Financial Performance - The company's operating revenue for Q1 2018 was ¥9,572,206.19, representing a 107.55% increase compared to ¥4,612,063.54 in the same period last year[8] - The net profit attributable to shareholders was -¥6,716,479.24, an improvement of 24.61% from -¥8,908,741.16 year-on-year[8] - The basic earnings per share improved to -¥0.060, a 25.00% increase from -¥0.080 in the same period last year[8] - The company expects a net profit attributable to shareholders for the first half of 2018 to be between CNY 1,810.81 million and CNY 2,535.13 million, indicating a growth of 0% to 40% compared to the same period last year[21] - Net loss for Q1 2018 was CNY 6,789,444.68, compared to a net loss of CNY 8,922,490.25 in the previous year, showing an improvement of 24.8%[37] - The total comprehensive income for the period was -8,975,263.36 CNY, compared to -8,965,853.02 CNY in the previous period, showing a slight increase in losses[38] Cash Flow - The net cash flow from operating activities was -¥53,334,178.51, a significant decline of 218.44% compared to ¥45,032,055.63 in the previous year[8] - The company received cash inflows from operating activities totaling 169,370,372.06 CNY, compared to 126,367,510.78 CNY in the previous period, indicating an increase of approximately 33.9%[44] - Operating cash flow for the first quarter was negative at -39,474,549.37 CNY, compared to a positive cash flow of 41,212,979.00 CNY in the same period last year[47] - Cash inflow from operating activities totaled 105,361,855.73 CNY, down from 121,417,002.81 CNY in the prior year[47] - Cash outflow for purchasing goods and services was 112,869,408.49 CNY, significantly higher than 49,822,128.26 CNY in the same quarter last year[47] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,413,580,972.39, down 2.17% from ¥1,444,904,682.12 at the end of the previous year[8] - The net assets attributable to shareholders decreased by 1.98% to ¥886,565,928.38 from ¥904,503,125.44 at the end of the previous year[8] - Total assets decreased to CNY 1,358,501,703.08 from CNY 1,610,736,908.65, a decline of 15.6%[34] - Total liabilities decreased to CNY 478,843,173.12 from CNY 726,523,615.70, a reduction of 34.1%[34] - Total equity increased to CNY 879,658,529.96 from CNY 884,213,292.95, a slight decrease of 0.6%[34] Inventory and Receivables - The company's inventory increased by 54.61% to CNY 208,179,984.13, primarily due to the increase in unfinished engineering projects[16] - The company reported a significant increase in other receivables, rising by 1359.58% to CNY 57,998,792.89, mainly due to compensation for land and housing demolition related to equity acquisitions[16] - Accounts receivable decreased to CNY 260,589,630.95 from CNY 349,938,516.89, a decrease of 25.5%[32] - Inventory increased to CNY 186,573,209.78 from CNY 118,634,961.08, an increase of 57.3%[32] Shareholder Information - The total number of common shareholders at the end of the reporting period was 14,718[12] - The largest shareholder, Chen Pinggui, holds 16.16% of the shares, amounting to 19,350,000 shares, with 6,970,000 shares pledged[12] Operational Highlights - The company has successfully progressed in its drilling project in Ukraine, with all drilling rigs operational as of the report date[18] - The company's short-term borrowings decreased by 100% to CNY 0, as the company repaid its bank loans in advance[16] Financial Expenses and Income - The company's financial expenses increased by 72.77% to CNY 120,418.21, primarily due to increased bank fees[16] - The company reported a significant increase in non-operating income, which rose by 290.13% to CNY 917,953.80, mainly due to gains from equity acquisitions[16] - The company recorded an investment income of 638,264.42 CNY during the period, contributing positively to the overall financial performance[39] Audit and Reporting - The company did not conduct an audit for the first quarter report[49]

