Financial Performance - Net profit attributable to shareholders increased by 524.6% to CNY 188,182 thousand from CNY 30,129 thousand in the same period last year[4] - Operating revenue rose by 31.1% to CNY 13,458,154 thousand compared to CNY 10,267,637 thousand in the previous year[4] - Basic and diluted earnings per share increased by 400.0% to CNY 0.01 from CNY 0.002 in the previous year[4] - Total operating revenue for Q1 2019 was 13,458,154 thousand RMB, an increase from 10,267,637 thousand RMB in Q1 2018, representing a growth of approximately 31.4%[21] - Net profit for Q1 2019 reached 188,182 thousand RMB, significantly higher than 30,129 thousand RMB in Q1 2018, marking an increase of approximately 524.5%[22] - The company reported a profit before tax of 268,862 thousand RMB for Q1 2019, compared to 49,284 thousand RMB in Q1 2018, representing a substantial increase of approximately 445%[21] Assets and Liabilities - Total assets increased by 3.8% to CNY 63,232,377 thousand compared to the end of the previous year[4] - Total liabilities increased to RMB 57,106,395 thousand from RMB 55,126,305 thousand year-over-year[17] - Current assets totaled RMB 34,073,830 thousand, an increase from RMB 32,013,819 thousand in 2018[16] - The total assets as of the end of Q1 2019 were 32,305,281 thousand RMB, slightly down from 32,307,571 thousand RMB at the end of the previous period[20] - Total liabilities for Q1 2019 were 26,574 thousand RMB, a decrease from 27,906 thousand RMB in the previous period[20] Cash Flow - Cash flow from operating activities improved, with a net cash flow of CNY -1,119,740 thousand, an improvement from CNY -1,864,850 thousand in the same period last year[4] - Operating cash inflow for Q1 2019 was CNY 13,213,466, an increase of 18.9% from CNY 11,108,088 in Q1 2018[25] - Cash flow from financing activities decreased by 51.1% to RMB 1,088,047 thousand from RMB 2,223,531 thousand, primarily due to reduced cash inflow from non-public share issuance[13] - Cash flow from investing activities showed a net outflow of -CNY 83,761, compared to -CNY 214,454 in Q1 2018[26] - Total cash and cash equivalents at the end of Q1 2019 were CNY 2,023,035, a decrease from CNY 2,698,249 at the end of Q1 2018[26] Shareholder Information - The total number of shareholders at the end of the reporting period was 127,476, with the largest shareholder being China Petroleum & Chemical Corporation holding 56.51%[7] - The company received government subsidies amounting to CNY 5,803 thousand related to normal business operations[5] Research and Development - R&D expenses increased by 36.0% to RMB 163,227 thousand from RMB 120,062 thousand, mainly due to higher investment in the industrialization of mature technologies[12] - Research and development expenses for Q1 2019 amounted to 163,227 thousand RMB, up from 120,062 thousand RMB in Q1 2018, which is an increase of about 36%[21] Financial Expenses - Financial expenses surged by 153.6% to RMB 282,661 thousand from RMB 111,444 thousand, attributed to increased interest expenses from larger loan scales[12] - Financial expenses in Q1 2019 were 282,661 thousand RMB, compared to 111,444 thousand RMB in Q1 2018, indicating a significant rise of approximately 153%[21] Inventory and Prepayments - The company’s inventory as of March 31, 2019, was RMB 1,570,266 thousand, compared to RMB 1,411,638 thousand in the previous year[16] - Prepayments increased by 93.2% to CNY 859,346 thousand primarily due to increased engineering material preparation[11] Other Financial Information - The company reported a net loss of RMB 25,241,179 thousand in Q1 2019, slightly improved from a loss of RMB 25,429,361 thousand in the same period last year[17] - The company reported a retained earnings deficit of -$25,429,361, indicating accumulated losses[31] - Long-term borrowings remained stable at $536,291[31] - The company has not applied new financial instrument standards or new lease standards for prior period adjustments[32] - No audit report was applicable for this quarter[32]

中国后化 lope 中国石化 SINOPEC 中石化石油工程技術服務股份有限公司 Sinopec Oilfield Service Corporation （股票代號 A 股：600871； H 股：1033) 2018 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、誤導性陳述或者重大遺漏，並承擔個別和連帶的法律責任。 二、 2018年年度報告已經本公司第九屆董事會第十一次會議審議通過。本公司共有9位董事出席了本次 董事會會議，董事樊中海先生因公請假，委託董事孫清德先生出席會議並行使權利。 三、 本公司按中國企業會計準則及《國際財務報告準則》編製的2018年年度財務報告已分別經致同會計 師事務所（特殊普通合夥）和致同（香港）會計師事務所有限公司進行審計並出具標準無保留意見 的審計報告。 四、 本公司董事長劉中雲先生，副董事長、總經理孫清德先生，總會計師李天先生及財務資產部經理裴 德芳先生聲明：保證年度報告中的財務報告真實、準確、完整。 五、 經董事會審議的報告期利潤分配預案或公積金轉增股本預案： 2018年度，經致同會計師事 ...

