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].

Financial Performance - Total revenue for 2020 was RMB 28,925.3 million, a decrease of 6.9% compared to RMB 31,075.8 million in 2019[10] - Operating profit for 2020 was RMB 4,141.9 million, an increase of 6.3% from RMB 3,895.2 million in 2019[10] - Annual profit for 2020 was RMB 2,718.3 million, up 7.5% from RMB 2,528.0 million in 2019[10] - Basic earnings per share for 2020 were RMB 56.65, an increase of 8.0% compared to RMB 52.44 in 2019[10] - The company's total operating profit for 2020 was RMB 4,141.9 million, an increase of RMB 246.7 million or 6.3% compared to RMB 3,895.2 million in 2019[63] - The company's annual profit for 2020 was RMB 2,718.3 million, an increase of RMB 190.3 million compared to RMB 2,528.0 million in 2019[70] - The company's total operating expenses for 2020 were RMB 25,221.4 million, a reduction of RMB 2,311.3 million or 8.4% from RMB 27,532.7 million in 2019[58] - The impairment loss on property, plant, and equipment increased significantly by 499.5% to RMB 1,447.8 million in 2020[59] Assets and Liabilities - Total assets at the end of 2020 were RMB 75,942.3 million, a slight decrease of 0.2% from RMB 76,101.8 million at the end of 2019[12] - Total equity at the end of 2020 was RMB 38,688.8 million, an increase of 4.8% from RMB 36,910.3 million at the end of 2019[12] - Total liabilities decreased by RMB 1,938.0 million or 4.9% to RMB 37,253.5 million compared to RMB 39,191.5 million at the end of 2019[72] Revenue Breakdown - Domestic business revenue for 2020 was RMB 21,513.5 million, while international business revenue was RMB 7,411.8 million[10] - Domestic revenue accounted for 74.4% of total revenue, with RMB 21,513.5 million in 2020, down 11.0% from RMB 24,159.9 million in 2019[54] - International revenue increased by 7.2% to RMB 7,411.8 million, compared to RMB 6,915.9 million in the previous year[54] Operational Performance - In 2020, the company achieved significant operational performance despite challenges from the COVID-19 pandemic and low oil prices, creating substantial value returns for shareholders[13] - The drilling services segment generated revenue of RMB 11,456.8 million, representing a 5.8% increase from RMB 10,824.8 million in 2019[28] - The oilfield technical services segment generated revenue of RMB 13,304.7 million in 2020, a decrease of 11.5% compared to RMB 15,030.0 million in 2019[34] - The group’s exploration and engineering survey services revenue fell by 42.4% to RMB 1,248.6 million in 2020, compared to RMB 2,168.1 million in 2019[44] Innovation and Technology - The company was granted 84 patents in 2020, including 38 invention patents, and received 6 provincial and ministerial-level scientific and technological awards[22] - The cumulative drilling footage reached over 520,000 meters, with a breakthrough in high-speed mud transmission technology increasing transmission rates by 24 times[22] - The company emphasized innovation-driven development, focusing on core technology breakthroughs and resource matching to enhance competitiveness[14] - The company is committed to technological development, focusing on optimizing its technology system and accelerating the industrialization of independent technology products[200] Sustainability and Social Responsibility - The company is committed to sustainable development, balancing economic, social, and environmental growth[4] - The company is committed to green and low-carbon production models, entering clean energy sectors such as wind power and hydrate[131] - The company has made significant contributions to poverty alleviation efforts, aligning with national goals[156] - The company invested a total of 1.766 million yuan in 2020 for educational poverty alleviation, including restoring damaged campuses and improving teaching conditions[160] Governance and Risk Management - The company focused on enhancing its governance and internal control management, adapting to new capital market requirements and improving risk management strategies[15] - The company established a comprehensive internal control system covering 14 major areas to ensure compliance and effectiveness, with no significant deficiencies reported[95] - The risk management framework includes annual risk identification and assessment, with quarterly reports submitted to the board, ensuring a closed-loop management of significant risks[96] - The company emphasizes risk management and has implemented comprehensive risk control measures in response to the pandemic[86] Market Expansion and Strategy - The company aims to maintain a strong market share in China while actively expanding into overseas markets across Asia-Pacific, Middle East, Americas, Europe, Africa, and the Far East[4] - The company has made breakthroughs in new businesses, new markets, and new customers in its international