Financial Performance - For the first half of 2021, the company recorded revenue of RMB 581.3 million, a decrease of RMB 27.8 million or 4.6% compared to the same period last year[12]. - The net profit for the same period was RMB 14.8 million, down RMB 3.8 million or 20.4% year-on-year[12]. - Revenue from the Chinese market was RMB 399.1 million, a decrease of RMB 38.2 million or 8.7%, accounting for 68.7% of total revenue[12]. - Revenue from overseas markets increased to RMB 182.2 million, up RMB 10.4 million or 6.1%, representing 31.3% of total revenue[12]. - The company's material costs decreased to RMB 97.0 million, down RMB 44.4 million or 31.4% from RMB 141.4 million year-on-year, primarily due to changes in business structure[40]. - Employee compensation expenses increased to RMB 225.9 million, an increase of RMB 18.0 million or 8.7% compared to RMB 207.9 million in the previous year, mainly due to an increase in personnel and the end of government social security contribution reductions[41]. - The group's operating profit for the six months ended June 30, 2021, was RMB 41.6 million, a decrease from RMB 44.2 million in the same period last year, reflecting a decline of 5.9%[49]. - The net financing costs increased to RMB 20.2 million, up 27.0% from RMB 15.9 million year-on-year, primarily due to increased interest expenses from enhanced financing efforts[50]. - The group's profit for the period was RMB 14.8 million, down 20.4% from RMB 18.6 million in the previous year, mainly impacted by the oil and gas industry's situation and the pandemic[52]. - The equity attributable to the company's owners was RMB 17.9 million, a decrease of 16.4% from RMB 21.4 million year-on-year[53]. - The company reported a net other income of RMB 1.0 million, a turnaround from a net loss of RMB 3.8 million in the same period last year, mainly due to currency fluctuations[39]. Revenue Segmentation - The oil reservoir segment generated revenue of RMB 245.4 million, an increase of RMB 17.5 million or 7.7% year-on-year, contributing 42.2% to total revenue[15]. - The drilling segment achieved revenue of RMB 226.1 million, up RMB 40.2 million or 21.6%, accounting for 38.9% of total revenue[15]. - The completion segment saw revenue decline to RMB 109.7 million, down RMB 85.5 million or 43.8%, contributing 18.9% to total revenue[15]. - Revenue from the Chinese market in the drilling segment was RMB 174.5 million, up RMB 38.5 million or 28.3% year-on-year, driven by increased drilling and workover activities in Xinjiang[22]. - The overseas drilling segment revenue reached RMB 51.6 million, a slight increase of RMB 1.6 million or 3.3% compared to the previous year[22]. - Revenue from the Chinese market in the completion segment was RMB 71.8 million, down RMB 112.3 million or 61.0% compared to last year[24]. - The overseas completion segment revenue surged to RMB 38.0 million, an increase of RMB 26.8 million or 239.2%, mainly from the growth in Turkmenistan's completion tools business[24]. - Revenue from China was RMB 399,101 thousand, while revenue from Kazakhstan was RMB 100,845 thousand for the six months ended June 30, 2021[149]. Operational Strategy - The company emphasized a strategy of technological innovation and market expansion to enhance competitiveness in response to industry challenges[12]. - The company is actively expanding its business in offshore oil exploration and development, having won a drilling service project in a tight gas block from China United Coalbed Methane Corporation[29]. - The company plans to leverage its workover platform to expand into fishing technology services, oil pipe teams, and oil extraction projects, further broadening its business scope[28]. - The company successfully completed drilling operations in the Tarim Oilfield, receiving high recognition from clients for service quality[28]. - The company successfully implemented new technologies in various fields, including high-temperature and high-pressure PVT sampling tools and enhanced oil recovery chemicals, leading to significant production improvements and market opportunities[30]. - The company completed two successful well constructions using advanced rotary steering and magnetic ranging technologies, receiving high praise from clients[31]. Financial Position - Total assets as of June 30, 2021, were RMB 2,583,244,000, down from RMB 2,704,341,000 at the end of 2020, a decline of 4.5%[120]. - The company's total liabilities decreased to RMB 1,345,368,000 from RMB 1,472,970,000, a reduction of 8.6%[120]. - Cash and cash equivalents were reported at RMB 223,341,000, down from RMB 321,618,000, indicating a decrease of 30.6%[120]. - Inventory increased to RMB 529,531,000 from RMB 436,400,000, reflecting a rise of 21.3%[120]. - The capital debt ratio rose to 48.1%, an increase of 2.9% from 45.2% at the end of 2020[61]. - The group did not have any significant investments or future plans for major investments or capital assets during the period[64][65]. - The group has a capital expenditure commitment of RMB 21.8 million and operating lease commitments of RMB 16.5 million as of June 30, 2021[73]. - The group anticipates accelerated growth in global oil demand in the second half of 2021 due to ongoing economic recovery and increased vaccination rates[75]. Shareholder Information - The group has a total of 651,484,000 shares held by Mr. Wang Guoqiang and Mr. Wu Dongfang, representing approximately 35.14% of the company's equity[83]. - Major shareholders include Truepath Limited with 489,512,000 shares, representing 26.41% of the company's equity[89]. - Credit Suisse Trust Limited holds 711,642,242 shares, accounting for 38.39% of the company's equity[89]. - Widescope Holdings Limited owns 140,372,000 shares, representing 7.57% of the company's equity[89]. - Elegant Eagle Investments Limited holds 161,972,000 shares, accounting for 8.74% of the company's equity[89]. - Greenwoods Asset Management Hong Kong Limited holds 119,000,000 shares, representing 6.42% of the company's equity[89]. Employee and Management - The company’s workforce increased to 4,177 employees as of June 30, 2021, up by 238 from 3,939 employees at the end of 2020, while maintaining actual labor costs within budget[37]. - The group is focused on employee development and innovation-driven performance management systems[76]. - Total remuneration for key management personnel increased to RMB 6,328,000 in the first half of 2021, up from RMB 4,972,000 in 2020, representing a growth of 27.3%[197]. - Salary and other short-term benefits for key management personnel rose to RMB 5,040,000 in H1 2021, compared to RMB 2,626,000 in H1 2020, marking an increase of 92.5%[197]. - Share-based payments decreased to RMB 772,000 in H1 2021 from RMB 2,023,000 in H1 2020, reflecting a decline of 61.8%[197]. - Retirement benefits and other compensation for key management personnel increased to RMB 516,000 in H1 2021, up from RMB 323,000 in H1 2020, showing a growth of 60.0%[197]. Corporate Governance - The group is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[78]. - The group will continue to build a long-term environmental, social, and governance management mechanism to enhance overall sustainability[76].
华油能源(01251) - 2021 - 中期财报