2018-03-27 16:00Financial Performance - The net profit attributable to shareholders for 2017 was RMB -10,582,541 thousand according to Chinese accounting standards, and RMB -10,556,132 thousand according to International Financial Reporting Standards[3]. - The company's undistributed profits at the end of 2017 were RMB -1,496,150 thousand, leading to a recommendation of no cash dividend distribution for the year[3]. - The company has experienced net losses for two consecutive years (2016 and 2017), resulting in a risk warning for delisting of A-shares if losses continue in 2018[6]. - The company's operating revenue for 2017 was RMB 48,485,788 thousand, an increase of 13.0% compared to RMB 42,923,500 thousand in 2016[22]. - The net loss attributable to shareholders for 2017 was RMB -10,582,541 thousand, an improvement from RMB -16,114,763 thousand in 2016[22]. - The net cash flow from operating activities for 2017 was RMB 419,456 thousand, a significant recovery from RMB -3,907,318 thousand in 2016[22]. - The total assets at the end of 2017 were RMB 61,942,629 thousand, a decrease of 16.8% from RMB 74,493,166 thousand at the end of 2016[22]. - The basic earnings per share for 2017 was RMB -0.748, an improvement from RMB -1.139 in 2016[23]. - The weighted average return on equity for 2017 was -335.78%, a decrease of 238.59 percentage points from -97.19% in 2016[24]. - The company reported a total of RMB -183,245 thousand in non-recurring gains and losses for 2017, compared to RMB 59,108 thousand in 2016[27]. Operational Highlights - The company secured new contracts worth RMB 30.3 billion, representing a year-on-year growth of 27.8%[42]. - The company signed new contracts worth RMB 10.6 billion in the domestic market, a year-on-year increase of 70.9%[43]. - In the overseas market, the company signed new contracts worth USD 1.90 billion, completing contracts worth USD 2.02 billion[43]. - The company completed a total of 736,000 meters of drilling in 2017, an increase of 33.6% year-on-year[53]. - The company’s seismic service revenue reached RMB 3.98 billion, a 10.4% increase from the previous year[52]. - The engineering construction service business achieved a revenue of RMB 11,740,711 thousand in 2017, a decrease of 8.5% compared to RMB 12,827,062 thousand in the previous year[57]. - The international business generated a revenue of RMB 12,936,519 thousand, an increase of 1.8% from RMB 12,702,961 thousand, accounting for 26.7% of total revenue, down 2.9 percentage points year-on-year[58]. Future Plans and Strategies - The company plans to implement a series of measures including deepening internal reforms, expanding market reach, and strict cost control to achieve profitability[6]. - The company plans to sign new contracts worth RMB 57.8 billion in 2018, focusing on market expansion and efficiency improvement[46]. - The company aims to optimize its structure and enhance its core competitiveness through technological innovation and service quality improvement[46]. - The company aims to achieve a cost reduction of RMB 3.1 billion in 2018 through comprehensive cost management strategies[103]. - The company expects the oilfield service industry to experience a recovery in 2018, driven by a stable increase in international oil prices and rising demand for natural gas[92]. - The company plans to allocate capital expenditures of RMB 1.5 billion in 2018, focusing on market expansion, emerging business development, equipment upgrades, safety improvements, and ERP system construction[104]. Risk Factors - The company emphasizes the uncertainty of future plans and development strategies, advising investors to be aware of investment risks[3]. - The company faces various risks including international oil price fluctuations, market competition, environmental damage, and foreign exchange risks[106][107][110][116]. Corporate Governance - The board of directors has proposed that the profit distribution plan be submitted for shareholder meeting approval due to negative undistributed profits[3]. - The company has undergone audits by accounting firms, receiving standard unqualified audit reports for its financial statements[2]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[4]. - There are no violations of decision-making procedures regarding external guarantees[5]. - The company has committed to avoiding competition with its controlling shareholder, China Petroleum & Chemical Corporation, ensuring that it will not engage in competing activities[137]. - The company has established an internal control system that is effectively implemented, with no significant deficiencies found[178]. Shareholder Information - As of December 31, 2017, the total number of shareholders was 163,687, with 163,338 being domestic A-share shareholders and 339 being overseas H-share shareholders[183]. - China Petroleum & Chemical Corporation (Sinopec Group) holds 9,224,327,662 shares, representing 65.22% of the total shares[184]. - After the private placement, Sinopec Group directly and indirectly holds 13,323,683,351 shares, accounting for 70.18% of the total shares[189]. Research and Development - The company applied for 494 domestic and international patents and received 322 patent authorizations in 2017, with significant advancements in shale gas exploration technology[60]. - The company’s R&D expenditure rose by 42.8% to RMB 517,599 thousand, reflecting a commitment to innovation[63]. - The company is committed to investing in research and development to drive innovation and maintain competitive advantage[200].