惠生工程(02236) - 2018 - 年度财报

Company Information Board of Directors and Committees The company's board comprises executive and independent non-executive directors, supported by audit, nomination, and remuneration committees to ensure robust corporate governance - The Board of Directors includes executive directors Ms. Rong Wei (CEO), Mr. Zhou Hongliang, Mr. Li Zhiyong, Mr. Dong Hua, and independent non-executive directors Mr. Li Lei, Mr. Tang Shisheng, and Mr. Feng Guohua[5][6] - The company has an Audit Committee (Chairman: Mr. Li Lei), a Nomination Committee (Chairman: Mr. Tang Shisheng), and a Remuneration Committee (Chairman: Mr. Feng Guohua)[11][16][22] Registration and Office Information The company's global headquarters and principal place of business in China are in Shanghai Pudong New Area, with its registered office in the Cayman Islands and a share registrar in Hong Kong - The global headquarters, principal place of business in China, and head office are located at No. 633, Zhongke Road, Zhangjiang Hi-Tech Park, Pudong New Area, Shanghai[8][9][10][22] - The registered office is located at P.O. Box 1350, Clifton House, 75 Fort Street, Grand Cayman KY1-1108, Cayman Islands[15][17][18][19][20][34] - The Hong Kong share registrar is Hong Kong Central Securities Registrars Limited, located at 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong[24][25][26][27][34] Financial Summary Performance Overview In 2018, the company experienced a significant decline in revenue, gross profit, profit for the year, and earnings per share, indicating increased operational pressure Key Performance Indicators 2018 vs 2017 (RMB thousands) | Indicator | 2018 | 2017 | Change Rate | | :------------------------------- | :---------- | :---------- | :---------- | | Revenue | 3,256,478 | 4,124,790 | -21.1% | | Gross Profit | 498,872 | 861,158 | -42.1% | | Profit Before Tax | 72,739 | 229,124 | -68.2% | | Profit for the Year | 59,953 | 165,719 | -63.8% | | Profit Attributable to Owners of the Parent | 56,301 | 138,306 | -59.3% | | Basic and Diluted Earnings Per Share | 1.00 RMB cents | 3.00 RMB cents | -66.7% | - Revenue decreased primarily due to ongoing projects entering the late construction phase and new orders not yet reaching peak construction[54] - Profit attributable to owners of the parent declined mainly due to lower revenue and gross profit, coupled with an increase in overall expenses year-on-year[54] Assets and Liabilities Overview In 2018, the company's current assets and liabilities both decreased, leading to a decline in net current assets and net assets, while total equity remained stable Key Assets and Liabilities Indicators 2018 vs 2017 (RMB thousands) | Indicator | 2018 | 2017 | Change Rate | | :---------------- | :---------- | :---------- | :---------- | | Non-current Assets | 1,131,114 | 1,116,712 | +1.3% | | Current Assets | 4,618,231 | 6,496,159 | -28.9% | | Current Liabilities | 3,988,387 | 5,229,976 | -23.8% | | Net Current Assets | 629,844 | 1,266,183 | -50.2% | | Net Assets | 1,749,819 | 2,359,382 | -25.8% | | Total Equity | 1,749,819 | 2,359,382 | -25.8% | Business Overview Overall Review In 2018, the company launched its 'Focus and Restart' strategy, aiming to become a comprehensive energy and chemical engineering solution provider, achieving 129.8% growth in new contract value and a significant increase in uncompleted contract value - The company's strategic positioning is to be a leading domestic and internationally renowned comprehensive energy and chemical engineering solution provider[43] - In 2018, the total value of new contracts was approximately RMB 7,167.5 million (net of estimated VAT), representing a significant year-on-year increase of 129.8%[43][59] - As of December 31, 2018, the total value of uncompleted contracts was approximately RMB 13,199.1 million (net of estimated VAT), an increase of 40.1% year-on-year[43][59] Market Environment In 2018, global economic growth moderated amid international energy shifts, volatile oil prices, and strong clean energy expansion, with China and Asia-Pacific becoming key investment hubs for energy and chemicals, driving the company's international market focus - In 2018, the global economy experienced moderate growth with decelerating momentum, significant fluctuations in international oil prices, and sustained strong growth in clean energy[44][46] - The Asian market, led by China, showed robust demand, becoming a primary destination for global energy and chemical investments, with a rapid increase in private enterprise investment[47] - The company actively expanded its overseas market presence, particularly in Belt and Road regions, the Middle East, and North America, leveraging its competitive advantages in pricing and project schedule control[51][53] Performance Highlights In 2018, revenue, gross profit, and profit attributable to owners of the parent significantly decreased due to project phases and new order timing, yet new and uncompleted contract values grew substantially, indicating future business potential Key Financial Indicators 2018 vs 2017 (RMB millions) | Indicator | 2018 | 2017 | Y-o-Y Change | | :------------------------------- | :-------- | :-------- | :----------- | | Revenue | 3,256.5 | 4,124.8 | -21.1% | | Gross Profit | 498.9 | 861.2 | -42.1% | | Profit Attributable to Owners of the Parent | 56.3 | 138.3 | -59.3% | | Total New Contract Value | 7,167.5 | 3,118.6 | +129.8% | | Total Uncompleted Contract Value | 13,199.1 | 9,419.6 | +40.1% | - New contracts included 97.0% from EPC, 62.7% from petrochemical business, and 30.0% from coal chemical business[59] Business and Operations Review The company advanced key domestic projects, expanded internationally in North America and the Middle East, and invested in R&D, digitalization, and modular production to enhance competitiveness - Domestic market new contract value was approximately RMB 3,056.9 million, with 12 EPC projects underway, three of which achieved high-standard mechanical completion[60] - The international market secured 14 new overseas contracts totaling approximately RMB 4,110.6 million, primarily concentrated in North America and the Middle East[67] - Technological R&D achieved breakthroughs in CO2 efficient synthesis of chemicals, butene oxidative dehydrogenation to butadiene catalysts, and integrated dimethyl ether to ethanol technology[76][77][78] - In digital production, a 3D cloud platform was built based on cloud technology, and partnerships with Microsoft and Jiangsu University were established to drive digital transformation[80][81] - Modular production has become a core competency, successfully completing the Zhejiang Petrochemical ethylene cracking furnace modular project and the US LDPE pipe rack modular project[84] - The company received multiple awards, including 'Best Overseas EPC General Contractor' and 'Innovation Model Enterprise for the 40th Anniversary of Reform and Opening Up'[87] - In 2018, 285 new employees were recruited, and internal organizations such as the Project Finance Center and Middle East Operations Center were established to expand