ZPEC(SH:603619)2021-04-27 16:00Financial Performance - The company reported a loss for the year 2020, leading to a decision not to distribute profits or increase capital reserves[8]. - The company's operating revenue for 2020 was approximately CNY 1.58 billion, a decrease of 35.66% compared to CNY 2.46 billion in 2019[29]. - The net profit attributable to shareholders of the listed company in 2020 was a loss of approximately CNY 486 million, compared to a profit of CNY 17 million in 2019, representing a decrease of 2,922.02%[29]. - The net cash flow from operating activities in 2020 was approximately CNY 218 million, down 26.58% from CNY 297 million in 2019[29]. - The total assets at the end of 2020 were approximately CNY 5.04 billion, a decrease of 7.01% from CNY 5.43 billion at the end of 2019[29]. - The basic earnings per share for 2020 was -CNY 1.22, compared to CNY 0.04 in 2019, reflecting a decrease of 3,150%[29]. - The weighted average return on net assets for 2020 was -22.85%, a decrease of 23.58 percentage points from 0.73% in 2019[29]. - The company reported a net profit of -48,716.45 million yuan, primarily due to the impact of the COVID-19 pandemic and falling oil prices, which led to project delays and contract terminations[84]. - The company experienced a significant loss of 22,990.45 million yuan due to project suspensions caused by the pandemic, with Iraq accounting for 19,349.94 million yuan of this loss[85]. - The total operating revenue for the company was 1,581,366,136.64 yuan, reflecting a decline of 35.55% compared to the previous year[98]. Audit and Governance - The company received a standard unqualified audit report from Zhonghui Certified Public Accountants[6]. - The board of directors confirmed that all members attended the board meeting, ensuring accountability for the report's accuracy[5]. - The company has not provided guarantees in violation of decision-making procedures[10]. - The company is committed to ensuring the financial report's authenticity and completeness[7]. - The board's profit distribution proposal is pending approval from the shareholders' meeting[8]. - The company has not reported any instances of funds being occupied during the reporting period[185]. - The company has not received any non-standard audit opinions from its accounting firm[185]. - The company appointed Zhonghui Certified Public Accountants as the new auditor for the 2020 financial year, replacing Lixin Certified Public Accountants, with an audit fee of 500,000[193]. Risk Management - The company faces various risks as outlined in the report, which investors should be aware of[10]. - The company emphasizes the importance of risk awareness in future development strategies[9]. - The company faces risks related to industry cyclicality, including fluctuations in oil prices and geopolitical uncertainties[163]. Market and Operational Strategy - The company has a strong market presence with clients including major international oil companies such as Shell, BP, and Saudi Aramco, enhancing its competitive edge in the oil service sector[51]. - The company’s exploration and development strategy includes active participation in oil and gas projects along the Belt and Road Initiative, focusing on both domestic and international markets[42]. - The company aims to enhance its development efficiency through strategic acquisitions and partnerships in overseas oil fields, ensuring risk control and reasonable layout in upstream exploration[42]. - The company plans to navigate the challenging market conditions by implementing strategic pricing adjustments and focusing on securing key projects[94]. - The company is focusing on the development of unconventional gas resources, including shale gas and coalbed methane, to enhance domestic gas supply[139]. - The company is exploring oil and gas terminal sales, aiming to establish a comprehensive business layout integrating exploration, terminal sales, engineering services, and equipment manufacturing[146]. Production and Development - The company achieved a significant increase in oil production, with an average daily output rising from 16.17 tons in 2019 to 125.42 tons in 2020, and cumulative production reaching 45,778.5 tons for the year[60]. - The average daily production in March 2021 reached 287 tons, reflecting a strong recovery trajectory in oil output[60]. - The company plans to complete 24 reservoir evaluation wells and 52 exploratory wells in 2021, aiming for an annual oil production of 175,000 tons[156]. - The company achieved a quarterly oil production of 21,022.32 tons from the Wensu project, exceeding its quarterly target by 0.11%[156]. Research and Development - Total R&D investment amounted to 105.25 million yuan, accounting for 6.64% of operating revenue, with a decrease of 12.09% compared to the previous year[110][111]. - The total capitalized R&D investment was 34.72 million yuan, representing 32.99% of total R&D investment[110]. - The company is committed to advancing equipment manufacturing towards high-end and intelligent development, enhancing product quality and service levels[145]. - The digital transformation in oil and gas exploration and development is accelerating, with a focus on automation and intelligent solutions to reduce costs and improve efficiency[145]. Shareholder Relations - The company reported a net profit attributable to ordinary shareholders of -486,091,162.67 RMB for the year 2020, with a profit distribution ratio of 0%[175]. - The company has established a three-year shareholder dividend return plan for 2018-2020, which was approved by the board and aims to protect the rights of minority investors[173]. - The company strictly adheres to its profit distribution policy and emphasizes transparency in cash dividends[174]. - There were no cash dividends or stock dividends proposed for the years 2019 and 2020[175]. Legal and Compliance - The company reported no significant litigation or arbitration matters during the year[197]. - The company disclosed a related party transaction amounting to 10.3661 million during the reporting period[200].