青海省委组织部发布干部任前公示显示，现任海西州副州长胡颖琦拟提任省管企业领导班子正职。现任 青海省农村信用社联合社副主任吴存寿拟提任省管企业领导班子正职。现任青海银行党委副书记、行长 应海峰拟进一步使用。(人民财讯) ...

Company Overview - Huisheng Engineering (02236.HK) is a leading energy engineering EPC (Engineering, Procurement, and Construction) service provider in China, established in 1997 and listed in Hong Kong in 2012. The company specializes in technical and engineering construction services across five major fields: refining, petrochemicals, coal chemicals, new materials, and new energy [3]. Financial Performance - As of December 31, 2024, Huisheng Engineering reported total revenue of 5.647 billion yuan, representing a year-on-year growth of 46.96%. The net profit attributable to shareholders was 142 million yuan, with a significant increase of 172.21%. The gross profit margin stood at 7.88%, and the debt-to-asset ratio was 78.42% [2]. Stock Performance - Over the past month, Huisheng Engineering has seen a cumulative increase of 1.79%, and since the beginning of the year, the stock has risen by 33.8%, outperforming the Hang Seng Index, which has increased by 16.1% during the same period. The stock closed at 0.305 HKD per share, with a daily increase of 7.02% and a trading volume of 3.504 million shares [1][2]. Valuation Metrics - Currently, there are no institutional investment ratings for Huisheng Engineering. The company's price-to-earnings (P/E) ratio is 7.59, ranking 12th in the oil and gas industry, which has an average P/E ratio of -5.93 and a median of 4.06. Comparatively, other companies in the sector have lower P/E ratios, such as Zhujiang Steel Pipe (0.86) and CGII Holdings (4.06) [3].

Financial Performance - The company's revenue for 2024 reached RMB 5,647,335 thousand, a 47.0% increase from RMB 3,842,719 thousand in 2023[17] - Gross profit for 2024 was RMB 445,216 thousand, compared to RMB 227,202 thousand in 2023, marking a significant improvement[17] - The company reported a profit before tax of RMB 146,016 thousand, recovering from a loss of RMB 202,369 thousand in the previous year[17] - Net profit attributable to shareholders for 2024 was RMB 141,626 thousand, a turnaround from a loss of RMB 196,122 thousand in 2023[17] - Basic and diluted earnings per share for 2024 were both RMB 3.48, compared to a loss of RMB 4.81 per share in 2023[17] - The company's total revenue increased by 47.0% from RMB 3,842.7 million in the previous year to RMB 5,647.3 million in the current year[56] - Gross profit for the year was approximately RMB 445.2 million, up 96.0% from RMB 227.2 million in the previous year, resulting in a gross margin of 7.9% compared to 5.9% last year[57] - Net profit for the year was RMB 134.7 million, with a net profit margin of 2.4%, compared to a loss of RMB 198.4 million in the previous year[79] Assets and Liabilities - Total assets increased to RMB 12,294,126 thousand in 2024 from RMB 9,459,717 thousand in 2023, reflecting a strong growth in asset base[18] - The company's asset-liability ratio was 61.6% as of December 31, 2024, compared to 60.8% in 2023[85] - Cash and bank balances as of December 31, 2024, were RMB 3,802.5 million, representing 46.0% of current assets, up from RMB 901.8 million (16.5%) in 2023[81] Contracts and Projects - The total value of new contracts obtained in 2024 was approximately RMB 10,865.1 million, an increase of 2,563.6% year-on-year[25] - The total value of unfinished contracts as of December 31, 2024, was approximately RMB 25,719.3 million, a 10.6% increase from the previous year[25] - The company achieved 11,368,692 safe man-hours across domestic and international projects, with no lost time incidents or environmental pollution accidents[31] - The company’s overseas business accounted for over 70% of the total new contracts signed in 2024, totaling RMB 10.87 billion[33] Strategic Initiatives - The company established a green hydrogen product technology center during the year to accelerate its green transformation efforts[24] - The company aims to enhance its digital and modular capabilities to strengthen its core competitiveness in the energy and chemical engineering sector[24] - The company is focusing on the hydrogen energy industry chain, accelerating the production, storage, transportation, and application technology breakthroughs[25] - The company has made significant progress in new technologies and products, including biodegradable plastics and carbon reduction technologies[26] - The company plans to complete the Shanghai CO2 capture methanol green chemical demonstration project by November 2024, with trial operations starting in December 2024[28] Research and Development - Research and development costs increased by 45.9% to RMB 188.0 million from RMB 128.8 million[76] - The company has added 13 new authorized patents and filed 15 new patent applications during the reporting period, strengthening its intellectual property and technology reserves[41] Market and Economic Conditions - The global economic recovery remains uneven, impacting the petrochemical energy industry, which is facing challenges from fluctuating oil prices and geopolitical tensions[24] - The Chinese economy grew by 5.0% in 2024, with a total GDP of RMB 134.9 trillion, providing a stable backdrop for the company's operations[24] - The company is optimistic about the global economic recovery in 2025, despite uncertainties, and expects stable growth in the petrochemical industry driven by domestic economic policies[50] Human Resources - The group employed 1,867 staff as of December 31, 2024, an increase from 1,608 in the previous year[98] - Total employee costs for the year amounted to RMB 958.9 million, up from RMB 702.6 million in the previous year[98] - Over 30 key talents and more than 100 senior professionals were recruited to enhance the company's design capabilities and support