Financial Performance - In 2022, the company achieved a revenue of RMB 3.51 billion, a significant increase compared to RMB 2.92 billion in 2021, marking a growth of approximately 20%[18]. - The net profit attributable to shareholders for 2022 was RMB 293.81 million, a substantial increase from RMB 72.22 million in 2021, representing an increase of over 300%[32]. - Operating cash flow for the year was approximately RMB 980 million, returning to pre-pandemic levels[18]. - The company's total revenue reached RMB 3,514.9 million, an increase of RMB 591.3 million or 20.2% compared to RMB 2,923.6 million in 2021[64]. - The net profit attributable to equity holders increased by 306.9% to RMB 293.8 million from RMB 72.2 million in the previous year[64]. - The group achieved a net cash inflow from operations of RMB 980.0 million, a substantial increase of RMB 222.8 million compared to RMB 757.2 million in 2021[50]. Revenue Breakdown - The group's overseas market revenue reached RMB 2,021.2 million in 2022, an increase of RMB 565.6 million or 38.9% compared to RMB 1,455.6 million in 2021, accounting for 57.5% of total revenue[51]. - The oilfield management services revenue was RMB 1,143.6 million, an increase of approximately 24.5% year-on-year, accounting for 32.5% of total revenue[57]. - The oilfield technology services revenue was RMB 1,594.5 million, up approximately 19.2% year-on-year, making up 45.4% of total revenue[57]. - The group's testing services revenue was RMB 321.5 million, growing approximately 17.5% year-on-year, representing 9.1% of total revenue in 2022[57]. - The drilling services segment achieved revenue of RMB 455.3 million, marking a 15.7% increase from RMB 393.6 million in 2021[86]. - The oilfield operation and maintenance services product line recorded revenue of RMB 384.4 million in 2022, a significant increase of 89.6% from RMB 202.7 million in the previous year[93]. Market Expansion - The group expanded its market presence by entering new markets in Indonesia and Algeria, securing high-quality project orders[54]. - The company is actively promoting its business model in emerging markets globally, particularly in Iraq and West Africa, where it has established strong partnerships[92]. - In the Iraqi market, revenue increased by 48.0% to RMB 1,536.0 million, reflecting a recovery in oil and gas demand post-pandemic[82]. - Revenue from other overseas markets in 2022 was approximately RMB 485.2 million, an increase of about 16.2% from RMB 417.6 million in 2021[83]. Financial Health - The company's debt-to-asset ratio improved from 68.9% pre-pandemic to 58.7% in 2022, indicating a stronger capital structure[19]. - The capital liability ratio decreased significantly from 61.4% at the end of 2021 to 51.9% at the end of 2022[48]. - The total liabilities decreased to RMB 4,681,986,000 in 2022, down from RMB 5,321,204,000 in 2021, indicating improved financial health[114]. - The company's total equity increased to RMB 3,300,809,000 in 2022, representing a growth of 16.7% compared to RMB 2,828,161,000 in 2021[114]. - Non-current liabilities decreased significantly to RMB 891,033,000 in 2022, down 10.6% from RMB 996,120,000 in 2021[114]. Strategic Initiatives - The company plans to expand its oilfield management services in 2023, focusing on maximizing resource value for clients[22]. - The company aims to independently list its asset leasing business on the A-share market, targeting to become a leading asset management group globally[22]. - The company is focusing on digital transformation and innovation as key strategies for future growth[21]. - The company is focusing on developing new technologies and services related to carbon neutrality and smart detection, leveraging big data and AI to enhance service capabilities[88]. - The company aims to achieve a 60% reduction in greenhouse gas emissions per unit of revenue by 2030 compared to the 2019 baseline, with a goal of carbon neutrality by 2060[64]. Operational Efficiency - In 2022, the group's accounts receivable balance was approximately RMB 2,034.6 million, with an average turnover period of 198 days, a decrease of 37 days compared to 2021[50]. - Operating cash inflow increased to RMB 222.8 million, demonstrating strong cash flow management despite challenges in the Chinese market due to the pandemic[62]. - The company is focused on transforming its traditional business through precision engineering technology, aiming for value creation rather than price competition[41]. - The company reported a net current asset value of RMB 1,310,917,000 in 2022, reflecting a recovery from RMB 1,114,844,000 in 2021[114]. Compliance and Reporting - The company ensures timely and equal disclosure of important information to shareholders, particularly those that significantly impact the company's stock price[140]. - The company is committed to maintaining accurate and fair financial statements in accordance with international financial reporting standards and local regulations[151]. - The independent auditor's report confirmed no significant misstatements in the financial statements based on the audit conducted[170].

