China Chemical has just disclosed its 2023 annual report, and the main performance indicators are as follows:
- The newly signed contract value was 326.75 billion yuan, a year-on-year increase of 10.1%;
- the total operating income was 179.2 billion yuan, a year-on-year increase of 13.1%;
- the total profit was 6.905 billion yuan, a year-on-year increase of 3%;
- net profit was 5.97 billion yuan, up 3.4% year-on-year, net profit attributable to the parent company was 5.43 billion yuan, up 0.2% year-on-year, and non-net profit was 5.2 billion yuan, up 3.9% year-on-year.
- Return on equity 10%;
- net operating cash flow was 9.134 billion yuan, an increase of 1.5 billion yuan or 509% year-on-year;
- The total number of employees was 48,833, a year-on-year increase of 4.5%.
First, the revenue
In the past five years, the total operating income of China Chemical has shown a continuous growth trend, with an average annual compound growth rate of 14.5%. Except for 2020, when the growth rate was the lowest of 5.6%, the other years showed double-digit growth, with the highest growth rate of 28% in 2019 and a relatively high growth rate of 25% in 2021. In 2023, total operating revenue increased by 13% year-on-year to 179.2 billion yuan.
Second, the net profit
In the past five years, China Chemical's net profit has increased at a compound average rate of 16.1%, from 3.29 billion yuan in 2019 to 5.97 billion yuan in 2023. In terms of year-on-year growth, net profit growth in 2019 was the highest, close to 60%, 30% in 2021, more than 15% in 2020 and 2022, and the lowest growth rate in 2023 was 3.4%.
The growth rate of net profit is generally higher than the growth rate of total operating income, and the level of net profit margin has improved, from 3.17% in 2019 to 3.35% in 2023.
3. Operating cash flow
In the past five years, the net cash flow generated by China Chemical's operating activities has fluctuated significantly, but it has always been positive. 2022 is the year with the lowest net operating cash flow, which is 1.5 billion yuan, a year-on-year decrease of 33%, and in 2023, a year-on-year increase of 509% to 9.13 billion yuan, which is the year with the highest net operating cash flow in the past five years.
Fourth, the business situation
ChemChina's main business is chemical engineering, which accounts for 80% of the main business revenue and the gross profit margin reaches nearly 10%, while infrastructure is the second largest main business, accounting for 12.4% and the gross profit margin is 7%. The environmental management business accounted for 1.6%, but the gross profit margin was the highest at 11.35%.
Fifth, the regional layout
In 2023, China Chemical's main business income in China will reach 142.38 billion yuan, a year-on-year increase of 15.5%, an increase of 1.6 percentage points over the same period of last year.
The main business income overseas was 35.53 billion yuan, a year-on-year increase of 4.7%, and the main reason for the revenue growth was that the company carefully planned and organized the construction, and the revenue growth brought by the smooth progress of overseas projects.
What is the performance of the engineering company in the design contracting sector of China ChemChina?
In this paper, the author makes a comparative analysis of the major holding companies disclosed in the annual report of China National Chemical Corporation, which mainly focus on design contracting as its main product or service.
1. Total assets
The total assets of Tianchen Company are far ahead, and the growth rate of the Third Institute of Chemical Industry is the fastest
In terms of total asset scale, among the seven companies with design contracting as their main product or service, Tianchen Company is the largest, about twice that of the second and third institutes. The Third Institute of Chemical Industry and Chengda Company have nearly 15 billion yuan, and the total assets of Wuhuan Company and Hualu Company are nearly 10 billion yuan. The minimum total asset size of China Chemical Equipment Co., Ltd. is less than 3 billion, and it was established in 2022.
In terms of the growth rate of total assets, in 2023, except for Hualu Company, the total assets will decrease by about 8% year-on-year, and the remaining five companies will all show double-digit growth. Among them, the total assets of the Third Institute of Chemical Industry had the highest year-on-year growth rate of 20.6%, followed by Tianchen Company with 15.8%, and Chengda Company with 13.4%. Wuhuan Company and Saiding Company both increased by about 11% year-on-year.
2. Net assets
Tianchen Company has the largest net asset scale, and Hualu Company has the highest net asset growth rate
In terms of net assets, Tianchen has the largest net assets of 7.13 billion yuan, which is about 1.5 times that of the second third hospital. The third place Chengda company has a net asset of 3.8 billion yuan. The net assets of Wuhuan Company and Saiding Company are less than 3 billion yuan, and the minimum of China Chemical Equipment Company is 1.2 billion yuan.
In terms of net asset growth, the net assets of the six engineering companies with data all increased year-on-year. Hualu Company had the highest growth rate of 14.6 percent, the Third Institute of Chemical Technology had a growth rate of 11.3 percent, the other four companies had a single-digit growth rate, and Tianchen Company had the smallest year-on-year growth rate of 3.7 percent.
3. Net profit
Tianchen Company has the highest net profit, and Saiding Company has the highest net profit growth rate
In terms of net profit scale, Tianchen Company had the highest net profit of 666 million yuan. The net profit of Wuhuan Company, Hualu Company, Chengda Company and the Third Institute of Chemical Industry is about 400 million yuan. Saiding Company is 350 million yuan. The minimum net profit of China Chemical Equipment Company is 50 million yuan.
In terms of net profit growth, the six engineering companies with data have a large difference in the year-on-year growth rate of net profit. Saiding Company, Wuhuan Company, Third Institute of Chemical Technology, and Hualu Company all showed double-digit growth, with Saiding Company having the highest growth rate of 31.7%, and the growth rate of the latter three was also above 20%. The net profit of Tianchen Company and Chengda Company decreased by 10.5% and 20.3% respectively year-on-year.
Fourth, the return on net assets
The return on equity of the four companies was in the double digits, and Hualu had the highest return on equity at 25.6%. Wuhuan Company is second, with a return on equity of 15%. Saiding Company and Chengda Company are above 10% of the index. The index of Tianchen Company and the Third Institute of Chemical Industry is close to 10%. China Chemical Equipment Company was the lowest, at 4.2%.
Source: Engineering Industry Insights