SOFE(SZ:000852)2019-04-03 16:00Financial Performance - The company's operating revenue for 2018 was ¥4,918,851,756.01, representing a 23.16% increase compared to ¥3,993,846,183.48 in 2017[35]. - The net profit attributable to shareholders for 2018 was ¥13,535,355.55, a 43.78% increase from ¥9,413,754.40 in 2017[35]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥100,020,200.42, a decrease of 33.15% compared to -¥75,121,148.54 in 2017[35]. - The net cash flow from operating activities for 2018 was -¥293,654,221.31, a significant decline of 715.72% from ¥47,692,921.20 in 2017[35]. - The total assets at the end of 2018 were ¥7,836,652,669.43, reflecting a 12.00% increase from ¥6,996,990,747.74 at the end of 2017[35]. - The net assets attributable to shareholders at the end of 2018 were ¥1,774,313,781.29, showing a slight increase of 0.88% from ¥1,758,840,847.54 at the end of 2017[35]. - The company reported a basic earnings per share of ¥0.0226 for 2018, up 43.95% from ¥0.0157 in 2017[35]. - The company's operating profit decreased slightly by 1.82% to ¥35,148,401.28, despite an increase in total profit by 10.61% to ¥48,661,665.44[76]. - The company achieved a net profit of 31,945,866.78 yuan in 2018, despite a significant negative cash flow from operating activities of -293,654,221.31 yuan[114]. Business Operations - The company completed a non-public offering to acquire 100% equity of the machinery company from Sinopec Group in 2015, expanding its main business scope[32]. - The company’s main business now includes research, manufacturing, sales, leasing, and services related to oil drilling, gas collection, marine engineering, and new energy development[32]. - The company has undergone changes in its main business operations, including the addition of natural gas sales and related services[32]. - The company operates in multiple sectors including oil and gas drilling, marine engineering, and environmental protection, focusing on integrated solutions for oil and gas exploration and development[50]. - The company is exploring the rental business for drilling equipment and compressors in response to market demand[56]. - The company has established 16 production lines for core manufacturing, including drill bits and drilling rigs, and has received international certifications such as API, GOST, and CE[56]. Research and Development - The company has built a comprehensive technology R&D system and has been recognized as a national technology innovation demonstration enterprise[67]. - The company launched innovative products such as the 5000-type all-electric fracturing equipment and a 9000-meter electric drilling rig, enhancing its market position[106]. - The company is actively pursuing technology research projects in deep shale gas and offshore oil and gas sectors, contributing to its strategic expansion[106]. - Research and development expenses grew by 17.61% to ¥246,196,763.04, indicating a commitment to innovation[76]. - The number of R&D personnel increased by 5.03% to 835, representing 15.34% of the total workforce[110]. Market Performance - The company exported its continuous coiled tubing equipment and skid-mounted fracturing equipment to Russia for the first time, and high-pressure pipe assemblies to the U.S. market[72]. - The company’s overseas market revenue reached 587 million yuan in 2018, remaining stable compared to 2017[72]. - Domestic revenue accounted for 88.07% of total operating revenue, amounting to ¥4,332,172,574.81, a 27.80% increase year-on-year[81]. - The sales volume of drilling tools increased by 24.00% to 25,594 sets compared to the previous year[89]. - The production volume of oil and gas pipes surged by 40.09% to 370,255 tons, driven by significant new orders[89]. Financial Management - The company reported a distributable profit of -352,715,417.61 CNY, indicating a loss during the reporting period[164]. - The company has established a shareholder return plan for 2018-2020, committing to distribute at least 30% of the average distributable profit over the three years in cash dividends, subject to meeting cash dividend conditions[156]. - The company has maintained a consistent profit distribution policy, emphasizing stable returns to investors, although it could not distribute cash dividends in 2018 due to negative retained earnings[158]. - The company’s cash dividend policy is aligned with its articles of association and has been executed transparently, with independent directors fulfilling their responsibilities[159]. - The company emphasizes the protection of minority shareholders' rights and interests in its profit distribution decisions[158]. Risks and Challenges - The company faces risks from fluctuations in international oil prices, which could impact demand for its products[144]. - The company is exposed to exchange rate risks due to its international business operations[145]. - The company acknowledges potential uncertainties in overseas operations, including political and regulatory risks[146]. Corporate Governance - The company has not disclosed any significant undisclosed information during its investor communications, ensuring compliance with regulations[151]. - The company received a total of 18 investor communications during the reporting period, involving 59 institutions and 68 individuals[151]. - The company did not engage any foreign accounting firms, resulting in zero fees for foreign audit services[190]. - The company appointed Deloitte Touche Tohmatsu Certified Public Accountants LLP as the domestic accounting firm, with an audit fee of 1.1 million CNY for the year[189]. - The company has committed to avoiding competition with its controlling shareholder and related parties, ensuring no conflicts of interest in its main business operations[167].