Yingde Gases Group Company Limited has announced the interim results of the group for the six months ended 30th June 2011, with a statement revealing that turnover of the group rose 56.5% compared with the same period in 2010.
Profit attributable to equity shareholders of the group was RMB 492m, representing an increase of 51.1%. Earnings per share were RMB 0.272.
During the reporting period, the group remained strong in its financial position with what it described as ‘abundant working capital’. “The cash at bank and in hand was RMB 1.550m,” the company explained.
With that 56.5% increase in group turnover, Yingde Gases is now achieving turnover of RMB 2.060m.
The group has a total of 31 gas supply facilities and total oxygen capacity will reach 1,482,900 Nm3/hr after completion of all facilities under development by 2013. In fact, Yingde Gases is the largest independent on-site industrial gas supplier in the People’s Republic of China (PRC) with oxygen, nitrogen and argon as its major gas products.
Reviewing the 2011 interim results, Yingde Gases said in a statement, “The demand for industrial gas on a national basis has increased substantially due to the rising environmental standards and the trend of corporate outsourcing.”
“Benefiting from the environmental and market factors, Yingde Gases, as a leading enterprise in the industrial gas industry in PRC and the major gas supplier for several domestic steel enterprises, signed contracts of 11 new facilities for on-site gas supply in the first half of 2011.”
“As for on-site gas supply, in early 2009, our group signed an agreement with the largest coal company among China’s listed companies, Shenhua Group Corporation Limited (Shenhua Group) to provide industrial gas of 240,000 Nm3/hr for its coal chemical project in Baotou, Inner Mongolia. The speed of ramping up of this project is better than anticipation in the first half of 2011.”
On-site gas supply accounted for approximately 81.8% of revenue from operations of the group. During the reporting period, 28 on-site gas supply facilities of the group were in production and the group had 23 new facilities under development.
The total installed capacity amounted to 783,400 Nm3/hr in terms of installed oxygen capacity, representing a 73.0% increase as compared with the same period in 2010.
As for merchant gas operations, the group utilises the excess production capacity of its on-site gas production facilities to produce gases for retail to local distributors. In addition, the group also has four dedicated merchant production facilities in operation, with two in Yangzhou, one in Nanjing and one in Chongqing. As of 30th June 2011, the total turnover of the group’s merchant gas operation amounted to RMB 374m, representing a period-on-period growth of 55.1%.
Looking forward, Yingde Gases explained, “As the demand for environmental friendly operation continues to increase, our group will closely keep pace with the market trend and seize the current opportunities by identifying more customers from other sectors.”
“In line with the existing large-scale projects such as the coal chemical project of Shenhua in Baotou, Inner Mongolia, our group will continue to seize the opportunities to co-operate with other domestic and international enterprises.”