Financial Performance - The net profit attributable to shareholders for 2018 was RMB 142,056 thousand according to Chinese accounting standards, and RMB 240,188 thousand according to IFRS[5] - The company reported a negative retained earnings of RMB -1,466,064 thousand at the end of 2018, leading to a recommendation of no cash dividend distribution for the year[5] - The company's operating revenue for 2018 was RMB 58,409,078 thousand, representing a 20.2% increase compared to RMB 48,593,948 thousand in 2017[22] - The net profit attributable to shareholders for 2018 was RMB 142,056 thousand, a significant recovery from a loss of RMB 10,589,524 thousand in 2017[22] - The basic earnings per share for 2018 was RMB 0.008, compared to a loss of RMB 0.749 per share in 2017[23] - The weighted average return on equity for 2018 was 2.86%, a significant improvement from -335.35% in 2017[23] - The company reported a net loss of RMB 297,918 thousand in the fourth quarter of 2018, despite positive net profits in the earlier quarters[25] - The company reported a total of RMB 472,569 thousand in government subsidies recognized in 2018, an increase from RMB 150,674 thousand in 2017[26] - The company achieved a net cash flow from financing activities of RMB 3,618,785 thousand, a significant increase of 383.8% compared to RMB 748,034 thousand in 2017[63] - The company’s total liabilities decreased by 8.4% to RMB 60,000,000 thousand, with a significant reduction in contract liabilities by 48.7%[78] Assets and Liabilities - The total assets at the end of 2018 were RMB 60,904,715 thousand, showing a decrease of 1.9% from RMB 62,089,315 thousand at the end of 2017[22] - The company's total liabilities were RMB 55.13 billion, with a debt-to-asset ratio of 90.5%, down 12.9 percentage points from the previous year[36] - The total assets as of December 31, 2018, were RMB 60,904,715 thousand, a decrease of 1.9% from RMB 62,089,315 thousand in 2017[112] - Total liabilities decreased by 14.1% to RMB 55,126,305 thousand from RMB 64,190,633 thousand in 2017[112] - The company's equity attributable to shareholders increased to RMB 5,778,410 thousand, up from a negative RMB 2,099,946 thousand in 2017[116] - The company's asset-liability ratio improved to 90.5% from 103.4% in 2017[117] Business Operations - The company completed the acquisition of 100% equity of Jiangsu Oilfield Construction Company in December 2018, classified as a business combination under common control[23] - The company signed new contracts worth RMB 627.7 billion in 2018, a year-on-year increase of 18.0%[42] - The company completed contracts worth RMB 584.2 billion, reflecting a 29.2% increase year-on-year[42] - The company reduced costs by RMB 3.2 billion in 2018, improving project gross profit margins by 7.3%[43] - The company expanded its international presence, signing contracts worth USD 2.7 billion with Saudi Aramco and USD 10.6 billion with Kuwait Oil Company[42] - The company operates in over 37 countries and regions, executing 370 projects, enhancing its global market footprint[33] Research and Development - The company’s R&D expenditure increased by 79.4% to RMB 928,586 thousand from RMB 517,599 thousand in the previous year[63] - Research and development expenses totaled RMB 947,691 thousand, an increase of 83.1% compared to the previous year, with R&D expenses accounting for 1.6% of total revenue[74] - The number of R&D personnel increased to 3,002, representing 4.0% of the total workforce[74] Environmental and Safety Management - The company implemented clean production initiatives, focusing on energy conservation and pollution reduction through advanced technologies[171] - The company established an environmental emergency management system and conducted regular training and drills for emergency response[172] - The company has implemented a strict HSE management system to mitigate environmental and safety risks associated with its operations[108] Corporate Governance - The financial report for 2018 has been audited and received standard unqualified opinions from the auditing firms[5] - The company confirmed that there were no non-operating fund occupations by controlling shareholders or other related parties during the reporting period[138] - The company has a cash dividend policy that mandates a minimum of 40% of the net profit attributable to shareholders of the parent company for the year, but no cash dividends were declared for 2018 due to negative retained earnings[135] - The company will strictly adhere to its dividend policy and will seek to distribute dividends once it has the capacity to do so[135] - The supervisory board approved the 2017 financial report, which reflects the company's financial status and operational results[176] - The company reported no violations of laws or regulations by its directors and senior management during the reporting period[180] Related Party Transactions - The company engaged in significant related party transactions, including purchasing raw materials and equipment from Sinopec Group totaling RMB 8,097.321 million, which accounted for 52.9% of similar transactions[155] - The company provided engineering services