DJ [Press Release] SEG (2386.HK) Announces 2023 Interim Results
EQS Newswire / 20/08/2023 / 22:42 UTC+8
Press Release
(For immediate release)
(Stock code: 2386)
SEG Announces 2023 Interim Results
Promoting High-Quality Development for Stability and Sustainability
Launching the First Share Repurchase Since Listing
(21 August 2023, Hong Kong) SINOPEC Engineering (Group) Co., Ltd. ("SEG" or the "Company", together with its
subsidiaries collectively known as the "Group") (stock code: 2386) today announces its interim results for the six
months ended 30 June 2023 (the "Reporting Period").
During the first half of 2023, the world economic recovery continued to come under pressure, crude oil prices
fluctuated downward, and consumption in the chemical market was sluggish, which brought great challenges to the
development of the industry and the Company's operation. In the face of difficulties and challenges, the Group adhered
to market-oriented, customer-centric, and strived to create sound business performance and achieved a series of new
development achievements. During the Reporting Period, the Group recognized the total revenue of RMB24.830 billion, and
the net profit was RMB1.317 billion. The value of new contracts amounted to RMB37.731 billion, exceeding the half year
target with strong continuation in domestic and overseas markets.
In terms of value realization - the Group is committed to sharing the company's development achievements with
shareholders. In view of the Group's profitability, shareholder returns and the needs for future development, the Board
declared an interim dividend of RMB0.119 per share, with a dividend payout ratio of 40% and maintain dividend
stability. In order to improve the quality as an issuer and promote the realization of the Company's value, and
according to the authorization granted at the shareholder meeting, the Board approved a share repurchase implementation
plan on August 18. The Company planned to repurchase the Company's shares at an appropriate time in the near future.
This is the first time the Company has launched a share repurchase plan since it went public in 2013, showing the
determination of the Board to enhance corporate value and confidence in the Company's medium and long-term development.
In terms of technology innovation - the Group signed 230 new technology development contracts and 36 new licensing and
service contracts, the total amount of technology development and licensing contracts reached RMB494 million. In
additional to the RTC industrial demonstration plant achieved significant breakthrough, the pilot plant for direct
olefin production from syngas of the Group was successfully operated in Yangzi Petrochemical, and the indicators of
one-way conversion rate and olefin selectivity of the reaction reached advanced levels. This technology has the
advantages of simplified process flow and low equipment investment, and will consolidate the Group's advantages in the
field of coal chemicals. On LNG cold energy utilization technology and green hydrogen industry chain reserved
technology, the Group is prepared for enriching energy and chemical supply under the global carbon reduction policy.
In terms of safety, quality and environmental protection - the Group took "strengthening process control" as the main
line, and promoted the system in depth, strengthened the ability of all employees, grasped the implementation of the
whole process, and built barriers in an all-round way. Strive to promote the deep integration of QHSE management system
with production and operation, resolved major HSE risks through comprehensive management and special actions, and
improve the inherent and sensory quality of the projects. The Group continued to promote green enterprise actions, and
built a fully enclosed anti-corrosion plant in Zhenhai and other projects to solve the problem of unorganized VOCs
emissions from the prefabrication plant of the project;; successfully planted more than 15,000 trees in the yellow sand
surrounding the camp of the Saudi Executive Center, and built an oasis, which could play the role of sewage
utilization, emission reduction and carbon reduction, and sand fixation and soil protection. During the first half of
2023, the Company's cumulative safety man-hours were 128 million, an increase of 7.9% over the same period last year.
No quality, safety or environmental accidents occurred, and the Company's safety, high-quality and clean production
situation was stable and controlled.
