According to the investor relations of East China Engineering Science and Technology (002140.SZ) on November 7th, as of the end of September 2024, the company has newly signed engineering contracts totaling 9.742 billion yuan, including: 0.158 billion yuan for design contracts and 9.584 billion yuan for total construction contracts; domestic projects amount to 6.628 billion yuan, while overseas projects amount to 3.114 billion yuan.
As of the end of September 2024, the company has accumulated unfinished orders totaling 39.784 billion yuan, including: 1.648 billion yuan for design contracts and 38.136 billion yuan for total construction contracts; domestic projects account for around 30 billion yuan, and overseas projects around 10 billion yuan. The substantial contract reserves provide support for the company's future revenue growth and business transformation.
The execution period of each project is subject to the specific terms of the contract; generally, the execution period of engineering design projects is mostly 1-2 years, while total construction project execution periods range from 2-3 years; overseas projects typically have longer execution periods than domestic projects. The company's business gross margin is mainly influenced by revenue composition and market competition, including factors such as the proportion of design technology, total construction income, the proportion of chemical projects, infrastructure, and environmental projects, and the competitive situation of contracted projects. Generally, the gross margin of design projects is higher than that of total construction projects, and the gross margin of chemical projects is higher than that of infrastructure and environmental projects. The gross margin of EPC total construction projects is higher than that of project management total construction (EPCM) projects. Overall, the company's project gross margin is relatively stable, staying within a range of 10%-15% over the years, with some fluctuations.