Financial Data and Key Metrics Changes - In 2022, the revenue was RMB 3.5 billion, with a net profit attributable to shareholders of RMB 290 million, marking a substantial increase year on year and a return to pre-COVID levels [4][5] - Free cash flow reached RMB 430 million, an increase of approximately RMB 70 million, and return on equity exceeded pre-epidemic levels at 9.9%, up 7.3% since 2021 [11][12] - The gearing ratio decreased from 68.9% before the epidemic to 58.7%, and debt over EBITDA dropped from 4.6 to 2.0, indicating a more stable capital structure [13] Business Line Data and Key Metrics Changes - Revenue from overseas markets reached RMB 1.5 billion, an increase of 48%, while revenue from other overseas markets was RMB 490 million, up 16.2% [7] - New business products, including oilfield management, inspection, and asset leasing, contributed significantly to revenue, increasing by 23% year on year [8] - The precision engineering technology services achieved a threefold increase in local production, contributing to customer incentives beyond engineering service fees [9] Market Data and Key Metrics Changes - The domestic market maintained stable revenue despite pandemic challenges, with a return to growth trajectory [5][8] - The company plans to focus on the development of natural gas markets in China and expand into international markets, including Iraq and West Africa [16][17] Company Strategy and Development Direction - The company aims to become an innovative global leading oilfield services provider, focusing on differentiated competitive advantages and breakthrough contributions to customers [51][52] - Plans include promoting precision engineering technology, developing unique and innovative businesses, and leveraging data-driven operations to improve efficiency [14][15][26] - The launch of an e-commerce platform, AT Mall, aims to empower oil companies and suppliers, facilitating transactions and enhancing market presence [17][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming past challenges, with expectations for stable growth in the oil and gas development market as supply gaps widen [15][16] - The company anticipates that the cancellation of pandemic control measures will positively impact profit margins in 2023 [33] - Management highlighted the importance of innovation and tailored project solutions to enhance customer value and drive growth [56][57] Other Important Information - The wholly-owned subsidiary, Qiol Inspection Group, is set to spin off and list on the Shenzhen Stock Exchange by the end of 2025, with profit agreements in place with strategic investors [36][37] - The company has achieved a significant milestone in the Indonesian market, with a four to five times increase in overall order volume compared to previous years [37] Q&A Session Summary Question: What is the reason for the EBITDA margin drop in the group's segments? - The decrease is attributed to pandemic control measures affecting project execution in key markets, leading to a revenue drop of around RMB 450 million, while fixed costs remained [31] - Inflation also impacted margins, with rising raw material prices affecting cost delivery to customers [32] Question: What is the current status of the TOR inspection group's spin-off project? - The spin-off is planned for listing on the Shenzhen Stock Exchange by the end of 2025, with a profit requirement of RMB 130 million for this year, which is a 30% increase from 2022 [36][37] Question: Can you provide details on the company's cash on hand? - As of the end of 2022, the company had RMB 727 million in cash, with RMB 155 million from TOR's strategic investors included [37][38] Question: What is the company's CapEx expenditure plan for 2023? - The company plans to maintain consistent CapEx spending within impairment limits, focusing on asset leasing platform construction [45][46]

Financial Performance - The group's total revenue increased by 20.2% from RMB 2,923.6 million in 2021 to RMB 3,514.9 million in 2022[2]. - Profit attributable to equity holders surged approximately 3.1 times from RMB 72.2 million in 2021 to RMB 293.8 million in 2022[2]. - Operating profit for the year was RMB 665.2 million, compared to RMB 429.5 million in the previous year[17]. - The net profit for the year was RMB 297,591,000, significantly up from RMB 75,350,000 in the previous year, indicating an increase of approximately 295.5%[18]. - The company reported a pre-tax profit of RMB 420.5 million, compared to RMB 176.1 million in the previous year[4]. - The total revenue for the year ended December 31, 2022, was approximately RMB 3,514,912,000, an increase from RMB 2,923,566,000 in 2021[61]. - The EBITDA for the year was RMB 471,093,000, compared to RMB 440,641,000 in the previous year, showing a growth of approximately 6.0%[32]. - The company reported a significant increase in other comprehensive income, with a net investment hedge loss of RMB (182,165,000) compared to a gain of RMB 36,633,000 in the previous year[18]. - The company’s diluted earnings per share for the year ended December 31, 2022, was RMB 0.0990, compared to RMB 0.0246 in the previous year, reflecting a significant increase[76]. - For the year ended December 31, 2022, the company reported a net profit attributable to shareholders of RMB 420.5 million, a significant increase from RMB 176.1 million in 2021, representing a growth of approximately 138.2%[94]. Cash Flow and Liquidity - Operating cash inflow rose by 29.4% from RMB 757.2 million in 2021 to RMB 980.0 million in 2022[2]. - The net cash inflow from operating activities was RMB 979.96 million, up from RMB 757.25 million in 2021[9]. - The company's cash and cash equivalents at year-end were RMB 727.9 million, down from RMB 1,173.2 million in 2021[9]. - The company’s cash and cash equivalents, along with restricted bank deposits, totaled RMB 727,904,000, down from RMB 1,173,186,000 in 2021, indicating a decrease of about 38.0%[19]. - The company's cash and bank deposits were approximately RMB 1,205.9 million as of December 31, 2022, a decrease of RMB 382.2 million from the previous year[199]. Assets and Liabilities - Total liabilities decreased from RMB 5,321.2 million in 2021 to RMB 4,681.99 million in 2022[8]. - The total assets as of December 31, 2022, amounted to RMB 7,982,795,000, a decrease from RMB 8,149,365,000 in 2021, reflecting a decline of about 2.0%[19]. - The total liabilities decreased to RMB 1,449,092 from RMB 1,525,467 in the previous year, indicating a reduction in financial obligations[82]. - The capital debt ratio improved from 61.4% at the end of 2021 to 51.9% at the end of 2022[136]. - The capital-to-debt ratio improved to 51.9% as of December 31, 2022, down 9.5 percentage points from 61.4% the previous year[199]. Revenue Breakdown - Revenue from oilfield management services was RMB 1,594,511,000, while drilling services generated RMB 455,300,000, and testing services contributed RMB 321,485,000[39]. - Revenue from two external customers amounted to RMB 2,226,782,000, contributing 45.98% and 17.37% to total revenue, compared to 34.52% and 18.06% in 2021[60]. - The company’s rental income for the year was RMB 204,403,000, up from RMB 165,025,000 in the previous year[69]. - The company reported a significant increase in oilfield technical services and management services, with revenues of RMB 1,089,650,000 and RMB 918,867,000 respectively[64]. - Revenue from the Iraq market reached approximately RMB 1,536.0 million in 2022, representing an increase of about 48.0% compared to RMB 1,038.0 million in the same period last year[115]. - The oilfield management services segment's EBITDA rose to RMB 440.6 million in 2022, a 12.2% increase from RMB 392.6 million in 2021, although the EBITDA margin decreased by 4.2 percentage points to 38.5%[124]. - The drilling services segment revenue increased by 15.7% to RMB 455.3 million in 2022, driven by the resumption of drilling projects in Iraq and a favorable oil and gas development market[179]. Research and Development - Research and development expenses increased from RMB 70.8 million in 2021 to RMB 80.3 million in 2022[4]. - Research and development expenditure for 2022 was RMB 80.3 million, a 13.4% increase from RMB 70.8 million in the previous year, focusing on fiber optic fracturing monitoring technology and special hangers[181]. Strategic Initiatives - The company plans to expand its market presence and invest in new technologies to enhance service offerings and operational efficiency[39]. - The company aims to expand its oilfield management services in emerging markets and will prioritize the spin-off listing of its testing services business[185]. - The company is actively promoting the spin-off of Tongao Testing for independent listing in the mainland capital market, having raised RMB 252.8 million from seven strategic investors[171]. - The company plans to continue expanding its overseas market presence, particularly in Iraq, which accounted for RMB 1,536.0 million of the overseas revenue, a 48.0% increase from the previous year[110]. Operational Efficiency - The average turnover days for accounts receivable decreased by 37 days to 198 days, while inventory turnover days decreased by 19 days to 96 days, indicating improved operational efficiency[109]. - The company is advancing its accounts receivable recovery efforts with strong support from oilfield clients amid year-end dollar bond repayment pressures[117]. - The company continues to innovate its business model, extending its service scope to include natural gas purification and external transportation projects in Sichuan[117]. Challenges and Market Conditions - The company faced severe challenges in project bidding, operations, and payment collection due to the impact of the Omicron variant and strict pandemic control measures in China[117]. - The global oil and gas supply landscape has changed significantly due to the Russia-Ukraine conflict, with increased capital expenditure in the Middle East and emerging markets to meet rising oil and gas development demands[135].

