On November 10, the 11th meeting of the fifth board of directors of BOMEC Offshore Engineering Co., Ltd. (603727) was held on-site and through communication, and 9 votes agreed to adopt the "2026 "Improving Quality, Increasing Efficiency and Focusing on Returns" 2.0 Action Plan". The announcement was disclosed on November 11, with a full text of 13 pages (source: Juchao Information, Announcement No. 2026-047).
The announcement gives figures for three directions from 2023 to 2025: operating income from 1.79899 billion yuan to 2.64023 billion yuan, and then dropped to 1.90037 billion yuan; gross profit margin rose from 8.47% to 16.23%, and then to 19.48%; net profit attributable to the parent company increased from -75.477 million yuan to 100.546 million yuan, and then dropped to 61.4478 million yuan. In the same period, it was disclosed that the total number of newly signed contracts as of the announcement date has exceeded 6 billion yuan, and the order scale is expected to reach a new high by the end of the year.
Revenue is back above the 2023 level, gross profit margin is the highest in three years, but net profit is less than 2024. The three numbers point to three different things.
The announcement itself gave the mechanism: The company "belongs to an order-driven offshore module construction enterprise, and revenue recognition is highly related to project delivery nodes." "Affected by project production schedules and delivery rhythms, there are phased fluctuations. The concentrated delivery of key projects in 2024 will push up revenue, and it will fall back in 2025 with changes in the volume of projects delivered in the current period." (Source: Same as above).
Offshore module EPC recognizes revenue based on project milestones. The upper module of an FPSO goes from cutting, pre-assembly, final assembly to shipping, and spans the year. The revenue follows the node, not the order book. This explains why revenue can drop 28% in one year: It is not that the order is gone, but that no project of the same size has reached the confirmation node this year.
The three-year increase in gross profit margin was also announced in the same place - "The company's gross profit margin is at a relatively high level from 2024 to 2025, which is mainly due to the centralized delivery of high-margin FPSO module projects and the optimization of the settlement structure. It is a phased, non-comparable operating result." The same sentence acknowledged both the reason and the non-repeatability. Pushing forward to 2020, the company contracted the first FPSO assembly project. From module construction to final assembly integration; the high gross profit in 2024 is the result of this path going full circle for the first time.
The first category is the Tianjin Lingang base and supporting subcontracting. A 770,000 square meter production base, a shoreline terminal of more than 1 km, plus a comprehensive pre-assembly workshop and 2# terminal expansion under construction. The announcement describes it as a production capacity layout of "dual FPSO final assembly + ultra-large module batch shipment". A new order of 6 billion yuan falls on this kind of production capacity, and the marginal cost is the lowest; conversely, if the second FPSO final assembly project cannot be won, The expanded terminal is only used for module shipping.
The second category is shareholders. Since the listing in 2016, cash dividends have been distributed for ten consecutive years, accumulating more than 470 million yuan, accounting for more than 55% of the total net profit; the second repurchase in 2025 will use its own funds of 47.1927 million yuan to repurchase 4.348 million shares, accounting for 1.5434% of the total share capital; there are no less than 2 dividends planned for 2026, and the dividend payout rate will not be less than 55%. (Source: Same as above) . This is a continuous cash outflow.
The injured party is on the settlement side. The announcement stated that "nearly 100% of the business comes from international customers", the income is "settled in foreign currencies (mainly US dollars)", and "the appreciation of the RMB exchange rate will have a certain conversion impact on the income and gross profit margin measured in RMB". The same announcement also said that new large orders signed in 2026 "have been signed and settled in RMB", and that subsequent negotiations will be conducted in RMB settlement to "smooth out the gains and losses from exchange rate fluctuations". Put these two sentences together, the meaning is: The positive contribution of financial expenses in the past three years has been narrowing - financial expenses were 34.2037 million yuan in 2023, -1.9108 million yuan in 2024, and further to -56.7614 million yuan in 2025, that is, net income. If the settlement is changed to RMB, the exchange rate gain and loss will disappear. For the structure of US dollar-denominated income and RMB-denominated costs, this is to close the exposure and income.
There is a line in the announced operating indicator table "Proportion of high value-added business revenue". The current column says "Contract the first FPSO assembly project in 2020", and the 2026 target column says "Strive to undertake the second FPSO assembly project". There is no percentage in the two cells. An indicator named after "proportion" has neither numerator nor denominator, leaving only one event and one intention. This is this 13 The most substantial gap in the document is: The company wants to integrate final assembly, but it has not disclosed how much revenue the final assembly business currently accounts for.
The second tension lies in the gross profit margin target. The 2026 target is "not lower than the average level of the past three years and rising steadily", while the average value of the past three years is 15.00%, and the actual value in 2025 is 19.48%. The lower limit of the target is lower than the actual value of the previous year. The explanation for this in the announcement is that "this plan does not set a rigid gross profit margin quantitative target commitment" because external factors such as exchange rates are uncontrollable. However, the same document also stated that new orders have been settled in RMB - if the proportion of RMB settlement increases, the disturbance of the exchange rate on the gross profit margin should be weakened. Using the exchange rate to explain the lack of rigid targets, the intensity is getting smaller.
The third point is the caliber of R&D investment. The three-year R&D investment is 105.093 million yuan, 118.903 million yuan, and 81.3277 million yuan. The announcement stated that "R&D investment accounts for more than 4% of operating income." Calculated based on 81.3277 million yuan to 1.90037 billion yuan in 2025, the ratio is 4.28%, which is indeed more than 4%. But the proportion has been maintained because the denominator shrinks faster than the numerator: three-year revenue peaked in 2024, and R&D investment also peaked in the same year.
A testable inference is that operating income in 2026 will return to above 2025, and gross profit margin will fall from 19.48%. The two are out of sync. The basis is two facts given by the announcement itself - 6 billion yuan of new contracts need to be recognized in subsequent years according to delivery nodes, and there is support on the revenue side; while 19.48% is clearly attributed to "centralized delivery of high gross profit FPSO module projects" and "phased, non-comparable". This delivery structure will not be repeated from year to year.
For the time scale, look at the 2026 annual report. If you want to see the direction earlier, look at the segment revenue structure of the 2026 semi-annual report - the relative weight changes of the offshore oil and gas development sector and the natural gas liquefaction sector will be reflected before the consolidated gross profit margin.
There are two falsification signals. First, if the gross profit margin reported in 2026 is still above 19%, and revenue has increased significantly, it means that the source of gross profit margin is not the delivery structure but bargaining power or cost control. The above inference is wrong. Second, if the revenue in 2026 does not return to above 1.90037 billion yuan, it means that the production schedule of 6 billion yuan of new orders has not started as scheduled, and the problem lies on the production capacity or the customer side. rather than the revenue recognition rhythm.
Another judgment that needs to be verified: the proportion of RMB settlement. The announcement only states that "newly signed large-amount orders have been signed and settled in RMB." It does not give a proportion, nor does it give the scale of existing US dollar contracts. This proportion determines whether financial expenses can continue to contribute positively, and it is the most important note in the 2026 report.
In 2026, see if it is announced that it has won the bid for the second FPSO assembly project - this is the 2026 target written in black and white in the announcement. Failure to get it is the most direct negative signal. In the 2026 annual report, see if the gross profit margin and revenue are separated as predicted, and whether financial expenses have turned from negative to positive. As for the dividend implementation node, see if it is really implemented no less than twice in 2026, and the dividend payout rate is no less than 55% - This is one of the few commitments in the document that can be reconciled item by item.
This article is based on public information and does not constitute investment advice.