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中石化炼化工程(02386) - 2019 - 年度财报
SINOPEC SEGSINOPEC SEG(HK:02386)2020-03-22 10:19

Business Focus and Strategy - Sinopec Engineering reported a significant focus on providing comprehensive solutions in various sectors, including petroleum refining and clean energy, with over 60 years of development experience[9]. - The company aims to enhance its exploration in renewable energy and new materials, aligning with its vision to become a world-class engineering company[9]. - The company actively participated in the "Belt and Road" initiative, signing several contracts in countries like Saudi Arabia and Oman[32]. - The company focused on optimizing resources to control subcontracting and procurement costs, ensuring safety, quality, progress, and expenses were all under control[32]. - The company emphasized technological innovation and collaboration with globally recognized patent holders to enhance its R&D capabilities[32]. - The company is actively developing and promoting new technologies for product quality upgrades and energy conservation, contributing to sustainable development in the energy and chemical industry[39]. - The company intends to strengthen its international presence by leveraging the "Belt and Road" initiative and expanding into new markets in Africa, South Asia, and South America[62]. Financial Performance - Total revenue for 2019 reached RMB 52,261,051 thousand, an increase of 11.1% compared to RMB 47,019,024 thousand in 2018[18]. - Operating profit rose significantly by 40.5% to RMB 2,017,007 thousand from RMB 1,435,534 thousand in the previous year[18]. - Net profit attributable to equity holders increased by 30.0% to RMB 2,183,457 thousand, compared to RMB 1,679,472 thousand in 2018[18]. - The company's gross profit margin decreased to 10.5% in 2019 from 11.0% in 2018[19]. - The net profit margin improved to 4.2% in 2019, up from 3.6% in 2018[19]. - Basic earnings per share rose to RMB 0.49, a 30.0% increase from RMB 0.38 in 2018[18]. - The total revenue for the group in 2019 was RMB 52.261 billion, representing an 11.1% year-on-year increase, primarily driven by several large projects reaching their peak execution phase[43]. - The group achieved a profit attributable to shareholders of RMB 2.183 billion for the reporting period[40]. - The company's total assets as of December 31, 2019, were RMB 67.87 billion, a decrease of RMB 2.99 billion from RMB 70.87 billion at the end of 2018[125]. - The equity attributable to shareholders of the company increased by RMB 1.29 billion to RMB 27.27 billion, compared to RMB 25.98 billion at the end of 2018[125]. Revenue Breakdown - Revenue from engineering contracting was RMB 32.438 billion, accounting for 54.4% of total revenue, with a year-on-year growth of 11.3%[41]. - The construction segment generated revenue of RMB 23.724 billion, representing 39.8% of total revenue, with a significant year-on-year increase of 30.9%[41]. - Revenue from the petrochemical sector was RMB 25.15 billion, a significant increase of 46.8% year-on-year, while refining revenue was RMB 19.40 billion, up 9.3%[44]. - Revenue from the new coal chemical sector decreased by 53.5% to RMB 4.11 billion, impacted by project settlements[44]. - Domestic revenue accounted for 81.4% of total revenue at RMB 42.55 billion, a 15.2% increase from RMB 36.93 billion in 2018[46]. - Overseas revenue was RMB 9.71 billion, representing 18.6% of total revenue, which decreased by 3.7% year-on-year[46]. Contracts and Backlog - The total amount of new contracts signed in 2019 was RMB 52.319 billion, which is a 2.7% increase compared to the previous year[32]. - As of the end of 2019, the uncompleted contract amount stood at RMB 94.994 billion, remaining stable compared to the end of 2018[32]. - The total value of uncompleted contracts as of December 31, 2019, was RMB 94.99 billion, remaining stable compared to RMB 94.94 billion in 2018[119]. - The uncompleted contracts cover 1.8 times the total revenue for 2019, indicating a strong backlog for future revenue generation[119]. Research and Development - The company completed 600 new patent applications, with 370 being invention patents, accounting for 61.7% of the total[53]. - The company has made significant progress in research and development, with 190 new key research projects initiated during the reporting period[53]. - The company continues to enhance its R&D efforts in traditional sectors such as refining and chemical engineering, which is expected to support future growth[95]. - Research and development costs for the engineering contracting business surged by 53.7% to RMB 903.45 million, driven by increased investment in technology development[95]. Corporate Governance - The company has established a comprehensive risk management process that includes goal setting, risk identification, evaluation, response, and monitoring[186]. - The company has implemented internal control mechanisms to provide sufficient financial data and explanations to the board and audit committee[184]. - The company has adopted a diversity policy for board members, considering factors such as gender, age, and professional experience[179]. - The company provides training and resources for directors to ensure compliance with regulatory requirements and enhance governance[180]. - The company has established insider information disclosure procedures to ensure timely identification and assessment of insider information[187]. Operational Efficiency - The company aims to enhance project management and cost control to improve economic efficiency in 2020[61]. - The company plans to focus on high-end services such as engineering consulting and technology licensing to boost competitiveness[60]. - The company has implemented a stock appreciation rights incentive plan for H-shares to motivate senior management[174]. - The company completed an organizational restructuring, reducing the number of internal functional departments from 16 to 11 to enhance efficiency[163].