DJ [Press Release] SEG Announces 2025 Interim Results
EQS Newswire / 17/08/2025 / 21:58 UTC+8
Press Release
(For immediate release)
SEG Announces 2025 Interim Results
Achieving Milestones in Operations and Expanding Overseas Markets
(17 August 2025, 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 2025 (the "Reporting Period").
During the Reporting Period, the Board, the management, and all employees worked in unity in optimizing existing
assets, seeking growth, strengthening foundations, and managing risks. We fully optimized production and operations.
With steadfast commitment to high quality development to counter external uncertainties, we achieved a series of new
progress and accomplishments.
First, we upheld our positioning of "technological innovation plus engineering services", enhancing our value creation
capabilities in engineering services, technological innovation, and capital operations, with business performance
growing for three consecutive years. During the Reporting Period, the Group's ongoing projects progressed steadily,
generating revenue of RMB 31.559 billion, up 10.1% year on year. With synergistic advantages in engineering,
technology, and capital, the Group achieved a net profit of RMB 1.388 billion, up 4.8% year on year. During the
Reporting Period, the Group continued driving technological innovation, with newly signed technology development,
licensing, and transformation contracts reaching RMB 720 million, steadily enhancing our research profitability. Our
technology driven advantages led to steady growth and rising share in front-end and EPC businesses. This improved
revenue structure has enabled the Company to maintain strong profitability and resilience amid intense market
competition.
Second, we adhered to the "customer-centric" philosophy, building a competitive edge through "high level front end
engineering capabilities plus optimal cost project execution capabilities", achieving growth both in scale and quality
of market development. During the Reporting Period, the Group signed EPC contracts for large scale domestic and
overseas projects including the Sinopec Maoming Refinery Transformation and Ethylene Quality Enhancement Project and
the Hassi Messaoud Refinery in Algeria, with newly secured contract value hitting a record high for the period, up
42.1% year on year to RMB 71.158 billion. Our order structure continued to improve, with front end, design, and EPC
contracts accounting for 80% of new orders, further strengthening the foundation for high quality growth. During the
Reporting Period, the Group's overseas orders maintained rapid growth, with new contracts reaching USD 4.3 billion, a
robust year-on-year increase of 82.7%, accounting for 43.5% of the total value of newly signed contracts. The Group's
front end capabilities have gained broader recognition in international markets. During the Reporting Period, the Group
signed the FEED contract for the ADNOC NGL-5 Natural Gas Condensate Processing Project in the UAE, and in July 2025
signed a FEED+convertible EPC contract for the ACWA Yanbu large-scale green hydrogen project in Saudi Arabia.
Third, we remained committed to the principle of "investor-oriented governance", focusing on capital market concerns,
enhancing corporate governance, and driving value realization, with continued improvements in the quality of our listed
company status. During the Reporting Period, the Group advanced its "Green and Clean" strategy by establishing Sinopec
Environmental Technology Co., Ltd., a specialized platform for environmental management with a view to capture the
trillion-RMB markets and contribute to protecting clear waters, blue skies, and clean soil. The Group's Wind ESG rating
was elevated to AA, maintaining the highest level in the industry; and we won the "2024 Best ESG Practice Award" among
Chinese listed companies from Wind. The Group's ESG case was also selected for the demonstration list by the Ministry
of Ecology and Environment. The Board attaches great importance on shareholder returns, and shares the Company's high-
quality development results through ongoing "share buyback + cash dividend" programs. Considering profitability,
shareholder returns, and sustainable development needs in the future of the Company, the Board resolved to distribute
an interim dividend of RMB 0.160 per share. The payout amount set new records since the Company's listing.
Chairman of SEG, Mr. JIANG Dejun said: "as the 14th Five-Year Plan draws to a close, the Board will lead all employees
in firmly upholding the six fundamental principles of "quality, safety, environmental protection, compliance,
stability, and integrity". We will strengthen comprehensive risk prevention and control, and strive to improve
operational performance and value creation, and ensure a decisive victory in concluding the 14th Five-Year Plan. The
Company has achieved remarkable results in high-quality development since the start of the 14th Five-Year Plan, and its
image as "industry leader in the engineering industry and a top performer in the capital market" has become
increasingly prominent. Currently, we are actively formulating the 15th Five-Year Plan. With a global vision, we are
building an internationalized operation as a new growth engine for the Company's high-quality development; building an
overseas operating model that integrates "global rules with Chinese efficiency" enchancing dual strengths in
"technology + front-end engineering" and "cost-efficient project execution" taking concrete measures to prevent major
risks, and striving to ensure that overseas projects can be acquired, executed well, and deliver real benefits. We will
look to the future and actively lead the industrialization of the engineering and construction industry, empowering the
industry through "integrated collaboration, technological innovation, digital transformation, intelligent
manufacturing, green and low-carbon development" to pave way for high-quality growth in refining and chemical
engineering. Guided by the principles of "product excellence, brand distinction, innovation leadership, and modern
governance", we will plan scientifically for the future, build a solid foundation for growth, accelerate our progress
toward becoming a world class enterprise, and deliver superior returns to shareholders, contribute to society, and
benefit our employees."
