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佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CHU KONG PETROLEUM AND NATURAL GAS STEEL PIPE HOLDINGS LIMITED 珠 江 石 油 天 然 氣 鋼 管 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1938） 截至二零二二年十二月三十一日止年度的全年業績公佈 綜合財務業績 珠江石油天然氣鋼管控股有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈本公司及 其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度的綜合財務報表連同 上一個財政年度的比較數字如下： 綜合損益表 二零二二年 二零二一年 附註 人民幣千元 人民幣千元 收入 5 2,362,015 1,813,370 銷售及服務成本 (1,891,392) (1,617,854) ...

Chu Kong Petroleu m and Natural Gas Steel Pipe Holdings Li mited 珠江石油天然氣鋼管控股有限公司 珠 江 石 油 天 然 氣 鋼 管 控 股 有 限 公 司 INTERI M REP ORT 2022 中 期 報 告 珠江石油天然氣鋼管控股有限公司 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 股份代號 中期報告 目錄 | --- | --- | |--------------------------|-------| | | | | 公司資料 | 2 | | 管理層討論與分析 | 4 | | 其他資料 | 14 | | 中期簡明綜合損益表 | 18 | | 中期簡明綜合全面收入表 | 19 | | 中期簡明綜合財務狀況表 | 20 | | 中期簡明綜合權益變動表 | 22 | | 中期簡明綜合現金流量表 | 24 | | 中期簡明綜合財務報表附註 | 26 | 1 珠江石油天然氣鋼管控股有限公司 中期報告2022 公司資料 | --- | --- | |----------------------------------------- ...

Financial Performance - The company reported revenue of approximately RMB 864,200,000 for the six months ended June 30, 2021, representing an increase of about 135.0% compared to RMB 367,700,000 in the same period of 2020[11]. - The loss attributable to ordinary shareholders was RMB 41,700,000, an improvement from a loss of RMB 223,900,000 in the first half of 2020[11]. - Gross profit for the period was approximately RMB 98,800,000, a 15.4% increase from RMB 85,600,000 in the first half of 2020, with a gross margin of about 11.4%[18]. - Other income and gains amounted to approximately RMB 298,000,000, a substantial increase of about 2,597.2% compared to RMB 11,000,000 in the same period of 2020[21]. - Selling and distribution expenses were approximately RMB 28,500,000, up about 16.2% from RMB 24,500,000 in the first half of 2020[21]. - Administrative expenses increased to approximately RMB 139,900,000, a rise of about 16.0% from RMB 120,600,000 in the same period of 2020, primarily due to increased R&D costs[21]. - Financing costs decreased to approximately RMB 110,800,000, down about 36.1% from RMB 173,400,000 in the first half of 2020, mainly due to a reduction in average borrowing balances[21]. - The net loss attributable to ordinary shareholders was approximately RMB 41,700,000, with a loss per share of RMB 0.04, compared to a net loss of RMB 223,900,000 and a loss per share of RMB 0.22 in the same period of 2020[22]. - The group recorded a total tax expense of RMB 64,036,000 for the six months ended June 30, 2021, compared to a tax credit of RMB 138,000 for the same period in 2020, showing a shift to taxable income[152]. Sales and Market Performance - Domestic sales accounted for approximately 42.3% of total revenue, while overseas sales accounted for about 57.7%, a significant increase from 4.6% in the same period of 2020[12]. - The significant increase in overseas sales was attributed to a substantial order delivered for the Nigeria gas pipeline project[12]. - The group received new orders for approximately 240,000 tons of steel pipes during the period and delivered about 229,000 tons of welded steel pipes[24]. - Revenue from the manufacturing and sales of straight seam submerged arc welded pipes was RMB 683,245,000, up from RMB 228,612,000, marking an increase of 199%[134]. - The company’s revenue from the African market reached RMB 351,464,000, with no revenue reported in the previous year[131]. - Sales to external customers in mainland China amounted to RMB 365,190,000, an increase from RMB 350,836,000 in the previous year[131]. Assets and Liabilities - The company has a total borrowing amount of approximately RMB 3,620,700,000 as of June 30, 2021, compared to approximately RMB 3,700,000,000 as of December 31, 2020[52]. - The asset-liability ratio is approximately 42.3% as of June 30, 2021, compared to 43.3% as of December 31, 2020[52]. - The company’s cash and bank balances are approximately RMB 87,700,000 with a current ratio of 0.87 as of June 30, 2021, compared to RMB 19,500,000 and 0.83 as of December 31, 2020[49]. - The group reported a decrease in total liabilities to RMB 1,188,092,000 as of June 30, 2021, from RMB 1,888,387,000 as of June 30, 2020[89]. - The group had trade payables of RMB 499,800,000 as of June 30, 2021, down from RMB 609,568,000 as of December 31, 2020, suggesting