海油发展(600968) - 2025 Q2 - 季度财报

Section I Definitions This section provides definitions for key terms and abbreviations used in the report, ensuring clarity and consistent understanding of its content 1.1 Definitions of Common Terms This chapter defines common terms and abbreviations used in the report, covering key information such as regulatory bodies, company entities, industry terms, and reporting periods, to ensure clear understanding of the report's content - The reporting period, current period, and current year refer to January 1, 2025, to June 30, 2025[13] - Key entities include: CSRC, SSE, CNOOC (controlling shareholder, actual controller), CNOOC Ltd., Finance Company, CNOOC EnerTech (the Company, the Issuer)[13] - Industry terms include: FPSO (Floating Production Storage and Offloading), LNG (Liquefied Natural Gas), CCUS (Carbon Capture, Utilization, and Storage), QHSE (Quality, Health, Safety, and Environment management system)[13] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, including registration details and stock listing, along with key financial data and performance indicators for the reporting period 2.1 Company Information This chapter provides the company's basic registration information, contact details, and stock listing overview, including its Chinese and English names, legal representative, board secretary's contact information, registered address, and stock code - The company's Chinese name is 中海油能源发展股份有限公司, abbreviated as 海油发展; its English name is CNOOC Energy Technology & Services Limited, abbreviated as CNOOC EnerTech[15] - The company's person in charge is Zhou Tianyu, and the Board Secretary is Xiao Debin, with contact number 010-84528003[15][16] - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation 海油发展 and stock code 600968[19] 2.2 Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue increased by 4.46% to 22.60 billion RMB, and net profit attributable to shareholders increased by 13.15% to 1.83 billion RMB, while net cash flow from operating activities significantly decreased by 137.86%, turning negative Key Accounting Data for H1 2025 | Indicator | Current Period (RMB) | Previous Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 22,596,522,210.98 | 21,632,109,153.92 | 4.46 | | Total Profit | 2,262,219,000.52 | 2,067,259,896.40 | 9.43 | | Net Profit Attributable to Shareholders of Listed Company | 1,829,340,807.46 | 1,616,743,525.70 | 13.15 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 1,833,600,379.10 | 1,524,165,010.72 | 20.30 | | Net Cash Flow from Operating Activities | -477,895,622.94 | 1,262,248,928.41 | -137.86 | Key Financial Indicators for H1 2025 | Indicator | Current Period | Previous Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.1800 | 0.1590 | 13.15 | | Diluted Earnings Per Share (RMB/share) | 0.1800 | 0.1590 | 13.15 | | Basic Earnings Per Share (Excluding Non-Recurring Gains and Losses) (RMB/share) | 0.1804 | 0.1499 | 20.30 | | Weighted Average Return on Net Assets (%) | 6.57 | 6.35 | Increased by 0.22 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains and Losses) (%) | 6.59 | 5.99 | Increased by 0.60 percentage points | Asset and Liability Data as of H1 2025 End | Indicator | Current Period End (RMB) | Previous Year End (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Assets Attributable to Shareholders of Listed Company | 27,620,536,376.03 | 27,162,818,706.79 | 1.69 | | Total Assets | 47,534,963,343.69 | 49,502,533,022.56 | -3.97 | 2.3 Non-Recurring Gains and Losses Items and Amounts In the first half of 2025, the company's total non-recurring gains and losses amounted to -4.26 million RMB, primarily due to asset typhoon damage repair expenses of -115 million RMB, partially offset by government grants of 44.23 million RMB and fair value changes in financial assets of 45.65 million RMB Non-Recurring Gains and Losses Items for H1 2025 | Non-Recurring Gains and Losses Item | Amount (RMB) | Notes (if applicable) | | :--- | :--- | :--- | | Gains and Losses on Disposal of Non-Current Assets | 5,938,859.11 | | | Government Grants Recognized in Current Profit and Loss | 44,227,985.34 | Mainly government grants for R&D, etc. | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities | 45,648,383.56 | Mainly fair value changes of financial assets held for trading | | Gains and Losses from Entrusted Investments or Asset Management | 16,534,630.13 | Mainly current period wealth management income from financial assets held for trading | | Other Non-Operating Income and Expenses | -114,904,156.89 | Mainly repair expenses for typhoon-damaged assets | | Other Items Meeting the Definition of Non-Recurring Gains and Losses | 3,416,230.30 | | | Less: Income Tax Impact | 2,239,238.27 | | | Minority Interest Impact (After Tax) | 2,882,264.92 | | | Total | -4,259,571.64 | | Section III Management Discussion and Analysis This section provides a comprehensive analysis of the company's industry, business operations, financial performance, core competitiveness, and risk factors during the reporting period 3.1 Description of Industry and Main Business Operations During the Reporting Period The company is deeply rooted in the oilfield services industry, actively responding to the national energy security strategy by building a coordinated development pattern of traditional and new energy, with its main businesses covering energy technology services, low-carbon environmental protection and digitalization, and energy logistics services, holding a dominant position in offshore oilfield floating production equipment and various technical fields, while actively expanding into new energy businesses such as offshore wind power, photovoltaics, and energy storage - The National Energy Administration emphasizes enhancing oil and gas reserve capacity and strengthening exploration and development, while the IEA forecasts global energy investment to reach 3.3 trillion USD in 2025, with clean energy investment being twice that of fossil fuels[29] - The company concentrates advantageous resources to continuously deepen its focus on three major industries: energy technology services, low-carbon environmental protection and digitalization, and energy logistics services[30] - The company is China's strongest and most comprehensive energy technology service provider for offshore oilfield floating production equipment, holding 7 FPSOs and maintaining a dominant position in China's offshore FPSO production technology service market[32] - The company has developed proprietary technological and