香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 ANTON 安東 安 東 東 田 服 務 集 園 Anton Oilfield Services Group Anton Oilfield Services Group （※ ・ （ ・ （ ・ （ ・ （ ・ ・ （ ・ 有關二零二三年年度報告之 補充公告 茲提述安東油田服務集團（「本公司」，連同其附屬公司，合稱「本集團」）截至二零 二三年十二月三十一日止年度的年度報告（「二零二三年年度報告」）。除另有所指 外，本公告所用詞彙與二零二三年年度報告所用者具有相同涵義。 本公司謹就本公司於二零一九年十二月三十日採納的限制性股票激勵計劃（「計 劃」）提供補充資料，計劃中的獎勵股份通過信託購買現有股票建立。關於計劃的 細節，請參考二零二三年年度報告「董事會報告」章節「限制性股票激勵計劃」一 段。 除選定僱員就接納獎勵股份而須向本公司支付的接納費1.00港元外，截至目前為 止根據計劃授予選定僱員的獎勵股份乃無償 ...

2024 年 9 月 2 日 市场数据 总股本(亿股) 29.80 总市值(亿港元)： 15.50 一年最低/最高(港元)： 0.39-0.60 近 3 月换手率： 13.4% 公司盈利预测与估值简表 指标 2022 2023 2024E 2025E 2026E 营业收入（百万元人民币） 3,514.9 4,434.8 5,015.9 5,759.9 6,497.4 营业收入增长率 20.2% 26.2% 13.1% 14.8% 12.8% 净利润（百万元人民币） 293.8 196.5 252.9 326.0 393.7 净利润增长率 306.8% -33.1% 28.7% 28.9% 20.8% EPS（人民币，以最新股本计） 0.10 0.07 0.08 0.11 0.13 ROE（归属母公司)（摊薄） 9.5% 6.2% 7.4% 8.7% 9.5% P/E 4.9 7.3 5.7 4.4 3.6 P/B 0.5 0.4 0.4 0.4 0.3 资料来源：Wind，光大证券研究所预测，股价时间为 2024 年 8 月 30 日，汇率为 1 港币=0.924 人民币 公司研究 油服需求复苏带动业绩稳健增 ...

Revenue Growth - The company's consolidated revenue increased by 15.0% from RMB 1,892.4 million in the first half of 2023 to RMB 2,176.3 million in the same period of 2024[1] - Revenue for the six months ended June 30, 2024, totaled RMB 2,176,321 thousand, with the Oilfield Technology Services segment contributing RMB 981,560 thousand, Oilfield Management Services contributing RMB 900,617 thousand, Rig Services contributing RMB 125,867 thousand, and Inspection Business contributing RMB 168,277 thousand[13] - Revenue for the six months ended June 30, 2024, was RMB 2,176,321,000, up from RMB 1,892,437,000 in the same period in 2023[15] - Revenue from oilfield technical services for the six months ended June 30, 2024, was RMB 851,911,000, while oilfield management services generated RMB 900,617,000[22] - Revenue from external customers for oilfield technical services was RMB 851.911 million, oilfield management services was RMB 900.617 million, drilling services was RMB 125.867 million, and inspection business was RMB 168.277 million[23] - Total revenue from sales of goods and services for oilfield technical services was RMB 697.478 million, oilfield management services was RMB 751.039 million, drilling services was RMB 182.278 million, and inspection business was RMB 173.063 million[23] - Revenue for the first half of 2024 increased by 15.0% year-over-year to RMB 2,176.3 million, with overseas market revenue growing by 23.0% to RMB 1,511.1 million, accounting for 69.4% of total revenue[35][40] - The company's revenue in the Chinese market for the first half of 2024 was approximately RMB 665.2 million, a slight increase of 0.2% compared to RMB 663.6 million in the same period last year[45] - The company's oilfield management service revenue grew by 19.9% to RMB 900.6 million, accounting for 41.4% of the total revenue for the first half of 2024[46] - The company's oilfield technical service revenue increased by 24.9% to RMB 981.5 million, representing 45.1% of the total revenue for the first half of 2024[46] - The company's total revenue for the first half of 2024 was RMB 2,176.3 million, a 15.0% increase compared to RMB 1,892.4 million in the same period last year[47] - The company's oilfield management services revenue increased by 19.9% to RMB 900.6 million in the first half of 2024, compared to RMB 751.0 million in the same period last year[50] - Integrated oilfield management services revenue rose by 10.2% to RMB 546.8 million in the first half of 2024, up from RMB 496.1 million in the previous year[50] - Oilfield operation and maintenance services revenue surged by 38.8% to RMB 353.8 million in the first half of 2024, compared to RMB 254.9 million in the same period last year[50] - The oilfield technology services segment revenue grew by 24.9% to RMB 981.5 million in the first half of 2024, up from RMB 786.1 million in the previous year[51] - Revenue for the first half of 2024 was RMB 2,176.3 million, a 15.0% increase compared to RMB 1,892.4 million in the same period of 2023[59] Profitability - Net profit grew by 7.9% from RMB 103.4 million in the first half of 2023 to RMB 111.6 million in the same period of 2024[1] - Profit attributable to equity holders of the company rose by 8.2% from RMB 97.9 million in the first half of 2023 to RMB 105.9 million in the same period of 2024[1] - Gross profit margin improved from 29.6% in the first half of 2023 to 30.3% in the same period of 2024[4] - Net profit for the six months ended June 30, 2024, was RMB 111,563 thousand, after deducting unallocated corporate overhead expenses of RMB 203,574 thousand[13] - Operating profit increased by 10.2% year-over-year to RMB 306.2 million, while net profit rose by 7.9% to RMB 111.6 million[40] - Operating profit for the first half of 2024 was RMB 306.2 million, a 10.2% increase from RMB 277.9 million in the same period of 2023[64] - Net profit for the first half of 2024 