2015-08-25 16:00Financial Performance - The company reported a mid-year financial performance that has not been audited, but the financial report prepared according to international financial reporting standards has been reviewed by Deloitte (Hong Kong) CPA Limited[4]. - The company has not experienced any changes in its basic situation during the reporting period[18]. - The company’s financial report includes key performance indicators that reflect its operational efficiency and market position[10]. - Total assets decreased by 9.2% to RMB 73,812,786 thousand compared to the previous year[26]. - Equity attributable to shareholders increased by 25.2% to RMB 23,401,862 thousand from RMB 18,697,120 thousand[26]. - The company reported a total loss attributable to shareholders of RMB 1,380,350 thousand, a significant increase from a loss of RMB 687,285 thousand in the previous year[29]. - Operating revenue fell by 45.1% to RMB 23,121,285 thousand from RMB 42,109,535 thousand year-on-year[29]. - The net cash flow from operating activities was a negative RMB 1,371,422 thousand, compared to a negative RMB 1,982,413 thousand in the previous year[29]. - Basic and diluted earnings per share were both RMB -0.101, compared to RMB -0.045 in the same period last year[31]. - The net asset return rate decreased to -6.56%, down by 3.70 percentage points from the previous year[31]. - The company’s cash flow per share from operating activities was RMB -0.101, compared to RMB -0.134 in the previous year[26]. - The company’s total liabilities and equity structure indicates a need for strategic adjustments to improve financial health moving forward[29]. Revenue and Costs - The company's consolidated revenue for the first half of 2015 was RMB 23,121,285 thousand, a decrease of 45.1% compared to RMB 42,109,535 thousand in the same period last year[39]. - The net loss attributable to shareholders for the first half of 2015 was RMB 1,380,350 thousand, with a basic loss per share of RMB 0.101, compared to a net loss of RMB 687,285 thousand and a basic loss per share of RMB 0.045 in the previous year[39]. - The company's drilling services revenue decreased by 30.0% to RMB 12,473,028 thousand, with drilling footage down 40.4% to 3.37 million meters[43]. - The international business revenue fell by 28.0% to RMB 6,250,362 thousand, accounting for 27.0% of total revenue, while new contract value in overseas markets increased by 26.6% to USD 1.67 billion[48]. - The company achieved a significant increase in international market contracts, with contracts in Kuwait growing by 144.7% to USD 1.4 billion and contracts in Saudi Arabia increasing by 10.4% to USD 440 million[48]. - The company reduced operating costs by RMB 450 million through various measures, including optimizing production organization and reducing personnel by 2,700 employees[50]. - Research and development expenses decreased by 39.2% to RMB 54,808 thousand, reflecting a focus on cost control amid declining revenues[52]. - The company reported a 50.2% decline in revenue from logging services, totaling RMB 769,351 thousand, with significant reductions in both logging and recording footage[44]. - The decrease in operating costs is primarily due to a decline in oil service business workload and enhanced cost control measures[53]. Shareholder and Capital Structure - The board of directors decided not to distribute interim dividends for the year ending December 31, 2015, nor to increase share capital from capital reserves[6]. - The company raised a total of RMB 5,999,999,998.5 through a private placement of 1,333,333,333 shares at RMB 4.50 per share, with a net amount of RMB 5,952,516,665.5 after deducting issuance costs[54]. - The total number of shares increased from 12,809,327,662 to 14,142,660,995, representing a change of approximately 10.5% due to the issuance of 1,333,333,333 restricted A shares[121]. - The proportion of restricted shares increased from 80.1% to 82.0% following the issuance, while unrestricted shares decreased from 19.9% to 18.0%[121]. - The company has a significant concentration of ownership, with the top two shareholders holding over 80% of the total shares[126]. - The largest shareholder, China Petroleum & Chemical Corporation, holds 9,224,327,662 shares, representing 65.22% of total shares[126]. - The second largest shareholder, Hong Kong Central Clearing Limited, holds 2,085,275,495 shares, accounting for 14.74%[126]. - The total number of shareholders as of June 30, 2015, was 102,327, including 101,956 domestic A-share shareholders and 371 overseas H-share shareholders[125]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance standards set by the Hong Kong Stock Exchange, with no significant discrepancies noted[115]. - The board of directors has approved the adoption of the Corporate Governance Code, ensuring adherence to the relevant standards throughout the reporting period[117]. - The company has not established a nomination committee as per the Corporate Governance Code, but has clear provisions in its articles of association regarding director nominations[115]. - The company confirmed that all related party transactions were conducted based on market prices and adhered to fair and transparent principles[100]. - The company maintained compliance with regulatory requirements regarding related party transactions throughout the reporting period[105]. - The company has not reported any changes in accounting policies or significant prior period errors during the reporting period[118]. - The company has successfully revised and implemented its internal control system, with significant progress reported in risk