Revenue Growth across Onshore and Offshore Clean Energy and Hydrogen Businesses
Hit Record High for Backlog Orders
Financial Highlights:
• Revenue for the first half of 2024 increased steadily to RMB11.48 billion
• Backlog orders hit a new record high, up 42.5% to RMB29.35 billion
• Accumulated newly signed orders totaled RMB16.40 billion, a year-on-year (“YoY”) increase of 29.5%
• Revenue from clean energy saw a remarkable growth of 25.1%, reaching RMB7.88 billion
• Newly signed orders in offshore clean energy surged 128.0% YoY to RMB6.86 billion
• Hydrogen business revenue grew significantly by 65.2% to RMB450 million
• Newly signed orders in the chemical and environmental segment showed a substantial quarter-on-quarter (“QoQ”) improvement, increasing by 245.4% in Q2 2024 compared to Q1
(Hong Kong, 22 August 2024) – CIMC Enric Holdings Limited (the “Company”, together with its subsidiaries referred to as the “Group”) (Hong Kong Stock Code: 3899.HK) is pleased to release its unaudited interim results for the six months ended 30 June 2024 (the “Period”).
Mr. Gao Xiang, Chairman of CIMC Enric, stated, “Amid the ongoing global energy transition, LNG has enjoyed booming supply and demand and rapid growth, garnering popularity from many national governments and energy giants. In the first half of 2024, the Group’s clean energy revenue and order growth were impressive. We have continued to refine our overseas business layout and enhance our upstream hydrogen capabilities. The chemical and environmental segment saw a significant QoQ improvement in newly signed orders, maintaining our global market share of tank containers at No. 1 for 20 consecutive years. In the liquid food segment, the Group is actively responding to market changes and seizing growth opportunities in the domestic spirits market.”
For the first half of 2024, the Group’s revenue grew by 6.7% to RMB11.48 billion, with profit attributable to shareholders amounting to RMB490 million and basic earnings per share at RMB0.241. During the Period, the Group’s total accumulative newly signed orders amounted to RMB16.40 billion, representing a YoY increase of 29.5%. As of 30 June 2024, the backlog orders stood at RMB29.35 billion, marking a 42.5% YoY increase and reaching a historic high.
Operational Performance
In the Clean Energy segment, revenue increased by 25.1% YoY to RMB7.88 billion, with hydrogen business revenue growing significantly by 65.2% to RMB450 million. Clean energy revenue accounted for 68.6% of the Group’s total revenue. Newly signed orders for clean energy rose sharply by 63.3% to RMB12.92 billion, while the backlog orders reached RMB22.93 billion, up 70.7% YoY, setting a new record.
In the first half of 2024, the natural gas market saw further recovery, with strong supply and demand. The growth in both apparent consumption and import volume of natural gas, coupled with LNG’s price being more economic than diesel, drove significant sales growth for the Group’s clean energy storage and transportation equipment and terminal applications such as on-vehicle LNG cylinders.
Revenue from offshore clean energy business rose sharply by 48.9% YoY to RMB1.77 billion, with the backlog orders surging 136.9% to RMB15.06 billion, and newly signed orders increased by 128.0% YoY to RMB6.86 billion. During the Period, benefiting from the shipping vessel replacement cycle and global shipping green upgrades, the market for small and medium-sized liquefied gas vessels remained robust. CIMC Enric secured 12 new building vessel orders for main vessel types, including four 40,000 m3 MGC vessels and eight LNG carrier and bunkering vessels. Additionally, the Group successfully delivered three vessels during the Period, including the first 12,000m3 LNG carrier and bunkering vessel in China to CNOOC. The Group is also proactively engaging in the development of green methanol fuels, and is steadily pushing forward its first biomass green methanol demonstration project with an annual production capacity of 50,000+200,000 tons in Guangdong.
For hydrogen business, the Group has further strengthened the layout of the “production, storage, transportation, refuelling, and application” of the entire hydrogen energy industry chain, as well as its integrated service capabilities. In the upstream hydrogen field, CIMC Enric successfully acquired core assets from [Beijing Zhongliansheng], enhancing its engineering design and technical capabilities in coke oven gas comprehensive utilisation (including the production of hydrogen, LNG, methanol, synthetic ammonia, etc.), and improving the “[production end]” business layout. Additionally, the Angang CIMC project for joint production of hydrogen and LNG from coke oven gas has commenced operation, with several other projects actively under construction or in preparation.
