Encouraging performances have been reported across the Chinese industrial gas and equipment community, with the recent fiscal releases of various companies.
On the industrial gas side, positive results were announced by Suzhou Jinhong Gas, Hunan Kaimeite Gases, and Henan Xinlianxin Shenleng Energy while on the equipment and technology side there were strong results for Hangzhou Hangyang, Suzhou Oxygen Plant Co. Ltd, and Zhangjiagang Furui Special Equipment Co. Ltd, among others.
Suzhou Jinhong Gas
The leading industrial gas company in the East China region, Suzhou Jinhong Gas recently released its interim results for 2019 and announced gross operating revenue in the first half of 2019 of RMB 545.6m ($77.7m), an increase of 8.39% compared with the same period in 2018.
Operating profit stood at RMB 93.25m ($13.28m), while gross profit and net profit, respectively, were RMB 93.3m ($13.3m) and RMB 77.3m ($11m), increases of 18% and 20.5% compared with the same period last year, respectively.
Net profit attributable to shareholders was RMB 75.5m ($10.75m), an increase of almost 17%.
Breaking down into different types of products, bulk gases contributed around RMB 214m ($30.47m) to the gross operating revenue, whilst the specialty gases and natural gas businesses contributed RMB 216m ($30.7) and RMB 66m ($9.41m), respectively.
Suzhou Jinhong Gas has several projects in progress, including a nitrous oxide recovery project, a filling station in Zhangjiagang, a high purity electronic grade nitrous oxide project, a Kunshan carbon dioxide project, and a VPSA oxygen generation project.
Hunan Kaimeite Gases Co. Ltd
The Hunan gas company has reported in its interim report that its gross operating revenue for the first six months of 2019 was 3.57% more than the same period in 2018, therefore totalling RMB 247.9m ($35.3m).
Operating profit for the period was RMB 64.27m (just over $9m), 21.5% more than in the same period in 2018. Gross profit and net profit were RMB 63.6m ($9m) and RMB 55.3m ($7.9m), respectively – around 19.7% and 21.2% higher than in the same period in 2018. Net profit attributable to shareholders was RMB 53.1m ($7.6m), up 22.5%.
The company is understood to be working on several areas, including the development and of purification technology for ultra high purity (UHP) carbon dioxide, comprehensive analysis systems for carbon dioxide and other industrial gases, research and production of rare gas products, and the research and production of electronic high purity specialty gases.
Henan Xinlianxin Shenleng Energy Co., Ltd
The operating revenue of Xinlianxin Shenleng Energy in the first half of 2019 was RMB 322.3m ($45.9m), 11.2% more than in the same period of 2018. Operating profit also rose marginally to RMB 19.4m ($2.8m), while net profit increased 20.8% to RMB 19.8m ($2.8m).
Net profit attributable to shareholders was 25% more than in the same period of 2018.
The company has several ongoing development projects, including an air separation plant project, an expansion project of carbon monoxide project, and an electronic-grade carbon dioxide project.
Henan Silane Technology Development Co Ltd
An electronic specialty gas company, Henan Silane Technology announced that its gross operating revenue for the first half of 2019 was RMB 210m ($29.9m), a jump of 220.6% compared with the same period in 2018.
Operating profit increased by 386% to RMB 11.8m ($1.7m), while gross profit and net profit for the period were RMB 12.3m ($1.7m) and RMB 9.4m ($1.3m), respectively.
The company now has two silane production lines with a total capacity of 2,600 tonnes per year, and bought a hydrogen production line using coke oven gas as the raw material toward the close of 2018 and promptly started the sale of hydrogen in 2019.
In terms of equipment and technology providers, the largest Chinese air separation plant manufacturer, Hangzhou Hangyang, stated in its interim report for first half 2019 that gross operating revenue had increased 10.8% to just over RMB 4bn ($580m).
Revenue from the gases business accounted for RMB 2.2bn ($320m) and the equipment business for RMB 1.6bn ($235.8m), respectively.
