China’s leading air separation plant (ASU) manufacturer and industrial gas company Hangzhou Hangyang Co. Ltd has announced its interim results for 2015 – and a welcome return to profitability.
While profit plummeted by more than 40% in 2014 (over 2013), net profit attributable to the shareholders of the listed company showed a substantial rebound of 33.5%
This saw net profit grow from RMB 45.9m (approx. $7.4m) in the first half of 2014 to RMB 69.3m ($11.1m) in the first six months of 2015.
What is considered more impressive, gasworld understands, is that after deducting the non-recurring loss and profit in the period, the increase in net profit attributable to the shareholders of the listed company is a remarkable 1,126%.
The operating revenue for the reporting period is RMB 2.9bn ($471.4m), an increase of 12.4% compared to RMB 2.6bn ($419.2m) in the same period in 2014.
Looking into the company’s two core businesses, the revenue from equipment manufacturing is RMB 1.3bn ($216.3m), whereas the revenue from gas sales is RMB 1.5bn ($246m). Production of ASUs contributed RMB 1.1bn ($182.6m) to the equipment manufacturing business.
These figures potentially mark a significant juncture in the company’s business – it is the first time that revenue from gas sales has exceeded that from equipment manufacturing. This situation has brought far-reaching significance to the company, its official report noted.
Meanwhile, from a geographic perspective, revenue from the domestic market has increased 10.6% while revenue from overseas markets has shown a remarkable 231.7% growth.
Despite the interim results and a return to profitability, the management board of Hangyang gave conservative comments about the situation. “During the reporting period, the domestic macroeconomic situation still has been very grim, the industries closely related to the company’s business, namely steel, chemical and other industries are facing tremendous business pressures, whereas the development of the coal chemical industry is highly uncertain, causing the overall domestic air separation equipment market demand to continue to go downward, and market competition is fierce,” a statement read.
“For the gas business, due to the downturn of the downstream industries, the demand for industrial gas is also not optimistic, and the users’ own operating difficulties also give the company gas project operations increased difficulties.”