2020-03-24 16:00Financial Performance - The net profit attributable to shareholders for 2019 was RMB 914,244 thousand according to Chinese accounting standards, and RMB 986,873 thousand according to International Financial Reporting Standards[5]. - The company's operating revenue for 2019 reached RMB 69,870,147 thousand, an increase of 19.6% compared to RMB 58,409,078 thousand in 2018[24]. - The net profit attributable to shareholders for 2019 was RMB 914,244 thousand, a significant increase of 543.6% from RMB 142,056 thousand in 2018[24]. - Basic earnings per share for 2019 were RMB 0.048, up 500% from RMB 0.008 in 2018[26]. - The weighted average return on equity increased to 14.66% in 2019, up 11.8 percentage points from 2.86% in 2018[26]. - The company achieved a significant reduction in losses from previous years, with a total profit of RMB 1,355,768 thousand in 2019 compared to a loss of RMB -10,350,586 thousand in 2017[24]. - The company reported a total of RMB 410,540 thousand in non-recurring gains and losses for 2019, compared to RMB 104,105 thousand in 2018[29]. - The net cash flow from operating activities improved to RMB 1,377,053 thousand in 2019, compared to a negative cash flow of RMB -2,939,789 thousand in 2018[24]. - The company's net assets attributable to shareholders increased by 17.1% to RMB 6,763,872 thousand at the end of 2019 from RMB 5,778,410 thousand at the end of 2018[24]. - The total assets as of December 31, 2019, were RMB 62.07 billion, reflecting a 1.9% increase from the previous year[38]. Dividends and Retained Earnings - The company reported a negative retained earnings of RMB -1,496,212 thousand at the end of 2019, leading to a recommendation of no cash dividend distribution for the year[5]. - The company did not declare a cash dividend for 2019 due to negative retained earnings at year-end, but will adhere to its cash dividend policy once capable[135]. - The net profit attributable to shareholders was RMB 986.87 million, representing a significant increase of 543.6% compared to the previous year[45]. Audit and Compliance - The annual report has been audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP and Deloitte Touche Tohmatsu CPA Ltd., both issuing standard unqualified audit opinions[5]. - There are no violations of decision-making procedures for providing guarantees to external parties[7]. - The company has no capitalized interest for the year ended December 31, 2019[132]. - The company’s financial reports for 2019 were deemed fair and compliant with regulatory requirements, reflecting its financial status and cash flow accurately[185]. Corporate Governance - The board of directors consists of 8 members, with independent director Pan Ying being absent due to illness[4]. - The company actively participated in major decision-making processes and strengthened communication with management[189]. - The company’s board of supervisors held 8 meetings and 2 shareholder meetings in 2019, fulfilling its supervisory responsibilities[189]. Market and Operational Strategy - The company’s future plans and development strategies are subject to uncertainties and do not constitute substantive commitments to investors[5]. - The company aims to reduce the cost per hundred yuan of revenue while enhancing project management and cost control[50]. - The company plans to focus on sustainable development and internal reforms to improve profitability and core competitiveness[50]. - The company will continue to optimize resource allocation and improve service quality to achieve sustainable development[93]. Contracts and Revenue Growth - The company signed new contracts worth RMB 69.5 billion in 2019, a year-on-year growth of 10.7%[46]. - In 2019, the company achieved a consolidated revenue of RMB 69.87 billion, a year-on-year increase of 19.6%[45]. - The drilling services segment achieved operating revenue of RMB 36,487,700 thousand in 2019, up 22.1% from RMB 29,883,121 thousand in the previous year[58]. - The engineering construction services segment reported operating revenue of RMB 16,381,730 thousand, a 24.7% increase compared to RMB 13,132,857 thousand in 2018[61]. Research and Development - Research and development expenses increased by 28.6% to RMB 1,194,198 thousand in 2019, up from RMB 928,586 thousand in 2018[68]. - The company successfully applied a new generation of network imaging logging systems and achieved breakthroughs in high-temperature MWD instruments[64]. - The company will enhance its R&D capabilities, focusing on deep oil and gas, shale gas, and key technologies to support exploration and development[101]. Environmental and Social Responsibility - The company disposed of 52.87 million cubic meters of drilling wastewater and 33.48 million cubic meters of domestic sewage in compliance with regulations in 2019[177]. - The company has established an environmental emergency management system and conducts regular training and drills[178]. - The company has implemented advanced technologies to reduce energy consumption and pollutant emissions[177]. Related Party Transactions - The company engaged in significant related party transactions, including purchasing raw materials and equipment from Sinopec Group for RMB 10,973.226 million, accounting for 25.9% of similar transactions[162]. - The company provided engineering services to Sinopec Group for RMB 39,874.446 million, representing 57.1% of similar transactions[162]. - The total amount of related party transactions does not exceed the annual limits set by independent shareholders[163]. Future Outlook - The company plans to sign new contracts worth RMB 68 billion in 2020, with RMB 39.6 billion from internal markets and RMB 15.4 billion from overseas markets[93]. - The company expects to maintain a strong market presence in the domestic oil service industry amid recovering demand[92]. - The international business segment aims to sign new contracts worth USD 2.2 billion in 2020, focusing on markets like Saudi Arabia, Kuwait, and Ecuador[100].