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Good morning and good afternoon everyone, welcome to our results announcement via phone run as well as web today. We have a translator online as well, I will leave sufficient time for the translator to do her job.
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First of all, I would like to introduce our participants from coastal side. First of all, Mr. Qi Meisheng, Chairman of the Board and Executive Director.
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Mr. Cao Shujie, Chief Executive Officer and the President.
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Mr. Zheng Yonggang, our Chief Financial Officer.
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I am Wu Yanyan, the Board Secretary.
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Last night we published our annual report and we did a very good job last year in 2019. We received great support and concerns from our investors and analysts ever since we got listed. We have been maintaining very good communication with all the investors and analysts. Because of some special considerations now, and in order to respond to the requirements from the supervisors, the board and the management have decided to have the results announcement done through web and through phone line.
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We published notice of the meeting beforehand and we collected questions widely before the meeting. The questions will be discussed during the Q&A session. Again, thank you for your attendance and attention.
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Well, the flow will be like this: our Chief Financial Officer, Mr. Zheng Yonggang, will walk you through the presentation of our business performance. After that, we will open the floor for questions, and the management will be happy to take questions. First of all, from the online, the phone line, and then from the web.
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Now let's welcome Mr. Zheng Yonggang to report to you on the business performance of COSL in 2019. Mr. Zheng, please.
[Non-English content] 。Good morning, ladies and gentlemen, thank for attending COSL's Annual Results Press Conference 2019. Please take note of our disclaimer. Today's presentation will be divided into two parts. First is 2019 results overview. Let's review the developments from oil and gas industry. As we all know, the oil price continued to fluctuate throughout 2019. Showing a downward trend, the average Brent price was around $64 per bbl, decreasing 10% compared to the 2018. The average WTI price was around $57 per bbl. According to the IHS report, the total global CapEx for upstream oil and gas exploration and development continued to increase in 2019, increasing approximately 8% compared to the 2018. However, there is no fundamental improvement in the oversupply situation in the oilfield service industry, which is still under great pressure.
Encountering severe industry environment under competitive pressure, during this period, COSL actively seized market opportunity of recovery of domestic and overseas demand for exploration and development, and strengthened the strategy of technological and international development. The company's quality operation service received recognition from customers. Equipment operation and maintenance management capability has been greatly improved. With constant increase in proportion of revenue of the technology segment, while the profitability has been significantly improved. Meanwhile, decent business governance is highly recognized in the capital markets. The operating revenue increased by 32% year-on-year to CNY 31 billion. Net profit increased by CNY 2.44 billion year-on-year to CNY 2.53 billion. The growth rate of revenue was significantly higher than that of international large drilling and oilfield service companies. In terms of business segment, the workload of 4 segments increased to different extent.
Since the sharp decline of oil price and the downturn of the industry in 2016, the COSL has achieved the best year in terms of profitability and operating efficiency, and the revenue contribution of well service increased to 48%. Looking around the global industry, we are also pleased to find our equipment strength ranks in the forefront of the industry, and the scale of drilling rigs ranks the second in the world. The marine support market share is the third largest, and the workload geophysical contract is the fourth largest in the world. Specifically, operating days of the drilling segment increased by 32% year-on-year, and the revenue for the period amounted to CNY 10.84 billion, increased nearly 40% as compared to the 2018.
The well service segment continued to increase investment in scientific research and technological innovation, with its competitive advantage emerging and the operating results reaching a record high. Revenue for the period amounted to CNY 15.06 billion, increased 53% over 2018. Revenue from marine support increased by 13% year-on-year to CNY 3 billion. The utilization rate of the self-owned fleet was 94%, representing a year-on-year increase of 4 percentage points. Revenue from geophysical and survey segment increased by 31% to CNY 2.17 billion as compared to the 2018. The company explored the market and obtained the collection contract in Canada, Namibia, Argentina, and Brazil. Let's move on the performance of COSL's industry transformation. With increased number of tender and bidding activity, utilization rate of drilling rigs also improved gradually.
However, oversupply or production capacity still exist in the medium and the short terms. Dayrates are unlikely to see a rise in the near term. As the above graph shows, the utilization rate of the COSL's equipment segment for the average level of 2019 were better than those of international levels. Let's move on to overall domestic market condition. COSL monitors the demand of the onshore core customers, effectively transfer the achievement of independent R&D, reduce the proportion of subcontracting, and maintain or increase the market share. At the same time, by practicing the concept of green development, all 12 LNG-powered oil field supply vessels has commenced construction. Through the flexible allocation of resources, COSL satisfied the increase in domestic demand and the background of the increasing effort in oil and gas E&P.
