China National Chemical Engineering Co., Ltd: history, ownership, mission, how it works & makes money

A Brief History of China National Chemical Engineering Co., Ltd

Founded in 1953, China National Chemical Engineering Co., Ltd (CNCEC) has evolved into one of the largest engineering companies in China, specializing in chemical engineering, construction, and project management. The company operates as a subsidiary under China National Chemical Corporation (ChemChina), which is a state-owned enterprise.

CNCEC has played a significant role in the development of China's chemical industry. In 1991, it was restructured and became a wholly state-owned enterprise. Over the years, it has expanded its operations internationally, establishing a presence in over 50 countries.

In 2020, CNCEC reported significant financial performance, with total revenue reaching approximately RMB 90 billion (around USD 13.9 billion). The company has been involved in more than 1,000 large-scale projects both domestically and abroad.

The corporate structure of CNCEC includes various subsidiaries that focus on different facets of engineering and consulting services. These subsidiaries contribute to CNCEC's robust project portfolio, including petrochemical, urban development, and environmental protection projects.

During its growth, CNCEC has also pursued various strategic partnerships and collaborations with international firms. In 2018, the company secured contracts worth approximately USD 2 billion in the Middle East, further solidifying its global footprint.

Furthermore, CNCEC has invested heavily in R&D, with over RMB 1 billion allocated to innovation and technological advancements in the last fiscal year, underscoring its commitment to maintaining competitiveness in the rapidly evolving engineering landscape.

As of 2023, CNCEC continues to lead the market, with a workforce exceeding 30,000 employees and a growing emphasis on sustainable engineering solutions. The company aims to transition further into green technologies, aligning with global environmental standards.

Financial analysts project a steady growth trajectory for CNCEC, anticipating revenue growth of around 5% to 7% annually over the next five years, driven by expanding markets in Asia, Africa, and South America.

A Who Owns China National Chemical Engineering Co., Ltd

China National Chemical Engineering Co., Ltd (CNCEC) is a prominent player in the chemical engineering sector, primarily engaged in the construction and management of chemical plants. The ownership structure of CNCEC includes a mix of state and private entities.

As of September 2023, the majority ownership is held by the state through a significant stake owned by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). This government body is responsible for managing state-owned enterprises and holds approximately 69.79% of CNCEC's shares.

In addition to SASAC, other shareholders include institutional and private investors. The breakdown of ownership is as follows:

In terms of financial performance, CNCEC reported revenue of approximately RMB 100.54 billion (around $15.4 billion) for the year ending December 2022. Additionally, the net profit attributable to shareholders was recorded at RMB 4.25 billion (approximately $650 million), indicating a healthy profit margin.

The company’s initial public offering (IPO) took place in 2009 on the Shanghai Stock Exchange, where it trades under the ticker symbol 601117. As of October 2023, CNCEC’s market capitalization stands at around RMB 150 billion (approximately $23 billion).

Furthermore, CNCEC has expanded its portfolio internationally, undertaking projects in over 40 countries across Asia, Europe, and Africa. The company emphasizes stability and growth, reinforced by its substantial government backing, which plays a critical role in its operational strategy and funding.

Overall, the ownership model of CNCEC reflects a strong influence of state control, with a strategic mix of private and institutional investment enhancing its operational agility and funding capabilities. This ownership structure and financial strength position CNCEC well within the competitive landscape of the chemical engineering industry.

China National Chemical Engineering Co., Ltd Mission Statement

China National Chemical Engineering Co., Ltd (CNCEC) is a prominent player in the engineering and construction sector, particularly in the chemical industry. The mission statement reflects its commitment to innovation, safety, and sustainable development.

CNCEC aims to provide leading engineering services and contribute to the modernization of the chemical industry. The company prioritizes technological advancement and environmental stewardship in its operations.

In the fiscal year 2022, CNCEC reported a total revenue of approximately RMB 29.12 billion, reflecting a growth of around 10.4% from the previous year. The company's net profit for the same period was approximately RMB 1.67 billion.

CNCEC has also made strides in international markets, securing contracts valued at over USD 2.5 billion across various countries. This includes projects in Asia, Africa, and Latin America, underscoring its global reach.

The company's employee base stands at around 33,000 skilled workers, enabling it to efficiently handle large-scale projects. CNCEC's investment in research and development reached about RMB 1.2 billion in 2022, emphasizing its focus on innovation and technological enhancement.

In recent years, CNCEC has also prioritized digital transformation. The implementation of AI and big data analytics in project management is expected to reduce costs by approximately 15%, enhancing project execution efficiency.