was RMB 111.6 million, a 7.9% increase compared to RMB 103.4 million in the same period of 2023[66] Cash Flow and Financial Position - Operating cash inflow increased by RMB 4.5 million from RMB 341.2 million in the first half of 2023 to RMB 345.7 million in the same period of 2024[1] - Free cash flow grew by 15.1% from RMB 171.4 million in the first half of 2023 to RMB 197.2 million in the same period of 2024[1] - Total assets decreased from RMB 9,806.874 million as of December 31, 2023 to RMB 9,612.892 million as of June 30, 2024[2] - Cash and cash equivalents increased from RMB 1,585.886 million as of December 31, 2023 to RMB 1,773.682 million as of June 30, 2024[2] - Net cash generated from operating activities increased from RMB 341.171 million in the first half of 2023 to RMB 345.673 million in the same period of 2024[6] - Total assets as of June 30, 2024, were RMB 9,612,892,000, a slight decrease from RMB 9,806,874,000 as of December 31, 2023[14] - Trade receivables, net, as of June 30, 2024, were RMB 2,200,304,000, down from RMB 2,255,971,000 as of December 31, 2023[17] - Trade payables and notes payable as of June 30, 2024, totaled RMB 1,679,233,000, a decrease from RMB 1,819,924,000 as of December 31, 2023[21] - Non-current assets as of June 30, 2024, were RMB 2,488,628,000, slightly lower than RMB 2,575,680,000 as of December 31, 2023[15] - Capital expenditures for the six months ended June 30, 2024, were RMB 70,265,000, significantly lower than RMB 190,689,000 in the same period in 2023[14] - Trade receivables aged 1 to 6 months as of June 30, 2024, were RMB 1,503,021,000, down from RMB 1,752,215,000 as of December 31, 2023[18] - Impairment loss allowance for trade receivables as of June 30, 2024, was RMB 341,846,000, up from RMB 300,937,000 as of December 31, 2023[19] - Operating cash flow for the first half of 2024 was RMB 345.7 million, with free cash flow increasing by 15.1% year-over-year to RMB 197.2 million[38] - Accounts receivable turnover days decreased by 5 days to 184 days, while inventory turnover days dropped by 21 days to 107 days[40] - Cash and bank deposits as of June 30, 2024, were RMB 2,216.0 million, an increase of RMB 147.7 million from December 31, 2023[69] - Capital-to-debt ratio decreased by 1.8 percentage points to 53.9% as of June 30, 2024, compared to 55.7% at the end of 2023[69] - Operating cash flow for the six months ended June 30, 2024, was a net inflow of RMB 345.7 million, an increase of RMB 4.5 million compared to the same period in 2023[71] - Capital expenditures for the six months ended June 30, 2024, amounted to RMB 86.4 million, an increase of RMB 26.8 million compared to the same period in 2023[72] - The company's capital commitments as of June 30, 2024, were approximately RMB 48.3 million, with no significant contingent liabilities or guarantees[73] Segment Performance - The Oilfield Management Services segment showed the highest segment performance with RMB 219,002 thousand, followed by Oilfield Technology Services with RMB 57,757 thousand, Inspection Business with RMB 35,666 thousand, and Rig Services with RMB 2,712 thousand[13] - Depreciation and amortization expenses for the six months ended June 30, 2024, totaled RMB 166,752 thousand, with Oilfield Technology Services accounting for RMB 128,415 thousand, Rig Services for RMB 26,783 thousand, Inspection Business for RMB 6,961 thousand, and Oilfield Management Services for RMB 4,593 thousand[13] - Impairment losses on trade receivables (net of write-offs) for the six months ended June 30, 2024, amounted to RMB 32,515 thousand, with Oilfield Technology Services accounting for RMB 18,679 thousand, Oilfield Management Services for RMB 11,878 thousand, Rig Services for RMB 1,210 thousand, and Inspection Business for RMB 748 thousand[13] - Interest income for the six months ended June 30, 2024, was RMB 6,715 thousand, with Oilfield Technology Services contributing RMB 4,036 thousand, Inspection Business contributing RMB 1,310 thousand, Oilfield Management Services contributing RMB 939 thousand, and Rig Services contributing RMB 430 thousand[13] - Financial expenses for the six months ended June 30, 2024, totaled RMB 15,596 thousand, with Oilfield Technology Services accounting for RMB 9,236 thousand, Oilfield Management Services for RMB 3,372 thousand, Rig Services for RMB 2,421 thousand, and Inspection Business for RMB 567 thousand[13] - Income tax expenses for the six months ended June 30, 2024, amounted to RMB 116,668 thousand, with Oilfield Management Services accounting for RMB 62,225 thousand, Oilfield Technology Services for RMB 41,030 thousand, Inspection Business for RMB 7,977 thousand, and Rig Services for RMB 5,436 thousand[13] - The company's drilling rig service revenue declined by 30.9% to RMB 125.9 million, accounting for 5.8% of the total revenue for the first half of 2024[46] - The company's inspection