Financial Performance - The net profit attributable to shareholders for 2021 was RMB 179,791 thousand according to Chinese accounting standards, and RMB 140,450 thousand according to International Financial Reporting Standards[2]. - The company's retained earnings at the end of 2021 were negative RMB 1,529,605 thousand, leading to a recommendation of no cash dividend distribution for the year[2]. - The company's operating revenue for 2021 was RMB 69,533,053 thousand, representing a 2.1% increase from RMB 68,073,394 thousand in 2020[12]. - The net profit attributable to shareholders for 2021 was RMB 179,791 thousand, a significant increase of 127.6% compared to RMB 78,978 thousand in 2020[12]. - The basic earnings per share for 2021 was RMB 0.009, up 125.0% from RMB 0.004 in 2020[13]. - The net cash flow from operating activities for 2021 was RMB 6,206,909 thousand, an increase of 38.8% compared to RMB 4,471,820 thousand in 2020[12]. - The total assets at the end of 2021 were RMB 64,052,447 thousand, reflecting a 4.8% increase from RMB 61,091,195 thousand at the end of 2020[19]. - The total liabilities at the end of 2021 were RMB 57,190,930 thousand, compared to RMB 54,368,329 thousand at the end of 2020[19]. - The company's net assets attributable to shareholders at the end of 2021 were RMB 6,861,517 thousand, a 2.1% increase from RMB 6,722,866 thousand at the end of 2020[14]. - The weighted average return on equity for 2021 was 2.64%, an increase of 1.48 percentage points from 1.16% in 2020[13]. Audit and Compliance - The annual report has been audited by Lixin CPA and Hong Kong Lixin Dehao CPA, both issuing standard unqualified audit opinions[1]. - The company is committed to ensuring the authenticity, accuracy, and completeness of the annual report[1]. - The company operates under the supervision of the China Securities Regulatory Commission[4]. - There are no significant risks that need to be highlighted in the report[2]. - The company has proposed no capital reserve fund conversion to share capital due to negative retained earnings[2]. - The board of directors has approved the annual report, which will be submitted for shareholder meeting review[2]. Strategic Initiatives - The company signed new contracts worth RMB 70.9 billion in 2021, an increase of RMB 1.1 billion compared to the previous year[22]. - The company plans to sign new contracts worth RMB 72 billion in 2022, focusing on key markets such as Sinopec and CNOOC[27]. - The company aims to enhance its technological capabilities by overcoming 17 key core technologies in 2022[27]. - The company is committed to expanding its presence in the new energy market, including CCUS and geothermal projects[27]. - The company is focused on internal reforms to improve project management and operational efficiency[28]. Research and Development - The company applied for 897 patents and was granted 542, setting a new record for the year[23]. - Research and development expenditure increased by 21.9% to RMB 1,669,706 thousand, representing 2.4% of total revenue, focusing on key technologies such as the I-type rotary steering system and high-temperature imaging logging instruments[55][56]. - The total number of R&D personnel is 3,246, representing 4.7% of the company's total workforce, with a significant portion holding advanced degrees[57]. Environmental and Social Responsibility - The company emphasizes energy conservation and green low-carbon development, adhering to relevant environmental laws and international conventions[199]. - The company has established a comprehensive environmental impact assessment system to enhance environmental control[195]. - In 2021, the company was not listed among the severely polluting enterprises by Chinese environmental authorities and did not face major environmental or social safety issues[195]. - The company conducted 7 board meetings during the reporting period, focusing on financial reports and audit plans[141]. Management and Governance - The company has a diverse board of directors with backgrounds in engineering, finance, and management, enhancing its strategic capabilities[112][113][114][115]. - The company has maintained a stable executive team with no significant changes in roles or responsibilities reported[110]. - The board includes non-executive directors with significant industry experience, contributing to governance and oversight[113][114][115]. - The company has established a nomination committee to review the board's structure and diversity, with a focus on skills and experience necessary for effective governance[170]. Financial Management - The company has a cash dividend policy that mandates a minimum of 40% of the net profit attributable to shareholders be distributed as cash dividends, but no dividends will be distributed for 2021 due to negative retained earnings[144]. - The company is advised to actively plan for the challenges and opportunities presented by carbon neutrality and energy transition, which could impact the oil service sector[142]. - The company has implemented a differentiated compensation system that links employee remuneration to performance assessments, aiming to motivate staff effectively[143]. Risk Management - The company has established and continuously improved risk management and internal control systems to mitigate operational, financial, and compliance risks[179]. - The audit committee reviewed the company's financial reports for the fiscal year 2020 and the first three quarters of 2021, holding five meetings during the reporting period[181]. - The company has adopted the COSO framework for internal control and risk management, conducting annual risk assessments to identify significant risks[180].

