With turnover up and a healthy financial position maintained, Yingde Gases Group Company Limited this week posted its interim results for the six months ended 30th June 2012.

During the reporting period, turnover of the group was RMB 2.380m, representing a 15.5% increase when compared with RMB 2.060m for the same period in 2011. Profit attributable to equity shareholders of the group was RMB 392m, while earnings per share were RMB 0.217.

During the reporting period, the group remained strong in its financial position, with abundant working capital; cash at bank and in hand was RMB 994m.

Reviewing its 2012 interim results, the company said in a statement, “Due to the prolonged impact of the global recession in 2011, China’s economic growth further slowed down in the first half of 2012. As a leading industrial gas enterprise and one of the major gas suppliers for a number of steelmakers in the PRC [People’s Republic of China], the major business of Yingde Gas was also affected to some extent.”

“However, the group has secured six new onsite gas supply contracts in the first half of 2012 despite such circumstances, which will lay a solid foundation for the future development of the group.”

According to the same statement, the group has a total of 39 gas supply facilities in operation and a total installed oxygen capacity of 990,400Nm3/hr as of 30th June 2012, up 26% compared with the same period last year. A further 27 facilities are understood to be under development.

It is expected that the total installed capacity will exceed 1,700,000 Nm3/hr by 2015, upon completion of all facilities under development.

In terms of other notable points from the results, Yingde Gases cited the ‘prolonged downturn’ of the manufacturing sector and ‘shrinking demand’ from downstream industries as partly responsible for a 23% decrease in turnover from merchant gas operations, while a 30% decrease in sales of oxygen was largely attributed to the downturn in the steel processing industry.

Looking forward, the company remarked, “Despite the dampened industrial gas market in the weakening global economy and the slowdown of China’s economic growth in 2012, particularly with the unstable performance in the retail market, the group is still confident with the market situation in the second half of this year.”

“The group will closely monitor the market and identify more high potential customers. While maintaining the onsite gas supply business, the group will be more aggressive in securing customers in the retail market so as to generate greater returns to the shareholders.”