On January 12, 2023, the ZPEC 2023 Annual Work Conference was grandly held at ZPEC’s Shanghai Lingang Base Headquarters. Through the review of the achievements in 2022 and the deployment of the work in 2023, the whole Group had a clear understanding of the situation, strengthened their confidence, and defined their goals. In 2022, under the grim situation of various complex factors, ZPEC people have worked hard all the way through bad weather and the pandemic, and achieved the best operating performance in history. The meeting required all cadres and employees to strive to create a new situation for the company's high-quality development and write a new chapter of serving the country with energy with more high-spirited, proactive actions, and precise and pragmatic measures.

 Nearly 200 people, from ZPEC Group leaders, headquarters departments, and ZPEC Equipment Shanghai base representatives, participated in the meeting at the main venue. Simultaneously, cadres and employees of domestic and abroad branches participated in the meeting via 17 sub-venues through the video conference system.

 The annual TV feature film, entitled "Struggle and Endeavor and Start a New Journey", was played first.  The film showed the Group's expert team remotely escorting the drilling of key wells at home and abroad during Shanghai’s COVID-19 shut down, the efficient exploration and production of the integrated team of Aksu Oilfield in Xinjiang, the success of drilling engineering both domestically and abroad, as well as new breakthroughs in ZPEC’s intelligent equipment. It demonstrated the spirit of sharing good and bad, uniting as one, and fighting bravely under the epidemic. The vivid pictures and touching stories resonated strongly with the participants.

 Subsequently, Mr. Ye Jifeng, the Senior Vice President of ZPEC Group, presented the annual work report titled, "Strengthen the Foundation of Management Improvement, Increase the Power of Digital Transformation, and Fully Start the New Journey of High-speed and High-quality Development of ZPEC Group". He introduced the main achievements and outstanding practices in production and operation in 2022 from 18 aspects, including exploration and production, drilling engineering services, equipment manufacturing, digital transformation, trade business, and equity incentives.  He pointed out that, in 2022: the ZPEC Group's annual revenue scale and profit hit the best level in history; the oilfield exploration and production business grew by leaps and bounds; crude oil production made a historic breakthrough; the drilling engineering sector’s efficiency creation capability continued to improve; the development of intelligent products in the equipment manufacturing sector progressed smoothly; new breakthroughs were made in the development of international market business; digital transformation had been carried out; multiple digital software systems had been put into use one after another; and employee stock ownership and equity incentive plans were started, including 155 stock options and 184 employee stock holdings.

After objectively analyzing the deficiencies in 2022, Mr. Ye made arrangements for the work in 2023 from the three levels, emphasizing that the Group Headquarters should "Consider the long-term, seek growth, control risks, highlight key points, improve quality, focus on efficiency, promote optimization, reduce costs, reduce burdens, and increase benefits" as the main line of work. The exploration and production segment should actively implement the three-year crude oil production planning target, take "increasing reserves and production" as the main line of work, speed up the pace of exploration and production of the three oil fields, and make the oil and gas exploration and production segment bigger and stronger. He went on to say that the drilling engineering segment should focus on "Optimizing production operation and enhancement of sustainable development capabilities" as the main line, they would strive to improve the economic benefits of projects and sectors. In order to enhance competitiveness and sustainable development capabilities, the equipment sector must focus on "Scientific research, innovation, products, markets, and benefits" and continuously accelerate the transformation of scientific research results, enhance the competitiveness of products, expand the market share of core products, increase the expansion of key international markets, and form competitive products and core competitiveness.

Finally, Mr. Li Chundi, the Chairman of ZPEC Group, delivered an important speech. He pointed out that 2022 was a year of great turning point for ZPEC Group, phased victories were achieved along the strategic policy of resources plus technology, creating the best results in the company's history, and creating conditions and laying the foundation for the great development in 2023. He emphasized the key tasks for 2023 from six aspects: first, while ensuring the stable and increasing production of oil fields at home and abroad, ZPEC should do its best to do a good job in the exploration and production of new areas; second, aiming at becoming a world-class drilling company, further strengthening the advantages of drilling engineering in terms of talents, equipment, management, and technology, while continuously improving the core competitiveness of ZPEC Drilling; third, equipment manufacturing must achieve offline scientific research successes such as drilling rigs, strive for excellence, and realize the digital transformation of the equipment segment; fourth, further strengthen the leading force of the exploration and production team to ensure the smooth progress of the exploration and production of the three oilfields; fifth, the oil service segment must benchmark the world's top oilfields as a service company in 2023 and it should achieve a great growth in business and a great leap in development; sixth, the headquarters should fully support the development of Zhiyuan Leasing Company and strive to reach a new level in 2023. At the same time, Mr. Li encouraged everyone to seize the opportunity, speed up the pace of work, and stride into a new stage of great development in 2023.

 At the conference, Mr. Li signed the 2023 Business Target Responsibility Letter with the heads of each unit. Mr. Yao Guicheng, the Senior Vice President of ZPEC Group, introduced the Management Optimization and Business Development Plan for 2023. Mr. Yan Zhenlai, the Deputy Manager of ZPEC Technology Center, introduced the ZPEC Group for Scientific and Technological Work, Mr. Quan Wentao, the Manager of the ZPEC Group's Planning and Finance Department, introduced the Performance Indicators and Planned Budget of each unit in 2023.

The picture scroll of history unfolded in the forging and the splendid chapter of the times is written in the struggle. After the conference, the cadres and employees of ZPEC expressed that, in the new year, they would seize new opportunities, show new achievements, work hard, move forward bravely, and use practical actions to promote the high-quality development of ZPEC Group.

(ZPEC Headquarters/Hao Donglei)