Financial Performance - The net profit attributable to shareholders for 2016 was RMB -16,114.763 million according to Chinese accounting standards, and RMB -16,198.242 million according to IFRS[4]. - The company's undistributed profits at the end of 2016 were RMB -1,439.418 million, leading to a recommendation of no cash dividend distribution for the year[4]. - The company's operating revenue for 2016 was RMB 42,923,500, a decrease of 28.9% compared to RMB 60,349,334 in 2015[22]. - The net loss attributable to shareholders for 2016 was RMB 16,114,763, representing a significant decline of 65,933.7% from a profit of RMB 24,478 in 2015[22]. - The total assets at the end of 2016 were RMB 74,493,166, down 12.7% from RMB 85,307,777 in 2015[22]. - The net cash flow from operating activities for 2016 was RMB -3,907,318, a decrease of 251.7% compared to RMB 2,575,929 in 2015[22]. - The basic and diluted earnings per share for 2016 were both RMB -1.139, compared to RMB 0.002 in 2015[24]. - The weighted average return on equity for 2016 was -97.19%, a decrease of 97.29 percentage points from 0.10% in 2015[24]. - The company reported a net loss of RMB 15,887,181 before tax for 2016, compared to a profit of RMB 469,719 in 2015[30]. - The total liabilities at the end of 2016 were RMB 66,051,574, an increase from RMB 60,670,824 in 2015[30]. - The net asset attributable to shareholders at the end of 2016 was RMB 8,442,868, down 65.7% from RMB 24,638,094 in 2015[22]. - The asset-liability ratio increased to 88.7%, up 17.6 percentage points from the previous year[37]. - The company reported a net loss attributable to shareholders of RMB 16,114,763 thousand for 2016, which impacted the dividend distribution[133]. Market Environment and Outlook - The company anticipates a gradual improvement in the oil service industry environment in 2017 due to the recovery of international oil prices, although uncertainties remain due to slow global economic recovery and domestic energy consumption growth[7]. - The company plans to leverage the recovery of international oil prices and increased capital expenditures from major clients to improve its operating environment in 2017[46]. - The company anticipates a complex and severe operating environment for the oil service industry in 2017, despite potential increases in upstream exploration and development capital expenditures[93]. Operational Efficiency and Cost Management - The company completed cost-saving measures amounting to RMB 1.33 billion throughout the year, enhancing resource allocation efficiency[46]. - The company reduced its professional teams by 135, a 6.4% decrease from the previous year, as part of its efforts to optimize resources and improve asset structure[37]. - The company reduced its workforce by 17,600, achieving a cost reduction of RMB 1.33 billion[60]. - The company is focusing on enhancing project management and optimizing market and business layout to improve operational efficiency[101]. - The company aims to optimize its drilling team structure and equipment layout to improve operational efficiency and reduce costs[96]. Research and Development - The company applied for 465 domestic and international patents in 2016, with 379 patents granted, marking significant progress in key technology breakthroughs[59]. - Research and development expenses were RMB 362.6 million, down 19.1% from RMB 448.2 million in 2015[62]. - The company is committed to technology development, particularly in shale gas and deep well drilling technologies, to foster new growth points[102]. Revenue Breakdown - The company's international business revenue was RMB 12,702.9 million, a decrease of 8.5% year-on-year, accounting for 29.6% of total revenue, an increase of 6.6 percentage points[58]. - The revenue from the mainland China market was RMB 29,581.8 million, reflecting a decrease of 35.2% year-on-year[65]. - The company's geophysical service revenue was RMB 3,605.9 million, down 31.8% year-on-year, with a 67.6% decrease in 2D seismic completion[52]. - The engineering construction service revenue was RMB 12,827.1 million, a decrease of 16.6% year-on-year, with total contract value completed at RMB 12.12 billion, down 17.0%[57]. Shareholder and Corporate Governance - The company has committed to avoiding competition with its parent company, ensuring that subsidiaries will not engage in competing activities[135]. - The company has established a plan for equity incentives, which was approved by the board and shareholders in 2016[134]. - The company’s stock incentive plan was verified, ensuring all participants met legal and regulatory qualifications[178]. - The company has not reported any significant accounting errors or changes that would impact its financial statements[138]. - The company maintained a robust internal control system, with no significant deficiencies reported[179]. Related Party Transactions - The company engaged in related party transactions, with procurement of raw materials and equipment amounting to RMB 5,215 million, representing 22.9% of similar transactions[153]. - The company provided engineering services to China Petroleum & Chemical Corporation and its subsidiaries, totaling RMB 22,567 million, which is 52.6% of similar transactions[153]. - The company has not engaged in any entrusted financial management or investment activities during the reporting period[162]. Environmental and Social Responsibility - The company contributed RMB 200,000 in funds and RMB 300,000 in material donations for poverty alleviation efforts in Sichuan Province[164]. - The company was not listed among the severely polluting enterprises by environmental protection authorities in 2016[166].

