Financial Performance - The company's operating revenue for the first half of 2022 was ¥319,989,269.08, a decrease of 11.58% compared to ¥361,913,208.90 in the same period last year[22]. - The net profit attributable to shareholders was ¥12,100,768.69, down 32.70% from ¥17,981,061.55 in the previous year[22]. - The net profit after deducting non-recurring gains and losses increased significantly by 580.77% to ¥9,447,389.57 from ¥1,387,744.24[22]. - The net cash flow from operating activities was ¥5,914,443.04, a decline of 79.21% compared to ¥28,443,373.94 in the same period last year[22]. - Basic earnings per share decreased by 35.14% to ¥0.0227 from ¥0.0350 in the same period last year[22]. - The diluted earnings per share also fell by 35.33% to ¥0.0227 from ¥0.0351[22]. - The weighted average return on net assets was 1.24%, down from 1.96% in the previous year[22]. - The company achieved operating revenue of 319.99 million yuan, a year-on-year decrease of 11.58%[54]. - The net profit attributable to the parent company was 12.10 million yuan, down 32.70% year-on-year, while the net profit after deducting non-recurring gains and losses increased by 580.77% to 9.45 million yuan[54]. - Domestic business revenue for the first half of 2022 was 96.52 million yuan, a decline of 16.66% year-on-year, but the business has been operating at full capacity since Q3[55]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,741,569,716.32, reflecting a growth of 5.12% from ¥1,656,718,479.97 at the end of the previous year[22]. - The net assets attributable to shareholders increased by 14.23% to ¥1,077,117,209.31 from ¥942,972,232.98 at the end of the previous year[22]. - The company's total liabilities decreased to CNY 648,992,198.56 from CNY 699,021,353.75, a decline of approximately 7.2%[185]. - The equity attributable to shareholders increased to CNY 1,077,117,209.31 from CNY 942,972,232.98, representing a growth of about 14.2%[185]. Cash Flow - The company reported a net cash inflow from financing activities of ¥124,288,083.42, a substantial increase of 760.03%, mainly due to funds raised from a private placement of shares[63]. - Cash and cash equivalents increased by 119.80% to ¥110,678,513.78, driven by the funds raised from the private placement[63]. - The company's cash flow from operating activities saw a significant decline of 79.21% to ¥5,914,443.04, mainly due to a decrease in cash received from sales[63]. - Cash inflow from financing activities increased to CNY 175,999,990.20, up 46% from CNY 120,725,198.96 in the first half of 2021[199]. - The total cash and cash equivalents at the end of the period reached CNY 207,962,044.15, compared to CNY 98,878,882.68 at the end of the first half of 2021, marking an increase of 110%[199]. Market and Industry Outlook - Global oil demand is expected to grow by 3.1 million barrels per day in 2022, reaching a total demand of 100.03 million barrels per day, driven by recovering economic activities[32]. - As of June 2022, U.S. crude oil production reached 12.1 million barrels per day, with shale oil accounting for approximately 72% of total production, highlighting the shift towards unconventional oil and gas development[33]. - In the first half of 2022, China's crude oil production was 103 million tons, a year-on-year increase of 4.0%, while natural gas production reached 109.6 billion cubic meters, up 4.9%[35]. - China's crude oil import dependency stood at 71% in 2022, with imports totaling 253 million tons, indicating a high reliance on foreign oil supplies[35]. - The "14th Five-Year Plan" aims for stable oil production at 200 million tons and rapid natural gas production growth to over 230 billion cubic meters by 2025[36]. - The company is positioned to benefit from the growing demand for oil and gas services as unconventional oil and gas exploration accelerates in China[34]. Research and Development - The company holds 142 patents, including 15 international invention patents and 43 domestic invention patents, which support continuous growth and technological advancement in the industry[53]. - The company has successfully introduced the US core technology of pumped perforation into the domestic market, achieving international leading levels in shale oil and gas development[53]. - Research and development expenses decreased by 22.90% to ¥4,402,392.68, indicating a reduction in investment in new technologies[63]. - The company has established a core technology system around composite perforation, including optimization design software and testing technology, ensuring a comprehensive solution for product sales and service[42]. Corporate Governance and Social Responsibility - The company has established a sound corporate governance structure, ensuring clear responsibilities and coordination among the shareholders, board of directors, supervisory board, and management[116]. - The company emphasizes shareholder rights protection by providing timely and accurate information disclosure, enhancing transparency and trust with investors[114]. - The company has actively participated in social responsibility initiatives, including community support during the pandemic and contributions to rural revitalization projects[118]. - The company has strengthened tax compliance and risk management, emphasizing lawful operations as a fundamental principle of its business[116]. Risks and Challenges - The company faces risks from ongoing COVID-19 pandemic uncertainties, which could severely impact the oil industry and overall economic conditions[96]. - Oil price volatility poses a risk to exploration and development investment plans, potentially reducing demand for the company's products and services[97]. - Increased competition from major domestic competitors could lead to a loss of market share if the company fails to innovate and improve service quality[98]. - The company is expanding into clean energy and CCUS businesses, which are still in the early stages and face implementation uncertainties[103].

通源石油科技集团股份有限公司 2022 年第一季度报告全文 证券代码：300164 证券简称：通源石油 公告编号：2022-043 通源石油科技集团股份有限公司 2022 年第一季度报告 本公司及董事会全体成员保证信息披露内容的真实、准确、完整，没有虚假记载、误 导性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在 虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告 中财务信息的真实、准确、完整。 3.第一季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业收入（元） | 139,760,011.96 | 184,677,114.70 | -24.32% | | 归属于上市公司股东的净利润（元） | 1,782,662.17 | 6,3 ...

