Company Announcements

Press Release

(For immediate release)

 

 

SEG Announces 2025 Interim Results

 

Achieving Milestones in Operations and Expanding Overseas Markets

 

 

(17 August 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 announces its interim results for the six months ended 30 June 2025 (the “Reporting Period”).

 

During the Reporting Period, the Board, the management, and all employees worked in unity in optimizing existing assets, seeking growth, strengthening foundations, and managing risks. We fully optimized production and operations. With steadfast commitment to high quality development to counter external uncertainties, we achieved a series of new progress and accomplishments.

 

First, we upheld our positioning of “technological innovation plus engineering services”, enhancing our value creation capabilities in engineering services, technological innovation, and capital operations, with business performance growing for three consecutive years. During the Reporting Period, the Group’s ongoing projects progressed steadily, generating revenue of RMB 31.559 billion, up 10.1% year on year. With synergistic advantages in engineering, technology, and capital, the Group achieved a net profit of RMB 1.388 billion, up 4.8% year on year. During the Reporting Period, the Group continued driving technological innovation, with newly signed technology development, licensing, and transformation contracts reaching RMB 720 million, steadily enhancing our research profitability. Our technology driven advantages led to steady growth and rising share in front-end and EPC businesses. This improved revenue structure has enabled the Company to maintain strong profitability and resilience amid intense market competition.

 

Second, we adhered to the “customer-centric” philosophy, building a competitive edge through “high level front end engineering capabilities plus optimal cost project execution capabilities”, achieving growth both in scale and quality of market development. During the Reporting Period, the Group signed EPC contracts for large scale domestic and overseas projects including the Sinopec Maoming Refinery Transformation and Ethylene Quality Enhancement Project and the Hassi Messaoud Refinery in Algeria, with newly secured contract value hitting a record high for the period, up 42.1% year on year to RMB 71.158 billion. Our order structure continued to improve, with front end, design, and EPC contracts accounting for 80% of new orders, further strengthening the foundation for high quality growth. During the Reporting Period, the Group’s overseas orders maintained rapid growth, with new contracts reaching USD 4.3 billion, a robust year-on-year increase of 82.7%, accounting for 43.5% of the total value of newly signed contracts. The Group’s front end capabilities have gained broader recognition in international markets. During the Reporting Period, the Group signed the FEED contract for the ADNOC NGL-5 Natural Gas Condensate Processing Project in the UAE, and in July 2025 signed a FEED+convertible EPC contract for the ACWA Yanbu large-scale green hydrogen project in Saudi Arabia.

 

Third, we remained committed to the principle of “investor‑oriented governance”, focusing on capital market concerns, enhancing corporate governance, and driving value realization, with continued improvements in the quality of our listed company status. During the Reporting Period, the Group advanced its “Green and Clean” strategy by establishing Sinopec Environmental Technology Co., Ltd., a specialized platform for environmental management with a view to capture the trillion-RMB markets and contribute to protecting clear waters, blue skies, and clean soil. The Group’s Wind ESG rating was elevated to AA, maintaining the highest level in the industry; and we won the “2024 Best ESG Practice Award” among Chinese listed companies from Wind. The Group’s ESG case was also selected for the demonstration list by the Ministry of Ecology and Environment. The Board attaches great importance on shareholder returns, and shares the Company’s high‑quality development results through ongoing “share buyback + cash dividend” programs. Considering profitability, shareholder returns, and sustainable development needs in the future of the Company, the Board resolved to distribute an interim dividend of RMB 0.160 per share. The payout amount set new records since the Company’s listing.