In terms of market expansion - during the Period, the Group strived to forge ahead and expand the market. The value of
new contracts signed by the Group was RMB37.731 billion. Domestically, the Group's dominant position in the refining
and chemical engineering market has been continuously consolidated with approximately RMB29.949 billion in new
contracts signed during the first half. We signed a batch of contracts for front-end project construction consultation
and design, including Luoyang Ethylene, Maoming Ethylene and CNOOC Shell Phase III, and EPC main contracting and
construction contracts for several large-scale park projects, including PetroChina Jihua Transformation and Upgrading
Project, Zhenhai Refining and Chemical High-end Synthetic New Materials Project, CNOOC Daxie Petrochemical Upgrading,
Renovation and Expansion Project and the EPC Contracting and construction contract of the multi-bid sections of the
BASF integration project. During the first half, total value of new contracts from non-Sinopec Group amounted to
RMB22.958 billion, representing 60.8% of total new contracts, deepening the cooperation with non-Sinopec Group project
owners led by PetroChina and CNOOC. During the Reporting Period, the Group signed 73 new contracts related to emerging
business, with a new contract value of approximately RMB2.021 billion, and the expansion of emerging business continued
to accelerate. the Group's new contracts signed overseas amounted to approximately USUSD1.112 billion, representing a
significant year-on-year increase of 107.1%. In the first half of the year, the Group's network in international
operations was further expanded, and maintained high-frequency interactions on pre-project planning, front-end
engineering services and EPC implementation with national oil companies such as Saudi Aramco, Sabek, United Arab
Emirates, Kuwait, Malaysia, Thailand, and Kazakhstan; Carried out high-level mutual visits with TR, TCM, Saipan, JGC
and other international engineering companies to discuss cooperation intentions and deepen strategic partnerships.
In terms of project execution - during the Reporting Period, the Group made every effort to ensure the smooth operation
of 1,242 ongoing projects, among which 1,108 are domestic and 34 are overseas. All project sites were under control in
terms of progress, expenditure, safety, quality and environmental protection. Domestically, the Group promoted the
construction of key projects with high quality. Tianjin Nangang Ethylene Project successfully entered the peak period
of engineering construction. ExxonMobil Huizhou Ethylene Project, PetroChina Jihua Transformation and Upgrading
Project, Yulong Petrochemical and other projects advanced efficiently. Huajin, Luoyang and Maoming Ethylene and other
major projects have completed the preliminary design work on schedule.
Overseas, the Group's performance management, cost management, compliance management and risk control capabilities have
been comprehensively improved. At present, the Company's Saudi project group has a total of 19 projects in execution,
with a total contract value of USD1.9 billion, and the proportion of localized labor exceeds 85%; projects including
ExxonMobil Singapore CRISP integration, Thailand's clean energy, Algeria's LNG storage tanks and MTBE were progressing
well.
Chairman of SEG, Mr. JIANG Dejun said: "Facing the future, the growth momentum of the world economy needs to be
restored, and more inclusive and balanced development opportunities are needed. As an important engine of economic
development, the construction of the energy and chemical industry on a global scale is still flourishing and ascending.
At the same time, climate change has become an imminent challenge facing the world. The realistic pressure of abnormal
climate requires us to work harder, create more paths for sustainable development, and accelerate the implementation of
a series of technology reserves of the Group in the fields of carbon reduction and green environmental protection.
Facing this important opportunity, the new Board will strengthen overall coordination and planning, enhance strategic
guidance, and move forward steadfastly along the road of product excellence, brand excellence, innovation leadership
and modern governance to achieve world-class level. The company will continue to improve corporate governance to ensure
the standardized procedures of the Board. The company will continue to strengthen strategic planning and establish
clear development goals for the new stage.
The Group will continue to promote scientific and technological innovation, and play the dual roles of 'raising
questions' and 'providing solutions'. The Group will take the initiative to take up the industry reform and actively
lead the engineering industry to a new industry. The Group will vigorously implement 'global development' and actively
promote the internationalization of operations. The Group will actively exert its listing functions and strive to
achieve diversified value creation. We believe that a cleaner, greener and lower-carbon energy and chemical industry
will provide stronger momentum for global development, and will also convey the strong yearning of more countries for a
better living. With the strong support of shareholders and the society, and with the relentless efforts of the Board,
the management and all employees, SEG will create greater value for shareholders, society and employees!"
Business Review and Highlights
Strive to forge ahead and expand the market
During the Reporting Period, the value of new contracts signed by the Group was RMB37.731 billion, achieving more than
half of the time and completing the target. During the Reporting Period, the Group signed approximately RMB29.949
billion in new contracts in China, maintaining its overall competitiveness in the domestic market. We signed a batch of
contracts for front-end project construction consultation and design, including Luoyang Ethylene, Maoming Ethylene and
CNOOC Shell Phase III, and EPC main contracting and construction contracts for several large-scale park projects.