management and process standardization[114]. Future Outlook and Strategy - The company emphasizes the importance of forward-looking statements regarding future development strategies and operational plans, cautioning investors about potential risks[7]. - The company plans to complete 21,359 kilometers of 2D seismic acquisition and 7,453 square kilometers of 3D seismic acquisition in the second half of 2015[72]. - The company aims to achieve a drilling footage of 4.82 million meters in the second half of 2015[74]. - The company plans to complete 12,690 million standard meters of logging and 446 million meters of recording in the second half of 2015[75]. - The company targets to sign new contracts worth 9.5 billion RMB and complete contracts exceeding 12 billion RMB in the second half of 2015[77]. - The company anticipates signing new contracts worth 900 million USD and completing contracts worth 1.25 billion USD in the second half of 2015[78]. - The company expects continued low international oil prices due to oversupply and competition in the oilfield service industry[70]. - The company will focus on optimizing resource integration and structural adjustments to improve operational performance[71]. - The company plans to enhance its service capabilities in the overseas market, particularly in the Middle East[74]. - The company will continue to promote shale gas development technology and expand into unconventional markets domestically[73]. Asset Management - The total assets under management for various asset management plans reached approximately 1.33 billion[124]. - The largest asset management plan reported a value of 111,110,800[123]. - The second-largest asset management plan had a value of 93,333,333[123]. - The asset management plan with the lowest reported value was 1,084,273[124]. - The company is actively managing a diverse portfolio of asset management plans[123][124]. - The data indicates a strong presence in the asset management sector with significant capital allocation[123][124]. - The company continues to expand its asset management offerings to meet market demands[123][124]. Financial Position and Liabilities - The company's total assets amounted to RMB 73,812,786 thousand, a decrease from RMB 81,295,708 thousand at the beginning of the period, reflecting a decline of approximately 9.1%[146]. - The company's cash and cash equivalents increased significantly to RMB 3,026,832 thousand from RMB 1,213,897 thousand, representing a growth of approximately 149.4%[146]. - Accounts receivable decreased to RMB 15,236,817 thousand from RMB 28,064,935 thousand, indicating a reduction of about 45.9%[146]. - Inventory rose to RMB 16,159,358 thousand from RMB 11,932,142 thousand, marking an increase of approximately 35.5%[146]. - The company's total current assets decreased to RMB 40,042,091 thousand from RMB 45,824,701 thousand, a decline of about 12.7%[146]. - Non-current assets totaled RMB 33,770,695 thousand, down from RMB 35,471,007 thousand, reflecting a decrease of approximately 4.8%[146]. - The company's total liabilities decreased from RMB 62,599,570 thousand at the beginning of the period to RMB 50,411,981 thousand at the end of the period, a reduction of approximately 19.4%[148]. - The company's debt-to-asset ratio was 68.3% as of June 30, 2015, down from 77.0% at the end of 2014[88]. - The capital debt ratio as of June 30, 2015, was 28.2%, down from 37.8% at the end of 2014[92]. Related Party Transactions - The company engaged in significant related party transactions totaling RMB 2,278,104 thousand for raw materials and equipment procurement, accounting for 51.3% of similar transactions[100]. - The company provided engineering services to China Petroleum & Chemical Corporation and its subsidiaries, amounting to RMB 12,616,265 thousand, representing 54.6% of similar transactions[100]. - The company borrowed RMB 26,332,206 thousand from China Petroleum & Chemical Corporation, which accounted for 99.9% of similar transactions[100]. - The company repaid RMB 26,755,339 thousand in loans to China Petroleum & Chemical Corporation, constituting 100% of similar transactions[100]. - The company reported a balance of RMB 6,650,950 thousand in receivables from China Petroleum & Chemical Corporation at the end of the reporting period[104]. - The company had a total of RMB 19,712,996 thousand in payables to China Petroleum & Chemical Corporation at the beginning of the reporting period[104]. Accounting and Financial Reporting - The financial statements are prepared on a going concern basis, with expectations of generating sufficient operating cash flow in the next twelve months[188]. - The accounting policies are in accordance with the enterprise accounting standards, reflecting the financial position as of June 30, 2015, and the operating results for the first half of 2015[189]. - The group’s accounting period follows the calendar year, from January 1 to December 31[189]. - The group’s operating cycle is 12 months[189]. - The financial statements are presented in RMB, with subsidiaries determining their functional currency based on their economic environment[189]. - The group’s consolidated financial statements include all subsidiaries, with specific details provided in the notes[194]. - The company recognizes minority interests in the consolidated balance sheet under shareholders' equity, with losses exceeding the minority shareholders' equity being deducted from their interests[195]. - The company treats step disposals of equity leading to loss of control as a bundled transaction if they meet specific criteria, impacting the accounting treatment of gains and losses[197].