Financial Performance - The company's operating revenue for 2021 was ¥747,400,430.78, representing an increase of 18.32% compared to ¥631,696,370.92 in 2020[22]. - The net profit attributable to shareholders for 2021 was ¥14,585,027.55, a significant turnaround from a loss of ¥1,052,843,408.42 in 2020, marking a 101.39% improvement[22]. - The net cash flow from operating activities reached ¥81,445,688.82, a remarkable increase of 1,939.89% from ¥3,992,645.31 in the previous year[22]. - The total assets at the end of 2021 were ¥1,656,718,479.97, a decrease of 3.25% from ¥1,712,307,746.05 at the end of 2020[22]. - The net assets attributable to shareholders increased by 3.18% to ¥942,972,232.98 from ¥913,903,643.92 in 2020[22]. - The basic earnings per share for 2021 were ¥0.03, compared to a loss of ¥2.07 per share in 2020, reflecting a 101.45% improvement[22]. - The weighted average return on equity was 1.57% in 2021, a significant recovery from -72.64% in 2020, indicating a 74.21% increase[22]. - The company reported a net profit after deducting non-recurring gains and losses of -¥30,422,014.92 for 2021, an improvement of 97.14% from -¥1,062,903,066.91 in 2020[22]. - The company reported a total revenue of 78.99 million in 2021, showing a significant increase compared to the previous year[141]. - The company reported a total revenue of 588.89 million in the fiscal year 2021[148]. Cash Flow and Investments - The net cash flow from investment activities improved by 99.37%, primarily due to a 72.14% reduction in cash outflow related to previous equity acquisitions[88]. - The net cash flow from financing activities decreased by 170.27%, attributed to a 75.96% decline in cash inflow from financing activities, as no new equity was raised during the period[88]. - The company reported an investment income of ¥11,110,736.16, accounting for 94.19% of the total profit, primarily from the sale of its US subsidiary APIH[90]. - The company reported a significant increase in cash and cash equivalents, with a net increase of approximately ¥48.76 million, reversing a previous year's decline[87]. - The company’s operating cash inflow increased by 14.62% to approximately ¥810.52 million in 2021, driven by a 13.67% increase in cash received from sales[87]. Market and Industry Trends - The average price of Brent crude oil in 2021 was $70.91 per barrel, a year-on-year increase of 69.7%[34]. - The average price of WTI crude oil in 2021 was $68.12 per barrel, reflecting a year-on-year increase of 73.4%[34]. - The company anticipates that global oil and gas demand will fully recover from the pandemic by 2023, with continued growth expected until 2035[34]. - The oil service industry is expected to benefit from rising oil prices, which have recently surpassed $100 per barrel, encouraging increased investment in exploration and development[43]. - The global demand for natural gas is projected to increase by one-third by 2050 compared to 2018 levels, indicating significant growth potential in the market[40]. Strategic Focus and Development - The company is focusing on the development of unconventional oil and gas resources, which are expected to become a key strategic replacement in the industry[35]. - The company aims to expand its market presence in unconventional oil and gas development, particularly in shale oil and gas sectors[39]. - The company plans to enter the clean energy sector in response to national methane reduction requirements, establishing a joint venture in Sichuan[60]. - The company is focusing on the development of tight oil and gas wells, with a strategy to enhance industrial output through segmented hydraulic fracturing techniques[86]. - The company is committed to building a flexible compensation management system linked to performance assessments to enhance talent development[115]. Research and Development - The company has developed leading technologies in perforation, directional drilling, and hydraulic fracturing, enhancing its competitive edge in the oil and gas service industry[44][45]. - The company is actively involved in research and development to improve its technological capabilities in the oil and gas sector[141]. - The company will increase R&D investment to innovate service equipment and processes, aiming for automation and localization of tools[111]. - The company has established a comprehensive training system, focusing on enhancing the skills of technical personnel and providing various training programs for different roles[160]. Governance and Compliance - The company has established a sound corporate governance structure, ensuring clear responsibilities and coordination among shareholders, the board of directors, the supervisory board, and management[172]. - The company emphasizes timely and accurate information disclosure to enhance transparency and investor communication, adhering to relevant laws and regulations[172]. - The company maintained a high attendance rate at board meetings, with most directors participating either in person or via communication[151]. - The company has independent financial management, adhering to accounting standards and maintaining its own bank accounts[135]. - The company has a structured approach to governance, with specialized committees overseeing key areas such as audit and risk management[154]. Risks and Challenges - The company has acknowledged uncertainties regarding its ability to continue as a going concern, as indicated in the audit report[22]. - The company faces goodwill impairment risks from its acquisitions, and is focusing on synergistic development and management of acquired companies to enhance profitability[123]. - The company is focused on mitigating risks from the ongoing COVID-19 pandemic by prioritizing domestic unconventional oil and gas development and ensuring cash flow safety[117]. - The company is enhancing management and financial controls for its overseas operations, particularly for The Wireline Group in the U.S., to mitigate geopolitical and operational risks[120]. Employee and Organizational Structure - The total number of employees at the end of the reporting period is 558, with 287 in the parent company and 271 in major subsidiaries[157]. - The professional composition includes 297 production personnel, 57 sales personnel, 78 technical personnel, 20 financial personnel, 44 administrative personnel, 40 management personnel, and 22 others[157]. - The company has a structured compensation program for senior management based on performance metrics tied to annual business plans[145]. - Employee welfare is prioritized through a comprehensive compensation assessment system and ongoing training programs to improve skills and performance[173].

