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].

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].