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]

Company Overview - Anton Oilfield Services Group is a leading independent integrated oilfield engineering and technical service provider in China, focusing on oil and gas field development and production processes[4]. - The company reported significant growth driven by the rapid development of domestic natural gas and expansion into overseas markets, aiming to become a global leader in integrated oilfield technology services[4]. - The company operates through three profit centers: drilling technology cluster, completion technology cluster, and oil recovery service cluster, providing comprehensive solutions for various technical challenges[4]. Services and Technology - Anton Oilfield Services Group offers integrated drilling services, including directional drilling, well completion, and oilfield environmental technology, enhancing production efficiency and reducing costs[7]. - The completion technology service cluster provides integrated solutions for solid and production completion, addressing various technical challenges faced by oil companies[9]. - The company emphasizes the development of new technologies and tools, including advanced completion tools and environmental protection technologies for oilfield exploration and development[9]. - The company is committed to improving production safety and efficiency, particularly in high-pressure and high-sulfur wells, through innovative solutions[7]. Market Presence and Strategy - The company has established a strong international network, covering regions in China and overseas markets such as Iraq, the Middle East, Central Asia, Africa, and the Americas[4]. - Anton Oilfield Services Group aims to enhance its market presence through strategic partnerships and technological advancements in the oilfield services sector[4]. - Future outlook includes continued expansion in both domestic and international markets, leveraging its expertise in integrated oilfield services to capture growth opportunities[4]. Financial Performance - Total revenue for 2018 reached RMB 2,935.9 million, representing a 33.4% increase from RMB 2,202.7 million in 2017[14]. - Operating profit for 2018 was RMB 644.3 million, up from RMB 473.7 million in 2017, indicating a growth of 36.0%[14]. - The net profit attributable to equity holders for 2018 was RMB 222.4 million, compared to RMB 54.5 million in 2017, marking a significant increase[14]. - The company reported a total asset value of RMB 7,246.6 million in 2018, a decrease from RMB 7,747.5 million in 2017[18]. - Non-current assets totaled RMB 3,002.5 million in 2018, down from RMB 3,367.8 million in 2017[18]. - The company’s total liabilities were RMB 4,552.0 million in 2018, compared to RMB 4,800.5 million in 2017, reflecting a reduction in debt[18]. - Revenue from domestic operations accounted for 63.1% of total revenue in 2018, while overseas operations contributed 36.9%[20]. Revenue Breakdown - The revenue breakdown by industry cluster showed 45.6% from oil extraction services, 25.3% from drilling technology, and 29.1% from completion technology in 2018[23]. - In 2018, the company achieved a historical high in new orders amounting to approximately RMB 4,055.2 million, with a year-end backlog of RMB 4,350.3 million, marking a record high[28]. - The company successfully upgraded its business model by taking over Iraq's third-largest oil field, the Majnoon oil field, which has been operating efficiently for six months[27]. Operational Efficiency - The company reduced capital expenditures by approximately RMB 318.7 million compared to the previous year, despite increasing the number of drilling equipment used by 11 sets[27]. - The company achieved a 31.7% reduction in drilling cycle time in the shale gas market, enhancing resource development efficiency for clients[29]. - The company is committed to optimizing its management and enhancing operational efficiency, safety, and quality management levels[30]. Talent and Human Resources - The total number of employees increased by 1,449 in 2018, with 80% of new hires being project-based employees, and overseas staff accounting for 55.8% of the total workforce[64]. - The company will focus on attracting top talent in oilfield management and technical services to build a global talent pool[30]. Shareholder Information - The company declared a dividend of RMB 30 million for the year 2018[14]. - The major shareholder Credit Suisse Trust Limited holds 664,140,740 shares, representing approximately 22.12% of the company's equity[135]. - The company granted a total of 70,000,000 share options under its share option scheme on April 3, 2018, aimed at recognizing contributions from eligible participants[137]. Corporate Governance - The company has established an audit committee composed of three independent non-executive directors to review the audited financial statements for the year ended December 31, 2018[90]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring independent and objective operations[169]. - The company has adopted a standard code for securities trading by directors, confirming compliance throughout the year[181]. Risk Management and Compliance - The company emphasizes risk management and internal controls as part of its governance framework[170]. - The group has complied with all relevant laws and regulations that significantly impact its business operations[105].