Financial Performance - The company's operating revenue for the first half of 2022 was CNY 4,560,089,970.30, representing a 24.28% increase compared to CNY 3,669,060,721.94 in the same period last year[12]. - The net profit attributable to shareholders of the listed company was CNY 982,791,987.05, up 28.79% from CNY 763,071,025.47 year-on-year[12]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 925,897,019.50, an increase of 26.16% compared to CNY 733,904,627.83 in the previous year[12]. - Basic earnings per share rose to CNY 1.03, reflecting a 28.75% increase from CNY 0.80 in the previous year[12]. - The company reported a total comprehensive income for the first half of 2022 reached approximately ¥1.16 billion, compared to ¥784.44 million in the first half of 2021, indicating a significant increase of 48.2%[140]. Cash Flow and Liquidity - The net cash flow from operating activities improved significantly to -CNY 18,931,576.45, a 93.91% increase from -CNY 310,889,026.41 in the same period last year[12]. - The total cash inflow from operating activities for the first half of 2022 was CNY 4,586,360,028.52, an increase of 36.0% compared to CNY 3,369,158,264.54 in the first half of 2021[145]. - The cash inflow from financing activities reached CNY 4,036,695,424.47, compared to CNY 766,454,094.96 in the first half of 2021, leading to a net cash flow from financing activities of CNY 3,001,036,493.83[146]. - The company reported a net increase in cash and cash equivalents of 2.02 billion yuan, a 543.99% increase compared to the previous year[26]. - Cash and cash equivalents at the end of the reporting period amounted to ¥5,313,787,536.84, representing 20.37% of total assets, an increase of 4.64% compared to the previous year[31]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 26,086,060,472.45, a 33.58% increase from CNY 19,528,552,642.17 at the end of the previous year[12]. - The total liabilities amounted to CNY 9.18 billion, compared to CNY 6.71 billion at the beginning of the year, which is an increase of approximately 36.8%[136]. - The company's equity attributable to shareholders reached CNY 16.09 billion, up from CNY 12.47 billion, representing a growth of around 29.5%[136]. - The total assets of the company at the end of the reporting period amounted to CNY 12,009,510,874.09, reflecting a solid asset base for future operations[157]. Research and Development - Research and development expenses amounted to 134 million yuan, a 7.80% increase compared to the previous year[26]. - Research and development expenses for the first half of 2022 were CNY 134,240,553.85, an increase from CNY 124,523,608.22, reflecting a growth of 7.0%[139]. - The company has a total of 1,296 authorized patents, including 135 invention patents, as of June 2022[22]. - The company added 341 new authorized patents during the reporting period, including 15 invention patents[22]. Market Position and Strategy - The company is positioned as a leading provider of oil and gas field equipment and technical engineering services[19]. - The company aims to provide integrated solutions for oil and gas development, enhancing its competitive edge through technology innovation[22]. - The company anticipates continued growth in the oilfield service market, driven by the increasing demand for natural gas and the transition to cleaner energy sources[17][18]. - The company is actively exploring non-oil and gas business opportunities to mitigate risks associated with the oil and gas sector[51]. Risks and Challenges - The company faces various risks, including declining oil and gas prices, intensified market competition, and potential impacts from the ongoing COVID-19 pandemic[2]. - The company is facing increased market competition risks in the oil and gas exploration and lithium battery anode material sectors due to the removal of restrictions on joint ventures and the entry of new market players[52]. - The ongoing COVID-19 pandemic may impact the company's supply chain and overall performance, particularly in regions severely affected by the virus[56]. - The Russia-Ukraine conflict introduces uncertainties for the company's operations in Russia, potentially affecting business performance if sanctions are intensified[58]. Shareholder and Equity Information - The company has no plans to distribute cash dividends or issue bonus shares for the half-year period[62]. - The employee stock ownership plan includes 225 employees holding a total of 774,100 shares, representing 0.08% of the company's total share capital[63]. - The company issued 69,098,949 new shares in a private placement, increasing the total share capital to 957,853,992 shares[65]. - Major shareholder Sun Weijie holds 20.38% of shares, totaling 195,202,733[124]. Environmental Compliance - The company has implemented pollution prevention facilities that have passed environmental assessments and are currently operating normally[75]. - The company is classified as a key pollutant discharge unit by environmental protection authorities[74]. - The project for the construction of pollution prevention measures was completed in 2019 and passed environmental acceptance in September 2019, officially entering commercial operation in September 2020[77]. - The company has established emergency response plans for environmental incidents, with documentation filed with local environmental authorities[81]. Financial Management and Investments - The company raised a total of RMB 2,499,999,974.82 through a private placement of 69,098,949 shares at a price of RMB 36.18 per share, with a net amount of RMB 2,487,483,821.84 after deducting issuance costs[42]. - The company engaged in entrusted wealth management with a total amount of RMB 41.3 million, of which RMB 37.89 million remains outstanding[114]. - The company has not provided any guarantees for shareholders, actual controllers, or related parties, nor for debtors with a debt-to-asset ratio exceeding 70%[112]. - The company has plans for future entrusted wealth management activities, indicating ongoing investment strategies[116]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern assumption, indicating the company's ability to continue operations for at least 12 months from the reporting date[168]. - The company has complied with the accounting standards and regulations set forth by the Ministry of Finance and the China Securities Regulatory Commission[169]. - The company's accounting period runs from January 1 to December 31 each year[170]. - The company recognizes its share of assets and liabilities in joint operations according to its ownership interest[176].

