COSL(SH:601808)2016-03-29 16:00Financial Performance - The company achieved a net profit of RMB 1,108,706,024 for the year 2015, with a net profit attributable to shareholders of RMB 1,073,907,130[2]. - In 2015, the company's operating revenue decreased by 29.9% to RMB 23,654 million compared to RMB 33,720 million in 2014[18]. - The net profit attributable to shareholders dropped by 85.7% to RMB 1,073.9 million from RMB 7,492.1 million in the previous year[18]. - The basic earnings per share fell by 85.4% to RMB 0.23, down from RMB 1.57 in 2014[19]. - The company reported a net cash flow from operating activities of RMB 6,556.2 million, a decrease of 35.5% from RMB 10,159.7 million in 2014[18]. - The gross profit margin decreased by 12.1 percentage points to 18.3%, primarily due to low oil prices and reduced demand in the oilfield services sector[71]. - The company reported a significant reduction in costs, with employee compensation in drilling services decreasing by 35.8% year-over-year[75]. - The net profit for 2015 was RMB 1,108.7 million, reflecting a significant decline of 85.3% year-on-year[67]. Dividend and Profit Distribution - As of the end of 2015, the company had a distributable retained profit of RMB 27,231,095,428 after distributing RMB 2,290,364,160 in dividends for the previous year[2]. - The company plans to distribute a cash dividend of RMB 0.068 per share, totaling RMB 324,468,256[2]. - The company aims to maintain a dividend payout ratio of at least 20% of the annual net profit, with a cash dividend of RMB 0.68 per share for 2015, totaling RMB 324,468,256[101]. Risks and Challenges - Major risks include fluctuations in oil and gas prices and safety and environmental risks[5]. - The company faced challenges due to low oil prices, leading to a reduction in exploration and development investments by oil companies[25]. - The company anticipates a significant decline in revenue and operating profit for 2016 compared to 2015 due to reduced capital expenditures by oil and gas companies[95]. - The company faces risks related to fluctuating oil prices, which may lead to reduced exploration and production investments by oil companies[97]. Assets and Liabilities - Total assets increased by 7.7% to RMB 93,525.1 million at the end of 2015, compared to RMB 86,874.3 million at the end of 2014[18]. - The company's overseas assets amounted to RMB 44.95 billion, accounting for 48.1% of total assets[29]. - The company recorded goodwill impairment of RMB 923.2 million, reducing total goodwill to RMB 3.39 billion, a decrease of 17.7% from the beginning of the year[29]. Operational Efficiency and Cost Control - The company emphasized cost control and operational efficiency, exceeding its annual cost reduction targets through various measures[43]. - The company achieved a utilization rate of 87.2% for its owned fleet, a decrease of 6.4 percentage points year-on-year[59]. - The company plans to enhance cash flow management and optimize financial structure while continuing to strengthen strategic partnerships with key clients in 2016[46]. Research and Development - The company has a comprehensive service chain and a strong R&D system, which enhances its competitive edge in the oilfield service industry[32]. - The company’s research and development expenses in 2015 were RMB 882.0 million, a decrease of 19.1% from RMB 1,089.8 million in 2014[70]. - Research and development expenditures totaled RMB 881,981,480, accounting for 3.7% of total revenue, with 10.2% of the workforce dedicated to R&D[77]. Market Position and Strategy - The company is one of the largest oilfield service providers globally, offering integrated services across the entire oil and gas exploration and production process[28]. - The company aims to enhance cooperation with oil companies and promote new technologies to help reduce costs amid market challenges[25]. - The company has successfully entered international markets, including operations in the Gulf of Mexico and Indonesia, while expanding domestic market presence[48]. Corporate Governance - The company’s board of directors includes three independent directors with extensive experience in finance, law, and financial sectors[170]. - The company confirmed that its internal control systems were effective and did not reveal any significant deficiencies during the reporting period[187]. - The independent directors effectively fulfilled their responsibilities, particularly in reviewing financial reports and risk management[170]. Financial Management - The company has engaged in various entrusted financial management products, including investments with China Merchants Bank totaling 500 million RMB, yielding returns of 4.96 million RMB[120]. - The company has consistently achieved positive returns across its financial investments, demonstrating effective asset management strategies[121]. - The total amount of entrusted financial management reached 9.8 billion RMB, with actual returns amounting to approximately 96.88 million RMB[120]. Shareholder Information - The total number of ordinary shares as of December 31, 2015, is 4,771,592,000, with China National Offshore Oil Corporation holding 2,410,849,300 shares, accounting for 50.53% of the total[128]. - The number of ordinary shareholders increased from 80,244 to 80,425 during the reporting period[133]. - The top ten shareholders include China National Offshore Oil Corporation with 50.53% and Hong Kong Central Clearing (Agent) Co., Ltd. with 37.89%[135].