Financial Performance - The company's operating revenue for Q3 2021 was RMB 15,143,830 thousand, representing a year-on-year increase of 1.0%[4] - The net profit attributable to shareholders of the listed company was a loss of RMB 48,217 thousand, with a year-to-date net profit of RMB 320,341 thousand, reflecting a 38.3% increase compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of RMB 139,983 thousand, with a year-to-date figure of RMB 170,635 thousand, showing a 36.7% increase year-on-year[4] - The basic and diluted earnings per share for Q3 2021 were both -0.003 yuan, while the year-to-date earnings per share were 0.017 yuan, an increase of 41.7%[5] - Total operating revenue for the first three quarters of 2021 reached RMB 46,713,891 thousand, a slight increase from RMB 46,427,919 thousand in the same period of 2020, representing a growth of 0.62%[18] - Net profit for the first three quarters of 2021 was RMB 320,341 thousand, up from RMB 231,703 thousand in the same period of 2020, reflecting a growth of 38.2%[19] - The company reported basic and diluted earnings per share of 0.017 RMB for Q3 2021, up from 0.012 RMB in Q3 2020, representing a growth of 41.7%[20] Assets and Liabilities - The total assets at the end of the reporting period were RMB 63,707,838 thousand, an increase of 4.3% compared to the end of the previous year[5] - Total assets as of September 30, 2021, amounted to RMB 63,707,838 thousand, an increase from RMB 61,091,195 thousand at the end of 2020, showing a growth of 4.3%[17] - Total liabilities as of September 30, 2021, were RMB 56,257,260 thousand, compared to RMB 54,368,329 thousand at the end of 2020, representing an increase of 3.48%[17] - The company's total equity attributable to shareholders increased to RMB 7,450,578 thousand from RMB 6,722,866 thousand at the end of 2020, an increase of 10.83%[17] Cash Flow - The net cash flow from operating activities was RMB -186,766 thousand, a significant decrease of 129.7% year-on-year[4] - Net cash flow from operating activities for the first three quarters of 2021 was -186,766 thousand RMB, compared to 628,588 thousand RMB in the same period of 2020, indicating a decline[21] - Cash inflow from financing activities was 44,444,242 thousand RMB in the first three quarters of 2021, up from 39,565,093 thousand RMB in the same period of 2020, reflecting an increase of approximately 7.1%[22] - Net cash flow from financing activities for the first three quarters of 2021 was 676,230 thousand RMB, compared to 132,361 thousand RMB in the same period of 2020, showing significant improvement[22] - The company reported a net cash flow from investment activities of -653,292 thousand RMB for the first three quarters of 2021, slightly worse than -643,514 thousand RMB in the same period of 2020[22] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 142,279, with the largest shareholder being China Petroleum & Chemical Corporation, holding 56.51% of the shares[10] Costs and Expenses - The total operating costs for the first three quarters of 2021 were RMB 46,619,720 thousand, compared to RMB 46,199,581 thousand in 2020, indicating an increase of 0.91%[18] - The company has implemented strict cost control measures, resulting in a reduction of financing costs and a decrease in period expenses year-on-year[7] - Research and development expenses for the first three quarters of 2021 were RMB 578,756 thousand, down from RMB 803,877 thousand in the same period of 2020, a decrease of 28%[18] Inventory and Receivables - Cash and cash equivalents decreased to RMB 1,350,538 thousand from RMB 1,551,458 thousand at the end of 2020, a decline of 12.93%[15] - Accounts receivable decreased to RMB 8,089,111 thousand from RMB 9,358,385 thousand at the end of 2020, a reduction of 13.6%[15] - Inventory increased to RMB 1,555,453 thousand from RMB 1,033,678 thousand at the end of 2020, reflecting a growth of 50.5%[15] Compliance and Reporting - The company has not adopted the new leasing standards for the current year, indicating a potential area for future compliance and reporting adjustments[23]

