COSL(HK:02883)2024-04-17 09:07Financial Performance - Total revenue for 2023 was RMB 44,042.2 million, representing a 23.7% increase from RMB 35,610.1 million in 2022[7] - Operating profit for 2023 reached RMB 4,855.2 million, a significant increase of 78.3% compared to RMB 2,723.4 million in 2022[9] - Annual profit for 2023 was RMB 3,282.6 million, reflecting a 31.3% growth from RMB 2,499.2 million in the previous year[9] - Basic earnings per share for 2023 were RMB 63.15, up 27.8% from RMB 49.43 in 2022[9] - The net profit for 2023 was RMB 3,282.6 million, up RMB 783.4 million, reflecting a year-on-year increase of 31.3%[26] - The total operating revenue of RMB 44,042.2 million in 2023, an increase of RMB 8,432.1 million, representing a growth of 23.7% year-on-year[26] - The drilling services segment generated revenue of RMB 12,051.2 million in 2023, a 16.6% increase from RMB 10,334.1 million in 2022[28] - The oilfield technical services segment reported revenue of RMB 25,717.5 million in 2023, a significant increase of 31.4% from RMB 19,571.2 million in 2022[35] - The international market contributed RMB 9,470.3 million to total revenue, representing a 50.9% increase from RMB 6,274.5 million in the previous year, accounting for 21.5% of total revenue[54] Asset and Liability Management - Total assets as of the end of 2023 amounted to RMB 83,245.8 million, a 7.9% increase from RMB 77,160.7 million in 2022[10] - The total liabilities increased by 10.2% to RMB 40,989.7 million from RMB 37,184.8 million in 2022[72] - The company reported a significant increase in contract liabilities (current liabilities) to RMB 1,207.4 million, up 58.9% from the previous year, driven by increased mobilization revenue and advance payments for equipment sales[76] - The company’s long-term debt (current liabilities) decreased by 83.9% to RMB 140.7 million, primarily due to bond repayments[75] Operational Efficiency - The company implemented a structural and systematic cost reduction mechanism, enhancing its cost control capabilities and operational efficiency across the entire service lifecycle[23] - The total operating expenses for the group were RMB 39,496.7 million in 2023, an increase of RMB 6,267.8 million or 18.9% year-on-year[58] - Subcontracting expenses rose significantly by RMB 3,256.2 million or 39.9%, reflecting increased operational and personnel outsourcing costs[60] - The drilling services segment saw a significant turnaround with an operating profit of RMB 739.7 million, up 216.4% from a loss of RMB 635.5 million in 2022[64] Market Expansion and Strategy - The company is actively expanding its international business across regions including Asia-Pacific, Middle East, Americas, Europe, and Africa, with significant growth in new markets and clients[6] - The strategic goal is to become a world-class energy service company with a focus on technology-driven, cost-effective, integrated, and international development[2] - The company established a "1+2+N" market layout, enhancing its international and regional development strategies, with a focus on high-end technology and integrated services in various regions including the Middle East and Southeast Asia[20][21] - The company aims to enhance its core functions and competitiveness in 2024, focusing on building a modern industrial system that is autonomous, secure, and competitive[24] Technological Innovation - The company continues to prioritize technological innovation, with a focus on transforming key variables into substantial growth for high-quality development[14] - By the end of 2023, the company had obtained over 1,300 authorized patents and received more than 20 national and provincial-level scientific and technological awards, with several core technologies achieving world-class standards[22] - The company successfully completed over 1,700 well operations using its independently developed "Xuanji" high-end drilling technology, achieving a success rate of 95.11%[36] - The company’s self-developed multi-functional ultrasonic imaging logging instrument (MUIL) has achieved large-scale sales, enhancing global recognition and expanding market share[37] Environmental and Social Responsibility - The company is committed to green and low-carbon transformation, with the world's largest LNG-powered fleet fully operational and a clear path for "green equipment + green technology + green products + green operations"[15] - The company’s LNG-powered vessels are expected to reduce carbon dioxide emissions by over 10,000 tons annually, contributing to its green transformation strategy[38] - The carbon emissions per unit of output decreased to 0.4132 tons per ¥10,000 in 2023, down from 0.4471 tons in 2022[148] - Environmental investment increased to ¥9,780.49 million in 2023, compared to ¥5,185.00 million in 2022[150] Corporate Governance - The company has been recognized as a leading enterprise in corporate governance, enhancing its operational efficiency and risk management capabilities[16] - The company has adhered to the corporate governance principles and rules as per the Hong Kong Stock Exchange Listing Rules and has made improvements in governance practices during 2023[85] - The board has focused on enhancing risk assessment for investment projects and has implemented measures to strengthen overseas project management and risk identification[86] - The company has established a governance mechanism that enhances decision-making efficiency and ensures compliance with shareholder resolutions[165] Employee Engagement and Development - The total number of employees trained increased to 2,824,384 hours in 2023, up from 1,953,215 hours in 2022[146] - The employee turnover rate for Chinese nationals was 0.8% in 2023, down from 1.1% in 2022[147] - The company has implemented training programs for directors and senior management to enhance their professional development[106] - The company has established a dual-week warning case mechanism and a regular risk assessment mechanism to enhance its integrity culture[162] Risk Management - The company has established a comprehensive risk management framework, including a risk management committee and a set of guidelines for major operational risk events[177] - The company has implemented a three-line defense mechanism for risk management, integrating it into daily operations to ensure effective risk control[180] - The risk management office conducts quarterly risk assessment meetings to monitor information security risks and ESG-related risks[98] - The company has established a risk pre-warning monitoring mechanism, conducting annual and quarterly risk assessment meetings to report to the board[179]