to Sinopec Group amounting to RMB 36,501.508 million, representing 62.0% of similar transactions[155] - The total value of related party transactions did not exceed the annual limits set by independent shareholders, ensuring compliance with regulations[156] - The company’s independent non-executive directors have reviewed and approved the ongoing related party transactions, confirming their fairness and alignment with shareholder interests[156] Future Outlook - The company plans to focus on future strategies and development plans, although these contain uncertainties and do not constitute a commitment to investors[5] - The company plans to sign new contracts worth RMB 61.7 billion in 2019, with RMB 34.9 billion from internal markets and RMB 15 billion from overseas markets[93] - The company aims to enhance its market share and improve labor productivity while reducing operating costs per hundred yuan of revenue[46] - The company plans to reduce costs by RMB 600 million in 2019[102] - The capital expenditure for 2019 is planned at RMB 2.5 billion, primarily for equipment upgrades and safety projects[103]

Financial Performance - Operating revenue for the first nine months reached CNY 37,181,137, representing a year-on-year increase of 23.8%[7] - Net profit attributable to shareholders of the listed company was CNY 439,974, a significant recovery from a loss of CNY 3,306,005 in the same period last year[7] - Basic and diluted earnings per share were CNY 0.024, compared to a loss of CNY 0.234 per share in the previous year[8] - The weighted average return on net assets increased by 57.7 percentage points to 8.97%[7] - Total operating revenue for Q3 2018 reached ¥13,528,135 thousand, a 32.5% increase from ¥10,184,646 thousand in Q3 2017[21] - Net profit for Q3 2018 was ¥39,025 thousand, compared to a net loss of ¥1,020,649 thousand in Q3 2017, marking a significant turnaround[22] - The company reported a total profit of ¥119,046 thousand in Q3 2018, a significant improvement from a loss of ¥955,304 thousand in Q3 2017[22] - The total comprehensive income for Q3 2018 was ¥39,025 thousand, compared to a comprehensive loss of ¥1,020,649 thousand in Q3 2017, indicating a strong recovery[22] - Earnings per share for Q3 2018 were ¥0.002, recovering from a loss of ¥0.072 per share in Q3 2017[22] Cash Flow - The company reported a net cash flow from operating activities of CNY -3,043,798 for the first nine months, worsening from CNY -2,376,958 in the same period last year[7] - Cash inflow from operating activities totaled CNY 45,518,795, an increase of 42% compared to CNY 32,088,732 in the previous year[27] - Net cash flow from investing activities was negative at CNY -398,073, improving from CNY -536,805 year-over-year[27] - Cash inflow from financing activities was CNY 32,608,640, slightly down from CNY 33,037,761 in the previous year[28] - Net cash flow from financing activities increased to CNY 2,816,237, up from CNY 2,555,684 year-over-year[28] - The company reported a cash outflow of CNY 1,120,283 related to financing activities, with no outflow in the previous year[30] - The impact of exchange rate changes on cash and cash equivalents was CNY 241,727, compared to CNY -69,088 in the previous year[28] Assets and Liabilities - Total assets at the end of the reporting period were CNY 60,720,791, a decrease of 2.0% compared to the end of the previous year[7] - Total liabilities decreased from RMB 64,046,629 thousand to RMB 54,512,091 thousand, indicating a reduction in financial obligations[16] - Owner's equity attributable to the parent company increased to RMB 6,208,700 thousand from a deficit of RMB 2,102,628 thousand, driven by profit generation and capital increase[16] - The total liabilities as of the end of Q3 2018 amounted to ¥33,791 thousand, with total equity at ¥32,286,043 thousand, indicating a strong equity position[19] Shareholder Information - The total number of shareholders at the end of the reporting period was 140,459, with 340 being H-share shareholders[9] - The largest shareholder, China Petroleum & Chemical Corporation, held 56.51% of the shares, amounting to 10,727,896,364 shares[10] - The company has not issued preferred shares, and there are no known relationships among the major shareholders[11] Operational Metrics - Prepayments increased by 69.8% to RMB 721,402 thousand due to increased engineering construction materials[12] - Inventory rose by 81.4% to RMB 2,439,254 thousand, primarily due to new projects started in 2018[12] - Contract assets increased by 55.6% to RMB 10,052,114 thousand, attributed to the settlement progress of new projects[12] Research and Development - Research and development expenses surged by 123.5% to RMB 268,744 thousand, reflecting increased investment in research projects[13] - Research and development expenses decreased to ¥28,548 thousand in Q3 2018 from ¥69,132 thousand in Q3 2017, a reduction of 58.7%[21] Other Income and Expenses - The company received government subsidies amounting to CNY 392,240 during the reporting period, which are closely related to its normal business operations[9] - Other income rose significantly by 261.8% to RMB 528,570 thousand, primarily from government subsidies for employee relocation[13] - Financial expenses decreased by 48.4% to RMB 223,609 thousand, mainly due to an increase in net foreign exchange gains[13] - The company’s financial expenses decreased significantly to ¥59,985 thousand in Q3 2018 from ¥185,278 thousand in Q3 2017, a reduction of 67.7%[21]

