? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??Chairman of COOEC | Wang Zhangling
Esteemed shareholders and friends,
On behalf of the Board of Directors, I hereby submit the 2024 Annual Report of COOEC for your review. And I would like to express my heartfelt thanks to all shareholders and peers from all walks of life who have been supporting the development of COOEC.
The year 2024 marked the inaugural year for fully implementing the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, as well as a critical year for achieving the objectives outlined in the 14th "Five-Year Plan". In 2024, COOEC resolutely adhered to the guiding principle of high-quality development, with a strategic focus on strengthening core functions and enhancing core competitiveness, thereby propelling the Company's high-quality development to new heights.
Pool strengths to drive robust growth, fully leveraging the strategic driving force. COOEC upholds the guidance of the new development philosophy. By reviewing the successes and lessons learned from its growth trajectory, the Company has been steering comprehensive optimization in structure, operational layout, and institutional mechanisms, driving continuous enhancement of global competitiveness, while effectively activating the strategic governance role of its Board of Directors. In 2024, as the 14th "Five-Year Plan" approached its conclusion and the 15th "Five-Year Plan" was about to commence, COOEC convened a strategic seminar of the Board of Directors under the theme of "Accelerating the cultivation of new quality productive forces to propel high-quality development." The seminar served as a platform to jointly deliberate on pathways for coordinated green and low-carbon development, explore methodologies for fostering new quality productive forces, map out strategies for overseas expansion in the new era, and conduct in-depth studies on deepening institutional and mechanism reform, collectively charting a visionary blueprint for the Company's future trajectory.
Deepen "reform" and increase "efficiency", striving to enhance "core competitiveness". Comprehensively deepening reform is the fundamental driving force for driving China's modernization. COOEC has pioneered the transformation of conventional operational frameworks, spearheading the implementation of an agile market-responsive EPC management model. This strategic shift establishes a robust foundation for achieving the ambitious target of doubling enterprise-wide labor productivity. In 2024, COOEC achieved a steel structure processing volume of 454,000 tons and utilized 28,700 vessel-days, with the "One Profit and Five Ratios" indicators demonstrating both quantitative growth and qualitative improvement. The Company maintained annual operating revenue at the RMB 30 billion scale, while net profit surpassed RMB 2 billion, marking a nine-year high.
Forge a "new" model to proactively cultivate "new quality productive forces". Developing new quality productive forces represents an intrinsic requirement and key focus for advancing high-quality development. Guided by chain-thinking, collaboration-thinking, and product-thinking, COOEC has driven technological innovation, for the first time clearly defining three major blueprints for its integrated solutions: product portfolios, technological systems, and industrial chains. The Company successfully delivered national megaprojects such as Haikui No.1and Haiji No.2, and achieved breakthroughs in 20 core technologies, including the cylindrical FPSO and large-capacity TLP floating wind power platforms, while localizing 21 kinds of critical equipment and materials.? Milestones include the delivery of the Deep Sea No.1 Phase-II subsea manifold system (operating at 1,000-meter depths) and the world’s first deepwater subsea automatic pig launcher.
Transform "partial" into "total" to accelerate market-driven momentum. Embracing the dual-circulation development paradigm, COOEC deepened its global footprint through capacity-building and enhanced international influence. In 2024, overseas contract awards exceeded RMB 10.9 billion, with an order backlog of approximately RMB 40 billion and an order-to-revenue ratio of 1.33.? The Company secured overseas projects such as Qatar’s RUYA and Saudi Arabia’s CRPO. Meanwhile, COOEC marked a historic leap by winning the POSCO project through competitive FEED (Front-End Engineering Design), transitioning from a subcontractor to a general contractor, then to a full-scope international EPC contractor.
Pursue "green" and reduce "carbon" to strengthen sustainable development. To implement the Dual Carbon Strategy and high-quality development of new quality productive forces, COOEC embedded ESG principles into daily operations by establishing the Strategy and Sustainable Development Committee of the Board of Directors and a three-tier ESG governance framework.? The Company built three green manufacturing bases (Tianjin, Qingdao, Zhuhai) spanning 3.85 million square meters, institutionalizing green industrial practices to support offshore energy decarbonization. Meanwhile, breakthroughs in clean energy and new energy, such as liquefied natural gas plants, offshore wind power turbine foundations, and waste-to-energy facilities, demonstrate the Company's core competitiveness in this field. In 2024, COOEC earned multiple accolades: ESG Excellent Practice Case of the China Enterprise Reform and Development Research Association, and for the first time, "Xinhua Credit Golden Orchid Cup" ESG Best Practice; and the "Best Practice Case Award" and "ESG Golden Bull Award" for sustainable development for two consecutive years, elevating its ESG brand value.
Empower with "digital intelligence" to actively build "integrated digital-cognitive capabilities". COOEC systematically advanced its "1832" digitalization master plan, establishing a corporate data governance framework and a centralized data asset hub to enable cross-domain data sharing and accelerate intelligent manufacturing.? The Company's Phase II of Tianjin Intelligent Manufacturing Base has doubled its designed production capacity, achieving over 22% improvement in overall production efficiency. The Base was recognized as a National Intelligent Manufacturing Demonstration Factory and won top honors including the First Prize at the 5th "Blooming Cup" 5G Application Competition National Finals.? Digital solutions continue to evolve: the digital twin health management system has been deployed on projects like Haiji No.2 and Lufeng 12-3; the dual engineering delivery-maintenance system completed pilot testing at Caofeidian;? and China’s first subsea pipeline laying information system commenced trial operations, enabling visualized offshore pipelaying and digitalized management.
