Star Metro - SEG Announces 2026 Interim Results

HONG KONG, HK / ACCESS Newswire / August 17, 2026 / SINOPEC Engineering (Group) Co., Ltd. ("SEG" or the "Company", together with its subsidiaries collectively known as the "Group") (stock code:2386) today announces its interim results for the six months ended 30 June 2026 (the "Reporting Period").

2026 marks the inaugural year of the 15th Five-Year Plan, and also the first year for Sinopec to fully embark on our new mission of "Entrepreneurship 2.0". In the first half of the year, the Group closely adhered to the guiding principle of high‑quality development, aligned our operations with annual production and operation targets, and further pushed forward six key campaigns covering safety & environmental protection, marketing, quality and efficiency improvement, integration of R&D innovation with industry and finance, international expansion, and reform‑driven empowerment. Benefiting from the above efforts, our business operations remained stable and we made steady progress in operating performance with all phased operational targets were fully achieved. During the Reporting Period, the Group recorded operating revenue of RMB 35.62 billion, representing a year-on-year increase of 12.7%; gross profit reached RMB 2.74 billion, representing a year-on-year increase of 5.2%; net profit amounted to RMB 1.14 billion, and the value of new contracts signed was approximately RMB 51.9 billion. The Group's overall business fundamentals remained sound.

SEG's board of directors (the "Board") consistently upholds the investor‑centered philosophy and is committed to sharing the fruits of our high‑quality development with all shareholders and building a stable and predictable shareholder return mechanism. The Board has resolved to declare an interim dividend of RMB 0.127 per share for 2026, which represents a payout ratio of 50% and is consistent with the Company's long-standing and stable base dividend policy. In order to continuously drive steady improvement in shareholder returns, the Board has also resolved to launch a new round of share repurchases within the next six months, with a total repurchase amount of not less than HKD 100 million and not more than HKD 150 million. All repurchased shares shall be canceled.

Mr. Zhang Xinming, Executive Director and President of SEG, stated that in the inaugural year of the 15th Five-Year Plan, the Group will prioritise four key targets in the second half of the year: high-standard market development, improvement in project delivery, profitability and efficiency, deeper integration of R&D and innovation with business and finance, and reinforcement of risk management, so as to fully advance the high-quality delivery of the annual targets. The Board and senior management will lead all management and employees to concentrate on core businesses, deepen reform and innovation, and steadily advance toward the corporate vision of becoming a world‑leading technology-driven engineering company. The Group will pursue sustainable and sound development to reward shareholders, customers and society with better operating results for their trust and support.

Business Review and Highlights

Market Development

During the Reporting Period, the value of new contracts signed by the Group amounted to RMB51.911 billion. Among which, the value of newly signed domestic contracts amounted to approximately RMB31.160 billion; and the value of newly signed overseas

contracts amounted to approximately US$3.052 billion.

PRC Domestic Market

During the Reporting Period, representative newly signed domestic contracts to the Group included: the BEPC contract for the 1.6 million tons/year imported solid asphalt full-green-energy high-efficiency upgrading industrialisation demonstration project of Zhongke Yaxin Guanghe (Xinjiang) Energy Co., Ltd. (the "Zhongke Yaxin Synthetic Crude Oil Demonstration Project"), with a total contract value of approximately RMB4.309 billion; the EPC contract for the methanol-to-olefin unit of the 800,000 tons/ year coal-to-olefin project at Zhundong Wucaiwan, Xinjiang Shanneng (the "Xinjiang Shanneng Coal-to-Olefin Project"), with a total contract value of approximately RMB2.447 billion; the EPC contract for the 30,000 tons/year large-tow carbon fibre remote construction project of Sinopec Shanghai Petrochemical Co., Ltd. (the "Shanghai Petrochemical") (the "Shanghai Petrochemical Large-Tow Carbon Fibre Project"), with a total contract value of approximately RMB1.993 billion; the EPC contract for the acetic acid unit and methanol unit upgrade of the Zhongtian Hechuang green low-carbon upgrade and retrofit project (the "Zhongtian Hechuang Upgrade Project"), with a total contract value of approximately RMB1.572 billion; and the EPC contract for the phase I coal clean and efficient utilisation technical retrofit project of the 2x600,000 tonnes/year natural gas-to-ethylene glycol project of Xinjiang Zhongkun New Materials Co., Ltd. (the "Xinjiang Zhongkun New Materials Project"), with a total contract value of approximately RMB960 million.

