惠生工程(02236) - 2025 - 中期业绩

Interim Results Announcement The Board announces the unaudited condensed consolidated interim results for H1 2025, with comparative figures for 2024 Interim Results Overview The Group announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025 - The Company and its subsidiaries (the Group) announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025[3] Management Discussion and Analysis Management discusses market conditions, Group performance, and strategic advancements in core and new energy businesses Market and Performance Overview Despite a complex global economic environment, China's economy showed resilience, while the petrochemical industry faced operational pressures but accelerated green transformation, leading to significant revenue and profit growth for Wison Engineering - Global economic environment complex and volatile, China's GDP grew by 5.3% year-on-year, with warming domestic consumption and rapid industrial investment[5] - Petrochemical industry faced operational pressure due to declining international oil prices and major petrochemical product prices, but accelerated green and low-carbon transformation, with new materials and new energy (especially hydrogen energy) emerging rapidly[6][7] Key Financial Indicators for H1 2025 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 3,653.1 | 1,837.9 | +1,815.2 | +98.8% | | Gross Profit | 267.2 | 114.2 | +153.0 | +134.0% | | Profit/(Loss) Attributable to Owners of the Parent | 74.6 | -34.3 | +108.9 | N/A | | Total New Contracts | 51.1 | N/A | N/A | N/A | | Total Uncompleted Contracts (as of June 30, 2025) | 22,121.5 | N/A | N/A | N/A | Consolidating Core Business and Expanding into Emerging Fields Wison Engineering continued to focus on its core businesses while increasing R&D investment in new energy technologies, achieving new progress in emerging products and successfully commissioning multiple key projects - Core businesses (ethylene, PDH, polyolefin, MTO, oil & gas processing) developed steadily, contributing to the company's performance[9] - Increased new energy technology R&D investment, achieving new progress in emerging technologies and products (e.g., PGA, MMA, carbon reduction, green methanol, green ammonia)[9] - Significant progress in multiple major domestic and international projects, including Yangmei Yihua syngas revamp project (100% design, 95% construction), Panjin Sanli MMA project (commercial operation), Wanhua Chemical ethylene cracker EPC project (successfully commissioned and full-load operation), Guangxi Huayi MTO project (100% design, 78% construction), Shanghai Waigaoqiao Power Plant CO2 capture to methanol project (produced qualified methanol and completed performance assessment), Saudi Aramco DPCU project (100% design, 76% construction), Qatar EPC4 sulfur treatment project (68% overall progress), Saudi FARABI Lab4 project (97% overall progress), and UAE sulfur granulation project (received Letter of Award)[10][11][12][13] Enhancement of Project Management Capabilities Wison Engineering implemented standardized, internationalized, digitalized, and refined management concepts, optimizing its integrated project management platform and strengthening risk control - Fully implemented standardized, internationalized, digitalized, and refined management concepts, optimizing the integrated project management platform[14] - Strengthened training for project management systems, optimized company management procedures, and enhanced risk management and control capabilities[14] Outstanding QHSE Management Achievements The company continuously strengthened QHSE management, achieving 12.7 million safe man-hours without incidents and receiving multiple safety honors - Continuously strengthened QHSE management, optimizing the management system with a focus on internationalization and green decarbonization[15] - All contracted projects' key HSE indicators were within targets, achieving a cumulative 12.7 million safe man-hours without any lost-time incidents, environmental pollution incidents, or occupational health events[16] - Qatar EPC4 project received "Excellent Safety Performance Contractor" honor, and Guangxi Huayi MTO project repeatedly won monthly advanced collective for safe production and topped the EPC contractor comprehensive evaluation[16] Deepening Global Layout, Surging Green Transformation Momentum Wison Engineering seized global energy low-carbon transition opportunities, driven by "technology leadership + international layout," deepening its development path of "low-carbon traditional energy and scaled new energy," with overseas business continuing to grow and green engineering transformation accelerating - Seized strategic opportunities of global energy low-carbon transition and industrial chain upgrading, driven by "technology leadership + international layout"[17] - Deepened the development path of "low-carbon traditional energy and scaled new energy," with overseas business continuing to lead growth and green engineering transformation accelerating[17] Deepening Global Market Expansion The company achieved high-quality project delivery and new order breakthroughs in the Middle East and Africa, deepening cooperation with key clients and securing significant contracts - Deepened long-term cooperation with Saudi Aramco and ADNOC in the Middle East market, expanding from chemical to oil and gas projects[19] - Secured Letter of Award for the UAE sulfur granulation project EPC lump-sum contract, representing Wison Engineering's largest single contract amount in the Middle East region[19] - Technical and commercial proposals for multiple ADNOC oil and gas field expansion projects, totaling tens of billions of RMB, are in preparation and expected to convert into orders in H2 2025[19] - In the African region, the Nigeria PDH/PP project FEED has been completed and delivered with high quality, with the EPC lump-sum contract expected to convert into an order in H2 