[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) The board, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility [Report Declaration](index=3&type=section&id=Report%20Declaration) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, assuming legal responsibility - The company's board of directors, supervisory board, directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility[3](index=3&type=chunk) - This first quarter report is **unaudited**[3](index=3&type=chunk) [Company Profile](index=3&type=section&id=Item%20II.%20Company%20Profile) This section provides an overview of the company's key financial data, non-recurring gains and losses, shareholder information, and operating performance review [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) Q1 2019 saw stable assets, **72.3%** operating revenue growth, net profit turning profitable, and significantly improved operating cash flow Overview of Key Financial Data for Q1 2019 | Indicator | End of Reporting Period / Current Period (million yuan) | Beginning of Reporting Period / Prior Year Period (million yuan) | Change (%) / Change (percentage points) | | :--- | :--- | :--- | :--- | | **Balance Sheet** | | | | | Total Assets | 75,972.5 | 76,157.8 (adjusted at period-beginning) | -0.2% | | Net Assets Attributable to Shareholders of Listed Company | 34,507.1 | 34,524.2 (adjusted at period-beginning) | -0.0% | | **Income Statement** | | | | | Operating Revenue | 5,907.8 | 3,427.9 | 72.3% | | Net Profit Attributable to Shareholders of Listed Company | 31.0 | -651.1 | N/A (turned profitable) | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -47.1 | -903.3 | N/A (reduced losses) | | Weighted Average Return on Net Assets (%) | 0.1 | -1.9 | Increased 2.0 percentage points | | Basic Earnings Per Share (yuan/share) | 0.01 | -0.14 | N/A (turned profitable) | | **Cash Flow Statement** | | | | | Net Cash Flow from Operating Activities | -5.3 | -847.9 | N/A (decreased outflow) | - Due to the initial adoption of new leasing standards, only the data at the beginning of the reporting period in the table has been adjusted[4](index=4&type=chunk) [Non-Recurring Gains and Losses](index=3&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Q1 2019 non-recurring gains and losses totaled **78.05 million yuan**, mainly from wealth management product income and non-operating income Non-Recurring Gains and Losses Items and Amounts for Q1 2019 | Item | Amount for Current Period (yuan) | | :--- | :--- | | Gains/Losses from Disposal and Scrapping of Non-Current Assets | -9,117,773 | | Government Subsidies Included in Current Period's Gains/Losses | 13,546,495 | | Income from Wealth Management Products Included in Current Period's Gains/Losses | 69,445,435 | | Other Non-Operating Income and Expenses Apart from the Above | 16,238,629 | | Income Tax Impact | -12,061,118 | | **Total** | **78,051,668** | [Shareholder Information](index=4&type=section&id=2.2%20Total%20Number%20of%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Circulating%20Shareholders%20%28or%20Non-Restricted%20Shareholders%29%20at%20Period-End) The company had **65,113 shareholders** at period-end, with China National Offshore Oil Corporation (**50.53%**) and HKSCC Nominees Limited (**37.90%**) as the top two - As of the end of the reporting period, the total number of shareholders was **65,113**[7](index=7&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held at Period-End (shares) | Proportion (%) | Share Status | Quantity | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | China National Offshore Oil Corporation | 2,410,849,300 | 50.53 | None | 0 | State-owned Legal Person | | HKSCC Nominees Limited | 1,808,351,728 | 37.90 | None | 0 | Other | | China Securities Finance Corporation Limited | 140,604,876 | 2.95 | None | 0 | State-owned Legal Person | | Central Huijin Asset Management Co., Ltd. | 29,883,000 | 0.63 | None | 0 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 6,731,466 | 0.14 | None | 0 | Other | - The shares held by HKSCC Nominees Limited are held on behalf of others[9](index=9&type=chunk) [Operating Performance Review](index=5&type=section&id=2.4%20Operating%20Performance%20Review) Q1 2019 operating revenue surged **72.3%** due to market recovery and increased E&P investment, leading to significantly improved profitability and increased workloads across all service segments - In Q1 2019, the oilfield services market showed signs of recovery with increased upstream exploration and development investment, though market competition remained intense[10](index=10&type=chunk) Key Operating Performance for Q1 2019 | Indicator | Q1 2019 (million yuan) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 5,907.8 | 72.3 | | Total Profit | 168.5 | N/A (loss in prior year period) | | Net Profit | 38.6 | N/A (loss in prior year period) | - Excluding the impact of exchange losses and asset disposal gains, total profit was **274.5 million yuan**, a year-on-year increase of **833.4 million yuan**[10](index=10&type=chunk)[11](index=11&type=chunk) [Overall Operating Overview](index=5&type=section&id=Overall%20Operating%20Overview) The company achieved significant market expansion and refined management, with double-digit growth in drilling rig operations and utilization, and steady increases in marine and oilfield technical services workloads - The group continuously enhanced refined management, achieving significant domestic and international market expansion results[10](index=10&type=chunk) - Both jack-up and semi-submersible drilling rig operations increased significantly, with calendar day utilization showing **double-digit growth**[10](index=10&type=chunk) - Workloads across all business lines for marine support and oilfield technical services maintained a steady increase[10](index=10&type=chunk) [Drilling Services](index=6&type=section&id=Drilling%20Services) Drilling services operations and utilization significantly increased, with total operating days up **45.6%** to **3,312 days** and calendar day utilization up **15.9 percentage points** to **74.7%** Key Operating Data for Drilling Services | Indicator | March 31, 2019 | March 31, 2018 | Change (%) / (percentage points) | | :--- | :--- | :--- | :--- | | Operating Days (days) | 3,312 | 2,275 | 45.6% | | Jack-up Rig Operating Days | 2,521 | 1,817 | 38.7% | | Semi-submersible Rig Operating Days | 791 | 458 | 72.7% | | Calendar Day Utilization Rate | 74.7% | 58.8% | Increased 15.9 percentage points | | Jack-up Rig Calendar Day Utilization Rate | 77.8% | 63.1% | Increased 14.7 percentage points | | Semi-submersible Rig Calendar Day Utilization Rate | 66.4% | 46.3% | Increased 20.1 percentage points | - Five modular drilling rigs operating in the Gulf of Mexico worked **360 days** in the current period, an increase of **270 days** year-on-year, with calendar day utilization increasing by **60.0 percentage points**[16](index=16&type=chunk) [Marine Support Services](index=6&type=section&id=Marine%20Support%20Services%28Owned%20Fleet%20%29) Owned