Business Review and Highlights
Quantitative and qualitative increase in market development
During the Reporting Period, the value of new contracts signed by the Group was RMB71.158 billion, hitting a new record
high for the same period, representing a year-on-year increase of 42.1%. Among which, the value of newly signed
domestic contracts was approximately RMB40.182 billion, representing a year-on-year increase of 21.3%; the value of
newly signed overseas contracts was approximately USD4.302 billion, representing a year-on-year increase of 82.7%.
In the domestic market, the Group continued to maintain overall competitiveness to continuously expand strategic
emerging business such as new technologies, new materials and new energy while enhancing its core advantages in
traditional businesses. During the Reporting Period, the representative newly signed domestic contracts included the
EPC contract for the Maoming Ethylene Project with a total contract value of approximately RMB11.631 billion; the EPC
contract for certain supporting refining units of Sinopec Luoyang Million-ton Ethylene Project (the "Luoyang Ethylene
Project") with a total contract value of approximately RMB3.291 billion; the EPC contract for Sinopec Jiujiang 1.5
Million-ton/Year Aromatics and Refining Supporting Renovation Project (the "Jiujiang Aromatics Project") with a total
contract value of approximately RMB1.961 billion; and the EPC contract for the MTO and olefin separation unit of China
Energy Shenhua Baotou Coal-to-Olefin Upgrading Demonstration Project (the"Shenhua Baotou MTO") with a total contract
value of approximately RMB1.697 billion. During the Reporting Period, the Group signed 197 new contracts in the
emerging business fields with the value of approximately RMB7 billion. Among them, 35 contracts were awarded in the
clean energy/new energy fields, with the value of new contracts of approximately RMB1.6 billion; 162 contracts were
awarded in the emerging fields such as new materials, new technologies, energy conservation and environmental
protection, with the value of new contracts of approximately RMB5.4 billion.
In the overseas market, the Group strengthened the alliance with international peers and enhanced high-level mutual
visits and promotional exchanges with strategic clients, thereby continuously expanding and optimizing our overseas
market development. During the Reporting Period, the representative newly signed overseas contracts included the FEED +
convertible EPC contract for the UAE NGL Project; contract for the feasibility study of the project regarding the
production of aviation fuels from biomass using gasification in Vietnam; the EPC contract for the Hassi Refinery
Project in Algeria with a contract value of approximately USD2.058 billion; and the EPC contract for the polyethylene
and utilities project of the Silleno Petrochemical Complex Project in Kazakhstan (the "Kazakhstan Silleno PE & UIO
Project") with a contract value of approximately USD1.902 billion.
Steady progress in the construction of key projects
-- North Huajin United Petrochemical Fine Chemical and Raw Material Engineering Project (the "Aramco Huajin Project")
(EPC): the project was in the peak stage of construction and installation with an overall progress of nearly 80%.
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DJ [Press Release] SEG Announces 2025 Interim Results -2-
-- PetroChina Jilin Petrochemical Refining and Chemicals Transformation and Upgrading Project Ethylene Plant ("Jihua
Transformation and Upgrading Project") (EPC): the project was completed and delivered, and officially entered the
stage of inputting production materials and conducting trial operation.
-- Maoming Ethylene Project (EPC): the project was in the stage of detailed design, and civil works commenced on site
with an overall progress of over 20%.
-- Lianhong Gerun (Shandong) Integrated Project of New Energy Materials and Biodegradable Materials ("Lianhong New
Materials Project") (EPC): the project was in the peak stage of construction and installation with an overall
progress of over 70%.
-- China Coal Yulin Coal Deep Processing Base Project ("China Coal Yulin Coal Chemical Project") (EPC): the project
was in the stage of detailed design, and civil works commenced on site with an overall progress of over 10%.
