Financial Performance - Total revenue for 2020 was RMB 28,925.3 million, a decrease of 6.9% compared to RMB 31,075.8 million in 2019[10] - Operating profit for 2020 was RMB 4,141.9 million, an increase of 6.3% from RMB 3,895.2 million in 2019[10] - Annual profit for 2020 was RMB 2,718.3 million, up 7.5% from RMB 2,528.0 million in 2019[10] - Basic earnings per share for 2020 were RMB 56.65, an increase of 8.0% compared to RMB 52.44 in 2019[10] - The company's total operating profit for 2020 was RMB 4,141.9 million, an increase of RMB 246.7 million or 6.3% compared to RMB 3,895.2 million in 2019[63] - The company's annual profit for 2020 was RMB 2,718.3 million, an increase of RMB 190.3 million compared to RMB 2,528.0 million in 2019[70] - The company's total operating expenses for 2020 were RMB 25,221.4 million, a reduction of RMB 2,311.3 million or 8.4% from RMB 27,532.7 million in 2019[58] - The impairment loss on property, plant, and equipment increased significantly by 499.5% to RMB 1,447.8 million in 2020[59] Assets and Liabilities - Total assets at the end of 2020 were RMB 75,942.3 million, a slight decrease of 0.2% from RMB 76,101.8 million at the end of 2019[12] - Total equity at the end of 2020 was RMB 38,688.8 million, an increase of 4.8% from RMB 36,910.3 million at the end of 2019[12] - Total liabilities decreased by RMB 1,938.0 million or 4.9% to RMB 37,253.5 million compared to RMB 39,191.5 million at the end of 2019[72] Revenue Breakdown - Domestic business revenue for 2020 was RMB 21,513.5 million, while international business revenue was RMB 7,411.8 million[10] - Domestic revenue accounted for 74.4% of total revenue, with RMB 21,513.5 million in 2020, down 11.0% from RMB 24,159.9 million in 2019[54] - International revenue increased by 7.2% to RMB 7,411.8 million, compared to RMB 6,915.9 million in the previous year[54] Operational Performance - In 2020, the company achieved significant operational performance despite challenges from the COVID-19 pandemic and low oil prices, creating substantial value returns for shareholders[13] - The drilling services segment generated revenue of RMB 11,456.8 million, representing a 5.8% increase from RMB 10,824.8 million in 2019[28] - The oilfield technical services segment generated revenue of RMB 13,304.7 million in 2020, a decrease of 11.5% compared to RMB 15,030.0 million in 2019[34] - The group’s exploration and engineering survey services revenue fell by 42.4% to RMB 1,248.6 million in 2020, compared to RMB 2,168.1 million in 2019[44] Innovation and Technology - The company was granted 84 patents in 2020, including 38 invention patents, and received 6 provincial and ministerial-level scientific and technological awards[22] - The cumulative drilling footage reached over 520,000 meters, with a breakthrough in high-speed mud transmission technology increasing transmission rates by 24 times[22] - The company emphasized innovation-driven development, focusing on core technology breakthroughs and resource matching to enhance competitiveness[14] - The company is committed to technological development, focusing on optimizing its technology system and accelerating the industrialization of independent technology products[200] Sustainability and Social Responsibility - The company is committed to sustainable development, balancing economic, social, and environmental growth[4] - The company is committed to green and low-carbon production models, entering clean energy sectors such as wind power and hydrate[131] - The company has made significant contributions to poverty alleviation efforts, aligning with national goals[156] - The company invested a total of 1.766 million yuan in 2020 for educational poverty alleviation, including restoring damaged campuses and improving teaching conditions[160] Governance and Risk Management - The company focused on enhancing its governance and internal control management, adapting to new capital market requirements and improving risk management strategies[15] - The company established a comprehensive internal control system covering 14 major areas to ensure compliance and effectiveness, with no significant deficiencies reported[95] - The risk management framework includes annual risk identification and assessment, with quarterly reports submitted to the board, ensuring a closed-loop management of significant risks[96] - The company emphasizes risk management and has implemented comprehensive risk control measures in response to the pandemic[86] Market Expansion and Strategy - The company aims to maintain a strong market share in China while actively expanding into overseas markets across Asia-Pacific, Middle East, Americas, Europe, Africa, and the Far East[4] - The company has made breakthroughs in new businesses, new markets, and new customers in its international operations[8] - The company plans to enhance service quality and strengthen production and operational capabilities in 2021, focusing on technological development and international expansion[23] - The company will actively explore overseas markets and embrace digital technology to promote the transformation and upgrading of traditional oilfield services[84] Employee and Community Engagement - The employee turnover rate for Chinese