international business expansion[46] Corporate Governance - The board of directors includes executive directors and independent non-executive directors, with changes in appointments noted[140][144] - The company emphasizes a formal and transparent policy for determining the remuneration of individual directors and employees[145] - All independent non-executive directors have confirmed their independence according to the Hong Kong Stock Exchange Listing Rules[147] Related Party Transactions - The company entered into a one-time related transaction with Huisheng Taizhou for a total contract value of RMB 19,937,000, with potential bonuses of up to RMB 2,000,000, leading to a total receivable amount of RMB 21,937,000[167] - The company has complied with the disclosure requirements for related party transactions as per the listing rules for the year ended December 31, 2024[187]

Summary of Conference Call Company and Industry - The conference call pertains to the engineering and construction industry, specifically focusing on the company "汇生工程" (Hui Sheng Engineering) and its activities in the energy and chemical sectors. Key Points and Arguments 1. **New Orders and Contracts**: The company secured new orders amounting to 10.87 billion, including significant contracts in Nigeria for PDH and PP projects, a technical service contract for a biomass formaldehyde project in Turkey, and a major MTO project in Guangxi, China [1] 2. **Technological Innovations**: The company reported 15 new patent applications and 13 new authorized patents in 2024, indicating a strong focus on technological advancement [1] 3. **Project Progress**: - The Guangxi MTO project is 100% designed, 67% procured, and 50% constructed, with major equipment installation completed [3] - The Saudi Arabia projects (DBCU and Flarabi) are progressing well, with design and procurement nearing completion [3] - The Qatar ETC project is 57% complete, with design at 96% and procurement at 69% [4] 4. **Financial Performance**: - New signed orders for 2024 are expected to significantly increase compared to 2023, reaching 10.87 billion [4] - The company achieved a positive operating cash flow of 3.08 billion in 2024, marking a significant improvement [5] - Total assets have increased, while total liabilities have also risen, primarily due to contract liabilities [5] 5. **Market Expansion**: The company plans to expand into emerging markets, particularly in Africa, Southeast Asia, the Middle East, and Europe, focusing on new energy sectors [4] 6. **Future Business Outlook**: The company aims to enhance profitability through entering new energy industries and improving internal management processes [6] 7. **Challenges in New Energy Sector**: The financial contribution from the new energy business is currently minimal, with challenges including high costs and intense market competition [7] 8. **Internationalization Efforts**: The company has established an international transformation office to enhance its global presence and align with public company standards [8] 9. **2025 Performance Outlook**: The company is committed to sustainable growth, focusing on product innovation, market expansion, customer experience, and corporate social responsibility [9] Other Important Content - The company emphasized the importance of technological innovation and ecosystem building for long-term development in the new energy sector [7] - The management expressed confidence in achieving performance growth and delivering better returns to shareholders through strategic initiatives [9]

Core Viewpoint - The company, Huisheng Engineering, reported a strong financial turnaround in 2024, with significant revenue growth and profitability recovery, indicating a positive shift in its business trajectory [1][4]. Financial Performance - The total revenue for 2024 reached approximately 5.65 billion yuan, marking a year-on-year increase of 47.0%, ending a previous downward trend [1]. - The net profit attributable to shareholders was 140 million yuan, a significant recovery from losses in the previous year [1]. - Operating cash flow improved dramatically, with a net cash flow from operating activities of about 3.09 billion yuan, up from 650 million yuan in the same period last year [2]. Business Segments - The core petrochemical segment generated approximately 4.66 billion yuan in revenue, reflecting a year-on-year growth of 54.7% [2]. - The coal chemical segment reported revenue of about 820 million yuan, an increase of 33.8% [2]. - The new energy segment achieved a breakthrough with revenue of approximately 26.8 million yuan [2]. Order Growth and Talent Acquisition - New signed orders surged to approximately 10.87 billion yuan, representing a staggering year-on-year increase of 2,563.6% [3]. - The total value of uncompleted contracts reached about 25.72 billion yuan, ensuring future revenue growth [3]. - The company expanded its workforce significantly, hiring over 30 key professionals and more than 100 senior talents, increasing total employees to 1,867, up by 259 from the previous year [3]. Green Transformation and International Strategy - Huisheng Engineering has made substantial progress in green transformation, successfully implementing technologies for green hydrogen, green ammonia, and biomass [4]. - The company has expanded its international project footprint, with overseas revenue exceeding 70% for the first time, becoming a major growth driver [4]. - Strategic collaborations with industry giants like Saudi Aramco and ADNOC have been deepened, with several high-profile projects actively progressing [4]. Valuation Perspective - The current price-to-earnings ratio is below 8 times, and the price-to-book ratio is approximately 0.4 times, indicating that the company is significantly undervalued [4].