-- SINOPEC SABIC Petrochemical Fujian Gulei Ethylene and Downstream Deep Processing Consortium Project ("SABIC Mangguo
Ethylene Project") (EPC): the project was in the peak stage of construction and installation with an overall
progress of nearly 70%.
-- Packages P1 and P2 of Saudi Aramco's Riyas NGL Project ("Saudi Riyas Project") (EPC): the design stage of the
project was almost completed, and the project is entering the construction stage with an overall progress of over
30%.
-- Tank Farm and Integration Project with SATORP Refinery under Saudi AMIRAL Project ("Saudi AMIRAL Project") (EPC):
the design work of the project was substantially completed, and the project is currently in the stage of
procurement and construction with an overall progress of over 40%.
-- Saudi Aramco's Jafurah Gas Expansion Project Phase III ("Saudi Jafurah Project Phase III") (EPC): The project was
contracted in June 2024 and is currently in design and procurement stage. The construction work has started with an
overall progress of over 20%.
-- Saudi Aramco's Crude Oil Pumping Station Upgrading and Improvement Project (EPC): the project was substantially
completed and was in the final stage with an overall progress of over 90%.
-- Kazakhstan Silleno Project: (1) the ethane cracking (ECU) project (EPC) is currently in the stage of design and
procurement, construction work has been initiated with an overall progress of over 20%. (2) polyolefin and
utilities (PE & UIO) project (EPC) was contracted and related work was commenced.
-- Algerian Hassi Refinery Project (EPC): the project is currently in the peak stage of design and procurement, and
construction preparations have been initiated with an overall progress of over 10%.
-- Algerian LNG/MTBE (EPCC) Project: the design and procurement of the project was substantially completed, and the
project is currently in the peak stage of construction with an overall progress of over 60%.
Continuous progress in technology innovation
During the Reporting Period, leveraging our strengths in project integration, innovation, and engineering
transformation, the Group continuously expanded open cooperation in science and technology innovation. We organized
targeted technical exchanges with relevant institutes of the Chinese Academy of Sciences, Tsinghua University, Beijing
University of Chemical Technology, and other universities, and deepened cooperation in areas such as carbonyl
synthesis, green chemistry, energy conservation and carbon emission reduction, and CCUS. We also explored technology
development and collaboration with companies such as NEXANT, SABIC, and TR, advancing the global reach of our
technologies. After the Reporting Period, we successfully hosted the 12th World Congress of Chemical Engineering and
the 21st Asia Pacific Confederation of Chemical Engineering Congress, Sub Forum 12 on "Process Industry Innovation and
Process Systems Engineering Reinvention". The meeting focused on intelligent manufacturing, digital enablement, and
green and low carbon development, attracting nearly 200 global experts, scholars, corporate representatives, and
industry leaders for knowledge exchange and joint exploration of new paths for technological innovation and high
quality growth in the industry.
During the Reporting Period, the Group focused its efforts on key core technologies, including (1) Sinopec Tianjin's
150,000 tons/year ALL-PE package technology development and industrial demonstration application plan is progressing.
This series of high performance polyethylene products have the characteristics of high strength, wear resistance,
corrosion resistance and good biocompatibility, and have huge market potential especially in high-end medical materials
and new energy materials. (2) Sinopec Hainan's 60,000t/year PBST biodegradable material industrialization technology
development and demonstration project has successfully produced qualified PBST products. Its products are of great
significance to solve global white pollution and promote green and low-carbon development. (3) Sinopec Maoming's 50,000
tons/year polyolefin elastomer (POE) industrial demonstration project has been successfully launched and qualified
products have been produced. It has provided high-performance material solutions for the fields of new energy,
automobiles and electronics. (4) The project "Research on the Application of Flux-Cored Wires in Petrochemical Carbon
Steel Pipes" has successfully passed the acceptance check, improving construction efficiency and quality.
During the Reporting Period, the Group signed 187 new technology development contracts of various types with a total
contract value of RMB469 million, and 38 new technology licensing and technology transformation contracts with a total
contract value of RMB251 million.
During the Reporting Period, the Group filed 356 new patent applications, of which 71.9% were invention patents; and
103 newly licensed patents, of which 44.7% were invention patents. As at the end of the Reporting Period, the Group had
4,555 valid patents, of which 52% were invention patents. The quality of patents was consistently optimized.
During the Reporting Period, the Group received a total of 34 science and technology progress awards in scientific and
technical innovation and engineering construction fields at the provincial and ministerial or above level. The Group
also received seven provincial and ministerial-level quality engineering awards.