Financial Performance - The company's operating revenue for Q3 2021 was CNY 163,259,617.91, an increase of 18.99% compared to the same period last year[3] - The net profit attributable to shareholders was CNY -2,592,712.70, a decrease of 95.68% year-on-year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -3,263,140.88, a decrease of 94.68% compared to the previous year[3] - The net profit for Q3 2021 was ¥13,751,748.52, a significant recovery from a net loss of ¥137,890,622.00 in the same period last year[26] - Operating profit for Q3 2021 was ¥13,397,606.67, compared to an operating loss of ¥168,430,046.99 in Q3 2020[26] - Total revenue from operating activities was ¥494,761,817.00, slightly down from ¥529,452,860.21 in the previous year[29] - The total comprehensive income for Q3 2021 was ¥789,006.86, recovering from a loss of ¥165,418,525.73 in the previous year[27] - Basic earnings per share for Q3 2021 were ¥0.0300, compared to a loss per share of ¥0.2531 in Q3 2020[27] Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,641,718,794.63, a decrease of 4.12% from the end of the previous year[4] - Cash and cash equivalents as of September 30, 2021, were CNY 84,534,471.86, down from CNY 89,091,063.53 at the end of 2020, a decrease of 6.0%[21] - Accounts receivable decreased to CNY 340,191,501.31 from CNY 376,486,865.31, a decline of about 9.6%[21] - Inventory increased to CNY 164,224,708.33 from CNY 157,561,008.94, an increase of approximately 4.2%[21] - Total liabilities decreased to CNY 686,412,492.79 from CNY 749,631,398.49, a reduction of approximately 8.4%[23] - The company's total equity as of September 30, 2021, was CNY 955,306,301.84, slightly down from CNY 962,676,347.56 at the end of 2020[23] - The company incurred research and development expenses of ¥10,066,655.63 in Q3 2021, down from ¥18,285,841.00 in the same period last year[26] - The company has a short-term loan liability of 174,216,840.72 and accounts payable of 225,118,569.85, indicating significant short-term financial obligations[34] Cash Flow - The company's cash flow from operating activities for the year-to-date was CNY 8,753,088.09, an increase of 125.57%[3] - The company reported a net cash flow from operating activities of ¥8,753,088.09, a turnaround from a negative cash flow of ¥34,237,333.35 in the same quarter last year[29] - Investment activities generated a net cash flow of ¥37,447,693.44, compared to a negative cash flow of ¥148,765,952.58 in Q3 2020[29] - Cash received from other operating activities increased by 94.86% year-on-year, mainly due to an increase in government subsidies[13] - Cash received from the disposal of subsidiaries and other business units increased by 100% year-on-year, due to proceeds from the disposal of equity in an overseas subsidiary[13] - Cash received from other investment activities rose by 123.48% year-on-year, mainly from the maturity of fixed-term bank deposits[13] - Cash paid for various taxes decreased by 92.04% year-on-year, attributed to a reduction in corporate income tax and turnover tax payments[13] - Cash paid for dividends, profits, or interest decreased by 80.56% year-on-year, as no dividends were distributed in the current period[13] Financial Management - The company's financial expenses decreased by 94.39% to CNY 1,664,937.32 compared to the same period last year[11] - The company’s financial expenses decreased significantly to ¥1,664,937.32 from ¥29,680,264.95 in Q3 2020, indicating improved financial management[26] - The company has implemented the new leasing standards effective January 1, 2021, resulting in adjustments to the financial statements[36] Future Outlook - The company plans to continue focusing on high-quality development and market expansion strategies in the upcoming quarters[20] - The report indicates ongoing efforts in new product development and technology innovation to enhance competitive advantage[20] - The company has not disclosed any new product developments or market expansion strategies in the current report[37] Miscellaneous - The third-quarter report for 2021 was not audited, indicating that the figures may be subject to change upon final audit[36] - The impact of exchange rate changes on cash and cash equivalents increased by 90.56% year-on-year, due to fluctuations in foreign currency exchange rates[13] - The company's long-term receivables increased by 5842.97% to CNY 106,637,485.00 compared to the beginning of the year[9] - The investment income increased by 5424.99% to CNY 20,932,975.17 compared to the previous year[11] - The company reported a significant increase in interest receivables by 907.75% to CNY 1,904,375.33 compared to the beginning of the year[9]

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 361,913,208.90, representing a 6.88% increase compared to CNY 338,620,088.49 in the same period last year[21]. - The net profit attributable to shareholders was CNY 17,981,061.55, a significant turnaround from a loss of CNY 68,235,250.00, marking a 126.35% improvement[21]. - The net cash flow from operating activities was CNY 28,443,373.94, compared to a negative cash flow of CNY 37,839,155.73, reflecting a 175.17% increase[21]. - Basic earnings per share increased to CNY 0.0350 from a loss of CNY 0.1356, representing a 125.81% improvement[21]. - The company achieved operating revenue of 361.91 million yuan, a year-on-year increase of 6.88%[43]. - The net profit attributable to shareholders was 17.98 million yuan, marking a turnaround with a year-on-year growth of 126.35%[44]. - The cash flow from operating activities