A-share subscription | Keli Co., Ltd. (920088.BJ) opens subscription to focus on research and application in the field of oilfield engineering technology services

The Zhitong Finance App learned that on October 18, Keli Shares (920088.BJ) began subscription. The issuance price was 7.32 yuan/share. The maximum subscription price was 997,500 shares, with a price-earnings ratio of 14.26 times. It belongs to the Beijing Stock Exchange, and Dongguan Securities is its sole sponsor.

According to the prospectus, Keli Co., Ltd. focuses on the research and application of relevant technologies in the field of oilfield engineering technology services, with scientific and technological innovation as the core competitiveness, technological innovation as the continuous driving force, integrating oilfield chemical R&D and production, engineering equipment design and manufacturing. The business covers many technical service fields such as crude oil dehydration, oilfield water treatment, oil production chemistry, oilfield production and efficiency improvement, oil and gas water analysis and testing, and oilfield equipment upgrading.

According to data, Keli Co., Ltd. is in the oil service industry upstream of the oil and gas industry chain, serving the oil and gas exploration and extraction industry. The definition of oilfield technical service standards includes 32 services in 5 major sectors. The company is in the oilfield production service sector.

The oil service industry is located upstream of the energy industry chain and directly provides services for petroleum and natural gas exploration and production. Therefore, the development status of exploration and production upstream of the oil and gas energy industry chain directly determines the development of the oil service industry. The transmission mechanism is: the rise and fall of international crude oil and natural gas prices directly affects the revenue and profits of oil and gas companies, which in turn affects the capital expenditure plans of oil and gas companies. Therefore, the development of the upstream oil and gas industry has a decisive influence on the development of the oil service industry.

According to the “BP World Energy Statistics Yearbook (2023)”, oil consumption accounts for more than 30% of global energy consumption in 2022, and consumption still exceeds that of coal, natural gas and other energy sources. According to BP data, as emerging countries continue to prosper and living standards improve, global energy demand is expected to grow by about 25% in 2025, with oil demand peaking and remaining stable after continuing growth. The dominant position of petroleum energy and strong global demand for petroleum for a long time to come will determine that the corresponding demand for oilfield technology services will also continue to grow.

Changes in upstream oil and gas capital expenditure are an important driving factor affecting the development of the downstream oilfield technology service market. Generally, the total exploration and development expenses of petroleum companies account for about 20-30% of the total exploration and development expenses for oil fields, and the expenditure on oilfield technical services accounts for about 70-80%.

According to information, the funds raised by Keli Co., Ltd. are intended to be used for the following projects after deducting issuance fees:

On the financial side, in 2021, 2022 and 2023, the company achieved operating revenue of approximately RMB 335 million, RMB 447 million and RMB 359 million respectively. The company's net profit was approximately RMB 364.64 million, RMB 50,3018 million, and RMB 54.6154 million, respectively.

It should be noted that the prospectus specifically reminds investors to pay attention to the risk of exchange rate fluctuations. During the reporting period, the company's exchange gains and losses were 3.6920 million yuan, -3.9171 million yuan, -6.1683 million yuan, and 2.3574 million yuan, respectively. Purchases by overseas subsidiaries of the company are mainly settled in Canadian dollars (Canadian currency) and RMB, and sales are mainly in tenge, Canadian dollars and US dollars. The exchange rate fluctuated greatly during the reporting period, and the company's import and export business settled in foreign currency at risk of exchange losses due to fluctuations in foreign currency exchange rates.