SOFE(SZ:000852)2021-04-29 16:00Financial Performance - The company's operating revenue for 2020 was CNY 6,213,351,762.51, a decrease of 5.69% compared to 2019[23]. - The net profit attributable to shareholders of the listed company was CNY 6,588,352,169.84, representing a decline of 71.45% year-on-year[23]. - The net profit after deducting non-recurring gains and losses was CNY -40,581,656.94, an improvement of 35.74% compared to the previous year[23]. - The net cash flow from operating activities was CNY 225,111,219.13, an increase of 135.23% from -638,968,772.40 in 2019[23]. - Basic earnings per share decreased by 71.34% to CNY 0.0092 from CNY 0.0321[27]. - Total assets decreased by 7.33% to CNY 8,204,689,194.21 from CNY 8,853,956,069.09[27]. - Operating revenue for 2020 was CNY 6,213,351,762.51, down from CNY 6,588,352,169.84 in 2019[27]. - The total profit for 2020 was 48.72 million RMB, reflecting the impact of the COVID-19 pandemic and falling oil prices[52]. - The company's net profit decreased by 32.13% to ¥30,662,950.53, primarily due to sales disruptions caused by the COVID-19 pandemic and pricing pressures[62]. - Operating profit decreased by 31.19% to ¥37,995,255.27, reflecting the overall decline in revenue and increased costs[62]. Business Strategy and Development - The company is focused on expanding its business in oil and gas drilling and collection, as well as new energy development equipment[22]. - The company is committed to improving product quality and technological consulting services in the field of oil and gas equipment[22]. - The company plans to expand into four emerging industries: hydrogen energy, environmental protection, chemical equipment, and digital industries, leveraging its strong manufacturing capabilities[115]. - The company aims to achieve a "manufacturing + service" transformation by optimizing domestic service network layout and enhancing service capabilities in oil and gas development[119]. - The company is committed to developing key products in hydrogen energy, including hydrogen purification devices and hydrogen refueling stations, to establish a manufacturing and service base for hydrogen energy equipment[116]. - The company is focusing on upgrading environmental protection products and developing equipment for carbon capture and storage to meet market demands[118]. - The company is enhancing its smart control technology and building a remote monitoring service platform for equipment lifecycle management through digital industry initiatives[117]. - The company is actively pursuing equipment leasing services to align with the upstream trend of light asset operations, establishing new business management mechanisms[119]. Market Position and Competition - The company is positioned as a leader in the domestic market for oil and gas equipment manufacturing and services[41]. - Long-term oil and gas demand is expected to continue growing, despite potential volatility from geopolitical events[43]. - The oil and gas equipment industry is characterized by high customer concentration and high entry barriers, with only about 20 countries capable of manufacturing oil drilling equipment[41]. - The company secured new orders totaling 6.34 billion RMB in 2020, maintaining market stability despite challenging conditions[53]. - The company’s overseas business generated new orders of 586 million RMB in 2020, demonstrating resilience amid global challenges[59]. - The company established over 70 sales and service stations in major domestic oil and gas blocks, enhancing its market presence[48]. Research and Development - The company has established 16 production lines and multiple specialized laboratories to enhance manufacturing capabilities[39]. - The company developed and upgraded 10 key products, including a 5000 model electric fracturing unit, significantly enhancing product performance[54]. - The number of R&D personnel increased to 927, representing 17.79% of the total workforce, up from 16.29% in 2019[83]. - Research and development expenses amounted to ¥386,057,065.48, a decrease of 5.97% from ¥410,560,864.50 in 2019[78]. - The company completed 51 various projects, including 2 national-level projects, emphasizing its commitment to innovation and technology advancement[81]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in its reports[6]. - The company is exposed to various risks including international oil price fluctuations, exchange rate risks, and uncertainties in overseas operations as it expands its international market presence[122]. - The company has a cash dividend policy that stipulates a minimum of 30% of the average distributable profit over the last three years should be distributed as cash dividends, but no dividends were declared for 2020 due to negative retained earnings[126][132]. - The company has not distributed cash dividends for the past three years, with the total cash dividend amount for 2020 being 0.00, reflecting a 0.00% payout ratio[133]. Corporate Governance and Compliance - The company has engaged in 21 communication activities with 3 institutions and 18 individuals during the reporting period, discussing operational conditions without disclosing any significant undisclosed information[123]. - The company’s profit distribution policy is designed to ensure reasonable returns to investors while maintaining continuity and stability, with independent directors playing a role in protecting minority shareholders' rights[127][131]. - The company has committed to avoiding competition with its controlling shareholder, Sinopec Group, and will take necessary measures to prevent conflicts of interest[139]. - Sinopec Group has pledged to minimize related party transactions with the company and ensure financial independence, adhering to relevant regulations[139]. - The company reported no significant non-operating fund occupation by controlling shareholders or related parties during the reporting period[141]. - The company reported no significant litigation or arbitration matters during the reporting period[154]. - The company had no penalties or rectification issues during the reporting period[155]. Environmental and Social Responsibility - The company has implemented a comprehensive HSSE management system to enhance environmental protection and sustainable development practices[185]. - The company has established a pollution prevention facility that operates in compliance with environmental regulations, with all facilities functioning normally during the reporting period[191]. - The company has actively participated in social responsibility initiatives, including support for poverty-stricken areas and contributions to pandemic control efforts[186].