SSC(600871)2024-03-26 16:00Financial Performance - The net profit attributable to shareholders for 2023 was RMB 589,216 thousand according to Chinese accounting standards, and RMB 576,083 thousand according to International Financial Reporting Standards[5]. - The company's operating revenue for 2023 reached RMB 79,980,939 thousand, an increase of 8.4% compared to RMB 73,772,688 thousand in 2022[25]. - The net profit attributable to shareholders for 2023 was RMB 589,216 thousand, reflecting a growth of 23.8% from RMB 475,898 thousand in the previous year[25]. - The total assets at the end of 2023 amounted to RMB 75,162,974 thousand, representing a 5.6% increase from RMB 71,208,061 thousand at the end of 2022[26]. - The basic earnings per share for 2023 was RMB 0.031, up 24.0% from RMB 0.025 in 2022[27]. - The company reported a total profit of RMB 928,340 thousand for 2023, which is a 27.3% increase from RMB 729,361 thousand in 2022[25]. - The company experienced a decrease in net profit after deducting non-recurring gains and losses, which was RMB 359,452 thousand, down 7.7% from RMB 389,447 thousand in 2022[25]. - The weighted average return on equity for 2023 was 7.63%, an increase of 0.93 percentage points from 6.70% in 2022[27]. - The company recorded non-recurring gains of RMB 229,764 thousand in 2023, compared to RMB 86,451 thousand in 2022[35]. - The company reported a gross profit margin of 6.8% for its main business, with a slight decrease of 0.5 percentage points compared to the previous year[76]. - The company’s gross profit margin improved to 30% from 28% in the previous year, reflecting better cost management and pricing strategies[79]. Cash Flow and Dividends - The company's retained earnings at the end of 2023 were negative RMB 1,900,922 thousand, leading to a recommendation of no cash dividend distribution for the year[5]. - The company plans to submit the profit distribution proposal to the shareholders' meeting for approval[5]. - The net cash flow from operating activities for 2023 was RMB 5,576,913 thousand, a significant increase of 32.9% compared to RMB 4,197,869 thousand in 2022[25]. - The net cash generated from operating activities was RMB 5,576,913 thousand, an increase of RMB 1,379,044 thousand compared to 2022[131]. - The net cash used in investing activities in 2023 was RMB 4,059,383 thousand, an increase of RMB 108,221 thousand year-on-year, primarily due to increased equipment purchases[132]. - The net cash used in financing activities was RMB 558,226 thousand in 2023, a decrease of RMB 493,023 thousand compared to the previous year[132]. - The cash and cash equivalents at the end of 2023 increased to RMB 2,788,798 thousand from RMB 1,801,150 thousand at the end of 2022[131]. - The company reported a net increase in cash and cash equivalents of RMB 959,304 thousand in 2023, compared to a decrease of RMB 804,542 thousand in 2022[131]. Assets and Liabilities - The total liabilities increased to RMB 67.14 billion, compared to RMB 63.78 billion in 2022, reflecting a rise of 5.4%[39]. - The company's total assets at the end of the reporting period were RMB 76,000,000 thousand, with cash and cash equivalents amounting to RMB 2,816,116 thousand, representing 3.7% of total assets[89]. - The company reported a significant increase in accounts receivable, totaling RMB 10,602,242 thousand, which accounted for 14.1% of total assets[89]. - The company’s investment activities resulted in a net cash outflow of RMB 4,059,383 thousand, primarily due to increased equipment purchases[88]. - Long-term equity investments rose significantly to RMB 553,496 thousand, a 1002.3% increase from RMB 50,215 thousand[90]. - Contract assets increased to RMB 16,203,248 thousand, up 3.8% from RMB 15,613,899 thousand[90]. - Total overseas assets reached RMB 24,490,023 thousand, accounting for 32.6% of total assets[93]. - The company's asset-liability ratio was 89.3% as of December 31, 2023, slightly down from 89.6% at the end of 2022[129]. Market and Contracts - The company signed new contracts worth RMB 82.4 billion in 2023, with 112 projects exceeding RMB 100 million each[42]. - The overseas market contributed RMB 16.7 billion in new contracts, with a 7.1% increase year-on-year, and RMB 16.09 billion in revenue, up 23.6%[42]. - The total new contract value signed for the year was RMB 82.4 billion, a growth of 1.7% year-on-year, marking the best performance since the 13th Five-Year Plan[52]. - The company signed contracts worth USD 3.3 billion for five exploration wells in Saudi Arabia, marking a significant entry into the Saudi Aramco exploration service market[60]. - The company expects the oil service market to improve, driven by high oil prices and increased exploration and development capital expenditures[105]. Research and Development - The company achieved 541 patent authorizations and completed 20 major technological innovations in 2023[42]. - Research and development efforts led to 1,004 patent applications, with 541 patents granted, showcasing the company's commitment to innovation[61]. - The company’s R&D expenditure for 2023 was RMB 2,083,796 thousand, a 13.3% increase from RMB 1,838,968 thousand in 2022, accounting for 2.6% of total revenue[84]. - The number of R&D personnel reached 3,367, making up 5.31% of the total workforce[85]. Governance and Management - The board of directors consists of 5 members, with 3 present at the meeting where the annual report was approved[4]. - The company held its annual general meeting on June 6, 2023, approving the 2022 audited financial report and profit distribution plan[153]. - The company appointed Zhang Jiankuo as the new General Manager starting December 2023, with previous roles including Deputy General Manager and Manager of the Yellow River Drilling Company[170]. - The company has seen a leadership transition with several key personnel changes, including the appointment of Zhang Congbang as Deputy General Manager in December 2023[171]. - The management team includes experienced professionals with advanced degrees and significant industry experience, enhancing the company's operational capabilities[170]. - The company is actively involved in market expansion and strategic initiatives, as evidenced by the diverse roles held by its executives across various subsidiaries[173]. - The company has maintained continuity in its governance structure, with several board members and executives having long tenures within the organization[173]. - The total remuneration for directors, supervisors, and senior management in 2023 amounted to RMB 10,405,499[176]. Strategic Initiatives - The company is committed to advancing green and low-carbon technologies, including the operation of a million-ton CCUS pipeline and the development of hydrogen projects[44]. - The company plans to enhance its project management system to improve resource allocation efficiency and support key projects[116]. - The company aims to improve drilling efficiency, targeting a utilization rate of over 85% for its teams[45]. - The company plans to enhance its competitive edge in high-end markets by increasing investment in equipment for overseas quality markets[64]. - The company aims to reduce management costs by RMB 650 million in 2024 through optimizing organizational structure and project management systems[116]. Risks and Compliance - The company does not have any non-operating fund occupation by controlling shareholders or related parties[6]. - There are no significant risks that need to be highlighted in the report[8]. - The company has not violated any decision-making procedures regarding external guarantees[7]. - The company is facing market competition risks due to geopolitical tensions and an oversupply in the oilfield service market[119]. - The company is focusing on the development of new energy technologies, including CCUS and hydrogen storage, to foster new economic growth[115].