COOEC(SH:600583)2015-03-15 16:00Financial Performance - The company achieved a net profit of CNY 2,690,307,185.95 for the year 2014, with total distributable profits amounting to CNY 6,232,539,255.60 by the end of the year[5]. - The company's operating revenue for 2014 was approximately RMB 22.03 billion, representing an 8.32% increase compared to RMB 20.34 billion in 2013[30]. - Net profit attributable to shareholders reached approximately RMB 4.27 billion, a significant increase of 55.48% from RMB 2.74 billion in the previous year[30]. - Basic earnings per share rose to RMB 0.97, marking a 41% increase from RMB 0.69 in 2013[30]. - The weighted average return on equity was 22.80%, slightly up from 22.51% in 2013[30]. - The company achieved a compound annual growth rate of 167% in net profit over the past four years[34]. - The total assets at the end of 2014 were approximately RMB 31.15 billion, a 10.83% increase from RMB 28.10 billion at the end of 2013[30]. - The company reported a net cash flow from operating activities of approximately RMB 4.35 billion, a 29.14% increase from RMB 3.37 billion in 2013[30]. - The company achieved a net profit of RMB 426,687.11 million, representing a profit margin of 23.83%[152]. - The cash dividend per 10 shares for 2014 was RMB 2.30, an increase from RMB 1.00 in 2013[152]. Dividend and Profit Distribution - A cash dividend of CNY 2.30 per 10 shares (including tax) is proposed, totaling CNY 1,016,911,604.00 in cash dividends to be distributed[5]. - The company maintains a cash dividend policy, distributing at least 10% of the net profit attributable to shareholders of the parent company each year, with a cumulative distribution of at least 30% over the last three years[147]. - The profit distribution plan requires a two-thirds majority approval from shareholders at the annual general meeting[149]. - The company can adjust its cash dividend policy in response to significant external changes or internal operational shifts, subject to independent director approval[149]. - The company has not proposed a cash dividend distribution plan for the reporting period despite having positive undistributed profits[151]. Operational Highlights - The company completed 30 offshore oil and gas field development projects and 5 onshore LNG construction projects during the reporting period[38]. - The company completed approximately 29% of the new signed orders, while the total amount of previously signed orders in execution was about RMB 36 billion, with a completion rate of 97%[42]. - The company achieved a total order value of 27 billion RMB in 2014, representing a 36% increase compared to the previous year, with significant international market development[68]. - The company launched three new vessels in 2014, enhancing its overall fleet strength and capabilities in deepwater operations[69]. - The company completed the construction of the first phase of the Zhuhai deepwater manufacturing base, which has a capacity for 40,000-ton block construction[70]. Research and Development - Research and development expenses increased by 40.53% to approximately RMB 1.19 billion, up from RMB 845 million in 2013[36]. - The total R&D expenditure reached RMB 1.188 billion, representing a 41% increase compared to the previous year, with R&D expenses accounting for 5.78% of net assets and 5.39% of operating income[54][55]. - The company implemented 91 major research projects in 2014, resulting in over 70 technological innovations and 65 invention patents granted[75]. - The company made significant advancements in technology, completing over 90 large-scale research projects and achieving breakthroughs in key underwater technologies[55][60]. Market and Strategic Initiatives - The company aims to leverage the "Belt and Road" initiative to expand its international market presence, with projects in Indonesia, Australia, Singapore, Saudi Arabia, and Abu Dhabi[122]. - The company has 23 key projects under tracking for international market expansion, focusing on regions such as the Middle East and Southeast Asia, while also exploring opportunities in Africa, Canada, Russia, the Gulf of Mexico, and Northern Europe[130]. - The company recognizes the need to accelerate domestic oil and gas resource development, particularly in deep-water areas, to meet the growing demand[120]. - The company is positioned to benefit from the strategic opportunities presented by the development of marine economy as part of national policy[120]. Financial Management and Risks - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9]. - The company faces risks from international oil price volatility, which could lead to reduced industry investment and increased competition[133]. - The company plans to strengthen its international market operations and improve its risk management capabilities to address challenges in overseas project execution[134]. - The company will utilize various financial tools to manage funds effectively and ensure operational needs are met amidst potential financial risks[132]. Subsidiary Performance - The net profit for the Zhuhai subsidiary was CNY 247.09 million for the year 2014[112]. - The total assets of the Qingdao subsidiary amounted to CNY 692,389.91 million, with a net profit of CNY 72,265.43 million[112]. - In 2014, the Qingdao subsidiary achieved a revenue of 4.521 billion RMB, with an operating profit of 837 million RMB and a net profit of 723 million RMB[114]. - The Shenzhen subsidiary reported a revenue of 3.741 billion RMB, an operating profit of 574 million RMB, and a net profit of 528 million RMB, representing a year-on-year increase of 43% and 61% respectively[115]. Related Party Transactions - The total amount of related party transactions with China National Offshore Oil Corporation was RMB 19,086,852,173.91, accounting for 86.63% of similar transactions[159]. - The company provided professional production services to related parties, with a total transaction amount of RMB 610,325.47 for labor services[159]. - The company engaged in various labor service transactions, with the largest being RMB 1,690,682,524.42 for engineering subcontracting and transportation services[160]. - The company emphasizes the importance of fair and open pricing in related transactions, which are determined through public bidding processes[162]. Environmental and Social Responsibility - The company actively fulfilled its social responsibilities, as detailed in its annual social responsibility report[153]. - The company is not classified as a heavy polluting industry according to national environmental protection regulations[154]. - The company has not reported any major litigation or arbitration issues during the reporting period[157]. Financial Products and Investments - The company has engaged in guaranteed return financial products with China Construction Bank, with total investments amounting to 87,100 million and 90,000 million, yielding returns of 3,994.67 million and 1,627.40 million respectively[101]. - The total amount of guaranteed income financial products issued by China Communications Bank reached 1,337,100.00, with an expected total return of 20,251.88[103]. - The company invested CNY 70.67 million in CNOOC Finance Co., holding a 1.77% stake, with the investment reclassified from long-term equity investment to available-for-sale financial assets[183].