reached 28.44 million yuan, up 175.17% year-on-year, indicating improved cash management[44]. - The company reported a net profit of 10,786.33 million yuan for the first half of 2021, representing a decrease of 1,505.3 million yuan compared to the previous period, with a profit margin of 85.47%[64]. - The company reported a net profit for the first half of 2021 was CNY 16,617,477.77, a significant recovery from a net loss of CNY 20,016,129.72 in the same period of 2020[154]. - The total profit amounted to CNY 18,817,664.74, a recovery from a total loss of CNY 23,210,688.34 in the previous year[154]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,634,025,661.68, down 4.57% from CNY 1,712,307,746.05 at the end of the previous year[21]. - The total assets at the end of the reporting period amounted to 1,872.9 million yuan, with a year-on-year increase of 4.53%[166]. - The total liabilities at the end of the reporting period were 919.30 million yuan, which is a decrease of 15.28% compared to the previous year[166]. - The company's total liabilities decreased to CNY 729,421,127.91 from CNY 778,733,302.70, reflecting a reduction of 6.3%[150]. - The company's total assets decreased from ¥1,712,307,746.05 to ¥1,634,025,661.68, a decline of about 4.6%[143]. Market and Business Strategy - The company focuses on oil and gas field development solutions and has established a complete oil engineering technology service industry chain, enhancing its market competitiveness[28]. - The company is actively involved in the development of unconventional oil and gas resources in major basins across China, including the Songliao and Ordos basins[37]. - The company has adjusted its strategic direction to reduce overseas revenue share while increasing investment in clean energy[44]. - The company plans to establish a joint venture in Sichuan to develop natural gas recovery business, aligning with China's carbon neutrality strategy[44]. - The company is focusing on unconventional oil and gas development, particularly in key basins like Ordos and Sichuan, with significant production targets set for 2025 and 2035[38]. Research and Development - The company holds a total of 121 patents, including 13 international invention patents and 37 domestic invention patents[41]. - The R&D expenditure for the first half of 2021 was 506.69 million yuan, indicating a commitment to innovation and technology advancement[164]. - Research and development expenses were CNY 5,709,701.05, down 36.19% from CNY 8,948,069.55 due to delays in some R&D projects[47]. - The company aims to enhance its product offerings through ongoing research and development initiatives[176]. Corporate Governance and Compliance - The company has established a sound corporate governance structure, ensuring clear responsibilities and coordination among various governance bodies[84]. - The company emphasizes timely and accurate information disclosure to enhance transparency and investor communication[85]. - The company adheres to labor laws and has implemented a comprehensive employee welfare and training system[86]. - The company has committed to lawful operations and tax compliance, enhancing tax management and reducing risks[87]. - The company has established a board of directors and various committees to oversee strategic, audit, and compensation matters, ensuring effective governance[191]. Shareholder and Equity Information - The total number of common shareholders at the end of the reporting period is 24,601[125]. - Zhang Guoan holds 14.74% of shares, with a total of 15,673,984 shares, having reduced his holdings by 434,000 shares during the reporting period[126]. - The company reported a total approved external guarantee amount of 56,500,000 RMB during the reporting period, with actual guarantees amounting to 21,827,000 RMB[108]. - The company plans to repurchase and cancel 682,500 unvested restricted stocks due to not meeting performance assessment requirements for 2020[80]. - The company’s stock structure shows a significant shift towards unrestricted shares, which may enhance liquidity for investors[119]. Cash Flow Management - The company reported a net increase in cash and cash equivalents of CNY 50,354,751.81, a 220.85% improvement from CNY -41,665,528.72 in the same period last year[47]. - The company received CNY 2,691,959.06 in tax refunds during the first half of 2021, contributing to cash inflows[157]. - The net cash flow from operating activities was ¥31,773,008.02, a decrease of ¥78,735,913.06 compared to the previous period[161]. - The net cash flow from investing activities was -¥4,611,818.03, improving from -¥132,028,673.35 in the prior period[161]. - The company reported a decrease in cash outflows for purchasing goods and services, totaling CNY 145,496,453.27, down from CNY 181,813,346.98 in the first half of 2020[157]. Risks and Challenges - The company faces risks from fluctuating oil prices, which could impact exploration and development investments, and plans to adopt flexible market strategies to mitigate these risks[68]. - The company acknowledges the seasonal nature of its business, with a significant portion of domestic revenue and profits expected in the second half of the year, and is working to manage this seasonal impact[72]. - The company is addressing goodwill impairment risks associated with its acquisitions by improving management and integration of acquired companies[73]. - The overall financial health of the company is under review, with strategies being developed to address recent losses and improve profitability[174].