Financial Performance - In the first half of 2022, the company's revenue was RMB 1,688.0 million, an increase of RMB 266.7 million or 18.8% compared to the same period in 2021[13] - The operating profit for the same period was RMB 294.7 million, up RMB 72.3 million or 32.5% year-on-year[13] - Net profit increased significantly to RMB 88.5 million, a rise of 103.9% compared to RMB 43.4 million in the previous year[13] - The profit attributable to equity holders of the company was RMB 90.7 million, reflecting a growth of RMB 47.9 million or 111.9% year-on-year[13] - The overall revenue for the group in the first half of 2022 was RMB 1,688.0 million, an increase of 18.8% from RMB 1,421.3 million in the same period of 2021[16] - The basic earnings per share for the six months ended June 30, 2022, was RMB 0.0313, up from RMB 0.0146 in the same period of 2021, representing an increase of about 114.4%[120] - The company reported a total comprehensive income of RMB 182,289 thousand for the six months, compared to a loss of RMB 11,498 thousand in the previous year, indicating a significant turnaround[123] Revenue Breakdown - In the first half of 2022, the group's overseas market revenue was RMB 934.8 million, an increase of RMB 219.5 million or 30.7% compared to RMB 715.3 million in the same period of 2021, accounting for 55.4% of total revenue[14] - Revenue from the Iraq market reached RMB 720.0 million, up RMB 213.7 million or 42.2% from RMB 506.3 million in the same period last year, representing 42.7% of total revenue[18] - The group's revenue from the Chinese market was RMB 753.2 million, an increase of RMB 47.2 million or 6.7% from RMB 706.0 million in the same period of 2021, accounting for 44.6% of total revenue[16] - The group's oilfield management service revenue was RMB 525.7 million, an increase of 8.3% from RMB 485.3 million in the previous year, accounting for 31.1% of total revenue[24] - The group's oilfield technology service revenue was RMB 782.5 million, up 20.8% from RMB 647.5 million in the previous year, representing 46.4% of total revenue[24] - The revenue from testing services was RMB 129.6 million, an increase of 18.6% compared to RMB 109.3 million in the same period last year[29] Cash Flow and Financial Stability - The operating cash flow was RMB 320.7 million, a significant increase of RMB 227.5 million compared to RMB 93.2 million in the same period last year[13] - The capital debt ratio decreased to 60.0% as of June 30, 2022, down from 61.4% at the end of 2021, indicating improved financial stability[64] - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 320,705,000, a significant increase from RMB 93,246,000 in the same period last year, representing a growth of approximately 243%[130] - The company incurred a net cash outflow from financing activities of RMB 304,206,000 during the six months ended June 30, 2022, compared to RMB 256,039,000 in the previous year[130] Orders and Market Expansion - The company achieved an 80.8% increase in new orders in the Chinese market during the first half of 2022, laying a solid foundation for future growth[8] - The group secured new orders in the Iraq market totaling approximately RMB 588.3 million in the first half of 2022, a decrease of 65.4% compared to the previous year due to a high base effect[20] - The company plans to launch an online "Antong Oil and Gas Development Mall" in the second half of the year to provide comprehensive products and services to global oil and gas customers[44] - The company will continue to focus on natural gas development opportunities in the Chinese market and explore resource development opportunities in emerging markets like Indonesia and Algeria[43] Research and Development - R&D investment increased by 84.4% to RMB 36.7 million in the first half of 2022, compared to RMB 19.9 million in the same period last year[39] - Research and development expenses were RMB 1,239 thousand, a slight decrease from RMB 1,396 thousand in the previous year, indicating a reduction of approximately 11.3%[200] Stock Options and Shareholder Information - The company has a ten-year share option scheme adopted on May 26, 2017, to replace the previous scheme adopted on November 17, 2007[81] - The total number of stock options granted in 2022 was 11,200,000, with 3,000,000 options exercised and 8,200,000 options remaining as of June 30, 2022[87] - The total number of stock options granted to Fan Yonghan was 12,920,000, with 2,700,000 options exercised and 10,220,000 options remaining as of June 30, 2022[89] - The total number of stock options granted to Qiang Yongyi was 3,000,000, with 900,000 options exercised and 2,100,000 options remaining as of June 30, 2022[92] - The total number of stock options granted to Zhu Xiaoping was also 3,000,000, with 900,000 options exercised and 2,100,000 options remaining as of June 30, 2022[93] - The company reported a total expense of RMB 2,297,000 related to share options for the six months ended June 30, 2022, down from RMB 7,012,000 for the same period in 2021[172] Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the six months ending June 30, 2022[104] - The audit committee consists of three independent non-executive directors and has reviewed the interim financial statements[105] - The company confirmed that there have been no changes in the information of directors and senior management since the last annual report[103]