Financial Performance - Net profit attributable to shareholders increased by 29.52% to CNY 30,182,565.40 for the reporting period[7] - Net profit for the first three quarters increased by 32.45% to ¥48,418,522.96, attributed to higher drilling project completion volumes[16] - Net profit for the quarter reached CNY 30,177,737.86, compared to CNY 23,378,051.50 in the same period last year, reflecting a growth of approximately 29.5%[36] - The net profit for the current period was CNY 29,431,449.90, an increase from CNY 21,388,709.49 in the same period last year, representing a growth of about 37.5%[40] - Net profit for the current period was ¥40,888,818.50, compared to ¥34,924,693.70 in the previous period, reflecting a growth of approximately 17.5%[48] Revenue and Income - Operating income decreased by 3.30% to CNY 187,574,929.50 compared to the same period last year[7] - Total operating revenue for the third quarter was CNY 187,574,929.50, a decrease from CNY 193,978,973.31 in the previous period[35] - The total operating revenue for the current period reached CNY 392,332,752.66, compared to CNY 352,483,782.49 in the previous period, indicating a growth of approximately 11.4%[42] - Operating revenue for the current period reached ¥369,325,725.94, an increase from ¥337,839,198.40 in the previous period[47] Assets and Liabilities - Total assets increased by 14.02% to CNY 1,309,141,969.42 compared to the end of the previous year[7] - The total assets of the company increased to CNY 1,277,955,344.21 from CNY 1,123,336,036.28, representing a growth of about 13.8%[32] - The total liabilities rose to CNY 381,356,707.81, compared to CNY 296,102,500.18 in the previous period, indicating an increase of approximately 28.8%[33] - The equity attributable to shareholders of the parent company was CNY 896,598,636.40, up from CNY 827,233,536.10, marking an increase of about 8.4%[33] Cash Flow - Net cash flow from operating activities decreased by 119.85% to -CNY 8,706,066.27 for the reporting period[7] - Cash flow from operating activities showed a negative net cash flow of ¥29,854,313.21, a decrease of 213.84% compared to the previous year[17] - Cash flow from operating activities showed a net outflow of ¥29,854,313.21, contrasting with a net inflow of ¥26,224,447.88 in the previous period[51] - The ending balance of cash and cash equivalents was ¥270,810,678.30, a decrease from ¥465,233,550.20 at the beginning of the period[52] Expenses - Basic earnings per share remained at CNY 0.26, a decrease of 3.70% compared to the same period last year[7] - The weighted average return on equity was 2.61%, a decrease of 0.12% compared to the previous year[7] - Operating costs for the current period amounted to CNY 145,919,602.13, up from CNY 138,024,154.48 in the previous period, which is an increase of approximately 5.4%[40] - The total operating costs for the current period were CNY 336,117,372.73, compared to CNY 313,109,936.08 in the previous period, indicating an increase of approximately 7.3%[42] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 14,303[11] - The largest shareholder, Chen Pinggui, holds 16.51% of the shares[11] Investments - Investment activities resulted in a net cash outflow of ¥103,164,533.71, an increase of 196.03% due to fixed asset investments for fundraising projects[17] - The company reported an investment income of CNY 75,016.32 for the current period, down from CNY 190,661.42 in the previous period[44] Other Information - The company did not engage in any repurchase transactions during the reporting period[12] - There were no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[19] - The company signed a significant operating contract in Ukraine on September 11, 2017, which is currently progressing normally[18] - The company did not undergo an audit for the Q3 report[55]

Financial Performance - The company's operating revenue for the first half of 2017 was ¥204,757,823.16, representing a 29.18% increase compared to ¥158,504,809.18 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was ¥18,108,096.35, up 37.60% from ¥13,160,027.98 in the previous year[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥16,709,048.03, showing an impressive increase of 89.58% compared to ¥8,813,854.91 in the same period last year[17]. - The total profit for the first half of 2017 was CNY 22,562,432.46, an increase of 40.5% from CNY 16,098,068.62 in the previous year[141]. - The company reported a gross profit margin of approximately 10.8% for the first half of 2017, compared to 8.5% in the same period of 2016[141]. - Operating profit for the first half of 2017 was CNY 22,241,474.54, up 92.9% from CNY 11,525,786.40 in the previous year[141]. - The company expects a net profit attributable to shareholders for the period from January to September 2017 to be between CNY 47,401.9 thousand and CNY 54,694.5 thousand, reflecting an increase of 30% to 50% compared to the same period in 2016[67]. Cash Flow and Financial Position - The net cash flow from operating activities was -¥21,148,246.94, a decline of 19.98% from -¥17,626,757.42 in the previous year[17]. - Cash