DJ SEG Announced 2024 Annual Results Total Value of New Contracts Exceeded RMB 100 Billion With Record Dividend Payouts
EQS Newswire / 16/03/2025 / 20:10 UTC+8
Press Release
(For immediate release)
SEG Announced 2024 Annual Results
Total Value of New Contracts Exceeded RMB 100 Billion
With Record Dividend Payouts
(16 March 2025, Hong Kong) SINOPEC Engineering (Group) Co., Ltd. ("SEG" or the "Company", together with its subsidiaries collectively known as the "Group") (stock code: 2386) today announced its annual results for the twelve months ended 31 December 2024 (the "Reporting Period").
Over the past year, in the face of rapidly evolving industrial transformation, the complex and severe external situation and the fiercely competitive market environment, the Board and the management of the Company actively promoted market development, spared no effort in optimizing production and operation and accelerated the forging of new quality productive forces. We presented new vitality because of the high-quality development, delivering a satisfactory report to our shareholders: the Company achieved an annual operating revenue of RMB64.198 billion, a year-on-year increase of 13.9%; a net profit of RMB2.474 billion, a year-on-year increase of 5.5%; and a newly signed contract value of RMB100.613 billion, a year-on-year increase of 25.4%, the Company accomplished various production and operation tasks and QHSE targets. With an overall consideration of the profitability of the Company and the needs for sustainable development in the future, the Board proposed a final dividend of RMB0.208 per share, taking into account of the interim dividend already distributed, the total dividend for the full year was RMB0.358 per share with a dividend payout ratio of 65%, reaching a new high in the total annual dividend amount since the Company's listing.
The Group kept enhancing our value creation capability through engineering services, technological innovation, capital operations to seize the positions as a "Leader in the Engineering Industry" and a "Top Performer in the Capital Market".
Firstly, we aligned our efforts for high quality development and value creation of the Company. We paid great attention to the capital market's expectations for the Company's development and the concern for value enhancement. Through more transparent information disclosure and more proactive capital market communication, the high-quality development achievements have become more prominent. The Company attaches great importance to shareholder returns. The Company has maintained a dividend yield of 65% for four years in a row, achieved continuous growth in the amount of dividends paid out. The Company has actively safeguarded its value by conducting share repurchases for two consecutive years. The Company is committed to building itself into an enterprise with leading ESG performance. The MSCI ESG rating has been upgraded to BB level, making it the highest and the only company in the Chinese engineering industry to receive this rating. The recognition from the capital market continues increasing, and the goal of returning to "Southbound Trading" was successfully achieved. Secondly, we built its overall market competitiveness through comprehensive service capabilities. The Company made another historical breakthrough in market development. The total number of new orders maintained double-digit growth for three consecutive years and reached RMB100.613 billion, which signified our business successfully entering into the RMB100 billion club. New orders signed overseas made new highs in new markets, new varieties and new fields, and recorded USD5.349 billion, representing a significant year-on-year increase of 79.6%. The portfolio of our orders was further optimized. New orders signed in design consulting category exceeded RMB4.8 billion, representing a year-on-year increase of 16.1%. New orders signed in EPC category accounted for more than 70% of the total, laying a solid foundation for the Company to enhance its source competitiveness. Thirdly, we strengthened lean management to improve operational efficiency in all fronts. We strictly performed contracts and put greater emphasis on multi-objective comprehensive management and control of project quality, safety, progress and efficiency. The revenue scale from EPC and front-end business grew steadily and their weighting on out turnover continued to increase and stabilized overall project profitability amid the fierce market competition. Because of high standards, high quality and high efficiency of the construction and provision of a number of industry benchmark projects, we earned acclamation from the industry, including 9 provincial and ministerial quality awards, 9 provincial and ministerial design awards, and 9 first prizes of National Excellent Welding Projects. Fourthly, we continued promoting technological innovation to create high-quality technological supply. The amount of contracts related to technology development, technology licensing and technology transformation throughout the year reached RMB1.1 billion, representing a year-on-year growth of over 30%. Our ability to create profits in scientific research significantly improved. Relying on the gradual improvement of the technology matrix and synergetic efforts, we achieved major breakthroughs in exporting patented technologies such as polyolefins and aromatics, and entered the innovation and competition arena of core technologies in the global energy and chemical industry chain.
The Group takes the internationalization of corporate operations as the core development goal, promotes the internal capability building towards the high-end, and creates an integrated and co-produce industrial ecosystem with our industry chain partners. Firstly, we make every effort in constructing an overseas operation model of "international rules + Chinese efficiency". After more than 70 years of development and accumulation, the Company has nurtured a high-performance team with rich experience, complete professional skills and sufficient personnel, and has engineering service capabilities covering the whole industrial chain and life cycle of the energy and chemical industry. In the nearly three decades of internationalization efforts, the Company has learned from others with an open mind, while constantly adapting to "international rules", it has promoted the alignment of domestic and international standards, promoted the deep integration of "international rules" and "Chinese efficiency", and served global owners with high-quality engineering capabilities. Secondly, we will actively leverage on the two capabilities of "technology + engineering front-end" and "low-cost operation of projects". By relying on the advantages of integrated collaborative innovation in technology research and development, engineering transformation and engineering design, the Company will continue to build high-level front-end engineering capabilities and accelerated its expansion into the global high-end business track. We will optimize the whole process of design, procurement and construction, vigorously promote the application of advanced tooling, deepen the overseas localized operating capability system, promote the construction of low-cost centers at home and abroad and build up our competitive and low-cost execution capabilities. Thirdly, we will establish long-term cooperative partnership with strategic customers for win-win cooperation. By adopting the approaches of "going out" and "bringing in", communication will be enhanced and mutual trust will be deepened with strategic customers such as large national oil companies. While promoting the Group's advantages in industrial chain, technology chain and engineering services comprehensively, we will acquire first-mover advantages with more advanced and more diversified preliminary and front-end services. Fourthly, we will work with partners in the industrial chain to build an integrated and shared business environment. We will continue to expand the "firends cirlce", promote the comprehensive strategic partnership with international engineering companies, core suppliers and strategic sub-contractors, and strengthened in-depth cooperation in the areas of, among others, preliminary development of projects, optimizing the global supply chain and project implementation, so as to establish a global industrial chain system with international competitiveness.
The Group is driven by innovation to build the future competitiveness, actively promotes the deployment and application of artificial intelligence, and plays a leading role in the novel industrialization of the engineering and construction industry. Firstly, a new paradigm of deep integration of industry-university-research driven by enterprise needs will be promoted. By fully utilizing the advantages of integration and innovation of projects and engineering transformation, an "innovation chain" will be deployed around the "industry chain" to establish a planning and sourcing base of original technology. Through further coordinating with upstream research institutions and downstream users actively, technological innovation will continue to increase and open-up for cooperation. By jointly establishing the "Biomass Utilization Joint Research Center (High-value Utilization of Lignin)" with Guangdong University of Technology, the technological development of biomass utilization series and the industrial applications of research results are accelerated. The "Low-carbon Joint Research Center" is jointly established with Sun Yat-sen University, and deep cooperation is also carried out with research institutes such as Tsinghua University, Chinese Research Academy of Environmental Sciences, Shanghai Institute of Organic Chemistry, CAS, SINOPEC Beijing Research Institute of Chemical Industry and SINOPEC Research Institute of Petroleum Processing in multiple innovation fields. Secondly, we will focus on development needs of the industry and accurately allocated our R&D investments. We will increase investment in high-end carbon materials, conversion of low-cost oil, conversion of high-value oil to specialties, green and low-carbon, and new energy fields, promote the
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