Financial Performance - For the year ending December 31, 2024, revenue was approximately RMB 5,647,335,000, an increase of 47.0% compared to RMB 3,842,719,000 in 2023[3] - Gross profit for the year was approximately RMB 445,216,000, representing a 96.0% increase from RMB 227,202,000 in 2023[3] - The company reported a profit of approximately RMB 134,673,000 for the year, compared to a loss of RMB 198,378,000 in 2023[3] - The gross profit margin improved to 7.9% from 5.9% in the previous year[46] - The group achieved a net profit of RMB 134.7 million this year, with a net profit margin of 2.4%, recovering from a loss of RMB 198.4 million in the same period last year, which had a net profit margin of -5.2%[60] - Basic and diluted earnings per share for the year were RMB 3.48, compared to a loss per share of RMB 4.81 in the previous year[80] - The group reported a profit before tax of RMB 146.0 million, compared to a loss before tax of RMB 202.4 million in the previous year[80] - Total comprehensive income for the year was RMB 204.5 million, a turnaround from a total comprehensive loss of RMB 126.8 million in 2023[81] Contract and Project Management - The total value of new contracts for the year was approximately RMB 10,865,107,000, a significant increase of 2,563.6% from RMB 407,911,000 in 2023[7] - As of December 31, 2024, the total value of unfinished contracts was approximately RMB 25,719,315,000, an increase of 10.6% from RMB 23,255,794,000 as of December 31, 2023[7] - The company achieved 100% completion in design work for the Yangmei synthetic gas transformation project, with procurement at 92% and construction progress at 87%, aiming for completion in 2025[12] - The company completed 100% of design work and 67% of procurement for the Guangxi Huayi MTO project, with construction progress at 50%, targeting intermediate handover by December 2025[13] - The company plans to complete the Saudi Aramco DPCU project by October 2025, with design completed at 100%, procurement at 97%, and construction progress at 53%[12] - The Qatar EPC4 sulfur processing project is 57% complete, with design at 96%, procurement at 69%, and construction at 36%[14] Market Expansion and Strategy - The company is focusing on core business areas such as ethylene and cracking furnaces, propane dehydrogenation (PDH), and methanol-to-olefins (MTO) while also expanding into new energy and new materials[11] - The company is actively participating in global hydrogen and ammonia projects, aiming to secure EPC contracts in 2025[22] - The company secured a FEED contract for the Nigeria PDH+PP project, expected to convert into a lump-sum contract by 2025, and is tracking multiple LNG project opportunities in Nigeria to expand its market presence in Africa[23] - The company is focusing on expanding its overseas market strategy from "single-point breakthroughs" to "regional interactions," aiming for large-scale development in new energy projects[27] - The company plans to continue its market expansion efforts, particularly in the Middle East and Asia-Europe regions, to capitalize on growth opportunities[104] Research and Development - Research and development costs increased to RMB 188.0 million from RMB 128.8 million in the previous year[57] - The company has developed a new generation of energy-saving butene dehydrogenation catalysts, which reduce steam consumption by 30% and wastewater by 40%, enhancing its competitive edge in the butadiene technology sector[31] - The company is actively promoting biodegradable plastics and has completed the second phase of trials for a pilot plant in collaboration with Inner Mongolia Rongxin Chemical, with commercialization expected by 2025[29] - During the reporting period, the company added 13 authorized patents and submitted 15 new patent applications, strengthening its intellectual property and technology reserves[32] Financial Position and Assets - Total assets as of December 31, 2024, amounted to RMB 12,294,126, an increase from RMB 9,459,717 in 2023, reflecting a growth of approximately 30%[94][95] - The company's total liabilities were RMB 9,640,863 as of December 31, 2024, compared to RMB 7,010,934 in 2023, representing an increase of about 38%[94][95] - Current assets rose significantly from RMB 5,476,777 thousand in 2023 to RMB 8,275,207 thousand in 2024, marking an increase of about 50.5%[82] - The company's total equity increased from RMB 2,448,783 thousand in 2023 to RMB 