2025[20] Accelerated Green Transformation: Technology-Driven Industry, Demonstration-Led Scale The company's new energy and new materials businesses achieved a critical leap from technology verification to engineering implementation, actively participating in emerging projects globally and securing key contracts - New energy and new materials businesses achieved a critical leap from technology verification to engineering implementation, with fruitful collaborative innovation results across industries[21] - Domestic market focused on new energy hotspots like Northwest and Northeast China, actively developing opportunities for wind/solar-to-green hydrogen/ammonia, biomass-to-green methanol/LNG, and SAF projects[22] - Overseas market as a strategic focus, successfully signed a FEED contract for a biomass green methanol project in Turkey, and actively participated in bidding for multiple green hydrogen, green ammonia, green methanol, SAF, and carbon capture projects in various global regions[23] Fruitful Conversion of Proprietary Core Technologies Wison Engineering achieved significant results in proprietary core technology conversion, with efficient project execution, process package deliveries, and new technology contracts - Guangxi Huayi 1 million tons/year MTO plant EPC project is expected to achieve mechanical completion by the end of December 2025, setting a benchmark for domestic methanol-to-olefin technology engineering projects[24] - Wanhua Chemical's ethylene feedstock revamp project completed process package delivery, and Dongming Zhongyou Fuel Petrochemical's million-ton ethylene revamp project signed a technology license contract, consolidating market share[24] - Multiple technical consulting and process package contracts signed in new materials such as high-end polyolefins and MMA, indicating emerging growth points[24] Green Transformation: Accelerating Collaborative Innovation, Enhancing Core Competitiveness Wison Engineering established strategic partnerships with leading electrolyzed hydrogen technology companies to develop standardized and modular solutions for green hydrogen engineering, and collaborated on efficient carbon capture solutions - Established strategic partnerships with leading domestic electrolyzed hydrogen technology companies like Hyde Hydrogen and Sungrow Hydrogen, deeply collaborating on standardized and modular pathways for green hydrogen engineering[25][26] - Successfully signed an early work contract for a large-scale hydrogen and ammonia production plant in Europe, and actively participated in technical solution development and bidding for multiple projects in Europe, North America, and Southeast Asia[26] - Reached strategic cooperation agreements with leading absorbent and technology patent holders in carbon capture, jointly building efficient carbon capture and tail gas treatment system solutions[26] Factory as a Product: MegaFlex One-Stop Integrated Solution for Large-Scale Green Hydrogen Production Wison Engineering and Sungrow Hydrogen launched "MegaFlex," a one-stop integrated solution for large-scale green hydrogen production, transforming plants into reproducible industrial products to improve efficiency and optimize LCOH - Signed a strategic cooperation agreement with Sungrow Hydrogen to jointly develop, optimize, and promote modular solutions for hundred-megawatt-scale hydrogen production plants[28] - Officially launched the "MegaFlex" one-stop integrated solution for large-scale green hydrogen production, adhering to the "factory as a product" concept[28][29] - MegaFlex solution significantly improves project delivery efficiency, achieving a more optimized Levelized Cost of Hydrogen (LCOH)[29] Significant R&D Achievements in New Materials and Processes Wison Engineering achieved multiple key advancements in new materials and processes, including successful industrialization of green MMA, progress in PGA pilot plant, commissioning of proprietary ethylene plant, and development of energy-saving C4 separation technologies, adding 5 new authorized patents - First industrialization project of green MMA process via ethylene (Panjin Sanli 50,000 tons/year MMA project) successfully commissioned, producing premium MMA, solving high pollution and high energy consumption issues of traditional acetone cyanohydrin method[32] - Thousand-ton scale polyglycolic acid (PGA) pilot plant in cooperation with Inner Mongolia Rongxin Chemical entered a critical phase, striving to complete engineering trial research of this technology within the year[33] - Proprietary Wanhua Chemical 1.2 million tons/year ethylene plant successfully commissioned, adopting Wison HS-I/HS-II patented cracking furnaces and advanced ethylene separation technology, offering advantages such as wide feedstock adaptability, high olefin recovery, and low energy consumption[33][34] - Ethane oxidative dehydrogenation to ethylene (ODHE) technology in cooperation with Dalian Institute of Chemical Physics, Chinese Academy of Sciences, actively promoted, with breakthrough significance in significantly lower investment cost, consumption, and carbon emissions compared to traditional technologies[34] - Developed a new generation of energy-saving butene oxidative dehydrogenation catalyst and complete process technology, significantly reducing steam consumption, 30% reduction in energy consumption, and 40% reduction in wastewater[35] - Carbon C4 separation technology innovation, adopting new solvent, over 40% reduction in energy consumption, over 90% reduction in wastewater, and successfully achieved transfer of new generation butadiene extraction technology, over 10% reduction in energy consumption[36] - During the review period, 5 new authorized patents (1 invention patent, 4 utility model patents) and 1 software copyright registration were added, with 11 new patent applications[37] Full Promotion of Integrated Platform Project Application, Comprehensive Enhancement of Company's Project Digitalization and