Financial Performance - The company's operating revenue for Q1 2021 was ¥184,677,114.70, a decrease of 12.99% compared to ¥212,259,348.79 in the same period last year[7] - Net profit attributable to shareholders was ¥6,333,080.25, representing a significant increase of 138.76% from a loss of ¥16,340,827.30 in the previous year[7] - The net profit after deducting non-recurring gains and losses was ¥4,097,494.81, up 124.97% from a loss of ¥16,406,752.47 in the same period last year[7] - The net cash flow from operating activities was ¥10,194,802.82, a substantial increase of 232.27% compared to a negative cash flow of ¥7,707,472.32 in the previous year[7] - Basic earnings per share were ¥0.0123, compared to a loss of ¥0.0332 per share in the same period last year, marking an increase of 137.05%[7] - The company reported a total comprehensive income of CNY 16,847,676.11 for the quarter, contrasting with a comprehensive loss of CNY 4,560,515.73 in the previous year[56] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,664,656,885.12, a decrease of 2.78% from ¥1,712,307,746.05 at the end of the previous year[7] - The company's current assets totaled CNY 708,852,522.60, down from CNY 759,331,841.97 at the end of 2020, indicating a decrease of about 6.6%[41] - Total liabilities decreased to CNY 694,322,230.49 from CNY 749,631,398.49, reflecting a decrease of about 7.4%[43] - The company's long-term borrowings increased slightly to CNY 194,294,120.00 from CNY 193,772,500.00, a marginal increase of about 0.3%[43] - The total equity remained stable at CNY 970,334,654.63 as of March 31, 2021, compared to CNY 962,676,347.56 at the end of 2020[43] Revenue Sources and Changes - The company reported non-recurring gains totaling ¥2,235,585.44, which included government subsidies and other income[8] - Other income increased by 256.62% compared to the previous year, primarily due to an increase in government subsidies received[20] - Investment income decreased by 72.84% year-on-year, as there were no distributions from the Shenzhen Dongzheng Tongyuan Overseas Oil Industry Investment Fund during the reporting period[20] - Cash received from other operating activities increased by 238.21% year-on-year, mainly due to higher government subsidies[22] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 24,261[10] - The top shareholder, Zhang Guoan, held 14.74% of the shares, with 60,041,952 shares pledged[10] Operational Insights - Domestic business revenue increased by 53.16% year-on-year, fully recovering to pre-pandemic levels[25] - The company has resumed normal operations in overseas markets, including Algeria, Iraq, and Kazakhstan, and secured new contracts for coiled tubing services in Algeria[26] - The company plans to focus on domestic unconventional oil and gas core product lines, halting investments in North American business to mitigate the impact of severe overseas pandemic conditions[29] - The company is enhancing its core competencies in perforation, rotary steering, and hydraulic fracturing technologies to strengthen its market position[31] Risk Management - Risks include the ongoing impact of COVID-19, fluctuations in oil prices, and intensified market competition, which the company plans to address through flexible strategies and enhanced R&D efforts[30][31] - The company is committed to improving management and operational planning to mitigate seasonal performance disparities between the first and second halves of the year[32] - The company is actively managing goodwill risks associated with its acquisitions to ensure the profitability of acquired entities[32] Cash Flow Management - The company's cash flow from operating activities was 10.19 million yuan, a year-on-year increase of 232.27%, indicating improved cash management[26] - The net cash flow from operating activities increased to ¥20,010,054.77 from a negative ¥38,188,172.29 in the previous period, marking a significant turnaround[62] - Cash inflow from operating activities totaled ¥52,278,896.58, compared to ¥27,695,643.67 in the prior period, reflecting an increase of approximately 88.5%[62] - The net cash flow from investment activities was ¥37,781,823.00, a recovery from a negative cash flow of ¥152,203,663.46 in the previous period[63] Financial Management - Financial expenses decreased by 183.16% year-on-year, attributed to changes in foreign exchange gains and losses[20] - The company incurred financial expenses of CNY -4,176,823.01, a decrease from CNY 6,313,174.36 in the previous year, indicating improved financial management[54]

Financial Performance - The company's operating revenue for 2020 was ¥631,696,370.92, a decrease of 59.40% compared to ¥1,555,773,923.80 in 2019[20]. - The net profit attributable to shareholders was -¥1,052,843,408.42, representing a decline of 2,432.64% from a profit of ¥45,135,224.43 in 2019[20]. - The net cash flow from operating activities was ¥3,992,645.31, down 97.65% from ¥170,005,662.32 in the previous year[20]. - The total assets at the end of 2020 were ¥1,712,307,746.05, a decrease of 42.01% from ¥2,952,825,271.78 at the end of 2019[20]. - The company's basic and diluted earnings per share were both -¥2.07, a drop of 2,170.00% from ¥0.10 in 2019[20]. - The weighted average return on equity was -72.64%, down 75.21% from 2.57% in 2019[20]. - The company reported a total of ¥625,819,109.38 in operating revenue after deductions for 2020, compared to ¥1,547,685,342.00 in 2019[21]. - The company experienced significant losses in each quarter, with the fourth quarter net profit attributable to shareholders at -¥924,640,608.41[23]. - The company's operating revenue for the year was 631,696,370.92, representing a year-on-year increase of 10.24%[72]. - The operating costs decreased by 59.40% compared to the previous year, amounting to 567,040,399.47[72]. - The gross profit margin decreased by 24.62% year-on-year, indicating a challenging cost environment[72]. Strategic Direction - The company reported a strategic shift towards domestic markets, halting investments in North America and increasing investments in unconventional oil and gas core product lines, including rotary steering and perforation[7]. - The company plans to enhance its core competitiveness by increasing investment in its core product lines and improving cash flow management to mitigate the impact of the pandemic[7]. - The company is adopting flexible market strategies and enhancing R&D efforts to address the risks associated with fluctuating oil prices[8]. - The company is focused on optimizing management and reducing costs to enhance efficiency in response to market volatility[8]. - The company is actively involved in the development of unconventional oil and gas resources, which are expected to drive future growth in the oil and gas service market[41]. - The company plans to enhance its core product lines in perforation, rotary steering, and hydraulic fracturing, focusing on unconventional oil and gas development in key domestic regions[109]. - The company aims to increase R&D investment to innovate service equipment and tools, enhancing the automation and intelligence of technical services[110]. - The company will accelerate the digital transformation of its main business, including the development of integrated software for unconventional oil and gas reservoirs[111]. Market Conditions - The company experienced a significant decline in performance due to the COVID-19 pandemic, with a