Revenue and Profitability - Revenue for Q1 2022 was CNY 1,825,021,595.22, an increase of 27.27% compared to CNY 1,434,031,224.43 in the same period last year[3] - Net profit attributable to shareholders was CNY 218,074,137.69, a decrease of 21.84% from CNY 279,009,678.64 year-on-year[3] - Basic earnings per share decreased by 20.69% to CNY 0.23 from CNY 0.29 in the same period last year[3] - The net profit for Q1 2022 was CNY 218,437,460.89, a decrease of 22.4% compared to CNY 281,755,357.67 in Q1 2021[19] - Operating profit for Q1 2022 was CNY 227,073,901.52, down 31.6% from CNY 332,255,819.18 in the same period last year[19] - The company reported a total comprehensive income of CNY 229,665,588.75 for Q1 2022, down from CNY 304,755,068.25 in the same quarter last year[20] Cash Flow and Financial Position - Net cash flow from operating activities was CNY -670,657,657.14, a decline of 69.71% compared to CNY -395,171,935.95 in the previous year[3] - Cash inflow from financing activities increased by 76.93% due to IPO fundraising by a subsidiary[9] - Cash outflow from investment activities decreased by 88.08% as fewer financial products matured for redemption[8] - The cash flow from operating activities was CNY 1,786,143,540.23, compared to CNY 1,533,591,858.77 in the previous year, indicating a positive trend[21] - The net cash flow from investment activities was -388,626,021.55 CNY, contrasting with a positive 177,967,465.12 CNY in the previous year[22] - The net cash flow from financing activities was 577,400,019.82 CNY, compared to -151,583,164.53 CNY in the same period last year, indicating a turnaround[22] Assets and Liabilities - Total assets increased by 6.38% to CNY 20,775,109,491.72 from CNY 19,528,552,642.17 at the end of the previous year[3] - Total liabilities increased to CNY 7,178,306,625.18 from CNY 6,712,708,565.66, reflecting a rise of 6.9%[17] - The company's equity attributable to shareholders rose to CNY 12,849,746,733.69 from CNY 12,473,250,930.74, an increase of 3.0%[17] Shareholder Information - The total number of common shareholders at the end of the reporting period is 27,958[10] - The largest shareholder, Sun Weijie, holds 20.38% of the shares, totaling 195,202,733 shares[10] - The second-largest shareholder, Hong Kong Central Clearing Limited, holds 17.82% of the shares, totaling 170,658,653 shares[10] - The top ten shareholders collectively hold a significant portion of the company's shares, with the top three alone accounting for over 50%[10] - The company has a diverse shareholder base, including both domestic and foreign entities[10] Operational Costs and Expenses - Operating costs increased by 39.19% due to a rise in revenue scale and corresponding cost matching[7] - Total operating costs amounted to CNY 1,562,681,295.87, up from CNY 1,119,094,506.40, reflecting a year-over-year increase of 39.6%[17] - Sales expenses increased to CNY 95,154,320.82, compared to CNY 82,825,862.73 in Q1 2021, reflecting a rise of 14.4%[19] - Research and development expenses were CNY 52,257,956.31, slightly down from CNY 54,965,157.69 in the previous year[19] Future Outlook and Strategic Initiatives - Future outlook includes continued focus on market expansion and potential new product development, although specific details were not provided in the earnings call[17] - The company has initiated a non-public offering of A-shares, which has been approved by the China Securities Regulatory Commission[12] - The company plans to spin off its subsidiary, Dezhou United Petroleum Technology Co., Ltd., for listing on the Shenzhen Stock Exchange[12] - The company completed the transfer of 100% equity in Huachuang Technology to Orange Cloud Internet Design Co., Ltd. for 3.7 million RMB[13] Miscellaneous - Financial expenses surged by 427.31% primarily due to high exchange losses from the depreciation of USD and RUB[7] - The company reported a significant increase of 356.69% in non-operating income, mainly from arbitration compensation related to a project in Ghana[7] - The company did not conduct an audit for the first quarter report[23]

Financial Performance - The company's operating revenue for 2021 was ¥8,776,172,248.32, representing a 5.80% increase compared to ¥8,294,957,104.87 in 2020[12]. - The net profit attributable to shareholders for 2021 was ¥1,586,034,420.17, a decrease of 6.17% from ¥1,690,376,838.38 in 2020[12]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1,478,501,302.62, down 11.82% from ¥1,676,619,467.11 in 2020[12]. - The net cash flow from operating activities increased significantly by 156.96% to ¥808,494,687.92 from ¥314,635,189.00 in 2020[12]. - The total assets at the end of 2021 were ¥19,528,552,642.17, reflecting a 3.82% increase from ¥18,810,321,083.95 at the end of 2020[12]. - The net assets attributable to shareholders increased by 12.60% to ¥12,473,250,930.74 at the end of 2021 from ¥11,077,772,083.16 at the end of 2020[12]. - The company reported a basic earnings per share of ¥1.66 for 2021, a decrease of 6.21% from ¥1.77 in 