Hilong Holding Ltd. · HKEX:1623
Hilong — H1 2017 Earnings Presentation
19 slides from Hilong's earnings presentation, August 2017
Slide 1: 2017 Interim Results Presentation
2017 Interim Results Presentation August 2017
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 significant rebound in its operations across all of the business units in 1H2017 Oilfield services Oilfield equipment manufacturing & services Achieved stable growth and maintained healthy Drill pipe and related products business achieved operation for the drilling
Slide 6: Financial Overview
Financial Overview RMB MM Revenue RMB MMGross Profit RMB MM Net Profit RMB mm RMB mm RMB mm 1,500 500 80 441 73 69 1,257 70 66 400 60 324 1,000 922 300 50 43 40 200 30 500 20 100 10 0 0 0 1H2016 1H2017 1H2016 1H2017 1H2016 1H2017 Total Revenue Total Gross Profit Net Income (1) Pro forma NI before FX
Slide 7: Business Review
@&HILONG Business Review
Slide 8: Oilfield Services
Oilfield Services Maintained Stable Growth of Drilling Services Segment Revenue: +9% and Achieved Diversification of Business RMB mm GP margin % 42% Achieved healthy operation for traditional advantageous 500 business amid the depressed market 450 41% 40% Successfully maintained steady operation of
Slide 9: Oilfield Equipment Manufacturing and Services
Oilfield Equipment Manufacturing and Services Segment Revenue: +60% Achieved notable growth in competitive market RMB mm GP margin % Drill pipe and related products 800 38% 40% Achieved very strong growth, especially in ex-Soviet Union regions such as Russia and Uzbekistan 700 646 Was selected as on
Slide 10: Line Pipe Technology and Services
Line Pipe Technology and Services Implemented the Strategy of Diversification, Segment Revenue: + 40% High-end Orientation and Internationalization RMB MM GP margin % Realized substantial growth amid the tough market 210 30% 198 Coordinated development of domestic and international 4 business and co
Slide 11: Offshore Engineering Services
Offshore Engineering Services Vigorously promoted the new segment and 1H2017 Revenue of RMB38 MM won several orders despite tough market conditions RMB mm Successfully completed the design project for the construction of Sanya Airport 50 0.1 Successfully completed the second installation of 45 condu
Slide 12: Financial Performance
@&HILONG Financial Performance
Slide 13: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by Segment Offshore 3% Offshore Oilfield equipment engineering services engineering Oilfield services manufacturing services 4% 30% & services 44% Oilfield equipment Oilfield services manufacturing 37% & services 51% Line pipe technology Line pipe technology & ser
Slide 14: Cost and Gross Profit Analysis
Cost and Gross Profit Analysis Total Cost in 1H2017: RMB815MM Gross Profit Margin Stable Power & utilities Others RMB mm GP margin % 2% 7% Transportation 600 40% 3% Raw materials Depreciation 35.1% 35.1% 12% 64% 500 441 30% Labor cost 12% 400 324 Total Cost in 1H2016: RMB598MM 300 20% Power & utilit
Slide 15: Capital Structure and Return
Capital Structure and Return Capital Structure Return on Assets & Return on Equity (1) % 4.0% 4.2% 2016 1H2017 1.9% 1.9% RMB mm Cash & cash equivalents 657 736 1H2016 1H2017 Return on assets Return on equity Current assets 3,691 4,051 Total assets 7,298 7,589 Turnover Days for Current Assets (2) 1,4
Slide 16: Capital Expenditure
Capital Expenditure Capital Expenditure Breakdown Major Capital Expenditure Projects RMB mm 160 Offshore engineering services 140 Continuous upgrade for Hilong 106 131 120 20 108 100 80 44 Oilfield services 67 Normal maintenance of rigs 60 22 40 0.2 1.3 20 44 41 Oilfield equipment manufacturing & se
Slide 17: Business Outlook
@&HILONG Business Outlook
Slide 18: To Implement New Development Strategies under New Market Conditions
To Implement New Development Strategies under New Market Conditions Expand new regional markets with a focus in the Overseas market – continue to cultivate individual key Middle East and South Asia region which benefits form markets including Russia and its surrounding regions and the one belt one r
Slide 19: Q&A
@HILONG Q&A