Business Strategy and Operations - Anton Oilfield Services Group aims to become a global leader in oilfield technology services, focusing on maximizing asset value for clients through a comprehensive service system[5]. - The company has restructured its business segments from three to four, now including Testing Services, Oilfield Management Services, Oilfield Technology Services, and Drilling Services to enhance operational efficiency[5]. - The company has initiated a "multi-entity operation" strategy to allow independent operations of different business models, maximizing efficiency and reflecting financial performance more clearly[5]. - Anton Oilfield Services Group is committed to developing low-carbon and new energy businesses as part of its future growth strategy[5]. - The company emphasizes lean operations to maximize value creation for clients in every project[4]. - The company plans to enhance its service capabilities and expand into new markets, including unconventional gas development and strategic partnerships in Iraq and Africa[104]. Financial Performance - In 2021, the company's total revenue was RMB 2,923,566 thousand, a decrease from RMB 3,087,652 thousand in 2020, representing a decline of approximately 5.3%[22]. - The company's operating profit for 2021 was RMB 429,479 thousand, showing an increase from RMB 324,531 thousand in 2020, which is a growth of about 32.4%[22]. - The international market revenue grew by 16% in 2021, with new orders from international markets increasing by 53% compared to 2020[38]. - The gross profit margin improved by 4.6 percentage points in 2021, indicating enhanced management efficiency and internal capability[42]. - The company achieved a net asset value of RMB 3,411,146 thousand in 2021, a significant increase from RMB 1,945,136 thousand in 2020[25]. - The company experienced a 5.3% decline in revenue due to the ongoing pandemic, but net profit attributable to equity holders increased by 175.4% through asset-light transformation and strict cost control measures[56]. - New orders increased by 16.2% compared to 2020, reaching a historical high in backlog orders, laying a solid foundation for future growth[56]. Revenue Breakdown by Segment - The revenue from the Testing Services segment was RMB 273.6 million, a significant increase of 46.4% compared to RMB 186.9 million in 2020, accounting for 9.4% of the total revenue for the year[82]. - The Oilfield Management Services segment generated revenue of RMB 918.9 million, up 11.5% from RMB 824.2 million in 2020, representing 31.4% of the total revenue[82]. - The Oilfield Technical Services segment reported revenue of RMB 1,337.5 million, a slight decrease of 1.0% from RMB 1,351.1 million in 2020, making up 45.7% of the total revenue[82]. - The Drilling Services segment's revenue fell to RMB 393.6 million, down approximately 45.7% from RMB 725.5 million in 2020, contributing 13.5% to the total revenue[82]. Investment and R&D - The company invested RMB 70.8 million in R&D in 2021, a 25.8% increase from RMB 56.3 million in 2020, focusing on efficient and environmentally friendly products[100]. - Capital expenditures for the year were RMB 221.2 million, a 30.2% increase from RMB 169.9 million in 2020, primarily for updating aging equipment[96]. - The company aims for double-digit growth in upstream capital expenditures in 2022 due to recovering oil and gas demand post-pandemic[103]. Market Expansion and Strategy - The company plans to expand into key global oil and gas markets, focusing on the Middle East, Africa, and Southeast Asia, while also seizing opportunities in China's natural gas market[47]. - The company is strategically positioned to capitalize on the new industry cycle driven by increased investments from major oil-producing countries[47]. Sustainability and Social Responsibility - The company actively promoted renewable energy initiatives, contributing to carbon emission reductions and receiving recognition for its social responsibility efforts[44]. - The company is committed to sustainable development and will promote new products and technologies to optimize clients' business processes[48]. - A new "Low Carbon and New Energy Company" and "Smart Oilfield Technology Company" were established to promote low-carbon and digital transformation initiatives[56]. Financial Management and Debt - The company issued USD 150 million bonds maturing in 2025 in July 2021, optimizing the maturity structure of its debt and reducing maturity risk[43]. - The group issued new bonds totaling USD 150.0 million with an interest rate of 8.75% and a maturity of 3.5 years, significantly reducing the risk of large bond repayments due to market fluctuations[59]. - Financial asset impairment losses decreased from RMB 834 million in 2020 to RMB 459 million in 2021, a decline of 45.0%[110]. Employee and Governance - The workforce increased by 265 employees to a total of 4,270 by the end of 2021, reflecting ongoing talent acquisition efforts[101]. - The company has established a remuneration committee to advise on the compensation policy and structure for all directors[176]. - The company has confirmed that all independent non-executive directors are independent individuals[177].

Financial Performance - In the first half of 2021, the company's revenue was RMB 1,421.3 million, a decrease of RMB 32.6 million or 2.2% compared to the same period in 2020[10]. - Operating profit increased to RMB 222.4 million, up RMB 44.6 million or 25.1% from RMB 177.8 million in the same period last year[10]. - Net profit reversed from a loss of RMB 87.8 million in 2020 to a profit of RMB 43.4 million, representing an increase of RMB 131.2 million or 149.4%[10]. - The company's equity holders' profit was RMB 42.8 million, compared to a loss of RMB 91.0 million in the previous year, marking an increase of RMB 133.8 million or 147.0%[10]. - Total revenue for the first half of 2021 was RMB 1,421.3 million, a decrease of 2.2% compared to RMB 1,453.9 million in the same period of 2020[14]. - The company's net profit for the first half of 2021 was RMB 43.4 million, a significant increase of RMB 131.2 million or 149.4% compared