Sinopec Engineering (Group) Co., Ltd. Reports Robust Q1 2026 Contract Wins and Backlog

Date of Announcement: 24 April 2026

Key Highlights for Investors

• Impressive Growth in New Contract Value: Sinopec Engineering (Group) Co., Ltd. (“SE Group”, stock code: 2386) reported that the total value of new contracts signed in Q1 2026 reached RMB 27.553 billion.
• Significant Backlog: As of 31 March 2026, the Group’s backlog stood at an outstanding RMB 213.496 billion, indicating strong revenue visibility and operational momentum.

Details of Representative New Contracts

The company secured several large and strategically significant contracts during the period, including:

1. Xinjiang Shanneng Zhundong Wucaiwan Coal-to-Olefins Project: An EPC contract with Xinjiang Shanneng Chemical Co., Ltd. for the MTO unit, valued at approximately RMB 2.447 billion.
2. Inner Mongolia New Jinshan Carbon Fiber Project: An EPC contract for a 30,000 tons/year large-tow carbon fiber facility for Sinopec Shanghai Petrochemical Company Limited, valued at about RMB 1.993 billion.
3. Kazakhstan Butadiene and Rubber Project: An EPC contract with Kazakhstan Butadiene LLP Company, worth approximately USD 1.093 billion, marking a major overseas win.
4. Kazakhstan Sulfuric Acid Plant Project: A basic design contract with Kazphosphate LLP, valued at about USD 9.28 million.

Business Segment and Geographic Breakdown

• Business Segments:
  • EPC Contracting: RMB 19.29 billion in new contracts (70% of total Q1 contracts), with a backlog of RMB 164.96 billion (77.3% of total).
  • Construction: RMB 5.55 billion in new contracts (20.1%), backlog of RMB 31.57 billion (14.8%).
  • Engineering, Consulting, and Licensing: RMB 2.61 billion in new contracts (9.5%), backlog of RMB 14.58 billion (6.8%).
  • Equipment Manufacturing: RMB 0.1 billion in new contracts (0.4%), backlog of RMB 2.38 billion (1.1%).
• Industry Breakdown:
  • Petrochemical: 73.1% of new contracts (RMB 20.13 billion), 46.5% of backlog (RMB 99.34 billion).
  • New Coal Chemicals: 20.3% of new contracts, 10.1% of backlog.
  • Oil Refining: Only 1.7% of new contracts, but 19.8% of backlog, showing ongoing project deliveries.
  • Storage & Transportation and Others: 4.9% of new contracts, 23.6% of backlog.
• Geographic Distribution:
  • PRC (China): 57.9% of new contracts; 58.0% of backlog.
  • Overseas: 42.1% of new contracts; 42.0% of backlog – indicating a strong international presence and order win momentum.
• Client Breakdown:
  • Sinopec Group and its Associates: 40% of new contracts (RMB 11.02 billion), 47.1% of backlog (RMB 100.51 billion).
  • Non-Sinopec Group Clients: 60% of new contracts (RMB 16.53 billion), 52.9% of backlog (RMB 112.99 billion).

Important Notes for Shareholders

• Disclosure is Voluntary: The Board voluntarily disclosed this information to enhance transparency and keep shareholders and potential investors informed.
• Potential Price Sensitivity: The substantial value of new contracts and high backlog, particularly in overseas and non-Sinopec Group orders, may positively influence market sentiment and share valuation, as it signals robust demand for the company’s services and likely revenue growth.
• Risk Factors: The company explicitly cautions that backlog figures are subject to change due to contract modifications, terminations, or delays, which could impact the realization of these revenues.
• No Profit Forecast: The company emphasizes that the disclosed contract values and backlog figures do not constitute a profit forecast or prediction. Investors should interpret the data as operational indicators rather than guaranteed financial outcomes.

Board Statement

The Board, comprising executive, non-executive, and independent non-executive directors, collectively and individually accepts responsibility for the accuracy of this disclosure. Shareholders and investors are strongly advised to exercise caution when dealing in the company’s shares.

Conclusion

Investor Takeaway: The strong contract wins, growing international exposure, and robust backlog position Sinopec Engineering for continued growth in 2026. While the figures are not a direct profit forecast, they suggest solid operational momentum and diversified client and geographic exposure, which are positive signals for medium to long-term investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their own financial advisors and consider their own risk tolerance before taking any investment action. The company has cautioned that the backlog and contract values are subject to potential changes due to various factors. Past performance and contract wins are not necessarily indicative of future results.

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