2017-03-28 16:00Financial Performance - The net profit attributable to shareholders for 2016 was RMB -16,114.763 million according to Chinese accounting standards, and RMB -16,198.242 million according to IFRS[4]. - The company's undistributed profits at the end of 2016 were RMB -1,439.418 million, leading to a recommendation of no cash dividend distribution for the year[4]. - The company's operating revenue for 2016 was RMB 42,923,500, a decrease of 28.9% compared to RMB 60,349,334 in 2015[22]. - The net loss attributable to shareholders for 2016 was RMB 16,114,763, representing a significant decline of 65,933.7% from a profit of RMB 24,478 in 2015[22]. - The total assets at the end of 2016 were RMB 74,493,166, down 12.7% from RMB 85,307,777 in 2015[22]. - The net cash flow from operating activities for 2016 was RMB -3,907,318, a decrease of 251.7% compared to RMB 2,575,929 in 2015[22]. - The basic and diluted earnings per share for 2016 were both RMB -1.139, compared to RMB 0.002 in 2015[24]. - The weighted average return on equity for 2016 was -97.19%, a decrease of 97.29 percentage points from 0.10% in 2015[24]. - The company reported a net loss of RMB 15,887,181 before tax for 2016, compared to a profit of RMB 469,719 in 2015[30]. - The total liabilities at the end of 2016 were RMB 66,051,574, an increase from RMB 60,670,824 in 2015[30]. - The net asset attributable to shareholders at the end of 2016 was RMB 8,442,868, down 65.7% from RMB 24,638,094 in 2015[22]. - The asset-liability ratio increased to 88.7%, up 17.6 percentage points from the previous year[37]. - The company reported a net loss attributable to shareholders of RMB 16,114,763 thousand for 2016, which impacted the dividend distribution[133]. Market Environment and Outlook - The company anticipates a gradual improvement in the oil service industry environment in 2017 due to the recovery of international oil prices, although uncertainties remain due to slow global economic recovery and domestic energy consumption growth[7]. - The company plans to leverage the recovery of international oil prices and increased capital expenditures from major clients to improve its operating environment in 2017[46]. - The company anticipates a complex and severe operating environment for the oil service industry in 2017, despite potential increases in upstream exploration and development capital expenditures[93]. Operational Efficiency and Cost Management - The company completed cost-saving measures amounting to RMB 1.33 billion throughout the year, enhancing resource allocation efficiency[46]. - The company reduced its professional teams by 135, a 6.4% decrease from the previous year, as part of its efforts to optimize resources and improve asset structure[37]. - The company reduced its workforce by 17,600, achieving a cost reduction of RMB 1.33 billion[60]. - The company is focusing on enhancing project management and optimizing market and business layout to improve operational efficiency[101]. - The company aims to optimize its drilling team structure and equipment layout to improve operational efficiency and reduce costs[96]. Research and Development - The company applied for 465 domestic and international patents in 2016, with 379 patents granted, marking significant progress in key technology breakthroughs[59]. - Research and development expenses were RMB 362.6 million, down 19.1% from RMB 448.2 million in 2015[62]. - The company is committed to technology development, particularly in shale gas and deep well drilling technologies, to foster new growth points[102]. Revenue Breakdown - The company's international business revenue was RMB 12,702.9 million, a decrease of 8.5% year-on-year, accounting for 29.6% of total revenue, an increase of 6.6 percentage points[58]. - The revenue from the mainland China market was RMB 29,581.8 million, reflecting a decrease of 35.2% year-on-year[65]. - The company's geophysical service revenue was RMB 3,605.9 million, down 31.8% year-on-year, with a 67.6% decrease in 2D seismic completion[52]. - The engineering construction service revenue was RMB 12,827.1 million, a decrease of 16.6% year-on-year, with total contract value completed at RMB 12.12 billion, down 17.0%[57]. Shareholder and Corporate Governance - The company has committed to avoiding competition with its parent company, ensuring that subsidiaries will not engage in competing activities[135]. - The company has established a plan for equity incentives, which was approved by the board and shareholders in 2016[134]. - The company’s stock incentive plan was verified, ensuring all participants met legal and regulatory qualifications[178]. - The company has not reported any significant accounting errors or changes that would impact its financial statements[138]. - The company maintained a robust internal control system, with no significant deficiencies reported[179]. Related Party Transactions - The company engaged in related party transactions, with procurement of raw materials and equipment amounting to RMB 5,215 million, representing 22.9% of similar transactions[153]. - The company provided engineering services to China Petroleum & Chemical Corporation and its subsidiaries, totaling RMB 22,567 million, which is 52.6% of similar transactions[153]. - The company has not engaged in any entrusted financial management or investment activities during the reporting period[162]. Environmental and Social Responsibility - The company contributed RMB 200,000 in funds and RMB 300,000 in material donations for poverty alleviation efforts in Sichuan Province[164]. - The company was not listed among the severely polluting enterprises by environmental protection authorities in 2016[166].