ZPEC(SH:603619)2022-08-17 16:00Financial Performance - In the first half of 2022, the company achieved a net profit attributable to shareholders of 212,420,642.19 CNY[6]. - The company's operating revenue for the first half of 2022 reached ¥1,395,652,670.33, representing an increase of 85.72% compared to the same period last year[24]. - The net profit attributable to shareholders was ¥212,420,642.19, a significant increase of 778.01% year-on-year[24]. - The net cash flow from operating activities was ¥559,731,091.95, reflecting a growth of 154.03% compared to the previous year[24]. - The basic earnings per share for the first half of 2022 was ¥0.53, an increase of 783.33% compared to the same period last year[26]. - The company's net profit after deducting non-recurring gains and losses of ¥210,881,487.82, which is an increase of 879.56% year-on-year[24]. - The total comprehensive income for the first half of 2022 was ¥212,389,775.57, compared to ¥15,859,042.74 in the previous year, an increase of 1,336.5%[175]. - The company reported a total cash and cash equivalents balance of CNY 131,805,762.25 at the end of the period, up from CNY 37,496,286.03 at the beginning of the year[193]. Dividend Distribution - The company plans to distribute a cash dividend of 1.00 CNY per 10 shares (including tax) to all shareholders[6]. - As of June 30, 2022, the cumulative distributable profit for the parent company was 330,725,396.08 CNY[6]. - The company achieved a net profit attributable to shareholders of the parent company of CNY 212,420,642.19 for the first half of 2022[91]. Risks and Challenges - The report outlines potential risks faced by the company, which are detailed in the management discussion section[8]. - The oil industry is characterized by cyclical risks, heavily influenced by macroeconomic fluctuations and oil prices[80]. - Financial risks include exchange rate fluctuations due to overseas projects being settled in local currencies[83]. - The company's drilling operations are primarily conducted in the Middle East, where geopolitical instability poses risks to business operations[84]. - The company acknowledges the potential for operational disruptions due to accidents in exploration and oilfield services[81]. Operational Efficiency and Growth - The company has formed an integrated core competitiveness from exploration to production, leveraging its resource, technology, and cost advantages[35]. - The company is focusing on unconventional oil and gas resource development to boost domestic reserves and production[35]. - The company is actively pursuing mergers and acquisitions to control risks and optimize its upstream exploration and development layout[39]. - The company has implemented an integrated operation model that significantly reduces oil and gas extraction costs through collaboration among its business modules[51]. - The average daily production in the second quarter of 2022 was 1,250.4 tons, reflecting the company's focus on efficiency and production optimization[49]. Environmental and Social Responsibility - The company aims for zero discharge of wastewater, with treated drilling wastewater being reused for oil platform operations[102]. - Environmental protection measures include using electric power instead of diesel engines for drilling operations to reduce CO2 emissions[103]. - The company has actively engaged in poverty alleviation and rural revitalization efforts, including donations for community service facilities and agricultural infrastructure in Xinjiang, ensuring the sustainability of poverty alleviation outcomes[109]. - The company plans to enhance its support in Xinjiang through industry, education, employment, and livelihood assistance, integrating social responsibility into its business strategy[110]. Corporate Governance and Compliance - The report does not indicate any violations of decision-making procedures for external guarantees[8]. - The company has not faced any issues with a majority of directors being unable to ensure the accuracy and completeness of the report[8]. - The company's board of directors and management have confirmed the authenticity and completeness of the report[4]. - The company's stock option incentive plan was approved by independent directors, ensuring compliance with governance standards[96]. Investment and Acquisitions - The company plans to acquire 87% of the equity in Toghi Trading F.Z.C to enhance its long-term exploration and development strategy[69]. - The company is focused on increasing its oil and gas resource reserves through strategic acquisitions, which will enhance its integrated business advantages[70]. - The company plans to acquire 87.5% equity in a Kazakhstan offshore block for USD 16.5 million, with subsequent adjustments based on professional evaluations[128]. Research and Development - Research and development expenses rose by 71.67% to ¥38,815,702.27, reflecting increased investment across various business segments[55]. - The company has a total of 354 patents, including invention patents and utility model patents, enhancing its technological advantage in the drilling industry[45]. - The company is actively developing new drilling equipment, including intelligent drilling rigs and automated drilling rigs, to improve drilling efficiency and reduce costs[50].