improved cash flow management[167]. - The group’s net trade receivables increased to RMB 555,794,000 as of June 30, 2021, from RMB 500,237,000 as of December 31, 2020, reflecting a growth in sales[163]. Future Plans and Investments - The company plans to complete six main gas pipelines totaling 751 kilometers in Guangdong province by the end of 2021, aiming for "city-to-city" gas access[1]. - The company aims to achieve "county-to-county" gas access in Guangdong province by the end of 2022[1]. - The group plans to change the land use of Panyu from "industrial" to "residential and commercial," with an investment of RMB 240,000,000 for a 19% equity stake in Panyu Jiang Steel Pipe[30]. - The company expects to receive remaining compensation of RMB 1,036,000,000 and an early completion bonus of RMB 691,000,000 from the land reclamation agreement in the second half of 2021[105]. - The company is actively negotiating with debtors regarding outstanding receivables to agree on repayment schedules[105]. - The company is implementing cost control measures to improve operational cash flow and achieve profitability[105]. Corporate Governance and Compliance - The board of directors has confirmed compliance with the corporate governance code throughout the reporting period[72]. - The accounting policies used in the preparation of the interim financial statements are consistent with those used in the previous annual financial statements[111]. - The company has not declared any interim dividends for the six months ending June 30, 2021[43]. - There were no purchases, redemptions, or sales of the company's listed securities by the company or its subsidiaries during the reporting period[73]. Miscellaneous - The company has adopted a share option scheme on June 18, 2020, and a share award scheme that was terminated on March 21, 2021, with no options or awards granted as of June 30, 2021[68]. - The company has not recognized any rent concessions due to the direct impact of COVID-19, indicating stability in rental agreements[114]. - The company has issued a total of 1,011,142,000 shares as of June 30, 2021, unchanged from the previous year[190]. - The total remuneration for key management personnel was RMB 1,950,000 for the six months ended June 30, 2021, down from RMB 2,600,000 in the previous year[199].

Production Capacity and Manufacturing - The Group's annual production capacity is 1,950,000 tonnes as of December 31, 2020[5]. - The Group holds 84 patents, including 32 invention patents, and has 13 international certifications[6]. - The Group is the first and only manufacturer in the PRC to develop deep sea welded steel pipes for use at a water depth of 3,500 meters[6]. - The Group's steel pipes are primarily used for energy transmission, including oil and gas pipelines, deep sea pipelines, and city gas networks[4]. - The Group has a strong presence in multiple countries, with production bases and offices in locations such as Saudi Arabia and Indonesia[5]. - The Group is classified as a member of the Offshore Engineering Equipment Industry, indicating its involvement in offshore projects[64]. - The Group's products are widely applicable to major oil and gas pipeline projects, both onshore and offshore, as well as infrastructure projects domestically and internationally[63]. Financial Performance - The Group recorded a turnover of approximately RMB1,141.8 million for the year ended 31 December 2020, representing a decrease of approximately 4.4% compared to RMB1,194.0 million in 2019[20]. - The Group achieved a profit of approximately RMB622.9 million in 2020, a significant turnaround from a loss of RMB142.1 million in 2019, resulting in a profit per share of approximately RMB0.62[20]. - The total revenue for the Group was approximately RMB1,141.8 million in 2020, a decrease of approximately RMB52.2 million or 4.4% compared to 2019[88][91]. - The gross profit for the Group was approximately RMB204.6 million in 2020, compared to RMB201.4 million in 2019, indicating a slight increase despite the revenue decline[95]. - The gross profit margin for 2020 was approximately 18.2%, similar to 17.6% in 2019[98]. - The revenue from property development and investment was approximately RMB15.96 million in 2020, a significant decrease from RMB52.3 million in 2019, accounting for only 1.4% of total revenue[89][91]. - The revenue from steel pipes was approximately