fleet operating days increased **5.4%** to **7,716 days**, with calendar day utilization up **7.2 percentage points** to **95.3%**, reaching a new high, and chartered vessel operations also significantly increased Key Operating Data for Marine Support Services (Owned Fleet) | Indicator | March 31, 2019 | March 31, 2018 | Change (%) / (percentage points) | | :--- | :--- | :--- | :--- | | Operating Days (days) | 7,716 | 7,319 | 5.4% | | Calendar Day Utilization Rate | 95.3% | 88.1% | Increased 7.2 percentage points | | Multi-purpose Vessel Operating Days | 323 | 132 | 144.7% | | Multi-purpose Vessel Calendar Day Utilization Rate | 89.7% | 36.7% | Increased 53.0 percentage points | - Owned fleet calendar day utilization increased by **7.2 percentage points** year-on-year to **95.3%**, reaching a new high in recent years[16](index=16&type=chunk) - The group's chartered vessel operations also significantly increased in the current period, totaling **3,301 days**, a year-on-year increase of **45.5%**[16](index=16&type=chunk) [Geophysical Prospecting and Engineering Survey Services](index=7&type=section&id=Geophysical%20Prospecting%20and%20Engineering%20Survey%20Services) Subsea cable operations substantially increased by **5,266.7%**, while 2D and 3D acquisition operations temporarily declined due to equipment adjustments and maintenance Key Operating Data for Geophysical Prospecting and Engineering Survey Services | Indicator | March 31, 2019 | March 31, 2018 | Change (%) | | :--- | :--- | :--- | :--- | | 2D Acquisition (km) | 8,086 | 9,803 | -17.5 | | 3D Acquisition (sq km) | 5,949 | 8,364 | -28.9 | | Subsea Cable (sq km) | 322 | 6 | 5,266.7 | - 2D and 3D acquisition operations experienced a temporary year-on-year decline, primarily due to the group's timely adjustment of equipment layout, work area transfers, and factory maintenance to meet subsequent robust market demand[16](index=16&type=chunk) [Significant Events](index=7&type=section&id=Item%20III.%20Significant%20Events) This section details significant changes in financial statement items, progress of important legal matters, and the company's performance outlook [Analysis of Significant Changes in Key Financial Statement Items and Indicators](index=7&type=section&id=3.1%20Significant%20Changes%20and%20Reasons%20for%20the%20Company%27s%20Key%20Financial%20Statement%20Items%20and%20Financial%20Indicators) Operating revenue, investment income, and short-term borrowings significantly increased, while asset disposal gains and trading financial assets substantially decreased, reflecting industry recovery and financing activities - Operating revenue increased by **72.3%** year-on-year to **5,907.8 million yuan**, primarily influenced by industry recovery and increased upstream exploration investment[18](index=18&type=chunk) - Investment income increased by **278.0%** year-on-year to **140.6 million yuan**, mainly due to good performance of joint ventures and increased income from wealth management and money market funds[23](index=23&type=chunk) - Short-term borrowings increased by **71.7%** from the beginning of the year to **2,356.7 million yuan**, primarily due to an additional **150 million USD** in short-term borrowings[30](index=30&type=chunk) [Income Statement Item Changes](index=7&type=section&id=Income%20Statement%20Item%20Changes) Operating revenue and cost grew with workload, sales expenses rose, investment income increased, while asset disposal gains and fair value change gains decreased, and income tax expense surged due to profitability Major Income Statement Item Changes | Item | Q1 2019 (million yuan) | Q1 2018 (million yuan) | Change (million yuan) | Growth (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 5,907.8 | 3,427.9 | 2,479.9 | 72.3 | Industry recovery, increased workload | | Operating Cost | 5,233.6 | 3,587.9 | 1,645.7 | 45.9 | Increased workload, increased cost input | | Selling Expenses | 6.8 | 2.7 | 4.1 | 151.9 | Increased sales volume | | Asset Impairment Losses | 0.9 | 2.0 | -1.1 | -55.0 | Decreased inventory impairment provision | | Other Income | 13.5 | 19.4 | -5.9 | -30.4 | Decreased government subsidies | | Investment Income | 140.6 | 37.2 | 103.4 | 278.0 | Good performance of joint ventures, increased wealth management income | | Gains from Changes in Fair Value | -21.5 | 19.5 | -41.0 | -210.3 | Redemption of money market funds and maturity of floating-rate wealth management products | | Gains from Asset Disposal | -0.2 | 219.8 | -220.0 | N/A | No disposal of large equipment | | Non-Operating Income | 11.9 | 33.5 | -21.6 | -64.5 | Decreased insurance claims | | Non-Operating Expenses | 4.5 | 7.3 | -2.8 | -38.4 | Decreased compensation for equipment dropped in well | | Income Tax Expense | 129.9 | 32.4 | 97.5 | 300.4 | Increased company profitability | [Balance Sheet Item Changes](index=9&type=section&id=Balance%20Sheet%20Item%20Changes) Trading financial assets decreased, short-term borrowings increased, contract liabilities and other current liabilities rose, long-term borrowings decreased, and other comprehensive income decreased, driven by financing and operational changes Major Balance Sheet Item Changes (Period-End vs. Period-Beginning) | Item | March 31, 2019 (million yuan) | January 1, 2019 (million yuan) | Change (million yuan) | Growth (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 600.3 | 1,749.7 | -1,149.4 | -65.7 | Wealth management maturity and money market fund redemption | | Short-term Borrowings | 2,356.7 | 1,372.6 | 984.1 | 71.7 | Increased **150 million USD** in short-term borrowings | | Contract Liabilities | 219.7 | 154.4 | 65.3 | 42.3 | Received mobilization fees | | Taxes Payable | 536.1 | 768.1 | -232.0 | -30.2 | Decreased VAT payable | | Other Current Liabilities | 415.9 | 202.1 | 213.8 | 105.8 | Increased deferred output VAT | | Long-term Borrowings | 486.2 | 787.6 | -301.4 | -38.3 | Repaid principal of **42 million USD** and **9 million yuan** | | Other Comprehensive Income | -198.5 | -150.5 | -48.0 | N/A | Impact of exchange rate fluctuations | [Cash Flow Statement Item Changes](index=10&type=section&id=Cash%20Flow%20Statement%20Item%20Changes) Operating cash outflow significantly decreased, while investing and financing cash flows turned into significant inflows, driven by increased cash from services, investment recovery, and borrowings Major Cash Flow Statement Item Changes (Current Period vs. Prior Year Period) | Item | Q1 2019 (million yuan) | Q1 2018 (million yuan) | Change (million yuan) | Change Type | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -5.3 | -847.9 | 842.6 | Decreased outflow | Cash received for providing labor and services increased by **1,930.9 million yuan** | | Net Cash Flow from Investing Activities | 155.7 | -3,731.5 | 3,887.2 | Increased inflow | Cash from investment recovery increased by **1,401.4 million yuan**, and cash paid for investments decreased by **2,977.1 million yuan** | | Net