In the Chemical and Environmental segment, revenue for the Period was RMB1.30 billion, accounting for 11.3% of the Group’s total revenue. The global economy, including the chemical industry, has experienced a weak recovery, leading to a slowdown in demand for tank containers compared to previous high growth rates. In the long term, factors such as the gradual promotion of multimodal transport policies, stricter chemical safety requirements, and trans-regional investments in the chemical industry are expected to support a long-term upward trend in the tank container industry. This segment remains the global market leader for tank containers in terms of market share, with resilient development; the medical equipment component business shows steady growth; and the aftermarket business continues to advance.
In the Liquid Food segment, revenue for the Period was RMB2.30 billion, accounting for 20.1% of the Group’s total revenue. Despite continued softness in the global consumer market, with clients adopting a more cautious approach to capital expenditures and resulting in delays in delivery nodes for certain projects, the Group has implemented various mitigation measures to actively address market changes and seize growth opportunities in the domestic spirits market, winning several tenders for spirits projects. Additionally, on 28 June 2024, the business entity of this segment, CIMC Liquid Process Technologies Co., Ltd. (“CLPT”), was approved for the public transfer and quotation on the National Equities Exchange and Quotations System (“NEEQ”), and the quotation of CLPT on the NEEQ has officially commenced on 8 August 2024, with the security code: 872914.
Prospects and Future Plans
Clean Energy Segment
As a leading advanced and intelligent manufacturer of clean energy equipment, CIMC Enric is expected to continue benefiting from the growing demand for LNG-related storage and transportation equipment and engineering services. The Group will continue to expand business opportunities in Southeast Asia, Africa, the Middle East, and South America. In the offshore clean energy segment, with the upgrading of environmental protection requirements, newbuild vessels for alternative fuels such as LNG, methanol, and liquid ammonia are expected to grow steadily. In China, the implementation of the [“Detailed Implementation Rules for Subsidies for Scraping and Renewal of Old Operating Ships in Transportation”] is anticipated to accelerate the replacement of old vessels, driving sustained demand for LNG-powered vessels, LNG marine tanks, and LNG-powered package. In the hydrogen segment, hydrogen has been recognised as a crucial component of China’s national energy system and a critical carrier for achieving green and low-carbon transformation. CIMC Enric will continue to deepen its “production, storage, transportation, refuelling, and application” full-industry chain layout and integrated solution capabilities, focusing on hydrogen market changes and opportunities. The Group will emphasise the replication and promotion of upstream coke oven gas hydrogen co-production LNG business models, promote the application of digital and intelligent technologies in the “end-to-end” clean energy scenarios, support energy conservation and carbon reduction in the steel industry, and inject new quality productivity into traditional industrial fields.
Chemical and Environmental Segment (CIMC Safeway)
In response to the robust development of the new energy industry and national policy support for high-end technology industries, this segment will focus on several key areas, including electrolyte tank containers and electronic-grade inner liner tank containers, to address rapid market changes and expansion. Additionally, the Group will actively enter the biopharmaceutical industry, developing pharmaceutical-grade tank container products and expanding into new business areas in medical testing, industrial, and scientific research fields.
Liquid Food Segment (CLPT)
With increasing market preferences for new beverage types with lower calories or alcohol content, and higher growth rates in Latin America and Southeast Asia, the demand for brewing and distilling equipment is driven. The Group will continue to monitor and capitalise on upgrading and transformation opportunities for carbon-neutral factories and industrial parks in the global and domestic beer, solid fermentation, distilled spirits, and biopharmaceutical sectors, while horizontally expanding into other advantageous industries.
Looking ahead, Chairman Mr. Gao Xiang summarised, “The Group’s strategic development direction is extending from ‘equipment + engineering’ towards ‘comprehensive service provider,’ aiming to establish a digitally and intelligently integrated industrial ecosystem based on ‘key equipment + core processes + comprehensive services,’ and transform into a comprehensive service provider of technology-driven, low-carbon, intelligent new energy solutions. The Group will actively focus on emerging industries, make long-term R&D investments, continuously innovate, and develop new application products to meet the needs of emerging industry clients and seize new market opportunities.”