 

Chairman of SEG, Mr. JIANG Dejun said: “as the 14th Five-Year Plan draws to a close, the Board will lead all employees in firmly upholding the six fundamental principles of “quality, safety, environmental protection, compliance, stability, and integrity”. We will strengthen comprehensive risk prevention and control, and strive to improve operational performance and value creation, and ensure a decisive victory in concluding the 14th Five-Year Plan. The Company has achieved remarkable results in high-quality development since the start of the 14th Five-Year Plan, and its image as "industry leader in the engineering industry and a top performer in the capital market" has become increasingly prominent. Currently, we are actively formulating the 15th Five-Year Plan. With a global vision, we are building an internationalized operation as a new growth engine for the Company’s high-quality development; building an overseas operating model that integrates “global rules with Chinese efficiency”; enchancing dual strengths in “technology + front-end engineering” and “cost-efficient project execution”; taking concrete measures to prevent major risks, and striving to ensure that overseas projects can be acquired, executed well, and deliver real benefits. We will look to the future and actively lead the industrialization of the engineering and construction industry, empowering the industry through “integrated collaboration, technological innovation, digital transformation, intelligent manufacturing, green and low-carbon development” to pave way for high-quality growth in refining and chemical engineering. Guided by the principles of “product excellence, brand distinction, innovation leadership, and modern governance”, we will plan scientifically for the future, build a solid foundation for growth, accelerate our progress toward becoming a world class enterprise, and deliver superior returns to shareholders, contribute to society, and benefit our employees.”

 

Business Review and Highlights

 

Quantitative and qualitative increase in market development

 

During the Reporting Period, the value of new contracts signed by the Group was RMB71.158 billion, hitting a new record high for the same period, representing a year-on-year increase of 42.1%. Among which, the value of newly signed domestic contracts was approximately RMB40.182 billion, representing a year-on-year increase of 21.3%; the value of newly signed overseas contracts was approximately USD4.302 billion, representing a year-on-year increase of 82.7%.

 

In the domestic market, the Group continued to maintain overall competitiveness to continuously expand strategic emerging business such as new technologies, new materials and new energy while enhancing its core advantages in traditional businesses. During the Reporting Period, the representative newly signed domestic contracts included the EPC contract for the Maoming Ethylene Project with a total contract value of approximately RMB11.631 billion; the EPC contract for certain supporting refining units of Sinopec Luoyang Million-ton Ethylene Project (the “Luoyang Ethylene Project”) with a total contract value of approximately RMB3.291 billion; the EPC contract for Sinopec Jiujiang 1.5 Million-ton/Year Aromatics and Refining Supporting Renovation Project (the “Jiujiang Aromatics Project”) with a total contract value of approximately RMB1.961 billion; and the EPC contract for the MTO and olefin separation unit of China Energy Shenhua Baotou Coal-to-Olefin Upgrading Demonstration Project (the“Shenhua Baotou MTO”) with a total contract value of approximately RMB1.697 billion. During the Reporting Period, the Group signed 197 new contracts in the emerging business fields with the value of approximately RMB7 billion. Among them, 35 contracts were awarded in the clean energy/new energy fields, with the value of new contracts of approximately RMB1.6 billion; 162 contracts were awarded in the emerging fields such as new materials, new technologies, energy conservation and environmental protection, with the value of new contracts of approximately RMB5.4 billion.

 

In the overseas market, the Group strengthened the alliance with international peers and enhanced high-level mutual visits and promotional exchanges with strategic clients, thereby continuously expanding and optimizing our overseas market development. During the Reporting Period, the representative newly signed overseas contracts included the FEED + convertible EPC contract for the UAE NGL Project; contract for the feasibility study of the project regarding the production of aviation fuels from biomass using gasification in Vietnam; the EPC contract for the Hassi Refinery Project in Algeria with a contract value of approximately USD2.058 billion; and the EPC contract for the polyethylene and utilities project of the Silleno Petrochemical Complex Project in Kazakhstan (the “Kazakhstan Silleno PE & UIO Project”) with a contract value of approximately USD1.902 billion.

 

Steady progress in the construction of key projects

 

• North Huajin United Petrochemical Fine Chemical and Raw Material Engineering Project (the “Aramco Huajin Project”) (EPC): the project was in the peak stage of construction and installation with an overall progress of nearly 80%.

 

• PetroChina Jilin Petrochemical Refining and Chemicals Transformation and Upgrading Project Ethylene Plant (“Jihua Transformation and Upgrading Project”) (EPC): the project was completed and delivered, and officially entered the stage of inputting production materials and conducting trial operation.

 

• Maoming Ethylene Project (EPC): the project was in the stage of detailed design, and civil works commenced on site with an overall progress of over 20%.