2020[12]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year 2021, representing a year-over-year growth of 15%[86]. - The company reported a gross margin of 35% for 2021, maintaining a stable margin compared to the previous year[87]. Dividend Distribution - The company reported a profit distribution plan of 1.80 RMB per share (including tax) for a total of 954,756,884 shares, excluding repurchased shares[3]. - The company has a total of 954,756,884 shares available for dividend distribution after excluding repurchased shares[3]. - The cash dividend accounted for 100% of the total profit distribution amount, with a distributable profit of 1,622,286,354.93 yuan[123]. - The company distributed a cash dividend of 1.80 yuan per 10 shares, totaling 171,856,239.12 yuan, based on a share base of 954,756,884 shares[123]. Business Strategy and Expansion - The company plans to expand into the lithium battery anode materials sector while strengthening its oil and gas equipment manufacturing and technical services[19]. - The company is actively expanding into the lithium battery anode materials sector, with projects in Gansu and Fujian aimed at supporting its dual main business strategy of oil and gas and new energy[29]. - The company aims to optimize its industrial layout by increasing the proportion of new energy equipment manufacturing while expanding its lithium battery anode material projects to support dual development in traditional and new energy sectors[74]. - The company is exploring strategic partnerships to bolster its competitive edge in the industry[185]. - The company plans to spin off its subsidiary, Dezhou United Petroleum Technology Co., Ltd., for listing on the Shenzhen Stock Exchange's Growth Enterprise Market[198]. Risk Management - The company faces risks including fluctuations in oil and gas prices, intensified market competition, and the impact of the low-carbon energy system on industry development[2]. - The company emphasizes the importance of risk awareness for investors regarding future plans and projections[2]. - The company is aware of risks related to international operations, including currency fluctuations and political instability in emerging markets, and is implementing strategies to manage these risks[78]. - The ongoing COVID-19 pandemic continues to pose risks to the company's operations, particularly in procurement and equipment sales, necessitating proactive risk management strategies[80]. - The company faces uncertain risks in its Russian operations due to the ongoing Russia-Ukraine conflict, which has led to international sanctions affecting multiple sectors, including energy and finance[82]. Research and Development - The company added 282 authorized patents during the reporting period, including 21 invention patents (10 of which are U.S. authorized)[25]. - Research and development expenses for 2021 were ¥316,347,680.62, showing a slight increase of 4.09% compared to 2020[42]. - The company is investing in new technology development, allocating 100 million RMB for R&D in advanced drilling technologies[86]. - The company aims to enhance its research and development capabilities in high-end equipment manufacturing, focusing on automation, intelligence, and digitalization to maintain product leadership[70]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency in its operations[97]. - The company has established an independent financial accounting system and management structure, ensuring financial independence and compliance with legal requirements[89]. - The company has implemented employee stock ownership plans, resulting in significant shareholding changes among key executives[92]. - The board of directors includes members with diverse expertise, contributing to well-rounded decision-making[96]. Environmental Responsibility - The company has not reported any major environmental pollution issues and complies with relevant discharge standards[148]. - The company has established a comprehensive internal control system to ensure compliance and asset safety[140]. - Jereh Bonda Environmental Technology Co., Ltd. has a wastewater treatment station with a processing capacity of 180m³/d, utilizing a multi-stage treatment process[152]. - The project of Hanchuan Ruima Environmental Technology Co., Ltd. has received approval for its environmental impact report and has completed the construction of the sewage treatment plant[154]. Market Trends and Projections - In 2022, the global oilfield equipment and services market is projected to reach $230.28 billion, representing a 14.19% increase from 2021, with the fracturing equipment market expected to grow by 39.14% to $21.8 billion[68]. - Future guidance indicates a focus on innovation and strategic partnerships to bolster competitive advantage[98]. - The company anticipates a growth rate of approximately 10% in the upcoming fiscal year based on current market trends[185]. - Future guidance suggests continued revenue growth, with expectations of increased demand in the oil and gas sector[188].