RMB1,125.9 million in 2020, representing a decrease of approximately RMB15.8 million or 1.4% compared to 2019, primarily due to a decrease in property sales[88][91]. Orders and Sales - The Group delivered a total of 341,000 tons of steel pipes and received orders for a total of 654,000 tons of steel pipes in 2020, marking the highest order volume since the Group's listing[23]. - A key project included the provision of 140,000 tons of steel pipes for a 300-kilometer natural gas transmission pipeline project in Nigeria, which is crucial for local economic development[24]. - The Group received new orders of approximately 654,000 tonnes of welded steel pipes in 2020, with significant orders from the Nigeria Natural Gas Pipe Project[79]. - LSAW steel pipes accounted for approximately 71.7% of the Group's total steel pipe revenue for the year ended December 31, 2020, with revenue from sales amounting to approximately RMB655.1 million[81]. - The Group's joint venture in Saudi Arabia received an order for approximately 33,000 tonnes of steel pipes from Saudi Aramco and Saipem S.p.A.[80]. Awards and Recognition - The Group has received numerous awards, including the "Gold Cup Prize for Actual Quality of Metallurgical Products" and "National Key New Products" recognition[6]. - The Group has been awarded 13 international quality certifications, including DNV and API, enhancing its credibility in the market[63]. - The Group is the largest LSAW steel pipe manufacturer and exporter in the PRC, capable of producing LSAW steel pipes that meet the X100 standard[63]. - The Group has maintained good relationships with policy banks and has obtained medium-term loans from the Export-Import Bank of China, supporting its operations[64]. Land and Property Development - The total land area converted for commercial use in Panyu is 125,000 m², accounting for 25% of the total area owned by the Group in that region[65]. - The total construction area of the Panyu Land is 550,000 m², divided into three phases for development[65]. - The sale of land by Panyu Chu Kong Steel Pipe Co., Limited generated approximately RMB3,453 million in compensation and an early completion bonus of approximately RMB691 million, primarily used to reduce the Group's liabilities[26]. - The Group entered into a land resumption compensation agreement with Guangzhou City Land Development Centre for a compensation of RMB3,453.4 million, subject to an early completion bonus of RMB690.7 million[75]. Future Outlook and Strategic Plans - The Group plans to expand its product range to include steel pipes for infrastructure and high-end construction projects, aiming to meet diversified market demands[33]. - The Group remains confident in the demand for steel pipes due to China's ongoing promotion of the natural gas industry and accelerated construction of pipeline network facilities[32]. - The company plans to leverage opportunities from oil and gas development projects to expand its customer base and market share, aiming to become a global leading steel pipe manufacturer[160]. - The company anticipates significant opportunities arising from government policies and projects in the steel pipe manufacturing industry[161]. - The construction of natural gas pipeline facilities will be accelerated to address shortcomings in interconnection and transmission capacity in key areas, contributing to the formation of a "national network"[158]. Management and Personnel - Mr. Chen is the sole director and shareholder of Bournam Profits Limited, holding 701,911,000 shares of the Company, along with his personal interest of 4,350,000 shares, totaling 706,261,000 shares[177]. - Mr. Chen has received multiple awards, including the Excellent Entrepreneur in Chinese Private Technology Enterprises in 2004 and the First Prize of Science and Technology Award in Guangdong Province in 2010[170]. - Ms. Chen Zhao Nian has been with the Group since October 2002, primarily responsible for daily management and operations[179]. - The total number of full-time employees decreased to 821 in 2020 from 1,162 in 2019, with significant reductions in production and logistics staff[149]. Cash Flow and Financing - Net cash inflows from operating activities decreased from approximately RMB527.8 million in 2019 to approximately RMB71.4 million in 2020[116]. - Net cash flows from investing activities increased from approximately RMB1,211.1 million in 