Financial Performance - The company's operating revenue for Q3 2022 was RMB 9,033.1 million, representing a year-on-year increase of 26.4%[5] - Net profit attributable to shareholders for Q3 2022 was RMB 960.7 million, up 47.6% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2022 was RMB 964.6 million, reflecting a 55.6% increase year-on-year[5] - The basic earnings per share for Q3 2022 was RMB 0.20, an increase of 42.9% compared to the same period last year[6] - For the first three quarters of 2022, the company achieved a revenue of RMB 24,245.7 million, representing a year-on-year increase of 21.9%[13] - The net profit for the same period was RMB 2,113.2 million, with a year-on-year growth of 44.5%[13] - The total profit for Q3 2022 was CNY 2,639.95 million, up from CNY 2,003.01 million in Q3 2021, marking a significant increase[24] - The company's total revenue for the first three quarters of 2022 reached RMB 24.25 billion, up 22.4% from RMB 19.88 billion in the same period of 2021[22] Assets and Liabilities - The total assets at the end of the reporting period were RMB 75,328.8 million, a 2.8% increase from the end of the previous year[6] - As of September 30, 2022, total assets amounted to RMB 75.33 billion, an increase from RMB 73.31 billion at the end of 2021, reflecting a growth of approximately 2.77%[21] - The company's total liabilities reached RMB 35.66 billion, slightly up from RMB 35.10 billion, indicating a marginal increase in financial obligations[22] - The equity attributable to shareholders increased to RMB 39.09 billion from RMB 38.03 billion, reflecting a growth of approximately 2.8%[22] - Accounts receivable increased significantly to RMB 17.56 billion, up 67.0% from RMB 10.51 billion at the end of 2021[21] - Short-term borrowings rose sharply to RMB 6.03 billion, compared to RMB 2.23 billion at the end of 2021, indicating a significant increase in leverage[21] Operational Metrics - The number of drilling days increased to 12,326, a rise of 22.2% compared to the previous year[17] - The utilization rate for self-elevating drilling platforms reached 89.8%, up by 17.0 percentage points year-on-year[14] - The company's vessel service operations totaled 39,963 days, reflecting an 8.1% increase year-on-year[15] - The two-dimensional survey mileage was 2,353 kilometers, showing a year-on-year increase of 9.1%[16] - The three-dimensional survey area decreased to 11,351 square kilometers, a decline of 28.0% year-on-year[16] - The company reported a significant increase in seabed node collection operations, with a total of 648 square kilometers completed, up 43.0% year-on-year[16] Cash Flow and Investments - The net cash flow from operating activities for the year-to-date was RMB -470.8 million, compared to RMB -797.5 million in the same period last year[6] - The net cash flow from operating activities for Q3 2022 was -470,801,409 RMB, a decrease from 67,489,506 RMB in Q3 2021[51] - Total cash inflow from operating activities was 19,844,168,372 RMB, compared to 17,566,957,706 RMB in the same period last year, representing an increase of approximately 13%[51] - Cash outflow for purchasing goods and services was 14,273,018,367 RMB, up from 12,398,311,072 RMB, indicating a rise of about 15%[51] - The net cash flow from investment activities was 4,120,647,423 RMB, significantly higher than 646,726,365 RMB in Q3 2021[51] - Cash inflow from financing activities was 5,364,161,900 RMB, with no inflow recorded in the same period last year[51] Shareholder Information - The company reported a total of 49,121 ordinary shareholders at the end of the reporting period[9] - The largest shareholder, China National Offshore Oil Corporation, holds 50.53% of the shares[9] Research and Development - The company is focusing on enhancing its R&D capabilities and transforming high technology into high value[17] - Research and development expenses for Q3 2022 were CNY 629.25 million, slightly down from CNY 648.84 million in Q3 2021[24] - The company is focusing on technological innovation and global market expansion to enhance operational efficiency and safety[39]

Financial Performance - In the first half of 2022, the company achieved operating revenue of RMB 15.2 billion, a 3.7% increase compared to RMB 14.5 billion in the same period of 2020[6]. - The net profit for the first half of 2022 was RMB 1.11 billion, reflecting a 35.1% increase from RMB 1.72 billion in the first half of 2020[6]. - The company’s operating profit for the first half of 2022 was RMB 1.27 billion, down 6.4% from RMB 2.22 billion in the first half of 2020[6]. - The company's revenue for the first half of 2022 was RMB 15,195.6 million, an increase of RMB 2,472.6 million, representing a growth of 19.4% year-on-year[13]. - Net profit for the first half of 2022 was RMB 1,108.4 million, up RMB 299.9 million, with a growth rate of 37.1% compared to the previous year[13]. - The total comprehensive income for the first half of 2022 was RMB 985.55 million, compared to RMB 811.46 million in the same period last year, indicating an increase of approximately 21.4%[74]. - Basic earnings per share for the first half of 2022 were RMB 0.2311, up from RMB 0.1680 in the same period of 2021[36]. - The company reported a profit of RMB 1,102,536 thousand for the six months ended June 30, 2022, compared to RMB 801,457 thousand for the same period in 2021, marking a year-on-year increase of approximately 37.5%[78]. Market Expansion and Contracts - The company has signed significant long-term drilling contracts in Saudi Arabia and expanded its service offerings in Malaysia and Indonesia, indicating successful international market expansion[9]. - The company has expanded its overseas market presence, successfully completing various projects in North America and Southeast Asia[18]. - The company has signed significant long-term drilling contracts in Saudi Arabia and won the largest logging project in Southeast Asia in Indonesia[194]. Technological Advancements - The company’s underwater release plug system, with complete independent intellectual property rights, has been successfully industrialized, breaking foreign monopolies[10]. - The company’s "Xuanji" system has achieved a one-time downhole success rate of 91.7%, highlighting its technological advancements[10]. - The company is focusing on technological innovation and has made significant progress in developing new technologies for oilfield services[18]. - The company has established a drilling digital center platform and officially launched information management tools for frontline use in the first half of 2022[199]. Operational Efficiency - The drilling services segment generated revenue of RMB 5,055.1 million, an increase of RMB 707.3 million, reflecting a growth of 16.3% year-on-year[14]. - The total operating days for drilling platforms reached 8,017 days, an increase of 1,439 days, representing a growth of 21.9% year-on-year[16]. - The utilization rate of self-elevating drilling platforms increased to 89.8%, up 18.0 percentage points from the previous year[16]. - The average daily revenue for self-elevating drilling platforms decreased to USD 7.1, down 6.6% from USD 7.6 in the previous year[17]. - The company has made significant progress in the recovery of