and cash equivalents decreased by 13.93% to CNY 334.73 million, primarily due to loan repayments and dividend distributions[47]. - Total current assets decreased from 834,509,185.68 to 784,481,889.63, a decline of approximately 6.5%[132]. - Cash and cash equivalents decreased from 499,057,545.77 to 334,729,241.75, a reduction of about 32.9%[131]. - The total cash and cash equivalents at the end of the period were 307,675,239.44 CNY, down from 465,233,550.20 CNY at the beginning of the period[150]. - The company incurred asset impairment losses of CNY 2,010,915.65, compared to a gain of CNY 7,999,573.11 in the same period last year[141]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,133,604,266.63, a decrease of 1.27% from ¥1,148,202,862.61 at the end of the previous year[17]. - Total liabilities decreased from 307,859,414.83 to 284,922,947.30, a decline of approximately 7.4%[133]. - The total owner's equity at the end of the reporting period was CNY 1,480,981,000, with a decrease of CNY 533,650,000 compared to the previous period[156]. - The company reported a significant increase in accounts payable from 128,351,032.00 to 184,140,053.53, an increase of about 43.5%[133]. Business Operations - The company operates in the oilfield engineering technology service industry, focusing on drilling engineering services and aims to enhance its core drilling service capabilities[25]. - The main business activities include drilling, cementing, drilling fluids, directional wells, and underbalanced drilling, with no significant changes reported during the period[26]. - The drilling engineering business accounted for 83.77% of total revenue, with a growth of 23.00% year-on-year[44]. - The company completed a drilling footage of 125,300 meters, a 35% increase year-on-year, reflecting improved operational performance[38]. - The company has developed 12 types of drilling fluid technology systems to meet various customer needs in the domestic oilfield market[27]. Research and Development - Research and development investment surged by 3,211.01% to 1.12 million yuan, indicating a significant increase in R&D efforts[42]. - The company plans to increase R&D investment to enhance core competitiveness in response to the evolving competitive landscape in the oilfield services market[72]. - The company maintains a strong patent portfolio with 5 invention patents and 25 utility model patents, supporting its technological edge[35]. Market and Client Dependency - Revenue from the major client, PetroChina Group, accounted for 88.30% of total revenue in the first half of 2017, indicating a high dependency on a single customer[70]. - The company plans to actively expand into new overseas markets to mitigate risks associated with customer concentration[71]. - The company is positioned to benefit from the growing demand for oilfield engineering services in Central Asia due to the Belt and Road Initiative[36]. Risk Management - The company has detailed risk factors and countermeasures in the report, which investors are encouraged to review[4]. - The company emphasizes strengthening risk control measures in response to the challenges posed by market expansion and management demands[74]. - The company faces risks related to management capabilities as it expands into new markets, necessitating the recruitment of more skilled personnel[74]. Shareholder and Equity Information - The total number of common shareholders at the end of the reporting period was 15,056[115]. - The largest shareholder, Chen Pinggui, holds 16.51% of the shares, amounting to 19,350,000 shares[115]. - The company has no preferred shares outstanding during the reporting period[120]. - The company has a total of 10 major shareholders with no associated relationships or concerted actions among them[115]. Legal and Compliance - The company has not encountered any issues with the use and disclosure of raised funds[59]. - The half-year financial report has not been audited[84]. - The company has not experienced any major litigation or arbitration matters during the reporting period[86]. Corporate Governance - The company has established a comprehensive management structure including a board of directors and various functional departments[171]. - The company appointed several new senior management personnel, including a new financial director and operations director[124]. - The report indicates that there were no significant changes in the shareholding of directors, supervisors, and senior management during the reporting period[122].