Refined Management Level The company focused on building and promoting an integrated platform, creating a digital information highway connecting all EPC stages, enhancing data management, document sharing, and digital control of construction progress, quality, and cost - Focused on building an integrated platform, creating a digital information highway connecting all EPC stages[38] - Material coding system fully applied in new projects, document control system achieved accurate and timely sharing of documents[38] - Supply chain system achieved full-chain management from design BOM to material inbound/outbound, construction management system achieved digital control of construction progress, quality, and cost[39] - Capital management system expected to launch in August, enhancing consistency, integration, real-time monitoring, and payment settlement efficiency for capital operations, and strengthening the capital internal control system[40] Systematic Advancement of Three-Horse Carriage Strategy, Accelerating International Organizational Capability Building Wison Engineering deepened its "Three-Horse Carriage Driven Transformation" human resources strategy, focusing on organizational change, global talent acquisition and cultivation, and enhancing talent capabilities through various programs and digital tools - Deepened "Three-Horse Carriage Driven Transformation" human resources strategy, promoting the HR system from "service-oriented" to "driver-oriented," providing talent and organizational support for global expansion[41] - Built an international talent pool of nearly 2,000 people, including foreign project execution personnel, Chinese overseas management personnel, and key technical experts, precisely introducing high-level technical experts and foreign-related key personnel[42] - Systematically advanced the implementation of the "three horizontal and two vertical" talent development system through leadership development, project manager training, and market awareness training programs[42] - Enriched cultural dissemination and implementation through ESG public welfare activities and cultural forums, enhancing organizational cohesion[43] - Optimized management mechanisms, completed the first round of equity incentive agreement signing, established platforms for psychological counseling and birthday benefits, and built a digital talent map system, introducing intelligent tools such as AI virtual interviews and English proficiency assessments, forming a "capability + language + culture" three-dimensional selection standard[44] Future Outlook The Group anticipates a slow global economic recovery in H2 2025, with China's stable growth policies and new drivers supporting high-quality development, while the petrochemical industry accelerates its shift towards new energy, particularly hydrogen - In H2 2025, global economy is expected to recover slowly, China's stable growth policies will continue to exert force, with new drivers (high-end manufacturing, digital economy, green energy) supporting high-quality development[45] - International crude oil prices are expected to remain weak, easing chemical cost pressure, and profitability in refining and downstream industries is likely to improve[46] - Petrochemical industry is accelerating development into the new energy sector, with strong national support for hydrogen energy industry development, encouraging increased R&D investment[46][47] - Wison Engineering will firmly increase strategic investment in new energy business, adhere to technological innovation and updated value propositions, committed to building a green and low-carbon global cooperation ecosystem, becoming an important force in promoting global energy transformation[48][49] Financial Review This section provides a detailed analysis of the Group's financial performance, liquidity, capital structure, and key financial indicators for the period Revenue and Gross Profit The Group's revenue increased by 98.8% year-on-year to RMB 3,653.1 million in H1 2025, and gross profit increased by 134.0% year-on-year to RMB 267.2 million, driven by strong EPC performance and internationalization Revenue and Gross Profit Overview | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 3,653.1 | 1,837.9 | +1,815.2 | +98.8% | | Gross Profit | 267.2 | 114.2 | +153.0 | +134.0% | Revenue and Gross Profit by Business Segment | Segment | 2025 Revenue (RMB million) | 2024 Revenue (RMB million) | Revenue Change Rate | 2025 Gross Profit (RMB million) | 2024 Gross Profit (RMB million) | Gross Profit Change Rate | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | EPC | 3,518.1 | 1,687.2 | +108.5% | 218.9 | 93.9 | +133.1% | 6.2% | 5.6% | | Design, Consulting and Technical Services | 135.0 | 150.7 | -10.4% | 48.3 | 20.3 | +137.9% | 35.8% | 13.5% | | Total | 3,653.1 | 1,837.9 | +98.8% | 267.2 | 114.2 | +134.0% | 7.3% | 6.2% | - EPC revenue increase primarily due to major lump-sum projects entering key construction and equipment arrival stages[51] - Design, consulting, and technical services gross profit margin increased, mainly due to an increase in estimated execution costs for individual design projects in the prior year, which led to a decline in gross profit margin[52] Revenue by Client Industry | Client Industry | 2025 Revenue (RMB million) | 2024 Revenue (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Petrochemical | 2,562.2 | 1,654.1 | 908.1 | +54.9% | | Coal Chemical | 1,101.0 | 147.2 | 953.8 | +648.0% | | Refining, Public Infrastructure, Others | -17.4 | 35.1 | -52.5 | -149.6% | | New Energy | 7.3 | 1.5 | 5.8 | +386.7% | | Total | 3,653.1 | 1,837.9 | 1,815.2 | +98.8% | - Petrochemical business revenue increased by 54.9%, mainly due to overseas petrochemical projects entering peak construction[54] - Coal chemical business revenue increased by 648.0%, mainly due to domestic coal chemical projects entering major construction period[55] - Number of new energy projects increased, leading to an increase