Financial Performance - Net profit attributable to shareholders was CNY -8,987,975,000, a significant decline from CNY -2,102,370,000 in the same period last year[4] - Operating revenue fell by 24.1% to CNY 27,781,621,000 from CNY 36,580,781,000 year-on-year[4] - The company's operating profit for the nine months ended September 30, 2016, was -8,823,734 thousand RMB, a decrease of 343.7% compared to -1,988,596 thousand RMB in the same period of 2015, primarily due to significant operating losses[9] - The total profit for the first nine months was -8,674,682 thousand RMB, a significant increase in loss compared to -1,808,701 thousand RMB in the previous year[26] - Net profit for Q3 was -4,348,488 thousand RMB, compared to a net loss of -679,712 thousand RMB in the same period last year[26] - Operating profit for Q3 was -4,384,312 thousand RMB, compared to -638,714 thousand RMB in the same period last year[26] - Basic and diluted earnings per share were both CNY -0.626, indicating a significant loss compared to CNY -0.149 in the previous year[5] - Basic and diluted earnings per share for Q3 were both -0.306 RMB, compared to -0.048 RMB in the same period last year[26] Assets and Liabilities - Total assets decreased by 12.9% to CNY 74,342,384,000 compared to the end of the previous year[4] - Total assets decreased from 85,307,777 thousand RMB to 74,342,384 thousand RMB, a decline of approximately 12.3%[21] - The total owner's equity decreased from 24,638,094 thousand RMB to 15,871,734 thousand RMB, a decline of about 35.5%[20] - The company's total liabilities included accounts payable of 1,686,181 thousand RMB, up 31.3% from 1,284,745 thousand RMB, indicating increased use of notes payable[9] - The total liabilities decreased from 60,670,824 thousand RMB to 58,471,790 thousand RMB, a reduction of about 3.6%[20] - Current liabilities decreased from 59,903,473 thousand RMB to 57,612,742 thousand RMB, a reduction of about 3.8%[20] - Non-current assets decreased from 35,796,735 thousand RMB to 33,199,542 thousand RMB, a decline of about 7.3%[19] Cash Flow - The company reported a net cash flow from operating activities of CNY -4,628,084,000, compared to CNY -1,133,591,000 in the same period last year[4] - Operating cash inflow for the first nine months was CNY 35,434,980, a decrease of 19.5% from CNY 44,102,805 in the previous year[31] - Net cash flow from operating activities was negative CNY 4,628,084, compared to negative CNY 1,133,591 in the same period last year[31] - Cash received from sales and services was CNY 25,916,941, a decline of 37.5% from CNY 41,492,881 year-on-year[31] - Total cash outflow for operating activities was CNY 40,063,064, a decrease of 11.5% from CNY 45,236,396 in the previous year[31] - Cash inflow from investment activities totaled CNY 127,273, up from CNY 25,910 year-on-year[32] - Net cash flow from investment activities was negative CNY 397,028, an improvement from negative CNY 3,379,475 in the previous year[32] - Cash inflow from financing activities was CNY 41,540,077, down from CNY 45,399,856 year-on-year[32] - Net cash flow from financing activities was CNY 5,098,859, compared to CNY 7,171,141 in the same period last year[32] - The ending cash and cash equivalents balance was CNY 2,135,297, down from CNY 3,899,432 at the end of the previous year[32] Shareholder Information - The number of shareholders reached 166,627, with the largest shareholder, China Petroleum & Chemical Corporation, holding 65.22% of shares[6] Other Financial Metrics - The weighted average return on net assets was -44.47%, a decrease of 34.54 percentage points compared to the previous year[5] - The company recorded an investment income of 14,134 thousand RMB, a significant improvement from a loss of 4,691 thousand RMB in the previous year, primarily from entrusted loans[9] - The company reported an investment income of 7,455 thousand RMB for Q3, compared to a loss of 4,691 thousand RMB in the previous year[25] - The company incurred financial expenses of 125,237 thousand RMB in Q3, a decrease from 336,259 thousand RMB in the same period last year[25] - The company reported a sales expense of 13,341 thousand RMB for Q3, compared to 11,381 thousand RMB in the same period last year[25] - The company’s deferred income increased by 41.0% to 83,209 thousand RMB, mainly due to new national special funds[9] - The company’s undistributed profits showed a significant loss of -7,716,278 thousand RMB, a decrease of 776.1% compared to a profit of 1,141,287 thousand RMB in the previous year, primarily due to substantial operating losses in 2016[9] - The company experienced a 34.9% decrease in business tax and surcharges, totaling 244,847 thousand RMB, mainly due to a decline in operating revenue[9] - Accounts receivable decreased by 38.5% to CNY 16,676,092,000, attributed to faster collection efforts[8] - Inventory increased from 14,769,275 thousand RMB to 15,407,211 thousand RMB, reflecting a growth of approximately 4.3%[19] - The company's other receivables rose from 2,432,785 thousand RMB to 3,625,888 thousand RMB, an increase of approximately 49.2%[19] - Short-term borrowings increased by 43.5% to 17,316,784 thousand RMB from 12,070,312 thousand RMB, reflecting a rise in borrowing scale at the end of the period[9] - The company's long-term borrowings increased slightly from 618,969 thousand RMB to 685,257 thousand RMB, an increase of about 10.7%[20] - The company reported a 62.6% decrease in construction in progress, amounting to 1,014,591 thousand RMB, primarily due to reduced capital expenditures and the conversion of some projects to fixed assets[9] - Non-current asset disposal losses amounted to CNY -3,596,000 during the reporting period[6]

