Guangdong Huate Gas Co. Ltd (Huate Gas), one of the biggest domestic industrial gas companies in China, is now listed in the National Equities Exchange and Quotations (NEEQ) system, also known as the New Third Board.
As a result, the company became open for public exchange from 22nd February.
It also disclosed its recent financials as part of the listing, revealing income for year 2014, year 2015, and first half of year 2016 as being RMB 610m ($88.4m), RMB 687m ($99.6m), and RMB 320m ($46.4m), respectively.
The corresponding net profits were RMB 48.4m ($7m), RMB 50.89m ($7.4m), and RMB 18.94m ($2.8m), respectively.
First established in 1993 as Southern China Specialty Gases Research Centre and based in Foshan city of Southern China’s Guangdong province, Huate Gas now has more than 10 branches and joint stock companies in different parts of China.
The company is engaged in the manufacturing, processing, and sales and trading of industrial gases, medical gases, and specialty gases, together with engineering services and sales of equipment. With over 200 types of products, it has exported its products to more than 47 countries worldwide.
The company pointed out in its ‘Public Exchange Document’ that there are up to 15 risk factors in its business, including external factors such as fluctuations in macroeconomic conditions, market competition, termination of tax benefits offered by local government, and fluctuation in currency exchange. In terms of internal risk factors, the company has listed management risks, production safety, loss of core technical talent, the concentration of its sales region (southern China accounts for around 50% of total sales), credit control, stock control, and fixed assets management as areas of risk.
Looking ahead to the next two years, Huate Gas stated that it will continue to focus on the gas and equipment and electronic materials business. In addition, the company will fully utilise its strength in technical development, product innovation, popularity of the brand, and the customer resources of its specialty gas division, while the sales and distribution networks established will continue to attract talent, more efforts will be put into research and development (R&D), quality assurance will be improved, and the development platform of the company will be consolidated.
Huate Gas also explained that it did in fact intend to be listed in the main board and applied for an IPO Counselling Record in March 2016. However, due to the company strategy and unsatisfactory progress, the procedure was terminated in December 2016.