operations[8] - The company plans to enhance service quality and strengthen production and operational capabilities in 2021, focusing on technological development and international expansion[23] - The company will actively explore overseas markets and embrace digital technology to promote the transformation and upgrading of traditional oilfield services[84] Employee and Community Engagement - The employee turnover rate for Chinese nationals decreased to 0.8% in 2020 from 1.6% in 2019[150] - The company achieved a 100% coverage rate for social insurance and labor contracts in 2020[150] - The company helped 113 local residents gain employment through its poverty alleviation workshop, with 62 being registered impoverished households, accounting for 55%[162] Cash Flow and Investments - The company's cash and cash equivalents increased to RMB 6,583.7 million, a 95.7% increase from RMB 3,363.6 million in 2019, primarily due to the issuance of long-term bonds[75] - Operating activities generated a net cash inflow of RMB 7,538.9 million, representing an 8.2% year-on-year increase, mainly driven by higher cash receipts from services and sales[76] - Investment activities resulted in a net cash outflow of RMB 3,337.2 million, an increase of RMB 2,185.5 million compared to the previous year, largely due to increased cash outflows for purchasing property, plant, and equipment[77] Corporate Governance - The board of directors held a total of six meetings during the year, ensuring compliance with legal and regulatory requirements[92] - The company has three independent directors with extensive experience in finance, law, and financial reporting, who effectively fulfilled their responsibilities during the reporting period[93] - The company conducted a review of shareholder meeting resolutions, confirming compliance with all requirements during the reporting period[97] - The company has appointed Mr. Qi Meisheng as both Chairman and CEO, which differs from the code's recommendation for separation of these roles, but the board believes this structure meets current operational needs[99]

Financial Performance - The company achieved a net profit of RMB 2,718,315,604 for the year 2020, with a net profit attributable to shareholders of RMB 2,703,186,710[4]. - The company's operating revenue for 2020 was RMB 28,959.2 million, a decrease of 7.0% compared to RMB 31,135.1 million in 2019[20]. - The net profit attributable to shareholders for 2020 was RMB 2,703.2 million, representing an increase of 8.0% from RMB 2,502.2 million in 2019[20]. - The net cash flow from operating activities for 2020 was RMB 7,545.2 million, an increase of 8.3% compared to RMB 6,968.3 million in 2019[20]. - The company's total assets at the end of 2020 were RMB 75,942.3 million, a slight decrease of 0.2% from RMB 76,101.8 million at the end of 2019[20]. - The basic earnings per share for 2020 was RMB 0.57, an increase of 9.62% from RMB 0.52 in 2019[21]. - The weighted average return on equity for 2020 was 7.20%, an increase of 0.17 percentage points from 7.03% in 2019[21]. - The company reported a total of RMB 391.1 million in non-recurring gains and losses for 2020, compared to RMB 355.4 million in 2019[25]. - The company’s total revenue for 2020 was RMB 28,959.2 million, reflecting a year-on-year decrease of 7.0%[58]. - Net profit for 2020 was RMB 2,718.3 million, an increase of RMB 190.3 million compared to the previous year[58]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.17 per share, totaling RMB 811,170,640, based on a total share capital of 4,771,592,000 shares[4]. - In 2020, the company distributed a cash dividend of 1.70 RMB per 10 shares, amounting to 811.17 million RMB, which represents 30.01% of the net profit attributable to ordinary shareholders[90]. - The company is committed to maintaining a minimum annual dividend payout of 20% of its net profit, subject to board approval[89]. Risk Management - Major risks include market competition risks due to the incomplete recovery of the international oil and gas industry and health, safety, and environmental risks specific to offshore oilfield services[7]. - The company has implemented a risk emergency mechanism to enhance its risk resistance capabilities and improve governance efficiency[35]. - The company is focusing on risk management, including market competition, health and safety, and foreign exchange risks[85][86]. - The company has established a comprehensive risk management system to identify and respond to potential risks in its operations[87]. Operational Highlights - The company operates in various sectors including drilling services, oilfield technical services, and marine services, with a presence in regions such as Asia-Pacific, the Middle East, and Europe[27]. - The company has over 50 years of offshore operation experience and a complete service chain, enhancing