nationals decreased to 0.8% in 2020 from 1.6% in 2019[150] - The company achieved a 100% coverage rate for social insurance and labor contracts in 2020[150] - The company helped 113 local residents gain employment through its poverty alleviation workshop, with 62 being registered impoverished households, accounting for 55%[162] Cash Flow and Investments - The company's cash and cash equivalents increased to RMB 6,583.7 million, a 95.7% increase from RMB 3,363.6 million in 2019, primarily due to the issuance of long-term bonds[75] - Operating activities generated a net cash inflow of RMB 7,538.9 million, representing an 8.2% year-on-year increase, mainly driven by higher cash receipts from services and sales[76] - Investment activities resulted in a net cash outflow of RMB 3,337.2 million, an increase of RMB 2,185.5 million compared to the previous year, largely due to increased cash outflows for purchasing property, plant, and equipment[77] Corporate Governance - The board of directors held a total of six meetings during the year, ensuring compliance with legal and regulatory requirements[92] - The company has three independent directors with extensive experience in finance, law, and financial reporting, who effectively fulfilled their responsibilities during the reporting period[93] - The company conducted a review of shareholder meeting resolutions, confirming compliance with all requirements during the reporting period[97] - The company has appointed Mr. Qi Meisheng as both Chairman and CEO, which differs from the code's recommendation for separation of these roles, but the board believes this structure meets current operational needs[99]

Financial Performance - The company achieved a net profit of RMB 2,718,315,604 for the year 2020, with a net profit attributable to shareholders of RMB 2,703,186,710[4]. - The company's operating revenue for 2020 was RMB 28,959.2 million, a decrease of 7.0% compared to RMB 31,135.1 million in 2019[20]. - The net profit attributable to shareholders for 2020 was RMB 2,703.2 million, representing an increase of 8.0% from RMB 2,502.2 million in 2019[20]. - The net cash flow from operating activities for 2020 was RMB 7,545.2 million, an increase of 8.3% compared to RMB 6,968.3 million in 2019[20]. - The company's total assets at the end of 2020 were RMB 75,942.3 million, a slight decrease of 0.2% from RMB 76,101.8 million at the end of 2019[20]. - The basic earnings per share for 2020 was RMB 0.57, an increase of 9.62% from RMB 0.52 in 2019[21]. - The weighted average return on equity for 2020 was 7.20%, an increase of 0.17 percentage points from 7.03% in 2019[21]. - The company reported a total of RMB 391.1 million in non-recurring gains and losses for 2020, compared to RMB 355.4 million in 2019[25]. - The company’s total revenue for 2020 was RMB 28,959.2 million, reflecting a year-on-year decrease of 7.0%[58]. - Net profit for 2020 was RMB 2,718.3 million, an increase of RMB 190.3 million compared to the previous year[58]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.17 per share, totaling RMB 811,170,640, based on a total share capital of 4,771,592,000 shares[4]. - In 2020, the company distributed a cash dividend of 1.70 RMB per 10 shares, amounting to 811.17 million RMB, which represents 30.01% of the net profit attributable to ordinary shareholders[90]. - The company is committed to maintaining a minimum annual dividend payout of 20% of its net profit, subject to board approval[89]. Risk Management - Major risks include market competition risks due to the incomplete recovery of the international oil and gas industry and health, safety, and environmental risks specific to offshore oilfield services[7]. - The company has implemented a risk emergency mechanism to enhance its risk resistance capabilities and improve governance efficiency[35]. - The company is focusing on risk management, including market competition, health and safety, and foreign exchange risks[85][86]. - The company has established a comprehensive risk management system to identify and respond to potential risks in its operations[87]. Operational Highlights - The company operates in various sectors including drilling services, oilfield technical services, and marine services, with a presence in regions such as Asia-Pacific, the Middle East, and Europe[27]. - The company has over 50 years of offshore operation experience and a complete service chain, enhancing its competitive edge in the oilfield services sector[31]. - The company aims to accelerate the transition to green and low-carbon equipment, responding to the dual challenges of the pandemic and low oil prices[34]. - The company has established a mature global service network and maintained stable relationships with major international and national oil companies, effectively expanding its international market presence[32]. Research and Development - The company obtained 84 authorized patents in 2020, including 38 invention patents[41]. - The company has implemented cost control measures, resulting in a gross margin increase despite a challenging market environment[62]. - Research and development expenses totaled RMB 1,311.8 million, accounting for 4.5% of total revenue, with 1,689 R&D personnel, representing 