Operating profit, gross profit, and net profit were RMB 515m ($73.4m), RMB 515m ($73.4m), and RMB 419.8m ($59.8m), respectively. Net profit attributable to shareholders increased by 18% compared with the corresponding period in 2018, to RMB 399m ($56.8m).
Within the reporting period, the company signed contracts for air separation plants (ASUs) and petrochemical process plants with a total contract value of around RMB 2.9bn ($417.4m), including four sets of 100,000 Nm3/h ASUs for Zhejiang Petrochemicals, a 75,000 Nm3/h ASU for China Coal, and an 80,000 Nm3/h ASU for Henan Xinlianxin.
Ongoing projects include a 65,000 Nm3/h ASU in Shanxi, a 30,000 Nm3/h ASU in Henan, a 20,000 Nm3/h ASU for Pinggang, and two 80,000 Nm3/h ASUs in Jiangxi, the progress of all of which is said to be on track and commissioned to schedule.
Hangyang’s first ASU specially developed for the electronics industry was successfully supplied to Daesung Gas in Guangzhou in May, with a capacity of 30,000 Nm3/h of pure nitrogen.
The gross operating revenue of Suzhou Oxygen for the first half of 2019 was RMB 295.9m ($42.1m), a marginal 2.2% increase over the same period in 2018.
Operating profit for the period was approx. RMB 16.2m ($2.3m), 22.5% higher than in the same period last year, whilst the gross profit and net profit were RMB 16.5m ($2.3m) and RMB 13.1m ($1.8m), respectively.
The company stated in its report that it had signed four projects for the export of gas equipment in the period, with Messer in Germany. Moreover, its largest ASU that it has exported, with a capacity of 40,000 Nm3/h, has been successfully commissioned in Vietnam recently.
The gross operating revenue of Chengdu Shenleng Liquefaction Plant Co. Ltd increased 72.6% in first half 2019 to RMB 195m ($27.8m). However, operating profit fell nearly 55% to RMB 3.7m ($530,000).
The company stated in its report that, within the reporting period, it had signed contracts with a total value of RMB 425m ($60.5m), mainly for natural gas liquefaction plants, total liquid ASUs, and refilling plants. Major contracts include a 400,000 tonnes per annum (tpa) LNG processing plant for a Shaanxi company, a 300,000 tpa LNG project for a Shanxi company, a 6,000 Nm3/h total liquid ASU for a company in Hebei province, and also a 6,000 Nm3/h total liquid ASU for a company in Henan province.
For Hangzhou Zhongtai Cryogenic Technology Corporation, gross operating revenue of RMB 282m ($40.2m) in the first half of 2019 increased almost 10%. Operating profit also increased by 10% to RMB 45m ($6.4m), whilst net profit rose 5.8% to RMB 40.6m ($5.8m). The company pointed out that demand from the coal chemistry, petrochemicals, natural gas, and electronics sectors in the first half of the year had been consistently strong.
Gas storage and transportation equipment company Beijing Jingcheng Machinery Electric Co. Ltd announced total operating revenue of RMB 595.1m ($84.8m) for the first half of 2019, an increase of 25.3% over the same period in 2018. Compared to last year, operating loss had worsened by almost 17% (RMB 47.5m; $6.7m), total loss has risen by 22% (RMB 47m; $6.7m), and net loss had increased by almost 18% (RMB 48.5m; $6.9m).
The company explained that, “Under the influence of various adverse factors, such as the persistent pressure of the economic downturn, the fluctuation of the natural gas market and over-capacity, the workload of the gas storage and transportation industry has also been fluctuating. During the first half of 2019, affected by China-US trade war, export markets faced significant risks of uncertainty…”
No such uncertainty affected Zhangjiagang Furui Special Equipment Co. Ltd in the same period, with the major Chinese LNG equipment company turning a loss to a profit in first half 2019. Its gross operating revenue rose 53% to RMB 832.5m ($118.6m) over the same period in 2018, while operating profit increased 125.5% to RMB 5m ($720,000) and gross profit increased 115% to RMB 2.3m ($330,000). The company explained that the business returned to profit with the improving end-user market for LNG equipment; market demand for the company’s main products (LNG cylinders and equipment for LNG liquefaction) was strong.