Financial Performance - The company's revenue for Q3 2021 was ¥1,859,334,977.50, a decrease of 11.74% compared to the same period last year[3]. - Net profit attributable to shareholders was ¥382,978,614.82, down 10.09% year-on-year[3]. - The net profit excluding non-recurring gains and losses was ¥346,701,232.01, a decline of 16.31% compared to the previous year[3]. - Total operating revenue for the third quarter was CNY 5,528,395,699.44, an increase from CNY 5,424,203,299.37 in the previous year, representing a growth of approximately 1.93%[23]. - Net profit for the period was CNY 1,350,170,969.56, compared to CNY 1,331,561,362.17 in the previous year, indicating a slight increase[23]. - The net profit for the third quarter of 2021 was CNY 1,160,036,664.94, an increase from CNY 1,130,426,489.04 in the same period last year, representing a growth of approximately 2.4%[24]. - The net profit attributable to the parent company's shareholders was CNY 1,146,049,640.29, up from CNY 1,114,712,413.75, indicating a year-over-year increase of about 2.8%[24]. - The total comprehensive income for the period was CNY 1,138,307,252.62, compared to CNY 994,915,102.07 in the previous year, reflecting an increase of approximately 14.4%[24]. - The basic and diluted earnings per share for the third quarter were both CNY 1.20, up from CNY 1.17 in the same quarter last year, marking a growth of 2.6%[24]. Assets and Liabilities - The total assets at the end of the reporting period were ¥19,202,208,664.99, an increase of 2.08% from the end of the previous year[3]. - The company's total assets reached CNY 19,202,208,664.99, up from CNY 18,810,321,083.95, marking an increase of approximately 2.08%[22]. - Total current assets amounted to CNY 14,609,653,047.08, with cash and cash equivalents at CNY 2,903,508,288.40[27]. - Accounts receivable reached CNY 3,257,039,595.99, while inventory stood at CNY 4,840,774,298.47[27]. - Total liabilities were CNY 6,631,235,890.97 in current liabilities and CNY 805,191,370.98 in non-current liabilities[28]. - Non-current liabilities decreased to CNY 572,129,972.70 from CNY 805,191,370.98, a reduction of about 29.0%[22]. Cash Flow - The company's cash flow from operating activities showed a net cash inflow increase of 86.16% year-on-year, amounting to -¥139,043,148.54[3][8]. - Cash inflows from operating activities totaled CNY 5,595,688,727.67, compared to CNY 4,832,213,244.61 in the previous year, representing an increase of about 15.9%[25]. - Cash outflows from operating activities amounted to CNY 5,734,731,876.21, slightly down from CNY 5,836,889,426.04, resulting in a net cash flow from operating activities of CNY -139,043,148.54, an improvement from CNY -1,004,676,181.43 last year[26]. - Cash inflows from investment activities were CNY 448,782,627.38, a decrease from CNY 2,730,419,812.45 in the previous year, indicating a decline of approximately 83.6%[26]. - Cash outflows from investment activities were CNY 436,201,838.19, down from CNY 2,548,496,485.39, showing a decrease of about 82.9%[26]. - Cash inflows from financing activities totaled CNY 1,039,617,298.92, compared to CNY 2,290,707,938.82 in the previous year, reflecting a decline of approximately 54.5%[26]. - The ending balance of cash and cash equivalents was CNY 2,195,059,947.50, up from CNY 1,267,717,736.69 at the end of the previous year, indicating an increase of about 73.1%[26]. Shareholder Information - The company’s total equity attributable to shareholders rose to ¥12,032,469,046.55, an increase of 8.62% from the previous year[3]. - The company’s major shareholders include Sun Weijie with a 20.38% stake and Wang Kunxiao with a 13.97% stake, among others[9]. - The company has not identified any records of margin trading activities among its top ten shareholders as of the reporting period[10]. - The company's employee stock ownership plans are funded through loans from the controlling shareholder, ensuring alignment of interests between management and shareholders[15]. Investment and Projects - The total investment for the lithium-ion battery anode material integration project in Tianshui City is estimated to be 2.5 billion RMB, aimed at diversifying the company's business and establishing a dual-main business strategy in oil and gas and new energy[10]. - The company is in the process of spinning off its subsidiary, Dezhou United Petroleum Technology Co., Ltd., which has received approval from the Shenzhen Stock Exchange for listing on the ChiNext board[11]. - The company has received acceptance from the China Securities Regulatory Commission for its non-public stock issuance application, indicating that the application materials are complete and in compliance with legal requirements[12]. Employee Stock Ownership Plans - The "Striver 1" employee stock ownership plan holds a total of 800,000 shares, representing 0.08% of the company's total share capital[14]. - The company has completed the stock purchase for the "Striver 2" employee stock ownership plan, totaling 1,350,000 shares, with the plan now fully implemented[14]. - The "Striver 4" employee stock ownership plan involved the purchase of 3,400,000 shares, with a total of 1,012,200 shares remaining in the account, representing 0.11% of the total share capital[16]. - The "Striver 5" employee stock ownership plan included the purchase of 2,000,000 shares, with 1,217,300 shares remaining in the account, accounting for 0.13% of the total share capital[17]. - The "Striver 6" employee stock ownership plan had a total purchase of 1,550,000 shares, with all shares remaining in the account, which is 0.16% of the total share capital[18]. - The "Partner 1" employee stock ownership plan involved the purchase of 548,000 shares, with all shares remaining in the account, representing 0.06% of the total share capital[19]. Research and Development - Research and development expenses for the period were CNY 194,326,185.51, compared to CNY 179,474,281.97 in the previous year, showing an increase of about 8.25%[23].