11.6% of the total workforce[67]. - The company achieved breakthroughs in several core technologies, including a self-developed rotary steering drilling and measurement system with a cumulative drilling footage exceeding 520,000 meters[69]. Corporate Governance - The company has maintained a long-term commitment to quality management in compliance with national regulations since its initial public offering[92]. - The company has not experienced any significant changes in accounting estimates during the reporting period[93]. - The company has engaged Deloitte as its domestic and overseas auditor for the 2020 fiscal year, with an audit period of 7 years[95]. - The company has established a comprehensive internal control system covering 14 major areas to ensure compliance and effectiveness, with no significant deficiencies reported in 2020[169]. Sustainability Initiatives - The company was recognized in multiple sustainability indices and awarded the "2020 China Top 100 Enterprises Award," reflecting its commitment to sustainable development[37]. - The company has implemented a Green Development Action Plan, focusing on low-carbon development and environmental protection measures[121]. - The company aims to achieve a 15% reduction in carbon emissions by 2025 as part of its sustainability strategy[142]. Market Outlook - For 2021, global upstream exploration and development investment is projected to increase to $320.5 billion, a 6.11% rise from 2020[77]. - The average Brent oil price is forecasted to exceed 50 USD per barrel, indicating a cautious investment climate in the upstream sector[84]. - The global economic growth rate is projected at 5.5% for 2021, with China's growth rate at 8.1%[84]. Employee and Community Engagement - The company recruited 337 individuals, including 92 graduates from impoverished areas, as part of its employment poverty alleviation initiative[119]. - A total of 203.1 million was allocated for internal employee assistance programs during the pandemic[119]. - The company donated 56,500 in cash and materials during the peak of the pandemic[119]. Shareholder Information - The total number of ordinary shares as of December 31, 2020, is 4,771,592,000, with China National Offshore Oil Corporation holding 2,410,849,300 shares, accounting for 50.53% of the total[124]. - The number of ordinary shareholders increased from 58,485 to 65,072 during the reporting period[128]. - The controlling shareholder is China National Offshore Oil Corporation, which holds 90% of the shares, while the National Social Security Fund holds 10%[134].

[Important Notice](index=3&type=section&id=Item%20I.%20Important%20Notice) The company's management ensures the report's authenticity and completeness, noting the report is unaudited [Statement on Report Authenticity and Audit Status](index=3&type=section&id=Item%201.1-1.4) The company's management guarantees the report's truthfulness and completeness, noting it is unaudited and the chairman was absent from the board meeting - The company's Board of Directors, Supervisory Committee, and senior management ensure the report's content is true, accurate, and complete[4](index=4&type=chunk) - This company's third-quarter report is unaudited[4](index=4&type=chunk) [Company Profile and Operating Performance](index=3&type=section&id=Item%20II.%20Company%20Profile) The company's financial performance in the first three quarters of 2020 remained stable despite challenges, with slight revenue and net profit growth and significant changes in cash flow [Key Financial Data](index=3&type=section&id=Item%202.1%20Key%20Financial%20Data) As of Q3 2020, the company reported slight revenue and net profit growth, a negative operating cash flow due to extended payment cycles, and significant non-recurring gains Key Financial Data for Q1-Q3 2020 (Consolidated Statements) | Indicator | Q1-Q3 2020 | Q1-Q3 2019 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB million) | 21,449.8 | 21,334.8 | 0.5% | | Net Profit Attributable to Shareholders of Listed Company (RMB million) | 2,154.6 | 2,118.8 | 1.7% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) (RMB million) | 1,891.8 | 1,889.6 | 0.1% | | Net Cash Flow from Operating Activities (RMB million) | -734.2 | 1,133.7 | -164.8% | | Basic Earnings Per Share (RMB/share) | 0.45 | 0.44 | 2.3% | | Weighted Average Return on Net Assets | 5.8% | 6.0% | Decrease of 0.2 percentage points | - In the first three quarters of 2020, total non-recurring gains amounted to **RMB 263 million**, primarily comprising government subsidies, wealth management product income, and other non-operating income and expenses[7](index=7&type=chunk) [Shareholder Information](index=4&type=section&id=Item%202.2%20Shareholder%20Information) As of the reporting period, the company had 72,939 shareholders, with China National Offshore Oil Corporation as the controlling shareholder, indicating a highly concentrated equity structure Top Two Shareholders' Holdings | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | China National Offshore Oil Corporation | 2,410,849,300 | 50.53 | | Hong Kong Securities Clearing Company Nominees Limited | 1,808,819,958 | 37.91 | - As of the end of the reporting period, the company had a total of **72,939 shareholders**[8](index=8&type=chunk) [Operating Performance Review](index=6&type=section&id=Item%202.4%20Operating%20Performance%20Review) Despite challenges from the pandemic and low oil prices, the company maintained stable performance in the first three quarters, with increased drilling days but decreased utilization rates for some services - Despite the dual impact of the pandemic and low oil prices, the company achieved **RMB 21.45 billion** in operating revenue and **RMB 2.167 billion** in net profit for the first three quarters, largely consistent with the prior year, through cost reduction and efficiency improvements[12](index=12&type=chunk) Overview of Operating Data by Business Segment (Nine Months Ended September 30, 2020) | Business Segment | Indicator | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Drilling Services** | Total Operating Days | 11,088 | 10,662 | +4.0% | | | Jack-up Rig Calendar Day Utilization Rate | 75.7% | 83.7% | -8.0 percentage points | | | Semi-submersible Rig Calendar Day Utilization Rate | 64.8% | 73.5% | -8.7 percentage points | | **Vessel Services** | Own Fleet Operating Days | 22,863 | 23,156 | -1.3% | | | Own Fleet Calendar Day Utilization Rate | 95.2% | 94.2% | +1.0 percentage points | | **Geophysical Survey Services** | 2D Acquisition (km) | 9,652 | 25,701 | -62.4% | | | 3D Acquisition (sq km) | 14,844 | 26,319 | -43.6% | [Significant Events](index=8&type=section&id=Item%20III.%20Significant%20Events) This section details significant changes in financial statement items, progress on major litigation, and the company's cautious outlook for the full year [Analysis of Significant Changes in Financial Statement Items](index=8&type=section&id=Item%203.1%20Analysis%20of%20Significant%20Changes%20in%20Financial%20Statement%20Items%20and%20Reasons) Several financial statement items experienced significant changes, including a substantial increase in monetary funds due to bond issuance and a shift to negative operating cash flow primarily from extended customer payment cycles - Asset impairment losses amounted to **RMB 869 million**, a significant year-on-year increase of **RMB 859 million**, primarily due to the **RMB 844 million** impairment provision for fixed assets in the current period[19](index=19&type=chunk) - Monetary funds increased by **76.8%** from the beginning of the year to **RMB 6.127 billion**, mainly due to the issuance of **USD 800 million** in bonds during the period[23](index=23&type=chunk) - Accounts receivable increased by **47.2%** from the beginning of the year to **RMB 15.167 billion**, primarily due to extended customer payment cycles affected by the pandemic and oil price fluctuations[26](index=26&type=chunk) - Net cash flow from operating activities was **-RMB 734 million**, compared to a net inflow of **RMB 1.134 billion** in the prior year, primarily due to a year-on-year increase of **RMB 2.917 billion** in cash paid for goods and services, despite receiving **RMB 1.31 billion** in contract termination settlement funds[38](index=38&type=chunk) [Progress of Significant Litigation](index=12&type=section&id=Item%203.2%20Progress%20of%20Significant%20Events%20Their%20Impact%20and%20Analysis%20of%20Solutions) The company reached an out-of-court settlement with Equinor Energy AS regarding a drilling rig contract dispute, receiving USD 188 million in settlement funds and making related impairment provisions - The company reached an out-of-court settlement with Equinor regarding a drilling rig contract dispute, receiving **USD 188 million** in settlement funds[42](index=42&type=chunk) - The settlement funds were received in the first quarter of 2020, and the company has performed impairment tests and made impairment provisions for related fixed assets[42](index=42&type=chunk) [Performance Outlook](index=13&type=section&id=Item%203.4%20Warning%20and%20Explanation%20of%20Potential%20Loss%20or%20Significant%20Change%20in%20Cumulative%20Net%20Profit%20from%20Year-Beginning%20to%20End%20of%20Next%20Reporting%20Period) The company maintains a cautiously optimistic outlook for the full year, aiming for stable operating performance despite uncertainties, supported by domestic initiatives and internal efficiency measures - The company states that its performance in the first three quarters remained stable, benefiting from the implementation of the domestic 'Seven-Year Action Plan' and the company's efforts in cost reduction and efficiency improvement[43](index=43&type=chunk) - The company will continue to implement various measures to address macroeconomic uncertainties and industry challenges, focusing on safe operations and cost control to ensure stable annual operations[43](index=43&type=chunk) [Financial Statements Appendix](index=14&type=section&id=Item%20IV.