2022-08-25 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 10.5 billion for the first half of 2022, representing a year-on-year growth of 15%[7]. - Operating revenue for the reporting period was RMB 33,148,652 thousand, an increase of 5.0% compared to RMB 31,570,061 thousand in the same period last year[11]. - Net profit attributable to shareholders was RMB 200,268 thousand, a decrease of 45.7% from RMB 368,558 thousand year-on-year[11]. - The company's consolidated operating revenue for the first half of 2022 was RMB 33,148,652 thousand, a 5.0% increase from RMB 31,570,061 thousand in the same period last year[18]. - The total new contract amount signed reached RMB 52.9 billion, a year-on-year increase of 20.8%, with overseas market contracts growing by 33.3% to RMB 11.82 billion[19]. - The drilling services segment generated RMB 16,635,798 thousand in revenue, a 5.9% increase, with drilling footage up 3.2% to 4.87 million meters[21]. - The engineering construction services segment reported revenue of RMB 8,326,149 thousand, a 5.8% increase, with new contract amounts growing by 60.2% to RMB 231.6 billion[24]. - International business revenue increased by 29.7% to RMB 5,650,053 thousand, accounting for 17.3% of total operating revenue[25]. - The company reported a net profit of RMB 201.124 million, indicating a focus on improving profitability[36]. - The company reported a total revenue of RMB 33,148.652 million and an operating profit of RMB 364.174 million for the first half of 2022[37]. Cash Flow and Liquidity - The net cash flow from operating activities was -RMB 537,926 thousand, a decline of 249.9% compared to RMB 358,861 thousand in the previous year[11]. - The company's cash and cash equivalents decreased by 22.6% to RMB 1,940,644 thousand from RMB 2,508,224 thousand at the end of the previous period[32]. - The net cash outflow from operating activities was RMB 537,926 thousand, an increase of RMB 896,787 thousand compared to the same period in 2021[59]. - The net cash outflow from investing activities in the first half of 2022 was RMB 492,591 thousand, an increase of RMB 101,959 thousand year-on-year, primarily due to increased equipment purchase expenditures[59]. - The net cash inflow from financing activities in the first half of 2022 was RMB 305,843 thousand, an increase of RMB 296,576 thousand compared to the previous year, mainly due to the growth in loan scale[59]. Strategic Initiatives - The company provided a positive outlook for the second half of 2022, projecting a revenue growth of 10% to 15%[7]. - New product development includes the launch of a carbon capture technology, which is expected to contribute an additional RMB 1 billion in revenue by the end of 2023[7]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[7]. - A strategic acquisition of a local competitor was completed, which is anticipated to enhance operational efficiency and increase market share by 5%[7]. - The company has initiated a new strategy focusing on digital transformation, aiming to reduce operational costs by 10% over the next two years[7]. - The company plans to sign new contracts worth RMB 211 billion in the second half of 2022, with RMB 143 billion from Sinopec Group and RMB 36 billion from domestic external markets[40]. Research and Development - R&D investment reached RMB 13.9 billion, supporting the development of key technologies for deep and shale oil and gas drilling[27]. - Research and development expenses surged by 91.1% to RMB 666,919 thousand, driven by accelerated efforts in key technology advancements[30]. - The company is focusing on project management system construction to enhance project profitability and resource allocation efficiency[28]. Environmental and Social Responsibility - The company generated 96.9 thousand tons of water-based drilling waste and rock cuttings, 5.71 million cubic meters of hazardous waste, and 406 thousand cubic meters of drilling wastewater as of June 30, 2022[71]. - The company replaced 150 thousand tons of diesel through the application of electric drilling rigs, achieving a drilling footage of 2.059 million meters, which accounted for 51% of the total domestic drilling footage of 4.0372 million meters in the first half of 2022[72]. - The company reduced comprehensive energy consumption per ten thousand yuan of industrial output value by 12.78% to 0.195 tons of standard coal as of June 30, 2022[71]. - The company has established a comprehensive environmental emergency management system and regularly conducts emergency response training and drills[72]. - The company has implemented strict compliance with environmental protection laws and regulations, ensuring that emissions meet local standards[71]. Risks and Challenges - The company reported no significant risks that could impact its operations or financial performance in the near term[2]. - The company faces various risks, including market competition, health and safety, and foreign operation risks, which could impact its business performance[51][52][53][54]. - The company anticipates that the oil service industry will continue to recover, despite ongoing geopolitical risks and uncertainties in oil supply and demand[39]. Shareholder Information - The company has a total of 133,672 shareholders as of June 30, 2022, with 133,336 being A-share shareholders[93]. - The largest shareholder, China Petroleum & Chemical Corporation, holds 56.51% of the shares, totaling 10,727,896,364 shares[94]. - China Petroleum Group holds a total of 13,323,683,351 shares, accounting for 70.18% of the company's total shares, with 10,727,896,364 A-shares and 2,595,786,987 H-shares[95]. - The company has not reported any changes in the controlling shareholder or actual controller during the reporting period[103]. Accounting and Financial Policies - The company’s financial statements are prepared based on the going concern assumption, supported by long-term relationships with financial institutions[124]. - The company’s accounting policies comply with the accounting standards issued by the Ministry of Finance[126]. - The company recognizes revenue when control of goods or services is transferred to the customer, indicating the ability to dominate the use and obtain almost all economic benefits[191]. - The company assesses the recoverability of deferred tax assets based on the likelihood of future taxable income[199].