( 股票代號 A 股：600871； H 股：1033) 2021 半年度報告 Sinopec Oilfield Service Corporation 中石化石油工程技術服務股份有限公司 Interim Report 2021 半年度報告 重要提示 一、本公司董事會、監事會及董事、監事、高級管理人員保證半年度報告內容的真實、準確、完整，不存在 虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律責任。 二、 2021年半年度報告已經本公司第十屆董事會第五次會議審議通過。本公司共有7位董事出席了本次董事 會會議，董事魏然先生、樊中海先生因公請假，分別委託董事陳錫坤先生、周美雲先生出席會議並行使 權利。 三、本公司按照中國企業會計準則及按照國際財務報告準則編製的2021年半年度財務報告均未經審計；但本 公司按國際財務報告準則編製的2021年半年度財務報告已經香港立信德豪會計師事務所有限公司審閱。 四、本公司董事長陳錫坤先生、總經理袁建強先生、總會計師程中義先生及會計機構負責人裴德芳先生保證 本半年度報告中財務報告的真實、準確、完整。 五、根據《公司章程》，董事會決議不派發截至2021年12月31日止年度之半年 ...

Financial Performance - The company reported a total revenue of RMB 10.5 billion for the first half of 2021, representing a year-on-year increase of 15%[2]. - The net profit attributable to shareholders for the first half of 2021 was RMB 1.2 billion, up 20% compared to the same period last year[2]. - The company's operating revenue for the reporting period was RMB 31,570,061 thousand, a slight increase of 0.4% compared to the same period last year[11]. - The net profit attributable to shareholders was RMB 368,558 thousand, representing a significant increase of 23.6% year-on-year[11]. - The net cash flow from operating activities reached RMB 358,861 thousand, up 27.6% from the previous year[11]. - The total new contract amount signed reached RMB 437.9 billion, a year-on-year growth of 1.9%[19]. - The drilling services segment generated revenue of RMB 15,712,885 thousand, a decrease of 7.1% from RMB 16,917,552 thousand in the previous year[21]. - The engineering construction services segment achieved revenue of RMB 7,868,764 thousand, reflecting a 15.8% increase from RMB 6,792,317 thousand year-on-year[24]. - The international business revenue was RMB 4,356,273 thousand, down 29.7% from RMB 6,195,560 thousand in the same period last year, accounting for 14.0% of total revenue[25]. Strategic Initiatives - The company plans to invest RMB 500 million in new technology development and product innovation in the upcoming fiscal year[2]. - The company is exploring potential mergers and acquisitions to enhance its market position and service capabilities[2]. - The company has established a strategic partnership with a leading energy firm to expand its market presence in Southeast Asia[2]. - The company aims to expand its services from onshore to offshore and from domestic to international markets, focusing on both conventional and unconventional oil and gas services[15]. - The company is focusing on enhancing exploration and development capabilities while optimizing market layout and resource allocation[40]. - The company is committed to its internationalization strategy, focusing on contract renewals in key markets like Saudi Arabia and Kuwait, and aims to restart operations in Mexico[46]. Operational Efficiency - The company has successfully launched a new carbon capture technology, which is expected to reduce operational costs by 15%[2]. - The company has implemented a new employee incentive program aimed at increasing productivity by 30% over the next year[2]. - The average utilization rate of domestic drilling teams was 83.6%, an increase of 3.6 percentage points year-on-year[21]. - The company completed 16 wells with a total drilling footage of 8,171 meters as part of its key technology projects[26]. - The company is implementing internal reforms to optimize resource allocation and improve operational efficiency, including project management