in recognizable revenue[56] Revenue by Project Location | Project Location | 2025 Revenue (RMB million) | Percentage of Total Revenue | 2024 Revenue (RMB million) | Percentage of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 1,237.2 | 33.9% | 623.7 | 33.9% | | Middle East | 1,304.9 | 35.7% | 1,025.9 | 55.8% | | Eurasia | 1,099.8 | 30.1% | 158.3 | 8.6% | | Others | 11.2 | 0.3% | 30.0 | 1.7% | | Total | 3,653.1 | 100.0% | 1,837.9 | 100.0% | - Overseas project revenue accounted for approximately 66.1% of total revenue, similar to the prior year, with an increase in amount year-on-year, aligning with the internationalization strategy[57] Other Income and Gains Other income and gains decreased by 23.9% year-on-year to RMB 97.9 million, primarily due to fair value gains on Shanghai investment properties and successful claims income in the prior year Other Income and Gains | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Other Income and Gains | 97.9 | 128.6 | -30.7 | -23.9% | - Decrease primarily due to the recognition of fair value gains on Shanghai investment properties and successful claims income from individual subcontractors in the prior year[58] Selling and Distribution Expenses Selling and distribution expenses decreased by 42.0% year-on-year to RMB 14.9 million, mainly due to the reclassification of some expenses to administrative expenses Selling and Distribution Expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 14.9 | 25.7 | -10.8 | -42.0% | - Decrease primarily due to the repositioning of work functions for individual sales departments, with some expenses reclassified to administrative expenses[59] Administrative Expenses Administrative expenses increased by 14.2% year-on-year to RMB 106.4 million, mainly due to increased information technology expenses and reclassified sales department expenses Administrative Expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 106.4 | 93.2 | +13.2 | +14.2% | - Increase primarily due to increased information technology expenses and the reclassification of some original sales department expenses to administrative expenses[60] Other Expenses Other expenses increased by 84.4% year-on-year to RMB 111.4 million, mainly due to fair value losses on Shanghai investment properties and increased R&D expenditures Other Expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | R&D Costs | 92.0 | 58.5 | +33.5 | +57.3% | | Fair Value Loss on Investment Properties | 16.6 | - | +16.6 | N/A | | Total | 111.4 | 60.4 | +51.0 | +84.4% | - Increase primarily due to the recognition of fair value losses on Shanghai investment properties and increased R&D expenditures[61] Finance Costs Finance costs decreased by 14.6% year-on-year to RMB 31.1 million, primarily due to the Group's strengthened control over bank loan scale and interest costs Finance Costs | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | 31.1 | 36.4 | -5.3 | -14.6% | - Decrease primarily due to the Group's strengthened control over the scale of bank loans and interest costs[62] Income Tax Income tax decreased by 87.1% year-on-year to RMB 0.8 million, primarily due to deferred income tax credit from fair value loss on investment properties and prior year's withholding tax Income Tax | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Income Tax | 0.8 | 6.2 | -5.4 | -87.1% | - Decrease primarily due to the recognition of deferred income tax credit corresponding to the fair value loss on Shanghai investment properties, and the recognition of withholding income tax by overseas branches in the prior year[63] Profit for the Period The Group recorded a profit for the period of RMB 77.6 million, compared to a loss of RMB 41.0 million in the prior year, with net profit margin increasing from -2.2% to 2.1% Profit for the Period | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period | 77.6 | -41.0 | +118.6 | N/A | | Net Profit Margin | 2.1% | -2.2% | +4.3% | N/A | Trade and Bills Receivables As of June 30, 2025, the Group's total trade and bills receivables amounted to RMB 384.8 million, a decrease of approximately 29.6% compared to December 31, 2024 Trade and Bills Receivables | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Trade and Bills Receivables | 384.8 | 546.7 | -161.9 | -29.6% | Liquidity and Capital Structure As of June 30, 2025, the Group's unpledged cash and bank balances and time deposits were approximately RMB 2,768.6 million, accounting for approximately 37.3% of current assets, with a 75.8% asset-liability ratio Cash and Bank Balances | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Unpledged Cash and Bank Balances and Time Deposits | 2,768.6 | 3,802.5 | -1,033.9 | -27.2% | | Percentage of Current Assets | 37.3% | 46.0% | -8.7% | N/A | Net Cash Flow | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -674.3 | 364.8 | -1,039.1 | | Net Cash Flow from Investing Activities | 55.8 | 16.4 | +39.4 | | Net Cash Flow from Financing Activities | -310.1 | -11.2 | -298.9 | Asset-Liability Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Average Ratio | 77.2% | 76.5% | | Ratio at Reporting Date | 75.8% | 78.4% | - Short-term bank borrowings accounted for 39.6% of total bank borrowings (December 31, 2024: 54.2%), indicating a decrease in the proportion of short-term debt[71] Interest-Bearing Bank and Other Borrowings | Category | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Current | 309.5 | 595.0 | | Non-current | 472.5 | 502.5 | | Total | 782.0 | 1,097.5 | - Actual interest rates for bank borrowings ranged from 2.95% to 4.71% (year ended December 31, 2024: 3.45% to 4.82%)[73] Interim Dividend The Directors do not recommend the payment of an interim dividend for the review period - The Directors do not recommend the payment of an interim dividend for the review period (H1 2024: nil)[75] Capital Expenditure The Group's capital expenditure during the review period was RMB 3.5 million, a decrease from RMB 10.0 million in the prior year Capital Expenditure | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Capital Expenditure | 3.5 | 10.0 | -6.5 | -65.0% | Significant Acquisitions and Disposals Wison Engineering (China) Co., Ltd. agreed to acquire a 35% equity interest in Lanhong Wison (Jiangsu) New Materials Co., Ltd. for RMB 255,000,000, with completion expected by September 30, 2025 - Wison Engineering (China) Co., Ltd. agreed to acquire a 35% equity interest in Lanhong Wison (Jiangsu) New Materials Co., Ltd. for a consideration of RMB 255,000,000[77] - As of the announcement date, RMB 235,000,000 has been paid, and the acquisition is planned to be completed by September 30, 2025[78] - No other significant acquisitions or disposals during the review period[79] Contingent Liabilities The Group faces claims from several subcontractors totaling approximately RMB 71,641,000, with an additional provision made for RMB 35,370,000 in litigation - Several subcontractors claimed additional engineering costs, interest, and liquidated damages totaling approximately RMB 71,641,000 from the People's Courts in China[80] - An additional provision of RMB 35,370,000 has been made for litigation, while the remaining RMB 36,271,000 in claims are considered unsubstantiated and no provision has been made[80] Foreign Exchange Risk Management The Group's business transactions are primarily conducted in RMB and USD, with a foreign currency hedging policy established and strictly adhered to for managing currency risks - Business transactions are primarily conducted in RMB and USD, with currency risk arising from bank balances in currencies other than the functional currency[81] - A foreign currency hedging policy has been established and strictly adhered to for managing foreign currency risk[81] Pledge of Assets As of June 30, 2025, certain buildings and leasehold land, along with the right to rental income for several years, totaling RMB 3,467.7 million, have been pledged as collateral for the Group's bank credit - As of June 30, 2025, certain buildings and leasehold land, along with the right to rental income for several years, totaling RMB 3,467.7 million, have been pledged as collateral for the Group's bank credit[82] Employees and Remuneration Policy As of June 30, 2025, the Group employed 1,519 employees, with total staff costs of RMB 438.3 million, accounting for 12.0% of revenue, supported by a fair and competitive remuneration policy and comprehensive training programs Employees and Remuneration Overview | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 1,519 | 1,867 | | Total Staff Costs (H1 2025) | RMB 438.3 million | RMB 397.1 million (H1 2024) | | Staff Costs as Percentage of Revenue (H1 2025) | 12.0% | 21.6% (H1 2024) | - The company has formulated a remuneration policy based on principles of fairness, competitiveness, incentives, and legality, with dynamic adjustments to salaries based on company performance, employee performance, and work capabilities[84] - Adopted the 2022 Share Option Scheme, granting 67,760,000 share options on April 2, 2025; adopted the Share Award Scheme, granting 29,040,000 shares on April 2, 2025[84][85] - Provided induction training and on-the-job education, including company culture, professional ethics, main products, quality management, occupational safety, etc., and organized specialized training programs for various levels of management, key business and technical personnel, and high-potential talent[86] Purchase, Sale or Redemption of the Company’s Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities during the review period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities during the review period[87] Events After the Reporting Period In August 2025, Wison Engineering signed an EPC contract valued at approximately USD 700,000,000 in the UAE - In August 2025, Wison Engineering signed an EPC contract valued at approximately USD 700,000,000 in the UAE[88] Interim Condensed Consolidated Financial Statements This section presents the Group's interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group recorded revenue of RMB 3,653,097 thousand, profit for the period of RMB 77,563 thousand, and basic and diluted earnings per share of RMB 1.83 cents Summary of Interim Condensed Consolidated Statement of Profit or Loss | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,653,097 | 1,837,914 | | Gross Profit | 267,167 | 114,156 | | Profit/(Loss) Before Tax | 78,370 | -34,773 | | Profit/(Loss) for the Period | 77,563 | -40,962 | | Profit/(Loss) Attributable to Owners of the Parent | 74,588 | -34,342 | | Basic and Diluted Earnings/(Loss) Per Share | RMB 1.83 cents | RMB (0.84) cents | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income for the period was RMB 125,312 thousand, with RMB 122,337 thousand attributable to owners of the parent Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 77,563 | -40,962 | | Other Comprehensive Income/(Loss) (Net of Tax) | 47,749 | -5,612 | | Total Comprehensive Income/(Loss) for the Period | 125,312 | -46,574 | | Total Comprehensive Income/(Loss) Attributable to Owners of the Parent | 122,337 | -39,954 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 11,505,581 thousand, total liabilities were RMB 8,724,856 thousand, and net assets were RMB 2,780,725 thousand Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 4,083,019 | 4,018,919 | | Total Current Assets | 7,422,562 | 8,275,207 | | Total Assets | 11,505,581 | 12,294,126 | | Total Current Liabilities | 6,654,260 | 7,544,637 | | Total Non-current Liabilities | 2,070,596 | 2,096,226 | | Total Liabilities | 8,724,856 | 9,640,863 | | Net Assets | 2,780,725 | 2,653,263 | | Net Current Assets | 768,302 | 730,570 | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes on the Group's company information, basis of preparation, accounting policies, operating segments, and specific financial statement items Company Information Wison Engineering Services Co., Ltd. is incorporated in the Cayman Islands, with