Financial Performance - The company's operating revenue for the first half of 2017 was CNY 204,757,823.16, representing a 29.18% increase compared to CNY 158,504,809.18 in the same period last year[17]. - The net profit attributable to shareholders was CNY 18,108,096.35, up 37.60% from CNY 13,160,027.98 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was CNY 16,709,048.03, which is an increase of 89.58% compared to CNY 8,813,854.91 in the previous year[17]. - The operating costs increased to CNY 154.00 million, reflecting a year-on-year growth of 19.01% due to increased business volume, particularly in drilling engineering[41]. - The company reported a gross profit margin of approximately 10.8% for the first half of 2017, compared to 8.0% in the same period of 2016[140]. - Operating profit increased to CNY 22,241,474.54, up 92.9% from CNY 11,525,786.40 year-on-year[140]. - The company recorded a total profit of CNY 22,562,432.46, which is a 40.5% increase from CNY 16,098,068.62 in the previous year[140]. - The total comprehensive income for the first half of 2017 was CNY 17,772,737.22, compared to CNY 13,163,602.73 in the same period of 2016[141]. Cash Flow and Liquidity - The net cash flow from operating activities was negative at CNY -21,148,246.94, a decline of 19.98% from CNY -17,626,757.42 in the same period last year[17]. - Cash and cash equivalents decreased to ¥334.73 million, accounting for 29.53% of total assets, down from 43.46% year-on-year, primarily due to loan repayments and dividend distributions[48]. - The company experienced a net decrease in cash and cash equivalents of -157,558,310.76 CNY, compared to -85,961,630.04 CNY in the previous period, indicating worsening cash flow management[149]. - The net cash flow from investing activities was -40,676,511.86 CNY, worsening from -20,701,733.49 CNY in the previous period[148]. - The net cash flow from financing activities was -95,689,652.34 CNY, compared to -48,821,074.31 CNY in the previous period, indicating increased financing pressure[149]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,133,604,266.63, a decrease of 1.27% from CNY 1,148,202,862.61 at the end of the previous year[17]. - Total liabilities decreased from CNY 307,859,414.83 to CNY 284,922,947.30, a decline of approximately 7.4%[132]. - The total owner's equity at the end of the period was CNY 1,480,900,000, compared to CNY 1,327,378,000 in the previous year, indicating an increase of approximately 11.5%[156]. - The accounts receivable increased to ¥324.81 million, representing 28.65% of total assets, up from 22.41% year-on-year, mainly driven by increased revenue in the first half of 2017[48]. - Inventory rose to ¥66.43 million, making up 5.86% of total assets, an increase from 2.42% year-on-year, attributed to unfinished engineering projects[48]. Business Operations - The company operates in the oilfield engineering technology service industry, focusing on drilling engineering services and other oilfield technical services, aiming to enhance its core drilling service capabilities and become an international oilfield technology service provider[25]. - The main business activities include drilling, cementing, drilling fluids, directional wells, and underbalanced drilling, with a strong competitive position in high-temperature and horizontal well technologies[26]. - The company has developed 12 types of drilling fluid technology systems to meet diverse customer needs, emphasizing oil layer and environmental protection[27]. - The company has formed strategic partnerships with universities and research institutes to enhance its R&D capabilities, including the establishment of specialized engineering technology research centers[34]. - The company plans to expand internationally, having won a drilling project in Ukraine, which will enhance its global market presence[38]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[5]. - The total number of common shareholders at the end of the reporting period was 15,056[114]. - The largest shareholder, Chen Pinggui, holds 16.51% of the shares, amounting to 19,350,000 shares[114]. - The company has no preferred shares outstanding during the reporting period[119]. - The company reported a profit distribution to owners of CNY 14,650,000, which reflects a significant reduction compared to previous distributions[155]. Risks and Challenges - The company has detailed risk factors and countermeasures in the report, which investors are advised to pay attention to[4]. - The company is facing risks related to fluctuations in the investment scale