2021-03-24 16:00Financial Performance - The net profit attributable to shareholders for 2020 was RMB 78,978 thousand according to Chinese accounting standards, while it was RMB -35,737 thousand under International Financial Reporting Standards[2]. - The company's undistributed profits at the end of 2020 were RMB -1,516,087 thousand, leading to a recommendation of no cash dividend distribution for the year[2]. - The company's operating revenue for 2020 was RMB 68,073,394 thousand, a decrease of 2.6% compared to RMB 69,870,147 thousand in 2019[13]. - The net profit attributable to shareholders for 2020 was RMB 78,978 thousand, down 91.4% from RMB 914,244 thousand in 2019[13]. - The basic earnings per share for 2020 was RMB 0.004, a decline of 91.7% compared to RMB 0.048 in 2019[14]. - The weighted average return on equity for 2020 was 1.16%, a decrease of 13.5 percentage points from 14.66% in 2019[14]. - The net cash flow from operating activities for 2020 was RMB -266,915 thousand, compared to RMB 4,471,820 thousand in 2019[13]. - The total assets at the end of 2020 were RMB 61,091,195 thousand, a decrease of 1.6% from RMB 62,069,378 thousand in 2019[14]. - The total liabilities at the end of 2020 were RMB 54,368,329 thousand, down from RMB 55,305,506 thousand in 2019[19]. - The company’s net assets attributable to shareholders at the end of 2020 were RMB 6,722,866 thousand, a slight decrease from RMB 6,763,872 thousand in 2019[19]. Corporate Governance - The annual report has been audited by Deloitte Touche Tohmatsu Certified Public Accountants, which issued a standard unqualified audit opinion[2]. - The board of directors consists of 7 members, with 5 present at the meeting where the annual report was approved[2]. - The company emphasizes that forward-looking statements regarding future plans and strategies involve uncertainties and do not constitute substantive commitments to investors[2]. - The company has not violated any decision-making procedures in providing guarantees to external parties[2]. - The company has established a long-term commitment to prioritize business opportunities that may compete directly or indirectly with its main operations[99]. - The company has adopted the new accounting policy effective January 1, 2020, without significant impact on financial status or results[101]. - The company has not made any significant changes in accounting estimates during the year[101]. - The company has conducted four meetings of the supervisory board in 2020, approving 14 proposals, including the annual financial report and related party transactions[126]. - The independent directors did not raise any objections to the board's proposals during the reporting period, reflecting a consensus on governance matters[187]. - The company has maintained a stable leadership team with no significant changes in executive positions during the reporting period[155]. Operational Highlights - The company signed new contracts totaling RMB 69.8 billion in 2020, an increase of RMB 0.3 billion year-on-year[25]. - The company achieved a revenue of RMB 21,645,475 thousand in Q4 2020, with a net loss of RMB -152,725 thousand[17]. - The company achieved a contract amount of RMB 156 billion in overseas markets, despite challenges posed by the pandemic[25]. - The company has a total of 674 land drilling rigs and 14 offshore drilling platforms, enhancing its service capabilities across the oilfield service industry[23]. - The company established two new technology centers and added 505 authorized patents in the reporting period[25]. - The company plans to sign new contracts worth over RMB 70 billion in 2021, focusing on integrated market expansion[28]. - The company aims to enhance engineering technology service capabilities and optimize both domestic and overseas markets[28]. - The company is committed to strengthening innovation and developing key technologies to improve operational efficiency[28]. Related Party Transactions - The company engaged in significant related party transactions with China Petroleum & Chemical Corporation (Sinopec), including purchasing raw materials and equipment amounting to RMB 10,566,242 thousand, which accounted for 26.8% of similar transaction amounts[112]. - Engineering services provided to Sinopec totaled RMB 43,255,129 thousand, representing 64.2% of similar transaction amounts, highlighting the importance of these services to the company's revenue[112]. - The company reported technology research and development income of RMB 79,300 thousand from Sinopec subsidiaries, which constituted 95.8% of the total R&D income[112]. - The company borrowed RMB 52,974,382 thousand from Sinopec subsidiaries, which accounted for 98.8% of the total borrowings, indicating a strong reliance on Sinopec for financial resources[112]. - The total amount of related party transactions during the reporting period was in compliance with the Hong Kong Listing Rules, ensuring transparency and fairness in dealings[115]. Environmental and Social Responsibility - The company has established an environmental emergency management system and regularly conducts emergency drills[124]. - In 2020, the company disposed of 1,347,500 cubic meters of drilling wastewater and 597,000 cubic meters of domestic sewage in compliance with regulations[124]. - The company promoted new technologies and devices to reduce energy consumption and pollutant emissions, including gas engines and energy-saving variable frequency motors[124]. - The company has received recognition for its green initiatives, with three subsidiaries awarded the title of "Green Enterprise" by China Petroleum & Chemical Corporation[124]. Employee and Management Information - The company employs a total of 71,736 staff, including 39,282 production personnel and 22,113 technical personnel[174]. - The company has established a differentiated compensation incentive plan based on basic salary, performance bonuses, and long-term incentives[175]. - The company emphasizes employee training, focusing on enhancing job performance capabilities and building a talent pipeline[177]. - The company has a structured training management system that includes various training programs for management, technical, and operational staff[177]. - The company has a total of 3,656 employees with a master's degree or higher[174]. Future Outlook - The company anticipates steady growth in domestic oil and gas demand, driven by a projected GDP growth of over 6% in China[65]. - The company plans to invest RMB 3.5 billion in capital expenditures in 2021, focusing on exploration and development equipment[75]. - The company aims to maintain its position as the largest international geophysical contractor in Algeria while expanding into key overseas markets such as Saudi Arabia and Africa[67]. - The company plans to enhance its project management system to improve resource allocation and operational efficiency[74].