operations for three semi-submersible platforms in Europe during the first half of 2022[199]. Financial Position and Investments - Total assets as of June 30, 2022, were RMB 73,738.4 million, an increase of 0.6% from RMB 73,311.7 million at the end of 2021[37]. - Cash and cash equivalents decreased to RMB 4,454.7 million by June 30, 2022, from RMB 5,006.4 million at the beginning of the year[39]. - The company’s net debt as of June 30, 2022, was RMB 28,487.7 million, compared to RMB 28,025.2 million as of December 31, 2021[62]. - The company’s long-term debt, including bank loans and bonds, rose to RMB 12,593,405 thousand from RMB 12,162,168 thousand, indicating an increase of about 3.6%[76]. - The company’s cash deposits in time deposits amounted to RMB 1,586,196 as of June 30, 2022, showing a slight increase from RMB 1,556,535 as of December 31, 2021[131]. Cost Management and Expenses - The company faced a 22.6% increase in operating expenses, totaling RMB 14,128.6 million, compared to RMB 11,526.7 million in the same period last year[26]. - Employee compensation costs rose by RMB 416.1 million or 16.8% year-on-year, attributed to increased operational volume and the resumption of platform operations[28]. - The company is focusing on cost reduction and efficiency improvement, with total operating expenses rising to RMB 14.13 billion from RMB 11.53 billion, an increase of approximately 22.5%[73]. Strategic Goals and Future Outlook - The company aims to enhance its core competitiveness by focusing on key technology breakthroughs and accelerating digital transformation[11]. - The company plans to promote green and low-carbon development, actively implementing carbon peak and carbon neutrality goals[11]. - The company anticipates a continued recovery in the oilfield services market driven by high oil prices and increased upstream exploration and development investments[47]. - The company plans to enhance its R&D capabilities and focus on key core technology breakthroughs in the second half of 2022[47]. - The company will closely monitor global economic conditions and oil prices to adapt its strategies accordingly[47]. Shareholder and Governance Information - Major shareholders included BlackRock, Inc. with approximately 6.12% and Allianz SE with approximately 5.17% of the company's H-shares[54]. - The company did not grant any rights to directors, supervisors, or senior management to benefit from purchasing shares or bonds during the six months ended June 30, 2022[55]. - There were changes in the board of directors, with the appointment of new independent non-executive directors in June and August 2022[57][58].

[Section I Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section defines common terms, specialized oilfield service terminology, large equipment characteristics, and operational metrics like utilization rates - The report defines common terms such as COSL and CNOOC, along with specialized oilfield service terminology including 2D/3D seismic exploration, logging while drilling (LWD), cementing, completion, and workover[9](index=9&type=chunk) - It also includes definitions and operational characteristics of large equipment like jack-up and semi-submersible drilling rigs, and operational metrics such as available day utilization and calendar day utilization[9](index=9&type=chunk)[10](index=10&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of the company's basic information and highlights its key financial performance and indicators [I. Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides basic information about China Oilfield Services Limited (COSL), including its Chinese and English names, legal representative, board secretary contact details, registered and office addresses, and stock profiles for A and H shares - Company Chinese Name: China Oilfield Services Limited, Abbreviation: COSL[11](index=11&type=chunk) - Company Legal Representative: Zhao Shunqiang[11](index=11&type=chunk) Company Stock Profile | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :------- | :--------------- | :----------- | :------- | | A-share | Shanghai Stock Exchange | COSL | 601808 | | H-share | The Stock Exchange of Hong Kong Limited | COSL | 02883 | [VII. Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2022, the company demonstrated strong financial performance with a **19.5%** increase in operating revenue, a **37.6%** rise in net profit attributable to shareholders, a **35.3%** growth in basic earnings per share, and a **0.8 percentage point** increase in weighted average return on net assets Key Accounting Data for H1 2022 (Unit: RMB million) | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | Change from Prior Period (%) | | :----------------- | :----------------------- | :----------- | :--------------------------- | | Operating Revenue | 15,212.6 | 12,735.4 | 19.5 | | Net Profit Attributable to Shareholders of Listed Company | 1,102.5 | 801.5 | 37.6 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 1,026.6 | 723.1 | 42.0 | | Net Cash Flow from Operating Activities | -2,088.0 | -1,887.2 | N/A | | Net Assets Attributable to Shareholders of Listed Company (End of Current Period) | 38,287.0 | 38,032.8 | 0.7 | | Total Assets (End of Current Period) | 73,738.4 | 73,311.7 | 0.6 | Key Financial Indicators for H1 2022 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change from Prior Period (%) | | :----------------------- | :----------------------- | :----------- | :--------------------------- | | Basic Earnings Per Share (yuan/share) | 0.23 | 0.17 | 35.3 | | Diluted Earnings Per Share (yuan/share) | 0.23 | 0.17 | 35.3 | | Basic Earnings Per Share (Excluding Non-recurring Gains and Losses) (yuan/share) | 0.22 | 0.15 | 46.7 | | Weighted Average Return on Net Assets (%) | 2.87 | 2.07 | Increased by 0.8 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains and Losses) (%) | 2.67 | 1.86 | Increased by 0.8 percentage points | [VIII. Differences in Accounting Data Under Domestic and International Accounting Standards](index=7&type=section&id=%E5%85%AB%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company believes there are no significant differences in net profit and net assets between financial reports prepared under Chinese Enterprise Accounting Standards and Hong Kong Financial Reporting Standards, thus no reconciliation is required - There are no significant differences in net profit or net assets between Chinese Enterprise Accounting Standards and Hong Kong Financial Reporting Standards, requiring no reconciliation[21](index=21&type=chunk) [IX. Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Total non-recurring gains and losses amounted to **75.92 million yuan**, primarily from wealth management product income and government subsidies, partially offset by non-current asset disposal losses Non-recurring Gains and Losses Items and Amounts (Unit: yuan) | Non-recurring Gains and Losses Item | Amount | | :-------------------------------- | :--------- | | Gains and losses from disposal, scrapping, and early termination of leases of non-current assets | -3,888,201 | | Government subsidies recognized in current profit and loss | 10,386,489 | | Reversal of impairment provisions for receivables and contract assets subject to separate impairment testing | 295,622 | | Other non-operating income and expenses apart from the above | 23,577,432 | | Other gains and losses meeting the definition of non-recurring gains and losses (income from wealth management products recognized in current profit and loss) | 57,782,452 | | Less: Income tax impact | 12,236,934 | | Total | 75,916,860 | [Section III Management Discussion and Analysis](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides a comprehensive discussion and analysis of the company's operational performance, financial condition, and future outlook [I. Description of Industry and Principal Business During the Reporting Period](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) In the first half of 2022, the global oil and gas industry recovered, with international oil prices rising, driving continuous growth in the oilfield services market, where the company strengthened its position through resource optimization and technological innovation [(I) Principal Businesses and Operating Model During the Reporting Period](index=8&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E3%80%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company's operations span the entire oil and gas exploration, development, and production lifecycle, offering geophysical, drilling,

Financial Performance - The company's operating revenue for Q1 2022 was RMB 6,798.3 million, representing a year-on-year increase of 15.2%[5] - Net profit attributable to shareholders was RMB 303.8 million, up 67.7% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 266.7 million, reflecting a 76.5% increase year-on-year[5] - The basic and diluted earnings per share were both RMB 0.06, marking a 50.0% increase from the previous year[5] - The total profit for the same period was RMB 441.7 million, with a year-on-year growth of 42.5%[13] - Net profit reached RMB 306.1 million, marking a significant year-on-year increase of 66.2%[13] - The basic earnings per share for Q1 2022 was 0.0637 RMB, compared to 0.0380 RMB in Q1 2021, reflecting a growth of 67.1%[25] - Total comprehensive income reached CNY 318,476,113, an increase from CNY 194,453,720 year-over-year[52] Assets and Liabilities - Total assets at the end of the reporting period were RMB 73,466.4 million, a slight increase of 0.2% from the end of the previous year[6] - The total assets as of March 31, 2022, were CNY 73,466,449,744, slightly up from CNY 73,311,707,720 at the end of 2021[49] - The total liabilities decreased to 34,931,643,834 RMB from 35,095,377,923 RMB at the end of 2021, reflecting a reduction of 0.5%[23] - The total liabilities decreased to CNY 34,931,643,834 as of March 31, 2022, from CNY 35,095,377,923 at the end of 2021[50] Cash Flow - The net cash flow from operating activities was a negative RMB 2,224.2 million, compared to a negative RMB 1,025.1 million in the same period last year[8] - Cash and cash equivalents at the end of Q1 2022 were RMB 3,900.3 million, a decrease from RMB 6,583.2 million at the end of the previous year[27] - The company reported a net cash outflow from financing activities of RMB 265.9 million in Q1 2022, compared to RMB 234.5 million in the same period last year[27] - The net increase in cash and cash equivalents was CNY -1,106,137,502, a significant decline from CNY -538,739[54] - The ending balance of cash and cash equivalents was CNY 3,900,251,337, down from CNY 6,583,203,555 year-over-year[54] Operational Metrics - The number of operating days for drilling platforms was 3,922, an increase of 19.2% year-on-year[17] - The utilization rate for self-elevating drilling platforms improved to 89.4%, up 19.2 percentage points year-on-year[14] - The company operated 12,768 days in its marine services segment, reflecting a year-on-year increase of 9.3%[18] - The calendar day utilization rate for marine services rose to 91.8%, an increase of 2.0 percentage points year-on-year[18] - The number of operating days for semi-submersible drilling platforms was 683 days, showing a year-on-year decrease of 5.5%[41] - The calendar day utilization rate for drilling platforms increased to 75.9%, up 10.1 percentage points year-on-year[41] Research and Development - Research and development expenses for Q1 2022 were 190,687,026 RMB, a slight increase from 180,567,925 RMB in Q1 2021[24] - The company has increased its research and development expenses to CNY 190,687,026 in Q1 2022, compared to CNY 180,567,925 in Q1 2021, reflecting a focus on innovation[51] Strategic Focus - The company plans to enhance its exploration service value and technology product development while expanding its overseas market presence[19] - The company is focusing on key technology breakthroughs and the large-scale application of self-developed products to optimize service quality[18] - The company aims to expand its integrated service market and enhance customer value creation[40] - The company emphasized its focus on enhancing cost leadership and improving service quality to drive customer value creation, contributing to the increase in revenue and profit[35] - The company is focusing on cost reduction mechanisms and advancing key technology breakthroughs to enhance competitive advantages[40] Shareholder Information - Shareholders' equity attributable to the parent company was RMB 38,349.8 million, up 0.8% from the previous year[6] - The largest shareholder, China National Offshore Oil Corporation, holds 50.53% of the shares[10]

Company Overview [Company Introduction and Strategic Objectives](index=2&type=section&id=Company%20Introduction) COSL is a leading global integrated oilfield services provider, offering comprehensive services across the oil and gas exploration, development, and production lifecycle, with a strategic goal to become a world-class energy service company with Chinese characteristics - The company is one of the largest integrated oilfield service providers globally, covering all stages of oil and gas exploration, development, and production[4](index=4&type=chunk) - The company's business is divided into four segments: drilling services, oilfield technology services, marine support services, and geophysical survey and engineering survey services[6](index=6&type=chunk) - The company has formulated five development strategies: technology-driven, cost-leading, integration, internationalization, and regional development, aiming to become a world-class energy service company with Chinese characteristics[7](index=7&type=chunk) Financial Highlights [2021 Annual Financial Highlights](index=3&type=section&id=2021%20Annual%20Financial%20Highlights) In 2021, the company's total operating revenue slightly increased by 0.8% to RMB 29.169 billion, but operating profit decreased by 62.8% to RMB 1.541 billion and annual profit plummeted by 88.2% to RMB 322 million, primarily due to increased operating expenses and asset impairment losses 2021 Key Financial Data (RMB million) | Indicator | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | **29,168.5** | **28,925.3** | **0.8%** | | Domestic Business Revenue | 24,552.9 | 21,513.5 | 14.1% | | International Business Revenue | 4,615.6 | 7,411.8 | (37.7%) | | **Operating Profit** | **1,541.3** | **4,141.9** | **(62.8%)** | | **Annual Profit** | **322.1** | **2,718.3** | **(88.2%)** | | **Basic