Representative new contracts include the EPC Contracting for multiple sets of equipment for Zhenhai Refining and
Chemical High-end Synthetic New Materials Project with a contract value of approximately RMB3.288 billion; the EPC
project of ethylene plant of PetroChina Jihua Transformation and Upgrading Project with a contract value of
approximately RMB3.173 billion; and the EPC Contracting and construction contract of the multi-bid sections of the BASF
integration project with a contract value of approximately RMB1.755 billion; the EPC Contracting of Qingdao Refining
and Chemical Liquefied Gas Safety Improvement Project with a contract value of approximately RMB1.353 billion; the EPC
Contracting of polypropylene of CNOOC Daxie Petrochemical Upgrading, Renovation and Expansion Project with a contract
value of approximately RMB1.673 billion; the EPC Contracting of Changling Refining and Petrochemical 1 million t/a
continuous reforming combined plant with a contract value of approximately RMB873 million.
During the Reporting Period, the Group's new contracts signed overseas amounted to approximately USUSD1.112 billion,
representing a significant year-on-year increase of 107.1%, maintaining a strong market development momentum.
Representative new contracts include the tank farm of the Saudi AMIRAL project and the EPC Contracting for the
integration project with the SATORP refinery with a contract value of approximately USUSD727 million, and the offshore
[technology+] high-end engineering services have achieved good results and successfully signed a number of front-end
service contracts such as the pre-design of the ADNOC project in the United Arab Emirates, the technical consultation
of the Mozyr polypropylene project in Belarus, and the process package design of the New Logan polystyrene project in
Vietnam.
During the Reporting Period, the Group signed 73 new contracts in the new energy, new materials and other new fields,
with a new contract value of approximately RMB2.021 billion, and the expansion of emerging business continued to
accelerate.
Smooth and orderly implementation of projects
-- Tianjin Nangang Ethylene Project was in the peak stage of construction, and the overall progress was over
80%.
-- Baling Caprolactam Project was in the final stage of construction, and the overall progress was over 90%.
-- Zhenhai Refining and Chemical High-end Synthetic New Materials Project was in the civil construction
stage, and the overall progress was over 30%.
-- PetroChina Jihua Transformation and Upgrading Project wasin the detailed design stage, and the overall
progress was over 10%.
-- Longkou LNG Project was in the stage of rapid construction, and the overall progress was over 60%.
-- Tianjin LNG Project (Phase II) was in the final stage of construction, and the overall progress was over
90%.
-- Shandong LNG Project (Phase III) was in the final stage of construction, and the overall progress was
over 90%.
-- Wenzhou LNG Project has been delivered.
-- Kuqa Green Hydrogen Demonstration Project has been delivered and hydrogen gas was successfully produced,
achieving full procedure integration.
-- Saudi Aramco crude oil transportation pump station upgrade and renovation project was in the peak stage
of construction, and the overall progress was over 60%.
-- ExxonMobil Singapore CRISP integration project was in the installation stage of steel structure, main
gallery, etc., and the overall progress was over 10%.
Vigorously promote scientific and technological breakthroughs
During the Reporting Period, the Group has made prominent achievements in research and development of science and
technology. The Group signed 230 new technology development contracts and 36 new licensing and service contracts, the
total amount of technology development and licensing contracts reached RMB494 million.
During the Reporting Period, the Group filed 405 new patent applications, among which, 292 were invention patents,
accounting for 72.1%; 271 newly licensed patents, 147 of which were invention patents, accounting for 54.2%, patent
quality has been continuously optimized.
During the Reporting Period, the Group received a total of 36 science and technology progress awards in scientific and
technical innovation and engineering construction fields at the provincial and above level. Among these awards, we won
5 first prizes, 4 second prizes and 2 third prizes of Sinopec Science and Technology Progress Award; 1 national patent
silver award; 2 National Excellent Design Awards; 19 provincial and ministerial level excellent design awards.
The Group's engineering technology innovation closely focuses on the Company's strategy and market demand, and key
scientific research projects have been steadily advanced, and new progress has been made in key core technology
research. During the Reporting Period, the Group carried out special work on oil refining and chemical industry chain
and technology chain combing, providing forward-looking guidance for the next step of technology upgrading and
development. At the same time, the Company will study and judge the situation in a timely manner according to the
requirements of industry development, carry out the work of "extended chain", "complementary chain" and "strong chain",
and do a good job in technology development and market development strategic deployment.