Cash Flow from Financing Activities | 320.7 | -521.3 | 842.0 | Increased inflow | Cash received from borrowings increased by **1,019.1 million yuan** | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -30.4 | -136.1 | 105.7 | Decreased outflow | Impact of exchange rate fluctuations | [Progress of Significant Events](index=10&type=section&id=3.2%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) Ongoing litigation between COM and Equinor Petroleum AS concerns the COSLInnovator drilling rig contract termination and COSLPromoter cost compensation, with both parties having filed appeals - COSL Offshore Management AS (COM) filed a lawsuit against Statoil Petroleum AS (now Equinor Petroleum AS) for the termination of the COSLInnovator drilling rig operating contract, alleging unlawful termination and claiming compensation[38](index=38&type=chunk)[39](index=39&type=chunk) - Following the Oslo District Court's judgment on May 15, 2018, both Equinor and COM have filed appeals with the Norwegian Court of Appeal[38](index=38&type=chunk)[39](index=39&type=chunk) - COM also claimed **15,238,596 USD** from Statoil for costs incurred to meet requirements for the COSLPromoter drilling rig and losses during the reduced day rate period[39](index=39&type=chunk) [Performance Forecast and Outlook](index=11&type=section&id=3.4%20Warning%20and%20Explanation%20of%20Potential%20Cumulative%20Net%20Loss%20or%20Significant%20Change%20Compared%20to%20Prior%20Year%20Period%20from%20Year-Beginning%20to%20End%20of%20Next%20Reporting%20Period) The company expects ample workload in Q2 and aims for better year-on-year operating performance through refined management and cost control - In Q1 2019, domestic exploration and development demand further increased, leading to significant year-on-year growth in workloads across the company's main business segments, achieving operating revenue of **5.91 billion yuan** and net profit of **39 million yuan**, representing substantial performance growth compared to Q1 2018[39](index=39&type=chunk) - The company expects to maintain a relatively ample workload in Q2 and will continue to enhance refined management and strengthen control over incremental variable costs resulting from increased operations[39](index=39&type=chunk) - The company will continue to strive for better year-on-year operating performance through various initiatives[39](index=39&type=chunk) [Appendix](index=12&type=section&id=Item%20IV.%20Appendix) This section includes the company's unaudited Q1 2019 financial statements and explanations of new accounting standards adjustments [Financial Statements](index=12&type=section&id=4.1%20Financial%20Statements) This section presents the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2019, detailing financial position and operating results - Financial statements include consolidated and parent company balance sheets, income statements, and cash flow statements[41](index=41&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) - All financial statements are **unaudited**[43](index=43&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) [Consolidated Balance Sheet](index=12&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2019, consolidated total assets were **75.97 billion yuan**, liabilities **41.31 billion yuan**, and shareholders' equity **34.66 billion yuan**, with current and non-current asset breakdowns Key Consolidated Balance Sheet Data (March 31, 2019) | Item | Amount (yuan) | | :--- | :--- | | Total Assets | 75,972,545,958 | | Total Current Assets | 22,543,996,873 | | Total Non-Current Assets | 53,428,549,085 | | Total Liabilities | 41,313,036,986 | | Total Current Liabilities | 17,837,772,936 | | Total Non-Current Liabilities | 23,475,264,050 | | Total Shareholders' Equity | 34,659,508,972 | [Parent Company Balance Sheet](index=13&type=section&id=Parent%20Company%20Balance%20Sheet) As of March 31, 2019, parent company total assets were **62.78 billion yuan**, liabilities **23.78 billion yuan**, and shareholders' equity **39.00 billion yuan**, with current and non-current asset breakdowns Key Parent Company Balance Sheet Data (March 31, 2019) | Item | Amount (yuan) | | :--- | :--- | | Total Assets | 62,782,654,976 | | Total Current Assets | 20,324,720,816 | | Total Non-Current Assets | 42,457,934,160 | | Total Liabilities | 23,780,550,375 | | Total Current Liabilities | 14,471,014,280 | | Total Non-Current Liabilities | 9,309,536,095 | | Total Shareholders' Equity | 39,002,104,601 | [Consolidated Income Statement](index=14&type=section&id=Consolidated%20Income%20Statement) In Q1 2019, consolidated total operating revenue was **5.91 billion yuan** (**72.3%** increase), with net profit of **38.62 million yuan** (turning profitable), and net profit attributable to parent company shareholders at **30.95 million yuan** Key Consolidated Income Statement Data (Q1 2019) | Item | Q1 2019 (yuan) | Q1 2018 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 5,907,777,887 | 3,427,873,140 | | Total Operating Cost | 5,879,059,225 | 4,361,556,179 | | Operating Profit | 161,163,573 | -637,704,224 | | Total Profit | 168,501,891 | -611,552,363 | | Net Profit | 38,618,241 | -643,988,131 | | Net Profit Attributable to Parent Company Shareholders | 30,952,844 | -651,134,585 | | Basic Earnings Per Share (yuan/share) | 0.0065 | -0.1365 | [Parent Company Income Statement](index=16&type=section&id=Parent%20Company%20Income%20Statement) In Q1 2019, parent company operating revenue was **4.55 billion yuan**, and net profit was **437.71 million yuan**, achieving substantial profitability and significantly improving from prior year losses Key Parent Company Income Statement Data (Q1 2019) | Item | Q1 2019 (yuan) | Q1 2018 (yuan) | | :--- | :--- | :--- | | Operating Revenue | 4,549,404,036 | 2,751,054,232 | | Operating Profit | 492,226,097 | -129,875,648 | | Total Profit | 499,490,135 | -104,069,501 | | Net Profit | 437,713,227 | -118,791,204 | [Consolidated Cash Flow Statement](index=16&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2019, consolidated operating cash flow was **-5.30 million yuan** (decreased outflow), investing cash flow was **155.69 million yuan** (net inflow), and financing cash flow was **320.72 million yuan** (net inflow) Key Consolidated Cash Flow Statement Data (Q1 2019) | Item | Q1 2019 (yuan) | Q1 2018 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -5,304,362 | -847,924,632 | | Net Cash Flow from Investing Activities | 155,691,790 | -3,731,502,133 | | Net Cash Flow from Financing Activities | 320,721,836 | -521,307,936 | | Net Increase in Cash and Cash Equivalents | 440,665,006 | -5,236,841,247 | [Parent Company Cash Flow Statement](index=17&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In Q1 2019, parent company operating cash flow was **80.90 million yuan** (improved outflow), investing cash flow was **622.37 million yuan** (net inflow), and financing cash flow was **-434.84 million yuan** (increased outflow) Key Parent