China National Chemical Engineering (601117) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 90.61 billion, down 0.35% year-over-year; net profit attributable to shareholders was RMB 2.84 billion, down 3.63% year-over-year.

• Gross margin improved to 9.40%, up 1.04 percentage points year-over-year.

• New contract value signed in H1 2024 was RMB 203.57 billion, up 10.05% year-over-year, with overseas contracts up 132.53%.

• Cash flow from operating activities was a net outflow of RMB 4.57 billion, mainly due to reduced deposits at the group’s finance company.

• No interim dividend or capital increase from reserves was proposed.

Financial highlights

• Operating income: RMB 90.61 billion (down 0.35% year-over-year).

• Net profit attributable to shareholders: RMB 2.84 billion (down 3.63% year-over-year).

• Net profit after non-recurring items: RMB 3.05 billion (up 3.46% year-over-year).

• Basic and diluted EPS: RMB 0.46 (down 4.17% year-over-year).

• Net assets attributable to shareholders: RMB 60.54 billion (up 5.29% from year-end 2023).

• Total assets: RMB 223.59 billion (up 2.04% from year-end 2023).

• Operating cash flow: net outflow of RMB 4.57 billion (vs. inflow of RMB 226 million in H1 2023).

Outlook and guidance

• Management expects continued growth in chemical engineering and new materials, leveraging strong order backlog and international expansion.

• Focus remains on high-end, green, and intelligent chemical engineering, with strategic investments in innovation and overseas markets.