ZPEC(SH:603619)2022-04-21 16:00Financial Performance - The company achieved a consolidated net profit attributable to shareholders of ¥66,141,470.52 in 2021[5]. - The company's operating revenue for 2021 was approximately CNY 1.75 billion, an increase of 10.67% compared to CNY 1.58 billion in 2020[25]. - The net profit attributable to shareholders for 2021 was CNY 66.14 million, a significant recovery from a net loss of CNY 486.09 million in 2020, representing a 113.61% increase[25]. - The net cash flow from operating activities for 2021 was CNY 514.66 million, up 136.34% from CNY 217.76 million in 2020[25]. - The total assets at the end of 2021 were CNY 5.87 billion, reflecting a 16.43% increase from CNY 5.04 billion at the end of 2020[25]. - The company's net assets attributable to shareholders increased by 3.53% to CNY 1.97 billion at the end of 2021[25]. - Basic earnings per share for 2021 were CNY 0.17, a turnaround from a loss of CNY 1.22 per share in 2020, marking a 113.93% increase[25]. - The weighted average return on equity for 2021 was 3.42%, an increase of 26.27 percentage points from -22.85% in 2020[25]. - The company reported a quarterly revenue of CNY 606 million in Q4 2021, contributing to a total annual revenue growth[28]. - The company achieved operating revenue of 1,753,808,922.26 CNY in 2021, an increase of 10.67% compared to 2020[64]. Dividend Distribution - The proposed cash dividend distribution is ¥1 per 10 shares, totaling ¥40,000,010.00, subject to shareholder approval[5]. - As of the end of 2021, the company's undistributed profits amounted to ¥484,052,704.66[5]. - The company prioritizes cash dividends, committing to distribute no less than 20% of the annual distributable profits in cash dividends when conditions are met[187]. - The proposed cash dividend for 2021 is CNY 0.1 per share, totaling CNY 40,000,010.00, subject to shareholder approval[190]. - The company has established a cash dividend policy that mandates a minimum cash dividend ratio of 80% for mature companies without significant capital expenditure plans[189]. - The company did not distribute profits for the fiscal year 2020 due to a reported loss[190]. Operational Efficiency and Growth - The company has experienced a significant improvement in financial performance, indicating a positive outlook for future growth[25]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[25]. - The company has strengthened project management, focusing on progress, quality, and cost management, leading to improved operational efficiency[46]. - The company has initiated a digital transformation in management, establishing a data chain from basic data to decision-making, enhancing overall data management capabilities[47]. - The company is focusing on increasing oil and gas exploration and development efforts to ensure energy supply security amid rising foreign dependency[115]. - The company plans to gradually increase its exploration and development capacity, highlighting the emergence of scale effects and cost advantages[63]. - The company aims to enhance its core competitiveness in oil service engineering by expanding its integrated service offerings and maintaining a leading position in drilling operations[118]. Market Expansion and International Presence - The company signed new overseas engineering contracts worth approximately 2.006 billion RMB in 2021[42]. - The company successfully entered the Saudi drilling engineering market with contracts worth approximately 1.109 billion RMB, marking a historic breakthrough[42]. - The company has expanded its overseas drilling engineering market to multiple countries in the Middle East, North Africa, and Eurasia, including Saudi Arabia, Iraq, Egypt, and Pakistan, enhancing its international presence[58]. - The company is strategically seeking partnerships and joint ventures with domestic and international oil and gas companies to explore new development blocks[118]. - The drilling engineering segment targets Saudi Arabia for future overseas projects, with Libya, Russia, and Kuwait identified as supplementary and backup markets[126]. Risk Management and Compliance - The company has disclosed potential risks in its future development strategies and business plans[6]. - The company emphasizes the uncertainty of forward-looking statements and advises investors to be aware of investment risks[5]. - The company is focused on compliance with increasingly stringent safety and environmental regulations to mitigate risks associated with potential penalties[135]. - The company has established a robust governance structure, ensuring compliance with legal requirements and effective communication with shareholders[136]. - The company has identified and is addressing seven issues related to competition and fund management, with two remaining issues under review[200]. Research and Development - R&D investment totaled CNY 60.55 million, accounting for 3.45% of operating revenue, with no capitalized R&D expenditures[87]. - The number of R&D personnel is 167, representing 7.53% of the total workforce, with 11 holding master's degrees and 80 holding bachelor's degrees[88]. - The company is investing 20 million in R&D for new technologies aimed at enhancing operational efficiency[160]. - The company has accumulated 354 various patents, including invention and utility model patents, demonstrating strong innovation and R&D capabilities in the drilling sector[62]. Corporate Governance - The company has established several specialized committees, including an Audit Committee and a Strategic Committee, to enhance governance[169]. - The company has strengthened its information disclosure practices, ensuring timely and accurate reporting of its operational status and development strategies[142]. - The company’s governance structure has been continuously improved to protect shareholder interests and comply with relevant regulations[142]. - The company’s board of directors and senior management have not experienced significant changes in shareholding during the reporting period[153]. - The company has not faced any major discrepancies with the regulations set forth by the China Securities Regulatory Commission regarding corporate governance[142]. Employee Management and Training - The total number of employees in the parent company is 110, while the total number of employees in major subsidiaries is 2,109, resulting in a combined total of 2,219 employees[176]. - The company maintains a performance-based compensation mechanism, linking employee salaries to job responsibilities and performance evaluations[179]. - The training plan includes five major types of training: safety skills, operational skills, management, technical, and marketing, aimed at enhancing employee capabilities[182]. - The company has implemented an online learning system to enhance training levels and reach among employees in 2022[182]. Future Outlook - Future outlook includes a projected revenue growth of 10% for 2022, driven by new product launches and market expansion strategies[159]. - The company plans to complete the drilling of 120 development wells in 2022, aiming for an annual oil production of 385,000 tons, with a target production capacity of over 1,300 tons per day by year-end, and an overall annual production goal of 450,000 tons[122]. - The company is actively exploring new energy projects, including photovoltaic power generation and hydrogen energy infrastructure, to promote green and low-carbon development[121].