SOFE(SZ:000852)2023-04-27 16:00Financial Performance - The company's operating revenue for 2022 was ¥7,751,912,950.94, an increase of 11.51% compared to ¥6,951,472,812.03 in 2021[6]. - The net profit attributable to shareholders for 2022 was ¥51,578,171.24, representing a growth of 15.82% from ¥44,532,883.72 in 2021[6]. - The net cash flow from operating activities increased by 73.10% to ¥477,127,087.90 in 2022, up from ¥275,644,516.99 in 2021[6]. - The total assets at the end of 2022 reached ¥9,941,276,192.81, a 22.37% increase from ¥8,123,684,671.68 at the end of 2021[20]. - The net assets attributable to shareholders increased by 56.26% to ¥2,897,021,306.34 at the end of 2022, compared to ¥1,854,032,145.00 at the end of 2021[20]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, which rose to ¥24,304,004.97 in 2022 from ¥4,279,917.72 in 2021, marking a 467.86% increase[6]. - The company's consolidated net profit for the year was ¥67,668,571.38, while the net cash flow from operating activities was ¥477,127,087.90, indicating a significant difference due to high depreciation and interest expenses[57]. - The company reported a revenue of 6,146.89 million yuan for 2022, representing a 20.59% increase compared to the previous year[177]. - The gross profit margin for the year was 74.96%, indicating strong profitability in operations[177]. - The company reported a total revenue of 39,247 million yuan for the year 2022, representing a 33.84% increase compared to the previous year[183]. Business Operations - The main business scope includes R&D, manufacturing, sales, leasing, and services of oil and gas drilling and gathering equipment, as well as new energy development[18]. - The company has undergone changes in its main business operations, including the acquisition of 100% equity of the mechanical company from the parent group in 2015[17]. - The company’s stock is listed on the Shenzhen Stock Exchange under the ticker symbol 000852[14]. - The company’s registered address is located in Wuhan, Hubei Province, with a postal code of 430223[14]. - The company has established 17 production lines for key manufacturing processes, enhancing its capabilities in drilling tools and equipment[32]. - The company aims to support the national energy security strategy by increasing its production capacity and service capabilities in the oil and gas sector[30]. - The company’s main business includes the design, research, manufacturing, and leasing of oil and gas extraction machinery and tools, with a focus on both traditional and new energy sectors[31]. - The company is actively developing hydrogen energy equipment, including hydrogen compressors and refueling machines, to align with new energy trends[31]. - The company is advancing its hydrogen energy initiatives, aiming to become China's leading hydrogen energy company, with ongoing projects in hydrogen production, storage, and application[82]. Market Presence and Sales - The domestic market accounted for 93.51% of total revenue, while international sales contributed 6.49%, with a notable growth of 33.25% in overseas revenue[43]. - The company successfully expanded its international market presence, securing new orders worth CNY 537 million in North America and Kuwait[41]. - The oil and gas steel pipe segment saw a significant revenue increase of 22.06%, reaching CNY 2.54 billion, up from CNY 2.08 billion in the previous year[43]. - The company established over 100 sales and service maintenance stations in major domestic oil and gas blocks, enhancing its service network[36]. - The company reported a significant investment in equipment, with 80 million yuan allocated for pressure drilling repair equipment in 2022[177]. - The company aims to enhance its market presence through strategic partnerships and product diversification in the oil machinery industry[182]. Research and Development - R&D expenses increased by 12.38% to ¥310,594,075.22 in 2022 from ¥276,371,373.64 in 2021, representing 4.01% of total revenue[53]. - The number of R&D personnel increased by 8.44% to 1,092 in 2022, with the proportion of R&D staff rising to 21.80%[53]. - The company has made significant advancements in R&D, including the development of a high-sulfur natural gas booster compressor, breaking foreign monopolies in this area[53]. - The company is developing the SCF8000 electric fracturing equipment to enhance automation and competitiveness in the market[52]. - The company is focusing on improving its independent innovation capabilities and has implemented a performance-based compensation system for key research personnel[134]. Governance and Compliance - The company emphasizes the independence of its operations from the controlling shareholder in terms of business, personnel, assets, and finance[96][98]. - The company has established a robust governance structure, ensuring compliance with relevant laws and regulations[94]. - The company is committed to enhancing the quality and transparency of its information disclosure to protect the rights of all shareholders, especially minority shareholders[94]. - The company conducted four quarterly internal control tests and one annual internal control check in 2022, with no significant defects or risks identified[138]. - The internal control audit report was disclosed on April 28, 2023, and is available on the official website[142]. - The company has no major defects in its internal control system as per the audit findings[142]. Environmental Initiatives - The company has implemented various pollution control measures, including VOCs treatment facility upgrades, achieving a removal rate increase from 75% to 90%[148]. - The wastewater treatment system at Jiang Drill Company has achieved a 100% reuse rate for domestic wastewater[148]. - The company has established a comprehensive pollution prevention facility management system, ensuring normal operation of pollution control facilities[149]. - The company has developed emergency response plans for environmental incidents and conducted drills[150]. - The company strictly adheres to national environmental protection laws and regulations, ensuring compliance with discharge standards[145]. - The company was recognized as a "Green Factory" in 2022 for its energy-saving and emission-reduction initiatives[152]. - The company has set a target for carbon peak by 2030, outlining six major action tasks[152]. Shareholder Engagement - The company held multiple investor meetings and communications throughout the reporting period, focusing on its development strategy and operational performance[91]. - The first temporary shareholders' meeting in 2022 had a participation rate of 60.61% on February 18, 2022[99]. - The annual shareholders' meeting for 2021 had a participation rate of 58.97% on June 29, 2022[99]. - The company approved the 2022 Restricted Stock Incentive Plan on December 4, 2022, to enhance employee motivation and align interests with shareholders[134]. Employee Management - The total number of employees at the end of the reporting period was 5,020, including 1,649 from the parent company and 3,371 from major subsidiaries[128]. - The company implemented a diversified compensation system based on job performance, with a focus on market-oriented and differentiated salary distribution[129]. - The company has established a performance evaluation mechanism for senior management, linking their compensation to the achievement of operational targets[136]. - The company has established a comprehensive training plan to enhance employee capabilities, integrating it into the medium to long-term development strategy[131]. Risks and Challenges - The company has faced various risks as outlined in the management discussion and analysis section of the report[3]. - The company’s future development outlook includes potential challenges that investors should be aware of[3]. - The company faces risks from market volatility, particularly due to geopolitical tensions and economic uncertainties affecting oil prices, which could impact exploration and development demand[90].