Sinopec Engineering (Group) Co., Ltd. 2025 New Contracts and Backlog Announcement
Sinopec Engineering (Group) Co., Ltd. Announces Record Backlog and Stable New Contract Growth for 2025
Sinopec Engineering (Group) Co., Ltd. (“the Company”), a leading engineering and construction firm listed on the Hong Kong Stock Exchange (stock code: 2386), has voluntarily announced significant updates regarding its contract wins and project backlog for the year ended 31 December 2025.
Key Highlights
- Total New Contract Value for 2025: RMB 101.248 billion, marking a slight increase of 0.6% compared to RMB 100.613 billion in 2024.
- Backlog as at 31 December 2025: RMB 203.850 billion, a substantial rise of 18.1% from RMB 172.676 billion at the end of 2024.
- Representative New Contracts in Q4 2025:
- An EPC contract with SHCCIG Yulin Chemical Co., Ltd. for MTO and FDPE units in a major coal conversion project, valued at approximately RMB 2.772 billion.
- An EPCC contract with Sonatrach for the Oran Arzew Refinery Reforming Project in Algeria, valued at approximately USD 433 million.
- Segment Breakdown:
- EPC Contracting remains the dominant segment, accounting for 72.6% of new contracts and 76.7% of total backlog.
- Petrochemical industry contracts represent nearly half of both new contracts (49.9%) and backlog (44.1%).
- Overseas contracts continue to grow, making up 37.5% of new contracts and 41.1% of backlog.
Detailed Financial and Business Breakdown
The Company’s performance in 2025 reflects robust demand across both domestic and international markets. The detailed breakdown is as follows:
| Segment/Industry/Region/Client |
New Contract Value (RMB ‘000) |
% of Total |
Backlog (RMB ‘000) |
% of Total |
| Engineering, Consulting & Licensing |
4,288,565 |
4.2% |
12,844,549 |
6.3% |
| EPC Contracting |
73,453,222 |
72.6% |
156,349,780 |
76.7% |
| Construction |
23,210,662 |
22.9% |
32,280,798 |
15.8% |
| Equipment Manufacturing |
295,401 |
0.3% |
2,375,223 |
1.2% |
| Oil Refining |
26,116,194 |
25.8% |
44,602,201 |
21.9% |
| Petrochemical |
50,496,985 |
49.9% |
89,806,205 |
44.1% |
| New Coal Chemicals |
8,222,066 |
8.1% |
17,111,416 |
8.4% |
| Storage & Transportation and Others |
16,412,605 |
16.2% |
52,330,529 |
25.7% |
| PRC |
63,247,836 |
62.5% |
120,052,898 |
58.9% |
| Overseas |
38,000,014 |
37.5% |
83,797,452 |
41.1% |
| Sinopec Group & Associates |
55,432,919 |
54.7% |
97,236,545 |
47.7% |
| Non-Sinopec Group & Associates |
45,814,931 |
45.3% |
106,613,805 |
52.3% |
Price-Sensitive and Shareholder-Important Information
- Substantial Backlog Growth: The 18.1% increase in backlog is a strong indicator of future revenue, suggesting sustained demand and business stability. This could positively impact share value.
- International Expansion: Overseas contracts now account for over 41% of backlog, underlining the Company’s success in global markets and reducing reliance on domestic projects.
- Major Project Wins: The high-value contracts secured in both China (SHCCIG Yulin Chemical) and Algeria (Sonatrach) demonstrate the Company’s competitive edge in securing large-scale projects.
- Diversification of Client Base: Non-Sinopec clients now represent over half of the backlog (52.3%), a shift indicating growing independence and expanded market reach.
- Caution on Backlog Realization: The Company notes that backlog is not a GAAP measure and that contract modifications, terminations, or extensions may affect the timing or realization of revenues.
- No Forecasts Provided: The Board emphasizes that the contract values and backlog figures should not be taken as profit forecasts or predictions.
Corporate Governance and Responsibility
The Board of Sinopec Engineering (Group) Co., Ltd. collectively and individually accepts responsibility for the accuracy of this announcement. Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.
The announcement is available on the websites of Hong Kong Exchanges and the Company.
Conclusion
The Company’s performance in 2025, highlighted by record backlog and stable contract growth, signals robust business prospects. The expansion of international projects and diversification of client base are positive signs for investors. However, shareholders should remain mindful of risks related to contract fulfillment and the absence of profit guidance.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All figures are based on Company disclosures and are subject to change. Investors are urged to conduct their own due diligence and consult financial advisors prior to making investment decisions.
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