HH-- Leader onshore, explorer offshore

集
团
简
介2.5 25 91 134
355 395 539 502
2,336
3,164
4738
1962 1878
3485
5068
0
1000
2000
3000
4000
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6000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenue（MM RMB）
subsidiary in USA
2008 the sole enterprise of CNPC listed on through reorganization
Company history
 Science and technology is the First productive force
 Development is inarguable truth
1998 Developed the First 7000m
mechanical rig of China
2005 The First enterprise in China to successfully sell self-produced
drilling rigs and commenced the large scale of international progress
2012 Successfully designed the First floating drilling rig
package in China.
2006 The First low-temperature tolerant digitally-
controlled rig exported to Russia
2011 First Direct-drive top drive with electromechanical
integration technology
2000 Developed and sold the First DBS drilling rigs in China

50%
Cover an area of about 2,666,000 m2 and has 7,500 employees
100%100%50%
100%
85% 70% 100%80%
Honghua Group Limited
（HK0196）
Egyptian
Honghua
Honghua Russia
Production base of land rigs
and components & parts
Honghua International
（Chengdu ）
Hongtian
（Chengdu ）
Hong teng
（Gansu）
sales
and procurement
Production base of
electronic system
Fracturing and oil
production equipment
Hong Hua-Ukraine
100%
Honghua(China)
Investment Co.,Ltd.
Honghua Golden
Coast (Dubai)
Honghua
Oil & gas
services
Honghua
holdings
100%
85%
Honghua
America
Honghua Offshore
Offshore equipment
production base
Over seas
Sichuan Honghua (Guang han )
100%
100%
Honghua Oil & gas
services（Chegndu）
Oilfield
Engineering Services
Bazhou Honghua Petroleum
Applied Chemistry
structure

Long-term Growth Strategies
Equipment
Manufacture
Oilfield
Engineering
Services
Unconventional
Oil and Gas
Resources
Leverage on technical
advantages to provide
comprehensive
solutions
Synergies from
business
development
Onshore
Offshore
World’s largest
land rig
manufacturer with
an annual production
capacity of 150 sets
Creative “onshore
manufacturing of offshore
platform” with an annual
production capacity of 10
sets upon completion
Provide drilling and
turnkey wells services
for onshore oil and gas
resources
Enter unconventional
oil and gas upstream
field, powered by
equipment sales and
services
5
Creative
Manufac
turing

Global Presence
6
Headquarter
Representative Office / JV Company
Uzbekistan
Indonesia
Pakistan
UAEEgypt
China
Azerbaijan
Kazakhstan
Venezuela
India
Brazil
USA
Russia
Onshore factory Chengdu, China
Honghua Offshore in Jiangsu, China
Production Base and Assembly Factory
Honghua America
Honghua Golden Coast (Dubai)
Established in 2005, covers
an area of 80,000 square
meters, and manages to
assemble 6 drilling rigs
simultaneously
Established in 2006, covers an
area of 18,000 square meters,
and manages to assemble 2
drilling rigs simultaneously
Covers an area of 666,000
square meters with 80,000
square meters of assembly & test
field, and manages to assemble
16 drilling rigs simultaneously
Honghua Russia
 Construction of the JV factory established with OJSC VTB Leasing and Scientific and
Production Corporation Uralvagonzavod, is expected to be completed in 1H2014
Honghua Venezuela
Fully covering drilling
rigs/parts and components
market and expanding to oil
and gas engineering services
from oil and gas equipment
sector
Covers an area of 1,400,000 square
meters, manages to assemble 10
platforms at the simultaneously

Onshore equipment production base-World’s largest land rig manufacturer base - Guanghan
Special electrical machine base New base on instruction -Guanghan
Fracturing and oil production equipment base Honghua Golden Coast -Dubai Egyptian Honghua
Enterprises pictures
Honghua America

Offshore equipment production base-Qidong Jiangsu Province , Operation on October 2012
Enterprises pictures

集
团
概
况
 earthquake relief work
 Financialed nearly amount
of 9 million RMB for
education
Public benefit activities
 Donated more than 20 million
RMB for the education of
Guanghan
 Builded and funded
continuously the Honghua
foreign language school

shallow—drilling depth1,000m（500hp） 9,000m(4,000hp)—deep
Mud
pump
hookwinch swivelTop
drive
Full rang Rig
Products line
Various depth
Important
Parts and
Components
motor
Land Drilling Equipment
AC variable frequency drive rig
arctic rig
Fast move desert rig
helicopter lifted drilling rig cluster well rig
11

