On July 25th, ZPEC Group held its 2024 Mid-year Work Conference at the ZPEC Shanghai Lin-gang Headquarters, in which the work of the first half of the year was systematically summarized, while comprehensively analyzing the faced situations and arranging key tasks for the second half of the year. The conference called all cadres and employees to fully recognize the urgency and significance of the company's new round of strategic layout and to strengthen confidence, daring to break through and complete the annual target tasks with high quality and an enterprising spirit. Thus striving to achieve new breakthroughs on the journey to becoming a well-known international energy company.

The conference was presided over by ZPEC Senior Vice President Yao Guicheng. The ZPEC Leadership Team, plus cadres and employees from various units at the Lin-gang Headquarters, attended the meeting at the main venue, while overseas subsidiaries participated simultaneously online.

Chairman Zhou Haimin of China Rising Energy International Co., Ltd. first made an analysis and suggestions on the achievements and situation of ZPEC oil and gas exploration and production in the first half of 2024. He pointed out that in the first half of 2024, ZPEC's upstream business achieved a series of new results and the acquisition of new oil and gas projects made significant progress. He hoped that everyone would understand the scientific nature and stage of exploration and production projects and have a clear understanding of the current situation and tasks of each project. Specifically, the senior management personnel and core professional technical personnel of the project should understand the basic logic, mature practices, and cutting-edge technologies of oil and gas field exploration and production work. They should also be able to understand the plan, manage the operation site, strive to become experts, and keep up with the new situation and tasks of the Company's business development.

ZPEC Senior Vice President Ye Jifeng presented a work report on production and operation in the first half of the year. He affirmed the overall business results of the company in the first half of the year, pointing out that, while facing a complex external business environment, the Group's asset scale and revenue scale gradually expanded, benefits were stable and rising, new project development made significant progress, and a solid foundation was laid for ZPEC to achieve leapfrog development. With the efforts of cadres and employees in various sectors and systems, new progress has been made in oil and gas exploration, development, and production. Oilfield production has steadily increased and capacity construction has been steadily advanced. The drilling engineering sector has repeatedly had bright spots and the oilfield service product lines have been gradually improved. The Equipment Group's intelligent products, special vehicle research and development projects, and drilling rig sales performance were good. In terms of internal management, performance reform, team building, scientific and technological research and development, crude oil sales, risk control, institutional reform, and external cooperation have all achieved gratifying results. He analyzed the main problems and lessons learned in the current work, commented on the difficulties and challenges faced by each sector, and emphasized that international oil prices were expected to continue to operate at a high level in the second half of the year, resulting in the stable demand for oilfield services with fierce competition. Although the domestic economic situation is not optimistic, the development of the Company's three major business sectors is unbalanced, ZPEC has the ability to develop rapidly within a certain scale range and the overall situation of production and operation in the second half of the year continues to be good. He required all units to closely monitor the various production and operation indicators issued by the Group and to take strong measures to resolutely complete the annual task. For the key work in the second half of the year, he emphasized that the first item was to complete the contract negotiations and contract signing work of the two bidding oilfields in Iraq. The second item was the oilfield sector should organize production scientifically and rationally, and strive to complete the annual reserves, production, and capacity targets. The third was the engineering sector should improve its profitability and efficiency level. The fourth was the Equipment Group should make breakthroughs in the development of intelligent products, market development, and cost control. The fifth is to strengthen scientific research work and to pay attention to the use of new technologies and new processes. The sixth item is to accelerate the construction of digital transformation work. In addition, he also made specific arrangements for safety management, financing optimization, crude oil sales, talent team building, mechanism innovation, external cooperation, and risk control.

Finally, ZPEC Chairman Li Chundi gave a speech in which he pointed out that looking at the overall situation of the Group from a strategic and historical development perspective, the overall situation of the Company in the first half of the year can be described as "the scenery is particularly good here", and the leap is commendable. Especially the two oilfields won in Iraq would lay a resource foundation for the stable development of the Company for decades to come. He hoped that the cadres and employees of the Drilling Engineering and the Equipment Manufacturing sectors would strive to be enterprising, dare to take responsibility, and take the determination to attack the fortress to resolutely complete the annual work deployment, and then be in a position to wholeheartedly welcome the greater challenges after 2025 according to the Group's plan. The Chairman analyzed the strategic positioning of the Company, emphasizing that "we want to stand on the international stage, become a fast, efficient, low-cost, short decision-making chain, flexible operation mechanism, small and beautiful, small and strong international energy company, and in management, create a unique model different from other oil companies. After several years of practice, our cost advantages and management advantages have been highlighted, and we are not inferior to international well-known peers in competition, and we must have confidence in this." For the short board issues faced by each sector under the new situation, the Chairman pointed out that in the face of the Company's rapid development and scale expansion, we still have a lot of work to do in management improvement and talent preparation. The first is to further change the extensive and traditional management methods and to excavate and reflect the benefits through refinement. The second is to introduce and cultivate professional talents in exploration and production, especially young and middle-aged talents, to prepare for the development of talents, and at the same time to do a good job in digitalization and intelligence. The third is to improve the training mechanism, on the one hand, to train in universities, on the other hand, to organize training by ourselves, to have an overall plan, to speed up, to create more capable and explosive leaders, and to help the younger generation grow up as soon as possible. Finally, he encouraged all cadres and employees to improve their overall awareness and cognitive level, to establish a long-term vision and breakthrough thinking, to take the spirit of daring to fight and dare to fight, to break through traditions, to let go and do it, to devote themselves to the thriving ZPEC business, and to create a better future for the Company together.

At the meeting, ZPEC Senior Vice President Yao Guicheng reported on the preliminary assessment of the Group's operations in the first half of 2024 and made arrangements for the implementation of the conference deployment. (Text by Yang Hongmin, Photo by Qu Qilei)"