Financial Performance - The company reported a half-year financial report for 2018, which was approved by the board of directors[4]. - The company's operating revenue for the current reporting period reached RMB 23,653,002 thousand, representing a 19.2% increase compared to RMB 19,842,318 thousand in the same period last year[23]. - The net profit attributable to shareholders of the listed company was RMB 400,949 thousand, a significant recovery from a loss of RMB 2,285,324 thousand in the previous year[23]. - The weighted average return on equity increased to 8.99%, up 40.29 percentage points from -31.30% in the same period last year[24]. - The company's gross profit margin for its main business was 5.9% in the first half of 2018, reflecting improved operational efficiency[40]. - The company's total comprehensive income for the current period was RMB 400,949 thousand, recovering from a loss of RMB 2,285,356 thousand in the previous period[175]. - Basic and diluted earnings per share improved to RMB 0.02, compared to a loss of RMB -0.16 in the previous period[175]. Cash Flow and Assets - The company reported a net cash flow from operating activities of RMB -3,515,042 thousand, worsening from RMB -1,988,314 thousand in the previous year[27]. - The company's cash and cash equivalents decreased to RMB 2,223,739 thousand from RMB 2,537,894 thousand, a decline of about 12.38%[166]. - The company reported a net increase in cash and cash equivalents of RMB 2,212,205 thousand at the end of the first half of 2018, compared to RMB 2,014,515 thousand at the end of the previous year[93]. - The net cash flow from financing activities was RMB 6,518,982 thousand, an increase from RMB 3,038 thousand in the previous period[187]. - The total assets at the end of the reporting period were RMB 60,153,882 thousand, a decrease of 2.9% from RMB 61,942,629 thousand at the end of the previous year[27]. - The company's total liabilities decreased to RMB 54,004,436 thousand from RMB 64,046,629 thousand, representing a reduction of approximately 15.66%[169]. Business Operations - The company operates in over 20 provinces and 34 countries, executing 319 projects, indicating a strong international presence[30]. - The company has five major business segments, covering the entire oil and gas service industry chain from exploration to production[30]. - The company signed new contracts worth RMB 351 billion in the first half of 2018, a year-on-year increase of 58%[42]. - The company's international business revenue was RMB 6,138,476 thousand, accounting for 26.0% of total revenue, with new contracts signed worth USD 1.76 billion, a 134.7% increase year-on-year[49]. - The company completed 12,843 kilometers of 2D seismic work, an increase of 89.8% year-on-year, and 7,269 square kilometers of 3D seismic work, an increase of 9.7%[43]. Research and Development - The company applied for 262 new patents and received 151 patent authorizations in the first half of 2018, enhancing its R&D capabilities[50]. - Research and development expenses surged to RMB 240,196 thousand, marking a 369.7% increase year-on-year due to intensified technology project deployment[54]. - The company has made significant advancements in technology, including the successful completion of the national 863 project on natural gas hydrate drilling technology, which is now at an international leading level[51]. Shareholder Information - The total number of shareholders was 144,151, with 143,809 domestic A-share shareholders and 342 overseas H-share shareholders[144]. - China Petroleum Group Company holds 10,727,896,364 shares, accounting for 56.51% of total shares[145]. - The total number of shares held by the top ten unrestricted shareholders is 9,224,327,662 for A shares and 2,806,150,991 for H shares[146]. - The company did not purchase, sell, or repurchase any of its listed shares during the reporting period[152]. Corporate Governance and Compliance - The company has maintained compliance with commitments regarding related party transactions and independence from its controlling shareholder[109]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[108]. - The company has not changed its accounting firm during the reporting period, continuing with the same auditors for 2018[106]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations[135]. Environmental and Social Responsibility - The company disposed of 21.1 million tons of solid waste and 15,000 tons of oil-based cuttings in compliance with regulations during the first half of 2018[132]. - The company has implemented advanced technologies to reduce energy consumption and pollutant emissions, including the use of electric drilling rigs and biodegradable drilling mud[132]. - The company established an environmental emergency management system and conducted regular training and drills[133].