During the Reporting Period, the Group focused on the transformation of traditional technologies and the goal of
"Carbon Peaking and Carbon Neutrality", and achieved major breakthroughs in engineering transformation. The world's
first set of 3 million t/a RTC (RESIDUUM TO CHEMICALS) industrial demonstration unit was successfully put into
operation, realizing the leapfrog progress of catalytic cracking technology in China, and providing strong technical
support for the transformation and upgrading of refining and chemical from traditional fuel refineries to chemical
refineries. It will also lay a solid foundation for the Group to expand market development and contract engineering
projects in this field.
During the Reporting Period, China's first 10,000-ton green hydrogen demonstration project - Kuqa photovoltaic green
hydrogen demonstration project, was successfully put into operation, the project has a hydrogen production scale of
20,000 t/a, and green hydrogen is supplied to Tahe Refining and Chemical nearby, which can reduce carbon dioxide
emissions by 485,000 tons per year. This project marks the first time in China to realize the whole industrial chain of
10,000-ton green hydrogen and green hydrogen refining and chemical projects, providing a replicable and replicable
demonstration case for the development of green hydrogen industry, and is of great significance to the rapid
development of green hydrogen industry. As at the end of the Reporting Period, another 30,000-ton wind, solar,
electricity and green hydrogen project undertaken by the Group - Ordos Green Hydrogen Project has entered the project
implementation stage.
During the Reporting Period, the pilot plant for direct olefin production from syngas of the Group was successfully
operated in Yangzi Petrochemical, and the indicators of one-way conversion rate and olefin selectivity of the reaction
reached advanced levels, laying a solid foundation for the industrial application of this technology. Compared with the
indirect Methanol To Olefin (MTO) technology using synthetic gas, this technology has the advantages of simplified
process flow and low equipment investment. This technology will consolidate the Group's advantages in the field of coal
chemicals, and will also lay the foundation for the Group's subsequent contract of related technology and engineering
business.
During the Reporting Period, the Group's 150,000-ton/year CHPPO unit was successfully put into operation in Tianjin
Sinopec, which further enriched the Group's epoxy technology; the first domestic micro-interface enhanced diesel
hydrogenation technology was successfully put into operation in Jinling Sinopec, achieving significant energy savings
and carbon reductions. We completed the development of the process package of the kiloton-level liquid polyolefin
technology industrialization test device, and promoted the development of polyolefin synthesis technology towards high
performance and multi-function; developed cold energy power generation, thermal seawater desalination, electrolytic
seawater hydrogen production and other application scenarios, reserve LNG cold energy utilization technology improved
the efficiency of LNG cold energy utilization; we actively extended the green hydrogen industry chain, reserved green
synthetic ammonia and green methanol technology, and prepared for enriching energy and chemical supply under the global
carbon reduction policy.
Continuous enhancement of project execution capability
During the Reporting Period, the Group continuously improved its production and operation capabilities, the Group has
executed 1,242 projects in China and foreign countries, all projects under implementation domestically and overseas
were under control in terms of progress, expenditure, safety, quality and environmental protection. Domestically, the
Group fully leverages the advantages of group organization construction, projects such as Hainan Ethylene, Structural
Adjustment for Transformation of Anqing Oil Refining Towards Chemical Industry, Kuqa Green Hydrogen have been completed
and put into operation, projects such as Tianjin Nangang Ethylene, Huizhou Ethylene, Jihua Transformation and
Upgrading, Yulong Petrochemical, Shandong LNG, Tianjin LNG have been efficiently promoted, providing important support
for the high-quality development and transformation and upgrading of the industry. Among them, the world's first 3
million t/a RTC (RESIDUUM TO CHEMICALS) industrial demonstration plant was successfully put into operation in Anqing
Petrochemical, realizing the leapfrog progress of China's catalytic cracking technology, and is the successful practice
of China's first traditional refinery to chemical transformation, providing strong technical support for the
transformation and upgrading of refining and chemical enterprises; the successful commissioning of the world's largest
green hydrogen project, Kuqa Green Hydrogen Project, marks the first time that China has achieved the whole industrial
chain of 10,000-ton green hydrogen and green hydrogen refining and chemical projects, providing a replicable and
replicable demonstration case for the development of the domestic green hydrogen industry, which is of great
significance to the rapid development of the green hydrogen industry. In overseas market, the Group's overseas project
execution has fully resumed normal, the Saudi Arabia project Cluster and ExxonMobil Singapore CRISP integration project
have been fully promoted, and the overseas business maintained continuous, stable and healthy operation.