product advantages in areas such as intelligent injection and production, artificial lift, heavy oil thermal recovery, skid-mounted manufacturing, and facility and equipment operation and maintenance[32] - Actively developing offshore wind power, photovoltaics, energy storage, and CCUS businesses, and holding a leading position in special environmental coatings, industrial water treatment, and new chemical materials[33] 3.2 Discussion and Analysis of Operations In the first half of 2025, the company achieved operating revenue of 22.60 billion RMB, a 4.46% year-on-year increase, and net profit attributable to shareholders of 1.83 billion RMB, a 13.15% year-on-year increase, demonstrating steady growth through enhanced industrial development quality, optimized layout, and deep market potential, with outstanding performance in the low-carbon environmental protection and digitalization industry - In the first half, operating revenue reached 22.60 billion RMB, a 4.46% year-on-year increase; net profit attributable to shareholders was 1.83 billion RMB, a 13.15% year-on-year increase[34] Operating Revenue and Growth by Industry for H1 2025 | Industry | Operating Revenue (Billion RMB) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Energy Technology Services Industry | 79.93 | 2.79 | | Low-Carbon Environmental Protection and Digitalization Industry | 38.70 | 11.17 | | Energy Logistics Services Industry | 116.40 | 5.13 | - Workload for downhole tools in the energy technology services industry increased by 16.11% year-on-year, artificial lift services by 3.24%, and equipment design, manufacturing, and O&M services by 5.42%[35] - Workload for new energy technology in the low-carbon environmental protection and digitalization industry increased by 32.89% year-on-year, safety emergency services by 22.70%, sales of refining and chemical catalytic materials by 29.02%, and digitalization business by 10.17%[36] - Terminal loading and unloading workload in the energy logistics services industry increased by 6.23% year-on-year, vessel calls by 10.46%, and commodity sales by 15.61%[37] - Accelerating the high-end, intelligent, and green transformation and upgrading of traditional industries, with 3 new smart factories entering trial operation[38] - Expediting the cultivation and development of strategic emerging and future industries, with the LNG carrier project entering the 'ten ships under construction simultaneously' phase[39] - Intensifying efforts in key core technology breakthroughs, with the successful application of the domestically developed first deepwater hydraulic intelligent flow control valve, and the world's first megawatt-scale seawater electrolysis hydrogen production unit successfully operating continuously for over 1,000 hours[39] - Continuously advancing brand building, forming a 'core master brand + specialty brand' product brand architecture, with permanent magnet electric pumps achieving an average power saving rate of 24.6%[40][41] - Deepening efforts in overseas markets, with new contracts signed totaling 31.60 million RMB, a 141% year-on-year increase[41] 3.3 Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in its full-chain service capabilities, comprehensive technology system, focused core brand building, 'people-oriented' management philosophy, and pursuit of excellence through lean thinking, collectively supporting high-quality development in the oil and gas value chain and new energy transition - Possessing full-lifecycle drilling and completion design capabilities from exploration to abandonment, as well as design, construction, and O&M capabilities for energy-saving, low-carbon, and environmentally friendly equipment, forming a full industrial chain business system and integrated service model[42] - Establishing seven major professional technical systems, owning 7 national-level R&D platforms, 1 national-level skill master studio, 7 postdoctoral workstations, and cumulatively receiving 156 provincial/ministerial level or higher scientific and technological awards[43] - Developing over 400 'star' products, enhancing brand awareness and reputation with a 'Hailong master brand + specialty brand' system[44] - Deeply advancing the talent-strengthening strategy, continuously optimizing talent development systems and mechanisms, and cumulatively introducing 50 professionals across various fields in the first half of the year[45][46] - Firmly establishing a lean management philosophy, focusing on safe production, product quality, cost control, and compliant operations, continuously improving the lean level of operational management[47] 3.4 Key Operating Performance During the Reporting Period This chapter details the reasons for changes in the company's financial statement items for the first half of 2025, where operating revenue and costs increased due to business growth, but net cash flow from operating activities significantly decreased due to increased payments for goods and services, while net cash outflow from investing activities decreased due to matured bank wealth management redemptions, and net cash outflow from financing activities increased due to profit distribution and debt repayment - Operating revenue increased by 4.46% year-on-year, primarily benefiting from the effectiveness of core capability building and continuous advancement of reserves and production, as well as growth in technical service workload, product manufacturing, and commodity sales[49] - Operating costs increased by 3.02% year-on-year, mainly due to the corresponding increase in operating cost scale from workload growth, while the company's continuous quality improvement, cost reduction, and efficiency enhancement initiatives kept the operating cost increase lower than the operating revenue increase[49] - Net cash flow from operating activities decreased by 137.86% year-on-year, primarily due to a 2.46 billion RMB year-on-year increase in cash paid for goods and services, a 0.39 billion RMB year-on-year increase in taxes and employee-related expenses, and a 1.24 billion RMB year-on-year increase in cash received from sales of goods and services[50] - Net cash outflow from investing activities decreased by 1.94 billion RMB year-on-year, primarily due to a 2.20 billion RMB year-on-year increase in cash received from matured bank wealth management redemptions, and a 0.28 billion RMB year-on-year increase in capital expenditures such as the acquisition of fixed assets[50] - Net cash outflow from financing activities increased by 0.55 billion