Kaimeite Gases Co., one of the largest carbon dioxide (CO2) producers in China, has announced its financial results for 2016 and a stark jump (77%) in operating revenue from RMB 151.8m ($22m) in 2015 to RMB 270m ($39.1m) in 2016.

The company also turned around a gross profit loss of RMB 51.9m ($7.5m) in 2015 to a profit of RMB 24.3m ($3.5m) – a leap of 149.3%.

Net profit was also transformed last year, from a loss of RMB 45.5m ($6.6m) to a profit of just over RMB 21m ($3m), a rise of just over 14%.

Income from the CO2 business grew to RMB 160.1m ($23.2m), accounting for 59.3% of the company’s operating revenue and 11% more than that in 2015 (RMB 144.2m; $20.9m). The increased production and sales volumes of CO2 from its main factory, its Anqing branch and Huizhou branch was cited as one of three key reasons for the company’s turnaround in fortunes in 2016; macro-economic and operational factors were the other two core factors at play.

Bright signs

The encouraging results from China’s CO2 business were also seen by other stakeholders in the industry. Henan Keyi Gas announced in its annual report that revenue had grown from RMB 78.2m ($11.3m) in 2015 to RMB 126.9m ($18.4m) in 2016, a substantial increase of 62.3%, while net profit attributable to shareholders of the listed company also rose from RMB 6.4m ($920,000) in 2015 to RMB 9.8m ($1.4m) in 2016.

Meanwhile for Lanzhou Yulong Gas, a local player that boasts five sets of recovery, purification and liquefaction plants for CO2 with a total annual capacity of 220,000 tonnes, the company experienced a stunning leap in net profit attributable to shareholders of 823.2%, from RMB 0.59m in 2015 to RMB 5.4m in 2016. Revenue had grown 12.6% from RMB 62.6m in 2015 to RMB 70.5m in 2016.

At least one player in the country’s CO2 business did not have such a favourable year, however, with Henan Xinlianxin Shenleng Energy Co. Ltd revealing a 19.2% drop in revenue in 2016, from RMB 117.7m ($17m) in 2015 to RMB 95.1m ($13.8m) last year.

The CO2 business represents more than 75% of the company’s revenue, and net profit attributable to shareholders of the listed company dropped 31.3% from just over RMB 16.9m ($2.5m) to RMB 11.7m ($1.7m).