Wison Engineering Announces Substantial Y-o-Y Growth in Revenue and Profit Attributable to Owners of the Parent in 1H of 2014

Shanghai, 28 August 2014 – Wison Engineering Services Co. Ltd. (“Wison Engineering” or the “Company”, SEHK stock code: 2236, together with its subsidiaries, the “Group”), one of the leading chemical engineering, procurement and construction management (“EPC”) service providers in China, today announced its interim results for the six months ended June 30, 2014 (“the Period under Review” or “the first half of 2014”).
 

During the Period under Review, the Group’s revenue increased by 38.5% year-on-year to approximately RMB2,761.4 million. Profit attributable to the owners of the parent increased by 20% year-on-year to approximately RMB26.5 million, reversing the after tax loss recorded for the financial year ended December 31, 2013.
 

Driven by the smooth progress of its major projects, the Group further implemented its business diversification strategy and recorded satisfactory growth in the coal-to-chemicals segment with revenue of approximately RMB1,512.9 million, an increase of 86.4%. Revenue from the petrochemicals business segment rose by a significant 87.2% to RMB1,235.5 million, accounting for approximately 44.7% of total revenue.
 

Mr. Liu Haijun , Senior Vice President of Wison Engineering, said, “Despite the challenges in the first half of 2014, Wison Engineering adhered to its core objective of “consolidating a foundation for growth and improving earning capacity” set at the beginning of the year to promote the expansion in the overseas markets and to reinforce its project management and operational management. The Group attained smooth progress in its domestic and international projects, including the kick-off of the on-site construction of site preparation for the Puerto La Cruz Refinery Deep Conversion Project in Venezuela and the successful delivery of its first digital engineering and design workt. Backed by the predicted growth of the global economy, strong demand for energy as well as the rapid development of related energy services sectors, the Group will leverage its outstanding capability and proven track record in project management as well as its elite teams to enter a new round of development as we’re confident in.
 

The Group’s outstanding earnings growth was attributable to a number of management initiatives implemented by its professional management team. For project management, the Group improved its refined management and established certain cross-departmental management teams to enhance the profitability of its projects. The Group fortified its performance management to further motivate and consolidate its team, enhancing the overall execution capabilities and working efficiency of each business and operation department. The overseas project execution and management capabilities of the Group were proven and enhanced in practice. The two EPC projects completed in Saudi Arabia were awarded the "Golden Key Award" issued by the project owner and the “2013 Advancement Award for Project Management of Chinese Companies in Saudi Arabia” issued by the Consulate General of the Peoples' Republic of China in Jeddah, Saudi Arabia and the Association of Chinese Companies in Jeddah, Saudi Arabia, respectively.

During the Period under Review, the Group strived to explore innovative technologies and to actively promote commercialization to secure its leading position in the industry. As at June 30, 2014, the Group filed new applications for five invention patents and was granted six licenses for invention patents along with another two applications for software copyrights. Significant progress was achieved in other major research and development projects. A cooperation project with Foster Wheeler and Clariant involving the construction of a natural gas (SNG) pilot plant was completed and got through all the testing process during the Period under Review. In addition, the Group’s proprietary technology in butene oxidization and the dehydrogenation to butadiene has entered the commercialization phase.
 

Looking forward to the second half of this year, the growing global demand for energy and downstream products will open up a vast space for the Group’s development. The Group will continue to adhere to its established development strategies: to further diversify its client base, service models for project management and competitive and cooperative strategies by leveraging its technological advantages; to make key breakthroughs by concentrating on its superior resources so as to accelerate overseas expansion; and to further strengthen scientific operation management so as to make continuous improvements in its project management and engineering capabilities and step up its internationalization process. Furthermore, the Group will stick to its long-term strategy in technological research and development to lay a solid foundation for its sustainable development in the future.