its ultimate holding company being Wison Holdings (Group) Co., Ltd., primarily providing project solutions for petrochemical and coal chemical producers globally - The Company's registered office is in the Cayman Islands, and its ultimate holding company is Wison Holdings (Group) Co., Ltd[93] - The Group primarily provides project solutions for the design, construction, and commissioning of production facilities for petrochemical and coal chemical producers in China and overseas[93] Basis of Preparation The interim condensed consolidated financial information for the six months ended June 30, 2025, has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[94] - It should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2024[94] Changes in Accounting Policies and Disclosures The accounting policies adopted are consistent with the 2024 annual consolidated financial statements, with no material impact from the first-time adoption of revised IFRS accounting standards - Accounting policies are consistent with the 2024 annual consolidated financial statements, except for the first-time adoption of revised IFRS accounting standards[95] - Amendments to IAS 21 (Lack of Exchangeability) had no impact on the interim condensed consolidated financial information, as the Group's transaction and functional currencies are mutually exchangeable[96] Operating Segment Information The Group's operating segments primarily include EPC and Design, Consulting, and Technical Services, with detailed revenue, results, assets, and liabilities allocated accordingly Revenue and Results by Operating Segment for H1 2025 | Segment | Segment Revenue (RMB thousand) | Segment Results (RMB thousand) | | :--- | :--- | :--- | | EPC | 3,518,056 | 176,435 | | Design, Consulting and Technical Services | 135,041 | 56,630 | | Total | 3,653,097 | 233,065 | Assets and Liabilities by Operating Segment (June 30, 2025) | Segment | Segment Assets (RMB thousand) | Segment Liabilities (RMB thousand) | | :--- | :--- | :--- | | EPC | 3,247,424 | 6,922,051 | | Design, Consulting and Technical Services | 262,813 | 232,788 | | Total | 3,510,237 | 7,154,839 | Revenue The Group's total revenue from customer contracts for the six months ended June 30, 2025, was RMB 3,653,097 thousand, primarily from engineering services and the Middle East market Revenue by Service Type for H1 2025 | Service Type | EPC (RMB thousand) | Design, Consulting and Technical Services (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Engineering Services | 3,518,056 | – | 3,518,056 | | Design, Feasibility Study, Consulting and Technical Services | – | 135,041 | 135,041 | | Total | 3,518,056 | 135,041 | 3,653,097 | Revenue by Geographical Market for H1 2025 | Geographical Market | EPC (RMB thousand) | Design, Consulting and Technical Services (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Middle East | 1,304,764 | 137 | 1,304,901 | | Mainland China | 1,135,298 | 101,869 | 1,237,167 | | Eurasia | 1,077,046 | 22,718 | 1,099,764 | | Others | 948 | 10,317 | 11,265 | | Total | 3,518,056 | 135,041 | 3,653,097 | - All revenue represents services transferred over time[101] Profit/(Loss) Before Tax The Group's profit before tax for the six months ended June 30, 2025, was RMB 78,370 thousand, a significant improvement from a loss in the prior year, influenced by various cost and impairment factors Key Components of Profit/(Loss) Before Tax | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Services Provided | 3,385,930 | 1,723,758 | | Depreciation of Property, Plant and Equipment | 6,340 | 4,499 | | Depreciation of Right-of-Use Assets | 6,305 | 7,187 | | Amortization of Intangible Assets | 4,005 | 4,030 | | Net Impairment Losses on Financial and Contract Assets | 21,590 | 63,998 | | Fair Value Loss/(Gain) on Investment Properties | 16,568 | -13,381 | | Total Employee Benefit Expenses | 438,336 | 397,141 | - Profit before tax for H1 2025 was RMB 78,370 thousand, a significant improvement from a loss of RMB 34,773 thousand in the corresponding period of 2024[89] Income Tax The Group's total income tax expense for the six months ended June 30, 2025, was RMB 807 thousand, a significant decrease due to deferred income tax credit and prior year's withholding tax, with Chinese subsidiaries subject to 25% statutory tax rate and Wison Engineering (China) Co., Ltd. enjoying a 15% preferential rate Income Tax Expense | Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 3,340 | 4,232 | | Deferred | -2,533 | 1,957 | | Total Tax Expense for the Period | 807 | 6,189 | - Decrease primarily due to the recognition of deferred income tax credit corresponding to the fair value loss on Shanghai investment properties, and the recognition of withholding income tax by overseas branches in the prior year[63][107] - Chinese subsidiaries are subject to a statutory income tax rate of 25%, while Wison Engineering (China) Co., Ltd. is recognized as a "High and New Technology Enterprise" and enjoys a preferential enterprise income tax rate of 15%[108] - Wison Engineering (China) Co., Ltd. is subject to a 5% withholding tax on revenue from Thailand, Saudi Arabia, and Qatar[108] Dividends No interim dividend was paid, declared, or proposed for the six months ended June 30, 2025 - No interim dividend was paid, declared, or proposed for the six months ended June 30, 2025 (H1 2024: nil)[111] Earnings/(Loss) Per Share Attributable to Ordinary Equity Holders of the Parent For the six months ended June 30, 2025, basic and diluted earnings per share attributable to ordinary equity holders of the parent were RMB 1.83 cents, based on a weighted average of 4,073,767,800 shares outstanding Earnings/(Loss) Per Share Calculation Data | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Ordinary Equity Holders of the Parent (RMB thousand) | 74,588 | -34,342 | | Weighted Average Number of Ordinary Shares Outstanding | 4,073,767,800 | 4,073,767,800 | | Dilutive Effect of Share Awards | 2,285,534 | – | | Weighted