 

• Lianhong Gerun (Shandong) Integrated Project of New Energy Materials and Biodegradable Materials (“Lianhong New Materials Project”) (EPC): the project was in the peak stage of construction and installation with an overall progress of over 70%.

 

• China Coal Yulin Coal Deep Processing Base Project (“China Coal Yulin Coal Chemical Project”) (EPC): the project was in the stage of detailed design, and civil works commenced on site with an overall progress of over 10%.

 

• SINOPEC SABIC Petrochemical Fujian Gulei Ethylene and Downstream Deep Processing Consortium Project (“SABIC Mangguo Ethylene Project”) (EPC): the project was in the peak stage of construction and installation with an overall progress of nearly 70%.

 

• Packages P1 and P2 of Saudi Aramco’s Riyas NGL Project (“Saudi Riyas Project”) (EPC): the design stage of the project was almost completed, and the project is entering the construction stage with an overall progress of over 30%.

 

• Tank Farm and Integration Project with SATORP Refinery under Saudi AMIRAL Project (“Saudi AMIRAL Project”) (EPC): the design work of the project was substantially completed, and the project is currently in the stage of procurement and construction with an overall progress of over 40%.

 

• Saudi Aramco’s Jafurah Gas Expansion Project Phase III (“Saudi Jafurah Project Phase III”) (EPC): The project was contracted in June 2024 and is currently in design and procurement stage. The construction work has started with an overall progress of over 20%.

 

• Saudi Aramco’s Crude Oil Pumping Station Upgrading and Improvement Project (EPC): the project was substantially completed and was in the final stage with an overall progress of over 90%.

 

• Kazakhstan Silleno Project: (1) the ethane cracking (ECU) project (EPC) is currently in the stage of design and procurement, construction work has been initiated with an overall progress of over 20%. (2) polyolefin and utilities (PE & UIO) project (EPC) was contracted and related work was commenced.

 

• Algerian Hassi Refinery Project (EPC): the project is currently in the peak stage of design and procurement, and construction preparations have been initiated with an overall progress of over 10%.

 

• Algerian LNG/MTBE (EPCC) Project: the design and procurement of the project was substantially completed, and the project is currently in the peak stage of construction with an overall progress of over 60%.

 

Continuous progress in technology innovation

 

During the Reporting Period, leveraging our strengths in project integration, innovation, and engineering transformation, the Group continuously expanded open cooperation in science and technology innovation. We organized targeted technical exchanges with relevant institutes of the Chinese Academy of Sciences, Tsinghua University, Beijing University of Chemical Technology, and other universities, and deepened cooperation in areas such as carbonyl synthesis, green chemistry, energy conservation and carbon emission reduction, and CCUS. We also explored technology development and collaboration with companies such as NEXANT, SABIC, and TR, advancing the global reach of our technologies. After the Reporting Period, we successfully hosted the 12th World Congress of Chemical Engineering and the 21st Asia Pacific Confederation of Chemical Engineering Congress, Sub Forum 12 on “Process Industry Innovation and Process Systems Engineering Reinvention”. The meeting focused on intelligent manufacturing, digital enablement, and green and low carbon development, attracting nearly 200 global experts, scholars, corporate representatives, and industry leaders for knowledge exchange and joint exploration of new paths for technological innovation and high quality growth in the industry.

 

During the Reporting Period, the Group focused its efforts on key core technologies, including (1) Sinopec Tianjin’s 150,000 tons/year ALL-PE package technology development and industrial demonstration application plan is progressing. This series of high performance polyethylene products have the characteristics of high strength, wear resistance, corrosion resistance and good biocompatibility, and have huge market potential especially in high-end medical materials and new energy materials. (2) Sinopec Hainan’s 60,000t/year PBST biodegradable material industrialization technology development and demonstration project has successfully produced qualified PBST products. Its products are of great significance to solve global white pollution and promote green and low-carbon development. (3) Sinopec Maoming’s 50,000 tons/year polyolefin elastomer (POE) industrial demonstration project has been successfully launched and qualified products have been produced. It has provided high-performance material solutions for the fields of new energy, automobiles and electronics. (4) The project “Research on the Application of Flux-Cored Wires in Petrochemical Carbon Steel Pipes” has successfully passed the acceptance check, improving construction efficiency and quality.