%20Appendix) This appendix provides the company's unaudited consolidated and parent company financial statements for the third quarter of 2020 [Financial Statements](index=14&type=section&id=Item%204.1%20Financial%20Statements) This appendix contains the company's unaudited consolidated and parent company financial statements for the third quarter of 2020 [Consolidated Balance Sheet](index=14&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2020, the company's total assets increased by 1.5% to RMB 77.27 billion, while total liabilities remained stable and equity attributable to parent company shareholders grew by 3.6% Key Items from Consolidated Balance Sheet (Unit: RMB billion) | Item | Sept 30, 2020 | Dec 31, 2019 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **77.27** | **76.102** | **+1.5%** | | Current Assets | 26.03 | 23.03 | +13.0% | | Non-current Assets | 51.24 | 53.072 | -3.5% | | **Total Liabilities** | **39.032** | **39.192** | **-0.4%** | | Current Liabilities | 14.834 | 19.829 | -25.2% | | Non-current Liabilities | 24.198 | 19.363 | +25.0% | | **Equity Attributable to Parent Company Shareholders** | **38.054** | **36.734** | **+3.6%** | [Consolidated Income Statement](index=17&type=section&id=Consolidated%20Income%20Statement) For the first three quarters of 2020, operating revenue increased by 0.5% to RMB 21.45 billion, while operating profit decreased by 11.6% due to a significant rise in asset impairment losses, resulting in a 1.7% increase in net profit attributable to parent company shareholders Key Items from Consolidated Income Statement (Unit: RMB billion) | Item | Q1-Q3 2020 | Q1-Q3 2019 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 21.45 | 21.335 | +0.5% | | Total Operating Costs | 18.514 | 18.979 | -2.5% | | Asset Impairment Losses | -8.69 | -0.11 | -7800% | | Operating Profit | 2.521 | 2.853 | -11.6% | | Total Profit | 2.645 | 2.807 | -5.8% | | Net Profit Attributable to Parent Company Shareholders | 2.155 | 2.119 | +1.7% | | Basic Earnings Per Share (RMB) | 0.45 | 0.44 | +2.3% | [Consolidated Cash Flow Statement](index=20&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2020, net cash flow from operating activities turned negative due to increased procurement, while investment cash flow decreased and financing cash flow significantly improved due to bond issuance Key Items from Consolidated Cash Flow Statement (Unit: RMB billion) | Item | Q1-Q3 2020 | Q1-Q3 2019 | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -0.734 | 1.134 | -164.8% | | Net Cash Flow from Investing Activities | 3.878 | 4.739 | -18.2% | | Net Cash Flow from Financing Activities | -0.311 | -3.303 | +90.6% | | Net Increase in Cash and Cash Equivalents | 2.731 | 2.609 | +4.7% |

Financial Performance - In the first half of 2020, the company achieved operating revenue of RMB 14.497 billion, an increase of RMB 0.94 billion or 7% year-on-year[6]. - The net profit for the same period was RMB 1.723 billion, up RMB 0.74 billion or 75% year-on-year[6]. - The company's operating revenue for the first half of 2020 was RMB 14,496.7 million, an increase of RMB 944.6 million year-on-year[14]. - The net profit for the first half of 2020 was RMB 1,722.6 million, an increase of RMB 736.2 million year-on-year[14]. - The operating profit for the first half of 2020 was RMB 2,222.0 million, an increase of RMB 620.9 million compared to the operating profit of RMB 1,601.1 million in the same period last year[33]. - The basic earnings per share for the first half of 2020 were RMB 35.93, compared to RMB 20.39 in the same period last year, reflecting a growth of 76.3%[41]. - The total comprehensive income for the period was RMB 1,754,675 thousand, compared to RMB 939,943 thousand in the same period last year, reflecting an increase of 86.7%[81]. - The company's profit before tax for the six months ended June 30, 2020, was RMB 2,090,688,000, compared to RMB 1,382,122,000 for the same period in 2019, representing a year-on-year increase of 51.2%[126]. Revenue Segmentation - The drilling services revenue for the first half of 2020 was RMB 6,171.0 million, a 37.5% increase from RMB 4,489.2 million in the same period last year[15]. - The oilfield technical services revenue decreased by 8.7% to RMB 6,050.4 million from RMB 6,624.2 million year-on-year[19]. - The company's vessel services revenue increased by 6.5% to RMB 1,534.3 million, with external chartered vessels contributing RMB 541.3 million[21]. - Revenue from drilling services was RMB 6,173,943 thousand, while oilfield technical services generated RMB 6,059,880 thousand, indicating a strong performance in both segments[107]. - Revenue from the China National Offshore Oil Corporation (CNOOC) group for drilling services was RMB 3,029,551 thousand, oilfield technical services RMB 5,466,345 thousand, and vessel services RMB 1,407,964 thousand for the six months ended June 30, 2020[156]. Cost Management and Expenses - The company has implemented significant cost reduction measures, maximizing the reduction of external drilling platform and vessel leasing costs[9]. - The company's total operating expenses for the first half of 2020 were RMB 12,452.1 million, an increase of RMB 470.2 million or 3.9% compared to the same period last year[28]. - The company's rental expenses increased by RMB 94.2 million year-on-year, reflecting a growth of 16.9%[29]. - The total operating expenses in the geophysical acquisition and engineering survey services segment were RMB 841.9 million, a decrease of 14.6% year-on-year[32]. Technology and Innovation - The company has made notable advancements in technology, including successful trials of a high-temperature ESCOOL system and underwater