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China Industrial Gas Info Centre, Shanghai (2025)

11/02/2023

First cryogenic gas equipment manufacturer listed in 2023 – Hangzhou Fortune Gas Cryogenic Group

Since its establishment in year 2000, Fortune Gas Cryogenic Group Co Ltd (formerly founded in 1984 as Yuhang County Gas Equipment Installation and Maintenance Factory) has been focusing its efforts in designing, manufacturing, and sales of cryogenic equipment to provide total solution for its customers. It was formally listed on the main board of the Shanghai Stock Exchange on January 30 earlier this year and 40 million shares with face value RMB 1.00 (USD 0.15) are issued with a price of RMB 18.65 (USD 2.80).

The company has the capability to manufacture air separation plants up to the scale of 80,000 Nm3/h O2 and is one of the few manufacturers in China that can achieve this milestone. There are only 5 manufacturers in China that can manufacture air separation plants of 60,000 Nm3/h O2 capacity and higher.

According to the IPO document, the operating revenues of the company in 2019, 2020, 2021, and the first six months of 2022 are respectively RMB 718.67 million (USD 107.8 million), RMB 1078.08 million (USD 161.71 million), RMB 1446.38 million (USD 216.96 million), and RMB 786.59 million (USD 117.99 million); the corresponding operating profits are respectively RMB 79.15 million (USD 11.87 million), RMB 160.89 million (USD 24.13 million) , RMB 170.01 million (USD 25.50 million), and RMB 57.87 million (USD 8.68 million), the corresponding net profits are respectively RMB 70.82 million (USD 10.62 million), RMB 144.76 million (USD 21.71 million), RMB 160.17 million (USD 24.03 million), and RMB 55.79 million (USD 8.37 million).

The products of the company are also exported to overseas countries like Middle East, Central and South America, Southeast Asia and others. The revenues from direct export in the years 2019, 2020, 2021, and the first six months of 2022 are respectively RMB 49.55 million (USD 7.43 million), RMB 413.30 million (USD 62.00 million),RMB 271.10 million (USD 60.67 million), and RMB 82.9 million (USD 12.44 million), accounting for corresponding 6.89%, 38.34%, 18.74% and 10.54% of the operating revenue. Moreover, considering the equipment supplied and sold to domestic contractors but in fact installed and operated in overseas countries, the indirect export revenues are respectively RMB 237.04 million (USD 12.44 million), RMB 138.70 million (USD 20.81 million), RMB 142.19 million (USD 21.33 million), and RMB 29.22 million (USD 4.38 million), accounting for 32.98%, 12.87%, 9.83%. and 3.72%.

Looking at the oxygen generation capacities, the statistics of the oxygen generation capacities of air separation equipment manufactured by the local companies shows that Fortune Gas is ranked 4th, 4th and 7th in the years 2018, 2019, and 2020 respectively, and with market shares of 7.15%, 9.72%, and 4.99% correspondingly. Of course, the company also manufactures nitrogen generators and liquefied natural gas (LNG) equipment and so this ranking only represents part of its achievement.

Besides its equipment manufacturing business, Fortune Gas Cryogenic Group also has industrial gas business. The industrial gas business is managed under Hangzhou Fortune New Energy, a wholly owned subsidiary of the Fortune Gas Cryogenic Group.

Industrial gas business is an extension business of the gas separation equipment manufacturers which provides a relatively stable income revenue.

The company explains in the IPO document the reason they issue public shares. Before the listing on Shanghai Stock Exchange, the channels for getting capital are either from the profits accumulated from the sales of equipment and services or from loans offered by banks. In order to cope with the market competition, the company has to in the future expand the product structure and scale of business, to increase the added value of the products. Therefore, investment in research and development will definitely increase, and the company will need more capital. The issue of public shares will gain strong capital support for the company, further maintain and improve the market position of the company, strengthen the core competitiveness of the company, improve the profit levels, thus setting a solid foundation for the future development.

Regarding their development plan, the company will continuously work in the cryogenic technology, further improve the research and development, design, and manufacturing capability of products, strive to achieve breakthroughs in the design and manufacturing capability of 100, 000 Nm3/h class ASUs, 5 million m3 LNG equipment, hydrogen liquefaction equipment, and aluminium coil heat exchangers. It will also further strengthen the market strategy for both local and overseas markets, strengthen the cooperation with middle and high-end customers and well known gas companies.

09/11/2022

HYDROGEN ENERGY AND THE SHIPBUILDING INDUSTRY OF CHINA

The whole shipbuilding industry in China contributed about RMB 500 billion to the gross domestic product (GDP) in 2021. Moreover, it is estimated that the power system of vessels accounts for 35% of the total equipment cost and 25% of the total manufacturing cost of a vessel.

