Hydrogen, Innovation, Future Intelligence and Energy Connect to the World | CIMC Enric Holds 2023 Annual Results Conference

On March 26, CIMC Enric Holdings Limited (“CIMC Enric” or the “Group”, stock code: 3899.HK) held an investor promotion conference for the 2023 annual results in Hong Kong.Mr. Gao Xiang, chairman of CIMC Enric, Mr. Yang Xiaohu, executive director and president, Ms. Zhong Yingxin, secretary of the board of directors, and Mr. Lai Zeqiao, head of finance, attended.The company's performance for the full year of 2023 and future development strategies were shared, and questions raised by investors were answered.

From left to right: Mr. Lai Zeqiao, Mr. Yang Xiaohu, Mr. Gao Xiang, and Ms. Zhong Yingxin

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In 2023, stimulated by favorable factors such as the recovery of domestic natural gas consumption and economic recovery and favorable government policies, the Group's business achieved high-quality development, especially the clean energy business. During the year, the Group's revenue, profit, and number of orders all reached record highs. In order to better return shareholders, the company's board of directors proposed a final dividend of HK$0.3 per share, further increasing the dividend ratio to 50%

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2023, CIMC EnricoRevenue increased by 20.5% to RMB 23.63 billion;Gross profit increased 9.4% to RMB 3.72 billion, gross margin was 15.7%, and net profit attributable to equity holders rose 5.6% to RMB 1.11 billion, and basic profit per share was RMB 0.554.

In 2023, the GroupThe total number of new orders signed was RMB 26.64 billion, up 31.5% year on year. The number of active orders as of the end of 2023 was RMB 22.85 billion, up 29.8% year on year.Furthermore, the Group's ESG performance was recognized by authorities. The MSCI ESG rating was upgraded by two levels to AA, and the WinDesg rating was upgraded to AA, all ranking first in the domestic industry.

In terms of clean energy,Revenue during the year increased significantly by 40.8% to RMB14.91 billion, of which hydrogen business revenue increased sharply by 59.0% year over year to RMB700 million.Clean energy revenue accounts for 63.1% of the Group's overall revenue. New clean energy orders rose sharply by 64.9% to RMB 18.57 billion.

In 2023, benefiting from favorable factors such as domestic policy support, recovery in natural gas consumption, and stable LNG prices, the onshore clean energy business achieved good growth in all parts of the industrial chain. In particular, in the field of terminal applications, the explosion in the heavy natural gas truck market has boosted demand for LNG vehicle bottles, and both new and delivery orders have increased dramatically.The total number of new LNG vehicle bottle orders signed was nearly RMB 1.3 billion, a sharp increase of about 39 times over the previous year.The Group also signed a new EPC order for an overseas LNG liquefaction plant, and overseas business revenue increased sharply by 30%. The upstream coke oven gas hydrogen co-production LNG project was quickly replicated. Following successful collaboration with Shougang Water Steel and Linggang Group, related projects will continue to be put into operation from 2024 to 2025. In addition, the green methanol project is progressing smoothly, and it is planned to launch the first demonstration project with an annual output of 50,000 tons in 2025.

Revenue from the clean water energy business surged 74.1% year on year, on-hand orders soared 110.5%, and new orders surged 174.6% year over year.During the year, the Group received orders for nearly 20 new shipbuilding and alternative ships for major ship types, including liquefied gas carriers and clean energy powered ships, and built the first MGC ship to match liquid ammonia transportation and demand, and is expected to become the backbone of clean energy transportation.

In terms of hydrogen energy business, the Group continues to lead technology research and development in fields such as hydrogen energy storage and transportation equipment.It successfully launched the first liquid hydrogen tank and commercial liquid hydrogen tanker in China.The first domestic 30MPa hydrogen tube container was successfully developed and shipped in batches. In additionHelping Hong Kong's first hydrogen refueling station and first IV bottle hydrogen bus officially put into operation,It has opened up a hydrogen energy urban transportation application scenario in Hong Kong.

In terms of chemical environment, the Group announced on October 11, 2023

The global economy and trade recovered weakly in 2023, demand for tank containers returned to normal levels, and the Group maintained its leading position in the global market. Within the year,

During the year, the Group's market demand for electrolyte tanks, high-end lined tanks, and refrigerant tanks continued to improve. In response to the country's green environmental protection policy, the Group built the industry's first coating powder coating line with nearly zero VOCs emissions, and successfully achieved mass production.

In terms of liquid food,

During the year, the Group promoted the spin-off of CIMC Anruitol Technology Co., Ltd. (“CIMC Alcohol Division”) and plans to go public on A-shares. Meanwhile, the Group's turnkey brewery projects in Latin America, Southeast Asia and other regions continue to flourish. In November 2023, CIMC Alcoholics acquired Künzel Maschinenbau, an established European raw food processing company. This strategic move enhances the Group's raw food processing solutions at the front end of the brewing production line, including the development, installation and transformation of equipment. In addition, the Group is actively expanding its business in biomedicine and spirits categories, won the International Society of Pharmaceutical Engineering's Best Supplier of the Year award, and won several turn-key projects for whiskey production in the Chinese market.

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CIMC Enric is transforming from equipment+engineering to a comprehensive service provider for technology-based low-carbon smart new energy solutions, supporting industry transformation with comprehensive services and R&D capabilities, and expanding our business capabilities to create a digital-intelligence integrated industrial interactive value-added business format that relies on key equipment+core process+integrated services. Just like our theme “Hydrogen, Innovative Future, Smart Energy Connect to the World,” Future Group will implement the “3+2+N” strategy. 3 is clean energy equipment and engineering+chemical environment+liquid food, 2 is hydrogen energy and new energy (new business formats such as the Angang Steel Project), and N is the development direction of smart interconnection, multi-energy complementarity, comprehensive energy utilization, biomass energy (green methanol), etc., to create long-term growth and bring continuous returns to shareholders.

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