release plug system[8]. - The company achieved significant technological advancements, including successful trials of various new drilling and cementing technologies[20]. - The company launched several key technology applications, including the successful trial of a 235℃ ultra-high temperature ESCOOL system and the first domestic underwater release plug system for deep-water cementing[196]. Market Expansion and International Operations - The company has expanded its market presence, securing new projects in the Asia-Pacific, Middle East, and Americas regions[7]. - The company successfully launched four drilling platforms in Asia and secured a 600-day contract in the Americas[15]. - The company is actively involved in international operations, with subsidiaries in regions such as Indonesia, Australia, and Mexico, enhancing its market presence[88]. Financial Position and Assets - Total assets as of June 30, 2020, were RMB 81,427.3 million, an increase of RMB 5,325.5 million or 7.0% from RMB 76,101.8 million at the end of 2019[42]. - Total liabilities increased by RMB 4,334.3 million or 11.1%, from RMB 39,191.5 million at the end of 2019 to RMB 43,525.8 million[42]. - Cash and cash equivalents increased significantly by 180.0% to RMB 9,417.1 million from RMB 3,363.6 million at the beginning of the year[43]. - The company's net current assets increased to RMB 10.55 billion from RMB 3.20 billion as of December 31, 2019, with the current ratio rising from 1.16 to 1.57[67]. Debt and Financing - The company successfully issued USD 800 million senior bonds, achieving the lowest comprehensive cost in its history and the highest oversubscription rate[9]. - The company issued $500 million 1.875% guaranteed senior notes due in 2025 and $300 million 2.500% guaranteed senior notes due in 2030 on June 24, 2020[74]. - The company reported a significant impairment loss of RMB 843.8 million on property, plant, and equipment, attributed to the settlement with Equinor and projected future cash flows[31]. - The company has seen a decrease in interest-bearing bank loans from RMB 809.96 million to RMB 515.21 million from December 31, 2019, to June 30, 2020[68]. Safety and Compliance - The OSHA recordable incident rate for safety performance was reported at 0.094, indicating a stable safety production situation[10]. - The QHSE management system was further strengthened, with an OSHA recordable incident rate of 0.094, indicating stable safety production conditions[198]. Future Outlook - The outlook for the second half of 2020 indicates a slow recovery in the industry, with the IMF predicting a global economic contraction of 4.9%[53]. - The company plans to continue focusing on market expansion and new technology development to drive future growth[84]. - The company aims to enhance its international operational management capabilities and continue to focus on technological development and internationalization strategies[11].

Financial Performance - Total revenue for the year was RMB 31,075.8 million[9] - Operating profit amounted to RMB 3,895.2 million[9] - Annual profit reached RMB 2,528.0 million[9] - Basic earnings per share were RMB 52.44[9] - Total operating revenue for 2019 reached RMB 31,075.8 million, a 42.0% increase from RMB 21,886.6 million in 2018[10] - Operating profit surged to RMB 3,895.2 million, reflecting a 505.3% increase compared to RMB 643.5 million in the previous year[10] - Annual profit for 2019 was RMB 2,528.0 million, a significant rise of 2,750.1% from RMB 88.7 million in 2018[10] - Basic earnings per share reached RMB 52.44, up 3,443.2% from RMB 1.48 in 2018[10] - The company maintained a capital return rate of 7.1% and an asset return rate of 3.4% for 2019, compared to 0.3% and 0.1% respectively in 2018[10] - The total operating expenses for the company in 2019 were RMB 27,532.7 million, an increase of 27.9% from RMB 21,527.2 million in 2018[52] - The total operating expenses for the year increased by RMB 6,005.5 million, representing a 27.9% year-on-year growth, reaching RMB 27,532.7 million[54] - The group’s operating profit for the year was RMB 3,895.2 million, up RMB 3,251.7 million or 505.3% from RMB 643.5 million in the previous year[58] - The annual profit for the group reached RMB 2,528.0 million, a substantial increase of RMB 2,439.3 million from RMB 88.7 million in the previous year[66] Assets and Equity - Total assets stood at RMB 76,101.8 million[9] - Total equity was RMB 36,910.3 million[9] - Total assets increased to RMB 76,101.8 million, a growth of 1.9% from RMB 74,687.0 million in 2018[68] - Total liabilities decreased to RMB 39,191.5 million, down 2.0% from RMB 40,009.6 million in 2018[68] - Total equity rose to RMB 36,910.3 million, reflecting a 6.4% increase from RMB 34,677.4 million in 2018[68] Revenue Growth - Domestic business revenue grew by 48.9% to RMB 24,159.9 million, while international business revenue increased by 22.2% to RMB 6,915.9 million[10] - The oilfield technical services segment achieved a revenue of RMB 15,030 million in 2019, representing a 53.5% increase from RMB 9,792.6 million in 2018[28] - The drilling services segment saw a revenue increase of 39.7%, reaching RMB 10,824.8 million in 2019, up from RMB 7,749.9 million in 