2022-03-29 16:00Financial Performance - The net profit attributable to shareholders for 2021 was RMB 179,791 thousand according to Chinese accounting standards, and RMB 140,450 thousand according to International Financial Reporting Standards[2]. - The company's retained earnings at the end of 2021 were negative RMB 1,529,605 thousand, leading to a recommendation of no cash dividend distribution for the year[2]. - The company's operating revenue for 2021 was RMB 69,533,053 thousand, representing a 2.1% increase from RMB 68,073,394 thousand in 2020[12]. - The net profit attributable to shareholders for 2021 was RMB 179,791 thousand, a significant increase of 127.6% compared to RMB 78,978 thousand in 2020[12]. - The basic earnings per share for 2021 was RMB 0.009, up 125.0% from RMB 0.004 in 2020[13]. - The net cash flow from operating activities for 2021 was RMB 6,206,909 thousand, an increase of 38.8% compared to RMB 4,471,820 thousand in 2020[12]. - The total assets at the end of 2021 were RMB 64,052,447 thousand, reflecting a 4.8% increase from RMB 61,091,195 thousand at the end of 2020[19]. - The total liabilities at the end of 2021 were RMB 57,190,930 thousand, compared to RMB 54,368,329 thousand at the end of 2020[19]. - The company's net assets attributable to shareholders at the end of 2021 were RMB 6,861,517 thousand, a 2.1% increase from RMB 6,722,866 thousand at the end of 2020[14]. - The weighted average return on equity for 2021 was 2.64%, an increase of 1.48 percentage points from 1.16% in 2020[13]. Audit and Compliance - The annual report has been audited by Lixin CPA and Hong Kong Lixin Dehao CPA, both issuing standard unqualified audit opinions[1]. - The company is committed to ensuring the authenticity, accuracy, and completeness of the annual report[1]. - The company operates under the supervision of the China Securities Regulatory Commission[4]. - There are no significant risks that need to be highlighted in the report[2]. - The company has proposed no capital reserve fund conversion to share capital due to negative retained earnings[2]. - The board of directors has approved the annual report, which will be submitted for shareholder meeting review[2]. Strategic Initiatives - The company signed new contracts worth RMB 70.9 billion in 2021, an increase of RMB 1.1 billion compared to the previous year[22]. - The company plans to sign new contracts worth RMB 72 billion in 2022, focusing on key markets such as Sinopec and CNOOC[27]. - The company aims to enhance its technological capabilities by overcoming 17 key core technologies in 2022[27]. - The company is committed to expanding its presence in the new energy market, including CCUS and geothermal projects[27]. - The company is focused on internal reforms to improve project management and operational efficiency[28]. Research and Development - The company applied for 897 patents and was granted 542, setting a new record for the year[23]. - Research and development expenditure increased by 21.9% to RMB 1,669,706 thousand, representing 2.4% of total revenue, focusing on key technologies such as the I-type rotary steering system and high-temperature imaging logging instruments[55][56]. - The total number of R&D personnel is 3,246, representing 4.7% of the company's total workforce, with a significant portion holding advanced degrees[57]. Environmental and Social Responsibility - The company emphasizes energy conservation and green low-carbon development, adhering to relevant environmental laws and international conventions[199]. - The company has established a comprehensive environmental impact assessment system to enhance environmental control[195]. - In 2021, the company was not listed among the severely polluting enterprises by Chinese environmental authorities and did not face major environmental or social safety issues[195]. - The company conducted 7 board meetings during the reporting period, focusing on financial reports and audit plans[141]. Management and Governance - The company has a diverse board of directors with backgrounds in engineering, finance, and management, enhancing its strategic capabilities[112][113][114][115]. - The company has maintained a stable executive team with no significant changes in roles or responsibilities reported[110]. - The board includes non-executive directors with significant industry experience, contributing to governance and oversight[113][114][115]. - The company has established a nomination committee to review the board's structure and diversity, with a focus on skills and experience necessary for effective governance[170]. Financial Management - The company has a cash dividend policy that mandates a minimum of 40% of the net profit attributable to shareholders be distributed as cash dividends, but no dividends will be distributed for 2021 due to negative retained earnings[144]. - The company is advised to actively plan for the challenges and opportunities presented by carbon neutrality and energy transition, which could impact the oil service sector[142]. - The company has implemented a differentiated compensation system that links employee remuneration to performance assessments, aiming to motivate staff effectively[143]. Risk Management - The company has established and continuously improved risk management and internal control systems to mitigate operational, financial, and compliance risks[179]. - The audit committee reviewed the company's financial reports for the fiscal year 2020 and the first three quarters of 2021, holding five meetings during the reporting period[181]. - The company has adopted the COSO framework for internal control and risk management, conducting annual risk assessments to identify significant risks[180].