Company Cash Flow Statement Data (Q1 2019) | Item | Q1 2019 (yuan) | Q1 2018 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 80,898,014 | -824,694,703 | | Net Cash Flow from Investing Activities | 622,372,944 | -3,338,224,684 | | Net Cash Flow from Financing Activities | -434,841,129 | -281,250,767 | | Net Increase in Cash and Cash Equivalents | 263,956,636 | -4,528,994,800 | [Explanation of New Accounting Standards Adjustments](index=18&type=section&id=4.2%20Adjustments%20to%20Relevant%20Financial%20Statement%20Items%20at%20the%20Beginning%20of%20the%20First%20Year%20of%20Initial%20Application%20of%20New%20Financial%20Instruments%2C%20New%20Revenue%20and%20New%20Leasing%20Standards) The company initially adopted new leasing standards, adjusting Q1 2019 balance sheet items, primarily impacting right-of-use assets, lease liabilities, and other related accounts - The company initially adopted new leasing standards, adjusting relevant financial statement items as of **January 1, 2019**[51](index=51&type=chunk)[53](index=53&type=chunk) - Adjustments primarily impacted right-of-use assets, lease liabilities, prepayments, inventories, notes and accounts payable, non-current liabilities due within one year, deferred tax assets/liabilities, and undistributed profits[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) [Consolidated Balance Sheet Adjustments](index=19&type=section&id=Consolidated%20Balance%20Sheet%20Adjustments) Consolidated total assets increased by **1.47 billion yuan**, liabilities by **1.48 billion yuan**, and parent company net assets decreased by **5.71 million yuan** due to new leasing standards, primarily adding right-of-use assets and lease liabilities Major Consolidated Balance Sheet Adjustments (January 1, 2019) | Item | December 31, 2018 (yuan) | January 1, 2019 (yuan) | Adjustment Amount (yuan) | | :--- | :--- | :--- | :--- | | Total Assets | 74,687,004,562 | 76,157,798,536 | 1,470,793,974 | | Right-of-Use Assets | N/A | 1,480,884,837 | 1,480,884,837 | | Total Liabilities | 40,009,598,701 | 41,486,105,110 | 1,476,506,409 | | Lease Liabilities | N/A | 1,088,795,411 | 1,088,795,411 | | Total Shareholders' Equity Attributable to Parent Company | 34,529,875,879 | 34,524,163,444 | -5,712,435 | [Parent Company Balance Sheet Adjustments](index=20&type=section&id=Parent%20Company%20Balance%20Sheet%20Adjustments) Parent company total assets increased by **1.37 billion yuan**, liabilities by **1.37 billion yuan**, and shareholders' equity increased by **2.64 million yuan** due to new leasing standards, primarily adding right-of-use assets and lease liabilities Major Parent Company Balance Sheet Adjustments (January 1, 2019) | Item | December 31, 2018 (yuan) | January 1, 2019 (yuan) | Adjustment Amount (yuan) | | :--- | :--- | :--- | :--- | | Total Assets | 61,919,540,075 | 63,294,177,265 | 1,374,637,190 | | Right-of-Use Assets | N/A | 1,383,927,715 | 1,383,927,715 | | Total Liabilities | 23,321,465,291 | 24,693,457,547 | 1,371,992,256 | | Lease Liabilities | N/A | 994,432,873 | 994,432,873 | | Total Shareholders' Equity | 38,598,074,784 | 38,600,719,718 | 2,644,934 | [Explanation of Retrospective Adjustments](index=21&type=section&id=4.3%20Explanation%20of%20Retrospective%20Adjustments%20to%20Prior%20Period%20Comparative%20Data%20Upon%20Initial%20Application%20of%20New%20Financial%20Instruments%20and%20New%20Leasing%20Standards) Initial adoption of new financial instruments and leasing standards does not involve retrospective adjustments to prior period comparative data - The initial adoption of new financial instruments and new leasing standards does **not involve retrospective adjustments** to prior period comparative data[55](index=55&type=chunk) [Audit Report](index=21&type=section&id=4.4%20Audit%20Report) This quarterly report is unaudited - This quarterly report is **unaudited**[55](index=55&type=chunk)

Financial Performance - Total revenue for 2018 was RMB 21,886.6 million, an increase from RMB 17,458.6 million in 2017, representing a growth of 25.4%[8] - Operating profit for 2018 was RMB 643.5 million, compared to RMB 706.3 million in 2017, reflecting a decrease of 8.9%[8] - Annual profit for 2018 was RMB 88.7 million, up from RMB 80.9 million in 2017, indicating a growth of 9.6%[8] - Basic earnings per share for 2018 were RMB 1.48, a significant increase of 64.4% from RMB 0.90 in 2017[8] - The net profit for 2018 was RMB 88.7 million, representing a 9.6% increase from RMB 80.9 million in 2017[10] - The group's total operating revenue for 2018 increased by RMB 4,428.1 million to RMB 21,886.6 million, representing a growth of 25.4% year-on-year[44] - The international market contributed RMB 5,661.1 million to total revenue, accounting for 25.9% of the group's operating income, an increase of 1.1 percentage points year-on-year[49] Assets and Equity - Total assets as of 2018 amounted to RMB 74,687.0 million, with total equity at RMB 34,677.4 million[7] - The total equity at the end of 2018 was RMB 34,677.4 million, remaining stable compared to RMB 34,687.5 million at the end of 2017[10] - Total assets as of December 31, 2018, were RMB 74,687.0 million, a 1.0% increase from RMB 73,941.3 million at the end of 2017[67] Debt and Capital Return - The capital return rate for 2018 was 0.3%, up from 0.2% in 2017[8] - The debt-to-equity ratio for 2018 was 49.8%, an increase from 44.9% in 2017[8] Business Segments Performance - Domestic business revenue for 2018 was RMB 16,225.5 million, while international business revenue was RMB 5,661.1 million[8] - The drilling services segment generated revenue of RMB 7,749.9 million, up 22.2% from RMB 6,340.9 million, due to increased platform utilization and operational volume[45] - The oilfield services business achieved revenue of RMB 9,792.6 million in 2018, a 40.0% increase from RMB 6,995.6 million in 2017[29] - The ship service business generated revenue of RMB 2,698.1 million in 2018, up 10.7% from RMB 2,437.8 million in 2017[32] - The geophysical exploration and engineering survey services revenue decreased by 2.3% to RMB 1,646.0 million in 2018 from RMB 1,684.3 million in 2017[37] Operational Efficiency - The number of operating days for drilling platforms increased to 11,138 days in 2018, up by 2,141 days or 23.8% compared to 8,997 days in 2017[25] - The utilization rate of available days for drilling platforms improved to 72.5% in 2018, an increase of 12.9 percentage points from 59.6% in 2017[25] - The average daily revenue for self-elevating drilling platforms decreased to $6.5 million in 2018, down 8.5% from $7.1 million in 2017[27] - The average daily revenue for semi-submersible drilling platforms also declined to $17.3 million in 2018, a decrease of 15.2% from $20.4 million in 2017[27] Market Expansion and Strategy - The company aims to expand its international market presence, particularly in the Asia-Pacific, Middle East, Americas, Europe, Africa, and Far East regions[4] - The company plans to continue its