Financial Performance - The company reported a total revenue of RMB 10.5 billion for the first half of 2016, representing a year-on-year increase of 15%[22]. - The net profit attributable to shareholders for the same period was RMB 1.2 billion, up 20% compared to the previous year[22]. - The company reported a net loss attributable to shareholders of RMB 4,509,421, compared to a net loss of RMB 1,380,350 in the same period last year, indicating a significant decline in performance[24]. - Operating revenue fell by 19.2% to RMB 18,689,863 from RMB 23,121,285 year-on-year[24]. - The basic earnings per share decreased to RMB -0.319 from RMB -0.101 in the previous year, reflecting a worsening financial position[25]. - The company reported a net cash flow from operating activities of -RMB 3,110,624, compared to -RMB 1,371,422 in the same period last year[47]. - The company reported a comprehensive loss of RMB 4,509,504 thousand for the period, reflecting a significant decline in profitability[164]. Market Expansion and Strategy - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[22]. - Market expansion efforts include entering three new international markets, expected to contribute an additional RMB 1 billion in revenue[22]. - The company has completed two strategic acquisitions in the past six months, enhancing its service capabilities and market reach[22]. - The international business revenue increased by 8.8% to RMB 6,800,223 thousand, accounting for 36.4% of total revenue in the first half of 2016[42]. - The company signed new international contracts worth USD 1.71 billion, a year-on-year increase of 2.4%[42]. Research and Development - The company is investing RMB 500 million in R&D for new technologies aimed at enhancing operational efficiency[22]. - Research and development expenses increased by 28.0% to RMB 70,157 thousand compared to RMB 54,808 thousand in the previous year[46]. - The company obtained 195 domestic and international patent authorizations and applied for 229 new patents in the first half of 2016[43]. - The company achieved a significant breakthrough in high-performance water-based drilling fluid technology for shale gas horizontal wells[43]. Financial Position and Stability - The company has maintained a strong balance sheet with a debt-to-equity ratio of 0.5, indicating financial stability[22]. - Total assets decreased by 9.2% to RMB 77,477,260, compared to RMB 85,307,777 at the end of the previous year[23]. - The company's total assets decreased by RMB 7,830,517 thousand, from RMB 85,307,777 thousand on December 31, 2015, to RMB 77,477,260 thousand on June 30, 2016[78]. - The company's equity attributable to shareholders decreased by RMB 4,438,143 thousand, from RMB 24,638,094 thousand to RMB 20,199,951 thousand[78]. - The company's capital debt ratio as of June 30, 2016, was 41.4%, up from 30.5% at the end of 2015[86]. Shareholder Information - The total number of shareholders as of June 30, 2016, was 176,436, including 176,072 domestic A-share shareholders and 346 overseas H-share registered shareholders[119]. - The top shareholder, China Petroleum & Chemical Corporation, holds 9,224,327,662 shares, representing 65.22% of total shares[120]. - The total number of shares held by the top ten shareholders amounts to 12,000,000,000, which is approximately 85.64% of the total issued shares[120]. - The restricted shares held by China Petroleum & Chemical Corporation will become tradable on December 31, 2017, totaling 9,224,327,662 shares[122]. Governance and Compliance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules during the reporting period[110]. - The company has not established a nomination committee as required by the corporate governance code, but has clear provisions in its articles of association regarding director nominations[110]. - The company’s independent directors played an active role in related transactions, executive appointments, and financial audits[110]. - The board confirmed that all related transactions were conducted under normal business terms and complied with regulatory requirements[100]. Operational Efficiency - The company will continue to enhance internal reforms and optimize management mechanisms to improve operational efficiency and reduce costs[74]. - The company aims to expand its financing channels and develop good relationships with listed and state-owned financial institutions to secure more credit lines[182]. - The company’s financial statements are prepared based on the going concern principle, indicating confidence in future cash flows from operations[182].

Financial Performance - Operating revenue fell by 23.6% to CNY 8,510,893 thousand year-on-year[7] - Net profit attributable to shareholders was CNY -1,715,977 thousand, a significant decline from CNY -398,768 thousand in the same period last year[7] - The weighted average return on net assets was -7.08%, down from -1.80% year-on-year[7] - Basic and diluted earnings per share were both CNY -0.119, compared to CNY -0.028 in the same period last year[7] - The company reported a net loss of RMB 543,923 thousand for Q1 2016, a decline of 147.7% compared to an undistributed profit of RMB 1,141,287 thousand in Q1 2015[14] - Net loss for Q1 2016 was 1,685,210 thousand RMB, compared to a net loss of 368,775 thousand RMB in Q1 2015, indicating a significant increase in losses[26] - The total comprehensive income attributable to the parent company was -1,685,210 thousand RMB, compared to -368,724 thousand RMB in the previous period, indicating a significant decline[28] Assets and Liabilities - Total assets decreased by 7.3% to CNY 79,039,414 thousand compared to the end of the previous year[7] - Total liabilities decreased to 56,053,766 thousand RMB from 60,670,824 thousand RMB, reflecting a reduction of 7.5%[21] - Current liabilities totaled 55,294,733 thousand RMB, a decrease of 7.5% from 59,903,473 thousand RMB[21] - The company’s total current assets decreased to RMB 44,267,379 thousand from RMB 49,511,042 thousand, reflecting a reduction in cash and accounts receivable[19] - The company’s non-current liabilities due within one year increased by 77.3% to RMB 154,895 thousand, primarily due to an increase in long-term borrowings maturing within one year[14] Cash Flow - The company reported a net cash flow from operating activities of CNY -1,953,173 thousand, compared to CNY -1,879,255 thousand in the previous year[7] - The net cash flow from operating activities was -1,953,173 thousand RMB, compared to -1,879,255 thousand RMB in the previous period, indicating a worsening cash flow situation[33] - Cash flow from investing