RMB year-on-year, primarily due to a 0.28 billion RMB year-on-year increase in cash paid for profit distribution and a 0.25 billion RMB year-on-year increase in cash paid for debt repayment[52] - Non-operating expenses increased by 442.81% year-on-year, primarily due to repair expenses incurred from company assets damaged by a typhoon[52] 3.5 Analysis of Assets and Liabilities As of the end of the first half of 2025, the company's total assets were 47.53 billion RMB, a 3.97% decrease from the end of the previous year, with cash and cash equivalents decreasing by 34.54% due to increased payments for goods and services, while prepayments and contract liabilities grew by 269.60% and 75.84% respectively, mainly influenced by engineering project prepayments and optimized contract terms, and overseas assets accounted for 9.64% of total assets Major Changes in Assets and Liabilities as of H1 2025 End | Item Name | Current Period End (RMB) | Percentage of Total Assets at Current Period End (%) | Previous Year End (RMB) | Percentage of Total Assets at Previous Year End (%) | Percentage Change from Previous Year End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 4,363,387,817.64 | 9.18 | 6,665,817,800.98 | 13.47 | -34.54 | | Prepayments | 195,388,478.14 | 0.41 | 52,864,916.94 | 0.11 | 269.60 | | Other Receivables | 219,509,572.54 | 0.46 | 138,636,237.45 | 0.28 | 58.33 | | Short-Term Borrowings | 34,741,752.69 | 0.07 | 0.00 | 0.00 | Not applicable | | Contract Liabilities | 1,376,100,416.69 | 2.89 | 782,599,780.32 | 1.58 | 75.84 | | Employee Benefits Payable | 1,686,053,447.04 | 3.55 | 989,840,330.09 | 2.00 | 70.34 | | Taxes Payable | 500,783,541.24 | 1.05 | 920,825,415.62 | 1.86 | -45.62 | | Non-Current Liabilities Due Within One Year | 370,455,129.61 | 0.78 | 750,084,103.44 | 1.52 | -50.61 | | Special Reserves | 66,107,350.54 | 0.14 | 38,150,238.29 | 0.08 | 73.28 | - Cash and cash equivalents decreased by 34.54% from the end of the previous year, primarily due to increased cash payments for goods purchased and services received[55] - Prepayments increased by 269.60% from the end of the previous year, primarily due to increased prepayments related to engineering projects[55] - Other receivables increased by 58.33% from the end of the previous year, primarily due to the recognition of 0.52 billion RMB in advance insurance payments for typhoon-damaged assets during the current period[55] - Contract liabilities increased by 75.84% from the end of the previous year, primarily due to optimized contract terms and increased advance receipts from contracts[56] - Overseas assets amounted to 4.58 billion RMB, accounting for 9.64% of total assets[58] 3.6 Analysis of Investment Status The company continues to advance its LNG carrier joint venture project, with the first phase of 6 vessels fully funded and 2 already in operation, and the remainder scheduled for phased commissioning by 2026, while the second phase of 6 vessels are all under construction, planned for phased commissioning in 2026 and 2027, and the company also disclosed its financial assets measured at fair value - For the LNG carrier joint venture (Phase I) project, the company's wholly-owned subsidiary, CNOOC EnerTech Hong Kong Investment Company, has completed its full capital contribution of 135.45 million EUR[61][62] - The first and second vessels of Phase I were completed and put into operation in 2024, the third and fourth vessels are planned for completion and operation in October 2025, and the remaining two vessels are scheduled for phased completion and operation in 2026[62] - For the LNG carrier joint venture (Phase II) project, the company's wholly-owned subsidiary, CNOOC EnerTech Hong Kong Investment Company, has cumulatively contributed 127.46 million EUR, with all six vessels under construction, planned for phased completion and operation in 2026 and 2027[63][64] Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB) | Fair Value Change Gains/Losses for Current Period (RMB) | Amount Purchased in Current Period (RMB) | Amount Sold/Redeemed in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 5,220,692,953.44 | -38,043,187.43 | 4,000,000,000.00 | 4,800,000,000.00 | 4,382,649,766.01 | | Financing Receivables | 131,176,188.90 | | | | 184,724,316.38 | | Other Equity Instruments | 199,750,196.93 | -14,882,253.78 | | | 184,867,943.15 | | Total | 5,551,619,339.27 | -38,043,187.43 | 4,000,000,000.00 | 4,800,000,000.00 | 4,752,242,025.54 | 3.7 Analysis of Major Holding and Participating Companies This chapter analyzes the operating performance of two major holding subsidiaries, CNOOC Energy Technology & Services Equipment Technology Co., Ltd. and CNOOC Energy Logistics Co., Ltd., both achieving double-digit growth in revenue and net profit, attributed to core capability building, increased oil and gas reserves and production, and digital empowerment enhancing operational efficiency Operating Performance of Major Holding Subsidiaries | Company Name | Operating Revenue (Million RMB) | Operating Profit (Million RMB) | Net Profit (Million RMB) | | :--- | :--- | :--- | :--- | | CNOOC Energy Technology & Services Equipment Technology Co., Ltd. | 2,986.32 | 299.87 | 240.72 | | CNOOC Energy Logistics Co., Ltd. | 4,297.45 | 297.26 | 227.06 | - CNOOC Energy Technology & Services Equipment Technology Co., Ltd. reported current period revenue of 2.99 billion RMB, a 7.46% year-on-year increase; net profit of 0.24 billion RMB, a 70.48% year-on-year increase[67] - CNOOC Energy Logistics Co., Ltd. reported current period revenue of 4.30 billion RMB, a 0.23% year-on-year increase; net profit of 0.23 billion RMB, a 3.06% year-on-year increase[68] 3.8 Other Disclosures This chapter discloses the company's health, safety, environmental, oil price fluctuation, and international operation risks, and details the half-year implementation of the 'Quality Improvement, Efficiency Enhancement, and High Returns' action plan across operating performance, cash dividends, new quality productive forces development, investor communication, and corporate governance 3.8.1 Potential Risks The company faces inherent health, safety, and environmental risks in oil and gas production (affected by extreme weather and increased workload), oil price fluctuation risks (potentially leading to slower market demand and increased operational pressure), and international operation risks (global economic uncertainty, geopolitical volatility, legal sanctions, etc.), for which the company has formulated corresponding countermeasures