In the overseas market in 2019, the company made the effort to promote the construction of six overseas branches with large output contribution and optimize the equipment allocation to improve profitability. COSL entered into 84 new overseas contract with a total amount of over $1 billion , achieving new breakthrough in new regions and customers. In particular, Asia-Pacific, Middle East, and the Far East as important achievement of COSL's international market expansion in 2019. In 2019, in order to meet the technical needs of different stage, such as exploration, development, and production, COSL continues to increase its effort in scientific research, constantly breaks through bottlenecks in technological development and accelerates the transformation of scientific and the technological achievement. Next, I will introduce two representative technology. In 2019, as the Drilling-Edge, our geosteering technology is the first self-developed and commercialized Drilling-Edge tool in China.
Its performance has reached the advanced level in the industry, providing solid technical support for stable production increase, and cost reduction development of oil fields. Next one, FlatPro drilling fluid, which successfully solved technical problems such as deep water, low temperature, fluidity variation, and gas damage, effectively facilitating deepwater safety and efficient drilling, and providing technical support for subsequent market expansion. The company has always adhered the concept of safety first and carried out in-depth hidden danger investigation and emergency management. The OSHA indicator for the year was 0.11. Excellent quality and safety management performance is an important foundation to ensure internationalization of COSL. Meanwhile, COSL concerned about energy saving and environmental protection issues. We actively made charitable contribution and co-host the safety culture events with clients.
Here is the capital market honors that the company has received during the past year. The company has won a number of awards, including Outstanding Scientific and Technological Innovation and Prize, One of the Best Innovative Public Company, and the Board of Director Value Creation Prize. In the next part, I would like to share with you the outlook of COSL. First, let's look at the latest development in the oil and gas industry. According to the third-party reports, we can see the global supply and demand of crude oil are changing in 2020. Oil price remain on a downward trend. Rystad Energy forecast that if oil price stay around CNY 30 per bbl, the global CapEx of E&P company alone may fall by CNY 100 billion in 2020.
Excessive supply of crude oil and fluctuation in oil price will bring uncertainty to the industry. Our company will constantly strengthen its modern operation and management and risk resistance. Oil and gas continue to play an important role in China energy consumption structure. In 2020, China will continue to increase exploration development to ensure energy security. CNOOC Limited is our key customer, and its CapEx in 2020 is estimated to range from CNY 85 billion-CNY 95 billion, representing an increase 6%-18% as compared to the estimated amount in 2019.
In 2020, CNOOC Limited will continue to increase its effort in oil and gas exploration and provide the company with potential workloads in the current and future. As you know, yesterday, the WTI price is around $24 and the Brent price is around $30. The low oil price brings a huge pressure on the oil and gas company, including CNOOC Limited. In yesterday's conference call, Xu Keqiang said CNOOC Limited will cut down the CapEx. We don't know whether it take place in the overseas market or it's in the local market. It took place in the overseas market, the impact on COSL will be little. If it took place in the China market, China offshore, it will bring the big impact on COSL, but we don't know where it take place. Until now, we didn't receive any notice about cancellation of project.
It's true, it's some delay, but delay is due to the outbreak of virus. Benefiting from this, it's expected domestic workload of COSL will increase by different degree in 2020. Based on the above information, COSL will focus on five aspects, including driven by innovation growth, overseas expansion, low carbon development, market-oriented operation, and boosting prosperity with talents to build seven capabilities, and will also focus on four major business segments to realize the strategy of goals of technological and international development, with aim to gradually develop the company into the integrated oilfield service provider with multiple energy sector coverage and international competitiveness. Next, I will elaborate the development of the company in several aspects. COSL will break through the technological bottleneck and improve the capacity for applying research results to production through multiple ways.
According to the needs of customer, we will continue to create high-tech products and highlight the high-tech value by innovating the model for attracting talents, making good use of existing talent attracting policy, and focus on the internal talent cultivation. In terms of technological innovation, we will comprehensively accelerate high temperature logging, small size and high-end directional well drilling, deep water, high temperature and high pressure drilling, and seek oil development in 2020. In the next few years, COSL will continue to raise the contribution of the technology sector, constantly accelerates the serialization and the industrialization of technology and products, and accelerates the commercialization of research finding to enhance the contribution rate of the technology segment. Going forward, let's take a look at domestic market.