activities showed a net outflow of RMB 162,600 thousand, a decrease of 373.3% compared to a net inflow of RMB 59,496 thousand in the previous year, primarily due to a significant reduction in cash received from the disposal of non-current assets[14] - The net cash flow from financing activities was 2,069,580 thousand RMB, a decrease from 3,544,859 thousand RMB in the previous period[34] Shareholder Information - The number of shareholders reached 198,096, with the largest shareholder being China Petroleum & Chemical Corporation holding 65.22%[11] - The top ten shareholders held a total of 99.99% of the shares, indicating a high concentration of ownership[11] - The company did not issue preferred shares, and there were no reports of any preferred shareholders[13] Inventory and Receivables - Accounts receivable increased by 99.6% to RMB 282,013 thousand from RMB 141,132 thousand, mainly due to an increase in bill settlements by customers[14] - The company’s inventory increased to RMB 16,556,470 thousand from RMB 14,769,275 thousand, indicating a rise in stock levels[19] Other Financial Metrics - The company received government subsidies amounting to CNY 14,837 thousand during the reporting period[12] - The company incurred financial expenses of 88,572 thousand RMB, a decrease of 43.8% from 157,766 thousand RMB in the previous year[27] - The company reported an investment income of 7,673 thousand RMB in Q1 2016, compared to no investment income in the same period last year[27] - The company completed the non-public issuance of 1,333,333,333 shares of A-shares on March 3, 2016, which has been listed for trading[14]

Financial Performance - The net profit attributable to shareholders for 2015 was RMB 24,478 thousand according to Chinese accounting standards, while it was RMB -11,543 thousand under International Financial Reporting Standards[5]. - As of the end of 2015, the company's undistributed profits amounted to RMB -1,422,273 thousand, leading to a recommendation of no profit distribution for the year[5]. - In 2015, the company's operating revenue was RMB 60,349,334 thousand, a decrease of 36.1% compared to RMB 94,481,041 thousand in 2014[25]. - The net profit attributable to shareholders was RMB 24,478 thousand in 2015, down 98.0% from RMB 1,229,753 thousand in 2014[25]. - The basic earnings per share for 2015 was RMB 0.002, a decrease of 97.5% from RMB 0.08 in 2014[27]. - The net cash flow from operating activities was RMB 2,575,929 thousand in 2015, down 61.8% from RMB 6,746,135 thousand in 2014[25]. - The company reported a significant decrease in net profit from RMB 1,229,753 thousand in 2014 to RMB 24,478 thousand in 2015, indicating a challenging financial year[134]. Operational Efficiency - The company is focused on enhancing its operational efficiency amid a challenging market environment[8]. - The company achieved a cost-saving of RMB 1.18 billion through internal efficiency improvements[50]. - The company reduced its workforce by 10,300 employees, optimizing labor organization and improving efficiency[66]. - The company's total operating expenses decreased by 22.9% to RMB 26,177,621 thousand, reflecting overall cost management efforts[76]. Market Conditions - The company faces risks due to persistently low international oil prices, which may suppress exploration and production investments, potentially reducing demand for oilfield services[8]. - The average price of WTI and Brent crude oil fell by 47.5% and 46.0% respectively in 2015, impacting overall revenue[84]. - The company's operating revenue decreased by 36.1% due to a significant reduction in upstream exploration and development capital expenditures by domestic and international oil companies[84]. - The company anticipates continued pressure on operations due to weak global oil demand and ongoing market competition[91]. Strategic Focus - The company plans to implement five strategic focuses: professionalization, marketization, specialization, high-end development, and internationalization[41]. - The company plans to focus on market development, efficiency enhancement, structural adjustment, and innovation during the "13th Five-Year Plan" period[52]. - The company plans to continue its market expansion and technological innovation efforts to improve future performance despite past challenges[136]. Shareholder Information - 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 cash dividends, but no dividends were declared for 2015 due to negative retained earnings[133]. - The net profit attributable to shareholders of the listed company for 2015 was RMB 24,478 thousand, with no cash dividends distributed[134]. - The company is committed to maintaining the rights and interests of minority shareholders through independent board oversight in dividend decisions[133]. Related Party Transactions - The company engaged in significant related party transactions, including purchasing raw materials and equipment from China Petroleum Group totaling RMB 9,327.66 million, which accounted for 37.2% of similar transactions[148]. - The company provided engineering services to China Petroleum Group amounting to RMB 37,502.33 million, representing 64.0% of similar service transactions[148]. - The company borrowed RMB 56,746.08 million from China Petroleum Group, which constituted 99.4% of total borrowings[148]. Audit and Compliance - The board of directors has approved the annual report, ensuring its accuracy and completeness[4]. - The company has undergone audits by reputable accounting firms, receiving standard unqualified audit opinions[4]. - The company’s financial reports for 2015 accurately reflect its financial status and operating results, complying with relevant regulations[165]. Future Projections - The company plans to allocate capital expenditures of RMB 3.45 billion in 2016, focusing on high-end business development and marine engineering construction equipment[103]. - The company aims to achieve a drilling footage of 6.65 million meters and complete 4,350 well interventions in 2016[95][97]. - The company plans to sign new contracts worth USD 2 billion and complete contracts worth USD 2 billion in international business[100].