 

During the Reporting Period, the Group signed 187 new technology development contracts of various types with a total contract value of RMB469 million, and 38 new technology licensing and technology transformation contracts with a total contract value of RMB251 million.

 

During the Reporting Period, the Group filed 356 new patent applications, of which 71.9% were invention patents; and 103 newly licensed patents, of which 44.7% were invention patents. As at the end of the Reporting Period, the Group had 4,555 valid patents, of which 52% were invention patents. The quality of patents was consistently optimized.

 

During the Reporting Period, the Group received a total of 34 science and technology progress awards in scientific and technical innovation and engineering construction fields at the provincial and ministerial or above level. The Group also received seven provincial and ministerial-level quality engineering awards.

 

Leading new industrialization in the engineering and construction industry

 

The Group develops new quality productivity and builds its core competitiveness around innovation and practicality.

 

Artificial intelligence applications

 

During the Reporting Period, the Group continued to explore innovative applications of “AI for Science, AI for Design, AI for Engineering, AI for Construction and AI for Operation”. We have conducted a number of research projects on AI, including in the field of design, building knowledge graphs to enhance design efficiency, exploring the transition from traditional to generative design, and in the field of construction, applying AI to optimize whole lifecycle engineering plans, shorten iteration cycles, improve scheduling, and boost overall construction efficiency. We organized research on smart design special projects in 13 key areas, including ethylene devices and HAZOP process safety, and formed professional models in various scenarios, such as design smart review, smart process safety analysis, and structural smart design. During the Reporting Period, the Group has already achieved key milestones in areas such as plant wide process optimization, intelligent drawing review, 3D model verification, and smart piping design.

 

Advanced automation technology and robot substitution

 

During the Reporting Period, the Group promoted advanced equipment and steadily shifted from conventional construction methods to a model characterized by “standardized lean design, factory based manufacturing, and modular installation”. We are strengthening integrated capabilities across collaborative design, supply chain management, constructability studies, and project interface management, thereby enhancing quality and value creation across the industrial chain. Through digital and intelligent enablement, including the deployment of “machine OEM” smart equipment and automated production lines, we are transforming production organization, improving construction efficiency, and enhancing safety performance. We are advancing intelligent operations and maintenance, extending the scope and depth of digital plant delivery, developing a “digital twin” O&M platform, and piloting remote technical and intelligent support service centers for process operations.

 

During the Reporting Period, the Group continued to promote the research and development and application of high-efficiency automation technology such as automatic welding robots, intelligent equipment for intelligent welding demonstration production lines, remote control construction machinery and industrial robots, so as to effectively reduce costs and improve efficiency. During the Reporting Period, the Group continued to build the Efficient Automation Technology System and compiled a list of 86 high-efficiency construction equipment applications; prepared the Application Guide for Engineering Construction Intelligent Equipment, introducing 8 application equipment for welding, commissioning, inspection and measurement scenarios, 12 application equipment for supply chain intelligent management, intelligent engineering, green and low-carbon development and factory-based manufacturing scenarios, as well as intelligent equipment for special scenarios such as inspection and repair, demolition and nondestructive testing.

 

Informatization management and digital application

 

During the Reporting Period, the Group continued to optimize and integrate its corporate management systems and management processes, and promoted the data integration and the upgrading of integrated platforms for project management, construction management, intelligent construction sites and operation management businesses in accordance with the information application framework 2.0. The Group empowered supply chain collaboration through digital technology to develop intelligent supply chain management capabilities throughout the project life cycle, and implemented intelligent management of human resources, machinery and equipment, materials and other resources on construction sites, and formed standard procedures and intelligent management measures for the construction processes such as organization, operation, progress, quality and safety, to create standardized intelligent construction sites.

 

Maintaining a good performance of QHSE

 

During the Reporting Period, the Group had 1,770 on-going domestic and overseas projects with over 100,000 on-site employees on average per day. As at the end of the Reporting Period, the cumulative safety labor hours were RMB165 million with no safety, quality or environmental protection incidents reported, achieving the goal of safe, high-quality and clean production.