to a loss of RMB 87.8 million in the same period of 2020[62]. - The operating profit for the first half of 2021 was RMB 222.4 million, an increase of RMB 44.6 million or 25.1% from RMB 177.8 million in the first half of 2020, with an operating profit margin of 15.6%[60]. - The gross profit for the six months ended June 30, 2021, was RMB 438,434 thousand, compared to RMB 417,483 thousand for the same period in 2020, an increase of approximately 5.0%[121]. - Basic earnings per share for the six months ended June 30, 2021, was RMB 0.0146, compared to a loss per share of RMB 0.0303 for the same period in 2020[121]. Revenue Breakdown - The overseas market generated revenue of RMB 715.3 million, down RMB 28.4 million or 3.8% from RMB 743.7 million in the same period of 2020, accounting for 50.3% of total revenue[13]. - Revenue from the Iraq market was RMB 506.3 million, a decrease of RMB 41.3 million or 7.5% year-on-year, representing 35.6% of total revenue[13]. - The domestic market revenue was RMB 706.0 million, a slight decrease of RMB 4.2 million or 0.6% compared to RMB 710.2 million in the same period last year, accounting for 49.7% of total revenue[13]. - Revenue from the overseas market was RMB 715.3 million, down 3.8% from RMB 743.7 million in the previous year, accounting for 50.3% of total revenue[16]. - Revenue from the Iraq market was RMB 506.3 million, a decline of 7.5% from RMB 547.6 million year-on-year, with new orders amounting to RMB 1,698.6 million, an increase of 122.8%[19]. - Revenue from other overseas markets increased by 6.6% to RMB 209.0 million, compared to RMB 196.1 million in the same period last year[21]. - In the China market, revenue was RMB 706.0 million, a slight decrease of 0.6% from RMB 710.2 million, with new orders totaling RMB 1,018.7 million, down 13.1% year-on-year[23]. Cost and Expenses - Operating costs decreased from RMB 1,036.5 million in the first half of 2020 to RMB 982.9 million in the first half of 2021, a decline of 5.2%[52]. - The company's total expenses for the first half of 2021 included RMB 371,116,000 for material and service purchases, a slight decrease from RMB 389,284,000 in the previous year[194]. - The company's depreciation expenses for the first half of 2021 were RMB 169,481,000, down from RMB 180,702,000 in the same period of 2020, indicating a decrease of 6.2%[194]. - Interest expenses for the six months ended June 30, 2021, totaled RMB 115,449 thousand, a decrease from RMB 218,498 thousand in the same period of 2020, reflecting a reduction of approximately 47.2%[19]. - The financial expenses, including interest income, decreased to RMB 109,229 thousand in 2021 from RMB 211,281 thousand in 2020, representing a decline of about 48.3%[19]. Market Expansion and Strategic Initiatives - The company established a "Low Carbon and New Energy Company" and a "Smart Oilfield Company" to promote low-carbon and digital transformation initiatives[9]. - The company is actively expanding into new markets, including Iraq, Niger, and Australia, while continuing to adjust its business structure in the Chinese market[8]. - The company will continue to focus on the development of low-carbon and new energy businesses, as well as smart oilfield operations in key markets such as China and Iraq[47]. - The company is actively pursuing market expansion in emerging markets, including new orders in Niger and Australia, reflecting a strategic growth initiative[21]. - The company plans to continue focusing on drilling technology and oil extraction services to drive future revenue growth[152]. Assets and Liabilities - As of June 30, 2021, accounts receivable amounted to RMB 1,958.2 million, with an average turnover period of 241 days, a decrease of 20 days year-on-year[12]. - The company's cash and bank deposits as of June 30, 2021, were approximately RMB 1,080.5 million, a decrease of RMB 252.8 million compared to December 31, 2020[67]. - The total assets of the company as of June 30, 2021, were RMB 7,522,190 thousand, down from RMB 7,881,121 thousand as of December 31, 2020, indicating a decrease of approximately 4.6%[118]. - The total liabilities decreased to RMB 4,747,784 thousand as of June 30, 2021, from RMB 5,117,400 thousand as of December 31, 2020, a reduction of approximately 7.2%[118]. - The company's trade payables decreased to RMB 476,272,000 from RMB 590,670,000, reflecting a reduction of 19.3%[181]. Stock Options and Shareholder Information - The board did not recommend an interim dividend for the six months ended June 30, 2021, consistent with the previous year[78]. - The total number of share options granted during the period was 5,660,922[86]. - The total number of stock options granted in 2021 was 11,200,000 shares, with an exercise price ranging from HKD 0.740 to HKD 1.020[89]. - The company adopted a ten-year share option scheme on May 26, 2017, to replace the previous scheme adopted on November 17, 2007[84]. - The total number of stock options exercised during the period was not specified, but the total number of options outstanding as of June 30, 2021, was 3,000,000 shares[90]. - The company has plans for future stock option grants, with a focus on retaining key personnel and incentivizing performance[93]. - The stock options are part of the company's strategy to align employee interests with shareholder value[93]. Research and Development - R&D investment increased by 5.3% to RMB 19.9 million from RMB 18.9 million in the previous year[43]. - The company received government subsidies totaling RMB 2,209,000 for R&D expenses, an increase from RMB 1,900,000 in the previous year[196]. - The company established a "Low Carbon and New Energy Technology Company" team to provide low-carbon energy solutions, indicating a strategic focus on sustainability[22].