international development strategy and enhance its global market capabilities in 2019[19] - The company aims to enhance its core competitiveness through technological development and international expansion strategies[16] - The company plans to continue expanding its market presence and enhancing its technical capabilities to improve profitability[76] Sustainability and Corporate Governance - The company is committed to sustainable development, balancing economic, social, and environmental growth[3] - The company has been recognized for its sustainable development efforts, being included in the Hang Seng Sustainable Development Index for seven consecutive years[15] - The company committed to adhering to the ten principles advocated by the UN Global Compact[105] - The sustainability report for 2018 covers performance in economic, environmental, and social aspects from January 1 to December 31, 2018[105] - The company emphasizes compliance with laws and regulations, ensuring the protection of employee rights and promoting fair competition, which contributes to its sustainable development goals[131] Risk Management and Safety - The company has implemented a comprehensive risk management system, focusing on major risks and enhancing its ability to respond to potential threats, ensuring overall stability in 2018[134] - The company has developed a comprehensive QHSE management system, aligning with international standards and enhancing operational safety[187] - The safety performance statistics showed 21 safety production accidents in 2018, an increase from 9 in 2017[191] - The OSHA recordable incident rate for 2018 was 0.08, compared to 0.06 in 2017, indicating a slight increase in incidents[191] Research and Development - The company invested CNY 79.375 million in R&D, an increase from CNY 63.415 million in 2017, representing a growth of approximately 25.5%[168] - The company obtained 91 new patents in 2018, including 42 invention patents, compared to 74 patents in 2017, indicating a 22.9% increase in total patents granted[169] - The company undertook 197 R&D projects in 2018, reflecting its commitment to enhancing technology supply quality and efficiency[169] Employee and Social Responsibility - The employee turnover rate was 2.6% in 2018, slightly higher than 2.2% in 2017[119] - The company maintained a 100% social insurance coverage rate for its employees in 2018[119] - The company participated in various social welfare activities, including poverty alleviation and community support, reflecting its commitment to corporate social responsibility[127]

Financial Performance - Operating revenue for the first nine months was RMB 13,718.4 million, an increase of 16.5% compared to the same period last year[6]. - The net profit attributable to shareholders of the listed company for the reporting period was RMB -763.8 million, worsening from RMB -502.9 million year-on-year[7]. - The weighted average return on net assets decreased by 0.30 percentage points to -0.80%[7]. - The net profit for the same period was RMB -263.1 million, indicating a loss[12]. - Total revenue for Q3 2018 reached ¥5,578,352,285, an increase of 19.6% compared to ¥4,662,614,813 in Q3 2017[63]. - Net profit for Q3 2018 was ¥100,185,699, down 54.5% from ¥220,394,489 in Q3 2017[63]. - Net profit for the first nine months of 2018 was RMB 1,235,357,354, up 48.1% from RMB 834,264,406 in the same period last year[67]. - Total profit for Q3 2018 was RMB 586,360,235, an increase of 26.7% from RMB 462,633,911 in Q3 2017[67]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 73,887.3 million, a decrease of 0.1% compared to the beginning of the period[6]. - The total liabilities of the company stood at CNY 39.56 billion, compared to CNY 39.25 billion at the beginning of the year, reflecting an increase of about 0.8%[58]. - The company's equity attributable to shareholders decreased to CNY 34.19 billion from CNY 34.56 billion at the beginning of the year, a decline of approximately 1.1%[58]. - The company's cash and cash equivalents decreased to CNY 4.31 billion from CNY 9.08 billion at the beginning of the year, representing a decline of approximately 52.5%[56]. - Trade and accounts receivable increased to RMB 9,985.6 million, up RMB 3,647.4 million or 57.5% from RMB 6,338.2 million at the beginning of the year, influenced by industry conditions and customer approval processes[32]. - Inventory increased to RMB 1,543.9 million, an increase of RMB 395.4 million or 34.4% from RMB 1,148.5 million at the beginning of the year, due to increased production materials in line with operational volume[34]. - The company reported a significant increase in other current assets, rising to CNY 3.41 billion from CNY 2.18 billion, an increase of approximately 56.2%[56]. Cash Flow - Net cash flow from operating activities was RMB -758.2 million, a significant decrease from RMB 1,109.8 million in the same period last year[6]. - The net cash outflow from operating activities was RMB 758.2 million, an increase of RMB 1,868.0 million compared to the previous year, primarily due to higher cash payments for goods and services[47]. - The net cash outflow from investing activities was RMB 2,545.7 million, an increase of RMB 4,625.4 million year-on-year, mainly due to a decrease in cash recovered from investment activities[48]. - The net cash outflow from financing activities was RMB 1,714.9 million, a decrease of RMB 2,968.0 million compared to the previous year, primarily due to reduced cash payments for debt repayment[49]. - Cash flow from investment activities showed a net outflow of -2,664,583,236, compared to a net inflow of 5,032,024,472 in the previous period[73]. - The total cash outflow from financing activities was 1,139,217,693, significantly lower than the previous period's 6,236,433,259[73]. Shareholder Information - The total number of shareholders at the end of the reporting period was 66,807[10]. - The largest shareholder, China National Offshore Oil Corporation, held 50.53% of the shares[10]. Research and Development - Research and development expenses for the first nine months of 2018 amounted to RMB 396.6 million, up RMB 105.3 million or 36.1% compared to the same period last year[19]. - Research and development expenses increased to ¥161,650,867, representing a 53.9% rise from ¥105,001,094 in Q3 2017[63]. - Research and development expenses increased to RMB 391,395,456 for the first nine months, a 39.3% rise compared to RMB 281,414,210 in the previous year[67]. Market Conditions and Future Outlook - The oilfield services industry continues to face intense competition, with service prices remaining low, which poses significant challenges for the company's operations[53]. - The company anticipates a potential net loss for the year, driven by project delays and increased costs due to environmental regulations[53]. - The company plans to enhance market expansion efforts and improve equipment utilization rates to counteract cost pressures[53].

