COSL(HK:02883)2021-04-14 09:18Financial Performance - Total revenue for 2020 was RMB 28,925.3 million, a decrease of 6.9% compared to RMB 31,075.8 million in 2019[10] - Operating profit for 2020 was RMB 4,141.9 million, an increase of 6.3% from RMB 3,895.2 million in 2019[10] - Annual profit for 2020 was RMB 2,718.3 million, up 7.5% from RMB 2,528.0 million in 2019[10] - Basic earnings per share for 2020 were RMB 56.65, an increase of 8.0% compared to RMB 52.44 in 2019[10] - The company's total operating profit for 2020 was RMB 4,141.9 million, an increase of RMB 246.7 million or 6.3% compared to RMB 3,895.2 million in 2019[63] - The company's annual profit for 2020 was RMB 2,718.3 million, an increase of RMB 190.3 million compared to RMB 2,528.0 million in 2019[70] - The company's total operating expenses for 2020 were RMB 25,221.4 million, a reduction of RMB 2,311.3 million or 8.4% from RMB 27,532.7 million in 2019[58] - The impairment loss on property, plant, and equipment increased significantly by 499.5% to RMB 1,447.8 million in 2020[59] Assets and Liabilities - Total assets at the end of 2020 were RMB 75,942.3 million, a slight decrease of 0.2% from RMB 76,101.8 million at the end of 2019[12] - Total equity at the end of 2020 was RMB 38,688.8 million, an increase of 4.8% from RMB 36,910.3 million at the end of 2019[12] - Total liabilities decreased by RMB 1,938.0 million or 4.9% to RMB 37,253.5 million compared to RMB 39,191.5 million at the end of 2019[72] Revenue Breakdown - Domestic business revenue for 2020 was RMB 21,513.5 million, while international business revenue was RMB 7,411.8 million[10] - Domestic revenue accounted for 74.4% of total revenue, with RMB 21,513.5 million in 2020, down 11.0% from RMB 24,159.9 million in 2019[54] - International revenue increased by 7.2% to RMB 7,411.8 million, compared to RMB 6,915.9 million in the previous year[54] Operational Performance - In 2020, the company achieved significant operational performance despite challenges from the COVID-19 pandemic and low oil prices, creating substantial value returns for shareholders[13] - The drilling services segment generated revenue of RMB 11,456.8 million, representing a 5.8% increase from RMB 10,824.8 million in 2019[28] - The oilfield technical services segment generated revenue of RMB 13,304.7 million in 2020, a decrease of 11.5% compared to RMB 15,030.0 million in 2019[34] - The group’s exploration and engineering survey services revenue fell by 42.4% to RMB 1,248.6 million in 2020, compared to RMB 2,168.1 million in 2019[44] Innovation and Technology - The company was granted 84 patents in 2020, including 38 invention patents, and received 6 provincial and ministerial-level scientific and technological awards[22] - The cumulative drilling footage reached over 520,000 meters, with a breakthrough in high-speed mud transmission technology increasing transmission rates by 24 times[22] - The company emphasized innovation-driven development, focusing on core technology breakthroughs and resource matching to enhance competitiveness[14] - The company is committed to technological development, focusing on optimizing its technology system and accelerating the industrialization of independent technology products[200] Sustainability and Social Responsibility - The company is committed to sustainable development, balancing economic, social, and environmental growth[4] - The company is committed to green and low-carbon production models, entering clean energy sectors such as wind power and hydrate[131] - The company has made significant contributions to poverty alleviation efforts, aligning with national goals[156] - The company invested a total of 1.766 million yuan in 2020 for educational poverty alleviation, including restoring damaged campuses and improving teaching conditions[160] Governance and Risk Management - The company focused on enhancing its governance and internal control management, adapting to new capital market requirements and improving risk management strategies[15] - The company established a comprehensive internal control system covering 14 major areas to ensure compliance and effectiveness, with no significant deficiencies reported[95] - The risk management framework includes annual risk identification and assessment, with quarterly reports submitted to the board, ensuring a closed-loop management of significant risks[96] - The company emphasizes risk management and has implemented comprehensive risk control measures in response to the pandemic[86] Market Expansion and Strategy - The company aims to maintain a strong market share in China while actively expanding into overseas markets across Asia-Pacific, Middle East, Americas, Europe, Africa, and the Far East[4] - The company has made breakthroughs in new businesses, new markets, and new customers in its international operations[8] - The company plans to enhance service quality and strengthen production and operational capabilities in 2021, focusing on technological development and international expansion[23] - The company will actively explore overseas markets and embrace digital technology to promote the transformation and upgrading of traditional oilfield services[84] Employee and Community Engagement - The employee turnover rate for Chinese nationals decreased to 0.8% in 2020 from 1.6% in 2019[150] - The company achieved a 100% coverage rate for social insurance and labor contracts in 2020[150] - The company helped 113 local residents gain employment through its poverty alleviation workshop, with 62 being registered impoverished households, accounting for 55%[162] Cash Flow and Investments - The company's cash and cash equivalents increased to RMB 6,583.7 million, a 95.7% increase from RMB 3,363.6 million in 2019, primarily due to the issuance of long-term bonds[75] - Operating activities generated a net cash inflow of RMB 7,538.9 million, representing an 8.2% year-on-year increase, mainly driven by higher cash receipts from services and sales[76] - Investment activities resulted in a net cash outflow of RMB 3,337.2 million, an increase of RMB 2,185.5 million compared to the previous year, largely due to increased cash outflows for purchasing property, plant, and equipment[77] Corporate Governance - The board of directors held a total of six meetings during the year, ensuring compliance with legal and regulatory requirements[92] - The company has three independent directors with extensive experience in finance, law, and financial reporting, who effectively fulfilled their responsibilities during the reporting period[93] - The company conducted a review of shareholder meeting resolutions, confirming compliance with all requirements during the reporting period[97] - The company has appointed Mr. Qi Meisheng as both Chairman and CEO, which differs from the code's recommendation for separation of these roles, but the board believes this structure meets current operational needs[99]