service revenue decreased by 2.8% to RMB 168.3 million in the first half of 2024, compared to RMB 173.1 million in the same period last year[49] - The company's inspection service EBITDA decreased by 15.9% to RMB 50.9 million in the first half of 2024, with an EBITDA margin of 30.2%, down 4.8 percentage points from 35.0% in the same period last year[49] - Drilling technology services revenue increased by 35.8% to RMB 181.5 million in the first half of 2024, compared to RMB 133.7 million in the same period last year[51] - Completion technology services revenue rose by 58.5% to RMB 156.9 million in the first half of 2024, up from RMB 99.0 million in the previous year[51] - Production enhancement technology services revenue increased by 12.4% to RMB 508.5 million in the first half of 2024, compared to RMB 452.5 million in the same period last year[51] International Expansion and Market Performance - Two external customers contributed RMB 1,325,077,000, accounting for 39.30% and 21.59% of total revenue, primarily from oilfield technical services and management services[16] - Geographic revenue breakdown: China contributed RMB 360.101 million, Iraq contributed RMB 218.185 million, and other countries contributed RMB 119.192 million for oilfield technical services[24] - The company won the development rights for the Dhufriyah oil field in Iraq, marking a significant milestone in its international expansion[37] - The company's revenue from the Iraqi market grew by 25.4% year-over-year to RMB 1,241.1 million, accounting for 57.0% of total revenue[41] - Iraq market revenue in H1 2024 reached RMB 1,241.1 million, a 25.4% increase YoY[42] - Iraq market accounted for 57.0% of total revenue in H1 2024, up from 52.3% in H1 2023[42] - Total overseas revenue in H1 2024 was RMB 1,511.1 million, a 23.0% increase YoY[42] - New orders in Iraq market in H1 2024 reached RMB 2,834.5 million, a 113.4% increase YoY[43] - Other overseas markets revenue in H1 2024 was RMB 270.0 million, a 13.1% increase YoY[42] - New orders in other overseas markets in H1 2024 totaled RMB 396.0 million, an 18.6% increase YoY[44] - Company secured Dhufriyah oilfield development rights in Iraq with a 25-year development period[43] - Achieved over 2,100 days of zero lost time incidents in Iraq market as of June 30, 2024[43] - Successfully implemented over 4 million hours of zero lost time incidents in Chad market[44] - Launched first associated gas carbon reduction project in Indonesia market[44] Research and Development - The company's R&D investment increased by 13.9% to RMB 49.3 million in the first half of 2024, up from RMB 43.3 million in the previous year[55] - Research and development expenses for the first half of 2024 were RMB 49.3 million, a 13.9% increase from RMB 43.3 million in the same period of 2023[62] ESG and Sustainability - The company was recognized in the "Sustainable Development Yearbook (China Edition) 2024" and the "China Excellence in Management Companies" list, highlighting its ESG achievements[39] Strategic Initiatives and Future Plans - The company successfully launched a large-scale AI platform for the oil and gas industry, named "Oil and Gas GPT Cloud Platform," accelerating digital and intelligent transformation[37] - The company's AI technology application reduced data processing time by 25%, improved decision accuracy by 15-20%, increased overall oilfield development volume by 8%, enhanced old well production by 8%, and reduced new well drilling time by approximately 5%[45] - The company plans to expand into new markets and strengthen sales strategies, focusing on digital sales platforms and innovative projects[57] - The company will continue to advance AI transformation and digital platform globalization to enhance operational efficiency and drive business growth[57] Financial Instruments and Shareholder Returns - The company repurchased a total of USD 38.2 million of 2025 bonds with a coupon rate of 8.75% in the secondary market during the six months ended June 30, 2024[76] - The company's restricted stock incentive plan trustee purchased a total of 31,984,000 shares, representing 1.1% of the company's total issued shares as of the announcement date[76] - The company declared and paid a final dividend of RMB 0.013 per share for the year ended December 31, 2023, totaling RMB 39.018 million[34] Operational Efficiency - Accounts receivable turnover days decreased by 5 days to 184 days in the first half of 2024 compared to the same period in 2023[67] - The company achieved a 2.43x breakthrough in production targets for the geological engineering integration project in the North China market, receiving cash rewards from the client[45]