In the front-end engineering field, the Group's newly signed contracts amounted to approximately RMB1.962 billion, with representative contracts including: the phase I coal-to-oil engineering design for the CHN Energy Hami Energy Integration and Innovation Base Project (the "CHN Energy Hami Coal-to-Oil Project"), the overall design for the CHN Energy Ordos Coal Liquefaction Upgrade Demonstration Project (the "CHN Energy Ordos Coal-to-Oil Project"), part of the engineering design for the CHN Energy Shenhua Yulin Circular Economy Coal Comprehensive Utilisation Project (the "Shenhua Yulin Coal-to-Oil Project"), the basic design for the Shanghai Petrochemical comprehensive technical retrofit and quality upgrade project (the "Shanghai Petrochemical Ethylene Project"), the engineering design for the 1 million tons/year ethylene unit of the Zhoushan Rongsheng New Materials Project (the "Rongsheng Jintang New Materials Project"), and the overall design for the Tahe Refining & Chemical Company refining and chemical integration project (the "Tahe Refining Integration Project"), etc.

The Group entered into 203 new contracts in emerging business sectors, with a new contract value of approximately RMB5 billion. Among which, 25 contracts were in the clean energy and new energy fields, with a new contract value of approximately RMB100 million; and 178 contracts were in new materials, new technologies, energy conservation and environmental protection, with new contract value of approximately RMB4.9 billion. Representative newly signed contracts included the EPC for the Ningxia Energy & Chemical CO2 chemical-chain mineralisation utilisation demonstration project, the EPC for the Hubei Yihua phosphorus-fluorine resource high-value utilisation project, the preliminary design for the Xindao Hydrogen Energy green methanol integration project, and the engineering design for the Zhongyuan Oilfield water electrolysis hydrogen production demonstration project.

Overseas Market

During the Reporting Period, representative newly signed overseas contracts to the Group included: the Kazakhstan butadiene and rubber project (the "Kazakhstan Butadiene Project"), with a technology transfer and process package design contract value of US$24 million and an EPC contract value of US$1.093 billion; the construction contract for the ADNOC Habshan project in the UAE, with a contract value of US$750 million; and the EPC contract for the Saudi Aramco Ras Tanura refinery emergency repair project, with a contract value of US$45 million. In addition, the Group signed with Saudi Aramco a long-term cooperation agreement for old plant upgrade and retrofit (EPC LTA), with a term of 60 months, covering EPC contracting services for the inspection, maintenance and retrofit of Saudi Aramco's old plants within Saudi Arabia; and a long-term management consultancy service agreement (PMC LTA) with a term of 60 months, covering engineering consultancy services for Saudi Aramco's future investment projects.

In the front-end engineering field, 16 new contracts were signed, with an aggregate contract value of approximately US$145 million. The business portfolio expanded into new areas such as green hydrogen, green ammonia, SAF and inorganic salts, and into new country markets including Uzbekistan, Australia, Korea and Singapore, with representative contracts including the detailed design and overall design for the second phase of Brunei Hengyi, the front-end engineering design and detailed design for the Uzbekistan sustainable aviation fuel (SAF) biorefinery project (the "Uzbekistan SAF Project"), the basic design for the Kazakhstan sulfuric acid and phosphate fertiliser complex project (the "Kazakhstan Sulfuric Acid and Phosphate Fertiliser Project"), and the FEED for the Petronas Sabah fertiliser plant synthetic ammonia and urea upgrade project in Malaysia (the "Malaysia Ammonia Project"), etc.

Status of Major Projects under Execution

• Malaysia Ammonia Project (FEED): the project's overall design progress approached 20%

Technological Innovation

During the Reporting Period, the Group continued to expand the open collaboration in technological innovation. We successfully hosted the 6th Fluid Catalytic Cracking Technology Exchange Conference, the Sulfuric Acid and Phosphate Fertiliser Design Industry Technology Exchange Conference, and the Sinopec Environmental Protection Technology Exchange and Achievement Transformation Seminar, and other industry conferences. We deepened industry-university-research collaborative R&D with multiple research institutes and universities in fields such as high-end carbon materials, biomass gasification, carbon dioxide resource utilisation, hydrogen storage materials and solid waste resource utilisation.