2019 to approximately RMB1,662.0 million in 2020, mainly due to compensation for land resumption[117]. - As of December 31, 2020, the Group's total borrowings amounted to approximately RMB3,700 million, with 40% being long-term borrowings and 60% being short-term borrowings[132]. - The gearing ratio decreased from 59.5% in 2019 to 43.3% in 2020 due to the repayment of borrowings during the year[127]. - The Group's borrowings included a loan of RMB1.2 billion related to its property development business[132]. Market Trends and Industry Insights - The 14th Five-Year Plan anticipates an increase in China's oil and gas pipeline mileage by 71,000 km, with capital expenditure on pipeline investment expected to exceed RMB 1 trillion during this period[152]. - Major pipeline projects expected to be constructed during the 14th Five-Year Plan include the Qingdao-Nanjing Pipeline and the Guangdong-Zhejiang Pipeline, enhancing regional interconnectivity[153]. - By 2025, China's oil and gas pipeline network is expected to expand to 240,000 kilometers, with natural gas, crude oil, and refined oil pipeline lengths reaching 163,000 kilometers, 37,000 kilometers, and 40,000 kilometers respectively[155].

Financial Performance - Revenue for the six months ended June 30, 2020, was approximately RMB 367.7 million, a decrease of about 25.2% compared to RMB 491.9 million in the same period of 2019[11]. - The loss attributable to ordinary shareholders was RMB 223.9 million, compared to a loss of RMB 212.8 million in the same period of 2019, with a loss per share of RMB 0.22[11]. - Gross profit for the period was approximately RMB 85.6 million, a decrease of about 17.2% from RMB 103.4 million in the same period of 2019, with a gross margin of approximately 23.3%[18]. - Other income and gains were approximately RMB 11 million, a decrease of about 81.1% compared to RMB 58.3 million in the same period of 2019, primarily due to reduced subsidy income[20]. - The company reported a loss before tax of RMB 224,023,000, compared to a loss of RMB 202,335,000 in the previous year, reflecting an increase in losses[80]. - The net loss for the period was RMB 223,885,000, compared to RMB 213,795,000 in 2019, indicating a worsening financial performance[80]. - Total comprehensive loss for the period was RMB 276,821,000, compared to RMB 216,464,000 in the previous year, showing an increase in overall losses[82]. Sales and Revenue Composition - Domestic sales accounted for approximately 95.4% of total revenue, while overseas sales accounted for about 4.6%, a significant shift from 78.8% and 21.2% respectively in the previous year[12]. - Revenue from the main product, welded steel pipes, was RMB 280,221,000 for the six months ended June 30, 2020, down from RMB 360,321,000 in the same period of 2019[121]. - The company generated RMB 41,493,000 from a single customer, accounting for 11% of total revenue for the six months ended June 30, 2020, compared to RMB 95,764,000 and 19% in the same period of 2019[126]. - Revenue from other sources, including rental income, was RMB 549,000 for the six months ended June 30, 2020, down from RMB 3,330,000 in the same period of 2019[128]. - The company’s revenue from mainland China was RMB 350,836,000 for the six months ended June 30, 2020, compared to RMB 387,792,000 in the same period of 2019[125]. Expenses and Cost Management - Selling and distribution expenses were approximately RMB 24.5 million, a decrease of about 30.7% from RMB 35.4 million in the same period of 2019[20]. - Administrative expenses were approximately RMB 120.6 million, a decrease of about 25.9% from RMB 162.7 million in the same period of 2019, mainly due to the cessation of manufacturing operations by a subsidiary[20]. - The total interest expenses for the six months ended June 30, 2020, were RMB 209,617,000, a decrease from RMB 277,618,000 in the same period of 2019, reflecting a reduction of approximately 24.5%[140]. Assets and Liabilities - The total assets as of June 30, 2020, were RMB 8,241,823,000, down from RMB 10,460,706,000 as of June 30, 2019[121]. - The total liabilities as of June 30, 2020, were RMB 8,463,675,000, compared to RMB 10,446,897,000 for the same period in 2019[121]. - The company had a net current liability of approximately RMB 2,104,700,000 as of June 30, 2020, primarily due to short-term loans[55]. - Current liabilities surged to RMB 5,962,516 thousand, up