Wison Engineering Returns to Profitability in 2014 Profit Attributable to Owners of the Parent Reaches RMB 179 million

SHANG HAI, 30 March 2015 – Wison Engineering Services Co. Ltd. (“Wison Engineering” or the “Company”, SEHK stock code: 2236, together with its subsidiaries, the “Group”), the largest private sector chemical engineering, procurement and construction management (“EPC”) services provider in China, today announced its annual results for the year ended 31 December 2014 (the “Year”).

During the Year, due to the commencement and execution of major projects, the Group’s revenue increased by 90.3% year-on-year to approximately RMB6,992 million. Gross profit amounted to approximately RMB792 million, representing significant growth of 4.5 times that of gross profit of the previous year. The Group undertook various measures to rein in overall costs, achieving remarkable improvement in profitability and returning to profitability as a result. Profit attributable to owners of the parent reached approximately RMB179 million.

The Group’s business diversification strategy produced significant results during the Year, with the coal-to-chemicals segment became the biggest revenue contributor, generating revenue of approximately RMB4,338 million, up 2 times year-on-year and accounting for approximately 62.0% of total revenue. Revenue from the petrochemicals business rose by 57.9% year-on-year to approximately RMB2,326 million, accounting for approximately 33.3% of total revenue. Revenue from the oil refineries business recorded significant growth of 4.6 times to approximately RMB288 million.

Mr. Liu Haijun, Executive Director and Senior Vice President of Wison Engineering, said, “The year 2014 was a crucial year for our self-improvement and development. In the face of short-term uncertainties in the external environment, the Group made timely adjustments to its development strategy and further enhanced its project management and execution capabilities in accordance with the core strategy of 'Consolidating the growth foundation by development of scientific and systematic management and operating system and continuous improvement in profitability'. Furthermore, by adhering to a marketing strategy focusing on 'customer services, market orientation and diversification of business scopes', the Group actively expanded its overseas and domestic markets, stepped up efforts in technological research and development and pushed for the commercial application of new technologies, thus achieving outstanding financial results and laying a strong foundation for its sustainable and healthy development in future. With a more mature management team and all dedicated staff we believe that the Group will evolve into a world-class international engineering company with leadership in technology, management and services in the petrochemicals, coal-to-chemicals and oil refinery industries, and win the respect of customers and employees alike.”

During the Year, the Group adopted various systematic management measures to enhance the efficiency and profitability of its projects. It executed a total of 41 engineering projects and had 22 engineering, procurement and construction (“EPC”)/procurement and construction (“PC”) projects under construction or completed, while several major projects progressed smoothly and were delivered at high standards. Moreover, its execution capabilities and experience in dealing with overseas projects improved substantially. The site preparation for the Deep Conversion Project at the Puerto La Cruz Refinery in Venezuela undertaken by the Group commenced on-site construction in July, and until now the project has completed the delivery of the first land plot’s backfilling. In 2014, the Group signed over 80 new contracts. In a consortium with Hyundai Engineering & Construction Co., Ltd. (“HDEC”) and Hyundai Engineering Co., Ltd. (“HEC”) the Group secured a procurement and construction contract in relation to the core process units of a refinery. Pursuant to the contract, the Group took up approximately US$500 million of the contract value.

In addition, the Group made remarkable achievements in the development of innovative technologies and their commercial applications. Its coal-to-glycol technology being jointly developed with Tianjin University was used in a commercial project for the first time, while the SNG technology in a cooperation with Foster Wheeler and Clariant was at the pilot trial phase. Methanol-to-olefin ("MTO") separation technology, for which the Group has intellectual property rights, was involved in three technology transfers in 2014. The technology is currently being adopted by a total of eight MTO plants under construction or completed in China. The Group was also granted licences for its proprietary technology in butadiene and the Rectisol Process Technology during the Year.

In 2015, the Group will focus on the key measures of “internationalization development”, “enhancement in corporate governance”, “improvement in overall design and technological capabilities” and “promotion of new businesses” as it aims to extend its coverage in both the domestic and overseas markets, promote sales management in a more systematic manner, and actively develop the market areas in oil and gas pre-processing, LNG, storage and transportation and environmental projects. It will also refine project management to improve profitability and further secure the Group’s advantages in project management and will enhance its overall corporate governance standards. It aims to especially enhance its design capabilities in the areas of management structure, the application of information technology and accountability in management and retain its leading position in existing core technologies. management and retain its leading position in existing core technologies.