2,653,263 thousand in 2024, reflecting a growth of approximately 8.3%[83] Human Resources and Management - Over 30 key talents and more than 100 senior talents were recruited throughout the year to enhance the design team's capabilities and support the company's future development[38] - The group employed 1,867 employees as of December 31, 2024, compared to 1,608 employees as of December 31, 2023, reflecting a growth of approximately 16.1%[79] - The board of directors believes that having the same person serve as both chairman and CEO helps execute the group's business strategy and enhance operational efficiency[133] Compliance and Governance - The audit committee, composed of three independent non-executive directors, has reviewed the annual performance and consolidated financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards and regulations[136] - The company has adopted the standard code for directors' securities transactions and confirmed compliance by all directors during the year[134] - The company has maintained at least 21.87% of sufficient public float, meeting the minimum public holding requirement set by the Hong Kong Stock Exchange[142] Economic Context - The Chinese economy grew by 5.0% in 2024, with a total GDP of RMB 134.9 trillion, providing a stable backdrop for the company's operations[8] - The global economy is expected to show moderate recovery in 2025, with significant growth differentiation and various uncertainties, including geopolitical conflicts and supply chain restructuring[41] - The petrochemical industry is anticipated to continue stable growth, supported by domestic economic policy stimulation and the acceleration of refining transformation[42] - Hydrogen energy is highlighted as a key direction for global energy technology reform, with the country expected to promote the industrialization of hydrogen energy development vigorously[42]

Financial Performance - The company recorded revenue of approximately RMB 1,837.9 million for the first half of 2024, a decrease of 2.9% compared to RMB 1,893.6 million for the same period in 2023[7]. - Gross profit for the first half of 2024 was approximately RMB 114.2 million, down 20.8% from RMB 144.1 million in the previous year[7]. - The loss attributable to equity holders of the parent company was approximately RMB 34.3 million, an improvement from a loss of RMB 104.7 million in the same period last year[7]. - The EPC segment's revenue decreased by 3.5% to RMB 1,687.2 million, primarily due to the completion of projects in China and Southeast Asia in 2023[24]. - The design, consulting, and technical services segment saw revenue increase by 3.8% to RMB 150.7 million, but gross margin dropped from 31.2% to 13.5% due to increased execution costs[25]. - The petrochemical segment's revenue increased by 33.3% to RMB 1,654.1 million, attributed to projects in the Middle East entering mid-stage[26]. - The coal chemical segment's revenue decreased by 68.1% to RMB 147.2 million, mainly due to project completions in Henan and delays in Shandong[27]. - The net loss for the period decreased by 62.0% from RMB 108.0 million in the same period last year to RMB 41.0 million, with the net profit margin improving from -5.7% to -2.2%[32]. - Other income increased by 41.0% to RMB 128.6 million, mainly due to fair value changes of investment properties and successful claims from subcontractors[29]. Contract and Project Management - The total value of new contracts obtained in the first half of 2024 was approximately RMB 2,744.0 million, an increase of 991.9% year-on-year[7]. - As of June 30, 2024, the total value of uncompleted contracts was approximately RMB 24,147.2 million, reflecting a 3.8% increase from December 31, 2023[7]. - Significant progress was made on key projects, including the completion of design work and 90% of pipeline installation for the 1.2 million tons/year ethylene project for Wanhua Chemical Group[7]. - The company signed 31 design and EPC contracts in the first half of 2024, with a total new contract value of RMB 2.74 billion[13]. - The company completed 90% of civil engineering for the Saudi Aramco DPCU project, with all equipment and materials ordered[8]. - The Qatar EPC4 sulfur processing project reached 47% overall progress, with 90% of design model review completed and 75% of civil engineering finished[8]. Market Expansion and Strategic Focus - The company is actively pursuing new market opportunities both