its competitive edge in the oilfield services sector[31]. - The company aims to accelerate the transition to green and low-carbon equipment, responding to the dual challenges of the pandemic and low oil prices[34]. - The company has established a mature global service network and maintained stable relationships with major international and national oil companies, effectively expanding its international market presence[32]. Research and Development - The company obtained 84 authorized patents in 2020, including 38 invention patents[41]. - The company has implemented cost control measures, resulting in a gross margin increase despite a challenging market environment[62]. - Research and development expenses totaled RMB 1,311.8 million, accounting for 4.5% of total revenue, with 1,689 R&D personnel, representing 11.6% of the total workforce[67]. - The company achieved breakthroughs in several core technologies, including a self-developed rotary steering drilling and measurement system with a cumulative drilling footage exceeding 520,000 meters[69]. Corporate Governance - The company has maintained a long-term commitment to quality management in compliance with national regulations since its initial public offering[92]. - The company has not experienced any significant changes in accounting estimates during the reporting period[93]. - The company has engaged Deloitte as its domestic and overseas auditor for the 2020 fiscal year, with an audit period of 7 years[95]. - The company has established a comprehensive internal control system covering 14 major areas to ensure compliance and effectiveness, with no significant deficiencies reported in 2020[169]. Sustainability Initiatives - The company was recognized in multiple sustainability indices and awarded the "2020 China Top 100 Enterprises Award," reflecting its commitment to sustainable development[37]. - The company has implemented a Green Development Action Plan, focusing on low-carbon development and environmental protection measures[121]. - The company aims to achieve a 15% reduction in carbon emissions by 2025 as part of its sustainability strategy[142]. Market Outlook - For 2021, global upstream exploration and development investment is projected to increase to $320.5 billion, a 6.11% rise from 2020[77]. - The average Brent oil price is forecasted to exceed 50 USD per barrel, indicating a cautious investment climate in the upstream sector[84]. - The global economic growth rate is projected at 5.5% for 2021, with China's growth rate at 8.1%[84]. Employee and Community Engagement - The company recruited 337 individuals, including 92 graduates from impoverished areas, as part of its employment poverty alleviation initiative[119]. - A total of 203.1 million was allocated for internal employee assistance programs during the pandemic[119]. - The company donated 56,500 in cash and materials during the peak of the pandemic[119]. Shareholder Information - The total number of ordinary shares as of December 31, 2020, is 4,771,592,000, with China National Offshore Oil Corporation holding 2,410,849,300 shares, accounting for 50.53% of the total[124]. - The number of ordinary shareholders increased from 58,485 to 65,072 during the reporting period[128]. - The controlling shareholder is China National Offshore Oil Corporation, which holds 90% of the shares, while the National Social Security Fund holds 10%[134].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) The company's management ensures the report's authenticity and completeness, noting the report is unaudited [Statement on Report Authenticity and Audit Status](index=3&type=section&id=Item%201.1-1.4) The company's management guarantees the report's truthfulness and completeness, noting it is unaudited and the chairman was absent from the board meeting - The company's Board of Directors, Supervisory Committee, and senior management ensure the report's content is true, accurate, and complete[4](index=4&type=chunk) - This company's third-quarter report is unaudited[4](index=4&type=chunk) [Company Profile and Operating Performance](index=3&type=section&id=Item%20II.%20Company%20Profile) The company's financial performance in the first three quarters of 2020 remained stable despite challenges, with slight revenue and net profit growth and significant changes in cash flow [Key Financial Data](index=3&type=section&id=Item%202.1%20Key%20Financial%20Data) As of Q3 2020, the company reported slight revenue and net profit growth, a negative operating cash flow due to extended payment cycles, and significant non-recurring gains Key Financial Data for Q1-Q3 2020 (Consolidated Statements) | Indicator | Q1-Q3 2020 | Q1-Q3 2019 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB million) | 21,449.8 | 21,334.8 | 0.5% | | Net Profit Attributable to Shareholders of Listed Company (RMB million) | 2,154.6 | 2,118.8 | 1.7% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) (RMB million) | 1,891.8 | 1,889.6 | 0.1% | | Net Cash Flow from Operating Activities (RMB million) | -734.2 | 1,133.7 | -164.8% | | Basic Earnings Per Share (RMB/share) | 0.45 | 0.44 | 2.3% | | Weighted Average Return on Net Assets | 5.8% | 6.0% | Decrease of 0.2 percentage points | - In the first three quarters of 2020, total non-recurring gains amounted to **RMB 263 million**, primarily comprising government subsidies, wealth management product income, and other non-operating income and expenses[7](index=7&type=chunk) [Shareholder Information](index=4&type=section&id=Item%202.2%20Shareholder%20Information) As of the reporting period, the company had 72,939 shareholders, with China National Offshore Oil Corporation as the controlling shareholder, indicating a highly concentrated equity structure Top Two Shareholders' Holdings | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | China National Offshore Oil Corporation | 2,410,849,300 | 50.53 | | Hong Kong Securities Clearing Company Nominees Limited | 1,808,819,958 | 37.91 | - As of the end of the reporting period, the company had a total of **72,939 shareholders**[8](index=8&type=chunk) [Operating Performance Review](index=6&type=section&id=Item%202.4%20Operating%20Performance%20Review) Despite challenges from the pandemic and low oil prices, the company maintained stable performance in the first three quarters, with increased drilling days but decreased utilization rates for some services - Despite the dual impact of the pandemic and low oil prices, the company achieved **RMB 21.45 billion** in operating revenue and **RMB 2.167 billion** in net profit for the first three quarters, largely consistent with the prior year, through cost reduction and efficiency improvements[12](index=12&type=chunk) Overview of Operating Data by Business Segment (Nine Months Ended September 30, 2020) | Business Segment | Indicator | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Drilling Services** | Total Operating Days | 11,088 | 10,662 | +4.0% | | | Jack-up Rig Calendar Day Utilization Rate | 75.7% | 83.7% | -8.0 percentage points | | | Semi-submersible Rig Calendar Day Utilization Rate | 64.8% | 73.5% | -8.7 percentage points | | **Vessel Services** | Own Fleet Operating Days | 22,863 | 23,156 | -1.3% | | | Own Fleet Calendar Day Utilization Rate | 95.2% | 94.2% | +1.0 percentage points | | **Geophysical Survey Services** | 2D Acquisition (km) | 9,652 | 25,701 | -62.4% | | | 3D Acquisition (sq km) | 14,844 | 26,319 | -43.6% | [Significant Events](index=8&type=section&id=Item%20III.%20Significant%20Events) This section details significant changes in financial statement items, progress on major litigation, and the company's cautious outlook for the full year [Analysis of Significant Changes in Financial Statement Items](index=8&type=section&id=Item%203.1%20Analysis%20of%20Significant%20Changes%20in%20Financial%20Statement%20Items%20and%20Reasons) Several financial statement items experienced significant changes, including a substantial increase in monetary funds due to bond issuance and a shift to negative operating cash flow primarily from extended customer payment cycles - Asset impairment losses amounted to **RMB 869 million**, a significant year-on-year increase of **RMB 859 million**, primarily due to the **RMB 844 million** impairment provision for fixed assets in the current period[19](index=19&type=chunk) - Monetary funds increased by **76.8%** from the beginning of the year to **RMB 6.127 billion**, mainly due to the issuance of **USD 800 million** in bonds during the period[23](index=23&type=chunk) - Accounts receivable increased by **47.2%** from the beginning of the year to **RMB 15.167 billion**, primarily due to extended customer payment cycles affected by the pandemic and oil price fluctuations[26](index=26&type=chunk) - Net cash flow from operating activities was **-RMB 734 million**, compared to a net inflow of **RMB 1.134 billion** in the prior year, primarily due to a year-on-year increase of **RMB 2.917 billion** in cash paid for goods and services, despite receiving **RMB 1.31 billion** in contract termination settlement funds[38](index=38&type=chunk) [Progress of Significant Litigation](index=12&type=section&id=Item%203.2%20Progress%20of%20Significant%20Events%20Their%20Impact%20and%20Analysis%20of%20Solutions) The company reached an out-of-court settlement with Equinor Energy AS regarding a drilling rig contract dispute, receiving USD 188 million in settlement funds and making related impairment provisions - The company reached an out-of-court settlement with Equinor regarding a drilling rig contract dispute, receiving **USD 188 million** in settlement funds[42](index=42&type=chunk) - The settlement funds were received in the first quarter of 2020, and the company has