Revenue Growth - The innovative business segment, focusing on oilfield management, asset leasing, testing, and digital services, achieved a rapid growth of 37.4%, with its revenue contribution exceeding 51.0% of total revenue[13]. - In 2023, the company's overseas market revenue reached RMB 2,688.1 million, an increase of RMB 666.9 million or 33.0% compared to RMB 2,021.2 million in 2022, accounting for 60.6% of total revenue[21]. - Revenue from the Iraq market was RMB 2,210.9 million, up RMB 674.9 million or 43.9% from RMB 1,536.0 million in 2022, representing 49.8% of total revenue[24]. - The company recorded a decrease in revenue from other overseas markets, which amounted to RMB 477.2 million, down RMB 8.0 million or 1.7% from RMB 485.2 million in 2022, accounting for 10.8% of total revenue[25]. - The Chinese market revenue increased to RMB 1,746.7 million, a rise of RMB 253.0 million or 16.9% from RMB 1,493.7 million in 2022, representing 39.4% of total revenue[21]. - In 2023, Anton Oilfield Services Group achieved a revenue of RMB 4.43 billion, marking a historical high with a year-on-year increase of 26.2%[41]. - The company's revenue for 2023 was RMB 4,434.8 million, an increase of RMB 919.9 million or 26.2% compared to RMB 3,514.9 million in 2022[124]. Profitability and Financial Performance - The net profit attributable to shareholders, excluding one-time gains from a USD debt repurchase, was approximately RMB 200 million, reflecting an 18.5% year-on-year growth[41]. - Operating profit decreased to RMB 600.7 million, down RMB 64.5 million or 9.7% from RMB 665.2 million in 2022, primarily due to a one-time gain from a USD bond repurchase in 2022[51]. - Net profit fell to RMB 220.6 million, a decrease of approximately 25.9% from RMB 297.6 million in 2022[51]. - The company's equity holders' profit was RMB 196.5 million, down RMB 97.3 million or about 33.1% from RMB 293.8 million in 2022[51]. - Financial expenses for 2023 were RMB 195.1 million, a decrease of RMB 56.2 million or 22.4% from RMB 251.3 million in 2022[109]. - The company declared a dividend of RMB 0.013 per share, totaling RMB 39 million[41]. Operational Efficiency and Innovations - The company has accelerated its digital and intelligent transformation, launching a series of AI solutions tailored for the oil and gas industry[19]. - The real-time iterative fracturing technology has been applied in over 100 wells in various shale gas and oil fields, demonstrating significant results in risk control and efficiency enhancement[26]. - The company is focusing on cash flow management innovations to enhance liquidity and reduce cash outflow through meticulous management of operations and supply chains[73]. - The company aims to enhance operational efficiency through management reforms and optimization while expanding its global business[98]. - The company introduced eight comprehensive solutions for oil and gas development, focusing on sustainable development and AI integration[101]. Sustainability and Environmental Impact - The company achieved a 2.7% reduction in greenhouse gas emissions per unit compared to 2022, while indirectly helping clients reduce emissions by 19,972.4 tons of CO2 equivalent[20]. - The company is actively promoting green development solutions in its asset leasing business, aiming for net-zero emissions in oil and gas development[63]. - The company is committed to sustainable development, as highlighted in its separate sustainability report for 2023[198]. Market Strategy and Expansion - The company plans to further expand its global market presence, particularly in the Middle East, Central Asia, Africa, and Southeast Asia[43]. - The company anticipates ongoing opportunities in the oil and gas sector due to geopolitical conflicts and the global energy transition towards efficiency and sustainability[120]. - The group closely monitors market conditions and adjusts its market strategies accordingly to ensure stable business development[163]. Research and Development - The company invested RMB 111.7 million in R&D in 2023, a 39.1% increase from RMB 80.3 million in the previous year[97]. - Research and development expenses increased to RMB 111.7 million in 2023, up RMB 31.4 million or 39.1% from RMB 80.3 million in 2022[130]. Employee and Corporate Governance - The total number of employees as of December 31, 2023, was 6,510, an increase of 681 from the previous year, with overseas employees accounting for 51.7%[99]. - The company plans to continue focusing on talent recruitment and training, enhancing its workforce to support long-term sustainable development[119]. - The company has adhered to the Corporate Governance Code as per the listing rules during the fiscal year ending December 31, 2023[178]. Shareholder Information - The board proposed a final dividend of RMB 0.013 per share, totaling RMB 39 million for the year ended December 31, 2023, compared to no dividend in 2022[146]. - The company will suspend share transfer registration from May 30, 2024, to June 3, 2024, for shareholders entitled to the proposed final dividend[185].