Earnings Per Share (cents/share)** | **6.56** | **56.65** | **(88.4%)** | | Total Assets (Year-end) | 73,311.7 | 75,942.3 | (3.5%) | | Total Equity (Year-end) | 38,216.3 | 38,688.8 | (1.2%) | Chairman's Statement [Strategy and Operations Review](index=6&type=section&id=Strategy%20and%20Operations%20Review) Chairman Zhao Shunqiang emphasized the company's five development strategies—technology-driven, cost-leading, integration, internationalization, and regional development—to achieve high-quality growth, with notable progress in governance, risk control, technological innovation, overseas expansion, and green initiatives - Established five development strategies (technology-driven, cost-leading, new integration, internationalization, regional development), prioritizing technological innovation, overseas market breakthroughs, and green development[15](index=15&type=chunk) - Comprehensively enhanced governance efficiency and continuously strengthened risk prevention and control, achieving an **OSHA recordable incident rate of 0.08**[16](index=16&type=chunk) - Adhered to technology-driven development, with the self-developed 'Xuanji' system achieving international advanced levels in well entry success rate and successfully entering overseas markets[17](index=17&type=chunk) - Persisted with the new integration strategy, optimized overseas market layout, signed over a hundred new overseas contracts and supplementary agreements, achieving gains in both Asia-Pacific and African markets[18](index=18&type=chunk) - Upheld green and low-carbon principles, implemented "dual carbon" strategic decisions, and was continuously selected for the Hang Seng Sustainability Index[19](index=19&type=chunk) Management Discussion and Analysis [Industry Overview and Business Review](index=10&type=section&id=Industry%20Overview%20and%20Business%20Review) In 2021, the global oilfield services market faced oversupply and intense competition due to the ongoing pandemic, oil price volatility, and accelerated energy transition, while the domestic market remained relatively stable, leading the company to achieve RMB 29.169 billion in revenue and RMB 322 million in net profit under its five development strategies - In 2021, the international oilfield services market experienced oversupply and intense competition due to the pandemic, oil price fluctuations, and energy transition, while the domestic market remained relatively stable driven by the 'Seven-Year Action Plan'[22](index=22&type=chunk) 2021 Key Operating Performance | Indicator | Amount | | :--- | :--- | | Operating Revenue | RMB 29.1685 billion | | Net Profit | RMB 322.1 million | | Basic Earnings Per Share | RMB 0.07 | [Analysis of Business Segments](index=11&type=section&id=Analysis%20of%20Business%20Segments) In 2021, the company's four business segments showed mixed performance, with oilfield technology, marine support, and geophysical services achieving double-digit revenue growth, while drilling services revenue declined by 23.5% primarily due to a large settlement income in the prior year [Drilling Services](index=11&type=section&id=Drilling%20Services) In 2021, drilling services revenue decreased by 23.5% to RMB 8.768 billion, primarily due to a USD 188 million settlement in the prior year, with total operating days declining by 3.3% and semi-submersible rig average daily revenue falling by 27.4% Drilling Rig Operating Data | Indicator | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Operating Days (days) | 14,082 | 14,569 | -3.3% | | - Jack-up Rigs | 11,383 | 11,427 | -0.4% | | - Semi-submersible Rigs | 2,699 | 3,142 | -14.1% | | Available Day Utilization Rate | 71.9% | 75.0% | Decrease of 3.1 percentage points | | Calendar Day Utilization Rate | 69.1% | 71.6% | Decrease of 2.5 percentage points | Average Daily Revenue of Drilling Rigs (USD ten thousand/day) | Rig Type | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Jack-up Rigs | 7.0 | 7.0 | 0.0% | | Semi-submersible Rigs | 13.5 | 18.6 | (27.4%) | | **Average Drilling Rig** | **8.2** | **9.5** | **(13.7%)** | [Oilfield Services](index=15&type=section&id=Oilfield%20Services) In 2021, oilfield technology services revenue grew by 13.3% to RMB 15.068 billion, driven by significant R&D achievements like the 'Xuanji' rotary steerable system's successful entry into overseas markets and initial progress in localizing high-end completion tools - Oilfield technology services business achieved operating revenue of **RMB 15.068 billion**, a year-on-year increase of **13.3%**[34](index=34&type=chunk) - The self-developed 'Xuanji' rotary steerable and logging-while-drilling system possesses full-specification operational capabilities and has successfully entered overseas markets[35](index=35&type=chunk) [Marine Support Services](index=17&type=section&id=Marine%20Support%20Services) In 2021, marine support services revenue grew by 13.3% to RMB 3.304 billion, with the owned fleet's calendar day utilization rate remaining stable at 93.4%, and the company expanded into the Americas market while adding six LNG-powered vessels - Marine support services business achieved operating revenue of **RMB 3.304 billion**, a year-on-year increase of **13.3%**[37](index=37&type=chunk) Owned Fleet Operating Days (days) | Vessel Type | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Oilfield Standby Vessels | 12,449 | 13,154 | (5.4%) | | Anchor Handling Tug Supply (AHTS) Vessels | 10,514 | 9,490 | 10.8% | | Platform Supply Vessels (PSV) | 4,894 | 4,810 | 1.7% | | **Total** | **30,223** | **30,151** | **0.2%** | [Geophysical Survey and Engineering Survey Services](index=19&type=section&id=Geophysical%20Survey%20and%20Engineering%20Survey%20Services) In 2021, geophysical survey and engineering survey services revenue surged by 62.5% to RMB 2.029 billion, driven by the commercial application of self-developed 'Hailiang' streamer acquisition equipment and 'Haitu' navigation system, alongside the establishment of the first OBN vessel fleet - Geophysical survey and engineering survey services revenue increased by **62.5%** year-on-year to **RMB 2.029 billion**[42](index=42&type=chunk) Geophysical Survey Workload | Business Type | Unit | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | :--- | | 2D Acquisition | km | 3,353 | 9,652 | (65.3%) | | 3D Acquisition | sq km | 18,010 | 14,457 | 24.6% | | Ocean Bottom Cable (OBC) | sq km | 1,801 | 943 | 91.0% | | Ocean Bottom Node (OBN) | sq km | 641 | 0 | N/A | [Key Subsidiaries](index=21&type=section&id=Key%20Subsidiaries) Key subsidiaries exhibited mixed performance, with BVI Company achieving significant revenue and profit growth to turn profitable, while Oilfield Chemical, Americas Company, CNA, and COSL Singapore Limited experienced revenue and profit declines, with CNA and COSL Singapore Limited incurring substantial equipment impairment losses due to challenging overseas markets - BVI Company achieved operating revenue of **RMB 2.523 billion** in 2021, a year-on-year increase of **61.2%**; net profit was **RMB 274 million**, compared to a loss of RMB 58 million in the same period last year[45](index=45&type=chunk) - CNA Company's revenue decreased by **85.9%** year-on-year to **RMB 414 million**, with net loss expanding to **RMB 