from RMB 3,913,293 thousand, reflecting increased borrowings[87]. - The company’s total liabilities decreased from RMB 4,870,864,000 as of December 31, 2019, to RMB 4,645,364,000 as of June 30, 2020, reflecting a reduction of 4.6%[165]. Employee and Management Information - As of June 30, 2020, the company had 807 full-time employees, a decrease from 1,162 employees as of December 31, 2019[42]. - The total remuneration for key management personnel was RMB 2,600 thousand for the six months ended June 30, 2020, a decrease of 9.8% compared to RMB 2,882 thousand in the same period of 2019[185]. Strategic Initiatives and Future Outlook - The company plans to continue focusing on domestic sales while addressing the challenges posed by the global pandemic[12]. - The company plans to actively explore and expand its domestic and international customer base, capitalizing on the anticipated rebound in steel pipe demand due to government policies[41]. - The company anticipates sufficient operating funds due to the expected recovery in market demand for steel pipes and ongoing sales of existing real estate projects[104]. - The company’s financial statements were prepared based on the assumption of going concern, contingent on favorable outcomes from the land sale agreements[106]. Compliance and Governance - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2020, ensuring compliance with accounting principles and internal controls[77]. - The company’s financial reporting adheres to the International Financial Reporting Standards and relevant accounting policies consistent with the previous fiscal year[107]. - The interim financial statements were approved and authorized for publication by the board of directors on August 28, 2020[190].

Production Capacity and Operations - The Group's total annual production capacity reached 2,930,000 tonnes as of December 31, 2019[7]. - The Group operates production bases in multiple locations, including Panyu, Zhuhai, and Saudi Arabia, enhancing its market reach[7]. - The Group has established a joint venture in Saudi Arabia, qualifying as a supplier for the Saudi Arabian Oil Company[8]. - The Group delivered a total of 327,000 tons of steel pipes and received orders for 341,000 tons, including major projects for three large oil companies and national key projects[24]. - The Group is the largest LSAW steel pipe manufacturer and exporter in the PRC, capable of producing LSAW steel pipes that meet the X100 standard[68]. - The Group's welded steel pipe products are widely applicable to major oil and gas pipeline projects, both onshore and offshore[68]. Research and Development - The Group holds 80 patents, including 44 invention patents, and has 12 international certifications[8]. - The Group's commitment to research and development positions it as an industry pioneer, contributing to its competitive advantage[8]. - The Group has successfully produced and developed deep sea welded pipes for use at depths of 3,500 meters underwater, a significant technological achievement[68]. - The Group's R&D staff decreased to 3 in 2019 from 12 in 2018, indicating a reduction of 75% in this area[191]. Financial Performance - The Group recorded a turnover of approximately RMB1,194.0 million for the year ended 31 December 2019, a decrease of approximately 29.0% compared to RMB1,681.6 million in 2018[20]. - The loss for the year was approximately RMB142.1 million, an improvement from a loss of RMB498.9 million in 2018, resulting in a loss per share of approximately RMB0.14 compared to RMB0.49 in the previous year[20]. - Revenue from the sales of LSAW steel pipes amounted to approximately RMB835.3 million, representing an increase of approximately 41.3% compared to 2018[100]. - The total revenue from steel pipes was approximately RMB 1,141.7 million, which accounted for 95.6% of the total revenue for the year[113]. - The decrease in total revenue was primarily due to a reduction in property sales, which dropped from RMB 610.4 million in 2018 to RMB 52.3 million in 2019[107]. - Other income and gains increased by approximately 441.5% or RMB360.2 million from RMB81.6 million in 2018 to approximately RMB441.7 million in 2019, mainly due to the gain on resumption of land-use rights[133]. Market Demand and Opportunities - The PRC government plans to construct 28,000 km and 59,000 km of natural gas pipelines in the periods 2019-2020 and 