to mitigate these risks - Health, Safety, and Environmental Risks: Inherent risks in oil and gas production, affected by extreme weather such as typhoons and heavy rains, and increased workload from enhanced reserves and production. Countermeasures include strengthening QHSE philosophy, contractor safety management, dynamic risk control, and emergency response capabilities[69] - Oil Price Fluctuation Risks: The company's business has relatively low sensitivity to oil prices, but prolonged low oil prices may still lead to slower market demand growth and increased operational pressure. Countermeasures include enhancing value creation capabilities, continuous cost reduction and efficiency improvement, and strengthening external market policies and measures[70] - International Operation Risks: Global economic uncertainty, geopolitical volatility, trade wars, and policy changes increase market entry difficulties. Countermeasures include solidifying strategic layout, increasing resource allocation, and strengthening business model innovation and risk assessment[70] 3.8.2 Half-Year Implementation of "Quality Improvement, Efficiency Enhancement, and High Returns" Action Plan In the first half of 2025, the company actively implemented its 'Quality Improvement, Efficiency Enhancement, and High Returns' action plan, achieving improved operating performance (double growth in revenue and net profit), sustained cash dividends (1.37 billion RMB distributed for 2024), accelerated development of new quality productive forces (LNG carrier project, wind power O&M vessel delivery, new materials base commencement), enhanced investor communication, and strengthened compliance operations - Focusing on core business and enhancing operating performance: In the first half, operating revenue reached 22.60 billion RMB, a 4.46% year-on-year increase; net profit attributable to shareholders was 1.83 billion RMB, a 13.07% year-on-year increase[72] - Sustaining cash dividends and valuing investor returns: The 2024 profit distribution plan has been implemented, distributing 1.37 billion RMB (tax inclusive) in cash dividends, accounting for 37.53% of the 2024 net profit attributable to shareholders, a 22.73% increase from the previous year[73] - Adhering to the development of new quality productive forces and accelerating the cultivation of strategic emerging industries: The LNG carrier project entered the 'ten ships under construction simultaneously' phase, high-speed wind power O&M vessels 'Haiyang Shiyou 511' and 'Haiyang Shiyou 512' were successfully delivered and put into operation, and the new materials base project (Phase I) commenced construction[74][75] - Strengthening investor communication and conveying company value: Strict information disclosure, holding the 2024 annual performance briefing, and enhancing market attention through roadshows and reverse roadshows[76] - Solidifying the foundation of compliant operations and enhancing governance quality: Revising governance systems such as the 'Articles of Association', improving the 'internal reference' mechanism, and compiling and issuing the annual 'Guidance on Reporting Major Matters'[77] Section IV Corporate Governance, Environment, and Society This section covers changes in the company's directors and senior management, profit distribution plans, employee incentive measures, environmental information disclosure, and efforts in poverty alleviation and rural revitalization 4.1 Changes in Company Directors and Senior Management The company's board of directors postponed its re-election due to ongoing preparations, ensuring continuity of work, and through a shareholders' meeting resolution, revised the 'Articles of Association' to remove provisions related to the supervisory board and supervisors, transferring their statutory functions to the Board's Audit Committee - The term of the company's fifth board of directors has expired, and the re-election has been postponed due to ongoing preparations, with board members, members of various special committees, and senior management continuing to perform their duties[79] - The company held its 2024 Annual General Meeting, approving the revision of the 'Articles of Association' to remove provisions related to the supervisory board and supervisors, clarifying that the original statutory functions of the supervisory board will be exercised by the Board's Audit Committee[79] 4.2 Profit Distribution or Capital Reserve Conversion Plan During the reporting period, the company's board of directors resolved not to proceed with a profit distribution or capital reserve conversion plan - No profit distribution or capital reserve conversion will be carried out during the reporting period[6][80] 4.3 Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures - During the reporting period, the company had no equity incentives, employee stock ownership plans, or other employee incentive measures[81] 4.4 Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company has 7 subsidiaries included in the list of enterprises required to disclose environmental information by law, with query indexes provided for each subsidiary's environmental information disclosure report - The company has 7 subsidiaries included in the list of enterprises required to disclose environmental information by law[82] - Some subsidiaries included in the list are: CNOOC (Tianjin) Oilfield Chemical Co., Ltd., CNOOC Energy Technology & Services Co., Ltd. Engineering Technology Huizhou Branch, CNOOC Environmental Services (Tianjin) Co., Ltd., among others[82] 4.5 Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work In the first half of 2025, the company actively promoted rural revitalization through consumer and industrial assistance, with its catering company signing assistance product sales orders totaling 8.84 million RMB, and the CNOOC Gannan Antelope Employment Factory achieving 23% year-on-year revenue growth and obtaining provincial industrial design center and Gansu Province 'specialized, refined, unique, and new' SME qualifications - As of the end of June 2025, CNOOC EnerTech's catering company had cumulatively signed assistance product sales orders totaling 8.84 million RMB[84] - As of the end of June 2025, the CNOOC Gannan Antelope Employment Factory had cumulative revenue (tax inclusive) of 38.48 million RMB, with a 23% year-on-year growth rate[84] - The CNOOC Gannan Antelope Employment Factory successfully obtained the '2025 Provincial Industrial Design Center' qualification and was awarded the 'Gansu