Financial Performance - The company's operating revenue for the first half of 2021 was approximately CNY 3.67 billion, representing a 10.60% increase compared to CNY 3.32 billion in the same period last year[9]. - The net profit attributable to shareholders of the listed company reached approximately CNY 763 million, up 10.79% from CNY 689 million in the previous year[9]. - Basic and diluted earnings per share increased to CNY 0.80, reflecting an 11.11% growth from CNY 0.72 in the previous year[9]. - The company's operating revenue for the first half of 2021 was 3.67 billion yuan, an increase of 10.60% compared to the same period last year[19]. - The net profit attributable to shareholders was 763 million yuan, reflecting a growth of 10.79% year-on-year[19]. - New orders received during the reporting period amounted to 5.26 billion yuan, up 12.92% from the previous year[19]. - The total amount of orders on hand at the end of the reporting period was 5.48 billion yuan[19]. - The revenue from oilfield services and equipment accounted for 91.77% of total revenue, with a year-on-year growth of 13.41%[22]. - Domestic revenue surged by 57.13% to 3.35 billion yuan, while international revenue decreased by 73.21% to 317 million yuan[22]. Cash Flow and Assets - The net cash flow from operating activities improved significantly, with a net outflow of approximately CNY 311 million, a 43.93% reduction from a net outflow of CNY 554 million in the same period last year[9]. - Cash and cash equivalents at the end of the reporting period were ¥2,466,392,020.94, down from ¥2,903,508,288.40 at the end of the previous year[26]. - Accounts receivable increased to ¥4,075,850,477.77, representing 21.54% of total assets[26]. - The company’s inventory stood at ¥4,563,351,217.29, accounting for 24.11% of total assets[26]. - The total amount of restricted assets was ¥624,294,565.48, including cash and fixed assets[29]. - The company's total assets at the end of the reporting period were approximately CNY 18.92 billion, a slight increase of 0.61% from CNY 18.81 billion at the end of the previous year[10]. - The net assets attributable to shareholders of the listed company were approximately CNY 11.68 billion, marking a 5.44% increase from CNY 11.08 billion at the end of the previous year[10]. Research and Development - Research and development expenses increased by 13.40% to 124.52 million yuan, indicating a focus on innovation[20]. - The company added 69 authorized patents during the reporting period, including 11 invention patents, and now holds a total of 674 authorized patents[17]. - The company is committed to technological innovation, which has been a core aspect of its development and transformation[17]. - The company has made advancements in technology, including the development of a carbon dioxide foam fracturing device and a smart fracturing collaborative control system[21]. - The company is actively exploring new energy technologies, including hydrogen production from natural gas and methanol[21]. Market and Competition - The company faces several risks, including the decline in oil and gas prices and intensified market competition[3]. - The company is focusing on the development of new technologies and market expansion strategies to mitigate risks and enhance growth[3]. - Increased market competition is anticipated due to new policies allowing more market participants in the oil and gas exploration and development sectors[38]. - The company is actively expanding into non-oil and gas sectors to mitigate risks associated with the oil and gas market downturn[37]. Environmental and Social Responsibility - The company has implemented pollution prevention facilities, including a chromium wastewater treatment system and a chromium mist purification tower, which passed environmental assessments in late 2018 and 2019[57]. - The wastewater treatment station has been constructed, ensuring treated wastewater meets standards before entering the park's sewage treatment plant[58]. - The company has committed to sustainable development practices, aligning with global initiatives and implementing a comprehensive green development system[68]. - The company has actively participated in social responsibility initiatives, including a rapid response to a mining accident, providing equipment and technical support for rescue operations[68]. Legal and Regulatory Matters - The company is involved in multiple ongoing legal disputes, with amounts claimed ranging from 10 million to over 10 billion CNY, including a notable arbitration victory against Ghana National Gas Company for $14.77 million[74]. - The company has successfully resolved several disputes through mediation, including a case with a payment of 200,000 CNY and another with a settlement of 20,000 CNY[73]. - The company is currently engaged in arbitration and litigation processes for various contract disputes, with amounts involved such as 669.74 million CNY and 813.97 million CNY[74]. - The company has reported a total of 6,377.3 million CNY in claims related to a contract dispute with the Lai Zhou Municipal Government[73]. - The company is involved in a significant arbitration case with Houston Global Heat Transfer, with ongoing proceedings[74]. Shareholder and Equity Information - The largest shareholder, Sun Weijie, holds 20.47% of the shares, totaling 196,100,199 shares[99]. - The second-largest shareholder, Wang Kunxiao, holds 14.03% of the shares, totaling 134,381,061 shares[99]. - The total number of common shareholders at the end of the reporting period was 32,568[98]. - The company has not reported any significant changes in shareholding structure or major shareholder actions during the reporting period[101]. - The company’s registered capital remains at CNY 957,853,992, with no changes reported in the capital structure[129]. Financial Instruments and Risk Management - The company engaged in foreign exchange hedging to mitigate risks associated with currency fluctuations, adhering to principles of legality and prudence[32]. - The company’s derivative investments included options and forward foreign exchange transactions, with a focus on risk management rather than speculative trading[32]. - The company maintains a robust internal control system to manage risks associated with derivative investments[34]. - The company has implemented risk control measures for foreign exchange hedging to protect against currency fluctuations[34]. Future Outlook and Strategy - The company aims to achieve a significant increase in the proportion of clean energy in China's energy structure by 2030, which will positively impact the oilfield service market[13]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[111]. - The company is actively pursuing mergers and acquisitions to enhance its service offerings and operational capabilities[86].