2.271 billion**, including **RMB 1.454 billion** in equipment impairment losses[46](index=46&type=chunk) - COSL Singapore Limited's revenue decreased by **37.0%** year-on-year to **RMB 1.540 billion**, with net loss expanding to **RMB 1.028 billion**, including **RMB 485 million** in equipment impairment losses[46](index=46&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) In 2021, the group's total revenue slightly increased by 0.8%, but operating expenses rose by 11.7% due to higher employee compensation and property, plant, and equipment impairment losses, resulting in a 62.8% decline in operating profit, while total assets and liabilities slightly decreased [Consolidated Income Statement Analysis](index=22&type=section&id=Consolidated%20Income%20Statement%20Analysis) In 2021, total revenue was RMB 29.17 billion, up 0.8%, with domestic revenue growing 14.1% and international revenue declining 37.7%, while operating expenses increased 11.7% to RMB 28.18 billion, leading to a 62.8% drop in operating profit and an 88.2% decline in annual profit Revenue by Business Segment (RMB million) | Business Segment | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Drilling Services | 8,767.7 | 11,456.8 | (23.5%) | | Oilfield Services | 15,067.9 | 13,304.7 | 13.3% | | Marine Support Services | 3,303.7 | 2,915.2 | 13.3% | | Geophysical Survey and Engineering Survey Services | 2,029.2 | 1,248.6 | 62.5% | | **Total** | **29,168.5** | **28,925.3** | **0.8%** | Key Operating Expense Items (RMB million) | Item | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Employee Compensation Costs | 6,030.2 | 4,897.1 | 23.1% | | Subcontracting Expenses | 5,643.2 | 4,768.5 | 18.3% | | Impairment Losses on Property, Plant and Equipment | 2,011.3 | 1,447.8 | 38.9% | | **Total Operating Expenses** | **28,184.5** | **25,221.4** | **11.7%** | - The Board recommended a total annual dividend of **RMB 0.15 per share** (tax inclusive), comprising a **RMB 0.02 per share** annual dividend and a **RMB 0.13 per share** special dividend[70](index=70&type=chunk) [Consolidated Statement of Financial Position Analysis](index=28&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20Analysis) As of year-end 2021, the group's total assets decreased by 3.5% to RMB 73.31 billion, total liabilities decreased by 5.8% to RMB 35.10 billion, and total equity decreased by 1.2% to RMB 38.22 billion, primarily due to a significant increase in other non-current assets from new large-denomination deposits and reclassification of long-term bonds to current liabilities - As of December 31, 2021, total assets decreased by **3.5%** year-on-year to **RMB 73.31 billion**, and total liabilities decreased by **5.8%** year-on-year to **RMB 35.10 billion**[71](index=71&type=chunk) - Key changes in assets included a **1034.0%** increase in other non-current assets due to new large-denomination deposits, and a **571.5%** increase in other current assets from year-end fund purchases[72](index=72&type=chunk)[73](index=73&type=chunk) - Key changes in liabilities included a **148.8%** increase in long-term bonds due within one year (current liabilities), with a corresponding **38.4%** decrease in long-term bonds (non-current liabilities)[73](index=73&type=chunk) [Consolidated Cash Flow Statement Analysis](index=30&type=section&id=Consolidated%20Cash%20Flow%20Statement%20Analysis) In 2021, net cash inflow from operating activities remained stable at RMB 7.42 billion, while net cash outflow from investing activities expanded to RMB 4.73 billion due to increased purchases of wealth management products, and net cash outflow from financing activities significantly increased to RMB 4.20 billion due to no long-term bond issuance Cash Flow Statement Summary (RMB million) | Item | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 7,418.3 | 7,538.9 | | Net Cash Outflow from Investing Activities | (4,727.7) | (3,337.2) | | Net Cash Outflow from Financing Activities | (4,196.1) | (727.1) | | **Cash and Cash Equivalents at Year-end** | **5,006.4** | **6,583.7** | [Capital Expenditures and Operating Plan](index=31&type=section&id=Capital%20Expenditures%20and%20Operating%20Plan) In 2021, the group's capital expenditures decreased by 12.9% to RMB 3.445 billion, primarily in oilfield technology services, falling below initial plans due to the pandemic and cost-efficiency efforts, with 2022 capital expenditure projected at RMB 4.16 billion for production base construction, equipment upgrades, and R&D 2021 Capital Expenditures (RMB million) | Business Segment | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Drilling Services | 819.5 | 869.0 | (5.7%) | | Oilfield Services | 1,932.1 | 1,879.8 | 2.8% | | Marine Support Services | 315.5 | 726.1 | (56.5%) | | Geophysical Survey and Engineering Survey Services | 378.3 | 481.5 | (21.4%) | | **Total** | **3,445.4** | **3,956.4** | **(12.9%)** | - Anticipated capital expenditures for 2022 are approximately **RMB 4.16 billion**, primarily allocated to production base construction, equipment and technical facility upgrades, and technology R&D investments[79](index=79&type=chunk) [2022 Business Outlook](index=32&type=section&id=2022%20Business%20Outlook) For 2022, global economic growth is expected to slow, but oil prices will remain moderately high, driving continued increases in global upstream E&P investment, as the company focuses on its core oil and gas E&P business while accelerating new energy development and pursuing integration, internationalization, and regional development strategies - Global upstream exploration and development investment is projected to continue increasing in 2022, with the global oilfield services market size reaching **USD 219 billion**[80](index=80&type=chunk) - In 2022, the company will focus on six areas: developing its core oil and gas E&P business, fostering new energy industries, integrating innovation with industry, promoting integrated operations, implementing internationalization strategies, and aligning with national regional development strategies[80](index=80&type=chunk) Corporate Governance Report [Corporate Governance Overview](index=33&type=section&id=Corporate%20Governance%20Overview) During the reporting period, the company complied with Hong Kong's Corporate Governance Code and CSRC regulations, enhancing its governance in 2021 through strengthened risk management, optimized internal controls, regulatory adaptation, and deepened information disclosure, earning market recognition and ESG awards - The company has complied with the principles and code provisions of the Corporate Governance Code in Appendix 14 of the Listing Rules[81](index=81&type=chunk) - Corporate governance improvements in 2021 included strengthening external and strategic risk assessment, optimizing risk prevention systems, refining Board management authority, and deepening information disclosure and inside information management[81](index=81&type=chunk) [Board and Committee Operations](index=34&type=section&id=Board%20and%20Committee%20Operations) During the reporting period, the Board convened five meetings to deliberate on significant matters including financial reports and director elections, while its Audit, Remuneration and Appraisal, and Nomination Committees, all chaired by