substantial drop in oil demand and a sharp decrease in international oil prices[5]. - The company anticipates a rebound in oil demand and prices as the global pandemic situation improves in 2021, leading to a recovery in its business operations[5]. - The company acknowledges the uncertainty surrounding the effectiveness and uptake of COVID-19 vaccines, which could impact future operations[7]. - The company faces risks from the ongoing COVID-19 pandemic, which could impact oil service demand if the situation worsens[114]. - The company is exposed to risks from fluctuating oil prices, which could affect exploration and development investments by oil companies[115]. - The company recognizes the risk of intensified market competition, particularly from state-owned oil service companies, and plans to strengthen its competitive edge through innovation[116]. Research and Development - The company has focused on enhancing its core technologies in perforation and rotary steering, which are critical for unconventional oil and gas development[62]. - The company has made significant investments in R&D to strengthen its core competitiveness, particularly in perforation and hydraulic fracturing technologies[62]. - The company's R&D investment in 2020 amounted to approximately ¥25.78 million, representing 4.08% of total revenue, a significant increase from 1.14% in 2019[81]. - The number of R&D personnel increased to 145 in 2020, accounting for 22.66% of the total workforce, up from 17.29% in 2019[81]. - The company completed various R&D projects, including the successful completion of ground tests for modular perforating guns, aimed at improving operational efficiency[80]. - The company has developed new technologies such as soluble bridge plugs, which can self-degrade post-operation, reducing drilling costs and risks[80]. - The establishment of a digital center and integration of digital technologies like big data and AI are aimed at enhancing operational efficiency and reducing costs[59]. Corporate Governance - The company has established a sound corporate governance structure, ensuring clear responsibilities and coordination among various governance bodies[168]. - The company is committed to improving internal control management and enhancing governance to ensure a healthy financial ecosystem[112]. - The company has implemented measures to strengthen management and financial control over its overseas operations to mitigate geopolitical risks[118]. - The company has not engaged in any significant related party transactions during the reporting period[151]. - The company has not reported any penalties or rectification situations during the reporting period[144]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 23,256, down from 24,261 at the end of the previous month[193]. - Zhang Guoan, the largest shareholder, holds 15.59% of the shares, with a total of 80,055,936 shares, having decreased by 7,559,281 shares during the reporting period[194]. - The second-largest shareholder, Shaanxi Private Economic High-Quality Development Fund, holds 6.65% of the shares, totaling 34,127,777 shares, with no change during the reporting period[194]. - The company has not experienced any changes in its controlling shareholder during the reporting period[196]. - The actual controller, Zhang Guoan, has been with the company since 1997 and currently serves as the chairman and president[198]. Dividend Policy - The company did not declare any cash dividends or stock bonuses for the reporting period[9]. - The company distributed a cash dividend of 0.8 yuan per 10 shares, totaling 41,082,423.12 yuan for the 2019 fiscal year[124]. - The company did not propose any cash dividend distribution for the 2020 fiscal year, despite having a positive profit available for distribution[129]. Operational Adjustments - The company has significantly reduced operational costs and optimized its business structure by eliminating unprofitable projects and investing in competitive and profitable businesses[35]. - The company has implemented cost-cutting measures, including reducing capital expenditures and operational costs, to enhance cash flow management[56]. - The company has maintained strong customer relationships in North America, with over 200 clients, including major oil companies like EOG and Apache[64]. - The company has expanded its market presence from domestic to North America, North Africa, Central Asia, and the Middle East, enhancing the synergy of domestic and international operations[48].

Financial Performance - Operating revenue for the reporting period was CNY 137,201,910.49, down 67.33% year-on-year, and CNY 475,821,998.98 for the year-to-date, down 58.21%[7] - Net profit attributable to shareholders was a loss of CNY 59,967,550.01, representing a decrease of 235.15% year-on-year, with a year-to-date loss of CNY 128,202,800.01, down 256.47%[7] - Basic earnings per share for the reporting period were -CNY 0.1329, a decrease of 235.20% year-on-year, and -CNY 0.2531 for the year-to-date, down 239.37%[7] - The company's operating revenue for the first nine months of 2020 decreased by 58.21% year-on-year, primarily due to the impact of the COVID-19 pandemic, which slowed operations and reduced construction volume[22] - The company's operating costs decreased by 46.88% year-on-year, mainly due to the decline in operating revenue[22] - The company's financial expenses surged by 462.22% year-on-year, primarily due to increased foreign exchange losses[22] - The company expects a significant decline in cumulative net profit for 2020 compared to the previous year due to the impact of the COVID-19 pandemic and a sharp drop in global oil demand and prices[30] - The company anticipates a substantial risk of asset impairment for goodwill, oil and gas assets, inventory, and fixed assets by the end of 2020, which will significantly affect net profit[31] Cash Flow and Assets - The net cash flow from operating activities was CNY 3,601,822.38, a decline of 93.57% compared to the same period last year, and a year-to-date cash flow of -CNY 34,237,333.35, down 146.94%[7] - Cash received from sales of goods and services decreased by 47.46% year-on-year, corresponding to the decline in operating revenue and accounts receivable collections[23] - Cash paid for purchasing goods and services decreased by 49.10% year-on-year, due to a reduction in construction activity[23] - Operating cash inflow for the current period was CNY 98,225,255.71, an increase of 5.0% from CNY 93,377,808.33 in the previous period[70] - Net cash flow from operating activities was negative CNY 55,356,413.67, compared to a positive CNY 13,716,279.59 in the previous period[70] - Cash inflow from investment activities totaled CNY 51,156,207.18, down 34.9% from CNY 78,767,456.85 in the previous period[70] - Cash outflow from investment activities was CNY 161,917,210.78, a decrease of 25.7% from CNY 218,118,336.82 in the previous period[70] - Net cash flow from financing activities was CNY 200,187,099.95, an increase of 105.3% from CNY 97,570,006.41 in the previous period[72] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,026[11] - The largest shareholder, Zhang Guoan, held 15.59% of the shares, with 80,055,936 shares, of which 65,711,413 shares were pledged[11] - The cash dividend distribution plan for the 2019 fiscal year was approved, with a total cash dividend of RMB 41,082,423.12 distributed to shareholders, amounting to RMB 0.80 per 