On December 11, 2024, China Risun Group (1907.HK) was honored with the "Best Stock Connect Company" award at the 9th Smart Finance Capital Market Annual Conference and Listed Company Awards Ceremony.
The "Best Stock Connect Company" award recognizes companies with healthy governance structures, significant industry positions, and strong core businesses that provide sustained and stable value returns to investors. Since entering Stock Connect in 2019, China Risun Group has continually enhanced communication and interaction with investors through online and offline meetings, reverse roadshows at Risun production bases, as well as interim and annual results presentation events. As of December 10, 2024, Stock Connect investors' holdings in China Risun had risen to 6.72% of the total issued shares. Since being included in Stock Connect, the Group has declared dividend distributions for 11 times, bringing value to investors.
China Risun Group has established nine production bases through wholly-owned and joint ventures in Xingtai, Dingzhou, Laoting, Cangzhou, Yuncheng, Dongming, Hohhot, Pingxiang, and Sulawesi, Indonesia. The group has provided operation management services to 15 coking and chemical companies, with seven currently under management. Starting with coke, Risun has developed three unique chemical industry chains: carbon materials, aromatics, and methanol-ammonia, and has expanded into hydrogen energy and new energy businesses. The product portfolio has grown to 17 coke production lines, 58 chemical production lines, and 4 high-purity hydrogen production lines, producing five major categories with 57 products and a total operational scale of 28.03 million tons/year (including 22 million tons/year of coke and 6.03 million tons/year of chemicals). The company conducts domestic and international trade, establishing a sales network and raw material supply channels that cover the entire country and reach globally.
Comprehensive Development and Future Projects
China Risun Group is deeply integrated into the industrial chain, ensuring comprehensive services and seamless connections between upstream and downstream operations, both domestically and internationally. As new projects such as the 50,000 tons/year high-end polyamide new materials and 5,000 tons/year amino alcohol projects come online from the second half of 2024 to 2025, the company's comprehensive competitive advantages will be further strengthened, with all business segments expected to see significant growth.
Enhanced Profitability through Innovation
By continuously increasing R&D innovation, capacity expansion, and upstream and downstream integration of existing chemical facilities, China Risun Group has significantly enhanced its profitability. The chemical segment, as the company's second pillar industry and growth curve, surpassed the coke segment in revenue and profitability in 2023, contributing more prominently to the company's performance. This reinforces the synergistic effects of independent yet interrelated and complementary industry chains.
Recognition and Future Vision
The "Best Stock Connect Company" award highlights the recognition from industry and professional institutions of China Risun Group's overall business performance, corporate governance, investor relations, and capital market excellence. The company will leverage its nine core capabilities, including advanced research, strategic planning, business strategy, supply chain, digital operations, innovation, profitability, expansion, and correction abilities. It will also capitalize on its nine competitive advantages, such as scale, integration, park economy, concentrated marketing, cost efficiency, R&D innovation, digital intelligence, safety, environmental quality, and risk control. With deep industry experience, sincere customer service, precise management loops, top-tier energy-saving and emission-reduction technologies, and a comprehensive integrated R&D innovation system, Risun will connect global supply chains and resources to create multiple world-leading product lines and industry brands.
Through business model innovation, system and mechanism innovation, and technological product innovation, Risun is poised for a future where it transitions from large-scale manufacturing to service-oriented manufacturing and from market-driven and investment-driven growth to innovation-driven growth. These dual transformations will position Risun at the forefront of the industry, establishing it as a world-leading energy and chemical company that generates greater value for shareholders and contributes significantly to societal progress.