2018[44] - The company reported a 48.9% increase in domestic revenue, amounting to RMB 24,159.9 million in 2019, up from RMB 16,225.5 million in 2018[47] - The international revenue for the company was RMB 6,915.9 million in 2019, reflecting a 22.2% increase from RMB 5,661.1 million in 2018[47] International Expansion - The company is actively expanding its international business in regions such as Asia-Pacific, Middle East, Americas, Europe, Africa, and Far East[5] - The company has enhanced its international operational management capabilities and strengthened its market expansion efforts, particularly in the Asia-Pacific and Middle East regions[18] - The company successfully promoted a series of proprietary technologies, including the BIODRILL A biodegradable drilling fluid system, contributing to green development in offshore oil fields[19] - The company has made significant breakthroughs in various regions, securing contracts for multiple drilling services and expanding its service offerings[18] - The company operates in over 40 countries and regions, providing integrated oilfield services across six major regions: Asia-Pacific, Middle East, Americas, Europe, Africa, and Far East[113] Technological Innovation - The company aims to leverage technological innovation as a core driver for high-quality global business development in the oilfield services market[15] - The company plans to accelerate the development of key core technologies and enhance its global operational management capabilities in 2020[15] - The company invested CNY 1.073 billion in technology research and development, an increase of 35.3% from CNY 793.75 million in 2018[177] - The company obtained 97 new patents in 2019, including 38 invention patents, marking a 6.6% increase from 91 patents in 2018[179] - The company conducted 172 internal control management training sessions in 2019, with 2,725 participants, reflecting a 8.5% increase in participants from 2018[152] Risk Management and Compliance - The company established a comprehensive risk management framework, conducting annual and quarterly risk assessments to identify and manage significant risks[88] - The internal control system was evaluated as effective, with no significant deficiencies identified in design or execution[87] - The company has strengthened its compliance system, ensuring adherence to laws and regulations, including labor and environmental laws[145] - The company has established a long-term mechanism for risk prevention, conducting special inspections to identify major operational risks[149] - The company has implemented a global management system aligned with international standards, enhancing its internal control capabilities[147] Employee Welfare and Training - The employee turnover rate decreased to 1.6% in 2019 from 2.6% in 2018, reflecting improved employee retention[131] - The company achieved a 100% coverage rate for social insurance and labor contract signing rate in 2019, ensuring employee welfare[131] - The company has enhanced employee welfare and training programs, promoting a diverse and safe work environment[145] - In 2019, the company conducted 409 anti-fraud training sessions, with a total of 16,141 participants, including over 310 from key sensitive positions[159] Environmental and Sustainable Development - The company received multiple awards for sustainable development, including recognition as an "Outstanding Sustainable Development Enterprise" by Sina Finance in 2019[14] - The company plans to prioritize the development of green and low-carbon technologies to strengthen its core competitiveness[78] - The company is committed to environmental protection and occupational health, emphasizing safety production as part of its operational strategy[199] - The company has been recognized for its corporate governance, being included in the Hang Seng Sustainable Development Index for eight consecutive years[81] Corporate Governance - The board of directors confirmed compliance with securities trading standards throughout 2019, ensuring adherence to regulatory requirements[82] - The company has three independent directors with extensive experience in finance, law, and financial reporting, who effectively fulfilled their responsibilities during the reporting period[85] - The board of directors has implemented a diversity policy to enhance governance and attract a wide range of talents[86] - The company’s governance functions are regularly reviewed to ensure compliance with corporate governance codes[90]