of the oil and gas exploration and development industry, which could impact operational performance[69]. - The company plans to actively expand into new overseas markets to mitigate risks associated with client concentration[71]. - The long settlement cycles with major clients like PetroChina and Sinopec contribute to the large accounts receivable balance, which poses a risk if collection slows down[73]. - The company is committed to enhancing risk control measures to manage the challenges associated with its growth and market expansion[74]. Research and Development - Research and development investment surged by 3,211.01% to CNY 1.12 million, indicating a significant increase in R&D efforts[42]. - The company plans to increase R&D investment to enhance core competitiveness in response to the evolving competitive landscape in the oilfield services market[72]. Legal and Compliance - The company has not experienced any major litigation or arbitration matters during the reporting period[86]. - There were no significant related party transactions reported during the period[91]. - The half-year financial report has not been audited[84]. Corporate Governance - The company appointed several new senior management personnel, including a new financial director and operations director[122][123]. - The report indicates that there were no significant changes in the shareholding of directors, supervisors, and senior management during the reporting period[121].

Financial Performance - The company's operating revenue for 2016 was ¥428,036,742.17, a decrease of 41.36% compared to ¥729,941,010.00 in 2015[16]. - The net profit attributable to shareholders for 2016 was ¥62,608,871.33, down 4.01% from ¥65,222,936.40 in the previous year[16]. - The net profit after deducting non-recurring gains and losses was ¥53,582,663.22, reflecting a decline of 12.62% from ¥61,322,088.85 in 2015[16]. - The net cash flow from operating activities was ¥80,398,241.35, a decrease of 12.71% compared to ¥92,102,084.47 in 2015[16]. - The total assets at the end of 2016 amounted to ¥1,148,202,862.61, an increase of 21.79% from ¥942,765,504.80 at the end of 2015[16]. - The net assets attributable to shareholders increased by 77.19% to ¥839,016,089.82 from ¥473,505,780.92 in 2015[16]. - The basic earnings per share for 2016 were ¥0.710, down 4.05% from ¥0.740 in 2015[16]. - The weighted average return on equity for 2016 was 12.82%, a decrease of 1.41% from 14.23% in 2015[16]. - The company achieved a revenue of 428 million yuan and a profit of 62.73 million yuan in 2016[42]. - The oil and gas exploration and development segment accounted for 98.73% of total revenue, with a revenue of approximately ¥422 million, down 38.78% from the previous year[49]. - The company plans to achieve a sales revenue of approximately ¥550 million in 2017, with a main business cost of about ¥480 million, and a net profit attributable to shareholders of approximately ¥61 million after deducting non-recurring gains and losses[45]. Cash Flow and Investments - The net cash flow from operating activities decreased by 12.71% to ¥80,398,241.35 compared to ¥92,102,084.47 in 2015[62]. - The net cash flow from financing activities increased significantly by 1,101.57% to ¥252,960,838.64, primarily due to the public offering of shares[62]. - The total cash and cash equivalents increased by 1,814.86% to ¥297,371,241.54 from ¥15,529,662.98 in the previous year[62]. - The company's cash inflow from financing activities reached ¥458,247,365.94, a 128.03% increase from ¥200,962,212.60 in 2015[62]. - The company's cash outflow from operating activities decreased by 39.87% to ¥294,684,288.29 compared to ¥490,072,157.29 in 2015[62]. - The company's cash outflow from investment activities decreased by 27.88% to ¥38,822,127.66 from ¥53,831,738.44 in the previous year[62]. - The company's cash flow from investment activities showed a net outflow of ¥36,960,526.24, an improvement of 28.90% from the previous year's net outflow of ¥51,980,488.92[62]. - The company's cash and cash equivalents at the end of 2016 amounted to ¥499,057,545.70, representing 43.46% of total assets[65]. Business Operations and Strategy - The company operates in the oilfield engineering technology service industry, focusing on drilling engineering services and aims to enhance its core business capabilities and expand its service offerings[25]. - The company has maintained its business model, which includes a procurement strategy that relies on designated suppliers for certain materials, ensuring quality and efficiency[28]. - The