Enhance "governance" and uphold "compliance" to strengthen risk resilience. COOEC elevated risk management through optimized corporate governance and enhanced control systems.? We pioneered the Corporate Governance Decision Checklist – a groundbreaking initiative that systematically clarifies the authority boundaries and decision-making procedures among governance entities, ensuring seamless coordination and operational synergy across all decision processes. The Company comprehensively optimized its risk management framework by establishing a functional risk database and defining clear risk early-warning indicators, earning an "A" rating in SASAC’s internal control evaluation. The Company achieved dual domestic and international ISO compliance management system certification, marking steady progress toward systematic and standardized compliance governance.
The year 2025 marks a critical juncture for fully implementing the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, concluding the 14th "Five-Year Plan", and drafting the 15th "Five-Year Plan". It is also a decisive year for COOEC to deepen reform and accelerate high-quality development.? COOEC will seize opportunities and leverage new quality productive forces to promote high-quality development and ensure the successful completion of its objectives set for the 14th "Five-Year Plan" period.
Adhere to "strategic empowerment" to chart a sustainable development blueprint.COOEC will conduct a comprehensive review of its achievements made at the 14th "Five-Year Plan" period, identify systemic bottlenecks, and proactively address challenges while capitalizing on emerging opportunities. Guided by the dual goals of enhancing profitability and delivering sustained shareholder value, the Company will scientifically formulate its15th "Five-Year Plan" to steer high-quality development.
Pursue the path of "innovation-driven development" to unleash technological potential. COOEC will leverage domestic industrial chain and supply chain advantages to accelerate breakthroughs in floating and subsea technologies, targeting the establishment of a 1,500-meter-class floating storage system and subsea production technology framework by 2025, while further increasing localization rates of critical equipment.? Concurrently, the Company will strategically invest in frontier R&D projects across future energy, advanced manufacturing, and next-gen connectivity sectors, laying the groundwork for new growth engines and new quality productive forces.
Embrace "lean management" to fuel sustainable entrepreneurship. Guided by strategic objectives, COOEC will advance a four-pillar integration model, namely, business-military synergy, finance-operation alignment, risk-operation fusion, and lean-digital convergence. We will refine its lean management system by harmonizing organizational and project dimensions, synchronizing production and project budgets, and balancing market pricing with target cost control. Resources will be optimized for maximum efficiency through a dynamic production command system that integrates demand forecasting, budget allocation, and resource deployment.
Advance "low-carbon development" to deepen ecological commitment. Under the new development philosophy of "ecological priority and green development", COOEC will leverage its Strategy and Sustainable Development Committee to actively implement the "dual-carbon" strategy, steadily expanding its presence in clean energy markets such as floating wind power, CCS/CCUS, hydrogen energy, offshore PV projects, FLNG, etc. Meanwhile, the Company will continue to deepen carbon footprint statistics and analysis, improve the carbon emission accounting mechanism, accelerate the enhancement of energy utilization efficiency, promote the retrofitting of outdated equipment and upgrading of production processes, and drive an overall reduction in corporate carbon emissions.
Accelerate "digital-intelligence integration" to fortify transformation foundations. COOEC will leverage the C-iTechP digital technology platform as its foundation, accelerating the migration, integration, and functional enhancement of management systems across all levels. By strengthening data consolidation and analytics capabilities, the Company aims to maximize data value extraction and unleash the full potential of data governance, transforming data into a powerful driver for operational and strategic decision-making. Concurrently, the Tianjin Intelligent Manufacturing Base will evolve toward Lighthouse Factory standards, driving comprehensive productivity gains.
Uphold "law-based governance" to reinforce compliance foundations. COOEC will adhere to the core mandate of building a "legally compliant central enterprise", further strengthening its compliance framework. Guided by the principle of "institutionalizing management, streamlining systems into processes, converting processes into standardized forms, and digitizing forms into IT systems", the Company will fully integrate key risk points into its process management system. This ensures compliance mechanisms effectively mitigate risks and safeguard operations, fulfilling their critical role in business sustainability.
A trickle, though small, feeds rivers; a spark, though faint, ignites fields. Currently, COOEC is not only in a period of strategic ascent with tremendous potential, but also at a critical and highly challenging phase of its development journey. The Company will demonstrate the courage to reform, the ambition to strive for excellence, the boldness to pioneer innovations, and the drive to prevail against all odds. With pragmatic responsibility and a commitment to deliver results, we will relentlessly pursue our mission to build a world-class offshore energy engineering company with distinctive Chinese characteristics.
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Chairman of COOEC
Wang Zhangling
Offshore Oil Engineering Co., Ltd. is a listed company controlled by China National Offshore Oil Corporation. It is the only large general contracting company in China with capacities to undertake the design, procurement, construction, offshore installation, commissioning and maintenance of offshore oil and gas development projects, as well as the liquefied natural gas, offshore wind power, refining and chemical projects, etc. It is also one of the largest and the most competitive EPCI (engineering, procurement, construction and installation) contractors of offshore oil and gas projects in the Asia-Pacific region. The Company is headquartered in Binhai New Area, Tianjin. It was listed on Shanghai Stock Exchange (Stock Short Name: COOEC, Stock Symbol: 600583) on February 2002.
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