Total revenue in 2018 is RMB 7.9bn ($1.2bn), a 22.5% increase from nearly RMB 6.5bn ($978m) in 2017. Gross profit has jumped 81.7% year-on-year (YoY) to RMB 961.4m ($145.8m) from RMB 529m ($80.2m) in 2017. Net profit in 2018 has also recorded a satisfactory 108% YoY increase, from RMB 382m ($57.9m) in 2017 to RMB 794.7m ($120.5m).
Looking at different business sectors, their equipment manufacturing business sector has gained 41.8% more YoY to RMB 2978.2m ($451.5m) (of which, manufacturing of air separation plants earned RMB 2.8bn ($430.5m) whilst the industrial gas business sector has gained a moderate 14.1% more YoY to RMB 4.5bn ($676.8m). The engineering management business sector has the largest increase of 392.4% to RMB 224.5m ($34m); however, the corresponding gross profit has dropped 33.4% because the operating cost for this sector has risen seven times. The manufacturing sector, industrial gas business, and the engineering management each accounts respectively for 37.7%, 56.5%, and 2.8% of the total revenue.
Its overseas business has soared 1,500% to nearly RMB 551m ($83.5m), accounting for merely 7% of its total revenue. The impressive increase is due to a very low overseas income of RMB 33.5m ($5m) in 2017.
The company has received orders for air separation plants and petrochemical plants in 2018 worth RMB 4.5bn ($689.3m), including two sets of carbon monoxide (CO) cryogenic separation plant for two different projects, a cryogenic separation plant for ethylene production for Weixing Petrochemicals, and four sets of 105,000 m3/h air separation plants for Zhejiang Petrochemicals.
Suzhou Oxygen Plant Manufacturer
Total revenue in 2018 was 51.9% more than in 2017, achieving RMB 5.3bn ($81.4m). Profit from operations in 2018 is RMB 9.8m ($1.5m), 152.8% higher than in 2017 whilst the net profit is also 54.8% higher, making RMB 7.2m ($1m).
Manufacturing of gas separation equipment and liquefaction equipment generated RMB 355.7m ($53.9m) (66.3% of total revenue), sales of natural gas generated RMB 145.4m ($22m) (27% of total revenue), and manufacturing of cryogenic storage tanks generated RMB 16.8m ($2.6m) (3.1% of total revenue).
Chengdu Shenleng Liquefaction Plant Co Ltd
Total revenue in 2018 has increased by 43.1% to RMB 342.8m ($52m), compared with 2017.
In 2018, manufacturing of LNG plants generated RMB 230.3m ($34.9m) in revenue, accounting for 67.2% of the total revenue, whilst manufacturing of air separation plants generated RMB 44.4m ($6.7m), 12.9% of the total revenue.
However, due to the provision for substantial bad debt, the gross profit plunged almost 654.4% to a considerable loss of RMB 135.4m ($20.5m). Net profit also plunged 657.5% to a loss of RMB 115.8m ($17.6m).
In 2018, the company has signed news contracts with a total value of about RMB 768m ($116.4m), mainly for natural gas liquefaction plants, air separation plants, LNG/L-CNG filling stations, LNG vaporisation stations, and town gas peak-shaving plants.
CIMC Enric
The equipment manufacturer recorded a 21.9% increase in their revenue to RMB 13bn ($19.7.53bn), compared with 2017. Profit from operations has grown 47.6% to RMB 1.1bn ($166.5m) whilst profit for the year has jumped 85% to RMB 782.5m ($118.6m).
The report states that, “During the year, the clean energy segment’s revenue rose by 21.5% to RMB 6bn ($913.7m) (2017: RMB 5bn ($751.7m)). This is mainly due to the increase in import of natural gas in China, especially LNG, which substantially boosted the demand for the group’s natural gas equipment and services in 2018. As a matter of fact, the group’s natural gas transportation and storage equipment benefited the most.”
“On the other hand, the group’s natural gas application equipment saw a slight decline in revenue which to some extent offset the revenue growth from storage and transportation equipment. At the same time, the revenue of group’s other clean energy equipment (other than natural gas), remained stable. The segment remains the top grossing segment and accounted for 46.2% of the group’s total revenue (2017: 46.3%).”