Company Overview - Anton Oilfield Services Group is a leading integrated oilfield technology service company, providing comprehensive products and services for oil and gas development globally[4]. - Anton is recognized as a leading provider of directional drilling services in China, offering solutions to improve oil and gas recovery rates[9]. Financial Performance - In 2020, the company's revenue was RMB 3,087.7 million, a decrease of 14.0% from RMB 3,589.5 million in 2019[30]. - The company's operating profit for 2020 was RMB 324.5 million, down from RMB 719.6 million in 2019, reflecting a decline of 55.1%[30]. - The net loss attributable to equity holders for 2020 was RMB 95.8 million, compared to a profit of RMB 268.6 million in 2019[30]. - The total assets of the company as of December 31, 2020, were RMB 7,881.1 million, a decrease from RMB 9,506.8 million in 2019[33]. - The company's total liabilities decreased to RMB 5,117.4 million in 2020 from RMB 6,549.1 million in 2019[33]. - The company achieved a net cash inflow of RMB 805.4 million from operating activities, an increase of RMB 195.1 million compared to 2019[66]. - The company's equity attributable to shareholders was RMB 2,626.1 million as of December 31, 2020, a decrease of RMB 276.0 million from RMB 2,902.1 million in the previous year[123]. Revenue Breakdown - Domestic revenue accounted for 59.4% of total revenue in 2020, while overseas revenue made up 40.6%[36]. - The oil extraction segment contributed 33.5% to total revenue in 2020, while completion and drilling segments accounted for 24.3% and 42.2%, respectively[40]. - Revenue from the Chinese market was RMB 1,832.9 million, an increase of 8.9% year-on-year, accounting for 59.4% of total revenue[67]. - Revenue from overseas markets was RMB 1,254.8 million, a decrease of 34.2% year-on-year, accounting for 40.6% of total revenue[67]. - The Iraqi market revenue was RMB 961.1 million, a decrease of 32.3% year-on-year, accounting for 31.1% of total revenue[71]. Operational Highlights - The company reported a 4.4% increase in revenue from oilfield operation management services, which helped mitigate the impact of the pandemic on overseas business[48]. - The company maintained strong cash flow management, securing a cash investment of 70.0 million from a strategic investor, ensuring financial safety and achieving continuous growth in free cash flow for three consecutive years[50]. - The company implemented precise engineering technology to enhance competitiveness, focusing on unconventional shale gas areas in China and conducting comprehensive geological studies in Chad, leading to cost reduction and efficiency improvement[49]. - The company actively sought to support clients by designing financing solutions to help them secure funding for large drilling projects in challenging environments[85]. Strategic Focus - The company aims to achieve operational excellence by adhering to a "first in operation" standard, maximizing value creation for clients[4]. - Anton's revenue growth strategy includes expanding its market presence in emerging oil and gas markets across regions such as China, the Middle East, and Southeast Asia[4]. - The company plans to continue its global development strategy, focusing on natural gas and unconventional energy in China, while seizing market opportunities in oil-exporting countries like Chad and Niger[57]. - The company aims to expand into low-carbon and renewable energy businesses, utilizing its market platform to assist clients in energy conservation and emissions reduction[57]. - The company is advancing its smart oilfield business to facilitate digital transformation in oilfields, establishing specialized companies to drive these initiatives[57]. Research and Development - Research and development investment increased to RMB 56.3 million, up 8.9% from RMB 51.7 million in the previous year, focusing on high-efficiency and environmentally friendly products[97]. - The company plans to leverage its strengths to capture growth opportunities in the recovering market and expand its global presence, particularly in unconventional oil and gas development in China[100][101]. - The company aims to provide low-carbon solutions and actively explore carbon capture, geothermal energy, and gas storage market opportunities in line with China's carbon neutrality goals by 2060[101]. Governance and Sustainability - The company established an ESG committee to enhance governance and sustainability, releasing its first sustainability report and receiving multiple honors for its contributions to community support and poverty alleviation[53]. - The company is committed to long-term sustainable growth by fostering a governance structure that promotes environmental friendliness and community development[58]. - The company plans to continue developing low-carbon and digital services while fulfilling corporate social responsibilities and promoting sustainable development[104].

Financial Performance - For the first half of 2020, the company's revenue was RMB 1,453.9 million, a decrease of RMB 196.7 million or 11.9% compared to the same period in 2019[10] - The operating profit for the first half of 2020 was RMB 177.8 million, down RMB 188.5 million or 51.5% from RMB 366.3 million in the same period of 2019[10] - The net loss for the first half of 2020 was RMB 87.8 million, a decrease of RMB 233.1 million or 160.4% compared to a profit of RMB 145.3 million in the same period of 2019[10] - The net profit margin attributable to equity holders of the company was negative 6.3%, a decrease of 15.1 percentage points from 8.8% in the same period of 2019[10] - The group reported a loss of RMB 87.8 million for the first half of 2020, a decrease of RMB 233.1 million or 160.4% compared to a profit of RMB 145.3 million in the same period of 2019[68] - The company reported a net loss before tax of RMB 33,355,000 for the six months ended June 30, 2020, compared to a profit of RMB 212,683,000 for the same period in 2019[169] Revenue Breakdown - The overseas market revenue for the first half of 2020 was RMB 743.7 million, a decrease of RMB 234.4 million or 24.0% compared to RMB 978.1 million in the same period of 2019[13] - The domestic market revenue increased to RMB 710.2 million, up RMB 37.7 million or 5.6% from RMB 672.5 million in the same period of 2019[13] - Revenue from the Iraq market in the first half of 2020 was approximately RMB 547.6 million, a decrease of about 26.4% compared to RMB 744.5 million in the same period last year[17] - Revenue from other overseas markets was approximately RMB 196.1 million, down about 16.1% from RMB 233.6 million in the same period last year[18] - Revenue from the Chinese market in the first half of 2020 was approximately RMB 710.2 million, an increase of about 5.6% from RMB 672.5 million in the same period last year[22] - Total revenue for the six months ended June 30, 2020, was RMB 1,453,938,000, a decrease from RMB 1,650,588,000 for the same period in 2019, representing a decline of approximately 11.93%[166] Operational Metrics - The company's accounts receivable balance as of June 30, 2020, was approximately RMB 2,189.6 million, with an average turnover period of 261 days, an increase of 49 days year-on-year[10] - The company's cash flow from operations was RMB 95.4 million, a significant decrease of RMB 172.6 million from RMB 268.0 million in the same period of 2019[10] - The average accounts receivable turnover days increased by 49 days to 261 days in the first half of 2020, primarily due to a decline in revenue and adjustments in customer payment plans[70] - The company maintained timely communication with global management teams and oil company clients to assess business impacts due to market changes[151] Cost and Expenses - Operating costs decreased from RMB 1,091.0 million in 2019 to RMB 1,036.5 million in the first half of 2020, a decline of 5.0%, mainly due to the drop in revenue[54] - Net financial expenses increased by approximately RMB 57.4 million or 37.3% to RMB 211.3 million in the first half of 2020, primarily due to increased financial interest from long-term bonds issued in December 2019[66] - The company reported a gross profit of RMB 417,483 thousand, down 25.3% from RMB 559,637 thousand in the previous year[129] - The impairment provision for trade receivables for the six months ended June 30, 2020, was RMB 36,549,000, compared to RMB 19,898,000 for the same period in 2019, showing an increase of approximately 