Province Specialized, Refined, Unique, and New SME' qualification[84] Section V Significant Matters This section details the fulfillment of commitments, non-operating fund occupation, illegal guarantees, audit status, major litigation, related party transactions, and significant contracts 5.1 Fulfillment of Commitments During the reporting period, the company's controlling shareholder, CNOOC, and its directors and senior management strictly fulfilled various commitments, including resolving horizontal competition, reducing related party transactions, addressing property title defects, optimizing investment returns, and shared patent usage rights, ensuring the company's standardized operation and investor interests - CNOOC committed to resolving horizontal competition, not directly or indirectly participating in businesses that constitute substantial competition with the issuer, and providing a right of first refusal. This commitment was strictly fulfilled during the reporting period[86][87] - CNOOC committed to minimizing related party transactions with the issuer and its subsidiaries, and ensuring fair pricing for such transactions. This commitment was strictly fulfilled during the reporting period[87][88] - CNOOC committed to providing full compensation if the company is unable to continue leasing or using properties due to potential defects in leased properties. This commitment was strictly fulfilled during the reporting period[88] - CNOOC EnerTech's directors and senior management committed not to harm the company's interests, to restrict job-related consumption, not to engage in irrelevant investment consumption, and to link compensation systems with return-filling measures. This commitment was strictly fulfilled during the reporting period[88] - CNOOC committed to ensuring and maintaining CNOOC EnerTech's exclusive right to use shared patents and providing a right of first refusal. This commitment was strictly fulfilled during the reporting period[89] 5.2 Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period During the reporting period, the company had no non-operating fund occupation by its controlling shareholder or other related parties - During the reporting period, the company had no non-operating fund occupation by its controlling shareholder or other related parties[8] 5.3 Irregular Guarantees During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company had no external guarantees provided in violation of prescribed decision-making procedures[8] 5.4 Half-Year Report Audit Status This half-year report is unaudited, and the company's board of directors has resolved to re-appoint ZhongShen ZhongHuan Certified Public Accountants (Special General Partnership) as the company's financial and internal control audit firm for 2025 - This half-year report is unaudited[5][91] - The company has resolved to re-appoint ZhongShen ZhongHuan Certified Public Accountants (Special General Partnership) as the company's financial and internal control audit firm for 2025[91] 5.5 Major Litigation and Arbitration Matters During the reporting period, the company had no major litigation or arbitration matters - During the reporting period, the company had no major litigation or arbitration matters[91] 5.6 Major Related Party Transactions The company's daily operating related party transactions, joint external investments, and financial business with affiliated finance companies are all conducted according to prescribed procedures, ensuring fairness and compliance, with the LNG carrier joint venture project continuously advancing, and ongoing deposit, loan, and credit business with the affiliated finance company 5.6.1 Related Party Transactions Related to Daily Operations The company's daily operating related party transactions with CNOOC and its subsidiaries comply with regulations, with a 2025 annual related party transaction limit of 88.63 billion RMB, and independent directors deem the transaction prices fair and reasonable, with no harm to the company's and minority shareholders' interests - The company's 2025 annual daily related party transaction limit is 88.63 billion RMB[92] - Related party transaction disclosure and review procedures comply with relevant regulations such as the 'Shanghai Stock Exchange Listing Rules' and the 'Articles of Association'[92] - Independent directors believe that related party transactions are based on fair and reasonable pricing policies, determined with reference to market prices, and do not harm the interests of the company and all shareholders[93] 5.6.2 Major Related Party Transactions for Joint External Investments The company continues to advance its LNG carrier joint venture project, with 6 single-vessel companies established for Phase I, and the company's wholly-owned subsidiary, CNOOC EnerTech Hong Kong Investment Company, having completed its full capital contribution of 135.45 million EUR, with the first and second vessels in operation, and the remainder scheduled for phased commissioning by 2026, while 6 single-vessel companies for Phase II have also been established and are all under construction, planned for phased commissioning in 2026 and 2027 - For the LNG carrier joint venture (Phase I) project, the company's wholly-owned subsidiary, CNOOC EnerTech Hong Kong Investment Company, has completed its full capital contribution of 135.45 million EUR[94][95] - The first and second vessels of Phase I were completed and put into operation in 2024, the third and fourth vessels are planned for completion and operation in October 2025, and the remaining two vessels are scheduled for phased completion and operation in 2026[95] - For the LNG carrier joint venture (Phase II) project, the company's wholly-owned subsidiary, CNOOC EnerTech Hong Kong Investment Company, has cumulatively contributed 127.46 million EUR, with all six vessels under construction, planned for phased completion and operation in 2026 and 2027[96][97] 5.6.3 Financial Business Between the Company and Affiliated Finance Companies, and Between the Company's Controlled Finance Company and Related Parties The company has deposit, loan, and credit business dealings with CNOOC Finance Co., Ltd. As of the end of the reporting period, the company's deposit balance with the finance company was 1.81 billion RMB, loan balance was 1.72 billion RMB, and it obtained a credit line of 3.20 billion RMB, with actual utilization of 0.71 billion RMB Deposit Business with CNOOC Finance Co., Ltd. | Related Party | Daily Maximum Deposit Limit (Million