During the Reporting Period, the Group's major scientific and technological achievements included: (1) the "100,000 tonnes/year POE unit" of Sinopec Tianjin achieved mechanical completion, and the "100,000 tonnes/year POE unit" of Zhenhai Refining & Chemical completed detailed design, with the industrialisation of high-end polyolefin materials progressing steadily; (2) the first "million-tonne-scale ethylene technology" licensed to CNPC was calibrated at Jilin Petrochemical, with all indicators better than the design values; (3) the Cangzhou 20,000 tonnes/year organic liquid hydrogen storage project passed acceptance; (4) the world's first "50,000-tonne-scale carbon dioxide-based poly(propylene carbonate) (PPC) industrialisation unit", developed through cooperation, successfully produced qualified products, achieving industrialisation of high-value utilisation of carbon dioxide; (5) the "biomass gasification flexible platform construction project" of Hunan Petrochemical achieved mechanical completion, establishing a core technology verification platform for the scaled utilisation of biomass energy; (6) the "basic physical property database for the petrochemical industry" was officially launched, providing query and calculation services for core data resources such as large-scale, high-quality basic physical properties and phase equilibrium experiments; and (7) special work was carried out on the integrated upgrading and promotion of "membrane deaeration" technology.

During the Reporting Period, the Group received a total of 35 provincial and ministerial or above level science and technology progress awards (times), of which the project "New Technology for Liquid-Holding Particle Fluidised Bed Ethylene Polymerisation Reaction" received the second prize of the National Science and Technology Progress Award.

During the Reporting Period, the Group signed 187 new technology development contracts of various types with a total contract value of RMB320 million, and 70 new technology licensing and technology transformation contracts with a total contract value of RMB256 million.

During the Reporting Period, the Group filed 398 new patent applications, of which 309 were invention patents; and 185 newly licensed patents, of which 128 were invention patents. As at the end of the Reporting Period, the Group had 4,774 valid patents, of which 2,673 were invention patents.

Application of Advanced Automation Technology

During the Reporting Period, the Group's application rate of automatic welding for process piping continued to increase, and railless crawling welding robots and nine-axis/six-axis pipeline welding robots were widely deployed, among which the first-pass success rate of welding robots at the Maoming Project reached 99.9%. Functional verification of a prototype of confined-space operation robots with multi-source sensor fusion was carried out, and inspection path planning and intelligent recognition algorithm development for safety intelligent inspection robots in multiple scenarios were completed. Pilot initiatives included full-process robotic operations of anti-corrosion inside tanks, intelligent inspection robot dogs, and safety monitoring systems. New energy construction machinery, such as electric forklifts and aerial work platforms, was also promoted. The promotion of Beidou smart construction site development, driving the transformation of project management towards visualised and quantifiable intelligent models.

During the Reporting Period, the Jiujiang Aromatics Project undertaken by the Group, relying on design documents and 3D models and using secondary design software and advanced equipment, built an automated, flow-line and information-based piping prefabrication factory, achieving an upgrade from traditional sporadic prefabrication to a process flow-line factory model, with the piping prefabrication ratio approaching 70%. The project fully implemented integrated modular construction, completing the multi-disciplinary integrated installation of 69 structural modules together with equipment, piping, electrical and instrumentation (with a maximum weight of 572 tonnes per single module), significantly improving construction efficiency and intrinsic safety levels.

Artificial Intelligence (AI) Applications

The Group continues to deepen the integration of AI with its core business, deepening integrated management and practices across collaborative design, supply chain, design constructability studies, and project interface. Through the standardisation of business chain processes, interconnection of data chains and AI applications in the tool chain, we optimises the integrated collaborative working mechanism for engineering construction, providing customers with better full-lifecycle integrated collaborative value-added services.

(1) On the design side, professional models have been formed in scenarios such as intelligent review, process safety analysis and structural design, and tangible results have been achieved in plant-wide process optimisation, intelligent drawing and 3D model review. Among them, intelligent design review has been verified and tested in multiple projects; intelligent structural design has been piloted in multiple projects; and the intelligent process safety analysis scenario has completed HAZOP/SIL closed-loop analysis and reporting.

(2) On the management side, an intelligent supply chain management system for the full lifecycle of projects has been built. An integrated platform for operation management, project management and construction management has been developed to promote the building of standardised smart construction sites. On the operation management side, management systems such as QHSE and human resources are running online, with intelligent monitoring and early warning of operating indicators such as project progress and contract assets, and the "intelligent contract review" scenario has been piloted. On the project management side, full-lifecycle application integration has been completed and trial operation has been carried out in multiple projects. On the construction management side, an intelligent subcontract resource management system integrating subcontractor information management, assessment and evaluation, contracting planning and on-site supervision, has been built and piloted.

