2019-03-25 16:00Financial Performance - The net profit attributable to shareholders for 2018 was RMB 142,056 thousand according to Chinese accounting standards, and RMB 240,188 thousand according to IFRS[5] - The company reported a negative retained earnings of RMB -1,466,064 thousand at the end of 2018, leading to a recommendation of no cash dividend distribution for the year[5] - The company's operating revenue for 2018 was RMB 58,409,078 thousand, representing a 20.2% increase compared to RMB 48,593,948 thousand in 2017[22] - The net profit attributable to shareholders for 2018 was RMB 142,056 thousand, a significant recovery from a loss of RMB 10,589,524 thousand in 2017[22] - The basic earnings per share for 2018 was RMB 0.008, compared to a loss of RMB 0.749 per share in 2017[23] - The weighted average return on equity for 2018 was 2.86%, a significant improvement from -335.35% in 2017[23] - The company reported a net loss of RMB 297,918 thousand in the fourth quarter of 2018, despite positive net profits in the earlier quarters[25] - The company reported a total of RMB 472,569 thousand in government subsidies recognized in 2018, an increase from RMB 150,674 thousand in 2017[26] - The company achieved a net cash flow from financing activities of RMB 3,618,785 thousand, a significant increase of 383.8% compared to RMB 748,034 thousand in 2017[63] - The company’s total liabilities decreased by 8.4% to RMB 60,000,000 thousand, with a significant reduction in contract liabilities by 48.7%[78] Assets and Liabilities - The total assets at the end of 2018 were RMB 60,904,715 thousand, showing a decrease of 1.9% from RMB 62,089,315 thousand at the end of 2017[22] - The company's total liabilities were RMB 55.13 billion, with a debt-to-asset ratio of 90.5%, down 12.9 percentage points from the previous year[36] - The total assets as of December 31, 2018, were RMB 60,904,715 thousand, a decrease of 1.9% from RMB 62,089,315 thousand in 2017[112] - Total liabilities decreased by 14.1% to RMB 55,126,305 thousand from RMB 64,190,633 thousand in 2017[112] - The company's equity attributable to shareholders increased to RMB 5,778,410 thousand, up from a negative RMB 2,099,946 thousand in 2017[116] - The company's asset-liability ratio improved to 90.5% from 103.4% in 2017[117] Business Operations - The company completed the acquisition of 100% equity of Jiangsu Oilfield Construction Company in December 2018, classified as a business combination under common control[23] - The company signed new contracts worth RMB 627.7 billion in 2018, a year-on-year increase of 18.0%[42] - The company completed contracts worth RMB 584.2 billion, reflecting a 29.2% increase year-on-year[42] - The company reduced costs by RMB 3.2 billion in 2018, improving project gross profit margins by 7.3%[43] - The company expanded its international presence, signing contracts worth USD 2.7 billion with Saudi Aramco and USD 10.6 billion with Kuwait Oil Company[42] - The company operates in over 37 countries and regions, executing 370 projects, enhancing its global market footprint[33] Research and Development - The company’s R&D expenditure increased by 79.4% to RMB 928,586 thousand from RMB 517,599 thousand in the previous year[63] - Research and development expenses totaled RMB 947,691 thousand, an increase of 83.1% compared to the previous year, with R&D expenses accounting for 1.6% of total revenue[74] - The number of R&D personnel increased to 3,002, representing 4.0% of the total workforce[74] Environmental and Safety Management - The company implemented clean production initiatives, focusing on energy conservation and pollution reduction through advanced technologies[171] - The company established an environmental emergency management system and conducted regular training and drills for emergency response[172] - The company has implemented a strict HSE management system to mitigate environmental and safety risks associated with its operations[108] Corporate Governance - The financial report for 2018 has been audited and received standard unqualified opinions from the auditing firms[5] - The company confirmed that there were no non-operating fund occupations by controlling shareholders or other related parties during the reporting period[138] - The company has a cash dividend policy that mandates a minimum of 40% of the net profit attributable to shareholders of the parent company for the year, but no cash dividends were declared for 2018 due to negative retained earnings[135] - The company will strictly adhere to its dividend policy and will seek to distribute dividends once it has the capacity to do so[135] - The supervisory board approved the 2017 financial report, which reflects the company's financial status and operational results[176] - The company reported no violations of laws or regulations by its directors and senior management during the reporting period[180] Related Party Transactions - The company engaged in significant related party transactions, including purchasing raw materials and equipment from Sinopec Group totaling RMB 8,097.321 million, which accounted for 52.9% of similar transactions[155] - The company provided engineering services to Sinopec Group amounting to RMB 36,501.508 million, representing 62.0% of similar transactions[155] - The total value of related party transactions did not exceed the annual limits set by independent shareholders, ensuring compliance with regulations[156] - The company’s independent non-executive directors have reviewed and approved the ongoing related party transactions, confirming their fairness and alignment with shareholder interests[156] Future Outlook - The company plans to focus on future strategies and development plans, although these contain uncertainties and do not constitute a commitment to investors[5] - The company plans to sign new contracts worth RMB 61.7 billion in 2019, with RMB 34.9 billion from internal markets and RMB 15 billion from overseas markets[93] - The company aims to enhance its market share and improve labor productivity while reducing operating costs per hundred yuan of revenue[46] - The company plans to reduce costs by RMB 600 million in 2019[102] - The capital expenditure for 2019 is planned at RMB 2.5 billion, primarily for equipment upgrades and safety projects[103]