Leading new industrialization in the engineering and construction industry
The Group develops new quality productivity and builds its core competitiveness around innovation and practicality.
Artificial intelligence applications
During the Reporting Period, the Group continued to explore innovative applications of "AI for Science, AI for Design,
AI for Engineering, AI for Construction and AI for Operation". We have conducted a number of research projects on AI,
including in the field of design, building knowledge graphs to enhance design efficiency, exploring the transition from
traditional to generative design, and in the field of construction, applying AI to optimize whole lifecycle engineering
plans, shorten iteration cycles, improve scheduling, and boost overall construction efficiency. We organized research
on smart design special projects in 13 key areas, including ethylene devices and HAZOP process safety, and formed
professional models in various scenarios, such as design smart review, smart process safety analysis, and structural
smart design. During the Reporting Period, the Group has already achieved key milestones in areas such as plant wide
process optimization, intelligent drawing review, 3D model verification, and smart piping design.
Advanced automation technology and robot substitution
During the Reporting Period, the Group promoted advanced equipment and steadily shifted from conventional construction
methods to a model characterized by "standardized lean design, factory based manufacturing, and modular installation".
We are strengthening integrated capabilities across collaborative design, supply chain management, constructability
studies, and project interface management, thereby enhancing quality and value creation across the industrial chain.
Through digital and intelligent enablement, including the deployment of "machine OEM" smart equipment and automated
production lines, we are transforming production organization, improving construction efficiency, and enhancing safety
performance. We are advancing intelligent operations and maintenance, extending the scope and depth of digital plant
delivery, developing a "digital twin" O&M platform, and piloting remote technical and intelligent support service
centers for process operations.
During the Reporting Period, the Group continued to promote the research and development and application of
high-efficiency automation technology such as automatic welding robots, intelligent equipment for intelligent welding
demonstration production lines, remote control construction machinery and industrial robots, so as to effectively
reduce costs and improve efficiency. During the Reporting Period, the Group continued to build the Efficient Automation
Technology System and compiled a list of 86 high-efficiency construction equipment applications; prepared the
Application Guide for Engineering Construction Intelligent Equipment, introducing 8 application equipment for welding,
commissioning, inspection and measurement scenarios, 12 application equipment for supply chain intelligent management,
intelligent engineering, green and low-carbon development and factory-based manufacturing scenarios, as well as
intelligent equipment for special scenarios such as inspection and repair, demolition and nondestructive testing.
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DJ [Press Release] SEG Announces 2025 Interim Results -3-
Informatization management and digital application
During the Reporting Period, the Group continued to optimize and integrate its corporate management systems and
management processes, and promoted the data integration and the upgrading of integrated platforms for project
management, construction management, intelligent construction sites and operation management businesses in accordance
with the information application framework 2.0. The Group empowered supply chain collaboration through digital
technology to develop intelligent supply chain management capabilities throughout the project life cycle, and
implemented intelligent management of human resources, machinery and equipment, materials and other resources on
construction sites, and formed standard procedures and intelligent management measures for the construction processes
such as organization, operation, progress, quality and safety, to create standardized intelligent construction sites.
Maintaining a good performance of QHSE
During the Reporting Period, the Group had 1,770 on-going domestic and overseas projects with over 100,000 on-site
employees on average per day. As at the end of the Reporting Period, the cumulative safety labor hours were RMB165
million with no safety, quality or environmental protection incidents reported, achieving the goal of safe,
high-quality and clean production.
During the Reporting Period, the Group comprehensively promoted the establishment of the work safety standardization
team, continuously required three types of key management personnel including group leaders, team leaders and
subcontractors to provide services with certification, and completed the training covering all the strategic
subcontractors. The special evaluation and inspections on the design of pressure vessels and pressure pipelines were
carried out to reduce the HSE risks from the source. The Group developed and established an operation supervision
platform for "major hazardous projects" which adopts three-level control and whole-process informatization dynamic
monitoring and establishes a problem database in the refining and chemical engineering segment. Focusing on the four
major goals of carbon reduction, pollution reduction, efficiency improvement and green development, the Group initiated
the second stage of green enterprise action for energy conservation and emission reduction at the design source, and
comprehensively promoted green construction.
