Following the closing down of many steel mills and other redundant production, the annual reports of industrial gas companies are showing a growth trend again, suggesting the economy of China has stabilised.

Suzhou Jinhong Gas

The domestic industrial gas company has published that their annual turnover in 2017 is 36.5% more than that in 2016, giving RMB 893.5m ($142m) (2016: RMB 654.5m, $104.06m). Net profit attributed to shareholders has jumped 76.2% to RMB 58.5m($9.3m) (2016: RMB 33.18m, $5.3m).

The company states that the improvement in performance is due to the overall industrial gas market is on the rise and the demand for industrial gases has increased; internally, active market development leading to higher market share, more efforts in research and development in new products, optimisation of product structure, and also internal control and management have contributed to the performance.

During the report period, the company has established three new wholly owned companies, including one in Singapore.

Bulk gas business accounts for 36.3% of the operating income, whilst specialty gases and natural gas account for 36.6% and 18.4% respectively.

For 2018, the company will continue the strategy of lateral and longitudinal development. The company has applied to change to be listed in the A-shares stock market in the Shanghai Stock Exchange last December.

Hunan Kaimeite Gases Co Ltd

Originally established to recover carbon dioxide from waste gases of petrochemical plants and has now ventured into more gases, Kaimeite Gases gives a profitable report of 2017.

Their operating revenue in 2017 has grown 58.6% from 2016 to give RMB 428.3m ($68.1m) and the profit attributable to shareholders has also jumped 146.01% to RMB 51.9m ($8.3m).

The company stated in the report that the production capacity of their high purity and food grade liquid carbon dioxide (CO2) is now 410,000 tonnes a year. The CO2 business accounts for 40.2% of their gross revenue in 2017.

The company also revealed that they are working on the research and development of CO2 technologies, from capture and storage to applications. They would also cooperate with the International Center of Carbon Capture and Storage (iCCS) of the Hunan University.

In addition, they also have continuous research on rare gases, isotopes and electronic specialty gases.

Henan Xinlianxin Shenleng Energy Co Ltd

Another company that originally focused on CO2 business, Xinlianxin reports a 185.1% increase in their operating revenue from 2016, giving RMB 271.2m ($43.1m) in 2017. Operating profit in 2017 is RMB 17.07m ($2.7m), a 111% increase year-on-year. Net profit attributable to shareholders has increased 48.8% to RMB 17.3m ($2.8m).

The company explains that sharp increase in revenue is because they have started business in trading of dimethyl ether. Revenue from fuel gases business contributes RMB 160.8m ($25.6m) to the operating revenue, accounting for 63.9% and is a remarkable 866% increase.

Yingde Gases

Although not listed in the Hong Kong Stock Exchange any more, Yingde Gases has published voluntarily their annual performance in 2017.

Gross revenue in 2017 is RMB 10.24bn ($1.6bn), a growth of 21.8% from 2016. Net profit in 2017 is RMB 735m ($116.9m) whilst in 2016 they recorded a loss of RMB 148m ($23.5m), therefore, a 496.6% increase.

They now have 71 production sites in operation and a total installed capacity of 2,129,900 Nm3/h. 14 are under construction. When all are completed by 2020, the total installed capacity will reach 2.4 million Nm3/h.

On site business generated RMB 8165m ($1298m), a 16.3% increase year-on-year and accounting for 79.8% of the operating revenue.

Others

Two other smaller listed companies, namely Yantai Mingju Gas Co Ltd and Henan Keyi Gas Co Ltd, both reported increase in operating revenue, but decrease in net profit attributable to shareholders.