And according to the Ministry of Transport of the People’s Republic of China, there are about 125,900 vessels in China, of which about 113,600 vessels are running in the inland rivers and waterways, 10891 vessels run in the coastal areas, and 1402 of them are ocean going vessels. Moreover, the total mileage of navigable routes is about 127.6 thousand kilometres.

Hence, it is obvious that the total energy consumed by these vessels is humongous and therefore there is a huge potential for the use of hydrogen in this sector. Moreover, this is a great opportunity to meet the “Double-carbon” target of the China central government as well as the carbon reduction targets of the International Maritime Organization (IMO): A reduction of 40% of carbon emission of global shipping industry in 2030 compared with 2008 and a reduction of 70% by 2050.

Nevertheless, it is not hard to understand that the development of new energy systems for the vessels will require the solution of many barriers (technical, safety and standards, system economics and costs, administration, etc.).

Firstly, hydrogen is a very light element and to store enough amount of hydrogen for one sail may require a huge amount of hydrogen atoms. Therefore, should we use compressed or liquid hydrogen? Or hydrogen stored in some kind of media? Or should we use other materials, such as ammonia or methanol to generate hydrogen on board? This is the first question to ask because the whole driving system and safety precautions will depend on this decision. Which fuel is the most feasible, reliable, and safe to use? Or will different types of vessels adopt different types of system? Is the technology mature and well developed for safe use?

Although a certain number of vehicles are already running on hydrogen and the safety record is fine so far, the systems to be used on vessels would not be exactly the same since there are different operating conditions with vessels.

Storage of large amount of fuel will be required for the ocean going vessels, travelling to and pass many countries, and a safe system would definitely be at the top of the list. Availability of the fuel, globally, is also important.

Secondly, the shipbuilding industry will require safety standards that will be recognized and accepted internationally as ocean going vessels will travel to different parts of the world.

Regarding the standards, IMO has approved “Interim guidelines for the safety of ships using fuel cell power installations”, which is a framework intended to ensure the safe and reliable delivery of electrical and/or thermal energy through the use of fuel cell technology, developed after years of discussion.

The goal of the Interim Guidelines is to provide criteria for the arrangement and installation of fuel cell power installations with at least the same level of safety and reliability as new and comparable conventional oil-fuelled main and auxiliary machinery installations, regardless of the specific fuel cell type and fuel.

At the same time, China already has “Temporary regulations for the technology and inspection of hydrogen fuel cell powered vessels” and “Guidelines for fuel cell power installations for ships”, together with other hydrogen-powered ships documents being prepared, the development of a preliminary system of standards is in progress.

In fact, so far, there are already three types of fuel cell systems for ships and one type of on-board hydrogen storage system have received type approval from the China government.

There are several demonstration projects and the ships are already in the project implementation stage:
1. The first hydrogen fuel cell ship for sea patrol in China which has a 1.6MW fuel cell stack is expected to start operating in 2024 and is now under construction.
2. A 1000 tonne class cargo vessel to run in the inland rivers which has a 1 MW fuel cell stack will start navigating in 2024 when building is finished.
3. A 20-metre long cruise ship and a yacht have been completed.

Although demonstration projects are already implementing, the industry still has concerns.

For vessels that have to navigate through the Three Gorges Dam, safety approval is necessary. Natural gas powered vessels have been operating for many years but only recently did they get the approval and the priority to ‘pass the gate’.

In addition, refilling of hydrogen is another barrier. At present, there is no standard for the hydrogen filling station for ships and would be a disadvantage when looking for the location, designing the system, and getting approvals from the local authorities.

The hydrogen powered vessels, like the natural gas powered ones, may encounter a number of barriers before they can be accepted by the user industry: safety, technical, cost, local approvals, etc. But since the central government is eager to promote hydrogen energy to meet the “Double Carbon” targets and to fulfil their promise to cut carbon emissions, hydrogen powered ships may have a smoother path and a brighter and more promising future.

21/09/2022

Green ammonia from green hydrogen
– A growing trend in China

While green hydrogen is among the top priority missions of China, anything related to hydrogen will be encouraged because the more applications found for the hydrogen atoms generated the cheaper the cost of hydrogen will be, according to the economy of scale.

Ammonia has recently become one of these applications. Not only ammonia is widely used in the chemical industry but also it is claimed as an effective alternative of hydrogen storage and delivery.

At present, more than 100 million tonnes of synthetic ammonia each year worldwide, and most of it (about 80%) is for chemical fertilizers. And the raw materials of traditional synthetic ammonia are coal or natural gas and a lot of carbon dioxide will be generated in the production process. Therefore, using green hydrogen for production could cut the emission of the greenhouse gas.

