Financial Performance - In 2021, Hilong Holding Limited achieved a revenue of RMB 2,917 million, an increase of approximately 11% compared to 2020, with a net profit of RMB 47.6 million[7]. - Total revenue increased by RMB 293.9 million or 11.2% from RMB 2,623.0 million in 2020 to RMB 2,916.9 million in 2021[19]. - The company reported a net profit attributable to owners of the company of RMB 44.2 million in 2021, a recovery from a loss of RMB 298.8 million in 2020[34]. - The company reported a significant increase in revenue, with a year-on-year growth of 15% in the latest fiscal year[82]. - The company reported a significant increase in revenue for the fiscal year ending December 31, 2021, with total revenue reaching approximately $1.2 billion, representing a year-over-year growth of 15%[96]. Segment Performance - The oilfield equipment manufacturing and services segment recorded revenue of RMB 1,205 million, a decrease of 8% year-on-year, while the oilfield services segment saw a revenue increase of 24% to RMB 845 million[8]. - The pipeline technology and services segment achieved revenue of RMB 389 million, a significant increase of 53% year-on-year, with all business contracts reaching historical highs[9]. - The marine engineering services segment reported revenue of RMB 478 million, up 26% year-on-year, successfully completing complex projects and contributing stable cash flow[9]. - Revenue from oilfield services increased to RMB 845.3 million, representing 29.0% of total revenue in 2021[17]. - Revenue from pipeline technology and services increased to RMB 388.7 million, accounting for 13.4% of total revenue in 2021[17]. Market Outlook and Strategy - Looking ahead to 2022, the company anticipates further growth in industry investment and workload driven by rising global energy demand and oil prices[11]. - Hilong plans to adopt differentiated marketing strategies in the domestic market for drill pipe business while maintaining strategic partnerships in overseas markets[11]. - The company intends to expand its trade business by developing new trade products and exploring overseas opportunities[11]. - The oil and gas industry is expected to recover, driven by rising global energy demand and increasing oil prices, which have reached recent highs[72]. - The company plans to focus on high-end products in the domestic drill rod market, including sulfur-resistant drill rods and titanium alloy drill rods[73]. Cost Management and Financial Health - Gross profit increased by RMB 204.3 million or 29.4% to RMB 898.3 million in 2021 from RMB 694.0 million in 2020, with a gross margin of 30.8%, up 4.3% from the previous year[26]. - Selling and marketing costs decreased by RMB 9.8 million or 8.2% to RMB 110.1 million in 2021, accounting for 3.8% of revenue, down from 4.6% in 2020[27]. - Administrative expenses rose by RMB 26.5 million or 6.6% to RMB 425.3 million in 2021, mainly due to increased consulting and R&D expenses[28]. - The company has maintained a strong balance sheet, with total assets reported at $3 billion, reflecting a solid financial position to support future growth initiatives[97]. - The company has implemented measures to reduce capital expenditures and improve cash flow management during the reporting period[62]. Research and Development - The company has made significant advancements in R&D, including the development of high-strength drill pipes and OCTG coatings tailored for the Middle East market[69]. - Investment in R&D has increased by 25%, focusing on innovative technologies in oil drilling and production[82]. - The company is investing in new technology development, allocating $10 million for R&D in advanced drilling techniques[88]. Corporate Governance - The board consists of eight directors, including two executive directors, three non-executive directors, and three independent non-executive directors[114]. - The company has established three committees under the board: Audit Committee, Remuneration Committee, and Nomination Committee, with clear written terms of reference[131]. - The board has adopted a diversity policy aimed at achieving sustainable and balanced development, considering various diversity aspects such as gender, age, and professional experience[142]. - The company confirmed its responsibility for preparing the financial statements for the year ended December 31, 2021[157]. Environmental and Social Responsibility - The company has implemented a health, safety, and environmental management system to ensure operations do not harm the environment and complies with health and safety policies[188]. - The company is committed to adhering to environmental laws and regulations, ensuring compliance with national and local standards[188]. - The group actively participates in community activities and collaborates with charitable organizations to improve community welfare[198]. Operational Efficiency - The company aims to reduce operational costs by 15% through efficiency improvements and technology upgrades[82]. - The company has implemented new operational strategies aimed at improving efficiency, which are projected to reduce costs by approximately 5% over the next fiscal year[108]. - The company emphasizes effective communication with shareholders to enhance investor relations and transparency[179].
海隆控股(01623) - 2021 - 年度财报