Interim Business Results - Operating revenue reached RMB 23.32 billion, a 4% year-over-year increase[11] - Profit from operations amounted to RMB 2.91 billion, an 8% year-over-year increase[11] - Total profit reached RMB 2.57 billion, a 7% year-over-year increase[11] - EBITDA reached RMB 6.48 billion, a 10% year-over-year increase[11] - Net profit reached RMB 2.08 billion, a 22% year-over-year increase[11] - EPS reached RMB 0.41, a 24% year-over-year increase[11] Business Segments - Drilling segment operating profit increased by RMB 0.31 billion year-over-year[16] - Technology segment maintained relatively high profitability[15] Operational Efficiency - Cost profit margin increased from 10% in 1H2024 to 11.2% in 1H2025[28] - Operating profit margin increased from 11.1% in 1H2024 to 12.4% in 1H2025[28] Overseas Operations - Overseas sales revenue and profitability have continued to grow[41]

Core Viewpoint - The petrochemical industry must leverage technological innovation, circular economy, carbon management, and equipment upgrades to become a leader in carbon reduction efforts [1][2]. Group 1: Equipment Upgrades - Equipment upgrades are essential for energy saving and carbon reduction, serving as an "efficiency enhancer" [1]. - Cuohua Group's Huaxing Chemical implemented variable frequency transformations on sulfuric acid plant pumps and SO2 fans, saving 1.7145 million kWh of electricity and 1.2 million yuan in electricity costs annually [1]. - Cuohua Liuguo Chemical upgraded air compressors to permanent magnet variable frequency models, reducing ineffective operation and saving 170,000 kWh of electricity annually, equivalent to 20.89 tons of standard coal [1]. - Cuohua Organic Chemical customized high-efficiency pumps using multi-condition hydraulic optimization technology, saving 117,000 kWh of electricity and reducing CO2 emissions by 96.5 tons annually [1]. Group 2: Intelligent Management - Intelligent management acts as an "accelerator" for energy saving and carbon reduction [2]. - Huaxing Chemical implemented a "dual-engine" management system to dynamically monitor 87 key energy consumption indicators, ensuring timely optimization of energy-saving measures [2]. - Liuguo Chemical utilized pressure recovery technology to achieve 3.2 million kWh of annual electricity generation from recycled water [2]. - Cuohua Group's New Bridge Mining Company established an intelligent pump room for unattended operation, saving 200,000 kWh of electricity annually [2]. Group 3: Green Energy Alternatives - Transitioning from fossil fuels to renewable energy is an effective pathway to achieve carbon neutrality [2]. - Cuohua Group actively applies technologies such as cogeneration, clean coal gasification, and waste heat power generation to enhance energy utilization efficiency [2]. - The company is exploring joint ventures for photovoltaic power generation projects to increase green electricity usage and has developed a clear roadmap for green electricity replacement [2]. - Cuohua Group prioritizes the deployment of photovoltaic power on factory rooftops and idle land, while also exploring low-carbon energy applications like green hydrogen and biomass energy [2]. Group 4: Overall Impact - The practice demonstrates that green transformation is not merely a cost burden for companies but a core source of competitive advantage [2]. - Embedding energy saving and carbon reduction into the development foundation is crucial for leading the industry in carbon reduction efforts, ultimately achieving a win-win situation for economic and ecological benefits [2].