domestically and internationally, emphasizing its core products and key customer engagements[12]. - The company has established a strong foundation in the Middle East market, focusing on ethylene and PDH/PP projects, and maintaining stable partnerships with SABIC and Saudi Aramco[14]. - The company is focusing on new energy and new materials, signing multiple EPC and preliminary service contracts in these areas[13]. - The company is advancing the industrialization of the Panjin Sanli MMA project, set to commence in late August 2024, utilizing innovative and sustainable technologies[15]. - The company is actively pursuing opportunities in emerging markets, including Russia, Central Asia, Southeast Asia, North America, and Africa, in sectors such as petrochemicals and new materials[14]. Research and Development - The company has made significant progress in developing a new generation of energy-saving butene dehydrogenation catalysts, reducing steam consumption by 30% and wastewater by 40%, lowering production costs by approximately RMB 1,400 per ton[16]. - The company has added 8 new authorized patents and filed 6 new patent applications, strengthening its intellectual property and technology reserves[16]. - The company is focusing on green energy transformation and has established a product technology center to capture global energy and chemical transformation trends[16]. - The company aims to become a leading provider of renewable energy technology solutions, aligning with international climate change initiatives[16]. Financial Position and Assets - Cash and bank balances amounted to RMB 1,248.9 million as of June 30, 2024, representing about 19.5% of current assets, up from RMB 901.8 million (16.5%) as of December 31, 2023[32]. - The company's capital expenditure for the review period was RMB 10.0 million, down from RMB 16.9 million in the same period last year[39]. - The debt-to-asset ratio increased to 75.5% as of June 30, 2024, compared to 72.7% as of December 31, 2023[34]. - The total bank and other borrowings amounted to RMB 1,104.2 million as of June 30, 2024, compared to RMB 1,090.1 million as of December 31, 2023[36]. - The company reported a net asset value of approximately RMB 206,003,000 as of June 30, 2024, compared to RMB 191,590,000 as of December 31, 2023[109]. Employee and Management - As of June 30, 2024, the company employed 1,757 staff, an increase from 1,608 employees as of December 31, 2023, with total employee costs amounting to RMB 397.1 million, representing 21.6% of the company's revenue for the period[40]. - Over 100 high-level professionals in design, project execution, and contract management have been recruited, enhancing the company's talent structure[20]. - The total compensation paid to key management personnel for the six months ended June 30, 2024, was RMB 4,204,000, up from RMB 3,760,000 in the same period of 2023, reflecting a growth of 11.7%[121]. Compliance and Governance - The company has complied with the corporate governance code and standards for securities trading during the review period[48]. - The company has implemented a foreign currency hedging policy to manage currency risks associated with its business transactions primarily conducted in RMB and USD[40]. - The company is focused on enhancing internal management and optimizing organizational structure to adapt to market changes[40].

Financial Performance - For the six months ended June 30, 2024, revenue was approximately RMB 1,837,914,000, a decrease of 2.9% compared to RMB 1,893,621,000 for the same period in 2023[1]. - Gross profit for the same period was approximately RMB 114,156,000, down 20.8% from RMB 144,058,000 in the prior year[1]. - The company recorded a loss of approximately RMB 40,962,000, a significant reduction of 62.1% from RMB 107,994,000 in the same period last year[1]. - The loss attributable to the parent company was approximately RMB 34,342,000, a decrease of 67.2% compared to RMB 104,732,000 in the previous year[1]. - The group recorded revenue of approximately RMB 1,837.9 million for the review period, a decrease of 2.9% compared to RMB 1,893.6 million for the six months ended June 30, 2023[29]. - Gross profit for the group was approximately RMB 114.2 million, down from RMB 144.1 million for the six months ended June 30, 2023, representing a decrease of about RMB 29.9 million[29]. - The group reported a pre-tax loss of RMB 34,342,000 for the six months ended June 