Hilong Holding Ltd. · HKEX:1623
Hilong — FY2017 Earnings Presentation
21 slides from Hilong's earnings presentation, March 2018
Slide 1: 2017 Annual Results Presentation
2017 Annual Results Presentation March 2018
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 Hilong achieved satisfactory results in operations across all business segments in 2017 Oilfield services Oilfield equipment manufacturing & services Achieved stable operation and revenue for the Drill pipe business was the first segment to be drilling services benefited by the re
Slide 6: Financial Overview
Financial Overview RMB MM Revenue RMB MMGross Profit RMB MM Net Profit RMB mm RMB mm RMB mm 3,000 900 846 160 2,669 800 140 2,500 128 126 700 667 119 120 2,000 1,929 600 100 500 79 1,500 80 400 60 1,000 300 40 200 500 100 20 0 0 0 2016 2017 2016 2017 2016 2017 Total Revenue Gross Profit Net Income P
Slide 7: Business Review
HILONG ae Business Review
Slide 8: Oilfield Equipment Manufacturing and Services
Oilfield Equipment Manufacturing and Services Segment Revenue: +69% Benefited by the recovery of oil & gas sector RMB mm GP margin % Drill pipe and related products Success in overseas market lead to significant growth, 32% 32% especially in Russia and Uzbekistan 1400 1,316 30% Domestic drill pipe m
Slide 9: Oilfield Equipment Manufacturing and Services (continue)
Oilfield Equipment Manufacturing and Services (continue) Domestic market recovery, lead to high-end demands Strong growth in overseas market, assist global reach As international oil price and demand for natural gas As Sino-Russian East Gas Pipeline is pressing forward, continue to grow, the drillin
Slide 10: Oilfield Services
Oilfield Services Stable drilling services revenue & Segment Revenue: +24% Breakthrough in integrated services RMB mm GP margin % Maintain steady growth in drilling services 1200 Successfully maintained steady operation of existing rigs 42% 40% Realized smooth continuation of existing contracts 10
Slide 11: Oilfield Services (continue)
Oilfield Services (continue) Continue diversification, Market recovery , benefiting oilfield service segment explore new services and new markets Oil & gas sector showed signs of recovery in 2017, In 2017, Hilong achieved breakthrough in integrated during which Hilong’s existing rigs maintained stea
Slide 12: Line Pipe Technology and Services
Line Pipe Technology and Services Implemented the strategy of diversification, Segment Revenue: -11% High-end orientation and internationalization RMB MM GP margin % Coordinated development of domestic and international business and completed a number of important projects 450 32% Successfully sec
Slide 13: Offshore Engineering Services
Offshore Engineering Services Segment Revenue: +110% HL-106 in Operation RMB mm 150 100 143 50 68 0 2016 2017 Offshore pipe laying service Notable increase in new orders Successfully completed the design project for the construction of Sanya Airport Successfully completed the second installation of
Slide 14: Financial Performance
HILONG ae Financial Performance
Slide 15: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by Segment Offshore Offshore engineering services engineering Oilfield services 3.5% services Oilfield equipment 33% manufacturing 5.4% & services Oilfield services 40.5% 37% Oilfield equipment manufacturing Line pipe technology & services Line pipe technology & s
Slide 16: Cost and Gross Profit Analysis
Cost and Gross Profit Analysis Total Cost in 2017: RMB1.82billion Gross Profit remain healthy Power& utilities RMB mm GP margin % 3% 900 846 40% Transportation Others 3% 7% 800 35% Labor cost 16% Raw materials 700 667 59% 32% 30% Depreciation 600 13% 500 20% 400 Total Cost in 2016: RMB1.26billion Po
Slide 17: Capital Structure and Return
Capital Structure and Return Capital Structure Return on Assets & Return on Equity (1) % 3.7% 3.6% 1.8% 1.8% 2016 2017 RMB mm Cash & cash 2016 2017 657 389 Return on assets Return on equity equivalents Current assets 3,691 3,708 Turnover Days for Current Assets (2) Total assets 7,298 7,151 Day 236 2
Slide 18: Capital Expenditure
Capital Expenditure Capital Expenditure Breakdown Major Capital Expenditure Projects in2017 RMB million 269 Offshore engineering services 250 232 Continuous upgrade for Hilong 106 65 42 200 94 61 150 Oilfield services 9.0 Normal maintenance of rigs 4.4 100 120 50 106 Oilfield equipment manufacturing
Slide 19: Business Outlook
HILONG ae Business Outlook
Slide 20: Business Outlook by Segment
Expand new regional markets with a focus in the Continue to cultivate individual key markets including Russia Middle East and South Asia region which benefits form and its surrounding regions and strengthen its leading market the one belt one road initiative in China position in these regions. Succe
Slide 21: Q&A
» @&HILONG Q&A