overseen by experienced professionals with extensive backgrounds in the industry[54]. Leadership and Governance - The company has a strong board with independent non-executive directors who bring extensive industry experience and expertise in various sectors, including oilfield operations and corporate finance[48]. - The company is focused on enhancing its governance structure through the involvement of experienced directors in key committees such as Audit and Risk Management, Remuneration, and Nomination[49]. - The leadership team includes members with advanced degrees, such as an MBA from Peking University, indicating a strong educational background[42]. - The company is committed to adhering to the highest ethical standards and has complied with all relevant laws and regulations during the year[149]. Challenges and Future Outlook - Looking ahead to 2025, the company anticipates operational pressures due to overlapping economic and industry cycles but remains optimistic about future development opportunities[30]. - The seamless steel pipe industry faced challenges such as intensified homogeneous competition and declining capacity utilization, leading to a shift in focus towards high-value-added and high-tech specialty products[57]. - The management is cautiously optimistic about the overall industry recovery and improvement for 2025 despite ongoing uncertainties[86]. - The company aims to improve product quality, increase variety, and strengthen brand presence in response to market challenges[32].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 3,292.3 million, a decrease of 14.5% compared to RMB 3,850.0 million in 2023[3]. - Gross profit fell to RMB 263.4 million, down 50.1% from RMB 528.2 million, resulting in a gross margin of 8.0% compared to 13.7% in the previous year[3]. - Operating profit plummeted to RMB 0.5 million, a decline of 99.8% from RMB 241.4 million in 2023[3]. - The company reported a net loss of RMB 77.1 million for the year, a significant drop from a profit of RMB 134.5 million in 2023, representing a 157.3% change[3][4]. - Adjusted net loss (non-IFRS measure) was RMB 56.8 million, compared to a profit of RMB 141.9 million in the previous year, marking a 140.0% decrease[3]. - Basic and diluted loss per share was RMB (0.05), compared to earnings of RMB 0.09 per share in 2023, reflecting a 155.6% decline[3]. - The company reported a pre-tax loss of RMB 86,319,000 for 2024, compared to a profit of RMB 152,368,000 in 2023, indicating a significant decline in performance[31]. - The group recorded a net loss of RMB 77.1 million for the year, a decrease of RMB 211.6 million compared to a profit of RMB 134.5 million in 2023[74]. Revenue Breakdown - Revenue from the sale of oil and gas pipes was RMB 2,196,399,000, down 10.7% from RMB 2,459,943,000 in 2023[16]. - Revenue from the sale of new energy pipes and special seamless steel pipes was RMB 1,095,865,000, a decrease of 17.7% from RMB 1,331,897,000 in 2023[16]. - The total external customer revenue for 2024 was RMB 3,292,264, down 14.5% from RMB 3,850,020 in 2023[22]. - The total revenue from the Middle East region decreased significantly to RMB 236,750 in 2024 from RMB 560,066 in 2023[22]. - Domestic sales increased by 1.8% to RMB 2,913.9 million, while overseas sales plummeted by 61.7% to RMB 378.4 million due to global economic downturns and political instability[66]. Assets and Liabilities - Total assets decreased from RMB 2,541.4 million in 2023 to RMB 2,348.7 million in 2024[6]. - Current liabilities reduced from RMB 2,481.9 million in 2023 to RMB 2,046.5 million in 2024[6]. - The company's equity increased from RMB 1,315.0 million in 2023 to RMB 1,461.1 million in 2024[6]. - Trade receivables decreased to RMB 466,922,000 in 2024 from RMB 584,533,000 in 2023, reflecting a reduction of approximately 20%[36]. - The company’s total trade payables increased to RMB 837,921,000 in 2024, up from RMB 724,571,000 in 2023, representing a growth of about 15.6%[41]. - The debt-to-equity ratio increased to 136.9% as of December 31, 2024, up 45.5 percentage points from 91.4% as of December 31, 2023, primarily due to increased borrowing and reduced equity[80]. Operational Highlights - The company has been expanding its customer base and markets while maintaining strong relationships with existing major customers to generate more operating cash flow[13]. - The company is actively developing high-end, specialized products to meet the growing demand in the energy sector, particularly in oil and gas applications[51][52]. - The company aims to enhance its core competitiveness by focusing on "structural adjustment, efficiency improvement, and cost reduction" strategies[53]. - The company has successfully developed and mass-produced high-strength, corrosion-resistant casing products, which are widely used in domestic high-sulfur hydrogen gas fields[54]. - The company has implemented a comprehensive intelligent manufacturing system, enhancing production efficiency and product quality through real-time tracking and automation[54]. Strategic Initiatives - The company has obtained an industrial investment license from the Saudi Arabian Ministry of Investment, marking a significant step in expanding its international market operations[57]. - The company has signed a letter of intent with a wholly-owned subsidiary of Saudi Aramco, SPARK, to establish production facilities in Saudi Arabia[57]. - The company is committed to sustainable development through technological innovation and green production practices[60]. - The company has established a strategic cooperation to build a green supply chain, integrating environmental management into supplier evaluation systems[55]. Employee and Cost Management - Employee costs increased to RMB 252,934 in 2024, up 11.1% from RMB 227,596 in 2023[25]. - Administrative expenses rose by 7.4% to RMB 187.9 million, mainly due to increased labor costs and impairment losses[71]. - Financing costs for 2024 were RMB 86,858, slightly down from RMB 88,994 in 2023[24]. Future Outlook - The management remains cautiously optimistic about the overall industry recovery and the company's strategic execution for 2025[63]. - The company plans to enhance its product strategy by focusing on high-end, corrosion-resistant products and expanding into new markets[61].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 10.88 [6][3][4] Core Insights - The company is set to commence construction of its Middle East production base in September 2025, which is expected to contribute to revenue and profit starting in 2028 [1][3] - The company has a strategic plan to establish a regional headquarters and R&D center in the Middle East, leveraging the region's energy resources and geographical advantages [1][2] - The company's overseas sales have rapidly increased, with over 25% of total sales coming from international markets, primarily in the Middle East and North Africa [1][3] Financial Projections - The company forecasts net profits of RMB -95.49 million, RMB 136 million, RMB 345.2 million, and RMB 733.5 million for the years 2024, 2025, 2026, and 2027 respectively [4][13][14] - Sales revenue is projected to grow from RMB 3.66 billion in 2024 to RMB 9.47 billion by 2027, reflecting a compound annual growth rate of approximately 60% [4][14] - The gross profit margin is expected to improve from 9% in 2024 to 16.5% by 2027 [4][14] Project Details - The first phase of the Middle East project will have a production capacity of 300,000 tons per year, with a total design capacity of 1.1 million tons per year [3][10] - The project is located in the Salman King Energy City (SPARK) in Dammam, Saudi Arabia, which is strategically positioned near the world's largest onshore oil field [2][3] Market Position - The company’s products, including OCTG and hydrogen transport pipes, are expected to meet significant market demand in the Middle East, particularly due to Saudi Arabia's leading position in oil production and its green hydrogen development plans [2][3]