Our current core market is the offshore market in China. CNOOC is our offshore core customer in China, which is one of our unique advantages. In the current market environment, we will flexibly adjust our business models to provide efficient and high-quality services to reinforce COSL's leading position in China offshore market. First, let's look at the operation of domestic rigs. The slide illustrates the domestic contract status and the situation of 31 jack-up rigs and 10 semisubs. It may change in the future because some contracts are still in progress. We will keep you posted.
In order to promote international development more efficiently, the company, based on the customer needs and the market condition in each region, has proposed pertinent measures and gradually giving play to the size effect of the overseas market to further enhance the contribution of the technology sector and expand the size of key markets such as Europe, Africa, and the Middle East. If the oil price remain low for the long time, oil company may reduce capital expenditure and suspend or cancel the operation. The oilfield services industry will face increasing uncertainty. In view of this, COSL will enhance customer communication, learn the workload and development plan of customers, seek opportunities for overseas operations. Look at the operation status of our rig in the overseas market of nine jack-up and four semisubs. It may also change in future because some contracts are still in progress.
COSL's adequate cash flow, effective financing channels, lower financing cost, and good rating allow it to operate in various modes in a more flexible manner in the general environment of oil price downturn. In 2020, to meet increasing domestic investment in exploration and development, COSL will keep optimizing asset and increasing input in technology R&D. CapEx in 2020 is estimated at approximately CNY 4.8 billion. There has been great change in the recent international macroeconomic situation and the price of bulk commodity and bring new challenge to the company. COSL will focus to transfer its cost advantage into its core competitiveness, along with technological and international development goals. The company, by virtue of its unique integration advantage, sound financial structure, and extensive management and operation team, will deliver higher value and return to our shareholders, customers, and all walks life. Thank you for your consistent support.
Here comes the end of my presentation. Question are welcome, please. Thank you.
Thank you, Mr. Zheng, for your presentation. Now, I would like to open the floor for questions. Since we have investors and analysts both phone line and web, we would like to invite investors from phone line to put up questions first. After that, we will take questions from the web. For the interest of time, two questions maximum per person each time. Please identify yourself before you ask the question, as well as the organization that you are from. All the questions and answers will be translated consecutively. Thank you.
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Now I would like to invite the first question. Just a reminder, there will be translation, so please leave sufficient time for the translator. Thank you.
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This is Mr. Yang from Orient Securities. Two questions. The first question is about price. Can you please share with us what is the day rate and the day revenue of your rigs now? Are they influenced by the oil price? Because oil price has been dropping recently. If there's a drop, how much is it? The second question is about workload. Looking at your backlog, do you see any defer or any defaults in your backlog? Because oil price has been dropping and it is very low. Do you see any possibilities that your CapEx this year will also reduce accordingly? If it is reduced, how do you see the upcoming workload in 2020? Thank you.
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OK, thank you. [Non-English content ] Thank you for your questions. Your first question is about price, whether price has also been dropping. I just want to remind you to look at the market. Actually, it happened not long ago that the oil price began to drop. Such a drop has not yet passed to our daily business, because if you look at our investments, if you look at the response from the market, such a price drop has not yet fully passed to us or to the market. Far in Q1, if you look at the contracts that are already under execution, we haven't seen any price drop yet. That is your first question. The second question is about the workload.
The capacity that we own by ourselves are fully utilized right now and in the near future, we don't see the possibility for such a self-owned capacity to pass the pressure to our other business. Globally, whether our contract will be influenced or not, whether there's any termination or any changes regarding our backlog. Domestically, we don't see any change so far on our backlogs. Externally, there is one particular client. This is a very extreme case, actually. This is a client on the overseas market who already expressed the intention for either terminating or suspending the contract. It is still under discussion. This, as I said, is a very extreme case, and we don't see this phenomenon happening to all the other external markets yet.
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Your other question is about the oil price being low and still dropping. What will be the changes possibly in the future regarding our workload? Actually, we have not seen any sign that the oil price will go up again in the near future, and we believe that the oil price will be maintained at a low level for a very long time. Definitely, this will represent very big difficulties for all the oil and gas companies, and perhaps a lot of them cannot survive. Therefore we expect that in the market there will be major changes that will happen very soon. For the oil service industry, definitely it will take some time, but the influence will be coming. If you look at our own four business sectors, the first sector that will have to face such impact will be the geophysical and engineering service sector.