Financial Performance - The company's operating revenue for Q1 2021 was CNY 1,434,031,224.43, representing a 5.91% increase compared to CNY 1,354,037,188.00 in the same period last year[3] - Net profit attributable to shareholders was CNY 279,009,678.64, a 25.18% increase from CNY 222,895,029.06 year-on-year[3] - The net profit after deducting non-recurring gains and losses was CNY 260,797,011.50, up 11.59% from CNY 233,720,320.89 in the previous year[3] - Basic and diluted earnings per share increased to CNY 0.29, reflecting a 26.09% rise from CNY 0.23 in the same quarter last year[3] - The company reported a total profit for the quarter of CNY 337,326,018.26, compared to CNY 264,706,028.76 in the previous year, marking an increase of around 27.4%[40] - The company reported a comprehensive income total of CNY 304,755,068.25 for Q1 2021, significantly higher than CNY 78,217,678.23 in the previous year[41] Cash Flow - The net cash flow from operating activities improved to -CNY 395,171,935.95, a 36.21% reduction in losses compared to -CNY 619,463,874.99 last year[3] - Cash inflow from operating activities decreased by 2% year-on-year, while cash outflow decreased by 11.7%, resulting in a net cash increase of 36.21%[13] - The cash flow from operating activities was CNY 1,455,128,701.78, slightly up from CNY 1,433,310,253.04 in the same period last year[43] - The net cash flow from operating activities was -206,232,919.33 CNY, contrasting with a positive flow of 17,485,632.42 CNY in the previous period[46] - The net cash flow from financing activities was -151,583,164.53 CNY, compared to a positive flow of 482,841,086.73 CNY in the previous period, reflecting increased cash outflows[45] Assets and Liabilities - Total assets at the end of the reporting period were CNY 18,343,932,249.85, a decrease of 2.48% from CNY 18,810,321,083.95 at the end of the previous year[3] - The company's cash and cash equivalents decreased to CNY 2.53 billion from CNY 2.90 billion year-over-year, representing a decline of approximately 12.9%[34] - Accounts receivable stood at CNY 3.24 billion, slightly down from CNY 3.26 billion, indicating a decrease of about 0.2%[34] - The total current liabilities decreased to CNY 5.82 billion from CNY 6.63 billion, a decline of approximately 12.2%[35] - The company's long-term borrowings increased to CNY 598 million from CNY 570.25 million, marking an increase of about 4.9%[35] Investments - Investment income increased by 470.41% year-on-year, mainly due to profit growth from joint ventures and associates[12] - The total initial investment cost for financial assets amounted to approximately 133.83 million, with a fair value change loss of 120.97 million during the reporting period[20] - The investment in PLEXUS had an initial cost of approximately 77.56 million, with a fair value change loss of 70.69 million[20] - The company has engaged in entrusted financial management with a total amount of 24,315,000 RMB, with an outstanding balance of 1,750,000 RMB and no overdue amounts[25] Employee Stock Ownership Plans - The "Striver 1" employee stock ownership plan accounted for 0.09% of the total share capital, with 900,000 shares remaining at the end of the reporting period[12] - The "Striver 2" employee stock ownership plan has been completed and terminated, with subsequent asset liquidation and distribution to follow[15] - The "Striver 3" employee stock ownership plan accounted for 0.14% of the total share capital, with 1,365,900 shares remaining at the end of the reporting period[16] - The "Striver 4" employee stock ownership plan accounted for 0.18% of the total share capital, with 1,686,300 shares remaining at the end of the reporting period[17] Risk Management - The company engaged in foreign exchange hedging to mitigate risks associated with currency fluctuations, adhering to legal and prudent principles[22] - The company has established a risk control system for foreign exchange hedging, ensuring compliance with regulatory requirements and operational needs[22] - The company has implemented clear management responsibilities and procedures to minimize operational risks in derivative investments[22] Accounting and Compliance - The company has not experienced any significant changes in accounting policies regarding derivative investments compared to the previous reporting period[23] - The report was not audited, indicating preliminary financial results[52] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[28]

Financial Performance - The company's operating revenue for 2020 was ¥8,294,957,104.87, representing a 19.78% increase from ¥6,925,426,976.55 in 2019[10]. - The net profit attributable to shareholders for 2020 was ¥1,690,376,838.38, up 24.23% from ¥1,360,693,039.87 in 2019[10]. - The net profit after deducting non-recurring gains and losses was ¥1,676,619,467.11, reflecting a 23.87% increase from ¥1,353,491,831.63 in 2019[10]. - The net cash flow from operating activities was ¥314,635,189.00, a 34.94% increase compared to ¥233,161,127.89 in 2019[10]. - The total assets at the end of 2020 were ¥18,810,321,083.95, which is a 13.87% increase from ¥16,519,403,874.63 at the end of 2019[10]. - The net assets attributable to shareholders at the end of 2020 were ¥11,077,772,083.16, up 13.44% from ¥9,765,729,812.37 at the end of 2019[10]. - The basic earnings per share for 2020 was ¥1.77, representing a 24.65% increase from ¥1.42 in 2019[10]. - The diluted earnings per share for 2020 was also ¥1.77, reflecting the same percentage increase of 24.65% from ¥1.42 in 2019[10]. - The weighted average return on equity for 2020 was 16.23%, an increase from 14.99% in 2019[10]. - The company reported a net profit of ¥575,664,424.63 in Q4 2020, which was the highest quarterly profit for the year[12]. Market Conditions - The company faces risks including a decline