Financial Performance - Operating revenue increased by 16.5% year-on-year, reaching RMB 10,267,637,000[7] - Net profit attributable to shareholders was a loss of RMB 334,673,000, an improvement from a loss of RMB 1,357,638,000 in the same period last year[7] - The weighted average return on net assets improved by 18.31 percentage points, reaching 1.00%[7] - Basic and diluted earnings per share were both RMB 0.002, compared to RMB -0.095 in the same period last year[7] - Net profit for Q1 2018 was CNY 30,129 thousand, a significant recovery from a net loss of CNY 1,345,366 thousand in Q1 2017[26] - The company reported a basic and diluted earnings per share of CNY 0.002 for Q1 2018, compared to a loss per share of CNY 0.095 in the same quarter last year[26] Assets and Liabilities - Total assets decreased by 3.8% from the end of the previous year, amounting to RMB 59,605,141,000[7] - Total assets decreased to RMB 59,605,141,000 from RMB 61,942,629,000[21] - Total liabilities decreased to RMB 53,946,124,000 from RMB 64,046,629,000[21] - The company's total assets as of March 31, 2018, amounted to CNY 33,329,939 thousand, compared to CNY 25,765,258 thousand at the beginning of the year, reflecting a growth of 29.2%[23] - The company’s total liabilities remained stable at CNY 1,153,584 thousand, showing a slight increase from CNY 1,153,394 thousand at the beginning of the year[23] Cash Flow - The company reported a net cash flow from operating activities of RMB -1,864,850,000, compared to RMB -1,312,169,000 in the previous year[7] - Operating cash inflow totaled CNY 11,108,088 thousand, slightly up from CNY 11,059,806 thousand in the previous period[31] - Net cash flow from operating activities was negative at CNY -1,864,850 thousand, compared to CNY -1,312,169 thousand last period[31] - Cash inflow from financing activities reached CNY 17,439,451 thousand, down from CNY 19,002,457 thousand in the previous period[31] - Net cash flow from financing activities increased to CNY 2,223,531 thousand from CNY 1,539,072 thousand[31] - Cash outflow for operating activities was CNY 12,972,938 thousand, compared to CNY 12,371,975 thousand last period[31] - Cash outflow for investment activities was CNY 217,096 thousand, significantly higher than CNY 100,247 thousand in the previous period[31] Shareholder Information - The number of shareholders totaled 159,265, with the top ten shareholders holding a combined 99.13% of shares[10] - China Petroleum & Chemical Corporation held 56.51% of shares, amounting to 10,727,896,364 shares[10] - The company has not issued preferred shares, and there are no known related party relationships among the top shareholders[12] Other Financial Metrics - Accounts receivable decreased by 44.0% to RMB 676,535,000 due to the collection of overdue payments[15] - Prepayments increased by 34.0% to RMB 569,025,000 primarily due to increased engineering material preparations[15] - Long-term receivables decreased by 62.4% to RMB 87,550,000 as a result of reclassification to current assets[15] - Employee compensation payable increased by 57.3% to RMB 599,585,000 mainly due to increased social security and labor costs[15] - Other income surged by 2,797.7% to RMB 362,475,000 primarily from government subsidies for employee relocation[15] - Total operating costs for Q1 2018 were CNY 10,694,093 thousand, up 5.8% from CNY 10,104,967 thousand year-over-year[25] - The company’s management expenses rose to CNY 766,771 thousand, up 11% from CNY 690,828 thousand in the previous year[26] - The impact of exchange rate changes on cash and cash equivalents was CNY 30,666 thousand, compared to CNY -2,200 thousand last period[31]

Financial Performance - The net profit attributable to shareholders for 2017 was RMB -10,582,541 thousand according to Chinese accounting standards, and RMB -10,556,132 thousand according to International Financial Reporting Standards[3]. - The company's undistributed profits at the end of 2017 were RMB -1,496,150 thousand, leading to a recommendation of no cash dividend distribution for the year[3]. - The company has experienced net losses for two consecutive years (2016 and 2017), resulting in a risk warning for delisting of A-shares if losses continue in 2018[6]. - The company's operating revenue for 2017 was RMB 48,485,788 thousand, an increase of 13.0% compared to RMB 42,923,500 thousand in 2016[22]. - The net loss attributable to shareholders for 2017 was RMB -10,582,541 thousand, an improvement from RMB -16,114,763 thousand in 2016[22]. - The net cash flow from operating activities for 2017 was RMB 419,456 thousand, a