Financial Performance - The company's operating revenue for the first half of the year reached RMB 8,140.0 million, an increase of 14.4% compared to RMB 7,113.8 million in the same period last year[18]. - The net profit attributable to shareholders was a loss of RMB 375.0 million, slightly improved from a loss of RMB 385.2 million in the previous year[18]. - The net cash flow from operating activities was negative at RMB -849.3 million, a significant decline from RMB 396.9 million in the same period last year[18]. - The total assets at the end of the reporting period were RMB 72,768.1 million, down 1.6% from RMB 73,935.6 million at the beginning of the period[18]. - The company reported a basic earnings per share of RMB -0.08, unchanged from the same period last year[19]. - The weighted average return on net assets was -1.09%, a slight improvement from -1.10% in the previous year[20]. - The company’s total revenue increased by 14.4% to RMB 8,140.0 million, while operating costs rose by 20.1% to RMB 7,819.6 million[51]. Market and Operational Challenges - The company faces significant risks, including intense competition in the oilfield services market and health, safety, and environmental risks associated with offshore oilfield services[6]. - The company anticipates increased workload in Q3 2018, but faces pressure from delayed projects and rising operational costs[66]. - The oilfield service market is showing signs of recovery, with an increase in bidding activities driven by rising global oil prices and increased exploration and development spending by oil and gas companies[70]. - The company is facing exchange rate risks due to its operations in multiple countries, which may impact financial results[68]. - There is a risk of accounts receivable collection due to potential cash flow issues with certain clients, leading to extended payment cycles[68]. Strategic Initiatives - The company aims to enhance its core competitiveness and achieve its "Double 50%" strategic goals by focusing on innovation and market expansion[36]. - The company is focusing on cost reduction and efficiency improvement to enhance its international capabilities and market expansion[31]. - The company has established a risk management framework that integrates risk identification, assessment, and monitoring into daily operations, enhancing the effectiveness of risk control measures[69]. Research and Development - Research and development expenses increased by 22.3% to RMB 235.0 million, reflecting the company's commitment to enhancing oilfield technology services[52]. - The company has established a complete R&D system and has a team of experienced technical service experts to support high-end technical services[33]. Environmental Compliance - The company has established environmental monitoring systems to ensure compliance with national and local pollution discharge standards[100]. - The company has implemented zero discharge for oily wastewater in offshore operations, ensuring compliance with environmental standards[97]. - The company has prepared emergency response plans for environmental incidents in accordance with regulatory requirements[99]. Corporate Governance - The company operates under the supervision of its board of directors, with all members present at the board meeting[7]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments due to uncertainties in forward-looking statements[5]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties during the reporting period[6]. Shareholder Information - As of June 30, 2018, the total share capital of the company is 4,771,592,000 shares, with China National Offshore Oil Corporation holding 2,410,849,300 shares, accounting for approximately 50.53% of the total share capital[116]. - The largest shareholder, China National Offshore Oil Corporation, holds 2,410,849,300 shares, representing 50.53% of total shares[118]. - The total number of ordinary shareholders as of the end of the reporting period is 71,576[117]. Legal Matters - The company is involved in a significant lawsuit against Equinor regarding the termination of the COSLInnovator drilling platform contract, claiming illegal termination and seeking compensation for losses[80]. - The compensation amount claimed by the company in a separate lawsuit against Statoil for COSLPromoter is $15,238,596[80]. Financial Reporting and Compliance - The company’s financial report has been confirmed by its management to be true, accurate, and complete, with no significant omissions or misleading statements[7]. - The company has not experienced any significant accounting errors requiring restatement during the reporting period[112]. - The financial statements comply with the requirements of the enterprise accounting standards, accurately reflecting the company's financial position as of June 30, 2018, and the operating results and cash flows for the six-month period ending on that date[184].

Financial Performance - Operating revenue increased by 12.1% to RMB 3,427.9 million year-on-year[6] - Net profit attributable to shareholders was a loss of RMB 651.1 million, compared to a loss of RMB 557.2 million in the same period last year[6] - Basic earnings per share were reported at -0.14 RMB, compared to -0.12 RMB in the previous year[6] - The company reported an investment income of CNY 56,749,440, compared to CNY 53,676,309 in the previous period, an increase of 5.8%[49] - The company’s comprehensive loss for Q1 2018 was CNY 845,081,126, compared to a comprehensive loss of CNY 549,447,654 in the previous period[49] - Net loss for Q1 2018 was CNY 643,988,131, compared to a net loss of CNY 545,637,375 in the previous period, representing a decline of 17.9%[49] - Total comprehensive income for Q1 2018 was a loss of CNY 182,068,140, compared to a loss of CNY 261,525,528 in Q1 2017[51] Cash Flow and Liquidity - Cash flow from operating activities showed a net outflow of RMB 847.9 million, a decrease of 531.5% compared to the previous year[6] - As of March 31, 2018, the group's cash and cash equivalents amounted to RMB 4,653.0 million, a decrease of RMB 4,426.0 million or 48.7% from the beginning of the year[25] - Cash and cash equivalents decreased to CNY 3,578,424,707 from CNY 7,478,802,581 at the beginning of the year, a decline of 52.2%[46] - Cash flow from operating activities showed a net outflow of CNY 847,924,632, compared to a net inflow of CNY 196,527,126 in the previous year[54] - The company’s cash flow from financing activities showed a net outflow of CNY 521,307,936, compared to a net inflow of CNY 1,254,860,823 in Q1 2017[54] Assets and Liabilities - Total assets decreased by 4.2% to RMB 70,811.8 million compared to the end of the previous year[6] - Total assets as of March 31, 2018, were CNY 58,484,387,078, down from CNY 60,052,864,932 at the beginning of the year[47] - Total liabilities as of March 31, 2018, were CNY 21,446,430,192, a decrease from CNY 22,831,306,986 at the beginning of the year[47] - The group's accounts receivable notes decreased to RMB 22.2 million, down RMB 63.3 million or 74.0% compared to the beginning of the year[26] - The group's accounts payable decreased to RMB 6,314.6 million, down RMB 690.4 million or 9.9% from the beginning of the year[43] Operational Metrics - The number of operating days for drilling platforms increased to 2,275 days, a year-on-year increase of 19.4%[12] - The utilization rate for self-elevating drilling platforms rose to 64.3%, up 8.7 percentage points year-on-year[11] - The company's fleet operated for 7,319 days, an increase of 887 days, with a calendar utilization rate of 88.1%, up 6.9 percentage points year-on-year[15] - The number of operating days for oilfield service business lines increased, leading to a corresponding rise in overall revenue[14] Financial Expenses and Income - Financial expenses increased to RMB 509.5 million, a rise of 73.2% compared to RMB 294.1 million in the same period last year[17] - Asset impairment losses rose to RMB 2.0 million, a significant increase of 900.0% from RMB 0.2 million year-on-year[18] - The company reported asset disposal gains of RMB 219.8 million, compared to a loss of RMB -7.1 million in the previous year[19] - Other income increased to RMB 19.4 million, a 100.0% increase from RMB 0.0 million in the same period last year[20] Shareholder Information - The total number of shareholders reached 72,526 by the end of the reporting period[8] - The largest shareholder, CNOOC Group, holds 50.53% of the shares, totaling 2,410,849,300 shares[9] Future Outlook - The group expects better performance in Q2 2018 compared to Q1, driven by new contract operations and seasonal factors[41] - The group faces challenges in the first half of the year due to uncertainties in client budget execution and rising industry costs[41]