Our marine service won't be influenced very large in the future because of the low price. Regarding our workload, we will see that there will be a major drop in terms of our workload in the coming days in the future.
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However, the company, the management, is still full of confidence regarding our future growth because of two reasons. The first one is in 2014, there was a major oil price drop. However after that, the company managed to weather through all the difficulties in the market and now has already grown ourselves into one of the best performers in the industry. That is to say, we are competitive in the market. The second reason is China's element. The domestic market is still the most active one in the world in terms of exploration and engineering surveys.
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I hope I have answered your questions.
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This is Yiming Wang from Merrill Securities, two questions. First of all, congratulations on your good performance in 2019. The first question is about your Seven-Year Plan. I saw that you attended the group meeting not long ago. That is at the group level. Do you have any new guidelines regarding the Seven-Year Plan? Do you still think that the Seven-Year Plan is a major part from the group, considering the oil price changes recently? Also the CapEx, as you said, may drop seriously this year. Since you have already chartered some vessels from the group, do you think that the group is going to provide subsidies in order to compensate for the past months in 2020? This is the first question. The second question is about the cost.
Again, because of the oil prices drop, do you see any possibilities of taking measures to reduce the cost internally? Because I have noticed that in 2019, the operating cost is 19% as compared to 16% in the previous year. Do you see any possibilities to reduce the operating cost this year? Thank you.
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Thank you for your good words on our performance in 2019. Two questions from me. I would like to take the first one and Mr. Cao Shujie, my colleague, is going to take the second question. Regarding your first question about the Five-Year Plan, because of the oil price has been dropping, whether we are going to adjust the Five-Year Plan at the CNOOC level. Well, my answer is, in my understanding, such a Five-Year Plan or Seven-Year Plan is a serious commitment from the group to the government and to the country. It's a strategic commitment. No matter how the oil price changes, upward or downward, this won't change our commitment to the government or to the country. In the long run, the strategy or the Seven-Year Plan will continue.
Of course, the oil price has been going, and there's possibility for the group to fine-tune some of the details in the Seven-Year Action Plan. For example, some low efficiency activities may be reduced because of the low oil price. In the long run, this strategy, this commitment will never change.
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Let me continue answering your first question. As I said that we're going to reduce the CapEx this year, do we see any risks involved because of a lot of charges, rigs and vessels? What I want to clarify is that because in the early years, we captured the opportunities of over surplus of major equipment in the market and established contract with the rig owners and the vessel owners in the risk sharing model. That is to say, if the contract is over, we don't have to pay any rental for the rigs or for the vessels. In this case, it won't be any major risk for us.
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I just want to add one more thing. For all the rigs that we have charges, about 20 or some, all the contracts were entered. At the early stage, it is the midterm contract. At the later stage, most of the contracts that were entered recently are based on back-to-back model. In this way, the oil price, no matter how low it is, won't represent any risk for us.
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Mr. Cao Shujie is going to take your second question.
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Your second question is about the cost, whether they find the possibility for us to reduce the outsourcing cost. For a long time, the cost has been a major focus in our day-to-day operations. Our goal is to maintain the low cost competitiveness in the market. That's why we set up the working groups, trying to control all the expenses and expenditures stringently. We conducted the repairs and the maintenance by ourselves. We worked hard to improve the utilization rate of all the equipment. Meanwhile, we also take stringent measures in the procurement in order to further reduce the cost. Meanwhile, we also worked hard on R&D and have adopted a lot of technologies to further reduce the cost internally.
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Regarding the outsourcing, actually there are two scenarios. Number one is about equipment. We charter equipment from the market depending on different price level, because there have been price fluctuations in the market all the time. We charter the equipment from the market. This is the first part of outsourcing. The second part is about the high-end technologies. We believe that through our own R&D activities and more self-owned technologies being developed and adopted, there will be less technologies from external through outsourcing. This will be the trend in the long run. According to the price fluctuation in the market, when we decide to charter more or less equipment from the market. Meanwhile, we are also working very hard trying to develop and apply more of our own technologies in the future. Thank you.
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Let me add one more thing regarding the outsourcing cost. I just want to remind all the investors and analysts to look at outsourcing this matter. It's just like two sides of a coin. First of all, the outsourcing is a way for us to create more value and this is where we see potential for us to create more value in the future through outsourcing instead of buying or building by ourselves. Secondly, outsourcing is also a very important measure for us to mitigate risks because of the different cycles in different sectors and also industries. This is a very important measure we've taken to counter the risks because of the cycles in the industry. Thank you.
