HONG KONG, Apr 1, 2019 - (ACN Newswire) - The leading international engineering contractor, China Machinery Engineering Corporation ("CMEC" or the "Group", stock code:1829.HK) is pleased to announce the audited consolidated results for the year ended December 31,2018 ("the Reporting Period").
2018 Annual Results Financial Highlights
For the year ended December 31,2018, the Group
- Revenue amounted to RMB28,862.6 million, representing an increase of 5.4%;
- Net profit attributable to owners of the parent amounted to RMB2,131.5 million, representing an increase of 20.1%;
- Basic earnings per share amounted to RMB0.52, representing an increase of 20.9%;
- The board recommended that a final dividend of RMB0.2067 per share is to be distributed to the shareholders.
In 2018, driven by the supply-side structural reform, China's economy maintained stable and moderate growth, with an aggregate economic output exceeding RMB90 trillion. The economy grew at a reasonable pace, seeing further structural improvement. Affected by external factors, the global economy fluctuated vigorously, while the growth of international trade was slowed down and prices of bulk commodity declined. The entire market is facing new challenges. China plays an important role in the global economy. Given the increasing demand for engineering contracting business from different countries and with the support from various favorable factors, new economic drivers such as new economy and new industry are arising and the structural optimization continues to produce positive effects.
Ding the Reporting Period, the Group's revenue amounted to RMB28,862.6 million, representing an increase of 5.4% for the year ended December 31, 2017; Net profit attributable to owners of the parent amounted to RMB2,131.5 million, representing an increase of 20.1% compared to the previous year; basic earnings per share amounted to RMB0.52, representing an increase of 20.9% for the year ended December 31, 2017. The Board recommended the distribution of a final dividend of RMB0.2067 per share for the year ended December 31,2018.
International Engineering Contracting Business continued to grow
The International Engineering Contracting Business is one of the Company's traditional core businesses, accounting for about 63.3% of the Company's total revenue in 2018. In 2018, amid a severe external environment, the International Engineering Contracting Business stood up to pressure and maintained a steady development. In response to the national policies, such as "the Belt and Road" initiative, and market changes, the development direction of key market projects was adjusted, with resources allocation concentrated on highlighting key features, fine products, long-term efficiency and innovation. Therefore, the Company achieved major breakthroughs in many new market projects. Meanwhile, the Company was making good progress in the development of new model. In line with the changes of the international energy market, the Company focused on identifying new energy projects and establishing cooperation with external parties. Currently, the Company is operating more than 100 projects, and the overall execution is sound, without any major safety, quality, delay or other issues being discovered. Besides, the Company made progress in project refinement and management. During the Reporting Period, the Company's revenue generated from the International Engineering Contracting Business increased by 7.4 % to RMB 18,280.9 million as compared to 2017.
Domestic and international capacity cooperation continues to deepen
The Group has formed multi-level, multi-domain, multi-mode cooperative relationships with GE, Siemens and other external strategic partners, resulting in actively promoting the new model development policies, a more in-depth cooperation mode and a closer cooperative relationship, and move to the high end of the industrial value chain. Meanwhile, the company has established industrial alliances with domestic partners such as XD Group and DEC, through the vertical and horizontal links of the industrial chain, the long-term mutual benefit between the peers, and the deep cooperation at the capital level to jointly create a new competitive advantage based on the industrial chain.
New energy business to support green development
In 2018, following the changing trend of international energy market, the Company focused on capturing new energy projects, thereby venturing into the field of new energy. The Company signed a contract in respect of a geothermal project in Kenya, which was its first geothermal power station project and laid a solid foundation for the development of the new geothermal energy market. The wind power project in Kenya was also put into operation. Besides, the Company signed contracts for the photovoltaic power plant projects in Ukraine, Bangladesh and Malaysia. In particular, the photovoltaic power plant project in Ukraine will become the largest single photovoltaic power plant in Europe when completed. In addition, after the completion of the power plant project in Jhang, Pakistan, the Company will have gas turbine power stations ranging from class E to H, solar photovoltaic, wind power, geothermal and other types of clean energy, green energy project performance, virtually realizing a basic coverage of all new energy categories and facilitating its green development.
China Machinery Engineering will adhere to the overarching theme of "seeking progress while maintaining stability", strive to the principle of high-quality development, and lay down a solid foundation for the new phase of strategic planning. In the year 2019 in which new strategy will be implemented, the Company will strive to provide "one-stop" solutions by actively making use of various high-end platforms, multi-bilateral economic and trade cooperation mechanisms and diplomatic opportunities. It will also work energetically to develop new markets, offer consistent support to technological innovation and enhance its market competitiveness through model innovation and industrialization. Adhering to its strategy, the Company will optimize business structure, improve business coverage and break new ground for operation and development with a view to delivering attractive return to shareholders.
About China Machinery Engineering Corporation
Founded in 1978, China Machinery Engineering Corporation is a leading international engineering contractor and service provider in China. The Group is capable in providing project owners with one-stop customized and integrated turnkey services to manage and implement projects. Its engineering contracting projects cover a broad industry spectrum, from power and transportation to telecommunications sectors. China Machinery Engineering Corporation was one of the first Chinese engineering contractors that offered engineering contracting services for international power projects with over 30 years of industry experience. Its extensive trading network radiates through over 150 countries and regions, giving it unrivalled leadership among Chinese engineering contractors in terms of international revenue. The shares of the Group are listed on the main board of The Stock Exchange of Hong Kong Limited since 21 December 2012 (stock code: 1829.HK). Its Controlling Shareholder is China National Machinery Industry Corporation.