During the Reporting Period, the Group continued to strengthen lean management, strengthen the overall planning of
project resources, and make every effort to ensure the smooth operation of projects; with efficiency and progress as
the core, implemented the "triple early warning" of schedule deviation, revenue deviation and budget deviation, and
timely carried out corrective management; strengthened standardization and integration by optimizing the design
workflow and professional division of labor interface; improved design and construction efficiency through modular
design and modular construction; improved subcontracting management, strengthened the cultivation of strategic
subcontractors, and effectively improved the execution capacity of subcontracting resources and project quality;
organized management benchmarking, and optimized purchase program, so that purchase price negotiation and project
supply assurance capability have been continuously enhanced.
During the Reporting Period, the Group increased the application of advanced equipment and technology, promoted the
industrial application of automatic welding and welding robots, explored and promoted the implementation of
standardization, automation, digitalization and modular construction in engineering construction, focused on improving
ergonomics and quality, and actively led the innovation of engineering models. For the first time, the breakthrough of
tank vertical seam automatic welding technology was realized, and it was popularized and applied in the tank
construction of Tianjin LNG project, continued to promote the improvement of intrinsic safety, work efficiency and
quality; the 9-axis all position intelligent welding robot has been developed, which successfully realized the
automatic intelligent 360-degree all-position one-time welding of pipelines, and the welding process was digitalized,
and the quality control was visualized.
Maintenance of excellent state of safety, quality and environmental protection
During the Reporting Period, the Group took "strengthening process control" as the main line, and promoted the system
in depth, strengthened the ability of all employees, grasped the implementation of the whole process, and built
barriers in an all-round way, and resolved major risks and improved internal and sensory quality through comprehensive
management and special actions. Strive to promote the deep integration of QHSE management system with production and
operation and "three basics" work, do a good job in intrinsic safety construction and scientific and technological
support, continue to promote green enterprise actions, and help the high-quality development of refining and chemical
projects.
During the Reporting Period, the Group continued to promote green enterprise actions, and built a fully enclosed
anti-corrosion plant in Zhenhai and other projects to solve the problem of unorganized VOCs emissions from the
prefabrication plant of the project; the optimized design and construction of the Tianjin Nangang ethylene project
significantly reduced solid waste emissions, set up a green construction site benchmark; successfully planted more than
15,000 trees in the yellow sand surrounding the camp of the Saudi Executive Center, and built an oasis, which could
play the role of sewage utilization, emission reduction and carbon reduction, and sand fixation and soil protection.
During the Reporting Period, no quality, safety or environmental accidents occurred. As of the end of this report
period, the Company's cumulative safety man-hours were 128 million, an increase of 7.9% over the same period last year,
and the Company's safety, high-quality and clean production situation was stable and controlled. During the Reporting
Period, the Group's Huizhou ethylene project was awarded the "Global Project President Safety Award" by ExxonMobil.
Further promote the application of digitalization
During the Reporting Period, the Group coordinated the promotion of the construction of the refining and chemical
engineering business domain. In the operation management subdomain, promote standardized data governance of business
processes, integrate the application architecture requirements of business domains into the Company's management and
control system, and further strengthen the "three middle platforms" functions of business, technology and data. In the
subdomain of business operations, promote the digital transformation of enterprises, unify the planning of the whole
business chain structure such as R&D, design, procurement, manufacturing, construction and delivery, focus on 10 key
application fields, and further strengthen the sharing of "data + platform + application" achievements. In terms of
deepening applications, we will continuously improve the integrated application of the operation management platform of
the refining and chemical engineering business domain and the digital twin of the intelligent factory.