Financial Data and Key Metrics Changes - In 2023, the company's revenue reached 4.4 billion RMB, representing a 26% increase from the previous year [4] - Profit attributable to equity holders was approximately 197 million RMB, a decrease of 33% due to a one-time bond repurchase gain in 2022 [4] - Excluding that gain, net profit attributable to equity holders was 195 million RMB, up 18% [5] - Free cash flow was about 500 million RMB, up 70% from last year [5] Business Line Data and Key Metrics Changes - Revenue from international business surpassed 60%, with a growth rate of over 33% [5][8] - Innovative business grew by more than 37.4%, with its revenue share reaching 51.8% [9] - Revenue in the Chinese market increased by 16.9%, driven by rapid growth in asset-light and hybrid precision engineering services [9] Market Data and Key Metrics Changes - In the Iraq market, major oil fields maintained full workload, contributing to steady business growth [8] - The Chinese market saw a quick recovery, with traditional business undergoing optimization and upgrades [9] - The company successfully applied completion tools in Algeria, further opening the market [8] Company Strategy and Development Direction - The company aims to transform into a global entity, focusing on green transformation and sustainable development [7][16] - Strategic plans for 2024 include deploying comprehensive solutions for the oil and gas industry and enhancing international business growth [17][19] - The company is also focusing on digitalization and platform-based development to improve operational efficiency [17][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the macroeconomic environment and competition, emphasizing the need for cost control and risk management [26][29] - The company is optimistic about future growth, aiming to achieve a revenue target of 1 billion USD soon [45] - Management highlighted the importance of global leadership and talent recruitment to support international business expansion [47][48] Other Important Information - The company announced a dividend payment of 339 million RMB, resuming its tradition of distributing 30% of profits to equity holders [15][35] - The asset leasing model is designed to help customers expand without significant capital investment, aligning with the industry's shift towards asset-light models [36][39] Q&A Session Summary Question: What are the strategic plans for overseas market deployment in 2024? - The company has identified three key regions: Iraq, West Africa, and emerging markets, with specific strategies for each [24][25] Question: What is the trend for the net profit margin? - The profit growth rate is lower than revenue growth due to macroeconomic pressures, but efforts are being made to improve margins through cost control and efficiency [26][27] Question: How long will the company maintain the integrated oil field management project in Iraq? - The project has a contract term of two years with potential extensions, and the company is actively pursuing further opportunities in Iraq and other regions [30][31] Question: What is the reason for the increase in other payables and receivables? - The increase is attributed to the expansion of the company's platform businesses, which facilitate transactions without occupying cash flow [33] Question: Can investors expect a stable dividend policy in the future? - The company aims to maintain its tradition of distributing 30% of profits as dividends, contingent on cash flow and business growth [35] Question: Will asset leasing conflict with the company's asset-light strategy? - The asset leasing model is designed to support customers' capital expenditure needs while promoting an asset-light approach [36][39]

Investment Rating - The report maintains a "Buy" rating for Anton Oilfield Services (3337 HK) [4][16] Core Views - Anton Oilfield Services achieved robust growth in 2023 with revenue of RMB 4 43 billion, up 26 2% YoY, and adjusted net profit growth of 18 5% YoY [1] - The company's overseas markets, particularly Iraq, showed strong performance, with Iraq market revenue surging 43 9% YoY to RMB 2 21 billion [3] - Anton Oilfield Services is expected to maintain steady growth, with projected EPS of RMB 0 10, 0 13, and 0 16 for 2024, 2025, and 2026 respectively [4][16] Financial Performance - In 2023, the company's gross margin improved by 1 4 percentage points to 29 8%, while net margin declined by 3 5 percentage points to 5 0% [1] - The company proposed a dividend of RMB 0 013 per share, representing a payout ratio of 20% [1] - Revenue from domestic market grew 16 9% YoY to RMB 1 75 billion, driven by light-asset technical services [3] Business Segments - Inspection services revenue increased 38 7% YoY to RMB 450 million, with breakthroughs in international markets along the Belt and Road [2] - Oilfield management services revenue surged 41 5% YoY to RMB 1 62 billion, with successful operations in Iraq and Chad [2] - Oilfield technical services revenue grew 26 8% YoY to RMB 2 02 billion, supported by business model transformation [2] Market Performance - The company's total market capitalization stood at HKD 1 29 billion, with a 3-month turnover rate of 6 1% [4] - Over the past year, the stock showed a relative return of 25 2% and an absolute return of 7 5% [5] Future Outlook - The company is expected to achieve revenue growth of 17 7%, 15 8%, and 13 1% in 2024, 2025, and 2026 respectively [16] - Net profit is projected to grow at a CAGR of 24 1% from 2024 to 2026, reaching RMB 471 million in 2026 [16] - ROE is forecasted to improve from 6 2% in 2023 to 10 9% in 2026 [16]

