Case Solution To YJ Ltd ——By Rainbow Girls

Overview Prioritization And Identification Discussion And Recommendation Ethical IssueConclusion Ⅰ Ⅱ Ⅲ Ⅴ Ⅳ 1 Caution Innovation Responsibility Nature Issue Orientation Way Philosophy Ltd., IPO, E&P, MNC  Internal crisis  External impact Unconventional energy  The hard power  The soft power

Overview Prioritization And Identification Discussion And Recommendation Ethical Issue Conclusion Ⅰ Ⅱ Ⅲ Ⅴ Ⅳ 2

Overview Prioritization And Identification Discussion And Recommendation Ethical IssueConclusion Ⅰ Ⅱ Ⅲ Ⅴ Ⅳ 3 Operating Capacity Profitability Solvency Considerable liquidity Short-term solvency is stable Financial stability Long-term solvency is enhancement Grow fast A good development space Strengthening market Competitiveness grow faster Growth potential Great changes and risk shares Issue1 License application results Analysis1. The financial indicators in 2014

Issue1 License application results Analysis2 EVA Strong profitability Great development potential Higher capital efficiency Quality of development 3 Discussion And Recommendation NoYes Low cost of capital constraints Constrained capital cost : clear accountability Inaccurate performance appraisalVS EVA bonus ： higher staff motivation Blind expansion Strong business value drivers: high efficiency of the decision-making

Issue1 License application results Analysis3 Cash forecast in 31, March Discussion And Recommendation GGGEEEFFFTotal Cost ： 93.8 Cash flow

Issue1 License application results Analysis3 Cash forecast in 31, March Discussion And Recommendation Conclusion Other Issues Recommendation The worry of interests &The expectation of shareholders A discount to some extent when new shares release The forecast cash flow in 2015 is not able to support the point of drilling wells. The crisis of confidence Limited amount of loan Improve credibility Deal with the trust crisis Obtain the maximum loans

A reasonable restriction to time 3 Issue 2 Farm Out Offer Discussion And Recommendation No defaults & no commercial reserves. The possibility of LG’s logging extends infinitely. LG has rights to protect their interests. The license application of GGG is conducted by YJ independently. The required 10% discount damages YJ‘s interests greatly. Discuss Recommendation No need to pay to LG for the license application of GGG LG participates in GGG's outsourcing agenda Discuss the discount for LG again

3 Issue 3 HSE Discussion And Recommendation Advantage Prevention and post safeguards DisadvantageRecommendation Matches local conditions IT systems update continuously Imperfect ecological protection Innovation and management of HSE system Voluntary and trained Ability to solve big problems Safeguards and infrastructure

Issue 5 DT 3 Issue 4 CSR  Discontinue DDD permanently.  Living conveniences (transportation and education). Recommendation Problems  Wavering attitude towards DDD.  Negative impacts on the local environment. Discussion And Recommendation  Additional security personnel  Accept DT’s guarantee  Dispatch personnel to supervise DT closely Recommendation Problems  A crisis of confidence  DT’s forgery problem

The use policy of limited fossil materials was protested by the Greenbies Party, damaging YJ’s image and reputation. 3 Discussion And Recommendation Problem Issue6 Protest by the Greenbies Party Recommendation Protect the non-renewable resources to improve its utilizations Sense of CSR Charitable donations to improve the public recognition Pay more attention and funds to the new energy’s R&D

3 Discussion And Recommendation Issue7 YJ’s long-term future The absence of sustainable fossil fuels Discussion Solution Recommendation Precondition High similarity Alternatives Government supports Unsaturated market Be transformed into energy company, such as unconventional gas, tight gas, combustible ice ， etc. The exploration of new oil fields Industrial transformation The introduction of talent Financing Charity Oil culture

Overview Prioritization and Identification Discussion and Recommendation Ethical Issue Conclusion Ⅰ Ⅱ Ⅲ Ⅴ Ⅳ 4 Respect the local culture and lifestyle fully Establish the partners’ regulatory system The negotiation and competitive ability The relations with the government Convenience fees & business bribes Offense behavior Human rights in Africa

Overview Prioritization and Identification Discussion and Recommendation Ethical Issue Conclusion Ⅰ Ⅱ Ⅲ Ⅴ Ⅳ 5 The actual situation of YJ Current affairs of International oil Challenges & Changes (New energy company)

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