Average Number for Diluted Earnings/(Loss) Per Share Calculation | 4,076,053,334 | 4,073,767,800 | | Basic and Diluted Earnings/(Loss) Per Share | RMB 1.83 cents | RMB (0.84) cents | - For the six months ended June 30, 2024, the Group had no potential dilutive ordinary shares outstanding[113] Property, Plant and Equipment As of June 30, 2025, the carrying amount of property, plant and equipment was RMB 36,368 thousand, with additions of RMB 3,874 thousand and disposals of RMB 7,496 thousand during the period Movements in Property, Plant and Equipment | Item | RMB thousand | | :--- | :--- | | As at January 1, 2025 (Audited) | 46,676 | | Additions | 3,874 | | Disposals | -7,496 | | Depreciation | -6,340 | | Exchange Adjustments | -346 | | As at June 30, 2025 (Unaudited) | 36,368 | - The Group's buildings in Mainland China are stated at valuation, with a carrying amount of RMB 21,729 thousand, and the Directors believe there is no material difference between their fair value and carrying amount[119] - The valuation of buildings is determined using the direct comparison method, with the most significant inputs being market transaction prices of comparable properties nearby and adjustments for building quality[125] Investment Properties As of June 30, 2025, the Group's investment properties were revalued at RMB 3,467,663 thousand, with a net fair value adjustment loss of RMB 16,568 thousand recognized, and all properties are pledged as collateral for bank financing Movements in Investment Properties | Item | RMB thousand | | :--- | :--- | | As at January 1, 2025 (Audited) | 3,484,231 | | Net Fair Value Adjustment Loss | -16,568 | | As at June 30, 2025 (Unaudited) | 3,467,663 | - As of June 30, 2025, investment properties with a fair value of approximately RMB 3,467,663 thousand have been pledged as collateral for general bank financing granted to the Group[127] - The valuation of investment properties is determined using the income approach, with the most significant inputs being market daily rent of comparable properties nearby, long-term vacancy rate of the buildings, and rental yield[130] Trade Receivables As of June 30, 2025, trade receivables, net of loss allowance, totaled RMB 321,506 thousand, a decrease from RMB 511,368 thousand as of December 31, 2024, with over 1 year receivables at RMB 211,785 thousand Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 60,055 | 38,071 | | 2 to 12 months | 49,666 | 201,094 | | Over 1 year | 211,785 | 272,203 | | Total | 321,506 | 511,368 | Amounts Due from Related Companies | Related Company | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Wison (Taizhou) New Material Technology Co., Ltd. | 148,163 | 147,631 | | Taixing Bohui Environmental Protection Technology Development Co., Ltd. | – | 854 | | Wison Offshore & Marine Ltd. | – | 32,218 | | Wison (China) Investment Co., Ltd. | – | 50 | | Total | 148,163 | 180,753 | Cash and Bank Balances and Time Deposits As of June 30, 2025, the Group's cash and bank balances were RMB 2,209,401 thousand, and time deposits were RMB 1,372,167 thousand, with RMB 812,963 thousand pledged as collateral Cash and Bank Balances and Time Deposits | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and Bank Balances | 2,209,401 | 2,737,422 | | Time Deposits | 1,372,167 | 1,746,566 | | Subtotal | 3,581,568 | 4,483,988 | | Less: Pledged Bank Balances and Time Deposits | 812,963 | 681,513 | | Frozen and Unpledged Bank Balances | 18,273 | 18,273 | | Cash and Cash Equivalents | 2,263,576 | 3,184,202 | - Pledged bank balances and time deposits of RMB 812,963 thousand are used for performance bonds, letter of credit financing, bill financing, and bank financing collateral[133][134][135] - RMB-denominated cash and bank balances of RMB 2,725,452 thousand are not freely convertible but can be exchanged through authorized banks[136] Trade and Bills Payables As of June 30, 2025, trade and bills payables totaled RMB 2,902,298 thousand, an increase from RMB 2,764,626 thousand as of December 31, 2024, with most payables due within 1 year Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 2,049,578 | 1,911,906 | | 1 to 2 years | 442,205 | 328,146 | | 2 to 3 years | 298,215 | 195,384 | | Over 3 years | 149,335 | 351,256 | | Subtotal | 2,939,333 | 2,786,692 | | Less: Long-term Payables | 37,035 | 22,066 | | Total | 2,902,298 | 2,764,626 | - Trade payables are interest-free and generally settled within 30 to 90 days, except for suppliers providing extended credit terms of over one year[137] Interest-Bearing Bank Borrowings As of June 30, 2025, the Group's total interest-bearing bank borrowings amounted to RMB 781,957 thousand, a decrease from RMB 1,097,515 thousand as of December 31, 2024, with actual interest rates ranging from 2.95% to 4.71% Overview of Interest-Bearing Bank Borrowings | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 309,457 | 595,015 | | Non-current | 472,500 | 502,500 | | Total | 781,957 | 1,097,515 | - Actual interest rates for bank borrowings ranged from 2.95% to 4.71%, with maturity dates from 2025 to 2034[138] Carrying Amount of Borrowings by Interest Rate Type | Interest Rate Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Fixed Rate | 250,230 | 475,688 | | Variable Rate | 531,727 | 621,827 | | Total | 781,957 | 1,097,515 | - Investment properties (RMB 3,467,663 thousand) and the right to receive rental income for several years from a property and related bank account balances (RMB 94,779 thousand) have been pledged[139][140] Share Capital As of June 30, 2025, the Company's authorized share capital was 20,000,000,000 ordinary shares with a par value of HKD 0.1 each, and the issued and fully paid share capital was 4,073,767,800 shares, equivalent to RMB 330,578 thousand Share Capital Structure | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Authorized Ordinary Shares (par value HKD 0.1 each) | 20,000,000,000 | 20,000,000,000 | | Number of Issued and Fully Paid Ordinary Shares (par value