2023-03-28 16:00Financial Performance - The net profit attributable to shareholders for 2022 was RMB 463,814 thousand according to Chinese accounting standards, and RMB 571,615 thousand according to International Financial Reporting Standards[2]. - The company's operating revenue for 2022 was RMB 73,772,688 thousand, representing a 6.1% increase from RMB 69,533,053 thousand in 2021[12]. - The net profit attributable to shareholders for 2022 was RMB 463,814 thousand, a significant increase of 158.0% compared to RMB 179,791 thousand in 2021[12]. - The company's total assets at the end of 2022 reached RMB 71,200,517 thousand, an 11.2% increase from RMB 64,052,447 thousand at the end of 2021[12]. - The basic earnings per share for 2022 was RMB 0.024, up 166.7% from RMB 0.009 in 2021[13]. - The net cash flow from operating activities for 2022 was RMB 4,197,869 thousand, a decrease of 32.4% from RMB 6,206,909 thousand in 2021[12]. - The company's net assets attributable to shareholders increased by 8.2% to RMB 7,427,319 thousand at the end of 2022 from RMB 6,861,517 thousand at the end of 2021[12]. - The weighted average return on equity for 2022 was 6.54%, an increase of 3.90 percentage points from 2.64% in 2021[13]. - The company reported a total liability of RMB 63,773,198 thousand in 2022, compared to RMB 57,190,930 thousand in 2021[19]. - The net profit after deducting non-recurring gains and losses for 2022 was RMB 377,363 thousand, compared to a loss of RMB 100,263 thousand in 2021[12]. Dividend and Profit Distribution - The company's undistributed profits at the end of 2022 amounted to RMB 1,946,364 thousand, leading to a recommendation of no cash dividend distribution for the year[2]. - The board of directors has approved the profit distribution plan, which is subject to shareholder meeting approval[2]. - 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 cash dividends, but no dividends will be distributed for 2022 due to negative retained earnings[130]. - The current cash dividend policy will be strictly followed once the company is able to distribute dividends, ensuring the protection of minority shareholders' rights[130]. Corporate Governance - The annual report has been audited by Lixin Certified Public Accountants and received standard unqualified opinions[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 report indicates that there are no instances of more than half of the directors being unable to ensure the authenticity, accuracy, and completeness of the annual report[2]. - The company is committed to maintaining the integrity and accuracy of the financial report as stated by the management team[2]. - The company has maintained compliance with corporate governance regulations and improved its governance structure, including the establishment of a nomination committee[97]. - The company has not faced any penalties from securities regulatory agencies in the past three years[117]. - The company has not reported any insider trading incidents during the reporting period, indicating effective management of insider information[97]. - The company has established a remuneration decision-making process based on performance and responsibilities of directors and senior management[114]. - The board consists of nine members, with independent non-executive directors making up one-third of the board[144]. - The company has implemented a risk management and internal control system to mitigate operational, financial, and compliance risks, with annual assessments conducted[153]. Market and Business Development - The total new contract value signed in 2022 reached RMB 81 billion, a 14.2% increase year-on-year, with significant contributions from various markets: RMB 50.4 billion from Sinopec Group, RMB 15 billion from domestic external markets, and RMB 15.6 billion from overseas markets[26]. - For 2023, the company plans to sign new contracts worth over RMB 78 billion, focusing on high-quality market segments and optimizing resource allocation[23]. - The company aims to enhance its research and development efforts, particularly in core technologies, to support advancements in deep earth and deep sea engineering[23]. - The company is actively pursuing low-carbon technology development and has established a new energy research center to explore emerging markets such as CCUS and geothermal energy[22]. - The company aims to become a world-class technology-leading oil service company, focusing on professional, market-oriented, international, high-end, and specialized development strategies[39]. Research and Development - The company authorized 787 patents in 2022 and set 579 new construction records, showcasing its commitment to technological innovation and efficiency[22]. - The company’s R&D expenditure for 2022 was RMB 1,838,968 thousand, representing a 10.1% increase from RMB 1,669,706 thousand in the previous year[51]. - The company is investing $200 million in R&D for new technologies aimed at enhancing operational efficiency[109]. - The company will increase R&D investment and focus on high-temperature and high-angle rotary steering technology, aiming for domestic production of high-end equipment[76]. Environmental and Social Responsibility - The company has established a comprehensive environmental impact assessment system, with no environmental pollution incidents reported in 2022[164]. - The company invested RMB 115,930.7 million in environmental protection during the reporting period[168]. - The comprehensive energy consumption per RMB 10,000 of industrial output decreased by 14.1% year-on-year, reaching 0.201 tons of standard coal[169]. - The company reduced carbon emissions by 1.1 million tons through various measures, including the use of electric fracturing equipment[171]. - A total of 1,090 wells were drilled using electric drilling rigs, achieving a total footage of 4.771 million meters[172]. - The company donated RMB 176.41 million to public welfare projects, benefiting approximately 20,000 people[174]. Risk Management - The company faced significant market competition risks due to geopolitical conflicts and an oversupply in the oilfield services market[80]. - The company is encouraged to monitor foreign exchange risks and utilize financial derivatives to mitigate currency fluctuation risks[124]. - The company has established a risk management system to ensure effective internal controls and compliance[157]. Related Party Transactions - The company engaged in significant related party transactions, with procurement of raw materials and equipment from Sinopec Group amounting to RMB 12,181.32 million, representing 32.3% of similar transactions[190]. - The company provided engineering services to Sinopec Group totaling RMB 46,775.85 million, accounting for 64.6% of similar transactions[190]. - The company has maintained a stable relationship with its controlling shareholder, Sinopec Group, ensuring a steady supply of materials and services[192]. - The company’s independent non-executive directors have reviewed related party transactions and confirmed their compliance with fair market practices[193]. Employee and Management Structure - The total number of employees in the company is 66,792, with 126 in the parent company and 66,666 in major subsidiaries[125]. - The employee composition includes 36,293 production personnel, 20,589 technical personnel, and 3,406 research personnel[126]. - The company has implemented a differentiated compensation incentive plan based on employee categories and job levels, linking compensation to performance evaluations[127]. - The company emphasizes employee training with a structured management system to enhance job performance and personal growth[128]. - The company’s management team includes experienced professionals with backgrounds in engineering and finance, contributing to strategic decision-making[103]. Future Outlook - The company provided a future outlook, projecting a revenue growth of 10% for the next quarter, aiming for $5.7 billion[107]. - New product launches are expected to contribute an additional $300 million in revenue over the next fiscal year[108]. - Market expansion plans include entering three new international markets by Q3 2024, targeting a 5% increase in market share[106].