Four of China’s industrial gas companies listed in the stock market have released their results for the first half of 2017 - and their increased profits may reflect a positive trend of the industry.

Suzhou Jinhong Gas

As one of the largest domestic industrial gas companies in China, Suzhou Jinhong Gas reports a total revenue of RMB 394.57m ($59.98m), a 30% increase in for the first half of 2017, compared with RMB 302.79m ($46.02m) of the corresponding period in 2016. Although the gross profit of the report period has dropped marginally by 2% to 39%, the net profit has increased substantially by 94% to RMB 27.18m ($4.131m). Net profit attributable to shareholders has even increased by 111% from RMB 12.80m ($1.95m) in the first half in 2016 to RMB 27.06m ($4.11m) in the first half of 2017.

Of the operating revenue, bulk gas business accounts for RMB 141.27m ($21.47m) and specialty gases business RMB 143.80m ($21.86m), whereas clean energy accounts for RMB 73.38m ($11.15m).

The management explains the total revenue and profit have increased because they have achieved excellent results in expanding their sales channels for bulk gases, specialty gases and clean energy. The revenue of these three businesses has respectively increased by RMB 38.70m ($5.88m), RMB 20.45m ($3.11m) and RMB 18.73m ($2.85m).

Guangdong Huate Gases

Listed in the National Equities Exchange and Quotations (NEEQ) early in February this year, Guangdong Huate Gases has also announced a profitable period for the first half of 2017. Total revenue for the report period increased 8.5% to RMB 347.74m ($52.86m) from RMB 320.49m ($48.71m) for the same period in 2016. Net profit has also increased 26.2% to RMB 23.92m ($3.63m) from RMB 18.94m ($2.88m) for the same period last year.

Breaking down into business sectors, ordinary gases business, specialty gases, and gas equipment and engineering contributes respectively RMB 110.79m ($16.84m), RMB 167.31m ($25.43m), and RMB 64.39m ($9.79m) to the total revenue. In which ordinary gases business has increased by RMB 2.34m ($0.36m), specialty gases by RMB 1.83 ($0.28m), and gas equipment and engineering by RMB 25.85 million ($3.93m).

The company explains that, within the report period, they have been continuously standardising and refining the management, cutting the costs, and improving the efficiency, so that all the work has been enhanced and the operating status is much better than the same period last year.

Kaimeite Gases

Hunan Kaimeite Gases reports in its 2017 interim report that the total revenue for the first half of 2017 is RMB 176.30m ($26.80m), representing 49.8% more than that for the first half of 2016. Operating profit has risen by an impressive 1152.1% to RMB 13.02m ($1.98m), whereas net profit attributable to shareholders of the listed company has also jumped 145.7%, from RMB 5.37 million ($0.82 million) in the first half of 2016 to RMB 13.21 million ($2m) in the first half of 2017.

The company started its business with the purification and liquefaction of the carbon dioxide (CO2) in waste gases from petrochemical plants, and now has a total annual production of 440,000 tonnes of liquid CO2 from its five production sites, the largest of its kind in China. Sales of liquid CO2 accounts for 42.2% of its operating revenue. The report also reveals the company is actively increasing its efforts in the business of other gases: the sales of oxygen (O2) and nitrogen (N2) has increased 960% to RMB 6.51m ($0.99m) and the sales of argon (Ar) has also increased 73.89% to RMB 5.70m ($0.87m).

Henan Xinlianxin Shenleng

Another industrial gas company trading in the NEEQ, Henan Xinlianxin Shenleng Energy, who focuses mainly on the production, sales and distribution of liquid CO2, reports a 75.05% increase in the total revenue, giving RMB 63.21m ($ 9.61m). Net profit also increases by 34.7% to RMB 5.99m ($0.91m).