Hilong Holding Ltd. · HKEX:1623
Hilong — FY2015 Earnings Presentation
20 slides from Hilong's earnings presentation, March 2016
Slide 1: 2015 Annual Results Presentation
2015 Annual Results Presentation March 2016
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
Results Highlights 4
Slide 5: Results Highlights
Results Highlights Hilong maintained stable operation despite the tough market environment in 2015 Oilfield equipment Oilfield services manufacturing & services Maintained stable operation for traditional Took active measures to cope with the advantageous business of drilling services challenging dr
Slide 6: Financial Overview
Financial Overview Total Revenue RMB MM RMB MMGross Profit Net Profit RMB MM to Equity Owners RMB MM RMB MM RMB MM 2015 full-year revenue amounted to RMB2,484 million, indicating a decline of ca. 4% over 2014 Recorded net profit attributable to equity owners of the Company of RMB161 million, a year-
Slide 7: Business Review
Business Review 7
Slide 8: Oilfield Services
Oilfield Services Maintained Stable Operation of Drilling Services Segment Revenue: - 11% and Achieved Diversification of Business RMB MM GP margin % Achieved stable operation for traditional advantageous business amid the depressed market Successfully maintained steady operation of existing 1,032 r
Slide 9: Oilfield Equipment Manufacturing and Services
Oilfield Equipment Manufacturing and Services Took Active Measures to Segment Revenue: - 47% Cope with the Market Challenges RMB MM GP margin % Drill pipe and related products 1,270 Maintained a strong market position in China and a relatively stable market share Actively adjusted the regional focus
Slide 10: Line Pipe Technology and Services
Line Pipe Technology and Services Implemented the Strategy of Diversification, Segment Revenue: + 9% High-end Orientation and Internationalization RMB MM GP margin % 295 Realized slight growth amid the tough market Coordinated development of domestic and 272 international business and won several or
Slide 11: Offshore Engineering Services
Offshore Engineering Services New Segment Smoothly Launched Full-year Revenue of RMB590 MM with a Successful Debut in the First Year RMB MM FY GP margin: 16% Successfully executed two major EPCI service contracts for CNOOC and built a solid track record Utilized Hilong 106 to lay offshore pipeline
Slide 12: Financial Performance
Financial Performance 12
Slide 13: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by Segment Oilfield equipment Oilfield equipment Oilfield services Offshore manufacturing manufacturing engineering services & services 40% & services 27% 24% 49% Line pipe technology Oilfield services & services Line pipe technology 37% 12% & services 2014 11% 20
Slide 14: Cost and Gross Profit Analysis
Cost and Gross Profit Analysis Total Cost in 2014: RMB1,555 MM Gross Profit and Margin Decreased Power & utilities Others RMB MM GP margin % 4% 8% Transportation 5% Depreciation 10% Raw materials Labor cost 55% 18% Total Cost in 2015: RMB1,674 MM Power & utilities Others 3% 7% Transportation 4% Raw
Slide 15: Profitability
Profitability A Year-on-Year Decline of Net Profit Profitability under Pressure RMB MM Gross Net profit margin profit margin 2014 2015 15
Slide 16: Capital Structure and Return
Capital Structure and Return Capital Structure Return on Assets & Return on Equity (1) RMB MM % 2014 2015 Operating cash flow 261 485 Cash & cash 548 821 equivalents Return on assets Return on equity Current assets 3,352 3,588 Total assets 6,627 7,064 Turnover Days for Current Assets (2) Short-term
Slide 17: Capital Expenditure
Capital Expenditure Capital Expenditure Breakdown Major Capital Expenditure Projects RMB MM 1,296 Offshore engineering services Continuous upgrade for Hilong 106 Oilfield services Procurement of rig components Line pipe technology & services 306 Upgrade expenses for CRA production line Oilfield equi
Slide 18: Business Outlook
Business Outlook 18
Slide 19: To Implement New Development Strategies under New Market Conditions
To Implement New Development Strategies under New Market Conditions Invest new rigs to support the future growth of China market - adjust the product mix and promote drilling services the drill pipe leasing business Albania – Shell – new 3,000HP rig (to start Overseas market - relocated part of pr
Slide 20: Q&A
Q&A 20