significant recovery from RMB -3,907,318 thousand in 2016[22]. - The total assets at the end of 2017 were RMB 61,942,629 thousand, a decrease of 16.8% from RMB 74,493,166 thousand at the end of 2016[22]. - The basic earnings per share for 2017 was RMB -0.748, an improvement from RMB -1.139 in 2016[23]. - The weighted average return on equity for 2017 was -335.78%, a decrease of 238.59 percentage points from -97.19% in 2016[24]. - The company reported a total of RMB -183,245 thousand in non-recurring gains and losses for 2017, compared to RMB 59,108 thousand in 2016[27]. Operational Highlights - The company secured new contracts worth RMB 30.3 billion, representing a year-on-year growth of 27.8%[42]. - The company signed new contracts worth RMB 10.6 billion in the domestic market, a year-on-year increase of 70.9%[43]. - In the overseas market, the company signed new contracts worth USD 1.90 billion, completing contracts worth USD 2.02 billion[43]. - The company completed a total of 736,000 meters of drilling in 2017, an increase of 33.6% year-on-year[53]. - The company’s seismic service revenue reached RMB 3.98 billion, a 10.4% increase from the previous year[52]. - The engineering construction service business achieved a revenue of RMB 11,740,711 thousand in 2017, a decrease of 8.5% compared to RMB 12,827,062 thousand in the previous year[57]. - The international business generated a revenue of RMB 12,936,519 thousand, an increase of 1.8% from RMB 12,702,961 thousand, accounting for 26.7% of total revenue, down 2.9 percentage points year-on-year[58]. Future Plans and Strategies - The company plans to implement a series of measures including deepening internal reforms, expanding market reach, and strict cost control to achieve profitability[6]. - The company plans to sign new contracts worth RMB 57.8 billion in 2018, focusing on market expansion and efficiency improvement[46]. - The company aims to optimize its structure and enhance its core competitiveness through technological innovation and service quality improvement[46]. - The company aims to achieve a cost reduction of RMB 3.1 billion in 2018 through comprehensive cost management strategies[103]. - The company expects the oilfield service industry to experience a recovery in 2018, driven by a stable increase in international oil prices and rising demand for natural gas[92]. - The company plans to allocate capital expenditures of RMB 1.5 billion in 2018, focusing on market expansion, emerging business development, equipment upgrades, safety improvements, and ERP system construction[104]. Risk Factors - The company emphasizes the uncertainty of future plans and development strategies, advising investors to be aware of investment risks[3]. - The company faces various risks including international oil price fluctuations, market competition, environmental damage, and foreign exchange risks[106][107][110][116]. Corporate Governance - The board of directors has proposed that the profit distribution plan be submitted for shareholder meeting approval due to negative undistributed profits[3]. - The company has undergone audits by accounting firms, receiving standard unqualified audit reports for its financial statements[2]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[4]. - There are no violations of decision-making procedures regarding external guarantees[5]. - The company has committed to avoiding competition with its controlling shareholder, China Petroleum & Chemical Corporation, ensuring that it will not engage in competing activities[137]. - The company has established an internal control system that is effectively implemented, with no significant deficiencies found[178]. Shareholder Information - As of December 31, 2017, the total number of shareholders was 163,687, with 163,338 being domestic A-share shareholders and 339 being overseas H-share shareholders[183]. - China Petroleum & Chemical Corporation (Sinopec Group) holds 9,224,327,662 shares, representing 65.22% of the total shares[184]. - After the private placement, Sinopec Group directly and indirectly holds 13,323,683,351 shares, accounting for 70.18% of the total shares[189]. Research and Development - The company applied for 494 domestic and international patents and received 322 patent authorizations in 2017, with significant advancements in shale gas exploration technology[60]. - The company’s R&D expenditure rose by 42.8% to RMB 517,599 thousand, reflecting a commitment to innovation[63]. - The company is committed to investing in research and development to drive innovation and maintain competitive advantage[200].

