(Hong Kong, 27 August, 2024) – China Risun Group Limited (“China Risun”, or the “Group”, stock code: 1907.HK), a leading global integrated coke, coking chemicals and refined chemicals producer and supplier and relevant operation management services provider in China, announced today its interim results for the six months ended June 30, 2024 (the “Reporting Period”). During the Reporting Period, the Group has been expanding its global coal supply chain resources by setting up overseas offices and subsidiaries, continuously broadening the business coverage of its coke and chemical products, and driving the Group's internationalization.
Revenue for the Reporting Period was up 21.0% to approximately RMB25.2 billion. Profit attributable to owners of the Company was approximately RMB112 million. Basic earnings per share of the Company was RMB2.54 cents. To share the fruit of its outstanding results performance, the Board declares an interim dividend for the Reporting Period amounting to RMB0.78 cents per share (equivalent to HK0.85 cents per share).
Refined chemical business achieved a new high in overseas sales volume.
The Group was selling refined chemicals in both China and overseas, reaching over 10 different countries in the world. Revenue from the refined chemicals manufacturing business increased by 20.5% to RMB10.4 billion for the Reporting Period, primarily due to an increase in the average selling price of styrene and an increase in sales volume of styrene and benzene by 50.8 thousand tons and 60.3 thousand tons respectively. In 2024, the Group reached another height in the production volume of caprolactam (CPL) through the advanced production chain and technology together with some alcohol-ammonia chemicals products, such as 2-Amino-2-Methyl-1-Propanol (AMP). CPL was still the major growth momentum in the Group’s refined chemicals sector, with the solid caprolactam business having fully opened up the overseas market.
Diversified Hydrogen Energy System Integrator
Hydrogen sales volume set a new high in the first half of 2024, with high-purified hydrogen’s volume for the Reporting Period reaching [9.5 million] Nm3, representing an increase of [98.9]% year-on-year. The Group was making use of the advantage of the coke production facilities in Dingzhou, Xingtai and Hohhot by producing hydrogen from the coke-oven-gas. The total hydrogen production capacity reached 24,000 kg per day. The Group was operating three hydrogen refueling stations, including one hydrogen, petrol and gas comprehensive energy station with a daily hydrogen refueling capacity of 1,000 kg in Dingzhou and each one hydrogen refueling station with a daily hydrogen refueling capacity of 1,000 kg in Xingtai and Baoding, respectively. The Group is going to participate actively into the hydrogen industrialization plan in different cities in the PRC, including Dingzhou, Xingtai and Baoding in the Hebei Province and Hohhot in Inner Mongolia, etc. The Group will also invest in a new hydrogen-energy products project in the Pingxiang Production Base. In the future, the Group will explore the opportunities to build up a hydrogen-energy mother island and energy-integrated station in the Beijing-Tianjin-Hebei area.
Coke business is driven by a dual model of light-asset and self-built operations
Revenue from the coke and coking chemicals manufacturing business increased by 29.2% to RMB9.8 billion for the Reporting Period, primarily due to an increase in revenue since Huhhot Risun China Gas Energy Limited was included in the scope of consolidation on June 1, 2023. During the Reporting Period, the Group was constructing the overseas coke production facility in the Sulawesi Production Base and two more coke ovens were completed and commenced operation. The Group is now constructing the Pingxiang Production Base in Xiangdong Industrial Park with an annual coke production capacity of 1.8 million tons. It is believed that the construction of Pingxiang Production Base will be completed no later than the end of 2025. Moreover, the Group was providing operation management services for third-party coke enterprises with annual coke producing and/or processing capacity of [4.6] million tons in different provinces in China during the Reporting Period.
Looking ahead, the Group will continuously enhance the total coke processing volume to ultimately 30 million tons per annum or even more. On the other hand, the Group is closely monitoring the costs of sales and service, selling and administrative expenses together with finance costs and the financial indicators of the Group under the Reform, including but not limited to gearing ratio, to ensure its financial health.
