After four consecutive quarters in red, ending up with a total drastic loss of RMB 282m ($42.86m) in 2016, the interim report of 2017 for Hangzhou Hangyang gives a net profit of RMB 98.33m ($14.95m) to shareholders.
This demonstrates a rebound of 275.3% for the group from a loss of RMB 56.11m ($8.53m) for the first half of 2016. Hangyang, the largest air separation equipment manufacturer in China, earned a total of RMB 2,914.52m ($443m) in the first half of 2017, representing an increase of 32.5% from RMB 2,119.50m ($322.16m) in the first half of 2016.
Manufacturing and supply of air separation equipment contributes RMB 878.85m ($133.59m) to the total revenue, an increase of 108.9% compared with the same period in 2016, and also represents 30.2% of the total revenue. On the other hand, sales of industrial gases contribute RMB 1,801.72m ($273.86m), an increase of 22.6% from the same period in 2016 and represents 61.8% of the total revenue.
The group explains the metallurgy industry and the chemical industry have signs of recovery, therefore the demand of the air separation equipment market has substantially increased compared with the market in 2015. They make use of the opportunity to sign equipment contracts in 2016 and the total contract sum reached RMB 2588m ($393.38m), therefore setting a good foundation for the equipment business in 2017.
Within the report period, they have received the order of four sets of 50000 Nm3/h ASUs from Fengnan Steel, four sets of 83000 Nm3/h ASUs from Zhejiang Petrochemicals, and one set of 72000 Nm3/h ASU from Jiangsu Haili Chemicals. The total contract sum for equipment supply amounts to RMB 1486m ($225.87m).
Suzhou Oxygen Plant Co Ltd
The interim report of Suzhou Oxygen, on the contrary, gives negative results. Their total revenue has declined by 9.9% from RMB 163.08m ($24.79m) in the first half of 2016 to RMB 146.97m ($22.34m). Net profit attributable to the shareholders of the listed company dropped drastically by 91.3% to RMB 0.604m ($91,808m) from RMB 6.90m ($1.05m) in the same period in 2016.
Chengdu Shenleng Liquefaction Plant
As reported, the total revenue in the first half of 2017 has declined 24.2% to RMB 126.23m ($19.19m), compared with RMB 166.45m ($25.3m) in the same period in 2016. Net profit attributable to the shareholders of the listed company has plunged 73.9% from RMB 28.44m ($4.32m) in the first half of 2016 to RMB 7.42m ($1.13m).