sales model involves various bidding methods, including independent and joint bidding, to secure contracts for engineering services[29]. - The company has developed a comprehensive range of drilling fluid technologies, including 12 different systems to meet diverse customer needs in the oilfield sector[27]. - The company aims to optimize its oilfield engineering service chain to enhance competitiveness and risk resistance, aspiring to become an international oilfield technology service provider[25]. - The company has established a strict supplier management system to ensure the quality of materials and timely delivery, which is critical for operational efficiency[28]. - The company is focusing on stabilizing traditional markets while actively expanding into overseas markets[42]. - The company is well-positioned to benefit from the growing demand for oilfield engineering services in Central Asia due to the Belt and Road Initiative[39]. Research and Development - The company has established a research center for special drilling technology and reservoir modification, enhancing its technological capabilities[36]. - The company has 5 invention patents and 25 utility model patents, with additional patents pending[37]. - The company has budgeted ¥3.4 million for various research and development projects in 2017, including the study and application of oil-based drilling fluids and new PDC drill bit technology[46][51]. - The company emphasizes the importance of talent acquisition and technological innovation, establishing the Beiken Energy Research Institute to attract high-quality research personnel[43]. - The company has implemented strict cost control measures to improve production efficiency and reduce non-productive expenditures[43]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of ¥1.25 per 10 shares, totaling ¥14,650,000 based on 117,200,000 shares[4]. - The company has committed to a cash dividend policy where at least 20% of the distributable profits will be allocated as cash dividends, provided that the company's cash flow supports it[104]. - The cash dividends for 2016 represent 100% of the total profit distribution amount, indicating a strong commitment to returning value to shareholders[108]. - The company has maintained a consistent cash dividend distribution strategy over the past three years, with increasing amounts distributed each year[106]. - The independent directors have fulfilled their responsibilities in the decision-making process for the dividend distribution, ensuring that minority shareholders' interests are protected[104]. Management and Governance - The company has a diverse management team with various educational backgrounds, including master's and bachelor's degrees, and extensive industry experience[165][166][167]. - The company has engaged in various strategic roles across different sectors, enhancing its operational capabilities[169]. - The company has a structured approach to employee management, ensuring a well-rounded workforce[174]. - The company has a clear governance structure with designated roles for supervisors and management, ensuring accountability[170]. - The company maintains complete independence from its controlling shareholder in business, personnel, assets, and finances[182]. Market Position and Competition - The company has a strong position in the domestic oilfield service market, with comprehensive qualifications in drilling, cementing, and other technical services[32]. - The company has a competitive advantage over other private competitors due to its higher market share and technical strengths in the drilling-related oilfield technology service market[86]. - The company is focusing on international markets, particularly in Central Asia and the Middle East, to identify potential breakthroughs and cultivate international talent[88]. - The company faces risks related to market competition and management challenges as it expands into new markets and scales operations[96][99]. Compliance and Audit - The company has maintained compliance with all commitments made during its IPO, with no non-operating fund occupation by major shareholders[114]. - The audit report issued by Tianzhi International Accounting Firm provided a standard unqualified opinion on the financial statements[198]. - The internal control audit report confirmed that the company maintained effective internal controls in all material respects as of December 31, 2016[192]. - The company reported zero significant deficiencies in both financial and non-financial reporting during the evaluation period[191].