 

During the Reporting Period, the Group comprehensively promoted the establishment of the work safety standardization team, continuously required three types of key management personnel including group leaders, team leaders and subcontractors to provide services with certification, and completed the training covering all the strategic subcontractors. The special evaluation and inspections on the design of pressure vessels and pressure pipelines were carried out to reduce the HSE risks from the source. The Group developed and established an operation supervision platform for “major hazardous projects” which adopts three-level control and whole-process informatization dynamic monitoring and establishes a problem database in the refining and chemical engineering segment. Focusing on the four major goals of carbon reduction, pollution reduction, efficiency improvement and green development, the Group initiated the second stage of green enterprise action for energy conservation and emission reduction at the design source, and comprehensively promoted green construction.

 

Business Prospects

 

The Group has set its target for market development of RMB63 billion for domestic market and USD5 billion for overseas market at the beginning of the year. Looking forward to the second half of the year, the Company will fully implement the work requirements of the Board, focus on tasks related to production and operation as well as reform and management, make every effort to achieve the annual production and operation targets. In the second half of the year, the Group will focus on the following tasks:

 

Firstly, the Group will adjust the structure to create new growth and strengthen market development with greater efforts. Domestically, the Group will seize market opportunities and focus on tracking services and development of key projects to strengthen our traditional advantages in petroleum chemical, coal chemical, and natural gas markets; actively explore new fields such as high-end carbon materials, sustainable aviation fuel, green hydrogen, green ammonia, and green methanol to foster new growth engines. The Group will accelerate its expansion into new markets, expand its customer base and make every effort to explore new opportunities in the market. Internationally, the Group will increase exchanges and cooperation with international energy licensors, high-quality strategic clients and engineering service peers. The Group will firmly pursue high-quality development in high-end and front-end businesses, extend to the front end of the engineering services value chain, focus on consulting, FEED, detailed design, and procurement, with construction-end businesses as supplements, so as to enhance the technological content and efficiency of engineering services. The Group will continue to deepen its development in traditional advantageous markets such as the Middle East, Central Asia and North Africa, while increasing its efforts in exploring emerging markets. Building on the advantages in traditional refining and chemical products, the Group will expand into new energy business such as green hydrogen, blue ammonia, green ammonia and circular economy.

 

Secondly, the Group will strengthen project management to promote the improvement of profitability. The Group will give full play to the advantages of an integrated whole industry chain, optimize the whole process of project management, and enhance the profitability of the entire chain of engineering construction. The Group will accelerate the promotion and application of research results such as design optimization and constructability, accelerate the application of advanced automation technology of “replacing labor with machines”, and promote the construction of low-cost centers in the Middle East. The Group will continue to improve its contract performance capabilities, strengthen the risks identification and management in the whole process of projects, and further improve the management of schedule, revenue and cost planning, as well as contract modification and process settlement. By deepening the construction of QHSE management system, the Group strives to promote the efficiency of the management system, thereby laying a solid foundation for safe, environmentally friendly and green development.

 

Thirdly, the Group will adhere to an innovation-driven strategy and enhance the leading and driving role of research and development. The Group will leverage its advantages in the whole industry chain, technology, talents and capital to accelerate the deployment of technologies in new areas. Through strengthening open cooperation in scientific and technological innovation,

effectively organizing the sourcing of technology with scientific research institutes and universities, the Group will accelerate the development of scientific and technological innovations and transformation and deepen technological cooperation with internationally renowned patent holders and engineering companies. The Group will accelerate the deployment of AI intelligent design, actively utilize digital technologies to upgrade traditional industries while deploying its resources in future industries. The marketing and promotion of the Group’s technologies will be further strengthened, so as to continuously enhance the reputation and influence of the Group’s technologies.