10 shares[34] Asset Management and Liabilities - Total assets at the end of the reporting period were CNY 2,774,085,055.54, a decrease of 6.05% compared to the end of the previous year[7] - The company’s retained earnings decreased by 49.10% compared to the beginning of the year, mainly due to losses incurred and cash dividends distributed during the period[20] - Other payables decreased by 95.28% compared to the beginning of the year, primarily due to payments made for the acquisition of remaining equity in a subsidiary[20] - Total liabilities decreased to CNY 792,504,891.72 from CNY 1,079,900,590.24, a reduction of about 27%[43][44] - The company's equity increased to CNY 1,981,580,163.82 from CNY 1,872,924,681.54, reflecting an increase of about 6%[44] Research and Development - The company's R&D expenses increased by 47.97% year-on-year, reflecting increased investment to build core competitive capabilities[22] - The company reported a significant increase in research and development expenses, totaling ¥18,285,841.00, up 47.9% from ¥12,357,804.63 in the previous year[60] Strategic Developments - There were no significant changes in the company's strategy or new product developments mentioned in the report[12] - The company plans to terminate the acquisition of a 71.011% stake in Yilong Hengye due to performance declines caused by the pandemic affecting overseas projects[25] - The company confirmed that Yilong Hengye's overseas projects have gradually resumed work, and there have been no contract terminations due to the pandemic[26] - The company is closely monitoring the development of the COVID-19 pandemic and its impact on financial status and operational results[30] - The company has implemented strategies to strengthen cost control and enhance core competitiveness in response to the challenges posed by the pandemic and low oil prices[32] - The company predicts that as oil prices gradually recover and the global economy normalizes, the oil industry will begin to rebound, leading to a recovery in business operations[33] Compliance and Governance - The company has not engaged in any non-compliant external guarantees during the reporting period[35] - There are no instances of non-operating fund occupation by controlling shareholders or related parties during the reporting period[36] - The company has received commitments from shareholders to avoid competition and ensure compliance with industry regulations[29] - The company is committed to strictly adhering to accounting standards and will conduct comprehensive impairment testing on assets showing signs of impairment[31]

Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥338.62 million, a decrease of 52.88% compared to ¥718.63 million in the same period last year[21]. - The net profit attributable to shareholders was a loss of ¥68.24 million, representing a decline of 281.65% from a profit of ¥37.56 million in the previous year[21]. - The net cash flow from operating activities was negative at ¥37.84 million, a decrease of 324.00% compared to a positive cash flow of ¥16.89 million in the same period last year[21]. - The weighted average return on net assets was -3.48%, a decrease of 5.66% compared to 2.18% in the previous year[21]. - The gross profit margin for the company's services was 24.20%, with a significant decline in revenue from fracturing and completion projects, which dropped by 88.12% year-on-year[57]. - The company reported a net cash flow from financing activities of CNY 171,938,899.07, a significant increase of 4,297.03% compared to CNY 3,910,342.44 in the previous year, due to successful fundraising efforts[55]. - The company reported a total comprehensive income for the first half of 2020 of CNY -20,615,725.44, compared to CNY -4,331,987.89 in the previous year, indicating a worsening financial position[171]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥2.89 billion, down 2.16% from ¥2.95 billion at the end of the previous year[21]. - The total liabilities decreased from CNY 1,079,900,590.24 to CNY 800,364,001.34, a decline of about 26%[158]. - The company's total assets decreased from CNY 2,952,825,271.78 to CNY 2,889,095,066.72, a decline of about 2.1%[159]. - The company’s total equity increased to CNY 1,770.09 million in the first half of 2020, up from CNY 1,517.53 million in the first half of 2019, reflecting a growth of 16.6%[164]. - The company’s total liabilities decreased to CNY 809.19 million in the first half of 2020 from CNY 1,043.51 million in the same period of 2019, a reduction of 22.4%[164]. Market Strategy and Operations - The company plans to adopt flexible market strategies and enhance R&D efforts to mitigate risks associated with oil price fluctuations[8]. - The ongoing COVID-19 pandemic poses a risk to oil demand, which may impact the company's performance[9]. - The company aims to optimize management and reduce costs to enhance resilience against market volatility[8]. - The company has expanded its market presence beyond China to North America, Africa, South America, Central Asia, the Middle East, and Eastern Europe, which has become a significant driver of its performance[32]. - The company is actively seeking overseas projects, particularly in resource-rich regions like Central Asia, North Africa, and the Middle East, as part of its global expansion strategy[41]. Research and Development - The company added 7 new patents, bringing the total to 113, including 46 invention patents, which supports continuous growth and technological advancement[46]. - The company has developed a comprehensive service model that integrates geological research with engineering, enhancing its competitive edge in the market[32]. - Research and development expenses for the first half of 2020 were CNY 7.92 million, a decrease of 20.2% from CNY 9.91 million in the first half of 2019[164]. Shareholder and Equity Information - The company will not distribute cash dividends or issue bonus shares for the reporting period[10]. - The company has implemented an employee stock ownership plan, which was approved in March 2017, and the relevant commitments are being fulfilled[98]. - The company approved the repurchase and cancellation of 120,000 restricted stocks during the board meeting on April 22, 2020[102]. - The company has a total of 149,532,289 restricted shares at the end of the reporting period, with 44,975,475 shares released during this period[132]. - The largest shareholder, Shaanxi Private Economy High-Quality Development Fund, holds 6.65% of the shares, totaling 34,127,777 shares[136]. Risk Factors - The ongoing COVID-19 pandemic poses a risk to oil demand, which could impact the company's operational workload and overall performance[79]. - There is a risk of goodwill impairment due to adverse changes in the operational status of acquired companies, which could negatively affect the company's financial results[84]. - The competitive landscape in the oil service market is intensifying, necessitating continuous innovation in technology and services to maintain market share[80]. Compliance and Governance - The company has committed to strict compliance with the shareholder action commitment made on March 2, 2020, regarding the acquisition report, which is ongoing[90]. - The company has not reported any major changes in the use of raised funds or issues in disclosure[69]. - The company did not distribute cash dividends or issue new shares during the reporting period[89].