Business Prospects
The Group has set its target for market development of RMB63 billion for domestic market and USD5 billion for overseas
market at the beginning of the year. Looking forward to the second half of the year, the Company will fully implement
the work requirements of the Board, focus on tasks related to production and operation as well as reform and
management, make every effort to achieve the annual production and operation targets. In the second half of the year,
the Group will focus on the following tasks:
Firstly, the Group will adjust the structure to create new growth and strengthen market development with greater
efforts. Domestically, the Group will seize market opportunities and focus on tracking services and development of key
projects to strengthen our traditional advantages in petroleum chemical, coal chemical, and natural gas markets;
actively explore new fields such as high-end carbon materials, sustainable aviation fuel, green hydrogen, green
ammonia, and green methanol to foster new growth engines. The Group will accelerate its expansion into new markets,
expand its customer base and make every effort to explore new opportunities in the market. Internationally, the Group
will increase exchanges and cooperation with international energy licensors, high-quality strategic clients and
engineering service peers. The Group will firmly pursue high-quality development in high-end and front-end businesses,
extend to the front end of the engineering services value chain, focus on consulting, FEED, detailed design, and
procurement, with construction-end businesses as supplements, so as to enhance the technological content and efficiency
of engineering services. The Group will continue to deepen its development in traditional advantageous markets such as
the Middle East, Central Asia and North Africa, while increasing its efforts in exploring emerging markets. Building on
the advantages in traditional refining and chemical products, the Group will expand into new energy business such as
green hydrogen, blue ammonia, green ammonia and circular economy.
Secondly, the Group will strengthen project management to promote the improvement of profitability. The Group will give
full play to the advantages of an integrated whole industry chain, optimize the whole process of project management,
and enhance the profitability of the entire chain of engineering construction. The Group will accelerate the promotion
and application of research results such as design optimization and constructability, accelerate the application of
advanced automation technology of "replacing labor with machines", and promote the construction of low-cost centers in
the Middle East. The Group will continue to improve its contract performance capabilities, strengthen the risks
identification and management in the whole process of projects, and further improve the management of schedule, revenue
and cost planning, as well as contract modification and process settlement. By deepening the construction of QHSE
management system, the Group strives to promote the efficiency of the management system, thereby laying a solid
foundation for safe, environmentally friendly and green development.
Thirdly, the Group will adhere to an innovation-driven strategy and enhance the leading and driving role of research
and development. The Group will leverage its advantages in the whole industry chain, technology, talents and capital to
accelerate the deployment of technologies in new areas. Through strengthening open cooperation in scientific and
technological innovation,
effectively organizing the sourcing of technology with scientific research institutes and universities, the Group will
accelerate the development of scientific and technological innovations and transformation and deepen technological
cooperation with internationally renowned patent holders and engineering companies. The Group will accelerate the
deployment of AI intelligent design, actively utilize digital technologies to upgrade traditional industries while
deploying its resources in future industries. The marketing and promotion of the Group's technologies will be further
strengthened, so as to continuously enhance the reputation and influence of the Group's technologies.
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
2025 2024 2024 (%)
Current assets 80,703,154 73,465,738 9.9
Non-current assets 7,697,040 8,047,601 (4.4)
Total equity attributable to equity holders of the 31,968,263 31,512,063 1.4
Company
Net assets per share attributable to equity holders 7.28 7.17 1.4
of the Company (RMB)
Unit: RMB'000
For the six months ended 30
June Changes over the same period of
Items 2024 (%)
2025 2024
Revenue 31,558,914 28,654,028 10.1
Gross profit 2,599,279 2,508,158 3.6
Operating profit 1,159,485 936,440 23.8
Profit before taxation 1,609,334 1,519,455 5.9
Net profit attributable to equity holders of the Company 1,383,520 1,319,795 4.8
Basic earnings per share (RMB) 0.32 0.30 4.8
Net cash flow generated from/ (used) in operating 3,300,741 (4,163,942) -
activities
Net cash flow generated from/ (used) in operating 0.75 (0.94) -
activities per share (RMB)
For the six months ended 30 June
Items
2025 2024
Gross profit margin (%) 8.2 8.8
Net profit margin (%) 4.4 4.6
Return on assets (%) 1.6 1.6
Return on equity (%) 4.3 4.2
Return on invested capital (%) 4.4 4.3
Items As at 30 June 2025 As at 31 December 2024
Asset-liability ratio (%) 63.8 61.3
End
This press release is issued by PRChina Limited on behalf of SINOPEC Engineering (Group) Co., Ltd.
About SINOPEC Engineering (Group) Co., Ltd.
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