Guangdong Huate Gas Co. Ltd, listed in China’s National Equities Exchange and Quotations (NEEQ) index only in late February this year, has recently publicised its 2016 financial results.

Operating revenue dropped slightly in the year (4.67%) from RMB 687.1m ($99.6m) in 2015 to RMB 655m ($94.98m) in 2016, leading to a 24.8% decrease in net profit attributable to the shareholders of the listed company from RMB 50.9m ($7.4m) in 2015 to RMB 38.24m ($5.5m) in 2016.

Gross profit remained at 33.2% in 2016.

The decrease in net profit, as explained by the company, is largely because of the drop in operating revenue, whilst the decrease in operating cost, increase in costs of sales and management, decrease in financial cost, and net revenue from non-operating activities have balanced themselves.

When broken down into products, the company’s specialty gases business generated RMB 337.3m ($48.9m) in revenues, representing 51.5% of the total revenue – but also a drop of 11.75% from that in 2015 (RMB 382.2m; $55.4m).

Industrial gases contributed RMB 216.1m ($31.3m) to the revenue, 33% of the total revenue and an increase of 14.7% compared to that in 2015 (RMB 188.4m; $27.3m).

Revenue from the sale of equipment and engineering services was RMB 89.4m ($12.9m), representing 13.6% of total revenue and 15.4% less than that in 2015. Other businesses contributed RMB 6.08m ($0.88m), representing 0.93% of the total revenue.