After officially listing on the National Equities Exchange and Quotations of the new ‘Third Board’ in Beijing in late 2014, Suzhou Jinhong Gas Co. Ltd (Jinhong Gas) has released its first full year financial report.
The company declared total operating revenue for 2014 of RMB 517m ($83m approx.), an almost 17% increase from RMB 442.5m ($71m approx.) in 2014.
Gross profit in 2014 stood at RMB 55.4m (2013: RMB 73.5m) and net profit at RMB 46.5m (2013: RMB 61m). Net profit attributable to shareholders of the listed company (RMB 46.3m) fell just over 24% compared to 2013. However, when non-recurring gain and loss is omitted, net profit stood at RMB 41.4m, a 69% jump over 2013.
As Jinhong Gas explained in its official report, the drop in the net profit was attributable to the sale of equity in a subsidiary company in the Suzhou Industrial Park in 2013.
Breaking down the numbers, revenue from sales of air gases, synthetic gases, specialty gases, and from other operating revenue in 2014 was RMB 117.3m, RMB 219.7m, RMB 139.2m, and RMB 40.6m, respectively.
This meant that air gases, synthetic gases, and specialty gases accounted for 22.7%, 42.5%, and 26.9% of total operating revenue, respectively.
At the end of the reporting period, Jinhong Gas has no less than six wholly-owned subsidiary companies and is also the majority shareholder of a further two joint ventures.
Looking forward, the report states that the industrial gas industry will still undergo fast growth in 2015 and beyond – and expects the application sector of the gases business to develop in emerging and distributive gas use markets.
The emerging and distributive markets that are in the experimental stages in China include solid nitrogen, fuel cells, magnetic materials, superfine processing and cryogenic cracking, CNG vehicles, and hydrogen-powered vehicles.
Moreover, the company also projects that outsourcing of gas demand will also grow to 50%, up from 41% in 2007 and 45% in 2010.
Broad market expectations aside, Jinhong Gas has also outlined its aims going forward. The company aspires to establish ‘pure gold’ quality for its customers and will strive to become the number one domestic brand in the local market, based upon five key strategies: