Summary of Key Points Core Viewpoint The company has decided to postpone the expected completion dates for certain fundraising investment projects due to changes in market conditions and strategic adjustments, while ensuring that the investment amounts and purposes remain unchanged. Group 1: Fundraising Overview - The company raised approximately RMB 2.5 billion through a private placement of 69,098,949 shares at a price of RMB 36.18 per share, with a net amount of RMB 2,487,483,821.84 after deducting issuance costs [1][2] - The remaining balance of the original fundraising project, which was terminated, is RMB 758.205 million, including interest and investment income [2][4] Group 2: Project Changes - The company has terminated the original project for the industrialization of new energy intelligent fracturing equipment and redirected the remaining funds to an oil and gas technology service project [2][8] - The total investment for the new project is estimated at RMB 830 million, with RMB 758.205 million expected to be funded from the redirected remaining balance [8] Group 3: Delay Reasons - The postponement is attributed to changes in market and macroeconomic conditions, as well as the company's strategic adjustments, which have led to a reassessment of project urgency [6][7] - The company aims to avoid resource waste by extending the timeline for project completion, particularly for the digital transformation project, which has seen a decrease in urgency due to overseas capacity construction [7][8] Group 4: Project Feasibility and Expected Benefits - The digital transformation project is essential for enhancing operational efficiency and reducing reliance on manual processes, although it does not directly generate revenue [11][12] - The oil and gas technology service project is expected to meet increasing market demand, with a positive outlook on economic benefits based on current market assessments [12] Group 5: Approval and Oversight - The postponement of the projects has been approved by the company's board and supervisory committee, ensuring compliance with relevant regulations [13] - The company will continue to monitor market conditions and manage resources effectively to ensure the projects are completed on schedule [10][13]

Core Viewpoint - The global oil and gas market experienced significant fluctuations in the first quarter due to macroeconomic conditions, geopolitical factors, and supply-demand dynamics, yet the active development of oil and gas remains unaffected. The demand for natural gas continues to grow, particularly in emerging markets in Asia [1]. Group 1: Company Performance - In the first quarter, the company received new orders amounting to RMB 1,740.9 million, a decrease of 22.0% compared to the same period last year [1]. - New orders from the Iraq market were approximately RMB 700.2 million, down 47.4% year-on-year, while other overseas markets saw new orders of about RMB 325.2 million, an increase of 43.5% [1][2]. - The Chinese market contributed new orders of RMB 715.5 million, reflecting a growth of 6.0% compared to the previous year [1][2]. Group 2: Market Expansion and Projects - The company is focused on enhancing operational efficiency and has proposed four "efficiency improvement" solutions, including oil and gas field development, natural gas resource utilization, AI-enabled oil and gas development, and collaborative platform solutions [1]. - In Iraq, the company successfully bid for various projects, including fiber monitoring and oil field supervision services, despite a decline in new orders due to the completion of a large integrated oil field management service project [2]. - The company aims to establish the Defoy oil field as a benchmark for intelligent development in Iraq, with plans for digital innovation and collaboration recognized by the joint management committee [3]. Group 3: Operational Efficiency - The company is committed to lean operations and high-quality execution of orders, achieving smooth and efficient project operations in Iraq [3]. - In other overseas markets, the company completed an asset integrity management project in Indonesia, showcasing its technical coordination and execution capabilities [3]. - In China, the company is focused on providing comprehensive solutions and has successfully launched the expansion of the Southwest pressure decoupling project, increasing daily processing capacity to 3.2 million cubic meters [3].