performed impairment tests and made impairment provisions for related fixed assets[42](index=42&type=chunk) [Performance Outlook](index=13&type=section&id=Item%203.4%20Warning%20and%20Explanation%20of%20Potential%20Loss%20or%20Significant%20Change%20in%20Cumulative%20Net%20Profit%20from%20Year-Beginning%20to%20End%20of%20Next%20Reporting%20Period) The company maintains a cautiously optimistic outlook for the full year, aiming for stable operating performance despite uncertainties, supported by domestic initiatives and internal efficiency measures - The company states that its performance in the first three quarters remained stable, benefiting from the implementation of the domestic 'Seven-Year Action Plan' and the company's efforts in cost reduction and efficiency improvement[43](index=43&type=chunk) - The company will continue to implement various measures to address macroeconomic uncertainties and industry challenges, focusing on safe operations and cost control to ensure stable annual operations[43](index=43&type=chunk) [Financial Statements Appendix](index=14&type=section&id=Item%20IV.%20Appendix) This appendix provides the company's unaudited consolidated and parent company financial statements for the third quarter of 2020 [Financial Statements](index=14&type=section&id=Item%204.1%20Financial%20Statements) This appendix contains the company's unaudited consolidated and parent company financial statements for the third quarter of 2020 [Consolidated Balance Sheet](index=14&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2020, the company's total assets increased by 1.5% to RMB 77.27 billion, while total liabilities remained stable and equity attributable to parent company shareholders grew by 3.6% Key Items from Consolidated Balance Sheet (Unit: RMB billion) | Item | Sept 30, 2020 | Dec 31, 2019 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **77.27** | **76.102** | **+1.5%** | | Current Assets | 26.03 | 23.03 | +13.0% | | Non-current Assets | 51.24 | 53.072 | -3.5% | | **Total Liabilities** | **39.032** | **39.192** | **-0.4%** | | Current Liabilities | 14.834 | 19.829 | -25.2% | | Non-current Liabilities | 24.198 | 19.363 | +25.0% | | **Equity Attributable to Parent Company Shareholders** | **38.054** | **36.734** | **+3.6%** | [Consolidated Income Statement](index=17&type=section&id=Consolidated%20Income%20Statement) For the first three quarters of 2020, operating revenue increased by 0.5% to RMB 21.45 billion, while operating profit decreased by 11.6% due to a significant rise in asset impairment losses, resulting in a 1.7% increase in net profit attributable to parent company shareholders Key Items from Consolidated Income Statement (Unit: RMB billion) | Item | Q1-Q3 2020 | Q1-Q3 2019 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 21.45 | 21.335 | +0.5% | | Total Operating Costs | 18.514 | 18.979 | -2.5% | | Asset Impairment Losses | -8.69 | -0.11 | -7800% | | Operating Profit | 2.521 | 2.853 | -11.6% | | Total Profit | 2.645 | 2.807 | -5.8% | | Net Profit Attributable to Parent Company Shareholders | 2.155 | 2.119 | +1.7% | | Basic Earnings Per Share (RMB) | 0.45 | 0.44 | +2.3% | [Consolidated Cash Flow Statement](index=20&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2020, net cash flow from operating activities turned negative due to increased procurement, while investment cash flow decreased and financing cash flow significantly improved due to bond issuance Key Items from Consolidated Cash Flow Statement (Unit: RMB billion) | Item | Q1-Q3 2020 | Q1-Q3 2019 | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -0.734 | 1.134 | -164.8% | | Net Cash Flow from Investing Activities | 3.878 | 4.739 | -18.2% | | Net Cash Flow from Financing Activities | -0.311 | -3.303 | +90.6% | | Net Increase in Cash and Cash Equivalents | 2.731 | 2.609 | +4.7% |

Financial Performance - In the first half of 2020, the company achieved operating revenue of RMB 14.497 billion, an increase of RMB 0.94 billion or 7% year-on-year[6]. - The net profit for the same period was RMB 1.723 billion, up RMB 0.74 billion or 75% year-on-year[6]. - The company's operating revenue for the first half of 2020 was RMB 14,496.7 million, an increase of RMB 944.6 million year-on-year[14]. - The net profit for the first half of 2020 was RMB 1,722.6 million, an increase of RMB 736.2 million year-on-year[14]. - The operating profit for the first half of 2020 was RMB 2,222.0 million, an increase of RMB 620.9 million compared to the operating profit of RMB 1,601.1 million in the same period last year[33]. - The basic earnings per share for the first half of 2020 were RMB 35.93, compared to RMB 20.39 in the same period last year, reflecting a growth of 76.3%[41]. - The total comprehensive income for the period was RMB 1,754,675 thousand, compared to RMB 939,943 thousand in the same period last year, reflecting