2019 annual results announcement shanghai electric group

April 2020

2019 Annual Results Announcement

Shanghai Electric Group Company Limited (Stock Code: 02727)

Disclaimer

This presentation contains forward-looking statements. As non-factual historical statements, forward-looking statements

contain statements regarding our views and expectations. In this presentation, any statement in connection with our intention,

view, expectation and forecast (as well as underlying assumptions) constitutes forward-looking statements. Such statements are

made based on the plans, estimates and forecast of the management of Shanghai Electric Group Company Limited (“Shanghai

Electric” or the “Company”). Therefore, such forward-looking statements only represent the statements as of the date hereof,

and we are not responsible for any update on such statements based on additional information or any publicly available

information in the future.

In nature, the forward-looking statements contain risks and uncertainties, therefore, there may be various significant factors

leading to the actual results materially varying from the anticipated results in such statements

2

Content

2019 Operating Results

Operating Highlights

01

03

Operating Performance for Business Segments02

2019 Operating Results

Chapter 01

Summary of Operating Results

2019 2018 % Change

(In million RMB unless otherwise indicated)

Revenue 127,509 101,158 26.0%

Gross profit 21,991 18,450 19.2%

Operating profit 7,816 6,282 24.4%

EBITDA 11,750 9,345 25.7%

Net profit attributable to owners of the Company

3,720 2,980 24.8%

Gross profit margin 17.2% 18.2% -1.0 percentage points

Operating profit margin 6.1% 6.2% -0.1 percentage points

EBITDA margin 9.2% 9.2% -

Net margin attributable to owners of the Company

2.9% 2.9% -

ROE(1)

6.1% 5.3% 0.8 percentage points

EPS（RMB cents） 25 20 25%

Proposed dividend per share（RMB cents） 0 6.146 -

Note：(1) Return on net assets refers to the weighted average return on net assets.

Summary of Balance Sheet

31 December 2019 31 December 2018 Percentage of change(In million RMB unless otherwise indicated) a b c=(a-b)/b

Assets 280,524 218,522 28.4%Current assets 199,201 151,728 31.3%

Cash and cash equivalents 50,758 39,195 29.5%Prepayments, deposits and other receivables 24,889 18,044 37.9%Bills and trade receivables 29,337 18,841 55.7%

Inventories and construction contracts 27,004 27,929 -3.3%Contract assets 24,985 12,230 104.3%

Long-term assets 81,323 66,794 21.8%Liabilities 188,934 144,885 30.4%

Current liabilities 164,061 119,623 37.1%Interest-bearing bank and other borrowings 20,403 10,351 97.1%Trade payables 57,923 38,881 49.0%Contract liabilities 38,585 36,566 5.5%

Other payables and accruals 21,591 17,166 25.8%Long-term liabilities 24,873 25,262 -1.5%

Interest-bearing bank borrowings and other borrowings 11,268 9,589 17.5%Bonds 6,918 12,749 -45.7%

Equity 91,589 73,637 24.4%Equity attributable to owners of the Company 63,346 57,290 10.6%Non-controlling interests 28,243 16,347 72.8%

Operating Results for Business Segments

Chapter 02

03Integrated Services

02Industrial Equipment

01Energy Equipment

Shanghai has put forward the Action Plan on Intelligent Manufacturing of Shanghai (2 019-202 1), which aims to build Shanghai into a new highland

of intelligent manufacturing applications, a source of core technologies and a source of system solutions nationwide .Shanghai Electric seizes the

opportunity of industrial intelligent development and focuses on three major areas: energy equipment, industrial equipment and integrated services.

With the accumulated expertise in high-end equipment manufacturing, it strongly promotes the digitalization and informatization of energy and

industry development for increasing manufacturing efficiency.

