august 2018 hong kong interim results... · of hong kong under the relevant provision of the...

August 2018Hong Kong

2018 Interim Results Announcement

1

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Disclaimer

Financial

Performance

Operational

Overview

Company

Overview

EPC Contracting

Equipment Manufacturing

Construction

Lifting and Transportation

1

An International Oil Refining and Chemical Engineering Company with the Leading Edge in the PRC

Leading

Engineering

and R&D

Capacity with

Technological

Strength

New Coal

Chemicals

Clean

EnergyOil Refining Petrochemical

Inorganic

Chemicals

Environment,

Energy Saving

and Others

En

gin

ee

rin

g,

Co

ns

ult

ing

an

d

Lic

en

sin

g

Our licensing business

further facilitates our

engineering, consulting and

EPC contracting business.

Improve core

competitiveness

Better understand

customer demand

Provide stable, high

quality construction

services

Generate stable

demand

Generate stable

demand

Provide high-quality

equipment

2,000

2,600

2013 2020E2014

2,330

The Chinese GDP growth was 6.8% during

1H2018 ,The economic growth was generally

stable.

In 1H2018 , the output of domestic refined oil

products was 294 million tonnes (an increase

of 6.7% period-on-period). The apparent

consumption of refined oil products was 183

million tonnes, representing an increase of

8.7% period-on-period. The apparent

consumption of gasoline rose by 4.7%, the

apparent consumption of diesel rose by 5.3%

and the apparent consumption of jet fuel rose

by 6.0%.

In 1H2018, the cumulative domestic ethylene

output was 9.0 million tonnes (an increase of

0.5% period-on-period). The apparent

consumption of ethylene was 10.05 million

tonnes, representing an increase of 1.5%

period-on-period.

Good Momentum in GDP Growth FAIs for the PRC Oil Refining and Chemical IndustryKey Economic Status and Industry

Indicators in 1H2018

0.00%

6.00%

12.00%

2014 2015 2016

0

40,000

80,000

120,000

China’s gross GDP

China’s GDP Growth Global GDP Growth

FAIs for China oil refining and chemical engineering industry as a percentage of GDP

2017 2018E 2015

2,3182,150

20162019E

2

Fixed Assets Investment in China

Petrochemical Industry

2020E

2,060

2017

Unit: RMB billion Unit: RMB billion

Good Momentum Gained in the Market Environment 1H2018

Source: SSB, NDRC, MIIT, CPCIF and ICIS

Financial

Performance

Operational

Overview

Company

Overview

The project is at installation phase onsite, the overall progress has exceeded 60%

1H2017 1H2018

7,761

12,102

6,003

6,234

43.6%(Overseas)

56.4%(Domestic)

1H2017 1H2018

13,76418,336

Revenue（RMB mm）

3

Revenue by Domestic/Overseas

(RMB mm)

34.0%(Overseas)

66.0%(Domestic)

Business Performance Growing Significantly

The overall progress has exceeded 70%

The project is launched with detailed design in the process

Zhong’An Coal Chemcial Project

Sinopec SABIC Project

The project is at detailed design phase, with overall progress under control

The project is at detailed design phase, with overall progress over 10%

Successfully completed all aspects of project E P and C, coming into the phase of Commissioning

Kazakhstan FCC Project

Guangdong ZhongkeIntegrated Project

Sinochem Quanzhou Ethylene Project


Kuwait Oil Refining Project

Dongjiakou Crude Oil Commercial Reservation

Base Project


Malaysia RAPID Oil Refining Project

3,977

11,561

9,901

16,425

989

3,639

2,902

3,859

2,555 2,028

8,979

27,4855,939

5,511

296

460

By Business Segment (RMB mm) By Industry Sector (RMB mm)

35,484

1H2018

50.5%

33.4%

14.4%

1.7%

4

New Contracts Growing Significantly

35,484

1H2018

22.4%

55.7%

5.6%

16.3%

32.6%

10.3%

10.9%

17,769 17,769

1H2017 1H2017

77.5%

15.5%

5.7%

1.3%

46.3%

Engineering, consulting and licensing、 EPC contracting

Construction Equipment manufacturing

Oil refining Petrochemicals New coal chemicals Other industries

7,838 8,463

67,713

85,013

14,897

13,950

580

750

32,542 37,171

24,225

35,448

15,386

14,86518,875

20,692

By Business Segment (RMB mm) By Industry Sector (RMB mm)

5

Backlog Increasing Slightly

2018/06/30

74.4%

16.4%

8.6%

0.6%

108,176 108,176

2018/06/30

16.9%

20.7%

26.6%

35.8%

2017/12/31

78.6%

12.9%

7.8%

0.7%

91,028 91,208

2017/12/31

13.7%

19.1%

32.8%

34.4%




Vision: Build a

World-Class

Engineering

Company

6

Business Prospects

1. Maintain solid and growing market share in traditional engineering market and ensure the delivery of full-year target,2. Enhance efficiency in regional resource allocation and improve overall competitiveness,

3. Focus on economic results and promote efficiency-driven Project Management Mode,4. Seize the strategic opportunity of the “Belt and Road” and expand global presence,

5. Actively identify the origin of advanced technology and pursue technology cooperation,6. Vigorously develop environmental protection and energy saving sector to generate new sources of business growth,

7. Promote integrated design and digital delivery application,8. Promote modern human resource management system and advance the Three Systems innovation.