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That's all for the questions. Thank you.
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This is Andy Meng from Morgan Stanley. Two questions. The first question. We noticed that the well services is now almost 50% of the total business revenue. I just want to understand what is the competition situation in the domestic market. If the cost continues to go down, do you think that you can find more service providers to do the job for you? That is the well services. The second question is about the drilling. In 2016, the drilling business was very big, later when the market had changes and there was a profit loss and profit actually dropped down sharply. What is the drilling situation now? Do you think that it will repeat what happened in the past, the fixed cost is already very big, if any changes in the market, the profit or the revenue will also drop sharply in the future?
Thank you.
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Thank you for your questions. Your first question is about the well service sector. Yes, you are right. As you may have noticed in our announcement we published last night. In the year 2019, our services almost had 50% of our total business or total revenue. In the well service sector, it contains the well technologies, well chemicals and the well production. In the first two sub-sectors, that is well technologies and the well chemicals, we are very, very confident. So far, at least in the near future, we haven't seen and we won't see any competitor who has got high technology. Meanwhile, very low cost technologies or performance that is very high performance price ratio. That's why in these two sub-sectors, we are very, very competitive and we are very confident.
Regarding the oil production, what we are doing right now is on the one hand, we enhance our efforts of cooperation with the forward leaders in the industry in R&D. We also trying to develop as many as possible by ourselves. Because of this, the oil production sector, it is not yet finalized how the market looks like in China, because there are a lot of competitors, yet it is a sunrise sector. Therefore we will devote ourselves fully to compete in the market and try to establish ourselves well in this market sector.
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Let me continue with this question. We also noticed that recently a lot of players that have been operating onshore are now also trying to move to offshore. Through these years of business growth, we have also noticed that the production process, the technologies, the equipment onshore are not that fully suitable for offshore operations considering the compact space and the capacity if you operate on the rig. That's why I can tell you that the onshore competitors, they have the production process, the equipment and the technologies that are suitable for onshore but not that suitable for offshore.
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Let me answer your second question. Whether there will be a major up and down in our technology sector, just as what had happened to the drilling sector? It is exactly because we have already seen the major changes in the market in 2014 that oil price dropped sharply. We realized that we were very weak in terms of equipment and technology. That's why we decided to make major strategic adjustments and restructuring, trying to enhance our own capabilities in terms of equipment and technologies. We tried very hard to keep improving this sector. In the past few years, our technology sector has been growing very, very fast and now it is almost half of our business. The advantage of our technology sector is exactly that it is not a heavy asset sector, it is a light asset sector.
By relying on the technology, we have been able to win the market and realize the faster growth. It is because of our strategic adjustments several years ago. Of course, it is also because of its own strength that it has been able to grow very, very well in the past few years.
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Let me add one more thing. You are all investors and analysts, and you must have already known the oilfield services industry very well globally. In the past several years, while the industry was in a very sluggish phase, there were a lot of M&As, a lot of closures, and a lot of bankruptcies. That is for the equipment sector, not for the technology sector. The technology is better at mitigating risk. Actually you can't fund money just like a portfolio, which is a growing technology and equipment in a very balanced manner in order to mitigate the risks. This is why we did a very good job last year, and this is also where we have got confidence on our long term growth for the whole company.
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That's my answer to your question. I hope I have answered your questions.
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Mr.Mu from JPMorgan, two questions. The first question is still about CapEx. We noticed that in your annual report and in your PowerPoint, you both mentioned about the CapEx from the Sinopec point of view, from the international market point of view.
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Suppose that the oil price maintains very low, stay below $40 per bbl this year, or a little bit above $40 next year. How do you see the CapEx for the company? What will be the CapEx changes regarding your oil service etc.? The second question is, what do you think about the impact to your own CapEx or cash flow considering the oil price and market situation now? Thank you.
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Your first question will be taken by Mr. Cao, our Chief Executive Officer, and Mr. Zheng, our Chief Financial Officer, will taking the second question.
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Let me take your first question about the CapEx. Domestically, the CapEx, officially they saying that they are going to reduce the CapEx, but it is not clear how much is going to be reduced. Actually there are two parts regarding CapEx, the overseas part and the domestic part. Domestically, I believe that we are going to follow the schedule last year and according to the plan, our workload won't change a lot. Regarding the overseas sector, we will just follow what is already planned because our workload for the overseas part is not big, so we don't think there's a major change for us as well.
