Jereh Group(SZ:002353)2022-12-07 08:38Group 1: Current Business Situation - In 2015, the oil price remained low, leading to reduced spending by oil companies and a weak oil and gas industry overall [1] - The company faced declining revenue, reduced gross margins, increased expense ratios, and faster declines in net profit, even resulting in losses [1] - Despite challenges, opportunities arose in overseas markets, mergers, and industry talent acquisition [1] - Strategic adjustments included downsizing traditional manufacturing and service sectors while strengthening oil and gas engineering construction [1] Group 2: Future Business Outlook - Future revenue is expected to primarily come from overseas markets, particularly from emerging countries and Belt and Road Initiative nations [2] - The company is exploring entry into emerging industries when suitable opportunities arise [2] - Confidence in the future of oil and gas remains, although recovery timelines vary among institutions, with some predicting a recovery starting in 2016 [2] Group 3: Energy Transition and Market Insights - China is transitioning from a coal-dominated energy structure (over 60% coal) to one that includes more oil, gas, and renewable energy [2] - Current per capita oil consumption in China is less than 1 ton, and natural gas consumption is around 0.2 tons, indicating a mismatch with the country's economic scale [2] - Increased natural gas usage could significantly reduce air pollution and improve environmental conditions in China [2] - The belief that new energy sources, particularly electric vehicles, will completely replace oil and gas is considered exaggerated [2]