On June 18^th, the ZPEC2019 Semiannual Meeting & Annual Scientific and Technological Work Conferencewas held at its Lingang Base Headquarters. It summed up the outstanding achievements and shortcomings of its threemain businesses of Drilling Engineering, Equipment Manufacturing, and Exploration& Development.  Additionally the arrangementsfor the production and operation, the technological innovation, and the managementinnovation in the second half of the year were made. The request ofcomprehensively supporting the front-line safety and efficiency inproduction, strengthening the safeguard mechanism to improve the profitability,and promote the long-term development of the company was also pointed out.

At the meeting, Mr. Yao Guicheng, VicePresident of ZPEC Group, first reported the production and operation of thecompany in the first half of the year.  Heanalyzed the completion status and existing problems of the annual operationaltasks of each project, and then he gave guidance on how to expand theefficiency channels in the second half of the year. Subsequently, Mr. ZhouHaimin, General Manager of Beijing XinHuaxia International Energy DevelopmentCo., Ltd., held by ZPEC Holdings, introduced the gratifying progress in theexploration and development work in the first half of the year and lookedforward to the future work priorities and project prospects.

Mr. Chen Qingjun, President of ZPECGroup, presented the work report for the first half of 2019, titled“Consolidating the Foundation, Exploiting Potential and Enhancing Efficiency,Innovating Mechanism, and Accelerating the Strategic Transformation andUpgrading of the ZPEC Group”. He first reported the main operating results andhighlights of the Group in the first half of the year and praised the fruitfulresults gained by the marketdevelopment system.  He fully affirmedthe solid and effective work of the drilling section in promoting the smoothoperation of old projects and the rapid start of new projects, which enhanced ZPEC’s brand influence both at home and abroad.  Mr. Chen spoke highly of the furtherintegration of resources in the equipment manufacturing sector, the rapidexpansion of external orders and product exports, and the smooth start andharvest of the exploration and development sector.  In the report, Mr. Chen also summarized theoutstanding achievements in the implementation of project management measures,business assessment, performance appraisal, finance, safety management,contract management, etc. in the first half of the year.  He also praised specific departments for theircompliance with the overall situation and their efforts, promoting theimplementation of the three integrated strategic layouts and the enhancingcompetitiveness of ZPEC.  After analyzingthe shortcomings of the first half of the year and the situation and tasksfaced by the Group in the second half of the year, Mr. Chen asked alldepartments and subsidiaries to carry out all-round, in-depth and refinedmanagement innovation with the project at the center.  He also arranged work for market development,material management, fund management, technical services, technologicalinnovation, etc.  He stressed how that allleaders and employees are expected to work with a great sense ofresponsibility and mission, ensuring the completion of the annual businessobjectives while accelerating the transformation of the company, and upgrading itsachievement of strategic goals.

Finally, the Chairman of ZPEC Group,Mr. Li Chundi, delivered a speech in which he reviewed three majortransformations in the development of ZPEC, pointing out that in everytransformation, ZPEC always encountered unexpected difficulties. Only bypersevering, hard work, and never being discouraged, can we see the dawn ofvictory. He expounded the advantages of the company's three integrated layoutsand the significance of extending the industrial chain to the upstream. Hehoped that everyone would strengthen their confidence, keep up with thetechnological situation of the country and the market, and accelerate thedevelopment of the main sectors from the traditional mode to its high-techdirection.  Mr. Li also emphasized thework in the second half of the year, requiring the leaders to pay attention to the front-line, to improve the performance of the well drilling team, and to make goodplans for cost management, which in turn would lay the foundation for improvingthe integrated lump-sum project, improving the safety management level, andoptimizing the market layout.

After completing the half-year workmeeting agenda, the Group held an annual Scientific and Technological Work Meetingand heard reports from the Iraq Branch, the Russian Branch, the Equipment Group,the Drilling Company and other departments on the development of Science and Technologyin 2018-2019, as well as the next scientific research plan. Mr. Zhu Fengxue, ViceChairman of ZPEC Group, recognized the advanced collectives and individuals fortechnological innovation.

Finally, Mr. Zhang Donghai, Chief Engineerof ZPEC Group, presented the Annual Scientific and Technological Work Report,which clarified the key points and specific tasks of the company's scientificand technological work’s next steps.  He requiredthe ZPEC Research Team to actively implement the “work to benefit fromtechnology” belief.  It’s master coretechnologies include high-difficult well drilling and intelligentmanufacturing, building ZPEC characteristics, and making due contributions tothe company's upgrading and transformation.