Financial Performance - Operating revenue fell by 41.5% to CNY 36,580,781,000 from CNY 62,559,431,000[9] - Net profit attributable to shareholders was CNY -2,102,370,000, a significant decline from CNY -1,968,630,000 in the previous year[9] - Basic and diluted earnings per share were both CNY -0.149, reflecting a decline from CNY -0.022 in the previous year[9] - Total operating revenue for Q3 2015 was 13,459,496 thousand RMB, a decrease from 20,449,896 thousand RMB in the same period last year, representing a decline of approximately 34.5%[29] - The net profit attributable to the parent company for Q3 2015 was -679,712 thousand RMB, a significant decline from a profit of 344,513 thousand RMB in Q3 2014[29] - The total profit for Q3 2015 was -611,391 thousand RMB, compared to a profit of 556,207 thousand RMB in Q3 2014, reflecting a significant downturn[29] Cash Flow - Cash flow from operating activities improved to CNY -1,133,591,000, compared to CNY -4,293,963,000 in the same period last year[8] - Cash flow from operating activities for the first nine months of 2015 was -1,133,591 thousand RMB, an improvement from -4,293,963 thousand RMB in the same period of 2014[32] - The company experienced a net increase in cash and cash equivalents of 2,697,678 thousand RMB in Q3 2015, compared to a decrease of 56,380 thousand RMB in Q3 2014[33] - Cash inflow from financing activities is 5,954,000, compared to 5,246,511 in the previous year[36] - The net increase in cash and cash equivalents is 2,348,679, compared to a decrease of -29,016 in the same period last year[36] Assets and Liabilities - Total assets decreased by 4.9% to CNY 77,349,669,000 compared to the end of the previous year[8] - As of September 30, 2015, current assets totaled CNY 42,781,226 thousand, a decrease from CNY 45,824,701 thousand at the beginning of the year, representing a decline of approximately 6.7%[22] - Total liabilities decreased to CNY 54,569,934 thousand from CNY 62,599,570 thousand, a decline of about 12.8%[23] - The company's equity attributable to shareholders increased to CNY 22,780,717 thousand from CNY 18,697,120 thousand, representing a growth of approximately 21.0%[23] Shareholder Information - The number of shareholders reached 89,846, with 367 holding H shares[10] - The largest shareholder, China Petroleum & Chemical Corporation, holds 65.22% of the shares[11] Government Support and Income - Government subsidies recognized in the current period amounted to CNY 23,061,000, totaling CNY 42,148,000 for the year-to-date[10] - Non-operating income and expenses totaled CNY 21,388,000 for the current period[10] Inventory and Receivables - Accounts receivable decreased by 44.6% to RMB 15,560,571,000 from RMB 28,064,935,000, mainly due to accelerated collection of customer debts[15] - Inventory increased by 49.0% to RMB 17,782,994,000 from RMB 11,932,142,000, mainly due to delays in the overall settlement progress of new projects[15] Investment and Financing Activities - The net cash flow from financing activities increased by 42.4% to RMB 7,171,141,000 compared to RMB 5,036,662,000, primarily due to funds received from fundraising[16] - The company reported a total investment cash outflow of 3,405,385 thousand RMB for the first nine months of 2015, compared to 878,144 thousand RMB in the same period last year[32] Strategic Commitments - The company has committed to maintaining independence from its controlling shareholder, Sinopec Group, ensuring compliance with regulations regarding related party transactions[17] - The company plans to propose an equity incentive plan to the board after the completion of the major asset restructuring[20] - The major asset restructuring will prioritize business opportunities that may compete with the company's main operations, ensuring they are offered to the company first[20] - The company has committed to avoiding competition with its parent group, ensuring that any new business opportunities will be prioritized for the company[20]

Financial Performance - The company reported a mid-year financial performance that has not been audited, but the financial report prepared according to international financial reporting standards has been reviewed by Deloitte (Hong Kong) CPA Limited[4]. - The company has not experienced any changes in its basic situation during the reporting period[18]. - The company’s financial report includes key performance indicators that reflect its operational efficiency and market position[10]. - Total assets decreased by 9.2% to RMB 73,812,786 thousand compared to the previous year[26]. - Equity attributable to shareholders increased by 25.2% to RMB 23,401,862 thousand from RMB 18,697,120 thousand[26]. - The company reported a total loss attributable to shareholders of RMB 1,380,350 thousand, a significant increase from a loss of RMB 687,285 thousand in the previous year[29]. - Operating revenue fell by 45.1% to RMB 23,121,285 thousand from RMB 42,109,535 thousand year-on-year[29]. - The net cash flow from operating activities was a negative RMB 1,371,422 thousand, compared to a negative RMB 1,982,413 thousand in the previous year[29]. - Basic and diluted earnings per share were both RMB -0.101, compared to RMB -0.045 in the same period last year[31]. - The net asset return rate decreased to -6.56%, down by 3.70 percentage points from the previous year[31]. - The company’s cash flow per share from operating activities was RMB -0.101, compared to RMB -0.134 in the previous year[26]. - The company’s total liabilities and equity structure indicates a need for strategic adjustments to improve financial health moving forward[29]. Revenue and Costs - The company's consolidated revenue for the first half of 2015 was RMB 23,121,285 thousand, a decrease of 45.1% compared to RMB 42,109,535 thousand in the same period last year[39]. - The net loss attributable to shareholders for the first half of 2015 was RMB 1,380,350 thousand, with a basic loss per share of RMB 0.101, compared to a net loss of RMB 687,285 thousand and a basic loss per share of RMB 0.045 in the previous year[39]. - The company's drilling services revenue decreased by 30.0% to RMB 12,473,028 thousand, with drilling footage down 40.4% to 3.37 million meters[43]. - The international business revenue fell by 28.0% to RMB 6,250,362 thousand, accounting for 27.0% of total revenue, while new contract value in overseas markets increased by 26.6% to USD 1.67 billion[48]. - The company achieved a significant increase in international market contracts, with contracts in Kuwait growing by 144.7% to USD 1.4 billion and contracts in Saudi Arabia increasing by 10.4% to USD 440 million[48]. - The company reduced operating costs by RMB 450 million through various measures, including optimizing production organization and reducing personnel by 2,700 employees[50]. - Research and development expenses decreased by 39.2% to RMB 54,808 thousand, reflecting a focus on cost control amid declining revenues[52]. - The company reported a 50.2% decline in revenue from logging services, totaling RMB 769,351 thousand, with significant reductions in both logging and recording footage[44]. - The decrease in operating costs is primarily due to a decline in oil service business workload and enhanced cost control measures[53]. Shareholder and Capital Structure - The board of directors decided not to distribute interim dividends for the year ending December 31, 2015, nor to increase share capital from capital reserves[6]. - The company raised a total of RMB 5,999,999,998.5 through a private placement of 1,333,333,333 