Yingde Gases Group has revealed another solid year of growth, declaring its final group financial results for the year ended 31st December 2011.
Group turnover rose 41% over its 2010 level to RMB 4.240bn, while profit attributable to equity shareholders of the company in 2011 was RMB 831m, an increase of 44.0% from 2010.
Yingde Gases notes that the group’s turnover consists of proceeds from the sale of industrial gas products and the increase in this turnover in 2011 is largely attributable to its Inner Mongolia project which commenced operation in the fourth quarter of 2010 operating in full in 2011, and eight other new production facilities that commenced operation in 2011.
Capital expenditure, which principally comprises expenditures for the construction of new production facilities and purchase of property, plant and equipment, totalled RMB 2.178bn in 2011 (2010: RMB 1.930bn).
As a company principally engaged in onsite gas supply, Yingde Gases can be pleased to reflect on a total of 36 gas supply facilities in operation and 23 gas production facilities under development as of 31st December (2011).
“After years of continued development and with our professional management, we currently possess a stable and quality customer base and have an established professional reputation in the industrial gas industry”
Yingde Gases Group statement
Onsite gas supply operations generated approximately 82.3% of total group revenue from operations.
“After years of continued development and with our professional management, we currently possess a stable and quality customer base and have an established professional reputation in the industrial gas industry,” a statement read.
Total installed onsite capacity amounted to 940,400 Nm3/hr in terms of installed oxygen capacity, representing a year-on-year growth of 35.7%. During the period under review, the group sold 10,253 million Nm3 of industrial gas in aggregate, representing a year-on-year growth of 51.5%.
The total sales volume of oxygen products, nitrogen products and argon products was 5,515 million Nm3, 4,194 million Nm3 and 106 million Nm3, respectively.
Yingde Gases expects that the total installed capacity will exceed 1,600,000 Nm3/hr in 2014, upon completion of all production facilities currently under development.
As of 31st December 2011, the company had signed a number of new long-term onsite gas supply contracts throughout China, serving the steel, non-ferrous metals, glass and heavy equipment industries.
In terms of group highlights, Yingde Gases explains that the global economic performance was ‘volatile’ in 2011 and despite the ‘unfavourable’ market conditions, total revenue for the year maintained steady growth.
The company also notes that the challenges faced by the iron and steel market in the People’s Republic of China (PRC) have not imposed significant impact on the existing businesses of the group. The group became the largest independent on-site gas supplier in the PRC since 2009, it claims.
Looking ahead, Yingde Gases expects more production facilities will commence operation andits existing network will further expand in 2012.
In addition, the group will further enhance business transparency and strengthen risk management.