system enhancements[48]. Financial Position - The total assets at the end of the reporting period were RMB 63,979,713 thousand, reflecting a growth of 4.7% compared to the end of the previous year[14]. - The company's total liabilities included short-term borrowings of RMB 19,856,969 thousand, accounting for 31.0% of total assets[31]. - The company's equity attributable to shareholders was RMB 7.42 billion, an increase of RMB 694.26 million compared to the end of 2020[56]. - The company's total liabilities reached RMB 56.56 billion, reflecting an increase of RMB 2.19 billion from the previous year, with current liabilities accounting for RMB 54.83 billion[56]. - The company's cash and cash equivalents decreased by 3.2% to RMB 1,502,164 thousand from RMB 1,551,458 thousand at the end of the previous period[31]. Research and Development - The company applied for 369 domestic and international patents, with 315 patents granted during the first half of 2021[26]. - The company's research and development expenses decreased by 43.7% to RMB 349,034 thousand, down from RMB 619,803 thousand in the previous year[29]. - The company is focusing on technological research and development, particularly in areas such as shale gas and carbon capture, to enhance its service capabilities[47]. Environmental and Social Responsibility - The company reported a total of 92.1 million tons of general solid waste and 9.3 million tons of hazardous waste disposed of in compliance with regulations in the first half of 2021[77]. - The company achieved a 3.9% year-on-year reduction in comprehensive energy consumption per 10,000 yuan of industrial output, amounting to 0.223 tons of standard coal[77]. - The company has established an environmental emergency management system and regularly conducts training and drills for emergency response[78]. - The company has actively promoted the creation of green projects, with 585 teams passing the green grassroots creation evaluation in the first half of 2021[77]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[76]. Shareholder and Governance - The total number of shareholders as of June 30, 2021, is 116,013, with 115,676 holding A-shares and 337 holding H-shares[98]. - The company has no significant contracts to disclose other than those already mentioned in the report[93]. - The company confirmed that all related party transactions were conducted on normal commercial terms and in compliance with regulatory requirements[87]. - The company appointed Lixin Certified Public Accountants as its domestic and overseas auditors for the fiscal year 2021[81]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[109]. Risk Management - The company faces various risks, including market competition, health and safety, and foreign operational risks, which could impact its business performance[51][52][53]. - The company recognizes provisions for expected liabilities when there is a present obligation that is likely to result in an outflow of economic benefits and can be reliably measured[182]. Accounting and Financial Reporting - The company's financial report is prepared in accordance with Chinese accounting standards, with the balance sheet as of June 30, 2021, presented in thousands of RMB[110]. - The company recognizes revenue when control of goods or services is transferred to the customer, indicating the customer can dominate the use and obtain almost all economic benefits[187]. - The company employs a fair value measurement for share-based payments, recognizing costs based on the fair value of equity instruments granted[184]. - The company recognizes contract liabilities for obligations to transfer goods or services for which it has received or is entitled to receive consideration from customers[176].