• Coal-fired power generation equipment

• Gas-fired power generation equipment

• Nuclear power equipment • Wind power equipment• Energy storage • High-end vessels for chemical

industry • Power grid/industrial

intelligent power supply system solutions

• Elevators • Large and medium-sized

electric motors • Intelligent manufacturing

equipment• Industrial basic parts• Environmental protection

equipment• Construction industrialization

• Energy engineering and services

• Environmental protection engineering and services

• Automation engineering and services

• Industrial internet services• Financial services• International trade services

Lines of Businesses

Changes in revenue and gross margin by segments

18.2%

15.0%

18.6% 18.3%

17.2%

13.7%

17.3%16.7%

0%

5%

10%

15%

20%

25%

Group

40,998 45,944

41,569 46,409

24,149

44,316

0

20,000

40,000

60,000

80,000

100,000

120,000

2018 2019

Total revenue: + 26.0% YoY Gross margin by segments

(million RMB )

Integrated services

Industrial equipment

Energy equipment

2018 2019

Note:(1) Total revenue is net amount after inter-segment elimination and segment revenues are before inter-segment elimination but after intra-segment elimination

year-on-year changes in

2019 results

83.51%

127,509(1)

101,158(1)

12.06%

11.64%

Energy Equipment

17,951 16,435

6,171 9,783

8,039 8,506

8,837

11,220

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2018 2019

Revenue: +12.1% YoY

(million RMB )

Gross profit & gross margin of sub-segments

Wind power equipmentCoal-fired power equipment(million RMB)

Note:(1) Individual segment revenue is stated before inter-segment offset, but after intra-segment offset


2019 results

Gross profit & gross margin

(million RMB)

Operating profit & operating margin

(million RMB)

6,1636,282

15.0% 13.7%

0%

10%

20%

30%

5,000

5,500

6,000

6,500

gross profit gross profit ratio

2018 2019

1,548

8453.8%

1.8%

0%

2%

4%

6%

8%

400

600

800

1,000

1,200

1,400

1,600

operating profit operating profit ratio

3,027

2,391

16.9%14.6%

10%

20%

30%

0

1,000

2,000

3,000

4,000


2018 2019

40,998(1)

45,944(1)

Others

Grid

Wind power

Coal-fired

power

5.8%

-8.4%

58.5%

1,007

1,546

16.3% 15.8%

10%

20%

30%

0

500

1,000

1,500

2,000


2018 2019

5.8%

27.0%

Industrial equipment

20,292 21,199

7,220 8,783

9,884 9,143

4,173

7,284

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2018 2019

11

others

Industrial basic parts

Intelligence manufacturingequipment

Elevators

Revenue:+11.6% YoY

(million RMB)

Note:(1) Individual segment revenue is stated before inter-segment offset, but after intra-segment offset

Gross profit and gross profit margin of elevators

(million RMB)


(million RMB)


2019 results


(million RMB)

7,748 8,039

18.6%17.3%

0%

10%

20%

30%

40%

50%

0

2,000

4,000

6,000

8,000

10,000

2018 2019


3,050 3,178

7.3% 6.8%

0%

3%

6%

9%

12%

15%

0

1,000

2,000

3,000

4,000

2018 2019


3,8843,509

19.1%16.6%

0%

10%

20%

30%

0

1,000

2,000

3,000

4,000

2018 2019


41,5691)

46,409(1)

74.6%

21.6%

4.5%

-7.5%

Integrated Services

12

Note:(1) Individual segment revenue is stated before inter-segment offset, but after intra-segment offset.

Gross profit & gross margin of energy engineering and sevices

(million RMB)


(million RMB)


(million RMB )

4,430

7,413

18.3%16.7%

0%

10%

20%

30%

40%

50%

0

2,000

4,000

6,000

8,000

2018 2019


2,645

3,853

11.0%

8.7%

0%

3%

6%

9%

12%

15%

18%

0

1,000

2,000

3,000

4,000

2018 2019


1,174

3,707

10.4%15.2%

0%

10%

20%

30%

40%

50%

0

1,000

2,000

3,000

4,000

2018 2019


11,307

24,458 4,336

8,320

4,161

6,794

4,345

4,744

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2018 2019

others

Financial and trade services

Environmental protection

engineering and services

Energy engineering and services

Revenue: +83.5% YoY

(million RMB)


2019 results

9.2%

63.3%

91.9%

116.3%

24,1491)

44,316(1)

