Financial Performance - In the first half of 2021, the company's revenue was RMB 1,421.3 million, a decrease of RMB 32.6 million or 2.2% compared to the same period in 2020[10]. - Operating profit increased to RMB 222.4 million, up RMB 44.6 million or 25.1% from RMB 177.8 million in the same period last year[10]. - Net profit reversed from a loss of RMB 87.8 million in 2020 to a profit of RMB 43.4 million, representing an increase of RMB 131.2 million or 149.4%[10]. - The company's equity holders' profit was RMB 42.8 million, compared to a loss of RMB 91.0 million in the previous year, marking an increase of RMB 133.8 million or 147.0%[10]. - Total revenue for the first half of 2021 was RMB 1,421.3 million, a decrease of 2.2% compared to RMB 1,453.9 million in the same period of 2020[14]. - The company's net profit for the first half of 2021 was RMB 43.4 million, a significant increase of RMB 131.2 million or 149.4% compared to a loss of RMB 87.8 million in the same period of 2020[62]. - The operating profit for the first half of 2021 was RMB 222.4 million, an increase of RMB 44.6 million or 25.1% from RMB 177.8 million in the first half of 2020, with an operating profit margin of 15.6%[60]. - The gross profit for the six months ended June 30, 2021, was RMB 438,434 thousand, compared to RMB 417,483 thousand for the same period in 2020, an increase of approximately 5.0%[121]. - Basic earnings per share for the six months ended June 30, 2021, was RMB 0.0146, compared to a loss per share of RMB 0.0303 for the same period in 2020[121]. Revenue Breakdown - The overseas market generated revenue of RMB 715.3 million, down RMB 28.4 million or 3.8% from RMB 743.7 million in the same period of 2020, accounting for 50.3% of total revenue[13]. - Revenue from the Iraq market was RMB 506.3 million, a decrease of RMB 41.3 million or 7.5% year-on-year, representing 35.6% of total revenue[13]. - The domestic market revenue was RMB 706.0 million, a slight decrease of RMB 4.2 million or 0.6% compared to RMB 710.2 million in the same period last year, accounting for 49.7% of total revenue[13]. - Revenue from the overseas market was RMB 715.3 million, down 3.8% from RMB 743.7 million in the previous year, accounting for 50.3% of total revenue[16]. - Revenue from the Iraq market was RMB 506.3 million, a decline of 7.5% from RMB 547.6 million year-on-year, with new orders amounting to RMB 1,698.6 million, an increase of 122.8%[19]. - Revenue from other overseas markets increased by 6.6% to RMB 209.0 million, compared to RMB 196.1 million in the same period last year[21]. - In the China market, revenue was RMB 706.0 million, a slight decrease of 0.6% from RMB 710.2 million, with new orders totaling RMB 1,018.7 million, down 13.1% year-on-year[23]. Cost and Expenses - Operating costs decreased from RMB 1,036.5 million in the first half of 2020 to RMB 982.9 million in the first half of 2021, a decline of 5.2%[52]. - The company's total expenses for the first half of 2021 included RMB 371,116,000 for material and service purchases, a slight decrease from RMB 389,284,000 in the previous year[194]. - The company's depreciation expenses for the first half of 2021 were RMB 169,481,000, down from RMB 180,702,000 in the same period of 2020, indicating a decrease of 6.2%[194]. - Interest expenses for the six months ended June 30, 2021, totaled RMB 115,449 thousand, a decrease from RMB 218,498 thousand in the same period of 2020, reflecting a reduction of approximately 47.2%[19]. - The financial expenses, including interest income, decreased to RMB 109,229 thousand in 2021 from RMB 211,281 thousand in 2020, representing a decline of about 48.3%[19]. Market Expansion and Strategic Initiatives - The company established a "Low Carbon and New Energy Company" and a "Smart Oilfield Company" to promote low-carbon and digital transformation initiatives[9]. - The company is actively expanding into new markets, including Iraq, Niger, and Australia, while continuing to adjust its business structure in the Chinese market[8]. - The company will continue to focus on the development of low-carbon and new energy businesses, as well as smart oilfield operations in key markets such as China and Iraq[47]. - The company is actively pursuing market expansion in emerging markets, including new orders in Niger and Australia, reflecting a strategic growth initiative[21]. - The company plans to continue focusing on drilling technology and oil extraction services to drive future revenue growth[152]. Assets and Liabilities - As of June 30, 2021, accounts receivable amounted to RMB 1,958.2 million, with an average turnover period of 241 days, a decrease of 20 days year-on-year[12]. - The company's cash and bank deposits as of June 30, 2021, were approximately RMB 1,080.5 million, a decrease of RMB 252.8 million compared to December 31, 2020[67]. - The total assets of the company as of June 30, 2021, were RMB 7,522,190 thousand, down from RMB 7,881,121 thousand as of December 31, 2020, indicating a decrease of approximately 4.6%[118]. - The total liabilities decreased to RMB 4,747,784 thousand as of June 30, 2021, from RMB 5,117,400 thousand as of December 31, 2020, a reduction of approximately 7.2%[118]. - The company's trade payables decreased to RMB 476,272,000 from RMB 590,670,000, reflecting a reduction of 19.3%[181]. Stock Options and Shareholder Information - The board did not recommend an interim dividend for the six months ended June 30, 2021, consistent with the previous year[78]. - The total number of share options granted during the period was 5,660,922[86]. - The total number of stock options granted in 2021 was 11,200,000 shares, with an exercise price ranging from HKD 0.740 to HKD 1.020[89]. - The company adopted a ten-year share option scheme on May 26, 2017, to replace the previous scheme adopted on November 17, 2007[84]. - The total number of stock options exercised during the period was not specified, but the total number of options outstanding as of June 30, 2021, was 3,000,000 shares[90]. - The company has plans for future stock option grants, with a focus on retaining key personnel and incentivizing performance[93]. - The stock options are part of the company's strategy to align employee interests with shareholder value[93]. Research and Development - R&D investment increased by 5.3% to RMB 19.9 million from RMB 18.9 million in the previous year[43]. - The company received government subsidies totaling RMB 2,209,000 for R&D expenses, an increase from RMB 1,900,000 in the previous year[196]. - The company established a "Low Carbon and New Energy Technology Company" team to provide low-carbon energy solutions, indicating a strategic focus on sustainability[22].
安东油田服务(03337) - 2021 - 中期财报