During the Reporting Period, the Group's design simulation adaptation verification passed the national acceptance, and
won the 2023 Best Pioneer Management Award for Digital Transformation of Hexagon Digital Intelligence. During the
Reporting Period, the Group's design simulation industrial software adaptation verification has passed the national
acceptance.
The construction of talent team
During the Reporting Period, the Group continued to promote the development strategy of "building a strong enterprise
by relying on talents" and strengthen the construction of talent team. Implemented the second phase of the "Plan for
raising of seedling" to build a platform for young talents to practice and exercise; carried out PMP project management
training for all employees of the headquarters to systematically improve the professional management ability of the
personnel of the headquarters; carried out an inventory of the international talents to further evaluate the
international talent structure and talent capabilities, and consolidate the human foundation for better building an
international team; further improved the expert database to better optimize the allocation of resources, and provide
professional knowledge and technical support for policy formulation and innovative development. In overseas, we
gradually improved the international talent training and introduction mechanism and took a pilot for the international
professional manager system in the operation of overseas institutions.
Business Prospects
Facing the future, the growth momentum of the world economy remains to be restored, and more inclusive and balanced
development opportunities are needed. As an important engine of economic development, the construction of the energy
and chemical industry on a global scale is still flourishing and ascending. At the same time, climate change has become
an imminent challenge facing the world. The realistic pressure of abnormal climate requires us to work harder, create
more paths for sustainable development, and accelerate the implementation of a series of technology reserves of the
Group in the fields of carbon reduction and green environmental protection. Facing this important opportunity, the
Group will strengthen overall coordination and planning, enhance strategic guidance, and move forward steadfastly along
the road of product excellence, brand excellence, innovation leadership and modern governance to achieve world-class
level.
The Group will continue to strengthen strategic coordination. The Company will adhere to the functional positioning of
"strategic decision making center, resource allocation center, risk control center and service support center", and
guide the differentiated development of "one enterprise, one policy" of each Group member in the fields of new business
and international operation. The Company will fully unleash the development vitality of each Group member as the main
body of production and operation, and have a more balanced layout in the product chain and service chain, and
continuously improve the integration and synergy ability, so as to make every effort to build the world's leading
technology-oriented engineering company. During the Reporting Period, the Group put forward an indicator system and
development path for the high-quality development stage based on the "one interest, five rates", and put forward the
internationalization operation goal of promoting the proportion of international business to 30% in three to five
years.
The Group will continue to promote technological innovation. On the one hand, the Group will pay attention to the key
core technologies and focuses on shifting from producing refined oil products to chemicals and specialty products, new
chemical materials, clean coal utilization, energy saving and environmental protection and CCUS to continue to carry
out technological research, accelerates technological integration innovation and engineering conversion; accelerates
the integrated research and development layout of the whole industrial chain in the construction of hydrogen energy
production, storage, transportation and terminal utilization, which forms the Company's technical characteristics and
continuously injects green development momentum into the high-quality development, and further promotes the integrated
development of new energy and petrochemical industries. On the other hand, the Group will pay more attention to
technological progress in the field of engineering construction and increases the research and development and
promotion of soil treatment, intelligent demolition and safety technology; intensifies the application of advanced
equipment and technology, and continuously promotes the development and industrial application of advanced tooling
represented by automatic welding and welding robots to improve intrinsic safety and production efficiency.
The Group will actively lead the new industry in the engineering industry. The Group will continue to strengthen the
integration and coordination of the entire industry chain, and coordinate the promotion of standardized design, factory
prefabrication, modular construction, standardized construction site, information management and digital delivery.
Systematically integrates design, procurement and construction to create a new operation process, promote the close
integration of 3D files and in-depth prefabrication, and promote layered operation on the construction site. Increase
the proportion of advanced tooling applications, strive to realize the transformation of engineering construction from
on-site installation to factory manufacturing + on-site assembly, continuously improve the intrinsic safety and
intrinsic quality, continue to improve the on-site operating environment, and realize the green and low-carbon
leadership in engineering construction.