Financial Performance - Total revenue for Q1 2020 was ¥212,259,348.79, a decrease of 30.02% compared to ¥303,305,754.62 in the same period last year[8] - Net profit attributable to shareholders was -¥16,340,827.30, representing a decline of 217.12% from ¥13,951,761.67 in the previous year[8] - Basic earnings per share were -¥0.0332, down 207.44% from ¥0.0309 in the same period last year[8] - The company reported a net loss attributable to shareholders of RMB 16,340,800, a decrease of 217.12% year-on-year[25] - The net profit for the first quarter was a loss of CNY 17,743,380.18, compared to a profit of CNY 14,293,214.25 in the same period last year[54] - The net profit for the first quarter of 2020 was -4,560,515.73 CNY, compared to a profit of 7,983,627.56 CNY in the same period last year, indicating a significant decline[58] - Operating profit for the first quarter was -4,497,046.03 CNY, down from 8,714,043.06 CNY year-over-year[58] - The total comprehensive income for the first quarter was -4,560,515.73 CNY, compared to 7,983,627.56 CNY in the same period last year[59] Cash Flow - Net cash flow from operating activities was -¥7,707,472.32, a significant drop of 1,704.20% compared to ¥480,454.74 in Q1 2019[8] - Cash received from investment recoveries decreased by 79.66% year-on-year, mainly due to prior year distributions from the investment fund[24] - The company reported a net cash outflow from investing activities of -167,126,242.51 CNY, worsening from -78,280,074.68 CNY in the previous year[62] - The net cash flow from financing activities was 240,300,718.90 CNY, compared to 17,609,148.73 CNY in the same period last year, indicating increased financing activity[63] - The total cash and cash equivalents at the end of Q1 2020 amounted to ¥140,514,640.09, up from ¥28,229,505.21 at the beginning of the period, reflecting a net increase of ¥112,285,134.88[66] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,037,669,655.50, an increase of 2.87% from ¥2,952,825,271.78 at the end of the previous year[8] - The company's total assets increased to CNY 2,683,379,566.10 from CNY 2,561,040,307.37[50] - Total liabilities decreased to CNY 867,283,631.80 from CNY 1,079,900,590.24, a significant decline of about 19.7%[45] - The company's total liabilities included short-term borrowings of ¥192,258,306.94 and long-term borrowings of ¥100,000,000.00, indicating a structured approach to financing[69] - The total assets reached CNY 2,561,040,307.37, reflecting the company's financial position[72] Shareholder Information - The total number of common shareholders at the end of the reporting period was 21,446[11] - The largest shareholder, Zhang Guoan, held 17.06% of the shares, with 87,615,217 shares, of which 65,711,413 were pledged[11] - The company did not engage in any repurchase transactions during the reporting period[12] - The total number of restricted shares at the end of the period is 170,128,960, with 24,378,804 shares released during the current period[17] - The company has a policy of releasing 25% of executive locked shares annually based on total shareholding[14] Investment Activities - The company plans to acquire 71.011% equity in a target company through the issuance of shares and convertible bonds[26] - Cash paid for investments increased by 111.01% year-on-year, primarily for the acquisition of remaining equity in a subsidiary[24] - The company has pre-invested CNY 195.25 million in fundraising projects using self-raised funds as of March 31, 2020[36] - The cumulative investment in fundraising projects has reached 100% of the committed investment amount[35] Market Conditions and Risks - The company is closely monitoring the COVID-19 situation in the U.S., which significantly impacts its revenue due to high exposure in North America[29] - The company faces risks from fluctuating oil prices, which could impact exploration and development investments[27] - The company aims to optimize management and reduce costs to mitigate risks from oil price fluctuations[28] Compliance and Adjustments - The company adjusted its financial statements to comply with new revenue and leasing standards effective from January 1, 2020, impacting the classification of contract liabilities[67] - The company is implementing new revenue recognition standards effective from January 1, 2020, impacting the accounting treatment of customer payments[73] - There were no changes in the feasibility of fundraising investment projects[36] - The company has not encountered any issues with the use and disclosure of fundraising funds[36] - The company has not undergone an audit for the first quarter report[74]