RMB) | Deposit Interest Rate Range | Beginning Balance (Million RMB) | Total Deposits in Current Period (Million RMB) | Total Withdrawals in Current Period (Million RMB) | Ending Balance (Million RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Finance Company | 3,000.00 | 0.35%-1.35% | 2,007.75 | 1,565,809.07 | 1,567,767.35 | 1,811.92 | Loan Business with CNOOC Finance Co., Ltd. | Related Party | Loan Limit (Million RMB) | Loan Interest Rate Range | Beginning Balance (Million RMB) | Total Loans in Current Period (Million RMB) | Total Repayments in Current Period (Million RMB) | Ending Balance (Million RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Finance Company | 4,856.77 | 2.05%-3.15% | 1,702.35 | 387.88 | 366.32 | 1,723.91 | Credit Business with CNOOC Finance Co., Ltd. | Related Party | Business Type | Total Amount (Million RMB) | Actual Amount (Million RMB) | | :--- | :--- | :--- | :--- | | Finance Company | Credit Business (Guarantees, Bills of Exchange) | 3,200.00 | 709.62 | 5.7 Major Contracts and Their Performance This chapter primarily discloses the company's significant guarantees performed and unfulfilled during the reporting period, with total outstanding guarantee balances under existing agreements amounting to 1.10 billion RMB as of June 30, 2025, mainly providing credit and performance guarantees for subsidiaries 5.7.1 Major Guarantees Performed and Unfulfilled During the Reporting Period As of June 30, 2025, the company's total outstanding guarantee balances under existing agreements amounted to 1.10 billion RMB, accounting for 3.97% of the company's net assets, including 59.18 million RMB for its associate Tianjin Jinniu New Materials Co., Ltd., 70.99 million RMB for wholly-owned/controlled subsidiaries' credit, and 967 million RMB for subsidiaries' performance guarantees Total Guarantee Amount | Indicator | Amount (Million RMB) | | :--- | :--- | | Total Guarantee Balance at Period End (A) (Excluding Guarantees for Subsidiaries) | 59.18 | | Total Guarantees Provided to Subsidiaries During the Period | 976.62 | | Total Guarantee Balance for Subsidiaries at Period End (B) | 1,037.99 | | Total Guarantees (A+B) | 1,097.17 | | Percentage of Total Guarantees to Company's Net Assets (%) | 3.97 | - The company provided guarantees for its associate, Tianjin Jinniu New Materials Co., Ltd., to apply for credit lines from financial institutions, with a guarantee balance of 59.18 million RMB[108] - The company provided credit guarantees for its wholly-owned/controlled subsidiaries, with a guarantee balance of 70.99 million RMB[108] - The company provided performance guarantees for CNOOC EnerTech (Zhuhai) Sales Service Co., Ltd. and CNOOC Energy Technology & Services Zhuhai Petrochemical Sales Co., Ltd., with a guarantee balance of 967 million RMB[108] Section VI Share Changes and Shareholder Information This section outlines changes in the company's share capital and provides detailed information on its shareholders, including the total number of shareholders and the top ten shareholders 6.1 Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[110] 6.2 Shareholder Information As of the end of the reporting period, the company had a total of 66,713 common shareholders, with China National Offshore Oil Corporation as the controlling shareholder, holding 81.65% of the shares - As of the end of the reporting period, the total number of common shareholders was 66,713[111] Top Ten Shareholders' Shareholdings | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | China National Offshore Oil Corporation | 8,300,000,000 | 81.65 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 159,712,080 | 1.57 | Other | | Wang Jingqing | 73,302,500 | 0.72 | Domestic Natural Person | | National Council for Social Security Fund 101 Portfolio | 55,160,600 | 0.54 | Other | | Basic Pension Insurance Fund 808 Portfolio | 52,102,200 | 0.51 | Other | | China Construction Bank Corporation - Yinhua Wealthy Theme Mixed Securities Investment Fund | 39,000,000 | 0.38 | Other | | BOCOM Schroders Fund - China Life Insurance Co., Ltd. - Traditional Insurance - BOCOM Schroders China Life Balanced Equity Traditional Available-for-Sale Single Asset Management Plan | 30,766,695 | 0.30 | Other | | Fullgoal Fund - China Life Insurance Co., Ltd. - Traditional Insurance - Fullgoal Fund China Life Growth Equity Traditional Available-for-Sale Single Asset Management Plan | 30,128,400 | 0.30 | Other | | Agricultural Bank of China Limited - CSI 500 ETF | 30,117,054 | 0.30 | Other | | BOCOM Schroders Fund - China Life Insurance Co., Ltd. - Participating Insurance - BOCOM Schroders Fund China Life Balanced Equity Portfolio Single Asset Management Plan (Available-for-Sale) | 28,983,100 | 0.29 | Other | Section VII Bond-Related Information This section confirms the absence of company bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds during the reporting period 7.1 Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[119] 7.2 Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds[119] Section VIII Financial Report This section presents the company's financial statements, including the audit report, balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies, taxes, and financial risks 8.1 Audit Report This half-year report is unaudited - This half-year report is unaudited[3][121] 8.2 Financial Statements This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for the first half of 2025, comprehensively reflecting its financial position, operating results, and cash flow - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in equity, and parent company statement of changes in equity[121][124][128][132][136][139][142][145][148][151][155][156][159] 8.3 Company Basic Information CNOOC Energy Technology & Services Co., Ltd. was established on February 22, 2005, with a registered capital of 10.17 billion RMB, and its legal representative is Zhu Lei, with main businesses covering energy technology services, low-carbon environmental protection and digitalization, and energy logistics services, and its ultimate controlling shareholder is China National Offshore Oil Corporation - The company's predecessor was CNOOC Base Group Co., Ltd., established on February 22, 2005[160] - The company's registered capital is 10.17 billion RMB, and its legal representative is Zhu Lei[162] - The company primarily engages in businesses such as energy technology services, low-carbon environmental protection and digitalization, and energy logistics services[163] - The company's ultimate