30, 2024, compared to a loss of RMB 104,732,000 for the same period in 2023, indicating a significant improvement[78]. Contract and Project Management - The total value of new contracts (net of estimated VAT) reached approximately RMB 2,744,031,000, an increase of 991.9% compared to RMB 251,298,000 in the same period of 2023[1]. - As of June 30, 2024, the total value of unfinished contracts (net of estimated VAT) was approximately RMB 24,147,152,000, compared to RMB 23,255,794,000 as of December 31, 2023, reflecting an increase of 3.8%[1]. - The company signed a total of 31 design and general contracting contracts, with new contracts amounting to RMB 2.74 billion for the first half of 2024[13]. - The company has strengthened project management capabilities through the implementation of a unified project management platform, enhancing cost and progress control[8]. - The company has completed 2 R&D projects, 3 engineering consulting projects, and 3 engineering design projects during the review period, contributing to improved project management levels[11]. Market and Business Strategy - The company is actively pursuing global development strategies, focusing on both domestic and international markets to capitalize on the recovering energy demand[12]. - The company is focusing on core products in the domestic market, enhancing order quality, and has signed several core competitive contracts in the petrochemical and coal chemical sectors[13]. - The company is actively exploring emerging fields, enhancing research and development in new energy and new materials technologies[5]. - The overall performance of the petrochemical market showed strong operational momentum, supported by international crude oil price fluctuations[4]. - The company plans to enhance its market expansion efforts, particularly in the Middle East and Southeast Asia, to drive future growth[70]. Financial Position and Assets - As of June 30, 2024, total current assets amounted to RMB 6,388,664,000, an increase from RMB 5,476,777,000 as of December 31, 2023[57]. - The company's debt-to-asset ratio increased to 75.5% as of June 30, 2024, compared to 72.7% as of December 31, 2023[45]. - The group’s total assets amounted to RMB 10,318,593 thousand, an increase from RMB 9,459,717 thousand as of December 31, 2023[69]. - Total liabilities as of June 30, 2024, were RMB 7,916,384 thousand, up from RMB 7,010,934 thousand at the end of 2023, reflecting a rise of 12.9%[69]. - The company's equity totaled RMB 2,402,209 thousand as of June 30, 2024, down from RMB 2,448,783 thousand as of December 31, 2023, representing a decline of approximately 1.9%[59]. Research and Development - The company has made significant breakthroughs in key technology transfers during the review period, enhancing its R&D capabilities in new materials and processes[15]. - The group’s research and development costs remained relatively stable at RMB 58,644,000 for the six months ended June 30, 2024, compared to RMB 58,708,000 in 2023[73]. - The company is collaborating with Dalian Institute of Chemical Physics on catalytic technology, which is expected to significantly reduce investment, energy consumption, and carbon emissions in ethylene production[16]. - The company has developed a new generation of energy-saving butene dehydrogenation catalysts, reducing steam consumption by 30% and wastewater by 40%, leading to a further decrease in production costs of butadiene by approximately RMB 1,400 per ton[18]. Compliance and Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules, ensuring compliance throughout the review period[99]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial statements and confirmed compliance with relevant accounting standards[101]. - The company has maintained its compliance with the standards for securities trading by directors during the review period[100]. Employee and Operational Efficiency - Employee costs totaled RMB 397,100,000, representing 21.6% of the group's revenue, an increase from 15.5% in the previous year[53]. - The group employed 1,757 employees, up from 1,608 employees as of December 31, 2023[53]. - Selling and distribution expenses rose by 25.4% to RMB 25.7 million, mainly due to increased overseas marketing activities and accrued bonuses for sales staff[36]. - The company has introduced over 100 high-level professionals in design, project execution, and contract management, enhancing talent structure and quality[26].