Financial Performance - Operating revenue for the first nine months reached CNY 30,026,964, an increase of 8.1% year-on-year [7]. - Net profit attributable to shareholders of the listed company for the first nine months was CNY -3,340,431, showing a significant improvement from CNY -8,987,975 in the same period last year [7]. - Basic and diluted earnings per share were both CNY -0.234, reflecting the company's ongoing challenges [8]. - Total operating revenue for Q3 2017 reached CNY 10,184,646 thousand, an increase of 12.0% compared to CNY 9,091,758 thousand in Q3 2016 [23]. - Net loss for Q3 2017 was CNY 1,020,649 thousand, improving from a net loss of CNY 4,348,488 thousand in Q3 2016 [24]. - Earnings per share for Q3 2017 was CNY -0.072, compared to CNY -0.306 in Q3 2016 [24]. - The company reported a total comprehensive loss of CNY 1,020,649 thousand for Q3 2017, compared to a total comprehensive loss of CNY 4,348,488 thousand in Q3 2016 [24]. Cash Flow - The company reported a net cash flow from operating activities of CNY -2,376,958 for the first nine months, compared to CNY -4,628,084 in the previous year, indicating a reduced cash outflow [7]. - Cash inflow from financing activities totaled CNY 33,037,761, a decrease of 20.5% compared to CNY 41,540,077 in the prior year [29]. - Net cash flow from financing activities was CNY 2,555,684, down 50.1% from CNY 5,098,859 year-over-year [29]. - Total cash outflow from operating activities was CNY 34,465,690, down 13.9% from CNY 40,063,064 year-over-year [29]. - Investment activities generated a net cash outflow of CNY -536,805, worsening from CNY -397,028 in the previous year [29]. - Cash and cash equivalents at the end of the period stood at CNY 2,019,756, a decrease from CNY 2,135,297 in the previous year [30]. - The impact of exchange rate changes on cash and cash equivalents was negative at CNY -69,088, contrasting with a positive impact of CNY 49,960 in the previous year [30]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 67,912,124, a decrease of 8.8% compared to the end of the previous year [7]. - The company's equity attributable to shareholders decreased by 36.9% to RMB 5,327,499 thousand due to operating losses from January to September 2017 [14]. - Total assets decreased to RMB 67,912,124 thousand from RMB 74,493,166 thousand, reflecting a decline in both current and non-current assets [18]. - Short-term borrowings increased to RMB 19,688,754 thousand from RMB 17,033,731 thousand, indicating a rise in financing needs [18]. - Total liabilities as of the end of Q3 2017 were CNY 1,131,682 thousand, compared to CNY 1,119,991 thousand at the end of Q2 2017 [21]. Shareholder Information - The total number of shareholders at the end of the reporting period was 169,418, with 352 H-share shareholders [10]. - The largest shareholder, China Petroleum & Chemical Corporation, held 65.22% of the shares, totaling 9,224,327,662 shares [10]. Operational Metrics - Accounts receivable decreased by 32.5% to RMB 16,145,605 thousand due to accelerated collection efforts [13]. - Inventory increased by 42.0% to RMB 13,230,693 thousand primarily due to increased project volume and delayed project settlements [13]. - Other current assets rose by 87.9% to RMB 782,988 thousand mainly due to an increase in VAT receivables [13]. - The company incurred financial expenses of CNY 185,278 thousand in Q3 2017, an increase from CNY 125,237 thousand in Q3 2016 [24]. Government Support - The company received government subsidies amounting to CNY 13,268 during the reporting period, contributing to its financial performance [9].

Financial Performance - The company reported a significant increase in revenue for the first half of 2017, with total revenue reaching RMB 10.5 billion, representing a year-on-year growth of 15%[15]. - The net profit attributable to shareholders for the first half of 2017 was RMB 1.2 billion, an increase of 20% compared to the same period last year[15]. - The company's operating revenue for the reporting period was RMB 19,842,318 thousand, an increase of 6.2% compared to RMB 18,689,863 thousand in the same period last year[22]. - The company's consolidated operating revenue for the first half of 2017 was RMB 19,842,318 thousand, an increase of 6.2% year-on-year[42]. - The net loss attributable to shareholders for the first half of 2017 was RMB 2,285,324 thousand, with a basic loss per share of RMB 0.162[42]. - The company's total operating revenue for the first half of 2017 was RMB 19,628,693,000, with a slight decrease of 0.3% compared to the previous year[70]. - The company reported a total operating loss of RMB 2,229,631,000 for its petroleum engineering services[70]. - The company's net loss attributable to shareholders for the first half of 2017 was RMB 2,132,148 thousand[96]. - The company reported a significant decrease in accounts receivable by RMB 7,302,403 thousand, attributed to enhanced collection efforts[61]. - The company's financial expenses rose by 18.0% to RMB 247,983 thousand, primarily due to increased borrowing costs[57]. User