Jinhong Gas has released its 2015 annual report, demonstrating a satisfactory growth that outperforms the growth of the China economy.
Total revenue increased by 7.28% from RMB 517m ($78.9m) in 2014 to RMB 554m ($84.5m) in 2015, while profit attributable to shareholders of the listed company also increased more than 15% from RMB 46.3m ($7m) in 2014 to RMB 53.4m ($8.1m) in 2015.
Air gases accounted for 21.3% of total income, with synthetic gases representing 42%, specialty gases 29.5% and other operations contributing 7.2%.
The contribution of specialty gases has shown a particular increase, with Jinhong noting that there is a general trend for specialty gases to be produced locally in order to avoid the long lead times of overseas supply (including two months of customs clearance and approval) and to take advantage of lower costs.
Commenting on the wider results as a whole, the company states that its sales revenue is five times that of the second-largest independent gas company in the region and, with no ‘obvious’ competition, it considers the international majors as its main competitors.
For 2016, Jinhong Gas plans to strengthen its team and enhance its commitment to technology innovation and R&D. The rising company states that it invested RMB 14.9m ($2.3m) in 2014 and RMB 14.6m ($2.2m) in R&D activities–2.9% and 2.6% of the operating revenue, respectively, in the corresponding financial year.
Looking further ahead, in view of the bias of revenue generation–of which 88.77% comes from the East China region–the company will take several measures to alleviate any associated risks. This will include putting more efforts into the market development of its products to give a higher coverage of the area, attaching more importance to R&D, innovation and the introduction of new technology, and achieving a higher market share outside the region.