independent non-executive directors, effectively performed their oversight functions - The Chairman and CEO roles are held by Mr Zhao Shunqiang, an arrangement the Board believes ensures effective strategy formulation and implementation, with all major decisions subject to Board and management discussion, without compromising checks and balances[91](index=91&type=chunk) - The Audit Committee, comprising three independent non-executive directors, held four meetings during the reporting period, reviewing quarterly and annual financial reports, internal control reports, and making recommendations on matters such as auditor changes[94](index=94&type=chunk)[95](index=95&type=chunk) - The Remuneration and Appraisal Committee held two meetings to review executive remuneration and performance appraisal indicators[93](index=93&type=chunk) - The Nomination Committee held four meetings to discuss matters such as director nominations, Chairman election, and board diversity policy[93](index=93&type=chunk) General Meetings Overview [2021 Annual General Meeting](index=45&type=section&id=2021%20Annual%20General%20Meeting) In 2021, the company held four general meetings, including the annual general meeting, two class shareholder meetings, and one extraordinary general meeting, where various important proposals were approved, such as the 2020 financial report, profit distribution, auditor change, share issuance and repurchase authorizations, and new director and supervisor appointments - The 2020 Annual General Meeting (held on June 1, 2021) approved proposals including the 2020 financial report, profit distribution plan, auditor change, authorization for share issuance and repurchase, and the appointment of Ms Zhao Lijuan as an independent non-executive director[106](index=106&type=chunk) - The First Extraordinary General Meeting of 2021 (held on December 28, 2021) approved the appointments of Mr Yu Feng as an executive director, Mr Wu Wenlai and Mr Liu Zongzhao as non-executive directors, and the re-appointment of Mr Cheng Xinsheng as a supervisor[108](index=108&type=chunk) 2021 Sustainability Report [Sustainability Strategy and Performance](index=49&type=section&id=Sustainability%20Strategy%20and%20Performance) The company integrates sustainability into its corporate strategy, focusing on five key areas: technology-driven, cost-leading, integration, internationalization, and regional development, achieving progress in market, social, and environmental performance in 2021, despite a profit decline, and earning multiple ESG honors - The company fully focuses on five corporate strategies: technology-driven, cost-leading, integration, internationalization, and regional development[112](index=112&type=chunk)[113](index=113&type=chunk) 2021 Key Sustainability Performance | Indicator | Unit | 2021 | | :--- | :--- | :--- | | Social Contribution Per Share | RMB | 1.75 | | International Revenue Share | % | 16 | | Total Tax Paid | RMB million | 14,900.00 | | Investment in COVID-19 Prevention and Control | RMB million | 72.31 | | Charitable Donations and Employee Assistance | RMB million | 24.76 | | Environmental Investment | RMB million | 64.12 | | Energy Savings | tons of standard coal | 9,600.00 | [Corporate Governance and Compliance](index=56&type=section&id=Corporate%20Governance%20and%20Compliance) The company integrates Party leadership into its governance, strictly adheres to laws and regulations, and has established a comprehensive internal control and risk management system, continuously optimizing policies, training, and assessments, while enhancing anti-fraud capabilities through integrity risk screening, improved overseas supervision, and awareness education - The company has established **14 major internal control systems** covering headquarters and all domestic and overseas units, continuously optimizing its policies[87](index=87&type=chunk) - A comprehensive risk management organizational system has been established, with quarterly 'Comprehensive Risk Management Reports' submitted to the Board, continuously enhancing risk identification, early warning, and response capabilities[88](index=88&type=chunk) - The company continuously conducts anti-fraud education, holding **575 anti-fraud training sessions** in 2021, with **21,380 participants**[162](index=162&type=chunk)[163](index=163&type=chunk) [Health, Safety, Environment (HSE)](index=73&type=section&id=%E5%AE%89%E5%85%A8%E7%92%B0%E4%BF%9D) The company pursues a 'Four Zeros' QHSE strategy (zero personnel injuries, zero environmental pollution, zero property losses, zero brand impact) with a unified global management system, achieving an OSHA recordable incident rate of 0.08 in 2021, while actively promoting energy conservation, emissions reduction, and waste management with RMB 64.12 million in environmental investment 2021 Safety Performance | Indicator | Unit | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Number of Safety Accidents | cases | 30 | 26 | | OSHA Recordable Incident Rate | % | 0.08 | 0.06 | | Employee Fatalities | persons | 1 | 1 | - The company actively addresses climate change and promotes greenhouse gas emission reduction, achieving a **35,060-ton reduction** in CO2/greenhouse gas emissions in 2021[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk) [Employees and Society](index=89&type=section&id=Employees%20and%20Society) The company adheres to a people-oriented approach, safeguarding employee rights, offering competitive compensation, and expanding career development paths, with a 69% employee localization rate in 2021, while actively fulfilling social responsibilities through significant investments in pandemic prevention (RMB 72.3 million) and rural revitalization (RMB 21.6 million), and participating in 16 maritime rescues - In 2021, **2,685 employees** received promotions, and the company completed **7,951 training programs** with **1.96 million participant-times** throughout the year[252](index=252&type=chunk)[255](index=255&type=chunk) - In 2021, the company invested **RMB 72.3076 million** in COVID-19 prevention and control and **RMB 21.6053 million** in rural revitalization[272](index=272&type=chunk)[278](index=278&type=chunk) - In 2021, the company participated in or assisted in **16 maritime search and rescue operations**, saving **128 distressed individuals**[288](index=288&type=chunk) Directors, Supervisors, Senior Management, and Employees [Personnel Changes and Remuneration](index=107&type=section&id=Personnel%20Changes%20and%20Remuneration) During the reporting period, several directors, supervisors, and senior management personnel changed due to work reassignments or term expirations, including the Chairman, CEO, CFO, Company Secretary, and various directors, with their remuneration totaling RMB 12.9137 million in 2021, determined by their responsibilities and company performance - During the reporting period, Mr Qi Meisheng resigned as Chairman and CEO, with Mr Zhao Shunqiang taking over the roles[332](index=332&type=chunk) - The total pre-tax remuneration actually received by all directors, supervisors, and senior management personnel at the end of the reporting period was **RMB 12.9137 million**[308](index=308&type=chunk)[329](index=329&type=chunk) - The company has established