Financial Performance - The company's gross profit margin for the year was 5.9%, compared to a gross profit margin of -4.5% in the same period last year[22]. - Total revenue for the year ended December 31, 2023, was RMB 3,842.7 million, a decrease of 17.4% from RMB 4,658.8 million in 2022[50]. - Gross profit for the same period was RMB 227.2 million, compared to a gross loss of RMB 208.3 million in 2022, indicating a significant recovery[50]. - The net loss for the year was RMB 198.4 million, a reduction from a net loss of RMB 1,197.4 million in the previous year, reflecting improved financial performance[50]. - Cash flow from operating activities was RMB 651.5 million, a turnaround from a negative cash flow of RMB 594.9 million in 2022[37]. - The company's net loss for the year significantly decreased by 83.4% to RMB 198.4 million from RMB 1,197.4 million in the previous year[58]. - Total comprehensive income for the year amounted to RMB (126.8) million, compared to RMB (1,069.7) million in 2022[58]. Assets and Liabilities - As of December 31, 2023, the company's trade receivables and contract assets amounted to RMB 1,070,771,000 and RMB 2,171,402,000, respectively[6]. - Non-current assets totaled RMB 3,982.9 million, slightly down from RMB 4,037.5 million in 2022[55]. - Current assets increased to RMB 5,476.8 million from RMB 4,906.1 million in the previous year[55]. - Current liabilities rose to RMB 5,188.3 million, up from RMB 4,797.8 million in 2022[55]. - The company's cash and bank balances increased to RMB 901.8 million from RMB 383.6 million in the previous year[55]. - Non-current liabilities totaled RMB 1,822,674 thousand as of December 31, 2023, an increase of 16% from RMB 1,570,123 thousand in 2022[93]. - The net assets of the company were RMB 2,448,783 thousand, down from RMB 2,575,601 thousand in the previous year, reflecting a decrease of approximately 5%[93]. - Total equity attributable to the owners of the parent company was RMB 2,463,491 thousand, a decrease of 5% from RMB 2,588,053 thousand in 2022[93]. Revenue Recognition and Impairment - The company has implemented a percentage-of-completion method for revenue recognition, which involves significant management estimates regarding contract costs and completion[2]. - The company made impairment provisions of RMB 597,055,000 for trade receivables and RMB 448,410,000 for contract assets as of December 31, 2023[6]. - The expected credit loss assessment for trade receivables involves significant judgments and estimates made by management, including past payment records and forward-looking factors[6]. - The company has disclosed relevant information regarding revenue recognition and impairment provisions in the notes to the consolidated financial statements[6]. Operational Efficiency - The company has seen a reduction in the impact of additional labor costs and project costs, leading to a gradual recovery of gross profit margin to normal levels[24]. - Sales and distribution expenses decreased by 49.1% to RMB 28.2 million from RMB 55.4 million in the previous year, focusing marketing resources on high-competitive projects[33]. - Other expenses decreased by 32.2% to RMB 170.5 million from RMB 251.6 million, primarily due to impairment provisions related to specific EPC projects in the previous year[35]. - The company’s financial and contract asset impairment losses were reduced to RMB 32.5 million from RMB 556.8 million in the previous year, indicating improved asset management[50]. - The company’s basic and diluted loss per share improved to RMB (4.81) from RMB (29.10) in the previous year, reflecting better operational efficiency[50]. Corporate Governance and Management - The group has established and implemented an environmental management system in accordance with GB/T 24001–2004/ISO14001:2004 standards, receiving certification from a third-party organization[78]. - The group actively promotes a "green engineering" development strategy, adhering strictly to environmental laws and regulations[78]. - The group has a formal and transparent policy for determining the remuneration of individual directors and employees, which is crucial for attracting and retaining skilled personnel[82]. - All executive directors have entered into three-year service contracts, with provisions for termination with written notice of no less than six months[82]. - The board believes that attracting, motivating, and retaining skilled and experienced personnel is significant for the long-term success of the group[82]. - The group has received annual confirmations regarding the independence of its independent non-executive directors as per the Hong Kong Stock Exchange listing rules[84]. - The group did not engage in any arrangements during the year that would allow directors or key executives to acquire rights to purchase shares or bonds of the company[84]. Shareholder Information - The shareholding structure indicates that Wison Holdings (Group) Limited holds 75.82% of the company’s shares[119]. - The executive director Zhou Hongliang holds 3,250,000 shares, representing 0.08% of the company[114]. - The executive director Zheng Shifeng holds 2,250,000 shares, representing 0.06% of the company[114]. - The company has maintained a public float of 21.87% as of the report date, complying with the minimum public shareholding requirement[193]. Contracts and Agreements - The company provides integrated services covering the entire project cycle, including feasibility studies, consulting services, proprietary technology, design, engineering, procurement, and construction management[97]. - The total contract value for the Wison Engineering's EPCIC phase tops out at RMB 120,000,000, covering various costs including employee wages and management fees[134]. - Wison Engineering expects to receive a total amount of RMB 121,500,000 from the EPCIC phase contract, including a performance bonus of up to RMB 1,500,000 for efficient project delivery[134]. - The anticipated revenue from the top surface engineering design contract is RMB 37,422,000 as of December 31, 2023[131]. - The total expected receivable amount from the top surface engineering design contract will not exceed RMB 45,000,000[131]. - The engineering design framework agreement is set to expire on December 31, 2025, with annual transaction limits of RMB 260 million for the years ending December 31, 2023, 2024, and 2025[191]. Risk Management - The group faces multiple risks and uncertainties that may impact its business, financial condition, or operating performance[78]. - The group’s governance structure emphasizes effective risk management and internal control systems, ensuring transparency in reporting and compliance with relevant rules and regulations[180].