Land Drilling Rigs
12
AC/VFD
Drilling Rigs
Super Single
Drilling Rigs
Arctic Rigs
Fast Move Desert
Rigs
Helicopter-Lifted
Rigs
• Digital control
• Low energy
consumption
• Provide automated
and intelligent
drilling platform for
integrated automatic
operation
• Applicable in anti-
explosion area
• Hydraulic single
pipe rigs targeting
at unconventional
oil and gas,
repairing, inclined
shaft and straight-
hole drilling,
slimhole drilling, etc.
• Small footprint , low
transport costs and
high degree of
automation
• Equip with suitable
structural materials
and a full range of
insulation systems
for Alpine
environment
• Applicable in
Siberia and the
Alpine region near
the Arctic and other
harsh
environments
• Shorten moving time
between drilling and
reduce installation
work
• Fully consider the
requirements under
high-temperature
environment at
dessert and Gobi
desert during the
process of design
and provide
supporting facilities
• Effectively reduce the
infrastructure cost of
drilling contractors and
protect the
environment
• Break through the
limits of conventional
hang rigs
• Applicable in drilling
operations in tropical
rain forests, swamps,
Gobi desert and other
harsh environment
Diversified Products and Comprehensive Drilling Equipment Solutions
Sales Volume Breakdown of Drilling Rigs Sold in 1H2013 (28 sets total , by Region)
Europe & Middle Asia
Middle East
South Asia and Southeast Asia
America
China
46.4%
China: 13 Units
25%
Europe & Middle
Asia: 7 Units
21.4%
America:13
Units
3.6%
Middle-east: 1 Unit
3.6%
South Asia and
Southeast Asia: 1 Unit
(By Depth)
68%> 5,000 meters
32%≤ 5,000 meters
Depth Unit
In 1H2013, share of digital-controlled drilling rigs sales reached
100%.

Major Part & Component Business
13
• Simple
structure , low
failure rate and
maintenance
intensity
• Reduce the
transmission
energy loss
• Strong cooling
effect
New Efficient Land Drilling Part & Component Series
DrawworksTop Drive
Fracturing
Pump
• Long service
life
• Drilling pump
performance to
adapt to high
pump
pressure ,
large
displacement
of the drilling
process
requirements
• Reduce the
number of
fracturing pump
• Applicable in
harsh
environment
with long
operating time
• Long operating
time in harsh
environment
• Compatible with
series of
Honghua,
interchangeable
with domestic
and foreign
products
• Loading capacity
up to 90 tons -900
tons
• Adopt band brake
or hydraulic disc
brake as a main
brake ; use
electromagnetic
turbine brake as
auxiliary brake
• Discharge
capacity up to
33% as
compared with
the traditional
five-cylinder
pump; Maximum
working pressure
up to 51.7MPa
• Reduce pump
weight by 50%
Mud Pump Quintuple PumpMotor
Independent Sales
Volume of Mud Pump Sales Volume of Top Drive
(Unit) (Unit)
12
10
2
4
0
2
4
6
8
10
12
14
2012 1H 2013 1H
Supporting Sales Individual Sales
26
40
0
5
10
15
20
25
30
35
40
45
2012 1H 2013 1H
Up 53.8% YoY
In 1H2013, total sales of
mud pumps amounted to
40 units, up 14 units YoY.
Stable sales
In 2013 1H, sales of self-
produced direct top drives
remained stable, recording
supporting sales of 10 sets
and individual sales of 4
sets.

15
• Drill collar
• Drill pipe
• Casing
• Tubing
• Down hole motor
Tubular
• Drill pipe

• BOP Control unit
• Annular BOP
• RAM BOP
• Diverter
BOP & Control Unit

• Chock Manifold
• Kill Manifold
Manifold

• Well head equipment • Down hole tools
• Fishing tools
• Rig floor tool
• Camp
Handling tools

• Fracturing unit
• Road Tractor
• Sand blender • LNG vehicle
Vehicles

• LNG factory
• LNG tank
• LNG
project
LNG

New Products
Top drive series
Hydraulic super
single pipe rigs
Hongteng
3000HP
fracturing
pump trucks
Coiled tubing
smart drilling
rigs
Rack and pinion
drilling rigs
New energy saving
five
cylinder pump
R&D of
New Products
22

Qidong Jiangsu
1.5hour drive
from Shanghai
Location
Honghua
Offshore
Base
Surrounding
area
Seashore
length
1,770m
2,080 mu
(343 acres)
Area
Product
Jack-ups
Semisubmersibles
Fixed platform
Equipment
manufacturers and
contractors
Offshore Equipment Manufacturing
Business (1)
23

Based on 400 feet jack-ups:
 Production cost: lower
by ~20% compared with
current costs in the
market;
 Delivery time: can
shorten it to 15-18
months.
• Developed the 1st
self-developed
jack-up platform
jacking system
and fixation
system in China.
Most competitive offshore equipment manufacturer
Key parts:
lifting system and
fixation system
Various types of
drilling packages:
Jack-up,
semisubmersible
and drilling ships
Electric system
equipment
Innovative
construction model
“onshore
manufacturing of
offshore platform”
has greatly
shortened the
construction cycle
and decreased the
costs
Self-design
“Honghua I”
jack-up platform
and “Honghua I”
semi-
submersible
platform
With EPC
capacity
• Designed
“Honghua 1”
jack-up
platform.
Offshore Equipment Manufacturing
Business (2)
• From 2005-2007，
constructed and sold
more than 10 drilling
packages to clients
（i.e. Conoco and
CNOOC);
• Developed the 1st
deep-sea drilling
package for Tiger
series drilling vessel in
China.
R&D and design
capacity
24