shares at RMB 4.50 per share, with a net amount of RMB 5,952,516,665.5 after deducting issuance costs[54]. - The total number of shares increased from 12,809,327,662 to 14,142,660,995, representing a change of approximately 10.5% due to the issuance of 1,333,333,333 restricted A shares[121]. - The proportion of restricted shares increased from 80.1% to 82.0% following the issuance, while unrestricted shares decreased from 19.9% to 18.0%[121]. - The company has a significant concentration of ownership, with the top two shareholders holding over 80% of the total shares[126]. - The largest shareholder, China Petroleum & Chemical Corporation, holds 9,224,327,662 shares, representing 65.22% of total shares[126]. - The second largest shareholder, Hong Kong Central Clearing Limited, holds 2,085,275,495 shares, accounting for 14.74%[126]. - The total number of shareholders as of June 30, 2015, was 102,327, including 101,956 domestic A-share shareholders and 371 overseas H-share shareholders[125]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance standards set by the Hong Kong Stock Exchange, with no significant discrepancies noted[115]. - The board of directors has approved the adoption of the Corporate Governance Code, ensuring adherence to the relevant standards throughout the reporting period[117]. - 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[115]. - The company confirmed that all related party transactions were conducted based on market prices and adhered to fair and transparent principles[100]. - The company maintained compliance with regulatory requirements regarding related party transactions throughout the reporting period[105]. - The company has not reported any changes in accounting policies or significant prior period errors during the reporting period[118]. - The company has successfully revised and implemented its internal control system, with significant progress reported in risk management and process standardization[114]. Future Outlook and Strategy - The company emphasizes the importance of forward-looking statements regarding future development strategies and operational plans, cautioning investors about potential risks[7]. - The company plans to complete 21,359 kilometers of 2D seismic acquisition and 7,453 square kilometers of 3D seismic acquisition in the second half of 2015[72]. - The company aims to achieve a drilling footage of 4.82 million meters in the second half of 2015[74]. - The company plans to complete 12,690 million standard meters of logging and 446 million meters of recording in the second half of 2015[75]. - The company targets to sign new contracts worth 9.5 billion RMB and complete contracts exceeding 12 billion RMB in the second half of 2015[77]. - The company anticipates signing new contracts worth 900 million USD and completing contracts worth 1.25 billion USD in the second half of 2015[78]. - The company expects continued low international oil prices due to oversupply and competition in the oilfield service industry[70]. - The company will focus on optimizing resource integration and structural adjustments to improve operational performance[71]. - The company plans to enhance its service capabilities in the overseas market, particularly in the Middle East[74]. - The company will continue to promote shale gas development technology and expand into unconventional markets domestically[73]. Asset Management - The total assets under management for various asset management plans reached approximately 1.33 billion[124]. - The largest asset management plan reported a value of 111,110,800[123]. - The second-largest asset management plan had a value of 93,333,333[123]. - The asset management plan with the lowest reported value was 1,084,273[124]. - The company is actively managing a diverse portfolio of asset management plans[123][124]. - The data indicates a strong presence in the asset management sector with significant capital allocation[123][124]. - The company continues to expand its asset management offerings to meet market demands[123][124]. Financial Position and Liabilities - The company's total assets amounted to RMB 73,812,786 thousand, a decrease from RMB 81,295,708 thousand at the beginning of the period, reflecting a decline of approximately 9.1%[146]. - The company's cash and cash equivalents increased significantly to RMB 3,026,832 thousand from RMB 1,213,897 thousand, representing a growth of approximately 149.4%[146]. - Accounts receivable decreased to RMB 15,236,817 thousand from RMB 28,064,935 thousand, indicating a reduction of about 45.9%[146]. - Inventory rose to RMB 16,159,358 thousand from RMB 11,932,142 thousand, marking an increase of approximately 35.5%[146]. - The company's total current assets decreased to RMB 40,042,091 thousand from RMB 45,824,701 thousand, a decline of about 12.7%[146]. - Non-current assets totaled RMB 33,770,695 thousand, down from RMB 35,471,007 thousand, reflecting a decrease of approximately 4.8%[146]. - The company's total liabilities decreased from RMB 62,599,570 thousand at the beginning of the period to RMB 50,411,981 thousand at the end of the period, a reduction of approximately 19.4%[148]. - The company's debt-to-asset ratio was 68.3% as of June 30, 2015, down from 77.0% at the end of 2014[88]. - The capital debt ratio as of June 30, 2015, was 28.2%, down from 37.8% at the end of 2014[92]. Related Party Transactions - The company engaged in significant related party transactions totaling RMB 2,278,104 thousand for raw materials and equipment procurement, accounting for 51.3% of similar transactions[100]. - The company provided engineering services to China Petroleum & Chemical Corporation and its subsidiaries, amounting to RMB 12,616,265 thousand, representing 54.6% of similar transactions[100]. - The company borrowed RMB 26,332,206 thousand from China Petroleum & Chemical Corporation, which accounted for 99.9% of similar transactions[100]. - The company repaid RMB 26,755,339 thousand in loans to China Petroleum & Chemical Corporation, constituting 100% of similar transactions[100]. - The company reported a balance of RMB 6,650,950 thousand in receivables from China Petroleum & Chemical Corporation at the end of the reporting period[104]. - The company had a total of RMB 19,712,996 thousand in payables to China Petroleum & Chemical Corporation at the beginning of the reporting period[104]. Accounting and Financial Reporting - The financial statements are prepared on a going concern basis, with expectations of generating sufficient operating cash flow in the next twelve months[188]. - The accounting policies are in accordance with the enterprise accounting standards, reflecting the financial position as of June 30, 2015, and the operating results for the first half of 2015[189]. - The group’s accounting period follows the calendar year, from January 1 to December 31[189]. - The group’s operating cycle is 12 months[189]. - The financial statements are presented in RMB, with subsidiaries determining their functional currency based on their economic environment[189]. - The group’s consolidated financial statements include all subsidiaries, with specific details provided in the notes[194]. - The company recognizes minority interests in the consolidated balance sheet under shareholders' equity, with losses exceeding the minority shareholders' equity being deducted from their interests[195]. - The company treats step disposals of equity leading to loss of control as a bundled transaction if they meet specific criteria, impacting the accounting treatment of gains and losses[197].