Revenue Performance - The group's total revenue for 2023 was RMB 4,434.8 million, an increase of 26.2% from RMB 3,514.9 million in 2022[25]. - Revenue from the Iraq segment increased significantly to RMB 2,210,871 thousand in 2023, compared to RMB 1,536,034 thousand in 2022, marking a growth of about 43.8%[47]. - The company's revenue for 2023 was RMB 4,434.8 million, an increase of RMB 919.9 million or 26.2% compared to RMB 3,514.9 million in 2022[153]. - The company's revenue from service provision was RMB 3,998,123,000, a significant increase from RMB 3,015,228,000 in 2022, reflecting a growth of approximately 32.7%[72]. - The revenue from oilfield technology services and oilfield management services contributed significantly, with RMB 2,021,613,000 and RMB 1,617,860,000 respectively, accounting for a combined total of approximately 40.33% and 19.79% of total revenue[71]. - The oilfield management services segment reported revenue of RMB 1,617.9 million, a growth of 41.5% from RMB 1,143.6 million in 2022[168]. - The revenue of the oilfield technology services segment reached RMB 2,021.6 million in 2023, up 26.8% from RMB 1,594.5 million in 2022[172]. - The revenue from enhanced production technology services surged by approximately 56.7%, reaching RMB 1,201.1 million in 2023 compared to RMB 766.3 million in 2022[174]. - The overseas market revenue amounted to RMB 2,688.1 million in 2023, a 33.0% increase from RMB 2,021.2 million in 2022, accounting for 60.6% of total revenue[183]. - The revenue from the Iraq market increased by 43.9% to RMB 2,210.9 million in 2023, contributing 49.8% to the overall revenue[183]. Profitability - The profit attributable to equity holders for 2023 was RMB 196.5 million, a decline of approximately 33.1% from RMB 293.8 million in 2022; excluding one-time gains from a bond repurchase, the recurring profit was RMB 195.0 million, an increase of 18.5% from RMB 164.5 million in 2022[25]. - The company reported a net profit of RMB 220,560 thousand for the year ended December 31, 2023, down from RMB 297,591 thousand in 2022, representing a decrease of approximately 25.9%[53]. - Operating profit decreased to RMB 600.7 million, down RMB 64.5 million or 9.7% from RMB 665.2 million in 2022, primarily due to a one-time gain from a USD bond repurchase in 2022[153]. - The company's net profit before tax for 2023 was RMB 407.7 million, compared to RMB 420.5 million in 2022[141]. Cash Flow and Liquidity - Operating cash flow for the group was a net inflow of RMB 916.8 million, a decrease of 6.4% from RMB 980.0 million in 2022[25]. - The net cash inflow from operating activities for the year ended December 31, 2023, was RMB 916,776 thousand, compared to RMB 979,957 thousand in 2022, indicating a decrease of about 6.4%[32]. - The company reported a net increase in cash and cash equivalents of RMB 851,622,000 for the year, compared to a decrease of RMB 489,322,000 in 2022[59]. - The company's cash and cash equivalents at year-end reached RMB 1,585,886 thousand, a substantial increase from RMB 727,904 thousand in 2022, reflecting an increase of approximately 117%[35]. - Free cash flow increased to RMB 499.5 million in 2023, up RMB 73.5 million from RMB 426.0 million in 2022[128]. Expenses and Costs - The group's operating costs rose to RMB 3,112.5 million in 2023, an increase of 23.8% from RMB 2,515.1 million in the same period last year[5]. - Sales expenses for 2023 were RMB 195.9 million, up RMB 22.6 million or 13.0% from RMB 173.3 million in 2022[6]. - Management expenses increased to RMB 293.5 million in 2023, up RMB 29.5 million or 11.2% from RMB 264.0 million in 2022[7]. - The company's total capital expenditures for the year were RMB 190,689,000, compared to RMB 309,899,000 in the previous year, representing a decrease of approximately 38.4%[95]. - Human resources costs increased to RMB 940,106,000 in 2023 from RMB 797,149,000 in 2022, reflecting a growth of about 17.9%[107]. - Depreciation expenses rose to RMB 344,262,000 in 2023, compared to RMB 332,355,000 in 2022, marking an increase of approximately 3.6%[107]. Assets and Liabilities - The company's total assets increased to RMB 9,806,874 thousand in 2023, up from RMB 7,982,795 thousand in 2022, representing a growth of approximately 23%[29]. - The company's total liabilities rose to RMB 6,385,988 thousand in 2023, compared to RMB 4,681,986 thousand in 2022, reflecting an increase of approximately 36.4%[31]. - The company's total liabilities increased to RMB 1,819,924,000 as of December 31, 2023, from RMB 1,449,092,000 in 2022, representing a growth of approximately 25.6%[120]. - The net trade receivables amounted to RMB 2,192,156,000 as of December 31, 2023, compared to RMB 1,851,369,000 in 2022, which is an increase of about 18.4%[114]. Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.013 per share for the year ended December 31, 2023, compared to no dividend in 2022[25]. - The company proposed a final dividend of RMB 0.013 per share, totaling RMB 39 million, to be approved at the upcoming shareholders' meeting[149]. Strategic Focus and Market Opportunities - The group aims to continue focusing on the oil and gas supply chain while transitioning towards smart and low-carbon operations, presenting new market opportunities[3]. - The company plans to continue expanding its business in emerging oil and gas markets globally, leveraging its competitive advantages[125]. - The company is actively promoting its oilfield management service model in emerging markets globally, following successful operations in Iraq and Chad[198]. - The strategic development plan includes a focus on "dual carbon technology services" and "smart testing technology services" to enhance service capabilities using big data, AI, and IoT[194]. Digital Transformation and Innovation - The company launched a series of AI solutions targeted at the oil and gas industry, enhancing its digital transformation efforts[151]. - The company is actively promoting digital technology applications in the Iraqi market, enhancing management efficiency for oilfield clients[158].

