Wison Engineering Announces 2017 Interim Results

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Wison Engineering Announces 2017 Interim Results

Aug 25,2017        

Substantial Y-o-Y Growth in Revenue and Profit Attributable to Owners of the Parent by 54.7% and 98.1%


Shanghai, 25 August 2017 – Wison Engineering Services Co. Ltd. ("Wison Engineering" or the "Company", SEHK stock code: 2236, together with its subsidiaries, the "Group"), one of the leading chemical engineering, procurement and construction management ("EPC") service providers in China, today announced its interim results for the six months ended June 30, 2017 ("the Period under Review" or "the first half of 2017").


During the Period under Review, the number of domestic and overseas projects of the Group reached its construction peak, leading to a significant year-on-year increase in revenue. The Group's revenue increased by 54.7% year-on-year to approximately RMB1,380.2 million. Profit attributable to the owners of the parent rose significantly by 98.1% to approximately RMB40.5 million.


The Group has recorded notable achievement in its business diversification strategy. Coal-to-chemicals segment accounted as the top revenue contributor. During the Period under Review, the new contract value was secured by the Group increased by 109.5% year-on-year to approximately RMB1,371.1 million, petrochemicals business and coal-to-chemicals business accounted for 39.8% and 60.0%, respectively. 14 engineering, consulting and technical services and engineering, procurement and construction contracts were newly signed in aggregate.


Mr. Liu Haijun, Executive Director & President of Wison Engineering, said, "In the first half of 2017, crude oil prices stayed low while prices of main chemical products remained at a higher level. Profitability of the chemical industry continued to rise, entering a prosperous cycle and turning around the prolonged sluggish fixed assets investment in the chemical industry. When the industry started to turnaround, the Group grasped market opportunities and focused on business expansion, thus achieving a corresponding increase in the number of new orders. Meanwhile, the Group further implemented its strategy of internationalization, realizing milestone progress in overseas business expansion in the middle-east, CIS and the Americas. Furthermore, the Group is currently under negotiations and providing quotations in a number of orders in the international market, laying a solid foundation for the future business growth of the Group."


Further implemented internationalization strategy, global business expanding in full swing


During the Period under Review, the Group continued to increase its input in overseas markets. Leveraging on its excellent project execution ability, the Group has gained 8 projects in the Middle East region. There were 5 on-going projects in 2017, including 1 expansion and revamping works for an ethylene-to-ethylene oxide and ethylene glycol ("EOEG") plant and its utility facilities, 3 debottlenecking projects and 1 boiler project. In South America, the main construction work of the site preparation project of PDVAS RPLC of the Venezuela National Oil Company has been completed and gained reputation from the local market. At the same time, the Group has continued to explore new markets and new business areas. The Group actively participated in the tendering of EPC projects in different fields such as oil refining, petrochemicals and industrial furnaces in CIS, North America, Africa, South-East Asia, so as to tap new markets and expand new customer base.


While devoting in the development of overseas market, the Group also continues to strengthen its business expansion in the domestic market. The Group has seen a large increase in the number of new orders from domestic market in the first half of 2017. Among which, important projects include 3 new contracts of Lu'an Group (潞安集团) and ethylene project of Zhejiang Shihua (浙江石化). For the ethylene project of Zhejiang Shihua, it is an integrated delivery with industrialized prefabrication and assembly will be adopted, and is the largest integrated delivery project of cracking furnace unit in the world to date.The signing of this project fully demonstrates the Group's leading position in the domestic ethylene cracking furnace industry and the competitive advantage of modular delivery.


Technological innovation to drive the development of the company, focus on clean energy and green chemical engineering


During the Period under Review, the Group has applied 5 invention patents, and obtained 2 invention patent rights and 9 software copyright patents. To date, the Group has ethylene cracking furnace technology, methanol to olefins (MTO) separation technology, butane oxidation dehydrogenation of butadiene technology, improved low temperature methanol washing technology, methanol distillation energy-saving technology, synthetic gas ethanol / Ethylene glycol technology, downstream water-cooled gasification technology, VESTA no cycle methanation technology and other 12 proprietary technology, a total of 71 authorized patents.


In the first half of the year, the Group signed 4 technical service contracts with Nanjing Chengzhi Yongqing Energy Technology Co., Ltd (南京诚志永清能源科技有限公司) to realize the 11th successful licensing of its own olefin separation technology and the second commercial application of butane oxidation and butadiene technology. Meanwhile, synthetic gas to ethanol and epoxide technology Pilot plant have been constructed steadily, they will help owners save energy, achieve industrial upgrading and sustainable green development in the future.


Project progressing smoothly, recognition by customers for quality and safety


During the Period under Review, 4 large-scale projects undertaken by the Group has reached completion stage and were ready for delivery. These include the high sulfur coal to liquid, chemical, heat and power integration project in Lu'an, Shanxi, project of Jilin Connell methanol-to-olefins (MTO), the gasoline hydrogenation and benzene de-bottlenecking project of Petrokemya in Saudi Arabia, and air separation and adding nitrogen renovation project of GAS.


Over the 3-year construction period, Project in Lu'an has received numerous awards, including "Best HSE Management Award in 2013 (2013年HSE管理最优奖)", "Outstanding Contribution Award in 2013 (2013年突出贡献奖)", and "Safety Model Units (安全模范参建单位)" and "Outstanding Safety Award (安全杰出贡献奖)" in 2014 and 2016. For the project of Connell MTO has been named as "Safety Advanced Unit (安全先进单位)", "Safety Advanced Collective (安全先进集体)", and "Advanced Construction Collective (工程建设先进集体)". For the gasoline hydrogenation and benzene de-bottlenecking project of Petrokemya, the owners highly praised the Group for achieving 80,000 safety man-hours performance. For the Air separation and adding nitrogen renovation project of GAS, it has achieved mechanical completion 10 days earlier than the original plan so it was awarded the honorary medal by the owner and expressed great expectations to maintain long-term stable relationship with the Group.


Adjustment to organization structure, fulfilling the requirements for a new undertaking


During the Period under Review, The Group has employed approximately 150 staff in the first half of the year and will recruit approximately 150 staff in the second half of the year. Most of the new recruitments are frontline staff to support the Group's new undertaking and developing its international and domestic businesses. At the same time, in order to train staff to be market-driven and focus on the needs of customers, the Group actively carry out different training and interactive forms, such as entrepreneurial training camp, Wison lectures, and president of the letter.


Looking ahead to the future, Mr. Liu Haijun said, "Under the macro environment of chemical industrial recovery, the Group will make relentless efforts to improve its operations and setting a new undertaking as its long-term strategic objective. In the future, the Group will reinforce its three strategies of 'market driven development, international expansion and differentiated leadership', to adjust our implementation policies and key initiatives and exert greater efforts in face of new opportunities and challenges. The Group is committed to achieving stable growth in sales and become a leading technology, management and service with international competitiveness of the engineering services company in the near future, while creating value for shareholders and other stakeholder as rewards to their support."

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