On July 25, 2024, Fortune China released the 2024 Fortune China 500 list, with China Risun Group Limited (1907.HK) ranking 339th.
This newly published list follows the same methodology as the Fortune Global 500, including both listed and non-listed companies. It provides insights into the latest development trends of the largest companies in China. The English version of the list has also been released simultaneously onFORTUNE.com.
China Risun Group has been a continuous presence on the Fortune China 500 since its listing on the Hong Kong Stock Exchange in March 2019, marking its sixth consecutive appearance on the list. Not only did the company make its debut on the list the year it went public, but it has also been included every subsequent year.
Based on the operating data for 2023, which formed the basis of this ranking, China Risun Group's revenue reached 46.066 billion yuan, with a compound annual growth rate of 25% over the five years since listing. The total assets scaled to 53.836 billion yuan, with a compound annual growth rate of 28%. These figures are particularly impressive given the challenging industry conditions and overall downturn, highlighting the company's strong market competitiveness and robust operational capabilities.
Coke Segment: Domestic and International Expansion
In 2023, Risun's total coke business volume reached 15.83 million tons, an increase of 11.6% year-on-year. The coke production capacity reached 17.20 million tons, an increase of 6.8% year-on-year. The revenue from the coke segment was 18.077 billion yuan, accounting for 39.24% of total revenue, with a year-on-year increase of 10.44%.
Notably, Risun's first overseas manufacturing project, the Indonesia Wesan 4.8 million tons/year coking project, successfully started production with four coke ovens, achieving a production scale of 3.2 million tons/year. Using Indonesia as a base, Risun has expanded its business globally, with operations covering Indonesia, Turkey, Malaysia, Australia, Vietnam, and other countries.
Additionally, the Hohhot Park's 3.6 million tons/year coking project was fully operational in 2023. The company also added 4.6 million tons/year of operational management service coke capacity.
Chemical Segment: Enhanced Profitability
In 2023, the chemical segment's revenue reached 18.681 billion yuan, accounting for 40.55% of total revenue, surpassing the coke segment for the first time and solidifying its position as a key pillar industry.
Over the past five years, Risun's chemical production capacity has consistently grown, reaching 6.03 million tons in 2023, an increase of 16.6% year-on-year. The chemical business volume also grew for five consecutive years, reaching 4.85 million tons in 2023, an increase of 23.7% year-on-year. Especially in the caprolactam sector, Risun maintained its position as the world's second-largest caprolactam producer with a capacity of 750,000 tons/year. The significant cost reduction (1,600-1,900 yuan/ton) and enhanced profitability were driven by the second phase of the Cangzhou Park project and the capacity expansion of the Dongming Park. Overseas markets also expanded, with caprolactam exports to nine countries and regions, achieving a year-on-year export growth of 371%. The company also overcame downstream technical barriers, advancing high-end polyamide new material projects and resolving key production issues with innovative processes.
Additionally, projects such as the 360,000 tons/year benzene hydrogenation (Phase II) in Laoting Park and the 450,000 tons/year synthetic ammonia project in Hohhot Park were successfully commissioned in 2023. New operational management service projects, including 300,000 tons/year aniline from Connell and 100,000 tons/year benzene hydrogenation from Wanshan Weiye, directly contributed to the scale and profitability of Risun's chemical segment.
Hydrogen Energy: Full Value Chain and Profitability
In 2023, Risun's hydrogen energy sales reached 9.3 million cubic meters, a year-on-year increase of 236%. Over the past three years, hydrogen energy sales and revenue have consistently doubled, reaching 64 million yuan in 2023. The company established a full value chain profitability model, becoming the fifth-largest high-purity hydrogen producer and supplier in China and the largest in the Beijing-Tianjin-Hebei region.
Hydrogen Production: Four high-purity hydrogen production lines with a capacity of 24 tons/day, certified by national clean hydrogen standards, achieving a carbon emission of 0.49 kg CO2e/kg H2, well below the national standard of 4.90 kg CO2e/kg H2, resulting in an annual CO2 emission reduction of 58,000 tons.
Storage and Transportation: Qualified for hazardous materials transportation, expanding the hydrogen transportation fleet by 110% year-on-year, with hydrogen delivery services covering the Beijing-Tianjin-Hebei region.
Hydrogen Refueling: Three hydrogen refueling stations in Dingzhou, Xingtai, and Baoding, with a refueling capacity of 3 tons/day, making Risun the company with the most independent stations in Hebei Province. Plans for additional stations in Inner Mongolia, Xingtai, Dingzhou, Cangzhou, and Tangshan are underway.
R&D: Completed the construction of a hydrogen energy laboratory equipped with over 20 core devices, including an electrochemical workstation and a vacuum tube furnace, forming a comprehensive research platform. Explored new hydrogen pipeline transportation models to address transportation bottlenecks (the Dingzhou-Gaobeidian-Beijing hydrogen pipeline project has been approved by the Hebei Provincial Development and Reform Commission and listed as a key demonstration project in Hebei Province for 2023). Actively ventured into liquid hydrogen, green hydrogen, hydrogen fuel cells, and developed key materials such as hydrogen evolution catalysts and liquid hydrogen catalysts. Also, participated in drafting two national hydrogen energy standards: "Technical Requirements for Hydrogen Production from Coke Oven Gas" and "Management Specification for Hydrogen Refueling Station Operations."
Hydrogen Applications: With nearly 400 transportation routes and an annual transport volume of 41 million tons, Risun has significant potential for hydrogen vehicle substitution. Current hydrogen truck transport routes include Dingzhou to Xinji, Dingzhou to Tianjin, and Baoding Easy Line, transporting coke and coal products with a capacity of nearly 5,000 tons/day. In 2023, over 60 hydrogen fuel cell vehicles were added, supporting the park's green transport targets and increasing hydrogen truck applications within the park for short-haul, loading, and unloading operations.
Future Prospects
The performance of Risun in 2023 amid an industry downturn highlights the company's investment value. All investments made since its listing have entered the return phase, raising expectations for the future.
Coke Segment: Increase industry integration, enhance core competencies, expand operational management services, and strive for a capacity of 30 million tons/year.
Chemical Segment: Focus on completing and optimizing existing facilities, technological R&D, and managed acquisitions to maintain its position as the second pillar industry. Utilize resources from domestic and international markets, expand raw material procurement and product export channels, avoid domestic market price competition, pursue international strategies, and improve overall profitability and asset returns in the chemical segment.
With the implementation of Risun's large-scale marketing system reform, expand service-oriented trade through operational management services, leverage the company's brand and management advantages, expand business scale, build a global business and customer network, enhance industry profitability, and increase product gross margins, net margins, and asset returns. Accelerate the transformation from large-scale manufacturing to service-oriented manufacturing and shift growth drivers from market and investment-driven to innovation-driven.