controlling shareholder is China National Offshore Oil Corporation[164] 8.4 Basis of Financial Statement Preparation The Group's financial statements are prepared on a going concern basis, in accordance with the 'Accounting Standards for Business Enterprises' issued by the Ministry of Finance and the 'No. 15 Rules for the Preparation of Information Disclosure by Companies Issuing Securities to the Public - General Provisions on Financial Reports (Revised 2023)' issued by the CSRC, primarily using historical cost measurement - Financial statements are prepared on a going concern basis[165][166] - The preparation basis is the 'Accounting Standards for Business Enterprises' and the 'No. 15 Rules for the Preparation of Information Disclosure by Companies Issuing Securities to the Public - General Provisions on Financial Reports (Revised 2023)' issued by the CSRC[165] - Accounting is based on the accrual basis, and except for certain financial instruments, measurement is primarily based on historical cost[165] 8.5 Significant Accounting Policies and Estimates This chapter elaborates on the significant accounting policies and estimates followed by the company in preparing its financial statements, covering the classification, measurement, and impairment of financial instruments, revenue recognition principles, depreciation of fixed assets, amortization of intangible assets and capitalization standards for R&D expenditures, as well as specific accounting treatments for employee compensation, provisions, and leases - Financial instruments are classified as measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[186] - Impairment of financial assets adopts the expected credit loss model, with loss provisions for accounts receivable and contract assets always measured at expected credit losses over their entire lifetime[195][196] - Revenue is recognized when the performance obligation in the contract is satisfied, i.e., when the customer obtains control of the related goods or services[243] - Fixed assets are depreciated using the straight-line method, with depreciation periods of 10-45 years for buildings and structures and 5-25 years for machinery and equipment[221] - R&D expenditures are divided into research and development phases, with research phase expenditures recognized in current profit or loss, and development phase expenditures recognized as intangible assets when specific conditions are met[228] 8.6 Taxes The company's main taxes include VAT, consumption tax, urban maintenance and construction tax, education surcharge, and corporate income tax, with the company and several subsidiaries enjoying a 15% preferential corporate income tax rate as high-tech enterprises, and some subsidiaries benefiting from VAT reductions or immediate refunds for comprehensive resource utilization and environmental protection services Major Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Based on sales of goods and taxable services calculated according to tax laws, after deducting current deductible input VAT, the difference is the VAT payable | 13.00, 9.00, 6.00, 5.00, 3.00 | | Corporate Income Tax | Calculated based on taxable income | 25.00, 16.50, 15.00 | - The company and several subsidiaries (e.g., Tianjin Zhengda Technology Co., Ltd., CNOOC (Guangdong) New Energy Engineering Design Co., Ltd.) enjoy a 15% preferential corporate income tax rate as high-tech enterprises[259][260][261][262][263][264][265][266][267][269][270][271][272][273][274][275] - CNOOC Environmental Services (Tianjin) Co., Ltd.'s recycled water projects, waste treatment, and sewage treatment services enjoy VAT reductions or immediate refunds[276] - CNOOC Energy Saving and Environmental Protection Services Co., Ltd.'s income from contract energy management projects is exempt from VAT[276] 8.7 Notes to Consolidated Financial Statement Items This chapter details the specific conditions and reasons for changes in each item of the consolidated financial statements, providing comprehensive explanations for major asset and liability items such as cash and cash equivalents, accounts receivable, contract liabilities, fixed assets, and long-term equity investments, including differences between period-end and beginning balances, and also thoroughly analyzing income statement items like operating revenue, operating costs, investment income, and credit impairment losses Composition of Cash and Cash Equivalents | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Bank Deposits | 2,549,510,027.98 | 4,656,112,553.82 | | Deposits with Finance Company | 1,811,924,544.95 | 2,007,752,699.78 | | Total | 4,363,387,817.64 | 6,665,817,800.98 | - The ending balance of financial assets held for trading was 4.38 billion RMB, primarily consisting of structured deposits (4.35 billion RMB)[280] - The ending balance of accounts receivable was 10.63 billion RMB, with 97.66% having an aging of less than 1 year[291] - The ending balance of contract liabilities was 1.38 billion RMB, an increase of 75.84% from the beginning of the period[415] - The ending balance of long-term equity investments was 4.32 billion RMB, primarily including investments in joint ventures and associates[350][351][352][353][354][355][356] - Operating revenue for the current period was 22.60 billion RMB, and operating costs were 19.13 billion RMB[453] - Net cash flow from operating activities was -0.48 billion RMB, a 137.86% year-on-year decrease[483] 8.8 Research and Development Expenses In the first half of 2025, the company's total R&D expenses amounted to 0.43 billion RMB, a 1.20% year-on-year increase, all expensed, with major investment areas being employee compensation, outsourcing fees, and material costs R&D Expenses by Nature of Expense | Item | Amount Incurred in Current Period (RMB) | Amount Incurred in Previous Period (RMB) | | :--- | :--- | :--- | | Employee Compensation | 248,556,006.02 | 226,191,130.69 | | Outsourcing Fees | 66,663,738.62 | 73,586,893.14 | | Material Costs | 56,407,443.90 | 55,873,444.85 | | Depreciation and Amortization Expenses | 18,403,531.52 | 30,387,534.02 | | Total | 431,964,669.50 | 426,841,977.89 | - Total R&D expenses for the current period were 431.96 million RMB, a 1.20% year-on-year increase[495] - All R&D expenditures have been expensed[495] 8.9 Changes in Consolidation Scope During the reporting period, there were no changes in the company's consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries - During the reporting period, there were no changes in the company's consolidation