Financial Performance - Operating revenue for the period was CNY 14,599,813, representing a year-on-year increase of 13.5%[4] - Net profit attributable to shareholders was CNY 165,646, a significant recovery from a loss of CNY 182,308 in the same period last year[4] - The diluted earnings per share for the period was CNY 0.01, recovering from a loss of CNY 0.01 in the same period last year[4] - Net profit for Q1 2021 was 165,646 thousand RMB, compared to a net loss of 182,308 thousand RMB in Q1 2020[19] - Earnings per share for Q1 2021 was 0.01 RMB, recovering from a loss of 0.01 RMB per share in Q1 2020[19] - The company reported an operating profit of 178,879 thousand RMB in Q1 2021, compared to an operating loss of 150,372 thousand RMB in Q1 2020[19] Cash Flow - The net cash flow from operating activities improved to -CNY 385,477, compared to -CNY 1,184,219 in the previous year[4] - The net cash flow from operating activities improved significantly, with a net outflow of RMB -385,477 thousand compared to RMB -1,184,219 thousand in the previous year, driven by increased sales receipts[10] - Cash inflow from sales and services reached RMB 10,455,420 thousand, up from RMB 9,332,441 thousand in the same quarter last year, representing a growth of 12.0%[22] - The company reported a total cash outflow from operating activities of RMB 13,979,563 thousand, slightly higher than RMB 13,453,844 thousand in the previous year, an increase of 3.9%[22] - The net cash flow from financing activities was RMB 493,225 thousand, down from RMB 1,654,034 thousand in the same quarter last year, reflecting a decline of 70.2%[23] - The ending balance of cash and cash equivalents was RMB 1,607,539 thousand, down from RMB 1,970,867 thousand year-over-year, a decrease of 18.4%[23] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 61,610,851, an increase of 0.9% compared to the end of the previous year[4] - The total liabilities as of March 31, 2021, were RMB 54,609,003 thousand, compared to RMB 54,368,329 thousand at the end of 2020[14] - Long-term payables increased by 98.0% to RMB 53,099 thousand from RMB 26,812 thousand, primarily due to the return of security funds[9] - Contract liabilities decreased by 30.0% to RMB 2,117,574 thousand from RMB 3,024,461 thousand, attributed to the progress of engineering construction and fulfillment of performance obligations[9] - The total equity of the company was 32,236,429 thousand RMB, reflecting a stable financial position[17] Shareholder Information - The number of shareholders at the end of the reporting period was 116,983, with the largest shareholder, Sinopec Group, holding 56.51% of the shares[6] Government Support and Other Income - The company received government subsidies amounting to CNY 15,086, which are closely related to its normal business operations[5] - Other income increased by 241.0% to RMB 13,478 thousand from RMB 3,952 thousand, mainly due to an increase in non-repayable payables and compensation income[10] Research and Development - Research and development expenses decreased by 48.8% to RMB 85,824 thousand from RMB 167,581 thousand, mainly due to the later arrangement of R&D projects compared to the same period last year[10] - Research and development expenses for Q1 2021 were 85,824 thousand RMB, down 48.7% from 167,581 thousand RMB in Q1 2020[17] Future Plans - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[4] - The company aims to enhance market expansion and product development in the upcoming quarters[19]

Financial Performance - The net profit attributable to shareholders for 2020 was RMB 78,978 thousand according to Chinese accounting standards, while it was RMB -35,737 thousand under International Financial Reporting Standards[2]. - The company's undistributed profits at the end of 2020 were RMB -1,516,087 thousand, leading to a recommendation of no cash dividend distribution for the year[2]. - The company's operating revenue for 2020 was RMB 68,073,394 thousand, a decrease of 2.6% compared to RMB 69,870,147 thousand in 2019[13]. - The net profit attributable to shareholders for 2020 was RMB 78,978 thousand, down 91.4% from RMB 914,244 thousand in 2019[13]. - The basic earnings per share for 2020 was RMB 0.004, a decline of 91.7% compared to RMB 0.048 in 2019[14]. - The weighted average return on equity for 2020 was 1.16%, a decrease of 13.5 percentage points from 14.66% in 2019[14]. - The net cash flow from operating activities for 2020 was RMB -266,915 thousand, compared to RMB 4,471,820 thousand in 2019[13]. - The total assets at the end of 2020 were RMB 61,091,195 thousand, a decrease of 1.6% from RMB 62,069,378 thousand in 2019[14]. - The total liabilities at the end of 2020 were RMB 54,368,329 thousand, down from RMB 55,305,506 thousand in 2019[19]. - The company’s net assets attributable to shareholders at the end of 2020 were RMB 6,722,866 thousand, a slight decrease from RMB 6,763,872 thousand in 2019[19]. Corporate Governance - The annual report has been audited by Deloitte Touche Tohmatsu Certified Public Accountants, which issued a standard unqualified audit opinion[2]. - The board of directors consists of 7 members, with 5 present at the meeting where the annual