Since 2024, China Risun Group (1907.HK) (“Risun”) has seen continuous and steady growth in its operation management services business. As of now, the scale of operation management services has reached 7.06 million tons/year, including 6.4 million tons/year of coke and 660,000 tons/year of chemicals, marking an addition of four new operation management service projects compared to 2023 and setting a new high for operation management service scale. In April, Risun signed operation management service agreements with Wuzhong Tongda Coal Chemical Co., Ltd. and Luoyang Longze Energy Co., Ltd. for their coking units, with scales of 2.6 million tons/year and 1 million tons/year respectively, providing comprehensive services across sales, transportation, production, supply, and research. This optimizes their coking business operations by improving raw coal procurement and blending efficiency through Risun's coal blending expert system, reducing operational costs, and enhancing profitability. In July, Risun signed an agreement with Wuhai Guangna Coal Coking Co., Ltd. for unified coke sales services at a scale of 1 million tons/year. In September, Risun signed an agreement with Sichuan Energy Investment Wangcang Coking Co., Ltd. for comprehensive management of their coking operations at a scale of 600,000 tons/year, including but not limited to coke product sales, chemical product sales, coking coal procurement, coal blending management, and transportation management.
Notably, since signing an agreement with Jilin Connell on October 13, 2023, and taking over the operation management of their 300,000 tons/year aniline unit, Risun has been planning and implementing a comprehensive improvement project aimed at resolving defects and bottlenecks. The project, which began construction in May 2024, was successfully commissioned on October 12, 2024, producing qualified high-purity hydrogen and increasing the unit's annual capacity to 360,000 tons. This ensures full-capacity operation, significantly reduces production costs, and enhances competitive advantage, positioning Risun as the leading aniline producer in China and furthering its business layout in Northeast China, becoming a new engine for regional economic development.
History and Development of Risun’s Operation Management Services
Risun’s operation management services business originated in 2014. Over 11 years of exploration, Risun has integrated, consolidated, refined, and replicated its extensive experience and technology in the coking and fine chemical industries to provide professional operation management services to the industry, empowering it. Risun's operation management services come in three main forms: production technology operation management (focusing solely on production technology management), integrated marketing operation management (focusing solely on sales operations), and comprehensive operation management services covering sales, transportation, production, and supply. These three forms together constitute Risun's unique operation management service business, enabling asset-light scale expansion, accelerating and strengthening industry integration, generating incremental revenue, and selecting high-quality assets for mergers and acquisitions.
Risun's operation management services include overall trusteeship, integrated marketing, comprehensive supply chain management, park planning consultation, product line planning, production, technology, logistics, environmental protection, safety, R&D, digital enhancement, and more, covering multiple upstream and downstream industries such as coking, chemicals, and new energy. Leveraging Risun's unique core competencies and operation management system, new growth areas are gradually forming.
Strategic Expansion and Vision for the Future
Over its 30-year journey, Risun has deeply rooted itself in the coking and chemical fields, establishing nine industrial parks across China and Indonesia, with a coke production capacity of 22 million tons/year and a chemical production capacity of 6.03 million tons/year. Its business spans 39 countries and regions globally, creating multiple world-leading product lines and forming nine core capabilities and nine competitive advantages, enhancing cost-efficiency in sales, transportation, production, supply, and research, becoming an industry leader, and laying a solid foundation for becoming a service-oriented manufacturing enterprise.
Risun's rapid development is not only due to its specialization and refinement in production but also driven by market pull, investment push, and innovation, rapidly growing with a market-oriented, demand-driven, and customer-centered approach. It is accelerating the transformation and upgrade to a service-oriented manufacturing industry by:
Customized Production: Increasing customer loyalty by responding to specific customer needs, promoting intelligent and digital manufacturing, increasing small batch and multi-variety production, and enhancing customer loyalty. On average, Risun's customized coke products can increase profit per ton by 37 yuan/ton.
Brand Advantage: Enhancing profitability and empowering industry development by outputting safety, environmental, and quality management systems, digital and intelligent management systems, and building upstream and downstream supply and marketing networks for shared improvement and progress.
Goals for 2025
Risun aims to achieve a coke production capacity of 30 million tons, capturing a 10% market share, and will continue to steadily expand its operation management services business scale, increasing its contribution to the Group's total revenue, profit, and scale, further optimizing the business structure, expanding asset-light configurations, and significantly contributing to the Group's overall performance and high-quality growth.
