Four of China’s industrial gas companies have released their results for the first half of 2018.

Suzhou Jinhong Gas

Suzhou Jinhong Gas reported total revenue of RMB 503.4m ($74.4m), an increase of 27.6% from the same period in 2017.

Operating profit demonstrates a satisfactory increase of 136.5% to RMB 79.3m ($11.7m). Net profit jumped 135.9% from RMB 27.2m ($4m) for the first half of 2017 to RMB 64.1m ($9.5m).

The company explains the increase is due to the raise in unit price of the gas products and the ability to negotiate price has improved. Moreover, the gas demands from the various downstream industries, such as photovoltaic, LED, metallurgy, and manufacturing, have increased.

Kaimeite Gases

Hunan Kaimeite Gases Co Ltd reported total revenue has increased 35.8% to RMB 239.3m ($35.4m), compared with the same period in 2017. Operating profit has soared 241.2% to RMB 52.9m ($7.8m) during the report period whilst the net profit has also gone up an astounding 230% to RMB 45.7m ($6.8m).

Kaimeite said the increase in revenue and profit is due to the board of directors and management implementing the business plan, continuing to make use of the scale of production and quality assurance, actively responding to the market environment, promoting the environmental business with deep ploughing, continuing to increase the market sales efforts, and enhancing the management and control of safe production.

Consequently, the sales volume in the six months has vastly increased by more than 32,000 tonnes of products only by three of its subsidiaries.

The company plans to build a CO2 plant with production capacity of 100,000 tonnes per annum in Quanzhou of Fujian province. The plant will be installed near the EOEG plant of Fujian Refining & Petrochemical Co Ltd (FREP) in the Quangang Chemical Industry Zone and will receive waste gas from the EOEG plant for the recovery and purification of CO2. The investment of the project is estimated at RMB 98.3m ($14.5m) and it is expected the project will take one year to complete.

Henan Xinlianxin Shenleng Energy Co Ltd

Xinlianxin Shenleng Energy reported the operating income of the company for the first six months is RMB 289.8m ($42.8m), an increase of 358.5% over the same period last year. Operating profit is RMB 18.2m ($2.7m), representing a 201% increase over the same period last year.

The company said the operating income has increased significantly because it has developed new businesses of dimethyl ether and oxygen. Profit has also increased substantially because the selling prices of natural gas and liquid products have gone up, the negotiation capability has improved, and the major asset reorganisation (acquisition of an air separation project in Xinjiang) has brought more profit to the company.

Since the price of LNG has increased significantly and remain stable, the market of specialty gases products of the company has also grown, the income from the CO2 business has lowered to less than 20% of the overall income. Therefore, the risk of having single product and concentrated market has been removed. 

Xi’an Shaangu Power

Xi’an Shaangu Power gave mixed results for the first half of 2018. Six of the 10 companies reported net profit while the others were in red. The overall net profit of their gas business for the first six months of 2018 is RMB 64.6m ($9.5m). At present, they have six ASU projects under construction.

Smaller gas companies

The total turnover of Henan Keyi Gas is RMB 46.7m ($6.9m), which is 39.7% less than the same period in 2017 and the net profit has also dropped 53.5% to RMB 2.1m ($0.3m). The company will have an ASU put into operation in the second half of 2018 and will produce 52,000 tonnes of liquid oxygen, 18,000 tonnes of liquid nitrogen, and 2000 tonnes of liquid argon per year.

Yantai Mingju Gas reported an increase of 32.5% of their operating income compared to the same period in 2017, resulting in RMB 24.07m ($3.6m). Net profit for the report period is RMB 3.1m ($0.5m), an increase of 65.9% from that in the corresponding period of 2017. The company plans to produce 150,000 tonnes of CO2 a year by recovering and purifying the waste gas from Yantai Wanhua Chemical Group.

Lanzhou Yulong Gas reported their operating income has increased 31.6% from RMB 42.8m to RMB 56.3m ($8.3m). Operating profit has jumped 125.7% from nearly RMB 0.5m ($0.07m) in the same period in 2017 to RMB 1.08m ($0.16m). Net profit has also increased by 85.8% to RMB 2m ($0.3m).

Shenzhen Gaofa Gases also presented satisfactory results, achieving a 70% increase in the operating revenue compared with the same period last year, resulting RMB 33.4m ($4.9m). Operating profit for the report period is RMB 3.8m ($0.6m), an increase of 96.4% from the same period last year while the net profit of RMB 4.2m ($0.6m) represents an increase of 122.8% from the same period last year.