On April 1, 2022, China Camc Engineering Co.Ltd(002051) ( China Camc Engineering Co.Ltd(002051) . SZ) released the annual report for 2021. The annual operating revenue was 8.64 billion yuan, an increase of 8.46% year-on-year; The net profit attributable to the parent company was 282 million yuan, a year-on-year increase of 436.93%; Net profit deducted from non parent company was 116 million yuan, with a year-on-year increase of 210.09%.
In recent years, facing the uncertainty of overseas epidemic and international political factors, the company resolutely decided to start strategic transformation. In the second half of 2021, China Camc Engineering Co.Ltd(002051) held the “14th five year plan” Strategy Conference and announced that it would make all-round and revolutionary changes from inside to outside based on the concept of “secondary entrepreneurship”. Chairman Wang Bo said at the meeting that in the future, the company will cover the whole value chain integrated solution from design to EPC, and then to “investment, construction and operation”, from relying solely on the international market to realizing the balanced development of China’s international market, and finally form a whole value chain operation mode with first-class design consultation as the traction, advanced engineering technology as the support and EPC as the carrier.
With the end of the opening year of the 14th five year plan, China Camc Engineering Co.Ltd(002051) also handed over a satisfactory answer to the market. While the company has achieved a double harvest of performance and transformation and development, the achievements of scientific research and innovation have also been widely implemented.
net profit increased by 436.93% year on year, and the newly signed contract amount reached a new high
According to the business briefing, in 2021, the company’s international engineering business accumulated a new contract amount of US $2.038 billion, a new high in recent years; The newly signed contracts between consulting design and China engineering business amounted to 3.817 billion yuan in the whole year; The newly signed contract amount of equipment manufacturing business in the whole year was 1.615 billion yuan. By the end of 2021, the balance of contracts in hand of the company’s international engineering business was US $9.390 billion, the total contract amount of unfinished projects signed between consulting and design and China engineering business was RMB 11.032 billion, and the cumulative contract amount of unfinished projects signed in equipment manufacturing business was RMB 3.524 billion. Based on the current exchange rate of about US $6.33, the total contract balance of the company’s international engineering business at the end of 2021 is up to 59.439 billion yuan, about 6.88 times of the annual operating revenue. Abundant settlement resources will be the “ballast” for long-term performance growth.
Some analysts pointed out that the central economic work conference set the economic work in 2022 as “stable”, and also mentioned that investment in infrastructure can be moderately advanced. The Ministry of Finance issued a new special debt limit of 1.46 trillion yuan in 2022 in advance, focusing on transportation infrastructure and other directions, which will effectively ensure the annual infrastructure investment. Under the policy background of “steady growth”, China’s infrastructure market is expected to start a new round of growth.
It is also worth mentioning that the company recently signed another large order overseas to achieve a good start in 2022. According to the announcement, the consortium led by China Camc Engineering Co.Ltd(002051) and formed by CNOOC signed a business contract with Kuwait energy for the central crude oil processing facility project in zone 9 of Iraq. The project plans to build a central crude oil processing facility with a daily output of 100000 barrels. The contract amount is US $594 million, about RMB 3.768 billion, accounting for 43.61% of the company’s total operating revenue in 2021. It is reported that one belt, one road, will be effective. The successful signing of the project is a major breakthrough in China Camc Engineering Co.Ltd(002051) ‘s oil and gas field in Iraq. The contract will have a positive impact on the company’s performance in the current and future years, and it will also help consolidate and deepen the company’s professional advantages in the petrochemical sector and expand its market share in the “one belt and one road” country.
high quality transformation started and three business segments were formed
In terms of operation, the three business segments planned in the 14th five year plan of the company have taken shape. The international project contracting one belt, one road, the company has made great achievements: in June last year, the new Kazakhstan Suk natural gas comprehensive development project contract was about 1 billion 200 million dollars, which made a major breakthrough in the local market. Win the construction project of beneficiation plant of njmc gold mine in Guinea; Bangladesh deswsp water transmission pipeline project is signed in the same year and takes effect in the same year. The smooth performance of livelihood projects such as agricultural irrigation in Yanhe River, Sri Lanka, and the handover of major construction assistance projects such as the aid project of Chone hospital in Ecuador, the aid project of mahoso general hospital in Laos (phase I), and the aid project of Cambodia National Stadium as scheduled.
According to the ranking list of overseas large-scale complete equipment engineering projects signed by Chinese enterprises in 2021 released by China Chamber of Commerce for import and export of mechanical and electrical products, the company ranks 14th in terms of contract amount. At the same time, it ranked second in the ranking of enterprises with overseas project contracting amount in petrochemical equipment industry in 2021 and seventh in the ranking of enterprises with overseas project contracting amount in water treatment industry.
In the Chinese market, the company’s design consulting business has continued to make great efforts to continue the good development momentum in the field of medical care and health. At the same time, it also actively responded to the “double carbon” goal, developed smart energy, clean energy and solid waste treatment business, and undertook the upgrading and reconstruction project of Datun waste transfer station, waste classification and diversion in Chancheng District, Foshan and other projects. In addition, the company adjusted its business development ideas and preferred engineering contracting projects that can give full play to the advantages of design consultation and controllable risks, such as the newly signed EPC project of comprehensive energy station in the starting area of Baoding Shenzhen Park and the EPC project of comprehensive energy utilization in Yanqing competition area of the winter Olympic Games, so as to move towards the goal of high-quality development.