Financial Performance - The company's revenue for the first half of 2023 increased by 12.1% compared to the same period in 2022, reaching a historical high in both orders and revenue from overseas markets[48] - The current profit for the six months ended June 30, 2023, was RMB 103,353,000, compared to RMB 88,525,000 for the same period in 2022, representing an increase of approximately 16.5%[7] - The total comprehensive income for the period was RMB 147,059,000, down from RMB 182,289,000 in the previous year, indicating a decrease of about 19.3%[7] - The group's net profit increased by 16.8% compared to the same period in 2022, with operating cash flow increasing by RMB 20.5 million[66] - Net profit for the first half of 2023 was RMB 103.4 million, up 16.8% from RMB 88.5 million in the same period of 2022[69] - The net profit margin attributable to equity holders of the company was 5.2%[69] Revenue Breakdown - More than 50% of the total revenue now comes from innovative businesses, including oilfield management services, asset leasing, and testing technology services[48] - The group's overseas market revenue for the first half of 2023 was RMB 1,228.8 million, an increase of RMB 294.0 million or 31.5% compared to RMB 934.8 million in the same period of 2022, accounting for 64.9% of total revenue[52] - Revenue from oilfield management services was RMB 751.0 million, a significant increase of 42.9% compared to the same period in 2022, representing 39.7% of total revenue[60] - The group's testing business revenue was RMB 173.1 million, a substantial increase of approximately 33.6% compared to the first half of 2022, accounting for 9.2% of total revenue[60] - Revenue in the domestic market for the first half of 2023 was approximately RMB 663.6 million, down 11.9% from RMB 753.2 million in the same period of 2022[102] Strategic Initiatives - The group plans to further promote precision engineering technology and independent innovative service models to enhance integrated management capabilities[94] - The asset securitization project for Tongao Testing is expected to advance rapidly in the second half of the year, aiming for a successful listing in the domestic capital market[95] - The group’s rental business is anticipated to achieve breakthroughs in innovative business models in the second half of the year, focusing on oil and gas production equipment[94] - The company continues to focus on market expansion and new technology development as part of its strategic initiatives[194] Operational Efficiency - The average trade receivables turnover days decreased by 32 days to 189 days in the first half of 2023 compared to the same period in 2022[152] - The company's operating profit for the first half of 2023 was RMB 277.9 million, a decrease of 5.7% from RMB 294.7 million in the same period of 2022[127] - Operating costs rose to RMB 1,333.1 million in the first half of 2023, up 13.8% from RMB 1,171.8 million in the same period of 2022[145] Shareholder and Equity Information - As of June 30, 2023, Pro Development Holdings Corp. held 664,140,740 shares, representing approximately 22.09% of the company's equity[181] - The company has a total of 335,308,925 shares, with a net equity of approximately 248,326,925 shares after accounting for options and restricted stock[179] - The company has seen an increase in shareholder equity, with significant holdings from major shareholders[181] Compliance and Governance - The company has established an audit committee consisting of three independent non-executive directors to ensure compliance with applicable accounting principles and regulations[14] - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2023[193] - There have been no changes in the information of directors and senior management since the date of the 2022 annual report[192] Cash Flow and Financial Position - As of June 30, 2023, the group's cash and bank deposits amounted to approximately RMB 1,692.9 million, an increase of RMB 487.0 million compared to December 31, 2022[154] - The cash flow from operating activities indicates a positive trend, reflecting improved operational efficiency[175] - The company continues to focus on maintaining a strong financial position with no major contingent liabilities reported[176]

Financial Performance - The group's consolidated revenue increased by 12.1% from RMB 1,688.0 million in the first half of 2022 to RMB 1,892.4 million in the same period of 2023[1] - Net profit rose by 16.8% from RMB 88.5 million in the first half of 2022 to RMB 103.4 million in the same period of 2023[1] - Profit attributable to equity holders increased by 7.9% from RMB 90.7 million in the first half of 2022 to RMB 97.9 million in the same period of 2023[1] - The EBITDA for the six months ended June 30, 2023, was RMB 604,655 thousand, compared to RMB 565,653 thousand for the same period in 2022, reflecting an increase of about 6.9%[42] - The net profit for the current period was RMB 103,353 thousand, up from RMB 88,525 thousand in the previous year, indicating a growth of approximately 16.7%[42] - For the six months ended June 30, 2023, the company's profit attributable to owners was RMB 97,872 thousand, an increase of 7.4% compared to RMB 90,697 thousand for the same period in 2022[55] - The diluted earnings per share for the first half of 2023 was RMB 0.0330, compared to RMB 0.0311 for the same period in 2022, reflecting a growth of 6.1%[55] - The company's net