Core Viewpoint - China Oil Engineering (中油工程) has secured significant overseas contracts, indicating strong international market performance despite a decline in domestic contract signings [2][3][9]. Group 1: Recent Contracts - On September 26, China Oil Engineering announced an EPC contract with Iraq's Basra Oil Company for a seawater pipeline project, valued at $2.524 billion (approximately 18.032 billion RMB) [2][3]. - In the past three months, the company has signed four major overseas contracts totaling 35.38 billion RMB, with three of these projects located in Iraq [6][5]. - The contract for the Iraq seawater pipeline project has a duration of 54 months, which includes 42 months for design, procurement, and construction, followed by 12 months for operation and maintenance training [3][4]. Group 2: Financial Performance - In the first half of 2025, China Oil Engineering reported a total revenue of 36.287 billion RMB, a year-on-year increase of 12.18%, while net profit was 470 million RMB, down 10.87% [9]. - The company achieved a new contract signing amount of 125.076 billion RMB in 2024, marking a 14.39% year-on-year increase, with domestic contracts accounting for 70.32% and international contracts for 29.68% [8]. - In the first half of 2025, the new contract amount from the international market was 23.182 billion RMB, representing a year-on-year growth of 9.86% [9]. Group 3: Market Position and Strategy - China Oil Engineering's business model encompasses the entire value chain of engineering construction, providing comprehensive solutions to clients [3]. - The company has been enhancing its collaboration with international energy firms, such as Total Energy, to solidify its position in the global energy engineering services market [9][10]. - The company plans to raise 5.913 billion RMB through a private placement to fund oil and gas storage and transportation projects and to supplement working capital [10].

Fundraising Plan - The company plans to raise a total of no more than 5.913 billion yuan through a specific stock issuance, with the net proceeds allocated to two major projects: the Basra seawater pipeline project in Iraq and the Abu Dhabi gas pipeline project in the UAE [1][2] - The total contract amount for the Basra seawater pipeline project is approximately 2.524 billion USD, while the Abu Dhabi gas pipeline project has a contract amount of about 513 million USD [1] Project Overview and Feasibility - The Basra seawater pipeline project involves a total pipeline length of 884 kilometers, connecting seawater treatment facilities to oil fields [2][3] - The Abu Dhabi gas pipeline project consists of two pipelines with a total length of approximately 180.5 kilometers, transporting natural gas [2][3] - These projects aim to enhance local oil and gas resource development, contributing to economic growth in Iraq and the UAE [3] Strategic Importance - The fundraising projects align with the company's strategy to expand its overseas business and enhance international competitiveness [3][4] - The company has established a robust management system and project operation model that aligns with international standards, facilitating long-term partnerships with major clients [4][5] Financial Implications - A portion of the raised funds, specifically 1.773 billion yuan, will be used to supplement the company's working capital, optimizing its capital structure and supporting future business development [5][6] - The fundraising is expected to improve the company's financial stability, reduce financial leverage, and enhance profitability [6][8] - The issuance will lead to an increase in total assets and net assets, while potentially causing a temporary decline in net asset return and earnings per share due to the time required for project implementation [8]