an increase of 86.7%[81]. - The company's profit before tax for the six months ended June 30, 2020, was RMB 2,090,688,000, compared to RMB 1,382,122,000 for the same period in 2019, representing a year-on-year increase of 51.2%[126]. Revenue Segmentation - The drilling services revenue for the first half of 2020 was RMB 6,171.0 million, a 37.5% increase from RMB 4,489.2 million in the same period last year[15]. - The oilfield technical services revenue decreased by 8.7% to RMB 6,050.4 million from RMB 6,624.2 million year-on-year[19]. - The company's vessel services revenue increased by 6.5% to RMB 1,534.3 million, with external chartered vessels contributing RMB 541.3 million[21]. - Revenue from drilling services was RMB 6,173,943 thousand, while oilfield technical services generated RMB 6,059,880 thousand, indicating a strong performance in both segments[107]. - Revenue from the China National Offshore Oil Corporation (CNOOC) group for drilling services was RMB 3,029,551 thousand, oilfield technical services RMB 5,466,345 thousand, and vessel services RMB 1,407,964 thousand for the six months ended June 30, 2020[156]. Cost Management and Expenses - The company has implemented significant cost reduction measures, maximizing the reduction of external drilling platform and vessel leasing costs[9]. - The company's total operating expenses for the first half of 2020 were RMB 12,452.1 million, an increase of RMB 470.2 million or 3.9% compared to the same period last year[28]. - The company's rental expenses increased by RMB 94.2 million year-on-year, reflecting a growth of 16.9%[29]. - The total operating expenses in the geophysical acquisition and engineering survey services segment were RMB 841.9 million, a decrease of 14.6% year-on-year[32]. Technology and Innovation - The company has made notable advancements in technology, including successful trials of a high-temperature ESCOOL system and underwater release plug system[8]. - The company achieved significant technological advancements, including successful trials of various new drilling and cementing technologies[20]. - The company launched several key technology applications, including the successful trial of a 235℃ ultra-high temperature ESCOOL system and the first domestic underwater release plug system for deep-water cementing[196]. Market Expansion and International Operations - The company has expanded its market presence, securing new projects in the Asia-Pacific, Middle East, and Americas regions[7]. - The company successfully launched four drilling platforms in Asia and secured a 600-day contract in the Americas[15]. - The company is actively involved in international operations, with subsidiaries in regions such as Indonesia, Australia, and Mexico, enhancing its market presence[88]. Financial Position and Assets - Total assets as of June 30, 2020, were RMB 81,427.3 million, an increase of RMB 5,325.5 million or 7.0% from RMB 76,101.8 million at the end of 2019[42]. - Total liabilities increased by RMB 4,334.3 million or 11.1%, from RMB 39,191.5 million at the end of 2019 to RMB 43,525.8 million[42]. - Cash and cash equivalents increased significantly by 180.0% to RMB 9,417.1 million from RMB 3,363.6 million at the beginning of the year[43]. - The company's net current assets increased to RMB 10.55 billion from RMB 3.20 billion as of December 31, 2019, with the current ratio rising from 1.16 to 1.57[67]. Debt and Financing - The company successfully issued USD 800 million senior bonds, achieving the lowest comprehensive cost in its history and the highest oversubscription rate[9]. - The company issued $500 million 1.875% guaranteed senior notes due in 2025 and $300 million 2.500% guaranteed senior notes due in 2030 on June 24, 2020[74]. - The company reported a significant impairment loss of RMB 843.8 million on property, plant, and equipment, attributed to the settlement with Equinor and projected future cash flows[31]. - The company has seen a decrease in interest-bearing bank loans from RMB 809.96 million to RMB 515.21 million from December 31, 2019, to June 30, 2020[68]. Safety and Compliance - The OSHA recordable incident rate for safety performance was reported at 0.094, indicating a stable safety production situation[10]. - The QHSE management system was further strengthened, with an OSHA recordable incident rate of 0.094, indicating stable safety production conditions[198]. Future Outlook - The outlook for the second half of 2020 indicates a slow recovery in the industry, with the IMF predicting a global economic contraction of 4.9%[53]. - The company plans to continue focusing on market expansion and new technology development to drive future growth[84]. - The company aims to enhance its international operational management capabilities and continue to focus on technological development and internationalization strategies[11].