Financial Performance - The company achieved a net profit of RMB 2,528,015,269 for the year 2019, with a net profit attributable to shareholders of RMB 2,502,238,023[5]. - The total undistributed profits available for distribution at the end of 2019 amounted to RMB 17,196,349,188, after distributing RMB 763,454,720 in cash dividends[5]. - The company plans to distribute a cash dividend of RMB 0.16 per share based on a total share capital of 4,771,592,000 shares[5]. - The company's operating revenue for 2019 was RMB 31,135.1 million, representing a 41.9% increase compared to RMB 21,945.9 million in 2018[22]. - The net profit attributable to shareholders for 2019 was RMB 2,502.2 million, a significant increase of 3,434.2% from RMB 70.8 million in 2018[22]. - The net cash flow from operating activities reached RMB 6,968.3 million, up 67.0% from RMB 4,172.4 million in the previous year[22]. - The basic earnings per share for 2019 was RMB 0.52, a substantial increase of 5,100.0% compared to RMB 0.01 in 2018[23]. - The weighted average return on equity for 2019 was 7.03%, an increase of 6.82 percentage points from 0.21% in 2018[24]. - The gross profit margin for the company improved by 7.9 percentage points, driven by high-quality development and effective risk management[67]. - Domestic revenue accounted for 77.8% of total revenue, with a year-on-year increase of 48.7%[67]. - International revenue rose to RMB 6,915.9 million, a 22.2% increase from RMB 5,661.1 million in 2018, representing 22.2% of total revenue[67]. Operational Highlights - The company operates in the oil and gas exploration and production sector, providing services across drilling, oilfield technology, marine services, and geophysical exploration[30]. - The drilling services business achieved revenue of RMB 10,841.6 million in 2019, a 39.6% increase from RMB 7,765.6 million in 2018[49]. - The oilfield technical services segment reported revenue of RMB 15,060.9 million, up 53.3% from RMB 9,822.3 million in 2018[54]. - The geophysical exploration and engineering survey services segment reported revenue of RMB 2,173.3 million, a 31.6% increase from RMB 1,651.5 million in 2018[59]. - The number of operating days for drilling platforms increased by 3,599 days to 14,737 days in 2019, representing a growth of 32.3%[51]. - The average daily revenue for self-elevating drilling platforms rose to USD 6.9 in 2019, a 6.2% increase from USD 6.5 in 2018[54]. - The fleet of owned vessels achieved a calendar day utilization rate of 94.3%, an increase of 4.1 percentage points year-on-year[57]. - The number of operating days for the owned fleet increased by 737 days to 30,986 days in 2019, a growth of 2.4%[57]. Strategic Focus and Development - The company maintained a focus on "technology development and internationalization," aiming for high-quality growth and improved profitability[41]. - The company plans to continue its strategic focus on technology and international development in 2020, adapting to macroeconomic and industry changes[48]. - The company has established a mature global service network and long-term relationships with major international and national oil companies, supporting its international operations[36]. - The company has a complete research and development system, with a team of experienced technical service experts, enabling it to provide high-end technical services[36]. - The company emphasized innovation, with significant advancements in proprietary technologies, including high-temperature logging and biodegradable drilling fluids, enhancing operational efficiency[47]. Risk Management - Major risks include market competition risks due to the incomplete recovery of the international oil and gas industry and health, safety, and environmental risks specific to the offshore oilfield service industry[8]. - The company has established a risk management organization to enhance risk identification and mitigation capabilities, focusing on high-quality development[104]. - The company has not reported any significant operating risks that have not been addressed through its risk management strategies[104]. Corporate Governance - The company has a long-term commitment to avoid any new competition with its parent company, ensuring no conflicts arise[107]. - The company has a significant presence in oil and gas exploration, production, and sales, as well as refining and chemical processing[160]. - The company continues to maintain a strong governance structure with independent directors actively involved in oversight[168]. - The board of directors confirmed compliance with the standards set forth in the Listing Rules Appendix 10 for the 12 months ending December 31, 2019[190]. - The chairman and CEO roles are clearly separated, with Qi Meisheng as chairman and Cao Shujie as CEO[200]. Social Responsibility - The company actively participated in poverty alleviation efforts, helping 80 households and 197 individuals escape poverty in 2019, achieving a poverty alleviation rate of 98.01%[147]. - The total amount spent on consumption poverty alleviation reached 3.1752 million yuan, supporting the income increase of impoverished communities[147]. - The company provided employment opportunities for 799 individuals from 87 impoverished counties, significantly improving their quality of life[148]. Future Outlook - The company anticipates capital expenditures of approximately RMB 4.8 billion in 2020, primarily for production base construction and equipment upgrades[97]. - The oilfield service market is expected to remain competitive in 2020, with a focus on cost control and operational efficiency improvements[96]. - The company aims to transition from a heavy asset model to a technology-driven approach, enhancing core competitiveness through green technology innovation[97]. - The company plans to pursue international development and enhance its global operational capabilities through both organic and inorganic growth strategies[95].