a demand-oriented, multi-level, differentiated three-dimensional training model to serve business development needs[337](index=337&type=chunk) Directors' Report [Operating Risks and Responses](index=123&type=section&id=Operating%20Risks%20and%20Responses) The Board identified key risks including market competition, HSE, domestic and international business expansion, exchange rate fluctuations, asset impairment, accounts receivable recovery, and human resources, establishing a Board-centric comprehensive risk management system with continuous improvements in risk identification, early warning, response, and emergency mechanisms - The company faces key risks including market competition, health, safety, and environmental (HSE) risks, domestic and international business expansion and operational risks, exchange rate risks, asset impairment risks, accounts receivable recovery risks, and human resource risks[339](index=339&type=chunk)[340](index=340&type=chunk) - The company has established a comprehensive risk management organizational system centered around the Board, and formulated policies such as the 'Comprehensive Risk Management Measures' to enhance its ability to prevent and mitigate significant risks[341](index=341&type=chunk) [Performance, Dividends, and Connected Transactions](index=125&type=section&id=Performance,%20Dividends,%20and%20Connected%20Transactions) For 2021, the Board recommended a total dividend of RMB 0.15 per share (tax inclusive), including a special dividend of RMB 0.13, resulting in a payout ratio of 228.5%, while the company exhibited high customer and supplier concentration, with significant ongoing connected transactions with its controlling shareholder, CNOOC Group, approved by independent shareholders and within annual limits Dividend Distribution for the Past Three Years (RMB thousand) | Dividend Year | Dividend Per 10 Shares (RMB) (Tax Inclusive) | Cash Dividend Amount (Tax Inclusive) | Net Profit Attributable to Shareholders of Listed Company | Ratio to Net Profit (%) | | :--- | :--- | :--- | :--- | :--- | | 2021 | 1.50 | 715,739 | 313,176 | 228.54 | | 2020 | 1.70 | 811,171 | 2,703,187 | 30.01 | | 2019 | 1.60 | 763,455 | 2,502,238 | 30.51 | - In 2021, sales to the top five customers accounted for **88.3%** of total sales, with the largest customer accounting for **84.2%**[350](index=350&type=chunk) - The company has ongoing connected transactions with its controlling shareholder, CNOOC Group; in 2021, the group's transactions for providing oilfield services to CNOOC and its subsidiaries amounted to **RMB 24.525 billion**, which was below the annual cap of **RMB 52.058 billion**[366](index=366&type=chunk)[367](index=367&type=chunk)[369](index=369&type=chunk) Supervisors' Report [Supervisors' Work and Independent Opinions](index=139&type=section&id=Supervisors'%20Work%20and%20Independent%20Opinions) In 2021, the Board convened five meetings, attending all Board and general meetings, to supervise the company's decision-making, legal operations, financial status, connected transactions, internal controls, and director/senior management performance, concluding that the company operated compliantly with reliable financial reports, fair connected transactions, effective internal controls, and diligent directors/senior management - The Board issued an independent opinion on the company's legal operations, affirming that decision-making procedures complied with regulations and articles of association, with no violations found among directors or senior management[386](index=386&type=chunk) - The Board believes the company's financial reports objectively and fairly reflect its financial position and operating results[387](index=387&type=chunk) - The Board considers the company's internal control evaluation report comprehensive, objective, and consistent with the company's actual situation[389](index=389&type=chunk) Significant Matters [Guarantees and Auditor Change](index=145&type=section&id=Guarantees%20and%20Auditor%20Change) As of the end of the reporting period, the company's total guarantees to subsidiaries amounted to RMB 29.678 billion, representing 77.67% of its net assets, with RMB 28.607 billion provided to subsidiaries with a debt-to-asset ratio exceeding 70%, and the company changed its domestic and overseas auditors from Deloitte to Ernst & Young on June 1, 2021 Company's Total Guarantees (RMB) | Item | Amount | | :--- | :--- | | Total Guarantee Balance to Subsidiaries at Period-end (B) | 29,677,821,570 | | Total Guarantees (A+B) | 29,684,395,260 | | Ratio of Total Guarantees to Company's Net Assets (%) | 77.67% | | Guarantees Provided to Entities with Debt-to-Asset Ratio Exceeding 70% (D) | 28,606,703,970 | - On June 1, 2021, the company changed its auditors, with Deloitte Touche Tohmatsu China replaced by Ernst & Young Hua Ming LLP for domestic audits, and Deloitte Touche Tohmatsu replaced by Ernst & Young for overseas audits[402](index=402&type=chunk) Independent Auditor's Report and Financial Statements [Independent Auditor's Report](index=147&type=section&id=Independent%20Auditor's%20Report) Ernst & Young issued an unqualified audit opinion on the company's 2021 consolidated financial statements, affirming that they fairly represent the group's financial position and operating results, with key audit matters focusing on impairment assessments of property, plant, and equipment and accounts receivable, involving significant management judgments and estimates - The auditor issued a **standard unqualified opinion** on the financial statements[404](index=404&type=chunk) - Key Audit Matter One: Impairment assessment of property, plant, and equipment; due to intense competition in the international oilfield services market, some large equipment had low daily rates and utilization, indicating impairment, leading management to assess and recognize an impairment loss of **RMB 2.011 billion**[407](index=407&type=chunk) - Key Audit Matter Two: Impairment assessment of accounts receivable; management individually assessed expected credit losses for significant accounts receivable with specific credit risks, involving significant estimates and judgments[409](index=409&type=chunk) [Consolidated Financial Statements](index=153&type=section&id=Consolidated%20Financial%20Statements) In 2021, the company's revenue slightly increased by 0.8% to RMB 29.168 billion, but annual profit significantly declined to RMB 322 million due to increased operating expenses, particularly RMB 2.011 billion in property, plant, and equipment impairment losses, with total assets at RMB 73.312 billion and total liabilities at RMB 35.095 billion at year-end Consolidated Income Statement Summary (RMB thousand) | Item | 2021 | 2020 | | :--- | :--- | :--- | | Revenue | 29,168,479 | 28,925,315 | | Operating Profit | 1,541,346 | 4,141,913 | | Profit Before Tax | 1,089,550 | 3,378,740 | | **Annual Profit** | **322,050** | **2,718,316** | | Attributable to Owners of the Company | 313,176 | 2,703,187 | Consolidated Statement of Financial Position Summary (RMB thousand) | Item | 2021年12月31日 | 2020年12月31日 | | :--- | :--- | :--- | | Non-current Assets | 48,030,004 | 49,619,558 | | Current Assets | 25,281,704 | 26,322,750 | | **Total Assets** | **73,311,708** | **75,942,308** | | Current Liabilities | 22,008,727 | 16,875,924 | | Non-current Liabilities | 13,086,651 | 20,377,576 | | **Total Liabilities** | **35,095,378** | **37,253,500** | | **Total Equity** | **38,216,330** | **38,688,808** | Consolidated Cash Flow Statement Summary (RMB thousand) | Item | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 7,418,247 | 7,538,920 | | Net Cash Used in Investing Activities | (4,727,682) | (3,337,166) | | Net Cash Used in Financing Activities | (4,196,145) | (727,053) | | **Net (Decrease)/Increase in Cash and Cash Equivalents** | **(1,505,580)** | **3,474,701** |