As part of its mission to foster sustainable practices, CNCEC aims to achieve 30% reduction in carbon emissions by 2025. This is part of a broader strategy to align with national and global environmental goals.

The financial stability of CNCEC can be highlighted through its current ratio, which stands at 1.8, indicating robust short-term financial health. Additionally, the company maintains a debt-to-equity ratio of approximately 0.5, showcasing a balanced approach to leverage.

With a commitment to excellence and a strong strategic vision, CNCEC continues to solidify its position as a leader in the chemical engineering sector, driven by its mission to innovate responsibly and sustainably.

How China National Chemical Engineering Co., Ltd Works

China National Chemical Engineering Co., Ltd (CNCEC), one of the largest engineering companies in the world, specializes in providing integrated engineering services in the chemical and petrochemical industries. With a history dating back to the 1950s, CNCEC has established a significant presence in both domestic and international markets.

As of the end of 2022, CNCEC reported total revenues of approximately RMB 82.4 billion (around USD 12.4 billion), reflecting a year-on-year growth of 8.7%. The company's net income for the same period was around RMB 4.2 billion (approximately USD 634 million), marking an increase of 10.1% from the previous year.

CNCEC operates under a project-based model, focusing on the following key areas:

• Design and engineering services
• Procurement and construction
• Project management
• Technical services and consulting

The company has successfully completed numerous projects both in China and overseas, including notable projects in countries such as Iraq, Algeria, and Indonesia. In the international arena, it has participated in over 200 projects spanning across 50 countries.

As of Q3 2023, CNCEC's order backlog stood at approximately RMB 100 billion, highlighting the company's robust pipeline of future projects. The company has been strategically focusing on expansions into emerging markets, particularly in Southeast Asia and Africa.

In addition to traditional engineering services, CNCEC is investing heavily in technology and innovation, particularly in areas such as smart manufacturing and environmental protection technologies. This aligns with China's broader goals of achieving sustainability and reducing carbon emissions.

The company's diverse portfolio also includes participation in several high-profile projects, such as the construction of petrochemical complexes, refineries, and various infrastructure developments. More than 40% of CNCEC's projects are in the energy sector, showcasing its pivotal role in supporting China’s energy transition.

In terms of workforce, CNCEC employed over 50,000 individuals by the end of 2022, with a significant portion being highly skilled engineers and technical staff. The company continually invests in employee training and development to maintain a competitive edge.

Overall, CNCEC's operational framework combines project execution excellence with a strong emphasis on economic efficiency, technological advancement, and sustainable practices, positioning it well for future growth in the dynamic global engineering market.

How China National Chemical Engineering Co., Ltd Makes Money

China National Chemical Engineering Co., Ltd (CNCE) generates revenue primarily through engineering and construction services in the chemical sector. Its operations can be segmented into several key areas, including project contracting, technological development, and product sales.

In the fiscal year 2022, CNCE's revenue reached approximately RMB 92.1 billion (about USD 14.5 billion), showcasing a year-over-year growth of 12.6%. This growth is attributed to increased demand for chemical engineering services, particularly in energy, petrochemicals, and environmental protection sectors.

The company is involved in diverse projects worldwide and has a strong foothold in markets such as petrochemical engineering, infrastructure projects, and utilities. A significant portion of CNCE's contracts comes from state-owned enterprises, enhancing its stability and revenue predictability.

In 2022, the breakdown of revenues by segment was as follows:

CNCE's project contracting business includes various types of projects such as construction, design, and installation related to chemical plants and industrial facilities. The company has successfully delivered over 300 major projects across more than 50 countries.

In terms of profitability, CNCE reported a gross profit margin of 18.3% in 2022. This was attributed to effective cost management measures and a focus on high-value projects. The company’s net income for the same year was approximately RMB 8.6 billion (around USD 1.4 billion), reflecting a net profit margin of 9.3%.

CNCE also invests in research and development to enhance its technological capabilities. In 2022, R&D expenditure was approximately RMB 2.3 billion, accounting for 2.5% of its total revenue. This investment has led to significant advancements in process technologies and engineering methods.

Furthermore, the company has been expanding its international footprint, contributing to revenue diversification. In 2022, international projects accounted for approximately 30% of total revenue, marking an increase from 25% in 2021.

The company’s robust order backlog, which stood at around RMB 110 billion as of December 2022, provides visibility into future revenue streams and reinforces CNCE’s growth outlook. This backlog includes long-term contracts that ensure steady income over the coming years.

Overall, China National Chemical Engineering Co., Ltd capitalizes on its extensive industry experience, technological advancements, and a diversified project portfolio to drive revenue and profitability in the competitive chemical engineering sector.