(3) On the application side, the collaborative application of 3D design software and intelligent construction equipment is deepened, continuous efforts are made to tackle industrial software such as piping, physical property libraries and process simulation, and the in-depth application and capability iteration of 3D design platforms such as civil design and equipment modelling are promoted.

Intelligent Production, Operation and Maintenance

The Group continues to expand the breadth and depth of digital plant delivery. We connect the full-lifecycle digital chain of "design - delivery - operation and maintenance", and accelerates the construction of the "process remote technical support centre" and the "process remote intelligent support service platform". By integrating dynamic operation data with mechanistic models, we achieve remote diagnosis, predictive maintenance and process optimisation, with deepened application in scenarios such as ethylene, coal gasification and anti-corrosion. In pilot projects, we achieve an increase of 1 to 3 percentage points in the yield of key products such as gasoline and propylene, a reduction of approximately 1.6% in coal consumption of plant operation, and a reduction of over 90% in the reporting burden on plant employees, creating high value-added operation assurance for customers.

During the Reporting Period, the value of newly signed contracts for digital delivery and intelligent operation and maintenance exceeded RMB50 million.

QHSE Performance Remained Sound

As at the end of the Reporting Period, the Group had 2,069 on-going projects with approximately 90,000 on-site employees on average per day; the accumulated safety manhours reached 160 million, with no major safety, quality or environmental incident occurring, and the ESG operational resilience continued to strengthen.

During the Reporting Period, the Group carried out a special campaign on material quality, covering key processes such as procurement, supervision and inspection; for the seven core disciplines including civil works, electrical and instrumentation, and piping, it established graded inspection and whole-process traceability mechanisms by work procedure, achieving full coverage of inspection tiers and traceability of quality processes, and continuously progressing towards the goal of "zero defects".

During the Reporting Period, the Group promoted an intelligent identification system for process safety risks, achieving full coverage of supervision and inspection of key projects; it conducted regular special inspections for high-temperature and flood seasons, and improved emergency plans covering 9 major categories including production accidents, public safety and natural disasters. In respect of occupational health, the "Health Management Year" campaign was further deepened, and the physical and mental health of employees was safeguarded through the implementation of personalised health management on a "one plan per person" basis.

During the Reporting Period, the Group completed the compilation of the new-version "Green Enterprise Initiative" evaluation indicators and "Green Construction Site" evaluation guidelines, and conducted assessments of green ecological design application for some commenced units. The relevant assessment outcomes will support subsequent optimisation of design standards and achievement of intrinsic environmental protection.

Business Outlook

In the second half of the year, the Group will focus on four key directions and exert great effort to achieve the full-year targets with high quality, thereby continuously strengthening the operational foundation for Shareholder returns.

Cultivate a Comprehensive Market Layout

The market development targets of the Group for 2026 are newly signed contract amount of RMB55 billion in domestic market and USD5 billion in overseas market. The Group will firmly extend towards the front end of the engineering industrial chain and high-end of value chain, continuously enhancing high-end service capabilities such as consultancy, FEED and detailed design; give full play to the integrated collaboration advantages of the entire industry chain, create higher value for customers with full-lifecycle holistic solutions, and build a market development pattern with a solid traditional core business, sustained emerging drivers, and domestic-overseas coordination.

In the domestic market, the Group will seize opportunities in areas such as coal-to-oil/gas, refining and chemical upgrading, and new materials and vigorously expand into the new energy sector to steadily increase market share.

In overseas markets, the Group will further consolidate its presence in key regions such as the Middle East, Central Asia, and North Africa, actively expand into emerging markets, and firmly seize the opportunities arising from regional development and industrial recovery. The Group will accelerate its expansion into new low-carbon sectors including green hydrogen, green ammonia, and SAF, thereby promoting improvements in both scale and quality of its international business.

The Group will continue to develop its emerging business and push forward in tracks such as chemical new materials, green hydrogen/ammonia/methanol, biomass energy, inorganic chemicals, energy conservation and environmental protection, aiming to build a diversified second growth curve.

