On July 26, 2023, ZPEC Group held its 2023 Mid-year Work Conference at the ZPEC Shanghai Lingang Base. Main topics included reporting the results of company work performance, exploration, and production work in the first half of this year, analyzing the current internal and external situation and its own shortcomings, and fully deploying key tasks for the second half of the year. The meeting called on the whole Group to take advantage of the powerful opportunity of the rising new round in the development cycle of the oil and gas industry, work hard, take responsibility, follow the "trend", consolidate the management foundation, straighten out the system and mechanism, promote digital transformation , implement the group's various decision-making deployments, and strive to achieve new breakthroughs in management and performance.

Mr. Zhou Haimin, the General Manager of Xinhuaxia Company, firstly summarized the outstanding achievements of ZPEC’s exploration and production sector this year through detailed data and materials, focusing on the important progress, important discoveries and geological understandings obtained in the exploration and production of Wensu Block. From a professional point of view, he showed the company's next-step exploration prospects and goals of the three major oilfields at home and abroad, saying that it would follow the established exploration and development deployment and scientific research and production deployment. He said that he Group would do a good job in the three-month geological research battle to fully complete the ZPEC petroleum exploration and production tasks in 2023, as well as do a good job in the exploration and production deployment research work in 2024.

Mr. Ye Jifeng, the Senior Vice President of ZPEC Group, made a keynote report. He summarized the company's overall operating conditions in the first half of 2023 and pointed out that, in the first half year, the company’s revenue and profitability hit record highs, and its profitability and risk resistance capabilities continued to strengthen. Among them, the oilfield exploration and production unit business developed rapidly, and crude oil production reached a record high; the engineering unit project optimization effect was realized and the ability to generate income and efficiency was significantly improved; equipment manufacturing scientific research projects continued to achieve results and projects such as offline drilling rigs, intelligent drilling robots, and five-cylinder pumps were achieved. At the same time, the acquisition of overseas oil and gas projects, the improvement of project execution capabilities, the expansion of financing channels, and digital transformation are progressing smoothly, laying a solid foundation for the overall mission goal of "more than half".

He analyzed the problems and deficiencies in the current work from five aspects, emphasizing that the current external environment of the company has both opportunities and challenges, but the overall benefits outweigh the difficulties. In the case of domestic macroeconomic policies that are improving the private economy, the company must grasp the window period of explosive growth in benefits this year, rely on the advantages of integration to strengthen and expand the business, and improve profitability. He pointed out that the main line of work of the group in the second half of the year is to "Seek growth, highlight key points, improve quality, grasp efficiency, promote optimization, reduce costs, reduce burden, increase efficiency, control risks, and consider the long-term". Prospect projects, products and businesses, cultivate multi-polar economic growth points as soon as possible will highlight the group's development planning and strategy. This includes planning formulation, risk control, goal orientation, policy formulation, new project development, investment and financing management, human resource management, talent training, incentive policies and other aspects of the guidance and leading roles. All units and projects must resolutely implement the decision-making arrangements made by the Group, focus on strengthening business management, technological innovation, talent development, and other work, and continuously enhance the Group's sustainable development and risk resistance capabilities to ensure the completion of the annual benefit target.

Finally, Chairman Li Chundi delivered a speech. He pointed out that the report card of the company in the first half of the year is the brightest ever. Thanks to the company's integrated advantages, the current exploration and production, drilling engineering and equipment manufacturing units are booming and in good shape, but all units must be based on the long-term planning for the future. Starting from reality, he analyzed the focus and target positioning of each unit one by one, emphasized the importance of resources, markets and new products, and encouraged everyone to work together, strive for progress, and continuously achieve greater goals. He asked everyone to carry out solid work around the realization of the Group's three-year development goals, including these six aspects: One is to do a good job in digital transformation, to promote the change of management mode, to improve work efficiency, and to reduce operating costs; another is to promote the development of scientific and technological innovation, to accelerate the intelligent automation research and development of equipment products, and to introduce more high-tech into drilling and exploration in development; the third is to do a good job in operation and management, to focus on refinement, to control risks, and to regard operation as the top priority of the enterprise; the fourth is to do a solid job in basic work, to give full play to the power of the mechanism, and to mobilize the enthusiasm of all employees through incentive assessment; fifth is to focus on cultivating a reserve talent team, to cultivate cultural soil, and to "lead good teams to drill wells well"; and the sixth is to do a good job in safety work centered on well control. In his speech, the Chairman reviewed the difficult journey that the Group had gone through in the past few years. He pointed out that in this process, everyone became united and trusted each other, forming a "Journey of Iron and Blood", step-by-step out of hardships, saying that today's achievements are hard-won. He hoped that everyone would inherit and develop ZPEC's corporate culture, continue to build a strong team style, and ensure that ZPEC, a big ship, can go steadily and far in the turbulent ups and downs of the market economy.

The Chairman's speech described the company's bright future and provided a clearer understanding of the current development strategy. For everyone, the task in the second half of the year is still arduous. The horn of charge sounded.

(Yang Hongmin, Qu Qilei, Yang Zhaopeng)