report was approved[2]. - The company emphasizes that forward-looking statements regarding future plans and strategies involve uncertainties and do not constitute substantive commitments to investors[2]. - The company has not violated any decision-making procedures in providing guarantees to external parties[2]. - The company has established a long-term commitment to prioritize business opportunities that may compete directly or indirectly with its main operations[99]. - The company has adopted the new accounting policy effective January 1, 2020, without significant impact on financial status or results[101]. - The company has not made any significant changes in accounting estimates during the year[101]. - The company has conducted four meetings of the supervisory board in 2020, approving 14 proposals, including the annual financial report and related party transactions[126]. - The independent directors did not raise any objections to the board's proposals during the reporting period, reflecting a consensus on governance matters[187]. - The company has maintained a stable leadership team with no significant changes in executive positions during the reporting period[155]. Operational Highlights - The company signed new contracts totaling RMB 69.8 billion in 2020, an increase of RMB 0.3 billion year-on-year[25]. - The company achieved a revenue of RMB 21,645,475 thousand in Q4 2020, with a net loss of RMB -152,725 thousand[17]. - The company achieved a contract amount of RMB 156 billion in overseas markets, despite challenges posed by the pandemic[25]. - The company has a total of 674 land drilling rigs and 14 offshore drilling platforms, enhancing its service capabilities across the oilfield service industry[23]. - The company established two new technology centers and added 505 authorized patents in the reporting period[25]. - The company plans to sign new contracts worth over RMB 70 billion in 2021, focusing on integrated market expansion[28]. - The company aims to enhance engineering technology service capabilities and optimize both domestic and overseas markets[28]. - The company is committed to strengthening innovation and developing key technologies to improve operational efficiency[28]. Related Party Transactions - The company engaged in significant related party transactions with China Petroleum & Chemical Corporation (Sinopec), including purchasing raw materials and equipment amounting to RMB 10,566,242 thousand, which accounted for 26.8% of similar transaction amounts[112]. - Engineering services provided to Sinopec totaled RMB 43,255,129 thousand, representing 64.2% of similar transaction amounts, highlighting the importance of these services to the company's revenue[112]. - The company reported technology research and development income of RMB 79,300 thousand from Sinopec subsidiaries, which constituted 95.8% of the total R&D income[112]. - The company borrowed RMB 52,974,382 thousand from Sinopec subsidiaries, which accounted for 98.8% of the total borrowings, indicating a strong reliance on Sinopec for financial resources[112]. - The total amount of related party transactions during the reporting period was in compliance with the Hong Kong Listing Rules, ensuring transparency and fairness in dealings[115]. Environmental and Social Responsibility - The company has established an environmental emergency management system and regularly conducts emergency drills[124]. - In 2020, the company disposed of 1,347,500 cubic meters of drilling wastewater and 597,000 cubic meters of domestic sewage in compliance with regulations[124]. - The company promoted new technologies and devices to reduce energy consumption and pollutant emissions, including gas engines and energy-saving variable frequency motors[124]. - The company has received recognition for its green initiatives, with three subsidiaries awarded the title of "Green Enterprise" by China Petroleum & Chemical Corporation[124]. Employee and Management Information - The company employs a total of 71,736 staff, including 39,282 production personnel and 22,113 technical personnel[174]. - The company has established a differentiated compensation incentive plan based on basic salary, performance bonuses, and long-term incentives[175]. - The company emphasizes employee training, focusing on enhancing job performance capabilities and building a talent pipeline[177]. - The company has a structured training management system that includes various training programs for management, technical, and operational staff[177]. - The company has a total of 3,656 employees with a master's degree or higher[174]. Future Outlook - The company anticipates steady growth in domestic oil and gas demand, driven by a projected GDP growth of over 6% in China[65]. - The company plans to invest RMB 3.5 billion in capital expenditures in 2021, focusing on exploration and development equipment[75]. - The company aims to maintain its position as the largest international geophysical contractor in Algeria while expanding into key overseas markets such as Saudi Arabia and Africa[67]. - The company plans to enhance its project management system to improve resource allocation and operational efficiency[74].