Financial Performance - In the first half of 2021, the company achieved operating revenue of RMB 12.723 billion, a decrease of 12.2% compared to RMB 14.497 billion in the same period of 2020[8]. - The net profit for the first half of 2021 was RMB 809 million, down 53.0% from RMB 1.723 billion in the first half of 2020[8]. - The company reported an operating profit of RMB 1.355 billion, a decline of 38.9% from RMB 2.222 billion in the same period of 2020[8]. - The total operating revenue for the first half of 2021 was RMB 12,723.0 million, a decrease of RMB 1,773.7 million, or 12.2% year-on-year, attributed mainly to a 29.5% decline in drilling services revenue[26]. - The company's operating expenses for the first half of 2021 were RMB 11,526.7 million, a reduction of RMB 925.4 million, or 7.4% compared to the same period last year[29]. - The company's net profit for the first half of 2021 was RMB 808.5 million, down from RMB 1,722.6 million in the same period last year[39]. - Basic earnings per share decreased to RMB 0.168 from RMB 0.3593 in the previous year[40]. - The company reported a decrease in financial liabilities included in trade and other payables from RMB 9.08 billion to RMB 7.81 billion[65]. - The company reported a profit of RMB 801,457 thousand for the first half of 2021, compared to RMB 1,714,199 thousand in the same period of 2020, indicating a decline of 53.32%[80]. - The total comprehensive income for the first half of 2021 was RMB 1,754,675 thousand, down from RMB 1,743,639 thousand in the first half of 2020, a decrease of 0.18%[80]. Operational Highlights - The company successfully completed over 600 well operations using its rotary steering drilling technology, achieving a first-time success rate of 90.3%[12]. - The drilling services segment reported revenue of RMB 4,347.8 million, a decrease of 29.5% compared to RMB 6,171.0 million in the same period last year[18]. - The total operating days for drilling platforms were 6,578 days, a reduction of 1,084 days or 14.1% year-on-year[19]. - The average daily revenue for self-elevating drilling platforms increased to USD 7.6, up 20.6% from USD 6.3[20]. - The oilfield technical services segment generated revenue of RMB 6,020.0 million, remaining relatively stable compared to RMB 6,050.4 million in the previous year[21]. - The company's vessel services revenue was RMB 1,535.9 million, with owned vessels contributing RMB 1,039.5 million[22]. - The total operating days for the owned vessel fleet were 14,806 days, a decrease of 735 days or 4.7% year-on-year[23]. - The calendar day utilization rate for the vessel services segment decreased by 4.1 percentage points to 92.9%[22]. - The company has successfully developed and patented several new technologies, including a high-temperature cable logging system and synthetic-based drilling fluids[21]. Strategic Initiatives - The company plans to focus on "technology-driven," "cost leadership," "integration," "internationalization," and "regional development" strategies for future growth[14]. - The company aims to enhance its risk management mechanisms and improve corporate governance to adapt to complex external environments[11]. - The company is committed to green development and aims to achieve carbon peak and carbon neutrality goals while upgrading its business and innovating technology[14]. - The company continues to enhance its cost control and green development initiatives across its operations[22]. - The company plans to enhance its R&D capabilities and focus on strategic partnerships to improve service efficiency and reduce costs[51]. - The company is focused on key technology research and development to stabilize the domestic market and expand overseas[66]. Market Conditions - The global oilfield services market remains oversaturated, with many exploration and development projects being delayed or canceled[16]. - The company continues to benefit from China's "Seven-Year Action Plan" for increasing reserves and production, contributing to a relatively stable domestic oilfield service market[16]. - The company anticipates increased upstream investment and opportunities in the oilfield service market in the second half of 2021[66]. - The domestic oilfield service market remains relatively stable, supported by the national "Seven-Year Action Plan" for increasing reserves and production[190]. Financial Position - As of June 30, 2021, total assets were RMB 74,789.7 million, a decrease of RMB 1,152.6 million or 1.5% from RMB 75,942.3 million at the end of 2020[41]. - Cash and cash equivalents decreased to RMB 5,126.1 million from RMB 6,583.7 million at the beginning of the year, with a net cash outflow from operating activities of RMB 1,888.8 million[43]. - The capital debt ratio improved to 42% as of June 30, 2021, down from 43% at the end of 2020[65]. - The company employed a total of 14,477 staff as of June 30, 2021, with a performance-oriented compensation system in place[60]. - The company has no significant asset pledges as of June 30, 2021[68]. - The company reported a foreign exchange loss of RMB 82,086 thousand, contrasting with a foreign exchange gain of RMB 60,502 thousand in the same period last year[75]. - The company’s total liabilities increased to RMB 36,100,591 thousand from RMB 35,253,500 thousand, marking an increase of 2.41%[78]. Technological Advancements - The company has developed and commercialized the "Hailiang" cable acquisition equipment and the "Haitu" comprehensive navigation system, filling a technological gap in the country[24]. - The company achieved a high operational efficiency of 95% in the dual-vessel seismic acquisition project, which is the most challenging domestic geophysical cable operation to date[24]. - The company has made significant technological advancements, including the development of high-pressure measurement systems and environmentally sensitive drilling fluids, contributing to successful operations in challenging environments[186]. International Expansion - The company has expanded its international operations, securing new projects in Southeast Asia, the Middle East, Africa, the Americas, and Europe[13]. - The company has signed its first cooperation order for drilling fluid and cementing services in North America, indicating progress in international market expansion[195]. - The company holds 100% equity in several subsidiaries, including COSL (Australia) Pty Ltd. and COSL Drilling Strike Pte. Ltd., enhancing its operational footprint in key markets[83]. - The company has a significant presence in international markets, including Indonesia, Singapore, and the Middle East, which supports its growth strategy[84].