Hilong Holding Ltd. · HKEX:1623
Hilong — H1 2020 Earnings Presentation
19 slides from Hilong's earnings presentation, 2020
Slide 1: 2020 Interim Results Presentation
2020 Interim Results Presentation
Slide 2: Disclaimer
Disclaimer The presentation material contains forward-looking statements. Such forward-looking statements are subject to various risks, uncertainties and assumptions, certain of which are not under our control, causing actual results and growth which may differ materially from these direct or indire
Slide 3: Content
Content 1 Results Highlights 2 Business Review 3 Financial Performance 4 Business Outlook 3
Slide 4: Results Highlights
@&HILONG Results Highlights
Slide 5: Results Highlights
Results Highlights Due to the multiple external challenges, Hilong’s financial performance declined in 1H 2020 and realized a total revenue of RMB1,557 million during the reporting period. Oilfield Services Oilfield Equipment Manufacturing & Services Strived to maintain workload for drilling & worko
Slide 6: Financial Overview
Financial Overview RMB MM Revenue Gross Profit RMB MM RMB MM Net Profit RMB mm RMB mm RMB mm 2,000 1,860 149 150 610 600 1,557 1,500 500 100 400 1,000 50 200 500 0 1H 2019 1H 2020 0 0 (50) (42) 1H 2019 1H 2020 1H 2019 1H 2020 Total revenue Gross profit Net profit The Company realized a total revenue
Slide 7: Business Review
@&HILONG Business Review
Slide 8: Oilfield Services
Oilfield Services Segment Revenue of RMB432 million Strived to Maintain Normal Operation RMB mm GP margin % Endeavored to continue the existing contracts for more rigs despite the challenging market 800 35% environment, with a target to maintain normal 695 operation for the overall segment 32% 30% ❖
Slide 9: Oilfield Equipment Manufacturing and Services
Oilfield Equipment Manufacturing and Services Stable Overall Performance Segment Revenue of RMB827 million Driven by Overseas Business RMB mm GP margin % Drill pipe & related products Drill pipe business remained stable owing to its anti- 1200 41% 40% cycle feature ❖ The feature that drill pipes nee
Slide 10: Line Pipe Technology and Services
Line Pipe Technology and Services Segment Revenue of RMB85 million Revert Focus to Domestic Market RMB mm GP margin % Gradually shift the focus of line pipe anti-corrosion 250 34% coating and CWC business to domestic market ❖ Due to the impact of the epidemic, some 31% overseas projects have been su
Slide 11: Offshore Engineering Services
Offshore Engineering Services Achieved Significant Revenue Growth Segment Revenue of RMB213 million And Substantial Business Progress RMB mm Successfully completed the 135-kilometer offshore pipe-laying construction of the CNPC Bangladesh single-point mooring and double pipeline project 250 ❖ Comple
Slide 12: Financial Performance
@&HILONG Financial Performance 12
Slide 13: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by Segment Offshore engineering services Offshore engineering services 13.7% 6.6% Oilfield equipment Oilfield services manufacturing & Oilfield services Oilfield equipment 37.5% services manufacturing & 27.8% 53.0% services 45.2% Line pipe technology & services 5.
Slide 14: Cost, Gross Profit and Changes in Account Receivable
Cost, Gross Profit and Changes in Account Receivable Stable Gross Profit Margin Total Cost in 1H 2019: RMB1.25 billion RMB mm GP margin % Power & utilities Others 800 32.8% 8% 32.1% 3% 30% Transportation 610 600 4% 500 20% Depreciation 400 Raw materials 15% 10% 55% 200 0 0% Labor cost 1H 2019 1H 202
Slide 15: Capital Structure and Return Rate
Capital Structure and Return Rate Capital Structure Return on Assets & Return on Equity1 % 8.1% 7.5% 5.5% 3.5% 06/30/2020 12/31/2019 3.5% 1.5% 1H 2020 RMB mm -0.5% -2.5% 1H 2019 -1.0% -2.2% Cash & cash equivalents 841 783 Return on assets Return on equity Current assets 4,644 4,674 Turnover Days for
Slide 16: Capital Expenditure
Capital Expenditure Capex Breakdown Major Capex Needs in 2020 2018上半年重大资本开支项目 RMB mm 300 Most of Hilong’s business has entered a relatively mature period and the overall demand for new 248 investment has decreased 250 Given the current external market environment, the Company will strictly control c
Slide 17: Business Outlook
@&HILONG Business Outlook 17
Slide 18: Actively Respond to Market Challenges – Expand New Business Areas While Strengthening Existing Advantages
Actively Respond to Market Challenges – Expand New Business Areas While Strengthening Existing Advantages Aiming to establish domestic business as soon as Promote high-end functional and customized drill pipe possible – to provide domestic customers with high-level products based on the actual needs
Slide 19: Q&A
@&HILONG Q&A