Financial

Performance

Operational

Overview

Company

Overview

Financial Overview

30 June 2018

33,815

25,587

25,591

31 December 2017

61,155

35,214

25,936

25,941

（RMB million）

Equity Attributable to Equity Holdersof the Company

Total Assets

Total Liabilities

Net Assets

59,406

Operation Performance Indicators

Assets and Liabilities

Other Key Financial Indicators

7Notes: 1. ROA=Net Profit/(Opening Balance of Total Assets + Closing Balance of Total Assets)/22. ROE=Net Profit/Total Equity At the End of Period3. ROIC=EBIT x（1-Effective Income Tax rate）/ (Total Interest Bearing Debt- Credit Loans + Total Equity At the End of Period)

Gross Profit Margin

ROA1

ROE 2

Net Profit Margin

1H2018 1H2017

ROIC3

16.1%

1.4%

3.2%

6.1%

3.3%

10.5%

1.8%

6.0%

4.3%

（RMB million）

Dividend 0.100

30 June 2018 30 June 2017

1H2018

18,336

1,921

998

1,108

1H2017 Change Rate %

33.2

(13.2)

18.3

32.7

（RMB/Share） Change Rate %

78.6

Operating Profit

Net Profit

Gross Profit

Revenue 13,764

2,213

844

835

0.056

2.9

1.4

4.1

1.4

Change Rate %

4.3%

2016 2017 1H2017 1H2018

10,76013,834

5,667 6,932

14,525 10,169

3,7465,202

8,5637,215

2,243

4,160

7,554

4,991

2,108

2,042

2016 2017 1H2017 1H2018

2,638 2,8441,099 1,403

20,641 21,056

7,44010,186

15,96411,899

5,072

6,457

159

410

153

290

By Industry Sector (RMB mm)

10

Revenue

By Business Segment (RMB mm)

39,402 18,336 36,209 18,336

55.5%

35.2%

16.3%

39,40213,764

36.8%

54.1%41.2%

27.2%

36,209 13,764

1.1%

8.0%

1.6%

7.7%

15.3%22.7%

37.8%

28.4%

11.1%

Note: Total amounts of revenue are after inter-segment elimination




2016 2017 1H2017 1H2018

908 881441 463

2,520 2,517

1,313894

837591

448

543

3037

11

21

2016 2017 1H2017 1H2018

1,671

1,130

835

1,108

Gross Profit (RMB mm) and Gross Profit Margin Net Profit (RMB mm) and Net Profit Margin

Gross Profit Margin

Net Profit Margin

11

4.2%6.0%

Gross Profit, Gross Profit Margin, Net Profit and Net Profit Margin

46.5%

28.3%

24.1%

4,295 4,026

3.1%

1,671 1,130 1,108

16.1%10.9% 10.5%

1,921

59.3%

19.9%

20.3%

2,213 835

6.1%11.1%

0.5%

1.1%



Total Assets (RMB mm)Equity Attributable to Equity Holders of the Company

(RMB mm)

10

Total Assets and Equity

2016/12/31 2017/12/31 2018/06/30

58,889 59,406 61,155

2016/12/31 2017/12/31 2018/06/30

25,261 25,587 25,936

2016/12/31 2017/12/31 2018/06/30

57.1% 56.9% 57.6%

Current Ratio

Asset-Liability Ratio Operating Current Liabilities/Total Liabilities

Notes: operating current liabilities include trading accounts payables, notes payables and other accounts payables, payables for customer

engineering contracts， as well as contract liabilities.

Quick Ratio

11

Assets Structure

2016/12/31 2017/12/31 2018/06/30

90.3% 89.8% 87.7%

2016/12/31 2017/12/31 2018/06/30

1.7 1.7 1.7

2016/12/31 2017/12/31 2018/06/30

1.6 1.7 1.6

2016 2017 1H2017 1H2018

4,6714,241

-736-1,033

-3,500-3,801

-1,740

471

-1,131

-179

244 127

14

(RMB mm)

Cash Flows

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Turnover Days of Notes and Trade Receivables Turnover Days of Notes and Trade Payables

Operating Cycle Turnover Days of Inventories

Note: Operating cycle=Turnover days of notes and trade receivables +Turnover days of inventories

Unit: Day Unit: Day

Unit: Day Unit: Day

Capital Turnover

2017/06/30 2017/12/31 2018/06/30

12299 99

15

2017/06/30 2017/12/31 2018/06/30

206160 151

2017/06/30 2017/12/31 2018/06/30

138109 106

2017/06/30 2017/12/31 2018/06/30

16

107

创建世界一流工程公司

Build a World-Class Engineering Company

打造更美好的世界

Engineering a Better World

august 2018 hong kong interim results... · of hong kong under the relevant provision of the...

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