Revenue and Profit - Revenue for Q1 2017 was CNY 4,612,063.54, representing a 32.98% increase compared to CNY 3,468,141.14 in the same period last year[8] - Net profit attributable to shareholders was a loss of CNY 8,908,741.16, an improvement of 15.74% from a loss of CNY 10,572,886.90 year-over-year[8] - Basic and diluted earnings per share improved to -0.08 from -0.12, a 33.33% increase[8] - The net profit attributable to shareholders for the first half of 2017 is expected to be between 1,381.8 million and 1,974 million CNY, representing a growth of up to 50% compared to the same period in 2016[22] - The increase in net profit is primarily due to a rise in drilling engineering orders and an increase in completed drilling work during the first half of 2017[22] Cash Flow - Net cash flow from operating activities increased significantly by 259.81%, reaching CNY 45,032,055.63 compared to CNY 12,515,517.18 in the previous year[8] - Cash flow from operating activities surged by 259.81% to $45.03 million, primarily due to increased collections[16] - Cash flow from investing activities decreased significantly by 5171.92% to -$38.88 million, due to increased fixed asset investments[16] Assets and Liabilities - Total assets decreased by 15.64% to CNY 968,569,309.36 from CNY 1,148,202,862.61 at the end of the previous year[8] - The net assets attributable to shareholders decreased by 1.07% to CNY 830,063,920.44 from CNY 839,016,089.82 at the end of the previous year[8] - Accounts receivable decreased by 34.96% to $167.37 million due to increased customer payments[16] - Short-term borrowings were reduced by 100% to $0, as the company repaid bank loans[16] - Accounts payable decreased by 61.51% to $49.40 million, as the company made payments to suppliers as per contract[16] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 15,301[11] - The largest shareholder, Chen Pinggui, holds 16.51% of the shares, totaling 19,350,000 shares[11] Other Financial Metrics - The weighted average return on equity improved to -1.07% from -2.25% year-over-year[8] - The company reported non-recurring gains of CNY 716,445.93 during the reporting period[9] - Financial expenses decreased by 92.08% to $69,699.18, reflecting reduced interest expenses[16] - Other receivables increased by 80.70% to $3.52 million, due to higher bid deposit payments[16] - Non-operating income fell by 76.52% to $235,292.09, mainly due to a decrease in government subsidies received[16] Compliance and Governance - The company has no violations regarding external guarantees during the reporting period[23] - There are no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[24] - The company did not engage in any research, communication, or interview activities during the reporting period[25]

Financial Performance - The company's operating revenue for 2016 was ¥428,036,742.17, a decrease of 41.36% compared to ¥729,941,010.00 in 2015[16] - The net profit attributable to shareholders for 2016 was ¥62,608,871.33, down 4.01% from ¥65,222,936.40 in the previous year[16] - The net profit after deducting non-recurring gains and losses was ¥53,582,663.22, reflecting a decrease of 12.62% from ¥61,322,088.85 in 2015[16] - The net cash flow from operating activities was ¥80,398,241.35, a decline of 12.71% compared to ¥92,102,084.47 in 2015[16] - The basic earnings per share for 2016 was ¥0.710, down 4.05% from ¥0.740 in 2015[16] - The weighted average return on equity for 2016 was 12.82%, a decrease from 14.23% in the previous year[16] - The company achieved a revenue of 428 million yuan and a profit of 62.73 million yuan in 2016[42] - The oil and gas exploration and development segment generated ¥422,602,705.94, accounting for 98.73% of total revenue, with a year-on-year decline of 38.78%[47] - The drilling engineering revenue was ¥345,212,066.81, representing 80.65% of total revenue, down 38.60% from the previous year[47] Cash Flow and Liquidity - The total assets at the end of 2016 amounted to ¥1,148,202,862.61, an increase of 21.79% from ¥942,765,504.80 at the end of 2015[16] - The net assets attributable to shareholders increased by 77.19% to ¥839,016,089.82 from ¥473,505,780.92 in 2015[16] - Cash and cash equivalents increased by 1,814.86% to ¥297,371,241.54, reflecting improved liquidity[60] - Operating cash inflow decreased by 35.57% to ¥375,082,529.64, while operating cash outflow decreased by 39.87% to ¥294,684,288.29[60] - Net cash flow from financing activities increased significantly by 1,101.57% to ¥252,960,838.64, mainly due to public stock issuance[61] Dividend Policy - The company plans to distribute a cash dividend of ¥1.25 