Investment Overview - Shanghai ShenKai Petroleum Chemical Equipment Co., Ltd. (hereinafter referred to as "the company") is acquiring 51% equity of Beijing Blue Ocean Zhixin Energy Technology Co., Ltd. (hereinafter referred to as "Blue Ocean Zhixin") for a total consideration of 60 million yuan, valuing 100% of Blue Ocean Zhixin at 117.65 million yuan [1][11][21] - The acquisition will allow the company to indirectly hold 51% of Blue Ocean Zhixin's equity, making it a subsidiary included in the company's consolidated financial statements [1][21] Decision and Approval Process - The company's board of directors approved the acquisition on June 19, 2025, and the transaction does not require shareholder approval as it falls within the board's authority [1][21] Target Company Overview - Blue Ocean Zhixin specializes in intelligent drilling technology for the oil and gas industry, focusing on data-driven integrated solutions to enhance drilling efficiency and risk management [4][7] - The company has been recognized as a high-tech enterprise by the Zhongguancun Science Park Management Committee and has a strong management team with international experience [7][8] Financial Performance - As of March 31, 2025, Blue Ocean Zhixin reported total liabilities of approximately 12.52 million yuan and net assets of approximately 32.21 million yuan [3] - The company experienced a net loss of approximately 1.93 million yuan in the first quarter of 2025, compared to a net profit of approximately 10.30 million yuan for the entire year of 2024 [3] Business Model and Competitive Advantage - Blue Ocean Zhixin's main products include drilling data acquisition systems, geological modeling software, and AI-driven decision-making algorithms, which significantly improve drilling efficiency and reduce costs [5][6][7] - The company has established a differentiated competitive advantage through its comprehensive product matrix covering the entire drilling process, from data collection to decision execution [9][10] Transaction Pricing and Valuation - The valuation of Blue Ocean Zhixin was based on a report from Tianyuan Asset Appraisal Co., Ltd., which determined the market value of the company's total equity at approximately 119.80 million yuan, reflecting a significant increase from its book value [11][21] Impact of Acquisition - The acquisition aligns with the company's strategy for digital transformation and aims to enhance its core competitiveness by integrating Blue Ocean Zhixin's technology with its existing operations [21] - The collaboration is expected to create a comprehensive ecosystem combining hardware, software, and services, thereby accelerating the company's growth in the intelligent oil and gas equipment market [21]

Core Viewpoint - The article discusses the significance and growing demand for non-magnetic alloy steel drill pipes in the oil and gas drilling industry, highlighting their advantages in high-precision applications and complex geological conditions [1][3][4]. Summary by Sections Product Overview - Non-magnetic alloy steel drill pipes are specifically designed for oil drilling operations, providing necessary weight and stability during drilling [1]. - Unlike traditional magnetic alloy drill pipes, non-magnetic variants excel in environments with strong magnetic interference, crucial for geological measurements and directional control [1]. - These drill pipes are made from specially treated alloy steel, typically containing elements like molybdenum, chromium, vanadium, and manganese, which enhance strength, wear resistance, and corrosion resistance [1][2]. Market Development Analysis - The non-magnetic alloy steel drill pipe market is experiencing rapid growth driven by increasing global energy demand, particularly for oil and gas [3]. - The need for high-performance drill pipes is rising due to advancements in drilling technology, especially in complex geological conditions and deep-water drilling [3]. - The development of deep-sea oil and gas resources further intensifies the demand for non-magnetic alloy steel drill pipes, as they enable precise directional control [3]. - New technologies such as 3D printing and smart drilling are raising market expectations for non-magnetic alloy steel drill pipes, prompting innovations in production processes and material technologies [3]. Challenges in the Market - The production cost of non-magnetic alloy steel drill pipes is relatively high due to expensive alloy materials and stringent manufacturing requirements, limiting their use in low-cost drilling projects [4]. - The market is characterized by intense competition with many manufacturers, leading to low market concentration and potential price wars that may affect product quality [4]. - Increasing environmental regulations are pushing manufacturers to focus more on sustainability and eco-friendliness in their research and development processes [4]. Future Outlook - The market is expected to see broader applications in the coming years, particularly with the development of more efficient and cost-effective non-magnetic alloy steel drill pipe materials [4]. - Trends in downstream demand indicate that as exploration activities in deep-sea, polar, and complex geological areas increase, the need for non-magnetic alloy steel drill pipes will continue to grow, especially in high-precision drilling and directional drilling [4]. - According to QYResearch, the global non-magnetic alloy steel drill pipe market is projected to reach USD 160 million by 2031, with a compound annual growth rate (CAGR) of 4.9% over the next few years [4].