and Market Expansion - The company has expanded its user base, with a reported increase of 25% in active users for its services, totaling 1.5 million users[15]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2018[15]. - The company is focusing on expanding its market presence in Africa, the Middle East, and South America[73]. - The company aims to become a world-class integrated oil service company, focusing on five strategic areas: specialization, marketization, differentiation, high-end services, and internationalization[31]. Research and Development - New product development initiatives have been launched, focusing on advanced drilling technologies, with an investment of RMB 500 million allocated for R&D in 2017[15]. - The company applied for 216 new patents and received 149 patent authorizations in the first half of 2017[52]. - The company has made progress in technology development, including the industrial application of controllable seismic sources and advancements in shallow sea seismic technology[53]. - The company has developed leading shale gas engineering support technologies, achieving key core technology localization[30]. Financial Position and Assets - The total assets at the end of the reporting period were RMB 68,478,917 thousand, down 8.1% from RMB 74,493,166 thousand at the end of the previous year[22]. - The company's net assets attributable to shareholders decreased by 25.1% to RMB 6,319,768 thousand from RMB 8,442,868 thousand at the end of the previous year[22]. - The company's total assets amounted to RMB 68,478,917 thousand, a decrease of 8.1% compared to the end of the previous year[33]. - The company's current assets totaled RMB 37,411,754 thousand, a decrease from RMB 41,130,578 thousand, indicating a decline of about 9.0%[151]. - The company's cash and cash equivalents were RMB 2,018,026 thousand, down from RMB 2,449,935 thousand, representing a decrease of approximately 17.6%[151]. Cost Management and Efficiency - The company has implemented cost-cutting measures, aiming to reduce operational expenses by 5% in 2017[15]. - Operating costs decreased by 5.7% to RMB 19,868,364 thousand from RMB 21,069,363 thousand year-on-year[57]. - The company achieved a reduction in costs amounting to RMB 750 million through various measures, including lowering procurement and operational costs[54]. - The average utilization rate of drilling teams increased by 24.9% year-on-year, reflecting improved operational efficiency[46]. Strategic Initiatives - A strategic acquisition of a local service provider is in progress, expected to enhance operational capabilities and increase market penetration[15]. - The company plans to sign new contracts worth RMB 6.2 billion and complete contract amounts of RMB 9.3 billion in the second half of 2017[78]. - The company plans to complete 19,300 kilometers of 2D seismic acquisition and 9,400 square kilometers of 3D seismic acquisition in the second half of 2017[73]. Risk Management - The company emphasizes the importance of risk management in its future strategies, particularly in response to market volatility[15]. - The company faces risks from low international oil prices, which could impact market expansion and project operations[85]. - The competitive landscape in the oilfield service market is intensifying, with significant competition from both domestic and international companies[86]. - The company is exposed to various risks, including environmental damage, safety hazards, and geopolitical instability in overseas operations[88]. Corporate Governance - The company maintained compliance with corporate governance regulations, ensuring clear responsibilities among the shareholders' meeting, board of directors, and management[125]. - The company appointed Deloitte Touche Tohmatsu Certified Public Accountants LLP and its Hong Kong affiliate as auditors for the 2017 fiscal year, with no changes in auditors during the reporting period[109]. - The company has not established a nomination committee as per the corporate governance code, but has clear provisions in its articles of association regarding director nominations[127]. Shareholder Information - The company has a total of 171,539 shareholders as of June 30, 2017, with 171,180 being domestic A-share shareholders and 359 being overseas H-share shareholders[132]. - The largest shareholder, Sinopec Group, holds 9,224,327,662 shares, representing 65.22% of the total shares[133]. - The second-largest shareholder, CITIC Limited, holds 1,035,000,000 shares, accounting for 7.32% of the total shares[136].

2017 年第一季度报告 二、 公司基本情况 2.1 主要财务数据 单位：千元 币种：人民币 | | 本报告期末 | 上年度末 | 本报告期末比上年度末增 | | | --- | --- | --- | --- | --- | | | | | 减(%) | | | 总资产 | 70,817,659 | 74,493,166 | | -4.9 | | 归属于上市公司 | 7,175,940 | 8,442,868 | | -15.0 | | 股东的净资产 | | | | | | | 年初至报告期末 | 上年初至上年报告期末 | 比上年同期增减(%) | | | 经营活动产生的 | -1,312,169 | -1,953,173 | | 不适用 | | 现金流量净额 | | | | | | | 年初至报告期末 | 上年初至上年报告期末 | 比上年同期增减（%） | | | 营业收入 | 8,815,250 | 8,510,893 | | 3.6 | | 归属于上市公司 | -1,345,366 | -1,685,210 | | 不适用 | | 股东的净利润 | | | | | | 归属于上市公司 | -1,357 ...