Financial Performance - Operating revenue fell by 38.6% to CNY 11,135,608 thousand year-on-year[7] - Net profit attributable to shareholders was CNY -398,768 thousand, a decrease of 241.7% compared to the previous year[7] - Basic and diluted earnings per share were both CNY -0.028, a decline of 264.7% year-on-year[7] - Revenue for Q1 2015 was RMB 11,135,608, a decrease of 38.6% compared to RMB 18,140,519 in Q1 2014, primarily due to a decline in oil service business workload and the divestment of the chemical fiber business[15] - The net profit for Q1 2015 was -368,775 thousand RMB, a significant decline from a net profit of 258,964 thousand RMB in Q1 2014[28] - The company reported a gross loss of 352,544 thousand RMB in Q1 2015, compared to a gross profit of 287,803 thousand RMB in the same quarter of the previous year[28] - The total comprehensive income for Q1 2015 was a loss of CNY 327,861, consistent with the net profit loss[31] Cash Flow and Liquidity - Cash flow from operating activities improved to CNY -1,879,255 thousand, compared to CNY -4,505,338 thousand in the same period last year[7] - Cash and cash equivalents increased by 142.1% to CNY 2,938,250 thousand compared to the end of the previous year[14] - The company reported a cash and cash equivalents balance of CNY 2,938,251 at the end of Q1 2015, up from CNY 1,582,703 in the previous period[34] - Cash inflow from financing activities was CNY 22,998,170, slightly lower than CNY 25,328,284 in the previous period[34] - The cash outflow for operating activities totaled CNY 18,697,215, down from CNY 28,633,964 in the previous period[33] Assets and Liabilities - Total assets decreased by 6.7% to CNY 75,881,038 thousand compared to the end of the previous year[7] - The total liabilities as of March 31, 2015, amounted to 51,532,262 thousand RMB, down from 62,599,570 thousand RMB at the beginning of the year, indicating a reduction of approximately 17.5%[24] - The company’s total assets as of March 31, 2015, were 75,881,038 thousand RMB, down from 81,295,708 thousand RMB at the beginning of the year, reflecting a decrease of approximately 6.9%[23] - The company’s short-term borrowings decreased to RMB 9,622,287 from RMB 11,889,709, reflecting a reduction in borrowing scale[21] Shareholder Information - The total number of shareholders was 38,317, with the largest shareholder holding 65.22% of the shares[12] - The company reported a significant increase in net assets attributable to shareholders by 30.2% to CNY 24,349,809 thousand[7] - The total equity attributable to shareholders of the parent company increased to 24,349,809 thousand RMB from 18,697,120 thousand RMB, marking an increase of about 30.2%[23] Cost Management - Operating costs decreased by 36.5% to RMB 10,426,926 from RMB 16,410,241, attributed to reduced workload in oil services and stringent cost control measures[15] - Financial expenses decreased by 41.3% to RMB 157,766 from RMB 268,620, primarily due to a reduction in borrowing scale during the period[15] - The company’s management reported a focus on cost control and efficiency improvements in response to the declining revenue trends observed in Q1 2015[28] Other Income - Non-operating income totaled CNY 30,044 thousand, primarily from government subsidies and asset disposals[10] - The company recorded a significant increase in other income, with operating income from asset disposals rising by 108.2% to RMB 47,636 from RMB 22,880[15] - The company received CNY 5,954,000 from investment activities, indicating a significant inflow compared to the previous period[37]

Financial Performance - The company achieved a net profit of RMB 1,231,967 thousand for the year 2014, with a net profit attributable to shareholders of RMB 1,229,753 thousand under Chinese accounting standards, and RMB 1,257,308 thousand under International Financial Reporting Standards[4]. - The company's operating revenue for 2014 was RMB 94,481,041,000, a decrease of 12.0% compared to RMB 107,406,243,000 in 2013[27]. - The net profit attributable to shareholders for 2014 was RMB 1,229,753,000, a significant increase of 1,908.9% from RMB 61,216,000 in 2013[27]. - The total assets at the end of 2014 were RMB 81,295,708,000, representing a decrease of 12.3% from RMB 92,736,669,000 in 2013[27]. - The company's net cash flow from operating activities for 2014 was RMB 6,746,135,000, an increase of 283.9% compared to RMB 1,757,418,000 in 2013[27]. - The basic earnings per share for 2014 was RMB 0.08, a substantial increase from RMB 0.004 in 2013, reflecting a growth of 1,908.9%[28]. - The weighted average return on equity for 2014 was 4.98%, an increase of 4.78 percentage points compared to 0.2% in 2013[28]. - The company's total liabilities at the end of 2014 were RMB 62,599,570,000, a slight increase of 1.0% from RMB 61,970,437,000 in 2013[27]. - The net assets attributable to shareholders decreased by 39.1% to RMB 18,697,120,000 in 2014 from RMB 30,681,294,000 in 2013[27]. - The company reported a significant increase in short-term borrowings, totaling RMB 78,120,590 thousand, a rise of 46.2% from RMB 53,451,827 thousand in the previous year[71]. Strategic Goals and Market Position - The company aims to become a world-class integrated oil service company, focusing on five strategies: professionalization, marketization, specialization, high-end services, and internationalization[14]. - The company plans to expand its services from land to offshore, domestically to internationally, and from conventional to unconventional projects[14]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and service offerings[22]. - The company aims to enhance its core competitiveness by focusing on high-end, specialized, and internationalized services as part of its strategic goals[43]. - The company’s overseas market showed significant growth, with integrated oil reservoir services becoming a new profit growth point[40]. Audit and Compliance - The company has undergone an audit by Deloitte Touche Tohmatsu and received standard unqualified audit opinions for its financial reports[4]. - The company