Financial Performance - The company achieved a net profit of RMB 71,210,798 for the year 2017, with a net profit attributable to shareholders of RMB 33,067,087[5]. - In 2017, the company's operating revenue reached RMB 17,436.4 million, an increase of 15.1% compared to RMB 15,152.2 million in 2016[24]. - The net profit attributable to shareholders was RMB 33.1 million, a significant recovery from a loss of RMB 11,456.2 million in 2016[24]. - The net cash flow from operating activities was RMB 5,474.5 million, up 99.8% from RMB 2,740.6 million in the previous year[24]. - The company's total assets decreased by 8.3% to RMB 73,857.3 million from RMB 80,544.1 million in 2016[24]. - The basic earnings per share improved to RMB 0.01 from a loss of RMB 2.40 in 2016[25]. - The weighted average return on equity increased to 0.09%, up 28.07 percentage points from -27.98% in 2016[26]. - The company's total revenue for 2017 was RMB 17,436.4 million, reflecting a year-on-year growth of 15.1%[71]. - Net profit for 2017 was RMB 71.2 million, an increase of RMB 11,530.7 million compared to the previous year[71]. Dividend and Earnings Distribution - A cash dividend of RMB 0.06 per share (including tax) is proposed, totaling RMB 286,295,520 to be distributed[5]. - The company plans to submit the profit distribution proposal to the 2017 annual general meeting for approval[6]. - The company will not extract statutory reserves for the year as the accumulated statutory reserve exceeds 50% of the registered capital[5]. - The company has a dividend policy that mandates a minimum annual payout of 20% of net profit, contingent on positive retained earnings[112]. - In 2017, the company distributed cash dividends of 0.60 RMB per share, reflecting a payout ratio of approximately 20% of net profit[114]. Operational Efficiency and Market Position - The company’s operational efficiency is indicated by the available days utilization rate and calendar days utilization rate, which are critical metrics in the offshore service industry[13]. - The company maintained a 99.77% equipment availability rate and an OSHA recordable incident rate of 0.0537, reflecting improved QHSE standards[49]. - The company aims to enhance its core competitiveness through cost management, technology commercialization, and asset optimization, while pursuing a "Double 50%" strategic goal[48]. - The company aims to accelerate international development and enhance the efficiency of its operations in response to market challenges[33]. - The company is recognized as one of the largest oilfield service providers globally, offering integrated services across the entire oil and gas exploration and production process[36]. Risks and Challenges - The company faces significant risks including market competition due to the incomplete recovery of the international oil and gas industry and health, safety, and environmental risks specific to offshore oilfield services[9]. - The company emphasizes the importance of risk awareness regarding forward-looking statements in the annual report[7]. - The company faces significant operational risks due to intense market competition and uncertainties in international oil prices, which may impact profitability[108]. - Environmental protection expenditures are expected to increase as government regulations become stricter, adding to operational costs[109]. - The company has implemented a comprehensive risk management mechanism to address market competition and environmental risks[110]. Research and Development - The total R&D investment amounted to RMB 625,194,195.90, which is 3.6% of total revenue and 1.8% of net assets[83]. - The company has successfully industrialized the 675 model "four-line" drilling measurement system, significantly improving operational efficiency[83]. - The company has accelerated the industrialization of its technology products, with significant advancements in the application of its self-developed drilling technologies[64]. - The company achieved a 100% success rate in the implementation of its self-developed major repair and salvage technology, providing significant technical support for the comprehensive management of low-yield wells[83]. - The company completed 50 well operations using the self-developed D+W drilling system, doubling the operational volume compared to the previous year[83]. International Operations and Market Expansion - The company expanded its overseas market presence, securing multiple projects in regions such as the Americas and Asia-Pacific, and received recognition as "Annual Excellent Contractor" from PEMEX[51]. - The company’s overseas assets amounted to RMB 29,851.8 million, accounting for 40.4% of total assets, with low returns due to unfavorable market conditions[38]. - The company is actively expanding its international operations, which may lead to increased exposure to geopolitical and operational risks[109]. - The company is focusing on technology-driven strategies, cost leadership, and international expansion to enhance competitiveness[106]. - The company will continue to monitor domestic and international market demands closely and expand its market presence[107]. Employee and Management Information - The total remuneration for directors, supervisors, and senior management amounted to RMB 8.9333 million[190]. - The number of employees in the parent company was 13,375, while the total number of employees including major subsidiaries was 14,274[194]. - The professional composition of employees included 3,439 in management, 5,333 in technical roles, and 5,502 in skilled operations[194]. - The educational background of employees showed 698 with master's degrees or above, 6,380 with bachelor's degrees, and 3,507 with associate degrees[194]. - The company has established a competitive compensation and benefits system, including various insurance and welfare programs for employees[195]. Legal and Compliance Matters - The company is involved in significant litigation, including a claim against Statoil for approximately USD 15.24 million related to contract termination issues[124]. - The company has a long-term commitment to maintaining quality management standards in compliance with national and international regulations[115]. - The company has not reported any changes in its controlling shareholder or actual controller during the reporting period[175]. - The company had no reported penalties from securities regulatory agencies in the past three years[193]. - The company adopted new accounting standards in 2017, which may not have a significant impact on its financial statements[116]. Environmental and Social Responsibility - The company emphasizes environmental protection and energy conservation, adhering to legal and regulatory requirements for environmental management[162]. - The company has established a recovery agreement for hazardous waste management, ensuring zero discharge of ship-generated oily wastewater[161]. - The company engaged in a targeted poverty alleviation project in Guizhou Province, investing 1.9 million RMB in 2016 and continuing support in 2017[156]. - The company provided a total of 1.367 million RMB in special assistance funds for poverty alleviation, including 502,000 RMB for 50 families of impoverished employees during the Spring Festival[164]. - The company has implemented emergency response plans for potential oil spill incidents at its Tianjin branch, which is classified as a key pollutant discharge unit[161].