profit increased by 16.8% year-on-year in the first half of 2023, with operating cash flow rising by RMB 20.5 million compared to the same period in 2022[57] Revenue Breakdown - Revenue from two external customers accounted for 42.02% and 22.35% of total revenue, amounting to approximately RMB 1,218.1 million[22] - The revenue from oilfield technology services and oilfield management services contributed significantly to the overall revenue growth[22] - The company's segment revenue from oilfield technical services was RMB 786,057 thousand, while oilfield management services generated RMB 751,039 thousand for the six months ended June 30, 2023[42] - Oilfield management services revenue reached RMB 751.0 million, up 42.9% from the previous year, representing 39.7% of total revenue[68] - The company's testing services revenue for the first half of 2023 was RMB 173.1 million, a significant increase of approximately 33.6% year-on-year, accounting for 9.2% of total revenue[68] - The oilfield operation and maintenance service revenue grew by 50.9% to RMB 254.9 million compared to RMB 168.9 million in the same period last year[96] - The integrated oilfield management service segment achieved revenue of RMB 751.0 million, a 42.9% increase from RMB 525.7 million year-on-year[115] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 9,098.5 million, compared to RMB 7,982.8 million as of December 31, 2022[30] - The company reported a total of RMB 414.0 million in trade receivables pledged as collateral for short-term borrowings[23] - The company reported a significant increase in trade receivables, with net trade receivables amounting to RMB 2,078,900 thousand as of June 30, 2023, compared to RMB 1,902,520 thousand as of December 31, 2022, representing a growth of approximately 9.3%[45] - The company’s total liabilities as of June 30, 2023, were RMB 6,148,979,000, compared to RMB 5,101,870,000 as of December 31, 2022, reflecting an increase of 20.5%[133] - The company has pledged trade receivables of RMB 90,000,000 as collateral for long-term borrowings[148] Cash Flow and Investments - Operating cash inflow increased by RMB 20.5 million from RMB 320.7 million in the first half of 2022 to RMB 341.2 million in the same period of 2023[1] - Capital expenditures for the six months ended June 30, 2023, totaled RMB 96,361 thousand, compared to RMB 309,899 thousand for the entire previous year, indicating a decrease in capital investment[43] - The company’s financial expenses for the six months ended June 30, 2023, were RMB 89,368 thousand, compared to RMB 74,623 thousand for the same period in 2022, reflecting an increase of approximately 19.7%[52] - Cash and cash equivalents at the end of the period were RMB 1,167,689,000, an increase from RMB 727,904,000 at the beginning of the period, showing a growth of 60.5%[130] Market Expansion and Strategy - The company plans to continue expanding its market presence, particularly in regions such as Iraq, where significant revenue was generated[49] - The company continues to expand its operations in emerging oil and gas markets, focusing on light asset management and supervision projects[64] - The group will continue to expand in emerging global markets, focusing on Iraq, Southeast Asia, and Africa to secure more large-scale and quality projects[197] - In the Chinese market, the group aims to leverage innovative technology services driven by reservoir geology research to capture quality orders in the natural gas and unconventional resource development markets[197] Research and Development - The company’s research and development expenses for the six months ended June 30, 2023, were RMB 1,687,000, compared to RMB 1,239,000 for the same period in 2022, representing an increase of 36.2%[154] - Research and development efforts include the development of ultra-high temperature oil-based drilling fluid technology and non-destructive testing technology[162] Operational Efficiency - The company continues to focus on enhancing its asset leasing services and digital solutions to improve operational efficiency and safety[16] - The company maintained a focus on cash flow operations and reduced investment in low-return heavy asset businesses, leading to continued growth in light asset and innovative business revenue contributions[67] - The average turnover days for inventory decreased by 16 days to 128 days compared to the same period in 2022[60] - Accounts receivable as of June 30, 2023, amounted to approximately RMB 2,078.9 million, with an average turnover period of 189 days, a reduction of 32 days compared to the same period in 2022[60] Challenges and Adjustments - The asset leasing service segment generated revenue of RMB 100.9 million, down approximately 24.0% from RMB 132.8 million year-on-year, due to strategic adjustments in the leasing business[100] - The expected credit impairment losses rose to RMB 35.5 million in the first half of 2023, an increase of RMB 18.9 million from RMB 16.6 million in the same period of 2022[168]

Stock Incentive Plan - The company granted a total of 75,730,000 shares under the restricted stock incentive plan, with 59,330,000 shares awarded to employees and 16,400,000 shares to directors [3]. - The fair value of the shares on the grant date was HKD 0.410, while the closing price on the day before the grant was HKD 0.425 [7]. - The weighted average closing price of the shares before the vesting date was HKD 0.345 [7].