Enhance Project Profitability

Deepen full-lifecycle operation and control. Continuously carry out design optimisation and precisely reduce project investment costs. Vigorously promote modular design, factory prefabrication and on-site assembly construction, with the automatic welding application rate further increased by 3 percentage points; promote smart construction sites, welding robots and other intelligent equipment, deepen the scenario implementation of AI in design optimisation and project management, and continuously improve management efficiency and reduce operating costs.

Refined supply chain and settlement management. Intensify the cultivation of strategic subcontractors and tap the synergy benefits of the supply chain. Increase coordination with Chinese suppliers and logistics providers to reduce procurement costs; accelerate the establishment of the overseas project procurement management system and overseas low-cost operation centres. Focus on full-lifecycle cost control and close-out review of key overseas projects, systematically summarise experience and lessons, and continuously improve the operation and management level of international projects.

Strengthen Core Technological Advantages

Focusing on key directions such as low-cost refining, biomass gasification, SAF, recycling and high-value utilisation of waste polymer materials, high-performance polyolefins, energy conservation and emission reduction and green and low-carbon development, and intelligent refineries, the Group will coordinate the optimisation of technology sources and engineering technology R&D. It will intensify the market promotion and brand building of its competitive technologies, create markets through technology, and continuously enhance the Company's core influence and voice in the industry.

The Group will enhance systematic engineering transformation capabilities, deepen open industrial cooperation, strengthen the integrated synergy among research and development, design, manufacturing and construction, and expedite the industrialisation

and commercial application of innovative achievements.

The Group will continue to promote the in-depth integration of digital and intelligent technologies with the core business. Taking intelligent design and intelligent manufacturing as the starting point, vigorously promote the integrated application of artificial intelligence across the entire industry chain, accelerate breakthroughs in key technologies for the localisation of engineering software, improve the intelligent technology platform system, and facilitate the efficiency upgrade of the entire engineering chain collaboration.

Strengthen Risk Prevention and Control

Build a full-lifecycle "comprehensive risk control" system. Strengthen advance risk management to the project's earlier stage, and strictly implement project initiation review and decision-making procedures. Continuously strengthen overseas public security, compliance, and fiscal and tax risk management; establish dynamic early warning and emergency plan mechanisms for macro risks such as geopolitics.

The Group will enhance the monitoring of financial and operational risks, and strictly control various risks including capital, foreign exchange, and taxation. The Group will also implement whole-process and all-factor cost control, expedite the settlement of completed projects and the repatriation of overseas funds, thereby safeguarding the sound and stable operations of the Company.

Summary of Financial Data and Indicators Prepared in Accordance with International Financial Reporting Standards ("IFRS")

Unit: RMB'000

Unit: RMB'000

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This press release is issued by PRChina Limited on behalf of SINOPEC Engineering (Group) Co., Ltd.

About SINOPEC Engineering (Group) Co., Ltd.

The Group is a comprehensive service provider covering the entire energy and chemical industry value chain and full project lifecycles. With over 70 years of history, it operates across multiple industrial sectors, including petroleum refining, petrochemical, aromatics, new coal chemical, inorganic chemical, pharmaceutical chemical, clean energy, storage and transportation facility, as well as environmental protection and energy conservation. The Group is committed to providing global clients with full industry chain services, including engineering R&D, technical consulting, technology licensing, engineering consulting, engineering design, project management, financing and EPC (engineering, procurement and construction) contracting. Its services also cover material procurement, equipment manufacturing, construction and installation, large-scale equipment lifting and transportation, pre-commissioning and commission services as well as operation and maintenance. The Group has delivered, on schedule, hundreds of modern chemical plants featuring large investment scales, complex processes, advanced technologies and high-quality standards for clients in more than 30 countries and regions. Over the years, it has built extensive and stable client relationships and earned significant industrial influence and social recognition.

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that the Group expects or anticipates will or may occur in the future (including but not limited to projections, targets, other estimates and business plans) are forward-looking statements. The Group's actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond the Group's control. In addition, the Group makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

Investor and Media Enquiries:

SINOPEC Engineering (Group) Co., Ltd.
Office of the Board
Tel: (86) 10 5673 0525
Email: [email protected]

PRChina Limited
Jin LIU / Liky GUO
Tel: (852) 2522 1838 / (852) 2522 1368
Fax: (852) 2521 9955
Email: [email protected]

SOURCE: SINOPEC Engineering (Group) Co., Ltd.

View the original press release on ACCESS Newswire

Y.X. Gagnon--SMC