83.83%[166] Investment and R&D - Capital expenditures in the first half of 2020 amounted to RMB 122.9 million, an increase of RMB 53.0 million compared to RMB 69.9 million in the same period last year[40] - R&D investment increased by 36.0% to RMB 18.9 million from RMB 13.9 million in the previous year, focusing on technology improvements and innovations[44] - The company has reassigned certain buildings previously used for general management to operational departments, indicating a strategic shift towards enhancing operational capabilities[171] Market Conditions and Future Outlook - The outbreak of COVID-19 and the subsequent quarantine measures negatively impacted the group's operations and financial performance, leading to a decrease in revenue[151] - The company has not provided specific guidance for future performance, indicating uncertainty in market conditions[129] - The company aims to leverage opportunities in the Chinese market, particularly in natural gas, to mitigate the impacts of the pandemic on its business[9] Shareholder Information - As of June 30, 2020, the largest shareholder, Mr. Luo Lin, held 727,898,330 shares, representing 24.26% of the company's equity[89] - Pro Development Holdings Corp. holds 664,140,740 shares, representing 22.08% of the company's equity[105] - Nomura Holdings, Inc. controls 420,444,000 shares (13.98% equity) and has a short position of 277,734,000 shares (9.23%)[107] - The total number of stock options granted as of June 30, 2020, is 445,158,259[102] Assets and Liabilities - Total assets as of June 30, 2020, amount to RMB 8,862,705,000, a decrease from RMB 9,506,812,000 as of December 31, 2019[122] - The company's total liabilities decreased to RMB 5,983,837 thousand as of June 30, 2020, down from RMB 6,549,149 thousand at the end of 2019, representing a reduction of 8.7%[125] - The total equity attributable to equity holders of the company decreased to RMB 2,878,868 thousand as of June 30, 2020, down from RMB 2,957,663 thousand at the beginning of the year[136]

Company Overview - Anton Oilfield Services Group operates in over 30 countries and regions, focusing on integrated oilfield technology services to maximize oil and gas asset value[4]. - The company aims to become a leading integrated oilfield technology service provider globally, despite the challenges posed by the COVID-19 pandemic and fluctuating oil prices[53]. - The company provides integrated technical services for oil and gas field development, covering various stages including drilling, completion, and production[144]. Financial Performance - The company reported a comprehensive income of approximately $X million for the year 2019, reflecting a Y% increase compared to the previous year[3]. - The company's revenue for 2019 reached RMB 3,589.5 million, representing a growth of approximately 22.3% compared to 2018[46]. - Net profit attributable to shareholders was RMB 268.6 million, an increase of about 20.8% year-on-year[46]. - Free cash flow reached approximately RMB 239 million, marking a 4.5 times increase from the previous year, the highest level in the company's history[46]. - The company's operating profit for 2019 was RMB 719.6 million, up RMB 75.3 million or 11.7% from RMB 644.3 million in 2018[64]. - The net profit for 2019 was RMB 282.4 million, representing an increase of RMB 31.7 million or 12.6% compared to RMB 250.7 million in 2018[64]. - The average turnover days for trade receivables decreased by 24 days to 196 days in 2019, while inventory turnover days decreased by 16 days to 120 days[64]. - The company achieved a significant increase in cash flow, with free cash flow reaching RMB 238.8 million, a growth of 450.7% compared to 2018[61]. - The capital-to-debt ratio increased to 67.0% in 2019 from 59.7% in 2018, a rise of 7.3 percentage points[124]. - Net cash inflow from operating activities for the year was RMB 610.3 million, an increase of RMB 190.3 million compared to the previous year[127]. Market Performance - The domestic market experienced a revenue growth of 55.3%, particularly in the high-end technology demand sector in the Xinjiang natural gas market[47]. - Revenue from the overseas market was RMB 1,906.1 million, a 2.9% increase from RMB 1,852.2 million in 2018, accounting for 53.1% of total revenue[65]. - Revenue from the Iraq market was RMB 1,419.8 million, an increase of RMB 249.2 million or 21.3% compared to RMB 1,170.6 million in 2018[68]. - Domestic market revenue surged by 55.3% to RMB 1,683.4 million, up from RMB 1,083.7 million in 2018, representing 46.9% of total revenue[65]. - In the Chinese market, new orders totaled approximately RMB 2,763.0 million, a significant increase of 90.8% from RMB 1,448.2 million in 2018[77]. - The company successfully replicated its oilfield management business model in emerging markets, winning the Chad oilfield management project[47]. Business Segments - The two main business segments, oilfield technology services and oilfield management services, showed rapid development during the year[47]. - The drilling technology service cluster is a key profit center, providing comprehensive drilling services from project design to execution, addressing challenges such as directional drilling and drilling speed[5]. - Anton is recognized as a leading provider of directional drilling services in China, enhancing oil and gas recovery rates through advanced techniques[9]. - The company offers integrated completion services, including solid and production completion solutions, tailored to various geological conditions[16]. - The drilling technology cluster generated revenue of RMB 1,624.2 million, a 21.2% increase from RMB 1,339.9 million in 2018, accounting for 45.2% of total revenue[78]. - The completion technology cluster's revenue was RMB 836.0 million, up 12.7% from RMB 741.8 million in 2018, representing 23.3% of total revenue[78]. - The oil extraction service cluster reported revenue of RMB 1,129.3 million, a 32.2% increase from RMB 854.2 million in 2018, making up 31.5% of total revenue[78]. Research and Development - Anton has established a strong R&D team for drilling fluids, focusing on high-performance systems to address complex downhole issues[10]. - The company's R&D investment in 2019 was RMB 51.7 million, up 84.6% from RMB 28.0 million in the previous year[97]. - The company emphasizes the development of acid fracturing and chemical material technologies to enhance production efficiency[20]. Strategic Initiatives - The company aims to expand its market presence through innovative technologies and strategic partnerships in emerging oil and gas markets[4]. - The company continues to implement a "light asset" strategy focused on cash flow and return on net assets, enhancing business returns[47]. - The company is committed to a "platform-based" operation strategy, focusing on healthy cash flow and optimizing cost structures to enhance asset efficiency[50]. - The company is advancing its "digital transformation" to create a comprehensive digital management system, enhancing operational efficiency and reducing management costs[52]. - The company plans to strengthen cooperation with financial institutions to ensure liquidity while pursuing quality growth through improved operational efficiency[105]. Governance and Compliance - The company adheres to all provisions of the Corporate Governance Code as outlined in the listing rules during the year ended December 31, 2019[138]. - Independent non-executive directors confirmed their independence according to the listing rules, ensuring compliance with governance standards[184]. - The company has established a remuneration committee to propose the remuneration policy and structure for all directors[183]. Shareholder Information - The board of directors decided not to recommend a final dividend for the year ended December 31, 2019, due to the impact of COVID-19 and recent oil price volatility, compared to a dividend of RMB 30.1 million for 2018[148]. - Pro Development Holdings Corp. holds 664,140,740 shares, representing approximately 22.08% of the company's equity[191]. - Nomura Holdings, Inc. controls 507,147,687 shares, accounting for approximately 16.86% of the company's equity, and has a short position of 323,552,800 shares, which is about 10.76%[191][193]. - China Oil HBP Science & Technology Co., Ltd. owns 308,211,113 shares, equivalent to approximately 10.25% of the company's equity, with a short position of 183,111,113 shares, or 6.09%[191][194].