2021-2025 respectively, with total investments expected to exceed trillions in Renminbi[34]. - The construction of key natural gas pipelines in China is expected to generate a total steel pipe demand of about 8 million tons over the next two to three years, with an estimated increase in steel pipe demand valued at approximately RMB30-40 billion[36]. - The Group recognizes the ongoing projects and policies as significant opportunities for the steel pipe manufacturing industry, positioning itself to improve sales[46]. - The establishment of China Oil & Gas Pipeline Network Corporation is expected to generate market demand for related equipment worth over RMB 300 billion[192]. Strategic Focus and Business Diversification - The Group's strategic focus includes property development and investment in the PRC, diversifying its business operations[6]. - The Group aims to expand its product range beyond oil and gas transmission pipelines to include steel pipes for infrastructure and civil high-end construction projects, addressing diverse market demands[30]. - The Group is committed to reducing liabilities and finance costs to prepare for future developments in the steel pipe industry[29]. Financial Management and Liquidity - The Group's current assets exceeded current liabilities by approximately RMB 140.6 million, indicating sufficient liquidity to meet short-term obligations[165]. - The Group's gearing ratio improved from approximately 62.5% in 2018 to approximately 59.5% in 2019, reflecting the repayment of borrowings during the year[159]. - The Group has sufficient liquidity with available bank financing of RMB 290,300,000 to repay short-term borrowings[167]. Employee and Operational Adjustments - Staff costs for the year ended December 31, 2019, were approximately RMB 119.0 million, a decrease from RMB 155.4 million in 2018[183]. - The total number of full-time employees increased to 1,162 in 2019, up from 1,110 in 2018, reflecting a growth of 4.7%[190]. - The management function employed 155 staff, while production and logistics saw an increase to 578 employees, up from 508 in 2018, indicating a 13.8% growth in this area[191]. Impact of COVID-19 - The outbreak of COVID-19 is considered a non-adjusting event after the reporting period, with potential impacts on the Group's operations being closely monitored[181]. - The Chinese government is expected to enhance policy regulation post-COVID-19 to achieve economic and social development goals, focusing on infrastructure investment[193].

Financial Performance - The Group recorded a turnover of approximately RMB1,620 million for the year ended 31 December 2018, an increase of approximately 85.6% compared to RMB873 million in 2017[17]. - The loss for the year was approximately RMB499 million, improved from a loss of RMB874 million in 2017[17]. - Loss per share attributable to ordinary equity holders was approximately RMB0.49, compared to RMB0.86 in 2017[17]. - The Group's revenue for the year ended December 31, 2018, was approximately RMB1,620.5 million, representing an increase of approximately RMB747.2 million or 85.6% compared to 2017[129]. - The Group's loss for the year was approximately RMB 499,000,000, an improvement from a loss of RMB 874,000,000 in 2017[20]. - The gross profit from steel pipe sales in 2018 was approximately RMB 192,900,000, representing an increase of approximately 231.9% or RMB 134,800,000 compared to RMB 58,100,000 in 2017[140]. - The gross profit margin for steel pipe sales in 2018 was approximately 18.0%, higher than the previous year due to the delivery of sizeable orders to Sinopec with high profit margins[140]. - Other income and gains decreased by approximately 42.0% to RMB81.6 million in 2018, down from RMB140.6 million in 2017[156]. - Selling and distribution expenses decreased by approximately 40.6% to RMB63.7 million in 2018, down from RMB107.3 million in 2017[156]. - Administrative expenses decreased by approximately 8.1% to RMB437.0 million in 2018, down from RMB475.6 million in 2017[156]. - The decrease in administrative expenses was primarily due to reduced research and development expenses and bank charges during the year[156]. - Finance costs decreased from approximately RMB426.3 million in 2017 to RMB374.5 million in 2018, with an effective interest rate dropping from 7.3% to 6.0%[159]. - The Group reported a loss of approximately RMB498.9 million in 2018, an