in oil and gas prices, intensified market competition, and the impact of the COVID-19 pandemic[2]. - In 2020, the global oilfield equipment and services market expenditure was $192.1 billion, a decrease of 29% compared to 2019, marking the lowest level since 2005[18]. - Brent crude oil average price in 2020 was $43 per barrel, a significant decline of 33% from 2019[18]. - In 2020, China's crude oil production reached 195 million tons, an increase of 2%, while natural gas production was 188.8 billion cubic meters, up approximately 8.9%[18]. - The company’s strategy focuses on "selective adherence and adaptive transformation" amid the ongoing downturn in the oil and gas industry due to the pandemic[23]. Business Operations - The company operates in the oil and gas equipment manufacturing and technical services sector, providing drilling and completion equipment, oilfield technical services, and environmental services[4]. - The company has not changed its main business since its listing, indicating stability in its operational focus[8]. - The company has not reported any changes in its controlling shareholders since its establishment, indicating stable ownership[8]. - The company has engaged Zhongxi Accounting Firm for auditing services during the reporting period[9]. - The company has a registered address at 5 Jereh Road, Laishan District, Yantai City, with a postal code of 264003[5]. - The company has a dedicated investor relations email for inquiries, ensuring communication with stakeholders[6]. Research and Development - The company launched several new products, including a complete set of turbine fracturing equipment and a 7000-type electric fracturing device, enhancing its competitive edge[30]. - The company initiated a digital transformation plan, implementing various information systems to integrate production and operations[30]. - The company has committed to digital and intelligent upgrades across its operations, reflecting its focus on technological innovation and transformation[26]. - The number of R&D personnel increased by 1.12% to 1,176 in 2020, maintaining a stable proportion of 23.34% of total employees[47]. - R&D expenses increased by 11.47% to ¥303,925,808.16 in 2020 from ¥272,653,765.79 in 2019, representing 3.66% of operating revenue[47]. Social Responsibility - The company donated CNY 10 million to establish a fund for COVID-19 relief efforts, demonstrating its commitment to social responsibility[31]. - The company has established pollution prevention facilities, including a chromium wastewater treatment system and a biological deodorization system, which have passed environmental assessments and are currently operating normally[154]. - The company has committed to regular environmental monitoring through third-party agencies to ensure compliance with pollution discharge standards[157]. Shareholder Information - The company reported a cash dividend of 1.8 RMB per 10 shares (including tax) based on a total share capital of 954,756,884 shares as of December 31, 2020[2]. - The total cash dividend for 2020, including share buybacks, is 252,841,900.43 CNY, accounting for 14.96% of the net profit attributable to shareholders[98]. - The company repurchased a total of 3,097,108 shares in 2020, with a total transaction amount of 80,985,661.31 CNY, which is included in the cash dividend calculation[100]. - The cash dividend payout ratio for 2018 was 18.68%, for 2019 was 11.26%, and for 2020 is projected to be 10.17%[98]. - The company’s total share capital as of December 31, 2020, was 957,853,992 shares, after excluding the repurchased shares[99]. Risk Management - The company emphasizes the importance of risk awareness for investors regarding forward-looking statements and future plans[2]. - The company has implemented a risk control system for foreign exchange hedging, ensuring that all transactions are based on normal business operations to mitigate currency and interest rate risks[63]. - The company’s risk control measures are designed to enhance responsiveness to potential risks while maintaining effective risk management practices[63]. - The company is exposed to intensified market competition due to new policies that relax restrictions on foreign investment in oil and gas exploration and development[85]. - The ongoing COVID-19 pandemic may impact the company's procurement, equipment sales, and engineering services, affecting overall performance in 2021[89]. Corporate Governance - The company has established clear management responsibilities and internal controls to prevent risks associated with foreign exchange hedging operations[63]. - The company has a fully independent financial accounting system and management practices, with dedicated financial personnel and separate bank accounts[197]. - The company has established a comprehensive governance structure, including a board of directors and specialized committees, in compliance with relevant laws and regulations[196]. - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, and finance, ensuring autonomous operational capabilities[197]. Future Outlook - The company plans to enhance its digital transformation and management capabilities, focusing on improving product quality and customer-centric services[76]. - The company anticipates global oil demand to recover in 2021, with international oil prices expected to stabilize between $50 and $70 per barrel[75]. - The company plans to explore clean energy sectors, including hydrogen energy, while maintaining its focus on oil and gas equipment manufacturing[30]. - The company aims to develop a comprehensive oilfield integrated service model, including reservoir evaluation and oilfield operation management[78]. - The company is committed to advancing its digital transformation, enhancing operational efficiency through digital tools and data analysis[81].