Financial Performance - For the year ended December 31, 2023, the revenue was approximately RMB 3,842,719,000, a decrease of 17.5% compared to RMB 4,658,780,000 in 2022[1] - The gross profit for the year ended December 31, 2023, was approximately RMB 227,202,000, an increase of approximately RMB 435,502,000 compared to a gross loss of RMB 208,300,000 in 2022[1] - The net loss for the year ended December 31, 2023, was approximately RMB 198,378,000, a reduction of approximately RMB 999,008,000 compared to a net loss of RMB 1,197,386,000 in 2022[1] - The total revenue for 2023 was RMB 3,842.7 million, a decrease of 17.5% compared to RMB 4,658.8 million in 2022[101] - The group reported a net loss attributable to equity holders of the parent of RMB 196.1 million for 2023, compared to a loss of RMB 1,185.5 million in 2022[173] - The net loss for the year was reduced by 83.4% to RMB 198.4 million, down from RMB 1,197.4 million in the previous year, resulting in a net margin of -5.2%[108] Contract and Project Management - The total value of new contracts for 2023 was approximately RMB 407,911,000, significantly lower than RMB 11,312,845,000 in the same period of 2022[7] - As of December 31, 2023, the total value of uncompleted contracts was approximately RMB 23,255,794,000, a decrease of 13.0% from RMB 26,724,003,000 as of December 31, 2022[7] - The company is focusing on expanding its presence in the new energy and new materials sectors to capture new market opportunities[9] - The company is enhancing its project management capabilities and has achieved significant results in QHSE management[16][17] - The company emphasized project management capabilities and risk control for overseas projects, enhancing core competitiveness[48] - The company achieved 13,194,640 safe man-hours across domestic and international projects, with all HSE management indicators within target control ranges[52] Technological Advancements and Innovations - The company has established a product technology center focused on new businesses, technologies, and products, aiming to capture global energy transformation trends[33] - The company has successfully implemented innovative carbon four separation technology, reducing energy consumption by 26% and wastewater by over 90% compared to traditional methods[31] - The company has made significant breakthroughs in key technologies, including the commercialization of ethane catalytic oxidation dehydrogenation technology for ethylene production[60] - The company has developed a new generation of energy-saving butene oxidation dehydrogenation catalyst, reducing steam consumption by 30% and wastewater by 40%, with production costs lowered by approximately RMB 1,400 per ton of butadiene[61] - The company is independently developing 1,3-propanediol catalysts and processes, which are expected to become a significant competitive advantage in the new materials technology field[62] Market Expansion and International Strategy - The company is actively expanding into emerging markets, securing preliminary consulting contracts for projects in Nigeria and participating in bidding for projects in Africa and Indonesia[27] - The company has established a strong business foundation in the Middle East, focusing on ethylene and PDH/PP projects, and is actively pursuing renewable energy and green hydrogen opportunities[57] - The company is actively pursuing international market opportunities, maintaining a global development strategy to capture emerging market chances[54] Financial Management and Cost Control - The total capital expenditure for the year was RMB 22.7 million, up from RMB 13.9 million in 2022[140] - The total assets decreased from RMB 4,037.5 million in 2022 to RMB 3,982.9 million in 2023[153] - The total equity decreased from RMB 2,575.6 million in 2022 to RMB 2,448.8 million in 2023[154] - Cash and bank balances as of December 31, 2023, were RMB 901.8 million, representing 16.5% of current assets, up from RMB 383.6 million (7.8%) in 2022[109] - Administrative expenses increased by 19.8% from RMB 258.7 million to RMB 309.8 million, mainly due to increased management personnel and office building maintenance costs[127] Industry Challenges and Outlook - The petrochemical industry faced significant challenges in 2023, with fluctuating crude oil prices impacting production costs and revenue risks[39] - The outlook for 2024 indicates a complex international situation, but the global economy is expected to maintain steady recovery, positively impacting the petrochemical industry[87] Awards and Recognition - The company received 7 various design awards in 2023, including a first-class design award for the 300,000 tons methanol-to-olefins project from Shandong Yangmei Hengtong[21] - The company received eight awards for outstanding consulting achievements in 2023, reflecting its strong performance in engineering consulting[53] Compliance and Reporting - The company has adopted new and revised International Financial Reporting Standards in the current financial statements, impacting the disclosure of significant accounting policies[185] - The company disclosed significant accounting policy information in its financial statements, which is expected to influence the decisions of primary users of the financial statements[185]