improvement from a loss of RMB873.8 million in 2017[159]. Production Capacity and Operations - The Group has a combined annual production capacity of 2,930,000 tonnes as of 31 December 2018[7]. - The Group delivered a total of 348,000 tons of steel pipes and received orders for 360,000 tons, including major projects from three large oil companies and national key projects[21]. - The production plant in Saudi Arabia commenced commercial operations and received new orders totaling approximately 35,000 tons from Saudi Aramco in early 2019[27]. - The Group's production facilities have been successfully relocated to Lianyungang and Zhuhai, which will serve as key production bases in China[26]. - The Group is the largest manufacturer and exporter of LSAW steel pipes in China, with significant recovery in major oil and gas projects contributing to increased domestic orders[121]. Research and Development - The Group holds 102 patents, including 31 invention patents, and has 11 international certifications[5]. - The Group is the first and only steel pipe manufacturer in the PRC to develop deep sea welded steel pipes for use at a water depth of 3,500 meters[5]. - The ongoing development of new technologies and products is expected to enhance the Group's competitive edge in the steel pipe industry[61]. Market and Sales - The Group's overseas expansion has seen participation in large-scale projects requiring high-quality steel pipes, with a significant increase in tenders compared to the previous year[33]. - Domestic sales accounted for approximately 75.1% of total steel pipe revenue in 2018, up from 53.6% in 2017[141]. - The revenue from manufacturing services in steel pipes accounted for approximately 25.2% of total steel pipe revenue in 2018, compared to 8.3% in 2017[142]. - Revenue from LSAW steel pipes amounted to approximately RMB591.3 million, accounting for approximately 73.5% of total steel pipe revenue, with a year-on-year increase of approximately 15.4%[121][124]. - Revenue from SSAW steel pipes was approximately RMB120.8 million, representing about 18.1% of total steel pipe revenue for the year[126]. - Revenue from ERW steel pipes was approximately RMB30.6 million, accounting for approximately 2.9% of total steel pipe revenue for the year[127]. Strategic Initiatives - The company plans to develop more customers under the "Belt and Road Initiative" and expects a rebound in steel pipe demand due to government policies promoting natural gas usage[40][43]. - The company is actively participating in bidding for large-scale domestic and international oil and gas projects, indicating a significant increase in project bids compared to last year[35]. - The company has engaged in property development and investment as part of its business operations[108]. - The company has maintained good relationships with policy banks and has obtained medium-term loans from the Export-Import Bank of China[110]. Financial Position and Investments - As of December 31, 2018, the Group's total borrowings amounted to approximately RMB6,255.1 million, with about 68% being long-term borrowings and 32% being short-term borrowings[183]. - The Group's gearing ratio as of December 31, 2018, was approximately 62.5%, compared to 57.3% in 2017[178]. - The Group completed a capital injection of RMB240 million on October 12, 2018, acquiring 19% of the equity interest in PCKSP[191]. - The Group's current liabilities exceeded its current assets by approximately RMB39.7 million as of December 31, 2018[184]. - The Group's net borrowings under the steel pipe business were around RMB2,616.9 million, with approximately 90% of the cost of sales incurred on the procurement of steel plates and steel coils[183]. Awards and Recognition - The company received the Guangdong Province Outstanding New Product award in 1996, recognizing its innovative products[47]. - In 2010, the company won the First Prize for Sci-tech of Guangdong Province, highlighting its technological advancements[53]. - The company was recognized as a Key High and New Technology Enterprise of China Torch Item in 2010, indicating its commitment to innovation[49]. - The company achieved the Government Quality Award of Guangdong Province in 2012, reflecting its quality management standards[54]. - The company has been awarded multiple international quality certifications, demonstrating its adherence to global quality standards[56].