On July 23^rd, 2026, ZPEC Group held its mid‑year work meeting at the Shanghai Lingang Base. The meeting was convened to review the performance of the first half of the year, analyze the current challenges, set out key tasks for the second half of the year, and map out the Company's future development strategy. It called on all cadres and employees to follow the Three Major Strategies of “Major Transformation, Major Adjustment, and Major Development”, stay confident, and break through difficulties with determination, so as to secure victory in the "Two Major Campaigns and Four Major Strategic Initiatives," become a world‑class energy enterprise at the earliest possible date, and contribute its part to China's economic and social development.

At the meeting, Chairman Li Chundi delivered an important address. President Li Shiguang reported on the outcomes of the Fifth-Phase Young and Middle‑Aged Management Training Program. Executive President Bo Qiliang presented the 2026 ZPEC Mid‑Year Business Performance Report, and Senior Vice President Yao Guicheng announced the 2026 ZPEC First‑Half Business Pre‑assessment Bulletin. Zhou Haimin, Chairman of Xinhuaxia, gave a report on exploration and development work in the first half of the year and outlined key tasks for the second half of the year. The meeting was chaired by Senior Vice President Wang Wenbo and was attended by the Group's executive leadership, heads of all headquarters departments, and heads of all business units. Cadres from subsidiaries under ZPEC Group at home and abroad attended the meeting simultaneously at branch venues via video link.

In his speech, the Chairman pointed out that with the expansion of its business, ZPEC now has over 5,000 employees and has entered a stage of rapid development. With clear strategies and well‑defined tasks, it can be said that never before in its history has the Company been so full of opportunities and hope as it is today. However, he cautioned that the risks and difficulties must be clearly recognized during this period of leapfrog growth. To secure sustainable growth and build a century‑old ZPEC, there remained many challenges that must be resolved without delay.

He began with the famous rallying cry from China's first peasant uprising, "are kings and generals born with noble blood?” and went on to deliver a profound analysis in five key areas: raising cognitive capabilities, optimizing the talent structure, improving incentive mechanisms, embedding institutional systems into the corporate culture, and fostering a strong sense of integrity and bottom‑line thinking. His address offered both an objective assessment of the current landscape and a forward‑looking vision for the Group's development, while also conveying earnest exhortations and deep expectations for all members of the ZPEC team. He encouraged all cadres and employees to stay rooted in the ZPEC platform, sharing the Company's destiny and growing together with it. By leveraging the Group's institutional advantages and benchmarking against world‑class energy enterprises, he called on everyone to pave a broad road for the Company's ascent to a new level, to consolidate the foundation for a century‑old ZPEC, and to make even greater contributions to the nation's development.

Executive President Bo Qiliang delivered the mid‑year business performance report, pointing out that 2026 marked the first year of the 15th Five‑Year Plan period and was also a crucial year for ZPEC Group to implement the strategies of "Major Transformation, Major Adjustment, and Major Development," as well as to deploy and execute the "Two Major Campaigns and Four Major Initiatives" and the "Management Upgrade 2.0" initiative. Since the beginning of the year, all ZPEC employees have worked together with unwavering dedication, actively responded to major changes in the Middle East, and basically fulfilled the Group's production and operational targets for the first half of the year. Notably, the oilfield campaigns have yielded outstanding results, and the divisional battles have progressed smoothly, further consolidating the foundation for sustainable development. 

He emphasized the overall work guidelines for the second half of the year and made specific arrangements for exploration and development, campaign and battle efforts, and business management. For exploration and development: accelerate reserve confirmation, stabilize production from existing wells, increase production capacity, advance surface facilities, strengthen water injection, and ensure sales. For campaigns and battles: make every effort to resolve bottlenecks and critical issues and fully advance the two major oilfield campaigns; prioritize unblocking key bottlenecks to expedite victory in the oilfield critical battles; and, driven by market demand, with priority on profitability and coordinated development, secure victory in the critical battle to improve quality and efficiency in engineering equipment and international trade. For business management: focus on profitability, strengthen cash flow, and strive to achieve the annual operational targets. 

In his report, Executive President Bo briefed the Group on ZPEC's 15th Five‑Year Plan. The overall guideline is to leverage the synergistic advantages of the entire industrial chain and build a "small but strong" integrated international energy company. The development strategy takes "Major Transformation, Major Adjustment, and Major Development" as the action outline to shape the overall strategic system for the next five years. He also elaborated on One Vision, Two Drivers, Three Major Action Guidelines, Four Synergies, Five Strategic Combinations, Six Planning Objectives, Seven Strategic Planning Blueprint, as well as the planning for the four business segments and five special plans. President Bo stressed that the 15th Five‑Year Plan period is a critical phase for ZPEC to achieve rapid resource succession and significant industrial upgrading. With oil and gas resource development as the core driver, drilling and oilfield services as the engineering backbone, equipment manufacturing as the technical carrier, and international trade and global supply chain as the value‑realization platform, he stated that the Group must successfully transform into an integrated oil company model combining both contractor and operator roles. He concluded by pointing out that in the second half of 2026, as the Group executes the "campaigns and major initiatives," there would still be many systemic bottlenecks and obstacles, requiring the entire Group to uphold the "Iron‑blooded Journey" spirit, make every effort to overcome difficulties, and fully achieve the annual production and operational targets, so as to jointly strive for building a sustainable and integrated international energy company that endures for generations.

 (Text by Yang Hongmin / Photos by Hu Yuqin and Luo Cong)