HKD 0.1 each) | 4,073,767,800 | 4,073,767,800 | | Issued and Fully Paid Share Capital (RMB thousand) | 330,578 | 330,578 | Approval of Interim Condensed Consolidated Financial Information The unaudited interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 21, 2025 - The unaudited interim condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 21, 2025[142] Corporate Governance Practices This section outlines the Company's corporate governance practices, including code compliance, board oversight, and information disclosure Corporate Governance Practices The Company has adopted and complied with the Corporate Governance Code, except for Code Provision C.2.1, as the Board believes Mr. Zhou Hongliang's dual role facilitates business strategy execution and operational efficiency - The Company has adopted and complied with the Corporate Governance Code, except for Code Provision C.2.1 (roles of Chairman and Chief Executive should be separate)[143] - The Board believes Mr. Zhou Hongliang's dual role as Chairman and Chief Executive facilitates business strategy execution and operational efficiency, with an appropriately structured Board ensuring balanced power[144] Compliance with the Model Code for Securities Transactions by Directors The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all Directors confirmed compliance with its provisions during the review period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all Directors confirmed compliance with its provisions during the review period[145] Audit Committee Review The Audit Committee, comprising independent non-executive Directors and chaired by Mr. Li Lei, reviewed the Group's financial reporting process and internal control measures, concluding that the interim financial statements comply with relevant standards and are appropriately disclosed - The Audit Committee, comprising independent non-executive Directors and chaired by Mr. Li Lei, is responsible for reviewing and overseeing financial reporting procedures and internal control measures[146] - The Committee reviewed the Group's accounting principles and practices and discussed internal control and financial reporting matters, concluding that the interim financial statements comply with relevant standards and are appropriately disclosed[147] Publication of Information on HKEX and Company Website This results announcement has been published on the HKEX and Company websites, and the interim report will be dispatched to shareholders and published online at the appropriate time - This results announcement has been published on the website of The Stock Exchange of Hong Kong Limited and the Company's website[148] - The Company's interim report for the current period will be dispatched to shareholders and published on the HKEX and Company websites at the appropriate time[148] Appointment of Independent Non-Executive Directors This section announces the appointment of two new independent non-executive Directors, detailing their backgrounds and terms Appointment of Independent Non-Executive Directors The Board is pleased to announce that Professor Shi Donghui and Professor Dong Jing have been appointed as independent non-executive Directors, effective from August 21, 2025 - Professor Shi Donghui and Professor Dong Jing have been appointed as independent non-executive Directors, effective from August 21, 2025[149] Professor Shi Professor Shi Donghui, 53, is a professor at Fudan University's Fanhai International School of Finance, specializing in behavioral finance, corporate governance, and financial market development policies, with a three-year term and an annual remuneration of HKD 336,000 - Professor Shi Donghui, 53 years old, is a professor at Fudan University's Fanhai International School of Finance and Vice Dean of the China Institute of Financial Rule of Law, specializing in behavioral finance, corporate governance, and financial market development policies[150] - Previously worked at the Shanghai Stock Exchange, participating in the institutional design and practice of various market reforms and innovative products such as ETFs, ETF options, Shanghai-Hong Kong Stock Connect, STAR Market, and registration-based IPO system[150] - Currently serves as an independent director of CSSC Science & Technology Co., Ltd. and confirmed compliance with the independence standards set out in Rules 3.13(1) to (8) of the Listing Rules[151][154] - Term of appointment is three years, with an annual remuneration of HKD 336,000[151][152] Professor Dong Professor Dong Jing, 49, is a Certified Public Accountant in China, Dean of the School of International Cultural Exchange and Professor and PhD Supervisor at the School of Business, Shanghai University of Finance and Economics, with a three-year term and an annual remuneration of HKD 336,000 - Professor Dong Jing, 49 years old, is a Certified Public Accountant in China, Dean of the School of International Cultural Exchange and Professor and PhD Supervisor at the School of Business, Shanghai University of Finance and Economics[156] - Previously served as an independent director for several listed companies, and currently serves as an independent director for YTO Express Group Co., Ltd. and Hangzhou Nbond Nonwovens Co., Ltd[156] - Confirmed compliance with the independence standards set out in Rules 3.13(1) to (8) of the Listing Rules[159] - Term of appointment is three years, with an annual remuneration of HKD 336,000[157] Board Appreciation The Board warmly welcomes Professor Shi Donghui and Professor Dong Jing, and lists the Board members as of the announcement date - The Board warmly welcomes Professor Shi Donghui and Professor Dong Jing[160] - As of the announcement date, the Board members include Executive Directors Mr. Zhou Hongliang, Mr. Zheng Shifeng, Mr. Li Dun; Non-executive Director Mr. Liu Hongjun; and Independent Non-executive Directors Mr. Li Lei, Mr. Feng Guohua, Ms. Guo Ruqian, Professor Shi Donghui, and Professor Dong Jing[162]