China National Chemical Engineering Co., Ltd. Contract Amount Exceeds 300 Billion

On November 18, 2024, China Chemical Engineering Co., Ltd. announced the operating briefing for the first ten months of the year: From January to October, a total of 4,248 contracts were signed, with a total contract value of 311.28 billion yuan.

It is reported that the above contract involves the projects of many well-known chemical enterprises, including but not limited to Wanhua Chemical, Rongsheng Petrochemical (Zhejiang Petrochemical), Hubei Yihua, China Coal, Dongyue Chemical, etc.

In addition, in October, China Chemical Engineering Co., Ltd. also signed strategic cooperation agreements with Satellite Chemical and Hengyi Group, two chemical giants.

As a leading chemical engineering general contractor in China, China Chemical Engineering Group Co., Ltd. is a knowledge - and technology-intensive engineering company with the most complete qualification and the most complete business chain. Since 1995, the company has been ranked as one of the world's top 250 engineering contractors by the Engineering News Record (ENR) for several consecutive years, ranking 16th in 2023, and among the top three engineering contractors in the oil and gas industry for several consecutive years.

From the perspective of sub-business segments, the business segments of China Chemical Engineering Co., Ltd. mainly include chemical engineering, infrastructure, industry and new materials, environmental governance, modern service industry and other sectors.

Since 2014, although the company's overall revenue volume has fluctuated, since bottoming out in 2016, revenue has continued to grow, breaking through the 100 billion yuan mark for the first time in 2019, and approaching 180 billion yuan by 2023.

In the revenue of 178.358 billion yuan in 2022, the chemical engineering, infrastructure, industrial and new materials sectors achieved operating income of 142.373 billion yuan, 21.994 billion yuan and 7.715 billion yuan, accounting for 79.8%, 12.3% and 4.3% of the total revenue, respectively. The gross margins of the three sectors were 9.87%, 7.09% and 8.07%, respectively.

China Chemical Engineering Corporation has a significant competitive advantage in the field of chemical engineering construction, which is the main driver of its revenue growth.

Since the bottom of the last cycle in 2016, the domestic petrochemical industry has entered a new round of fixed asset investment cycle, marked by the construction and production peak of private refining and chemical enterprises in 2018-2019.

From the perspective of core business form, China Chemical Engineering Co., Ltd. is a typical order-based company, and its industrial order volume is closely related to policy guidance, industry prosperity, fixed asset investment and other factors.

The company focuses on the development of "new materials, high barriers" field. China Chemical Engineering Corp. 's industrial foray started early, but the process did not go smoothly. In 2011, the company began to plan a series of industrial investments, the main projects include "1 million tons/year refined terephthalic acid (PTA) project", "polyester and nylon new material project" and "200,000 tons/year caprolactam project". Among them, polyester and nylon new material projects were suspended in 2015 before capital investment due to low product prices; PTA project experienced twists and turns, and finally came to an end in the way of leasing; Caprolactam project successfully landed.

In 2017, Mr. Dai Hegen served as the new chairman of the company, and the importance and resource allocation of the industrial and new material sectors were significantly improved. Under the influence of the aforementioned less successful industrial transformation cases, the company began to pay attention to the "new chemical materials" industry with growth and the industrial investment direction with core technical barriers, and began to lay out 50,000 square meters of silicone-based nanoaerogel composite materials, 500,000 tons of PBAT and supporting projects, adiponitrile (Tianchen-Qixiang) and other projects.

On April 1, 2024, Mr. Mo Dingge was appointed as the Secretary of the Party Committee and Chairman of China Chemical Engineering Group Corporation Limited. Mr Mok, who is 55 years old, said his priority after taking over as chairman was to achieve innovative improvements in the succession.

To this end, the company plans to increase the layout of new materials, fine chemicals, green chemicals, intelligence and other fields; Formulate and implement the Group's "135" development strategy, and decide to achieve further improvement in scientific and technological innovation in the next one, three and five years; At the same time, we will vigorously develop core business upgrades and implement "T+EPC" (T is technology, EPC is engineering design, procurement, construction) business model innovation.