Rapidly growing Chinese industrial gases company Yingde Gases Group has declared its financial results for the year ended 31st December 2013, with significant rises seen in both turnover and profit.

Group turnover in 2013 (RMB 6.866bn; $1.103bn) rose 38.5% over 2012, while profit attributable to equity shareholders of RMB 908m ($146m approx.) in 2013 represented an increase of 17.9% from 2012.

The increase in turnover is mainly attributable to the commencement of 16 on-site facilities during the year and the full ramp-up of facilities that commenced operation in 2012, as well as benefiting from the growth in merchant volume.

Gross profit increased by 35.5% from RMB 1.573bn for the year ended 31st December 2012 to RMB 2.131bn for the year ended 31st December 2013.

Stark rise

Principally engaged in the production and sales of industrial gases in the People’s Republic of China (PRC), the company was incorporated in the Cayman Islands in September 2007 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in October 2009.

Since then, the company has experienced a stark rise in prominence and performance. Despite entering the market during difficult economic times globally, Yingde Gases appears to have recorded year after year of growth. This momentum continued last year, as a company statement explained.

It read, “As the global economy was continued sluggish in 2012, China’s economy experienced two consecutive quarters of slowdown in the first half of 2013. Under a series of steady growth policy effect, there was a significant improvement in each economic indicator in third quarter in 2013 and GDP grew by 7.8%. In this steady economic environment, our group maintained strong development and signed a total of 14 new on-site gas supply contracts in 2013.”

As of 31st December 2013, Yingde Gases Group had a total of 57 facilities in operation and 28 facilities under development, with a total installed capacity amounting to 1,565,900 Nm3/hr in terms of installed oxygen capacity – an increase of 50.2% compared with the corresponding period last year.

During the year, the group sold 18,964 million Nm3 of industrial gases, representing a growth of 42.9% compared with 2012. The total sales volume of oxygen products, nitrogen products and argon products were 9,437 million Nm3, 8,211 million Nm3 and 183 million Nm3, respectively. The group expects its total installed capacity to exceed 2,000,000 Nm3/hr in 2016 when construction of all facilities under development will be completed.

Chinese currency

Onsite success

Yingde Gases is principally engaged in onsite gas supply, as well as providing on-site services such as design, construction, operation and maintenance of production facilities.

For the year ended 31st December 2013, the turnover of the group’s onsite gas supply business amounted to RMB 6.045bn, an increase of 38.7% compared with the corresponding period last year. Onsite gas supply therefore accounted for around 88% of group turnover, mainly contributed by customers in the steel, chemical and non-ferrous metals industries.

Looking ahead, Yingde Gases explains that more facilities will be put into operation to further expand its business coverage in 2014. In addition, the group will ‘continue to identify more quality customers and maintain its leading position in the industry by providing the best gas service to our customers’.