Core Insights - SEG reported a solid annual performance for 2025, achieving operating revenue of RMB70.074 billion and net profit of RMB1.807 billion, despite challenges in the global energy landscape and industry competition [1][2] - The company initiated its first special dividend distribution, proposing a total dividend of RMB0.198 per share, resulting in an effective payout ratio of 88% [1][2] - Newly signed orders exceeded RMB101.248 billion for the second consecutive year, indicating a positive trend in market growth and operational resilience [1][3] Financial Performance - Total assets increased by 11.9% to RMB91.218 billion as of December 31, 2025, compared to RMB81.513 billion at the end of 2024 [6] - Net profit attributable to equity holders decreased by 27.1% to RMB1.798 billion from RMB2.466 billion in 2024 [6] - The gross profit margin was 7.4%, down from 8.3% in the previous year, while the net profit margin fell to 2.6% from 3.9% [6] Market Development - The value of new contracts signed in 2025 was RMB101.248 billion, with approximately RMB63.248 billion from domestic contracts and USD5.429 billion from overseas contracts [2][3] - The company signed 348 new contracts in emerging business sectors, totaling approximately RMB11.0 billion, with significant contributions from clean energy and new materials [3][4] - Representative contracts included major projects in Algeria, Kazakhstan, and Saudi Arabia, highlighting the company's international expansion efforts [3][4] Technological Innovation - SEG signed technology development and licensing contracts totaling RMB1.013 billion, reflecting a steady enhancement in technology-driven value creation [1][4] - The company hosted the 12th World Congress of Chemical Engineering, focusing on innovation in process systems engineering, attracting nearly 200 global experts [4][5] - The Group filed 762 new patent applications, with a total of 4,580 valid patents as of the end of 2025, showcasing its commitment to technological advancement [5][6] Corporate Governance and ESG - The governance system was optimized with the successful conversion of domestic shares to H shares, enhancing the equity structure [2] - The company maintained an AA-level ESG rating and received the "China Listed Companies ESG Annual Best Practice Award" for two consecutive years, reflecting its commitment to social responsibility [2][3] - The establishment of Sinopec (Guangdong) Environmental Technology Co., Ltd. as a specialized platform for environmental governance demonstrates the company's focus on sustainability [2][3] Business Outlook - For 2026, SEG targets a newly signed contract amount of RMB55 billion in the domestic market and USD5 billion in the overseas market, emphasizing high-end services and new energy sectors [5][6] - The company plans to enhance project management and control, focusing on risk prevention and control capabilities to ensure safe and efficient operations [5][6] - Collaborative innovation will be prioritized, integrating resources with research institutes and universities to advance technological development and improve profitability [5][6]