scope[497] 8.10 Interests in Other Entities This chapter details the company's interests in subsidiaries, joint ventures, and associates, including each entity's registration information, business nature, shareholding percentage, and key financial data, reflecting the company's numerous subsidiaries and significant joint ventures and associates in various LNG transportation and technical service sectors 8.10.1 Interests in Subsidiaries The company owns numerous subsidiaries spanning various fields such as scientific research, technical services, logistics, chemicals, and environmental protection, mostly with 100% ownership, and this chapter details the basic information of each subsidiary and the key financial data of significant non-wholly-owned subsidiaries, reflecting the company's diversified business layout - The company owns numerous subsidiaries such as CNOOC Information Technology Co., Ltd., CNOOC Energy Logistics Co., Ltd., and CNOOC Energy Technology & Services Equipment Technology Co., Ltd., with business natures covering scientific research and technical services, road transportation, and wholesale of petroleum and products[499][500][501][502] Minority Interests in Significant Non-Wholly-Owned Subsidiaries | Subsidiary Name | Minority Shareholding Percentage (%) | Profit/Loss Attributable to Minority Shareholders for Current Period (RMB) | Dividends Declared to Minority Shareholders for Current Period (RMB) | Minority Interest Balance at Period End (RMB) | | :--- | :--- | :--- | :--- | :--- | | CNOOC Industrial Gases (Ningbo) Co., Ltd. | 35.00 | 446,471.96 | | 71,082,548.89 | | CNOOC Industrial Gases (Zhuhai) Co., Ltd. | 30.00 | -2,348,790.09 | | 13,389,720.88 | | CNOOC Safety Technology Services Co., Ltd. | 10.00 | 9,092,082.92 | 13,918,954.02 | 42,941,684.37 | | Ningbo CNOOC Shipping Co., Ltd. | 35.00 | 18,968,749.31 | 39,505,343.36 | 25,118,249.31 | | CNOOC (Zhoushan) Energy Logistics Co., Ltd. | 30.00 | 3,190,744.59 | 4,698,000.00 | 38,219,023.10 | | CNOOC (Huizhou) Logistics Co., Ltd. | 4.50 | 3,924,016.71 | 4,567,734.38 | 44,385,154.95 | | Nanhai Western Petroleum Oilfield Services (Shenzhen) Co., Ltd. | 25.00 | 9,778,143.64 | 21,024,978.38 | 321,321,249.16 | | CNOOC EnerTech Schwitzer Shipping Services (Guangdong) Co., Ltd. | 49.00 | 3,510,358.33 | 7,847,546.19 | 66,694,241.46 | 8.10.2 Interests in Joint Ventures or Associates The company holds interests in multiple joint ventures and associates, primarily in LNG transportation, chemical products, and technical services, and this chapter details the key financial information of significant joint ventures and associates, as well as aggregated financial information for insignificant joint ventures and associates - Significant joint ventures include CNOOC Air Products (Fujian) Co., Ltd. and Shenzhen Weisheng Petroleum Pipe Equipment Co., Ltd.[511] - Significant associates include Shanghai LNG Shipping Co., Ltd., Shenzhen Shanye Industrial Co., Ltd., Zhanjiang Nanyou Lihai Automation Engineering Co., Ltd., and several LNG transportation companies (e.g., PAN AFRICA LNG TRANSPORTATION COMPANY LIMITED)[512] Aggregated Financial Information of Insignificant Joint Ventures and Associates | Item | Ending Balance / Amount Incurred in Current Period (RMB) | Beginning Balance / Amount Incurred in Previous Period (RMB) | | :--- | :--- | :--- | | Joint Ventures: | | | | Total Carrying Amount of Investments | 2,340,597,162.29 | 2,286,774,164.40 | | --Net Profit | -19,516,728.64 | -25,187,840.82 | | --Other Comprehensive Income | -8,707,854.12 | 119,617,872.19 | | --Total Comprehensive Income | -28,224,582.76 | 94,430,031.37 | | Associates: | | | | Total Carrying Amount of Investments | 45,809,106.89 | 52,997,757.52 | | --Net Profit | -7,185,359.01 | -1,959,883.88 | | --Other Comprehensive Income | -3,291.62 | | | --Total Comprehensive Income | -7,188,650.63 | -1,959,883.88 | 8.11 Government Grants In the first half of 2025, the company's total government grants recognized in current profit or loss amounted to 44.23 million RMB, with 4.09 million RMB related to assets and 40.14 million RMB related to income, and 192 million RMB in government grants remaining in deferred income Government Grants Recognized in Current Profit or Loss | Type | Amount Incurred in Current Period (RMB) | Amount Incurred in Previous Period (RMB) | | :--- | :--- | :--- | | Asset-Related | 4,085,782.80 | 3,452,734.23 | | Income-Related | 40,142,202.54 | 56,367,434.91 | | Total | 44,227,985.34 | 59,820,169.14 | Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (RMB) | New Grants Added in Current Period (RMB) | Transferred to Other Income in Current Period (RMB) | Ending Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 96,576,536.18 | 16,515,039.31 | 4,085,782.80 | 109,005,792.69 | Asset-Related | | Deferred Income | 83,123,831.31 | 30,750,340.74 | 30,552,635.90 | 83,321,536.15 | Income-Related | | Total | 179,700,367.49 | 47,265,380.05 | 34,638,418.70 | 192,327,328.84 | / | 8.12 Risks Related to Financial Instruments The company faces market risks (including exchange rate risk, interest rate risk, and other price risks), credit risk, and liquidity risk, which it manages through close monitoring of market changes, maintaining an appropriate mix of fixed and floating rate instruments, establishing credit limits and monitoring procedures, and ensuring sufficient funding liquidity - Market risks include exchange rate risk (primarily from USD-denominated financial assets and liabilities), interest rate risk (fixed and floating rate instruments), and other price risks (fluctuations in energy service market prices)[535][537][538] - Credit risk primarily arises from counterparties failing to fulfill contractual obligations, which the company manages through credit limits, approval, and recovery procedures[539] - Liquidity risk is managed by ensuring sufficient funding liquidity, regularly analyzing liability structure and maturity, and maintaining credit lines[540] Liquidity Risk Analysis (Undiscounted Remaining Contractual Obligations) | Item | Within One Year (RMB) | One to Two Years (RMB) | Two to Five Years (RMB) | Over Five Years (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Payable | 10,565,398,488.19 | | | | 10,565,398,488.19 | | Other Payables | 557,480,377.44 | | | | 557,480,377.44 | | Non-Current Liabilities Due Within One Year | 370,455,129.61 | | | | 370,455,129.61 | | Long-Term Borrowings | | 662,446,956.73 | 1,102,859,001.70 | 586,325,911.73 | 2,351,631,870.16 | | Long-Term Payables | | 28,541,5