Yingde Gases

The largest independent on-site gas supplier in China has announced its total revenue in 2018 was more than RMB 12.8bn ($1.9bn), 25.4% more than in 2017. EBIDTA was RMB 4.48bn ($679m), a growth of 35.3% over 2017. Net profit recorded RMB 1.2bn ($186m), 67.3% more than in 2017.

As of 31st December (2018), the group had 82 production units operating and 17 under construction, with a total installed capacity of 2,391,000 Nm3/h, a 12.3% increase over 2017. When all projects under construction now are finished by 2020, the total installed capacity will be more than 2,600,000 Nm3/h.

Revenue from on-site gas supply in 2018 was RMB 9.26bn ($1.4bn), an increase of 12.3% and accounting for 72.1% of the total revenue whilst the bulk liquid sales was RMB 2.6bn ($400m), an increase of 32.7% and accounting for 20.6% of the total revenue.

Suzhou Jinhong Gas

Suzhou Jinhong Gas’ annual report revealed the total revenue of the company has grown 19.7% year-on-year to RMB 1bn ($162.2m). The operating profit has increased by 121.2% to RMB 165.6m ($25.1m) With gross profit increased slightly from 39.4% in 2017 to 44.4% in 2018, the net profit jumped 137.6% to RMB 139m ($21m).

The management said the increase in operating profit and net profit is mainly because the company has optimised the product structure, aggressively developed the market, increased the market share, as well as enhanced the quality control and internal management; moreover, the innovation in technology and the customer service quality have also been improved so that the earning power has strengthened rapidly, thus giving the satisfactory performance.

The company states in the report that the sales revenue of industrial gases business in China in 2017 was about RMB 120bn ($18.2bn) and the China industrial gas business still had much room for market development. Jinhong Gas thinks the domestic gas enterprises are relatively small in scale, and their range of products is narrow and will have bottleneck in their development because they are restricted by the equipment, technology, capital, and logistics. With such a background, the domestic gas enterprises must integrate the resources of the industry to compete with overseas companies. As the variety and complexity required by the gas business are getting larger, together with higher specialty, some of the domestic gas enterprises will enhance their competitive power by merger and acquisition to get more market share.

In 2019, Jinhong Gas will strive to realise a fast growth of its main business, enhance its brand advantage, strengthen the build-up of their talents, increase the investment in technology innovation and scientific research, and optimise the product structure. It will also development its business in other regions, integrate the gas market, explore its sales network, increase its market share.

Hunan Kaimeite Gases

Total revenue of Hunan Kaimeite Gases in 2018 is approx. RMB 504.6m ($76.5m), increased by 17.8% over 2017. Gross profit of RMB 106.7m ($16.2m) is 65.4% more than in 2017. Net profit in 2018 is RMB 97m ($14.7m), an impressive 79.2% jump compared with that in 2017. 

Liquid carbon dioxide (LCO2) is still its major product. The revenue generated from LCO2 accounts for 37.3% of the total revenue whilst hydrogen business generated 22.2%. The revenue from its nitrogen and oxygen business has the highest growth of 185.5% and the highest increase in gross profit ratio.

It is evident from the report that the company is planning to diversify its products, especially venturing into specialty gases, to become a comprehensive industrial gas company, although it started mainly as a carbon dioxide recovery and purification company. Its 11 subsidiaries in five different provinces in China also indicates that it is becoming a nationwide company.

Henan Xinlianxin Shenleng Energy

The company reported a stunning 177.3% increase in its total revenue in 2018 compared with 2017, giving RMB 752.1m ($114m). Operating profit increased 106% to RMB 35.2m ($5.3m) whilst the net profit also increased 93% to RMB 32.4m ($4.9m), compared with 2017.

The management explains the substantial increase in total revenue is mainly because they have expanded the business of dimethyl ether and oxygen. They said the increase in profits is because the prices of natural gas and liquid products of the company have been raised and the major restructuring of assets of the company is showing the benefits.

Guangdong Huate Gas

The company’s total revenue in 2018 was RMB 817.5m ($123.9m), a marginal 3.9% increase from 2017 whilst net profit was RMB 67.9m ($10.3m), a satisfactory increase of 40.3%.