 

 

Summary of Financial Data and Indicators Prepared in Accordance with International Financial Reporting Standards (“IFRS”)

 

Unit: RMB’000

Items	As at 30 June 2025	As at 31 December 2024	Changes from the end of 2024 (%)
Current assets	80,703,154	73,465,738	9.9
Non-current assets	7,697,040	8,047,601	(4.4)
Total equity attributable to equity holders of the Company	31,968,263	31,512,063	1.4
Net assets per share attributable to equity holders of the Company (RMB)	7.28	7.17	1.4

 

Unit: RMB’000

Items	For the six months ended 30 June		Changes over the same period of 2024 (%)
	2025	2024
Revenue	31,558,914	28,654,028	10.1
Gross profit	2,599,279	2,508,158	3.6
Operating profit	1,159,485	936,440	23.8
Profit before taxation	1,609,334	1,519,455	5.9
Net profit attributable to equity holders of the Company	1,383,520	1,319,795	4.8
Basic earnings per share (RMB)	0.32	0.30	4.8
Net cash flow generated from/ (used) in operating activities	3,300,741	(4,163,942)	-
Net cash flow generated from/ (used) in operating activities per share (RMB)	0.75	(0.94)	-

 

Items	For the six months ended 30 June
	2025	2024
Gross profit margin (%)	8.2	8.8
Net profit margin (%)	4.4	4.6
Return on assets (%)	1.6	1.6
Return on equity (%)	4.3	4.2
Return on invested capital (%)	4.4	4.3

 

Items	As at 30 June 2025	As at 31 December 2024
Asset-liability ratio (%)	63.8	61.3

 

 

~ End ~

 

This press release is issued by PRChina Limited on behalf of SINOPEC Engineering (Group) Co., Ltd.

 

About SINOPEC Engineering (Group) Co., Ltd.

 

The Group is a leading energy and chemical engineering company in the PRC with strong international competitiveness and can provide domestic and overseas clients with overall solutions for petrol refining, petrochemicals, aromatics, coal chemicals, inorganic chemicals, pharmaceutical chemicals, clean energy, storage and transportation facilities, environmental protection and energy saving, among other industry sectors. The Group is an integrated service provider for the whole industry chain and the whole life cycle in energy and chemical industry and can provide overall industry chain services including engineering consulting, technology licensing, project management contracting, financing assistance, EPC (engineering, procurement and construction) contracting, as well as design, procurement, construction and installation, lifting and transportation of large equipment, precommissioning and start-up.

 

After nearly 70 years of continuous development, the Group currently has an academician of the Chinese Academy of Sciences, three academicians of the Chinese Academy of Engineering and more than10,000 professionals. The Group has rich project management and implementation experience, and owns and cooperatively owns patents and know-how in core business areas. The Group has delivered on schedule hundreds of modern factories with enormous investment, complicated process, advanced technology and high quality to clients in more than 20 countries and regions around the world, established long-term and steady cooperative relationships with large energy and chemical enterprises at home and abroad, maintained an extensive and stable client base, and enjoys remarkable industrial influence and social reputation.

 

In the future, adhering to the development orientation of “Integrated Service Provider with Whole Industry Chain and Whole Life Cycle in Energy and Chemical Industry”, the Group will base itself on the energy and chemical engineering construction industry, continuously broaden its business scope and extend its value chain. The Group take “Engineering Innovation” and “Value Creation” as the development engines and deepen the implementation of the six development strategies of “Value-Oriented, Innovation-Driven, Green & Clean, Talent-Based, Globalization-Targeted, Fusion & Symbiosis”. The Group comprehensively improve the level of safe, efficient, green and low carbon service in the business chain, and fuel a new momentum in achieving the corporate vision of “building the world’s leading technology-oriented engineering company”.

 

Disclaimer

 

This press release includes “forward-looking statements”. All statements, other than statements of historical facts that address activities, events or developments that the Group expects or anticipates will or may occur in the future (including but not limited to projections, targets, other estimates and business plans) are forward-looking statements. The Group’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond the Group’s control. In addition, the Group makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

 

Investor and Media Enquiries:

 

SINOPEC Engineering (Group) Co., Ltd. - Office of the Board

Liu Jingjing /Zheng Zhexia

Tel: (86) 10 5673 0523 / (86) 10 5673 0525

Email: seg.ir@sinopec.com

 

 

PRChina Limited

David Shiu / Rachel Chen

Tel: (852) 2522 1838 / (852) 2522 1368

Fax: (852) 2521 9955

Email: seg@prchina.com.hk