Financial Performance - The company expects a net profit of approximately RMB 33 million for the year 2017[3] - After excluding non-recurring items, the company anticipates a net loss of approximately RMB 483 million[4] - In comparison, the previous year's net loss attributable to shareholders was RMB 11,456 million[5] Non-Recurring Items - Non-recurring gains, including financial product income and government subsidies, are estimated to impact net profit by around RMB 516 million[3] - Non-recurring income in 2016 was RMB 215 million, indicating a substantial increase in 2017[7] Operational Improvements - The company achieved a significant increase in operating profit due to improved equipment utilization and increased service workload in oilfield technology[7] - The company implemented cost reduction and efficiency enhancement measures, optimizing its cost structure[7] Forecast Accuracy - There are no major uncertainties affecting the accuracy of this earnings forecast[8] - The data provided is preliminary and subject to final audited financial statements[9] Announcement Details - The announcement was made by the Board of Directors on January 24, 2018[11]

Financial Performance - Operating revenue for the first nine months was RMB 11,757.3 million, an increase of 8.8% year-on-year[6] - The net profit attributable to shareholders of the listed company was RMB -146.4 million, compared to RMB -9,091.7 million in the previous year, indicating a substantial improvement[6] - The weighted average return on net assets improved to -0.42%, an increase of 21.17 percentage points from -21.59% in the previous year[6] - For the first three quarters of 2017, the group's revenue was RMB 11,757.3 million, an increase of RMB 953.2 million, or 8.8% year-on-year[12] - The group's net profit for the same period was RMB -118.6 million, a significant improvement of RMB 8,969.9 million compared to RMB -9,088.5 million in the previous year[12] - Total profit for the nine months was RMB 65.9 million, a turnaround from a loss of RMB -9,045.0 million in the previous year, reflecting improved operating performance[26] - Net profit for the period was RMB -118.6 million, a reduction in loss of RMB 8,969.9 million compared to RMB -9,088.5 million in the previous year[28] - Basic earnings per share improved to RMB -0.03, an increase of RMB 1.88 from RMB -1.91 in the previous year, reflecting reduced losses[29] Cash Flow - Net cash flow from operating activities increased significantly to RMB 1,105.0 million, up 1079.3% compared to the same period last year[6] - Cash flow from operating activities for the nine months was a net inflow of RMB 1,105.0 million, an increase of RMB 1,011.3 million year-on-year, driven by improved cash receipts from operations[44] - In Q3 2017, the net cash flow from operating activities was CNY 1,104,971,605, a significant increase compared to CNY 93,681,595 in the previous year[66] - For the first nine months of 2017, cash inflow from operating activities was CNY 8,519,967,058, an increase from CNY 7,453,747,492 year-over-year[67] Assets and Liabilities - Total assets at the end of the reporting period were RMB 73,641.4 million, a decrease of 8.6% compared to the end of the previous year[6] - The company reported a substantial reduction in liabilities, with total liabilities decreasing to CNY 39.06 billion from CNY 45.25 billion, a decline of about 13.7%[54] - The company's cash and cash equivalents decreased to CNY 5.34 billion from CNY 6.09 billion at the beginning of the year, reflecting a decline of approximately 12.5%[52] - Accounts receivable increased significantly to CNY 8.21 billion, up from CNY 4.80 billion, indicating a rise of approximately 71.5%[52] - The company reported a decrease in total equity to CNY 34.58 billion from CNY 35.30 billion, a decline of about 2.0%[54] Cost Management - The total operating cost for the first three quarters was RMB 12,041.3 million, a decrease of RMB 8,021.8 million, or 40.0% year-on-year[17] - The group focused on cost control measures, leading to significant reductions in employee compensation, material consumption, repair costs, and leasing expenses[17] - Sales expenses increased to RMB 16.8 million, up RMB 4.0 million, or 31.3% year-on-year[20] - Total operating costs decreased slightly to ¥4,503,358,597 from ¥4,523,760,478 year-over-year, indicating improved cost management[60] Shareholder Information - The total number of shareholders was 71,530 at the end of the reporting period[9] - The largest shareholder, China National Offshore Oil Corporation, held 50.53% of the shares[9] Investment and Financing Activities - The company reported a net cash flow from investment activities of CNY 5,035,494,472, compared to a negative net cash flow of CNY -1,026,400,129 in the previous year[67] - The company had a cash outflow from financing activities of CNY 6,236,433,259, which increased from CNY 4,683,215,728 in the same period last year[67] - Short-term borrowings increased to RMB 2,322.9 million, up RMB 1,629.2 million or 234.9% from RMB 693.7 million at the beginning of the year, primarily due to new borrowings[36] Operational Performance - The total operating days for drilling platforms reached 6,410 days, an increase of 331 days, or 5.4% year-on-year[14] - The available day utilization rate for self-elevating drilling platforms increased by 5.0 percentage points to 61.7%[13] - The total operating days for the group's owned fleet was 21,004 days, an increase of 3,363 days, or 19.1% year-on-year[15] - The three-dimensional data acquisition increased by 7,923 square kilometers to 23,218 square kilometers, a growth of 51.8% year-on-year[16] Other Information - The company has not reported any new product or technology developments in this quarter[6] - There are no significant mergers or acquisitions reported during this period[6] - The company aims to improve equipment utilization and operational workload in the fourth quarter of 2017 to enhance overall performance[49] - The company plans to continue its market expansion efforts and cost-cutting initiatives to achieve better operational results for the full year 2017[49] - The company received government subsidies of CNY 50,832,113 in Q3 2017, compared to CNY 3,220,000 in the same period last year[66]