Comprehensive Overview

The Group is a manufacturer of special petroleum pipes (mainly including petroleum pipes widely used in oil field drilling and completion procedures), which specializes in manufacturing casings. The Group's business includes the development, manufacture and sale of special petroleum pipes and other petroleum pipelines, mainly to Chinese oil companies, special petroleum pipe manufacturers and petroleum pipe processing plants.

According to an insightful consulting report, based on the sales value of special petroleum pipes in fiscal year 2018, the group's market share was about 9.6%; in terms of the sales value of special petroleum pipes for fiscal year 2018, the group ranked sixth among all petroleum pipe manufacturers in China and second among private manufacturers, accounting for a market share of about 7.7% of the petroleum specialty pipe market.

Risk Factors

Most of the group's revenue comes from the sale of special petroleum pipes, which are mainly sold to member companies of one of the three major oil companies in China for use as casings, which are one of the main products of petroleum pipelines supporting the walls of oil and gas wells. The demand for group oil specialty pipes is determined by the capital expenditure of oil companies and oil production, and this is largely determined by the policies of the Chinese government. Factors such as changes in Chinese government policies and market demand for oil may affect the performance of the oil and petroleum management industry, and demand for group products may be affected as a result.