has not violated any decision-making procedures in providing guarantees[6]. - The company did not declare any cash dividends for 2014 due to negative retained earnings at the end of 2014[109]. - The company has maintained compliance with relevant regulations regarding related party transactions, ensuring fairness and alignment with shareholder interests[165]. - The company reported no significant litigation, arbitration, or media scrutiny during the reporting period[133]. Risks and Challenges - The company has detailed potential risks in its annual report, which investors should consider[12]. - The company anticipates facing risks from global oil price fluctuations, which may impact exploration and development investments[102]. - The company acknowledges increasing competition in the oilfield services market, which may affect market share and pricing strategies[103]. - The company is subject to environmental regulations that may increase operational costs due to stricter compliance requirements[104]. Research and Development - The company applied for 489 domestic and international patents in the year, receiving 389 patent authorizations, indicating significant progress in proprietary technology[56]. - Research and development expenses rose by 8.3% to RMB 524,879 thousand from RMB 484,506 thousand in the previous year[57]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[200]. Shareholder Structure and Transactions - China Petroleum & Chemical Corporation (Sinopec) Group holds 9,224,327,662 shares, accounting for 72.01% of the total share capital, making it the controlling shareholder[176]. - The company completed the repurchase and cancellation of 2,415,000,000 shares held by Sinopec on December 31, 2014, as part of the restructuring plan[183]. - The total share capital of the company increased from 6,000,000,000 shares to 12,809,327,662 shares as of December 31, 2014, due to a major asset restructuring[173]. - The company has no internal employee shares as of the end of the reporting period[174]. - The company continues to engage in necessary related party transactions to ensure stable supply and financial resources, reflecting fair market pricing principles[140]. Future Outlook - The company plans to allocate capital expenditures of RMB 4.51 billion in 2015, focusing on high-end business development and safety projects[99]. - The company plans to complete 35,335 kilometers of 2D seismic acquisition and 13,605 square kilometers of 3D seismic acquisition in 2015[92]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $300 million allocated for potential deals[198]. - The company has set a future revenue guidance of 300 million for the next quarter, representing a 10% increase from the current quarter[192].

Financial Performance - Net profit attributable to shareholders was CNY -1,968,630,000, a significant increase in loss compared to CNY -669,467,000 in the same period last year[7]. - Operating revenue for the first nine months was CNY 11,937,448,000, down 10.6% from CNY 13,349,217,000 year-on-year[7]. - The company's operating revenue for Q3 2014 was CNY 4,013,025 thousand, a decrease of 13.3% compared to CNY 4,631,226 thousand in Q3 2013[31]. - The net profit for Q3 2014 was a loss of CNY 262,050 thousand, compared to a loss of CNY 200,169 thousand in the same period last year, reflecting a worsening of 31%[31]. - The weighted average return on net assets decreased by 24.61 percentage points to -33.04%[8]. Production and Sales - Polyester product production was 559,896 tons, a decrease of 11.3% from 631,384 tons in the same period last year[13]. - Sales of polyester products were 466,144 tons, down 8.7% from 510,749 tons year-on-year[13]. - PTA production increased by 12.7% to 271,360 tons compared to 240,815 tons in the same period last year[13]. - The utilization rate of polyester polymerization capacity was 83.5%[13]. - Polyester chip sales accounted for 38.2% of total revenue, generating RMB 1,534,412 thousand, while bottle-grade chips contributed 15.8% with RMB 632,585 thousand[17]. Assets and Liabilities - Total assets decreased by 18.2% to CNY 8,691,425,000 compared to the end of the previous year[7]. - The total liabilities increased slightly to CNY 3,607,083 thousand from CNY 3,532,816 thousand, marking a rise of 2.1%[28]. - The company’s total equity decreased to CNY 5,084,342 thousand from CNY 7,096,488 thousand, a decline of 28.3%[28]. - Cash and cash equivalents decreased by 46.3% to RMB 56,781 thousand due to increased net cash outflows from operating activities[19]. - The company reported a decrease in cash and cash equivalents at the end of the period to CNY 56,781 thousand from CNY 47,965 thousand year-over-year[36]. Expenses and Financials - The average selling price of polyester products (excluding VAT) fell by 5.3% compared to the same period last year, leading to a 13.3% decrease in revenue, amounting to RMB 4,013,025 thousand[16]. - The company’s sales expenses increased to CNY 64,706 thousand from CNY 60,625 thousand, reflecting an increase of 3.5%[31]. - The financial expenses surged to CNY 14,194 thousand from CNY 3,178 thousand, indicating a significant increase of 345%[31]. - The investment income for Q3 2014 was CNY 1,475 thousand, up from CNY 481 thousand in the same period last year, representing a growth of 207.5%[31]. Market Outlook and Strategic Actions - The company adjusted production loads and optimized product structure to mitigate market challenges[12]. - The company anticipates a continued challenging market environment, with potential for further losses in the upcoming reporting periods[23]. - The company is undergoing a major asset restructuring, with approval from the State-owned Assets Supervision and Administration Commission (SASAC) for the overall plan[20]. - The company plans to issue a circular to H-share shareholders, with the date postponed to October 27, 2014, affecting the timing of shareholder meetings[20]. - The company has implemented new accounting standards effective July 1, 2014, which did not have a significant impact on the financial statements[23].