25
Self Elevating Marine Surveillance
Platform（1）
Hull Length: 150.0m Operating Depth: 30.0m
Hull Width: 60.0m The Num. of Legs: 8
Hull Depth: 8.4m Air gaps: 3.0m
Leg Length: 50.0m

26
Self Elevating Marine Surveillance
Platform（2）
 Two 5000 tons Marine Surveillance ships
Berthing at same time;
 2 helicopter landing platform and 4 helicopter
storage space;
 Accommodation with air condition for 300
persons;
 Fresh water processing capacity：200t/day;
 Generating capacity：6600kW;
 Self supportability：120 days

Oil and Gas Engineering Services（1）—
Service Contents
Drilling
Serivces
Cementing/Co
mpletion/Work
over…
Service company specially
focus on providing
professional services like
drilling, drilling fluid,
completion, cementing,
production stimulation
and production
technologyDownhole
Services
Supplementary
Services
• Fishing
• Testing
• Logging
• Coring
• Shallow Well and Deep
Well(6000m+)
• Air and Foam Drilling
• Under-balanced Drilling
(UBD)
• HPHT/High H2S Wells
• Horizontal and Directional
Well
• Cementing
• Casing
• Oil/Gas Surface Testing
• Completion Services
• Workover
• Drilling Camp Construction and
Operation
• Rig Moving and Assembly
Services
• Component Logistics Services
• Drilling Fluid Engineering
Services
• Drilling Equipment/Tool Repair
27

Oil & Gas Engineering Services
1,300
Number of Employees
as at Oct 2013
Approx. 22 teams
Current Drilling
Service Team
Approx. 30 teams
No. of Drilling Fluids
Service Team
Approx. 10 teams
No. of Directional
Well’s Team
Xinjiang,
China
Drilled well
number
11
Iraq
Drilled well
number
3
Inner
Mongolia,
China
Drilled well
number
4
As of the end of October 2013
Northeast
China
Drilled well
number
1
24

Oil & Gas Engineering Services（3）—
Business Development Plan & Progress
Based on innovative
equipment
Powered by drilling
services
Drilling equipment
Fracturing equipment
18 years of experience
Gansu Hongteng acquired
early 2012
Provision
2013
Progress
Drilling Service
Drilling Fluid Service
Fracturing Service
Directional/Horizontal
Drilling Service
Expecting number of teams
to exceed 25
Acquired Bazhou Company,
one of the best water-based
drilling fluid service company
in China, now with over 30
teams with over 10 years of
experience
Boosting proportion of
directional and horizontal
wells drilled
Targeting to launch service in
4th quarter
CONVENTIONAL
UNCONVENTIONAL
Through
cooperation with
international oil
and gas service
companies
Provide complete solution
strategy in preparation for
unconventional field block
exploration
Provide turnkey
well service
29

2. Exploit gas by using gas, use gas fired
power-gen and power grid, pursue flow process
operations and realize large-scale industrial
production
1. Establish substation and
electricity transmission network
ahead
Water, electricity, gas, information and transportation
3. High HP fracturing pumps and flexible
water tanks to enhance efficiency, and
reduce costs and space occupation
4. Promote Distributed Energy Stations
Unconventional Oil and Gas Exploration
Solutions
 Lower fixed asset investment by 10%;
 Improve land-use efficiency by 50-65%;
 Cut down staff headcount by 50-60%;
 Reduce fuel cost by 40-80%;
 Lower total development cost by 10%.
5. Significantly Reduce Development Costs
 Realize joint supply of gas, electricity, heat, coldness and storage, improve utilization efficiency of prime energy and functional stability
 Achieve close utilization of shale gas
 Resolve the problem of pipeline network
30

Unconventional Oil & Gas Business
Featured Equipment
Fully grasp the
opportunity of
unconventional
oil and gas
development
Oil and Gas Service
Resource
Development
180m3 flexible water
tank
• Complete
optimization
design;
• Expect to achieve
sales.
 To explore unconventional oil and gas blocks by
means of contractor/subcontractor or joint bidding
with Baker Hughes starting from project-based
cooperation.
 Provide integrated services from drilling to
fracturing.
 Sales and R&D of featured
equipment
Seek minority equity investment
opportunity in the exploration of high-
quality shale gas blocks and enter
into the upstream area.
Planned cooperation with Baker Hughes:
 Provide operation solutions to
unconventional oil and gas projects;
 Establish an R&D center for
unconventional resource engineering
in 2nd quarter 2013;
 Develop unconventional oil and gas
equipment.
6000HP fracturing
pump
• Complete well site
trials in domestic and
North America in 2013;
• Cultivate potential
clients and keep on
striving for the sales
breakthrough.
Strategic Cooperation Framework
Agreement with Shenhua
 Signed January 2013;
 To carry out long-term
cooperation initiatives in
unconventional natural gas
development, research,
consultation and equipment.
31

HH-- Leader onshore, explorer offshore

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