Suzhou Jinhong Gas Co. Ltd has revealed its interim results for first-half 2015, with both gross revenue and net profit attributable to shareholders experiencing marginal increases.
Based in Jiangsu province, China, Jinhong Gas is one of the largest domestic industrial gas companies in East China and has been steadily growing in recent years.
This culminated in the company listing on the national equities exchange in China in December as the company sought to continue to further its development.
This steady progression appears on track in the company’s latest results. Gross revenue for the period ending 30th June 2015 increased 4.3% to RMB 250.6m ($40m approx.) compared to the same period last year (2014: RMB 240.3m), while net profit attributable to the shareholders of the listed company also increased 2.3% compared to the same period last year, to RMB 20.5m ($3.3m).
Total assets increased 11.99% to RMB 83.58m ($13.4m).
Amidst the slowdown in the growth of the Chinese economy, Jinhong Gas has established three new subsidiaries, one of which is a fuel gas company – highlighting the company’s plan to expand its focus to the fuel gas business in the future. In its interim report, Jinhong Gas notes that a CNG filling station is already in progress.
While growth has been healthy in recent yeas, the company also acknowledges in the report that it is subject to risks arising from the fluctuation in macroeconomics, market competition, the concentration of its sales region, safe production, and changes in the beneficial policy of income tax.
To address these risks, the Jinhong Gas has put forward numerous counter measures, including putting more effort into market development, R&D and the introduction of new technology.
The company’s strategy going forward also seeks optimise and improve its existing business model to achieve high market share outside the East China region.