Business Orders

New orders amounting to RMB 170,790 millionOrders on hand of RMB240,860 million

(of which: RMB69,590 million not yet effective orders)

(RMB 100 million)

105,662

107,736

107,736109,237

24,683

3,0231,123

Comparison of new orders

17,242

2,4594,424

359.9

445.5

502.0

567.4

455.6

684.9

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Energy equipment Industrial equipment Integrated services

January-December of 2018 January-December of 2019

(RMB 100 million)

Comparison of new orders for certain businesses

13

129.96

223.8

0

50

100

150

200

250

风电设备Wind power equipment

48.0

101.5

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Enviromental protection

engineering and services

Operational Highlights

Chapter 03

Operation Review

Offshore wind power ranked first in

China for 5 consecutive years

• Shanghai Electric ranked first in China with

732MW newly installed capacity for 2019

CAP1400 major project passed the

acceptance inspection

• CAP1400 wet winding motor main

pump has been developed

Gas TurbineUltra-low heating value gas turbine made the

first breakthrough

• Broke the monopoly of foreign enterprises in the

domestic market

Waste-to-energy

The world’s largest waste-to-energy scale

Wind Power Coal-fired Power Generation

Coal consumption for power

supply hits a new high

Nuclear Power

• Shanghai Laogang waste-to-energy project has

become a sample project in this field

• The coal consumption for power generation of Pingshan

power plant project is estimated to be 251g/KWh

Platform Incubation

• Incubating new business

and new assets

Integration of Resources

• Further strengthening the main

business and the subsidiaries

System Innovation

• Improving the overall profitability

Incentive Mechanism

Proposed spin-off of SEWP and listing on the

Science and Technology Innovation Board

SEWP belongs to the energy equipment sector of Shanghai

Electric. Its main business is the design, research and

development, manufacturing and sales of wind power

equipment and supporting services for the post-market.

SEWP is a national clean energy backbone enterprise. It is

the leading onshore wind power equipment manufacturer

and the largest offshore wind power equipment

manufacturer in China.

Xiong’an Smart City

• Compiling the framework system of intelligent infrastructure in

Xiong’an

• Research and development of the first intelligent access and

intelligent gateway

National Level Smart Factory

• Large scale turbine generators intelligent factory

• The first batch of demonstration projects on intelligent

manufacturing by Ministry of Industry and Information Technology of

the People’s Republic of China

New Countryside Smart Micro-grid

• Micro-grid integrated with "wind and solar power generation, energy

storage and EV charging"

• Advanced energy storage battery, surplus electricity to grid

Yancheng Intelligent Energy Big Data Platform

• Realizing intelligent management of the entire energy chain

• Providing multi-directional data access and support of planning,

construction and operation for various energy projects

Smart Elevator and Interactive System

• “Smart Eye” monitoring system preventing accidents

• Taking elevator through the face recognition terminal

“Fengyun” Intelligent Operation and Maintenance

• The access of almost 200 wind power plants

• Providing markets and users with full life cycle solutions

Intelligent Transformation

Industrialization Layout

Lithium iron

phosphate

battery

All-vanadium

flow batteryHydrogen fuel

cell

Layout the Energy Storage Business Improving the EIC system

• Investment and construction

of the first sharing energy

storage power station

• Deepening the supply chain

of the lithium battery

• Having launched MW-level

all-vanadium flow battery

• Realizing distributed and

centralized peak modulation

and frequency modulation

Decommissioned

battery storage

system

• Focusing on electricity

stack and membrane

electrode

• Having launched 30KW

fuel cell engine

equipment

• Ranking first in the

retired battery

storage system

• Having completed

10 model projects

Digital Empowerment

Smart Supply Chain Platform

• Having built up 128 purchase

projects

• Reducing the purchase costs

• Stabilizing the supply chain

• Having connected with nearly

100,000 main equipments

• Taking users as first to realize the

industrialization of services

• Having launched “e-station

connected” E-commerce platform

for spare parts and components

"SEunicloud" Industrial

Internet Platform

能动全球工业Empower global industry

智创美好生活Make life smarter

2019 annual results announcement shanghai electric group

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