Financial Performance - Net profit attributable to shareholders increased by 5.17% to CNY 425,977,941.60 for the reporting period[4] - Operating revenue for the reporting period reached CNY 2,106,717,462.46, a 26.75% increase year-on-year[4] - Basic earnings per share rose by 7.14% to CNY 0.45 for the reporting period[4] - The company reported a net profit of CNY 5.81 billion, up from CNY 4.84 billion, representing an increase of approximately 20.1% year-over-year[53] - The net profit for Q3 2020 was CNY 1,130,426,489.04, an increase from CNY 920,197,729.87 in the same period last year, representing a growth of approximately 23%[64] - Total operating revenue for Q3 2020 reached CNY 2,106,717,462.46, an increase of 26.6% compared to CNY 1,662,071,192.72 in the same period last year[57] - The company reported a net loss of 8,530,012.77 for the current period, compared to a net profit of 36,837,957.19 in the previous period, indicating a significant decline[62] Assets and Liabilities - Total assets increased by 8.45% to CNY 17,915,662,967.43 compared to the end of the previous year[4] - Total liabilities increased to CNY 7.12 billion from CNY 6.48 billion, reflecting a rise of about 9.8%[52] - The company's equity attributable to shareholders rose to CNY 10.51 billion from CNY 9.77 billion, an increase of approximately 7.5%[53] - Total current assets increased to CNY 13.95 billion from CNY 12.99 billion as of December 31, 2019, representing a growth of approximately 7.4%[50] - Total non-current assets reached CNY 3.96 billion, up from CNY 3.53 billion, indicating an increase of about 12.1%[51] - Total liabilities increased from ¥6,479,444,731.37 to ¥6,496,103,116.38, an increase of ¥16,658,385.01[77] Cash Flow - The net cash flow from operating activities was negative at CNY -450,187,548.50, a decrease of 9,454.25% compared to the previous year[4] - Cash inflow from investment activities totaled CNY 2,730,419,812.45, significantly up from CNY 1,466,223,990.22 in the previous year, marking an increase of 86.5%[70] - The total cash inflow from operating activities for the period was CNY 4,832,213,244.61, an increase of 8.8% compared to CNY 4,440,760,669.79 in the previous period[69] - The ending balance of cash and cash equivalents was CNY 1,267,717,736.69, a decrease from CNY 1,403,290,460.59 in the previous year[70] Shareholder Information - The company reported a total of 46,643 common shareholders at the end of the reporting period[7] - The top three shareholders hold a combined 46.04% of the shares, with Sun Weijie holding 20.47%[7] - The "Striver No. 5" employee stock ownership plan involved the purchase of 2,000,000 shares, accounting for 0.21% of the company's total share capital[20] Financial Management and Investments - The company received government subsidies amounting to CNY 17,706,872.68 during the reporting period[5] - The company reported a total initial investment in securities of RMB 133,829,303.49, with a fair value loss of RMB 13,574,129.32 during the reporting period[23] - The company has engaged in high-risk entrusted financial management, highlighting a strategic approach to investment despite potential risks[34] - The company has a total of 19,000 million CNY in fixed income non-principal guaranteed floating income open-ended net value products, with a reference annualized expected return rate of 3.26%[37] Risk Management - The company has implemented a foreign exchange hedging strategy to mitigate risks associated with currency fluctuations, focusing on normal operational needs rather than speculative trading[29] - The company has established a comprehensive risk management framework, including internal control measures and compliance with regulatory requirements, to manage market, liquidity, credit, operational, and legal risks associated with foreign exchange hedging[29] - The independent directors have confirmed that the foreign exchange hedging activities align with the company's operational needs and comply with legal regulations, ensuring no harm to shareholder interests[31] Research and Development - Research and development expenses for Q3 2020 were CNY 69,660,328.22, slightly down from CNY 72,302,749.01 in the previous year, indicating a decrease of 3.6%[58] - The company has invested 1,803,171.77 in R&D expenses, compared to 759,610.04 in the previous period, reflecting an increase of approximately 137.5%[61] Market Strategy - The company plans to expand its market reach by introducing new financial products in the upcoming quarters, aiming for a 10% growth in user base[40] - Yantai Jereh aims to increase its market share through strategic acquisitions, targeting a 5% increase in overall market penetration by the end of 2021[40]