Yantai Jereh Oilfield Services Group Co., Ltd. 2025 Board of Directors Work Report
In 2025, the Board of Directors of Yantai Jereh Oilfield Services Group Co., Ltd. (hereinafter referred to as "Jereh Co., Ltd." or "the Company") strictly abided by the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange Stock Listing Rules," "Shenzhen Stock Exchange Main Board Listed Company Governance Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," "Articles of Association," and "Board of Directors Meeting Rules," as well as other laws, regulations, normative documents, and requirements from regulatory authorities. The Board diligently performed its duties, conscientiously fulfilled its responsibilities, safeguarded the company's interests, standardized corporate operations, made scientific decisions, and actively promoted the company's key work plan for the year in accordance with the company's established development strategy. The following is the report on the work of the company's Board of Directors in 2025:
I. Company Operational Situation
In 2025, Jereh Co., Ltd. achieved operating revenue of RMB 16.223 billion, a year-on-year increase of 21.48%; net profit attributable to shareholders of the listed company was RMB 2.680 billion, a year-on-year increase of 2.03%; net cash flow from operating activities was RMB 5.378 billion, a year-on-year increase of 107.37%. The weighted average return on equity was 12.15%. As of December 31, 2025, the company's total assets were RMB 39.130 billion, and net assets were RMB 23.026 billion.
II. Board of Directors' Daily Work
(I) Board of Directors Meetings
Throughout the year, all directors conscientiously and diligently fulfilled their duties. In 2025, the Board of Directors held 11 meetings and reviewed 85 proposals. The meetings were held with advance notice, through communication and in-person formats, in accordance with the "Company Law of the People's Republic of China," "Shenzhen Stock Exchange Stock Listing Rules," and the "Articles of Association." All attending directors carefully reviewed the relevant proposals before the meetings, actively expressed their opinions during the meetings, and treated all resolutions rigorously.
The Board of Directors meetings in 2025 were as follows:
- The 21st meeting of the Sixth Board of Directors was held on April 8, 2025, and the following proposals were reviewed and approved: (1) Reviewed and approved the "2024 President's Work Report." (2) Reviewed and approved the "2024 Board of Directors Work Report." (3) Reviewed and approved the "2024 Annual Report and Summary." (4) Reviewed and approved the "Proposal on the 2024 Profit Distribution and Capital Reserve to Share Capital Transfer Plan and the 2025 Interim Cash Dividend Plan." (5) Reviewed and approved the "2024 Internal Control Self-Evaluation Report." (6) Reviewed and approved the "2024 Environmental, Social, and Governance (ESG) Report." (7) Reviewed and approved the "Special Report on the Fund Raising and Use of Funds in 2024." (8) Reviewed and approved the "Evaluation Report on the Performance of the Accounting Firm in 2024 and the Report on the Audit Committee's Supervision of the Accounting Firm's Performance." (9) Reviewed and approved the "Proposal on Re-appointing the Accounting Firm." (10) Reviewed the "Proposal on the 2025 Director Remuneration Plan." (11) Reviewed and approved the "Proposal on the 2025 Senior Management Remuneration Plan." (12) Reviewed and approved the "Proposal on the Company and its Subsidiaries Applying for Comprehensive Credit Line and Providing Guarantees from Banks." (13) Reviewed and approved the "Proposal on Engaging in Foreign Exchange Hedging Business." (14) Reviewed and approved the "Proposal on Engaging in Asset Pool Business." (15) Reviewed and approved the "Proposal on Providing Guarantees for Customers of the Company and its Subsidiaries in Sales Business." (16) Reviewed and approved the "Proposal on Formulating the 'Public Opinion Management System'." (17) Reviewed the "Proposal on Purchasing Directors' and Supervisors' Liability Insurance." (18) Reviewed and approved the "Proposal on Using Part of the Raised Funds to Temporarily Supplement Working Capital." (19) Reviewed and approved the "Proposal on Convening the 2024 Annual General Meeting of Shareholders."