per 10 shares, totaling approximately ¥14,650,000 based on 117,200,000 shares[4] - The company has a cash dividend policy that stipulates at least 20% of the distributable profit will be allocated as cash dividends, ensuring shareholder returns while maintaining operational liquidity[100] - The company plans to distribute cash dividends of 1.25 yuan per 10 shares for the 2016 fiscal year, amounting to a total cash dividend of 14.65 million yuan, which represents 23.40% of the net profit attributable to shareholders[105] Market Position and Strategy - The company aims to enhance its core drilling services and directional well technology to strengthen its competitive position in the oilfield service industry[25] - The company continues to optimize its oilfield engineering service supply chain to improve service levels and risk resistance[25] - The company is committed to providing comprehensive oil and gas exploration and development engineering solutions, aiming for international expansion[25] - The company has a strong position in the Xinjiang oilfield market, with comprehensive qualifications for various oilfield engineering services[32] - The company plans to expand its market presence beyond Xinjiang, targeting regions such as Central Asia, the Middle East, and South America, while consolidating its traditional market in Xinjiang[84] Research and Development - The company has established long-term partnerships with universities and research institutes, enhancing its R&D capabilities[36] - The company holds 5 invention patents and 25 utility model patents, with 13 additional invention patents in the application or review stage[37] - The company plans to develop a downhole measurement instrument for field applications, with initial testing completed and goals set for mass production[58] - The number of R&D personnel remained stable at 12, with their proportion of total employees increasing from 1.00% to 1.33%[59] Operational Efficiency - The company utilizes a strict supplier management system to ensure quality and timely supply of materials, which is critical for operational efficiency[28] - The company employs various bidding methods for project contracts, including independent and joint bidding, to secure service projects[29] - The company implemented strict cost control measures, aiming for a 30% reduction in five specific expense categories compared to the previous year[43] - Sales expenses decreased by 50.36% to ¥2,414,218.07 due to a reduction in sales personnel and lower employee wages and office expenses[57] - Management expenses decreased by 27.06% to ¥48,591,701.99 as a result of workforce reduction and strict cost control measures[57] Corporate Governance - The company has established a comprehensive internal control management system to protect shareholder rights and ensure fair information disclosure[133] - The company maintains complete independence from its controlling shareholder in terms of business operations, assets, and financial management[179] - The company has a structured approach to governance, ensuring that remuneration is aligned with performance metrics[167] - The independent directors actively participated in board meetings, with attendance recorded at 4 meetings, and no objections raised against company matters[182] Risks and Challenges - The company recognizes the risks associated with fluctuations in oil and gas exploration investment, which directly impact the demand for oilfield technology services[91] - The company relies heavily on major clients, with revenue from PetroChina Group accounting for 86.08%, 76.05%, and 86.20% of total revenue from 2014 to 2016, indicating a significant dependency risk[92] - The company has a low risk of bad debts due to the strong creditworthiness of its major clients and long-term partnerships[95] Shareholder Structure - The largest shareholder, Chen Pinggui, holds 16.51% of the shares, totaling 19,350,000 shares[144] - The second and third largest shareholders, Wu Yunyi and Zeng Jianwei, each hold 4.18%, with 4,900,000 shares each[144] - The company’s shareholder structure changed, with the largest shareholder's stake decreasing from 22.01% to 16.51% post-issuance[141] Audit and Compliance - The audit report issued by Tianzhi International CPA provided a standard unqualified opinion on the financial statements for the year ended December 31, 2016[195] - The internal control audit report confirmed that the company maintained effective internal controls in all material aspects as of December 31, 2016[189] - The company did not face any major lawsuits or arbitration matters during the reporting period[117]