The Group will actively promote the internationalization of our corporate operations. During the Reporting Period, the
Group further improved our layout in domestic and overseas markets, established five major regional market centers in
the Middle East, Southeast Asia, Central Asia, Americas and Africa. In the next step, the Group will accelerate the
development of an international business ecosystem featuring overseas cooperation with domestic partners, strong
alliances with international engineering companies, and deepening front-end services and long-term cooperation with
strategic customers. The Group will continue to increase the allocation of resources in overseas market development and
endeavored to enhance the comprehensive competitiveness of international operations, striving to stabilize the
proportion of overseas business at 1/3. The Group will give full play to the efficiency advantages of China
construction and continuously promoted the better integration of the construction model of international standards +
Chinese characteristics into overseas business, making consistent progress towards the high-end of the value chain with
a focus on the front end of the industrial chain. The Group will lay more emphasis on the internationalization of
resource allocation by continuously promoting the construction of overseas low-cost centers and localized operation
capabilities and improving the mechanism for training and introducing international talents.
The Group will strive to achieve diversified value creation. The Group will continue to explore the diversification of
its main business and business model, gradually realize a diversified operation, and transform itself from an
engineering contractor and equipment manufacturer towards an investment and financing + engineering service provider.
The Group will actively make attempts to undertake overseas engineering projects in the mode of
"investment-construction-operation", while extending investment and financing to the fields of new technology research
and development and new technology cooperation to enhance the competitiveness and value creation through investment.
The Group will cultivate and develop professional, highlysophisticated, specialized and advanced "little giants" in the
fields of new energy, new technology, new equipment and energy conservation and environmental protection, and acquire
equities, expand business areas and extend value chain through various capital operations such as mergers and
reorganizations and equity participation and control.
China's economy has great development resilience and potential, the long-term good fundamentals have not changed, after
the smooth turn of epidemic prevention and control, economic recovery will be a wave of development and tortuous
progress. In the second half of 2023, the external environment faced by the Group is still complex, the Group will
adhere to bottom-line thinking and extreme thinking, while preventing various risks, strive to promote the stable
consolidation of annual business performance, and go all out to complete the annual goals with high quality.
In terms of the scientific and technical innovation, the Group will strengthen and optimize technologies in traditional
advantages fields, and speed up integration, innovation and engineering transformation of new energy and new material
technology at the same time, and continuously enhance independent innovation capability through continuous optimization
of innovation system and mechanism. Firstly, continue to promote the reform of system and mechanism of scientific
research, optimize the mechanism of "public offer of reward for scientific and technical innovation" for major
technical problems tackling projects of the Company, stimulate innovation vitality, and improve the efficiency of
scientific and technical innovation; do a good job in overall coordination, actively make good use of relevant
innovation resources, form an "innovation consortium", continue to increase scientific and technical innovation,
promote the development of new technologies and the implementation of R&D results through multiple channels, and
realize the integration and benefit of all links of "production, teaching, research and using". Secondly, deeply study
and interpret the "Carbon Peaking and Carbon Neutrality" target and strategic deployment, transform the constraints of
the "Carbon Peaking and Carbon Neutrality" target into new opportunities for the Company's development, and
systematically carry out research from the links of carbon reduction at source, carbon reduction in process, carbon
capture at the end and carbon resource utilization; carry out research of coupled application of nuclear power and oil
refining and chemical industry, put forth efforts on development of core technical competitive power, and continue to
strengthen innovation capability for engineering technology. Thirdly, in the field of hydrogen energy, make full use of
the leading advantages accumulated by Kuqa green hydrogen projects, actively promote a number of major hydrogen energy
projects such as Ordos and Ulanqab, accelerate the construction of integrated R&D layout of hydrogen energy production,
storage, transportation and terminal utilization, promote the demonstration of hydrogen energy projects in the whole
industry. Fourthly, in the field of new chemical materials, the Group will focus on tackling technical problems of key
materials in new material field, rely on the current projects under implementation such as polyolefin elastomers,
special rubber, degradable materials, strengthen the research and construction of supporting platforms such as
polymerization and devolatilization technology of high-viscosity and ultra-high-viscosity systems, and provide support
and guarantee for accelerating the development of the Company's new chemical material technology, expanding business
fields and enhancing competitive advantages.