Financial Performance - Net profit attributable to shareholders decreased by 68.0% to CNY 231,703,000 year-on-year[5] - Operating revenue for the first nine months decreased by 2.5% to CNY 46,427,919,000 compared to the same period last year[5] - Basic earnings per share decreased by 68.4% to CNY 0.012 per share[6] - The weighted average return on net assets decreased by 8.41 percentage points to 3.37%[5] - Total operating revenue for Q3 2020 was 14,995,482 thousand RMB, a decrease of 13.5% compared to 17,343,907 thousand RMB in Q3 2019[22] - Net profit for Q3 2020 was -66,574 thousand RMB, compared to a net profit of 213,765 thousand RMB in Q3 2019, indicating a significant decline[22][23] - Basic earnings per share for Q3 2020 were -0.004 RMB, compared to 0.011 RMB in Q3 2019[23] - Total comprehensive income for the first three quarters of 2020 was CNY -15,815, compared to CNY -13,492 in the same period of 2019, indicating a decline of about 17.2%[25] Cash Flow - Net cash flow from operating activities decreased by 30.0% to CNY 628,588,000 year-on-year[5] - Cash flow from operating activities for the first three quarters of 2020 was CNY 42,910,576, down from CNY 47,286,692 in 2019, a decrease of about 9.0%[26] - Cash flow from operating activities in Q3 2020 was CNY 628,588, compared to CNY 897,769 in Q3 2019, reflecting a decline of approximately 30.0%[27] - The net increase in cash and cash equivalents for Q3 2020 was -11 million, resulting in a total cash balance of 159 million at the end of the period[29] - The beginning cash and cash equivalents balance was 170 million, indicating a decrease of 11 million during the quarter[29] Assets and Liabilities - Total assets increased by 5.5% to CNY 65,467,095,000 compared to the end of the previous year[5] - Total liabilities rose to 58,118,068 thousand RMB from 55,305,506 thousand RMB, indicating increased financial obligations[18] - The company's equity attributable to shareholders increased to 7,349,027 thousand RMB from 6,763,872 thousand RMB, showing improvement in shareholder value[18] - The total assets as of September 30, 2020, were 32,290,057 thousand RMB, slightly down from 32,291,674 thousand RMB at the end of 2019[20] - Total liabilities for Q3 2020 were 50,239 thousand RMB, an increase from 38,339 thousand RMB in Q3 2019[21] - The total equity attributable to shareholders was 32,239,818 thousand RMB, down from 32,253,335 thousand RMB at the end of 2019[21] Operational Changes - Accounts receivable decreased to 0 from 500 thousand RMB, a 100% change, due to improved capital efficiency and reclassification to financing receivables[13] - Prepayments increased by 40.8% to 779,619 thousand RMB, primarily due to increased construction material reserves[13] - Inventory rose by 37.9% to 1,634,891 thousand RMB, mainly due to an increase in unfinished labor projects[13] - Contract assets increased by 56.3% to 14,961,286 thousand RMB, attributed to an increase in completed but unsettled projects[13] - Construction in progress surged by 125.3% to 481,718 thousand RMB, mainly due to the purchase of drilling equipment in Saudi Arabia[13] Expenses - Financial expenses rose by 43.4% to 883,403 thousand RMB, primarily due to increased foreign exchange losses from RMB fluctuations[14] - Research and development expenses for Q3 2020 amounted to 184,074 thousand RMB, a decrease from 203,963 thousand RMB in Q3 2019[22] - The company's management expenses for the first three quarters of 2020 were CNY 15,814, a decrease from CNY 17,703 in the same period of 2019, representing a reduction of approximately 10.7%[25] Shareholder Information - The total number of shareholders reached 122,044, with the largest shareholder holding 56.51% of shares[8] - The company has not issued preferred shares, and there are no known related party relationships among major shareholders[11] Product and Market Development - The company has not disclosed any new product developments or market expansion strategies in this report[11] - The company did not apply the new revenue and leasing standards for the year 2020, as indicated in the financial report[29]