Hangyang, the largest air separation unit (ASU) manufacturing company in China and listed in the Shenzhen Stock Exchange, has announced its 2013 annual results and seen gross revenue rise.
Compared with 2012, the gross revenue in 2013 has increased by 3% to RMB 5.502bn (approx US$917m), operating profit has dropped drastically by 41% to RMB 323m, of which the profit attributable to the parent company has dropped significantly by 49% from RMB 452m to RMB 231m.
In 2013, the company won a contract to supply six 100,000 Nm3/h ASUs to Shenhua Ningxia Coal Industry for its indirect 4 million tonnes per year (tpy) coal liquefaction project, with a contract value of RMB 1.695bn, and has supplied a 120,000 Nm3/h ASU in Iran. Revenue generated by sales of ASUs in 2013 reached RMB 3.131bn, a decrease of 15% from 2012.
The company explained in its announcement that the performance is due to the unfavourable macro financial situation, as well as price competition and increase in costs, leading to a decrease in gross sales profit, operating profit and net profit compared with 2012. In particular, the drop in ASU business is because of the priority of its manufacturing capabilities on serving the development of industrial gas business and so, selling the equipment to customers has decreased as expected.
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