Financial Performance - For the first half of 2019, the company's revenue was RMB 1,650.6 million, an increase of RMB 484.7 million or 41.6% compared to the same period in 2018[13] - Operating profit for the same period was RMB 366.3 million, up RMB 58.8 million or 19.1% year-on-year[13] - Net profit reached RMB 145.3 million, representing an increase of RMB 31.9 million or 28.1% compared to the previous year[13] - The company's cash flow from operations was RMB 268.0 million, significantly up by RMB 222.5 million from RMB 45.5 million in the same period last year[13] - The net profit margin attributable to equity holders of the company improved to 8.8%, up 1.5 percentage points from 7.3% in the previous year[13] - Basic earnings per share for the period was RMB 0.0484, compared to RMB 0.0319 in the previous year, reflecting a 52.1% increase[131] - The company reported a gross profit of RMB 559,637 thousand for the six months ended June 30, 2019, which is a 21.6% increase from RMB 460,175 thousand in the same period of 2018[131] - The total comprehensive income for the period was RMB 86,601 thousand, compared to RMB 29,132 thousand in the same period of 2018, reflecting a substantial growth[142] Revenue Breakdown - Overseas market revenue was RMB 978.1 million, a 30.0% increase from RMB 752.1 million in the previous year, accounting for 59.3% of total revenue[16] - Revenue from the Iraq market surged to RMB 744.5 million, a 77.0% increase from RMB 420.6 million in the previous year, making up 45.1% of total revenue[16] - Domestic market revenue increased by 62.5% to RMB 672.5 million, compared to RMB 413.8 million in the same period last year[16] - The drilling technology service cluster generated revenue of RMB 741.8 million, an increase of 20.4% from RMB 615.9 million in the first half of 2018, accounting for 44.9% of total revenue[32] - The completion technology service cluster reported revenue of RMB 373.7 million, up 30.7% from RMB 286.0 million year-on-year, contributing 22.6% to total revenue[32] - The oil extraction service cluster saw revenue of RMB 535.1 million, a remarkable increase of 102.7% from RMB 264.0 million in the same period last year, making up 32.5% of total revenue[32] Orders and Market Strategy - In the first half of 2019, the company secured new orders in Iraq amounting to approximately RMB 740.1 million, a decrease of 51.6% compared to RMB 1,528.7 million in the same period last year, primarily due to the absence of large management service orders[23] - The company achieved a total of RMB 1,648.2 million in new orders from the Chinese market, a growth of approximately 69.8% from RMB 970.6 million year-on-year[31] - The company actively focused on high-quality project orders, resulting in a reduction of new orders in emerging markets like Ethiopia and Kazakhstan, while continuing to push forward in the Chad market[24] - The company plans to continue expanding its presence in emerging global markets, focusing on high-quality project opportunities[24] Cash Flow and Capital Management - The company achieved positive free cash flow for the first time in the first half of the year, exceeding the total free cash flow for the entire year of 2018[12] - The net cash inflow from operating activities for the first half of 2019 was RMB 268.0 million, an increase of RMB 222.5 million compared to the same period in 2018[86] - Capital expenditures were controlled at RMB 69.9 million, a 50.3% increase from RMB 46.5 million in the same period last year, adhering to a "light asset" operational model[50] - The net cash outflow from investing activities for the same period was RMB 69,944 thousand, while it was RMB 46,509 thousand in 2018, indicating a higher investment in 2019[146] - The net cash outflow from financing activities was RMB 251,293 thousand, a decrease from RMB 691,507 thousand in the previous year, showing improved cash management[146] Research and Development - R&D investment increased to RMB 13.9 million, up 75.9% from RMB 7.9 million in the previous year, focusing on various advanced drilling technologies[52] - Research and development expenses increased to RMB 13,913 thousand, up 75.5% from RMB 7,929 thousand in the previous year[131] Shareholder Information - Major shareholder Pro Development Holdings Corp. holds 664,140,740 shares, representing 22.09% of the total shares[107] - Major shareholder Hong Kong Huihua Global Technology Limited holds 356,000,009 shares, representing 11.84% of the total shares[107] - Nomura Holdings, Inc. controls 507,652,400 shares, representing 16.89% of the total shares[107] - The company plans to continue its strategy of granting stock options to incentivize employees and align their interests with shareholders[98] Compliance and Governance - The company maintained compliance with the Corporate Governance Code throughout the reporting period[118] - The Audit Committee, consisting of three independent non-executive directors, reviewed the interim financial statements for the six months ended June 30, 2019[118] - The company has established an Audit Committee as required by the listing rules and corporate governance code[118] IFRS 16 Implementation - The company adopted IFRS 16 for leases, which may impact future financial reporting and asset management strategies[153] - The company recognized lease liabilities of RMB 28,463 thousand after applying IFRS 16, which includes current liabilities of RMB 8,692 thousand and non-current liabilities of RMB 19,771 thousand[174] - The right-of-use assets recognized after applying IFRS 16 amounted to RMB 106,030 thousand, which includes RMB 77,567 thousand from prepaid lease payments and RMB 28,463 thousand from operating leases[174] - The transition to IFRS 16 did not have a significant impact on retained earnings as of January 1, 2019[181]