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If you look our business, in addition to our own business for COSCO, we have other overseas business, which is not part of Sinopec, it's our own overseas business. We will look at the market situation and adjust our own pace accordingly. Thank you.
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Let me take your second question. First of all, CapEx. Our CapEx for 2020 is CNY 480 million increased than 2019.
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There are three areas that we increase our CapEx. The first area is R&D on technologies. You may have noticed that from 2016 to 2020, our investments in R&D has been increasing year by year.
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The second area that we increase our CapEx is on the environmental protection, be it the LNG powered vessels or the disposal handling, we will definitely invest more on this area.
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The third area that will increase our investments is on the chartered rig or equipment, for example, the renovation. Depending on what are the requirements from a specific project, we will also increase such investment.
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Far all the equipment renovations are undergoing properly.
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Your second part of the question is about the cash flow. We are holding sufficient cash flow in hand. If you look at your annual report by the end of last year, we are holding CNY 10.3 billion cash flow.
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For 2020 this year, we have new plans of paying back what is as well as issuing new debts. These are our plans. If we follow the plan by the end of this year, we will continue to have sufficient cash in hand and maintain a very healthy and stable financial position.
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Thank you.
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Ladies and gentlemen, this is the end of our teleconference. Thank you very much.
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Thank you all very much. All the analysts and all the investors and friends. Thank you.
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Thank you. Just now we were able to answer some of the questions from our investors and analysts through the phone lines. As I said, we also opened the web for interaction. After publishing the notice of the meeting, we were able to collect some other questions from our investors as well from the web.
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Most of the questions we collected through the emails or through the web are actually covered already in our discussions just now. For example, the Seven-Year Plan, whether there will be any change regarding the Seven-Year Plan and CapEx questions, for example, CapEx for CNOOC and CapEx for COSL, whether there will be any change. Basically these questions are already answered and we will not repeat these questions.
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Questions like the net profit, the business revenue growth for the technology sector, why this is such a growth and so forth. These questions were also covered. There's a question which is not touched yet. I would like to ask the management to elaborate a little bit more here. The question is about the offshore wind power in 2019.
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Well, I'll be happy to share with you more information about the offshore wind power project for the company. In 2019, we realized about CNY 100 million revenue through our offshore wind power project.
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The reason why the revenue was only CNY 100 million, almost CNY 100 million, it's not a big number, is because that we had limited capacity when we were involved into the offshore wind power generation project.
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Therefore, in 2020, if you look at our business plan for this year, we will definitely try our best to capture the window of the offshore wind power business, particularly in summertime, because that will be the peak of the offshore wind power generation. This year, we will invest more resources into the capacity building. Meanwhile, we will also be actively looking for business partners because we have our own technology and operations advantage for the offshore part. We will try to work together with the equipment manufacturers and set up a cooperation in order to increase our capacity.
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Actually, this is a very seasonal industry, and we understand that the total window for operations is about six months, that is before and after summer.
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Internally, we also analyzed our own strengths and weakness. What we are strong at are the installations as well as the technical analysis. What we are weak at is the equipment production capacity.
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That's why we are trying to balance how to grow this new business sector for us. Because if we increase our capacity too big, basically you have to stop production for half a year. We are trying to reach a balance at this moment.
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That's why we have to realize the growth through the way of working with two legs. On the one hand, we will enhance our own capacity to a limited extent. Meanwhile, we will try to look for a business partner so that we can increase the capacity in a joint method.
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That's all. Thank you.
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Thank you all for your questions. I believe that there are still some questions that are not answered yet. However, we have already overrun than our scheduled time and there is a press conference very soon. I hope that we can find other ways to keep communicating with you and try to answer all your questions accordingly. Thank you.
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Just a reminder, yesterday CNOOC gave out its results announcement. When they talked about the CapEx, they used the word adjust, not the word cut. If you want to understand more about the CapEx from CNOOC, please pay a visit to their official website.
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Dear investors and analysts, thank you very much for the exchanges. I believe that through our presentation and taking the questions, I believe that you have already got a better idea what measures the company has taken, and you must have a better understanding of our business and more confidence on our business growth. Meanwhile, we are able to understand what are the areas that investors concern more and particularly with such a low oil price situation in the market. I believe that we will continue with our communications with all of you in the near future. Before we finish, I wish a successful career for all of you and good health for all of you and your families. Thank you.
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This is the end of the results announcement. Thank you and goodbye.