In terms of the development and application business of advanced engineering technology and equipment, the company emphasizes the empowerment of science and technology, and the subsidiary Beiqi Institute continues to maintain its leading position in the subdivided fields such as passenger ropeway, intelligent storage and logistics and environmental protection hoisting machinery. It newly signed the Xinjiang Altay jikeprin National Ice and snow tourism base project, and the intelligent logistics and storage system integration project of Shanghai Liangxin electric Haiyan base successfully passed the acceptance. The subsidiary Zhongyuan of China is in line with the consulting and design ability in the international advanced direction. The civil aviation three center project designed by it won the excellence award of the 2020 active house award China competition, the fast project won the Zhan Tianyou award of the 18th China Civil Engineering, and the new building project of the Chinese Consulate General in Munich won the Luban Award of China Construction Engineering (overseas project). Edited the international organization for Standardization ISO guidelines for the construction of emergency medical facilities iwa38, expanding the influence of the industry.
In terms of engineering investment and operation business, the company goes deep into the field of environmental protection with its subsidiary CAMCE. Pizhou Chengbei sewage treatment plant, Shanxi Yangmei Taihua and other sewage treatment plants continue to operate safely and stably; Successfully signed the franchise project of Anren sewage treatment plant in Dayi County, Chengdu and the TOT project of paoche sewage treatment plant in Pizhou, and won the bid for the PPP franchise project of food waste treatment plant in the central area of Dalian city; Xichang kitchen waste treatment project has entered trial operation and explored a new model of regional rolling development. At the same time, the company gave full play to its professional advantages in cableway, energy and other fields, closely followed projects in relevant fields, and formed a certain project reserve.
scientific and technological innovation multi-point flowering, R & D driven business upgrading
In China Camc Engineering Co.Ltd(002051) the “14th five year plan” strategic plan, the word “scientific research” has been mentioned to the historical strategic height. The company is upgrading from business oriented to R & D innovation driven business model, and the scientific research achievements will be the core driving force of the company’s future operation.
It is reported that China Camc Engineering Co.Ltd(002051) has built a system wide scientific and technological innovation management system internally, newly established a scientific and Technological Innovation Committee to consolidate the foundation of scientific and technological management, formulate scientific and technological management measures, detailed rules for R & D project management and assessment and reward, management measures for the application of external awards for science and technology and quality, and set up a high-level expert echelon of the company to strengthen the reserve and training of scientific and technological talents. In November 2021, the company successfully passed the national high-tech enterprise recognition again, and will continue to enjoy the preferential tax policies for high-tech enterprises in the next three years. By the end of the year, the company’s system had won 8 science and Technology (Progress) Awards above the provincial and ministerial level, and 92 authorized patents, including 18 invention patents and 13 registered software copyrights. Take the lead in organizing or participating in the preparation and revision of 161 international, national and industrial standards, of which 39 standards have been approved for release.
As the two important focuses of the company’s scientific and technological innovation, the scientific research achievements of Beiqi Institute and China Zhongyuan in 2021 are “multi-point flowering”. Three consulting achievements, including the feasibility study report on the frontier physical experiment facility project with extremely deep underground and very low radiation background, declared by Zhongyuan of China, won the national excellent engineering consulting achievement award in 2020 and were listed in the national 14th five year plan and the outline of long-term objectives in 2035. 11 projects including “xinlongzeyuan District of Beijing Jishuitan Hospital” won the first prize of Beijing excellent engineering design, 3 projects including “southwest building design project of the first hospital of Peking University” won the first prize of China State Construction Engineering Corporation Limited(601668) Institute of architecture, and “Xiamen heart center” won the first prize of Fujian excellent engineering survey and design achievement.
Beiqi continues to lead the development of the industry with technologies such as lifting and transportation equipment. During the reporting period, the first c8-mini detachable cableway was successfully built by Beiqi Institute and successfully passed the acceptance of the national cable inspection center, filling the gap of short station building and large volume cableway in China; The full-automatic garbage handling and hoisting system won the silver award in the national machinery industry product quality innovation competition, “Research on Key Technologies of super long-distance and long-span detachable passenger ropeway”, and won the second prize of science and technology of China Machinery Industry and the second prize of science and technology of state machinery group. “A kind of track roadway stacker” won the Chinese patent Excellence Award.
2022 is the key year for the implementation of the 14th five year plan. The company said that it will adhere to the general tone of seeking progress while maintaining stability, closely focus on the three strategic main lines of transformation and development, integrated development and high-quality development, accelerate transformation and upgrading, refine technology, strengthen specialty and expand the total amount, strive to build a new development pattern of mutual promotion of China’s international double cycle, and strive to move towards the goal of excellent project leader of the operation of the whole value chain of science, industry and trade integration with international competitiveness.