Summary of Financial Data and Indicators Prepared in Accordance with International Financial Reporting Standards
("IFRS")
Unit: RMB'000
Items As at 30 June As at 31 December Changes from the end of
2023 2022 2022 (%)
Total assets 77,098,012 78,682,463 (2.0)
Total equity attributable to equity holders of the Company 30,410,594 30,031,512 1.3
Net assets per share attributable to equity holders of the 6.87 6.78 1.3
Company (RMB)
Unit: RMB'000
For the six months ended 30
Items June Changes over the same period of 2022
(%)
2023 2022
Revenue 24,829,660 25,958,552 (4.3)
Gross profit 2,240,224 2,664,294 (15.9)
Operating profit 992,967 1,167,517 (15.0)
Profit before taxation 1,499,126 1,621,965 (7.6)
Net profit attributable to equity holders of the 1,317,070 1,356,259 (2.9)
Company
Basic earnings per share (RMB) 0.30 0.31 (2.9)
Net cash flow used in operating activities (1,038,507) (1,378,489) (24.7)
Net cash flow used in operating activities per share (0.23) (0.31) (24.7)
(RMB)
For the six months ended 30 June
Items
2023 2022
Gross profit margin (%) 9.0 10.3
Net profit margin (%) 5.3 5.2
Return on assets (%) 1.7 1.9
Return on equity (%) 4.3 4.6
Return on invested capital (%) 4.4 4.7
Items As at 30 June 2023 As at 31 December 2022
Asset-liability ratio (%) 60.5 61.8
End
This press release is issued by PRChina Limited on behalf of SINOPEC Engineering (Group) Co., Ltd.
About SINOPEC Engineering (Group) Co., Ltd.
The Group is a leading energy and chemical engineering company in the PRC with strong international competitiveness and can provide domestic and overseas clients with overall solutions for petrol refining, petrochemicals, aromatics, coal chemicals, inorganic chemicals, pharmaceutical chemicals, clean energy, storage and transportation facilities, environmental protection and energy saving, among other industry sectors. The Group is an integrated service provider for the whole industry chain and the whole life cycle in energy and chemical industry and can provide overall industry chain services including engineering consulting, technology licensing, project management contracting, financing assistance, EPC (engineering, procurement and construction) contracting, as well as design, procurement, construction and installation, lifting and transportation of large equipment, precommissioning and start-up.
After nearly 70 years of continuous development, the Group currently has an academician of the Chinese Academy of Sciences, three academicians of the Chinese Academy of Engineering and more than10,000 professionals. The Group has rich project management and implementation experience, and owns and cooperatively owns patents and know-how in core business areas. The Group has delivered on schedule hundreds of modern factories with enormous investment, complicated process, advanced technology and high quality to clients in more than 20 countries and regions around the world, established long-term and steady cooperative relationships with large energy and chemical enterprises at home and abroad, maintained an extensive and stable client base, and enjoys remarkable industrial influence and social reputation.
In the future, adhering to the development orientation of "Integrated Service Provider with Whole Industry Chain and Whole Life Cycle in Energy and Chemical Industry", the Group will base itself on the energy and chemical engineering construction industry, continuously broaden its business scope and extend its value chain. The Group take "Engineering Innovation" and "Value Creation" as the development engines and deepen the implementation of the six development strategies of "Value-Oriented, Innovation-Driven, Green & Clean, Talent-Based, Globalization-Targeted, Fusion & Symbiosis". The Group comprehensively improve the level of safe, efficient, green and lowcarbon service in the business chain, and fuel a new momentum in achieving the corporate vision of "building the world's leading technology-oriented engineering company".
Disclaimer
This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that the Group expects or anticipates will or may occur in the future (including but not limited to projections, targets, other estimates and business plans) are forward-looking statements. The Group's actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond the Group's control. In addition, the Group makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.
Investor and Media Enquiries:
SINOPEC Engineering (Group) Co., Ltd. - Office of the Board
Liu Jingjing /Zheng Zhexia
Tel: (86) 10 5673 0523 / (86) 10 5673 0525
Email: seg.ir@sinopec.com
PRChina Limited
Joanne Liu / Jack Liu / Mei Ning
Tel: (852) 2522 1838 / (852) 2522 1368
Fax: (852) 2521 9955
Email: seg@prchina.com.hk File: SEG Announces 2023 Interim Results
20/08/2023 Dissemination of a Financial Press Release, transmitted by EQS News. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com
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(END) Dow Jones Newswires
August 20, 2023 10:43 ET (14:43 GMT)