China produced about 59 million tonnes of synthetic ammonia in 2021, an increase of 15.5% from 2020. Therefore, promoting green ammonia is one of the ways to cut carbon emission in order to fulfill their promise.

According to the information publicized, there will be a total production capacity of around 3 million tonnes of green ammonia in a few years’ time. These projects usually certainly will have production of green hydrogen specifically for the green ammonia production while some of them will also produce green hydrogen for other applications.

08/09/2022

Major listed gas equipment manufacturers published their interim reports

SUZHOU OXYGEN PLANT
The operating revenue of Suzhou Oxygen Plant Co Ltd for the first half of 2022 is reported to be RMB 372.50 million (USD 52.15 million), 16.13% more than that in the first half of 2021. Operating profit for the report period is RMB 34.45 million (USD 4.82 million), 14.42% more than that in the same period last year whilst the net profit is 15.89% more compared with the same period last year, giving RMB 28.12 million (USD 3.93 million).

The wholly-owned subsidiary, Suzhou Huafeng Liquefied Natural Gas Company, which sells liquefied natural gas, contributed RMB 171.22 million (USD 23.97 million) to the operating revenue, accounting for 45.96% whilst the other wholly-owned subsidiary Suzhou Huafeng Cryogenic Vessels, which mainly manufactures cryogenic tanks and soon to be relocated, reported a loss of RMB 0.19 million (USD 26,600).

HANGZHOU ZHONGTAI CRYOGENIC TECHNOLOGY
The operating revenue of the Hangzhou company for the first half of 2022 has increased by 41.26% to RMB 1,605.08 million (USD 224.71 million), compared to the same period last year. Operating profit for the first half of 2022 is RMB 173.73 million (USD 24.32 million), an increase of 14.43% whilst the net profit has also increased by 10.82% to RMB 138.22 million (USD 19.35 million).

Besides the cryogenic equipment manufacturing business, the company also owns a fuel gas company and it contributed RMB 1,150 million (USD 161 million) to the operating revenue, RMB 100.87 million (USD 14.12 million) to the operating profit, and RMB 72.10 million (USD 10.10 million) to the net profit.

The company also invested in an ASU merchant plant in Shandong province in 2021 and will start their industrial gas business once the construction is completed.

SICHUAN SHUDAO EQUIPMENT & TECHNOLOGY
Formerly Chengdu Shenleng Liquefaction Equipment, the company reported that the operating revenue for the first half of 2022 is RMB 77.96 million (USD 10.91 million), plummeted by 53.44% compared with the same period last year. Operating profit for the report period is RMB 3.18 million (USD 0.45 million), dropped by 6.88%; net profit also dropped by 46.32% to RMB 2.03 million (USD 0.28 million).

The management explained in the report that the reason of the decrease in operating revenue and profits is because of the Covid-19 epidemic leading to the downward trend in economy and also because they have abandoned several projects due to the restructuring of the company, the number of projects in ex*****on and the new projects signed in the first half of 2022 have decreased compared with the same period last year.

06/09/2022

Industrial gas business continues to get higher percentage of the revenue
- Hangyang 2022 interim report

Hangzhou Oxygen Plant Group Co Ltd (Hangyang), the largest air separation plant manufacturer and a domestic industrial gas player in China, have published their 2022 interim report. Operating revenue has increased by 10.00% to RMB 6,178.81 million (USD 891.60 million), compared to the same period last year. Operating profit stands at RMB 1,038.96 million (USD 149.92 million) and net profit RMB 784.06 million (USD 113.14 million), representing respectively a 10.95% increase and a 7.82% increase.

Breaking down the revenue, manufacturing of air separation plant contributes RMB 1,955.40 million USD282.16 million), manufacturing of petrochemical plants RMB 309.28 million (USD 44.63 million), engineering contracting RMB 98.01 million (USD 14.14 million), sales of gases RMB 3,727.14 million (USD 537.83 million), and others 88.97 million (USD 12.84 million) and they represent 31.65%, 5.01%, 1.59%, 60.32%, and 1.44% of the operating revenue respectively.

6 new subsidiaries have been established during the report period and 4 of them are industrial gas companies.

The company continues to provide large scale air separation units (ASU): for example, they will supply 2 sets of 70,000 Nm3/h ASU to an IGCC plant, and they have supplied one set of 80,000 Nm3/h ASU to Uzbekistan，which is their first set of extra large scale ASU supplied to central Asia region.

The company is also expanding their rare gases production. They have at present a production of 600 Nm3 Xenon and 6000 Nm3 Krypton and they are already building additional 2000 Nm3 Xenon and 20000 Nm3 Krypton production capacity. They will also expedite their production of Neon and Helium.

They are also working on the extraction of helium from the boil-off gas (BOG) of liquefied natural gas (LNG).

05/09/2022

China industrial gas companies published their financial performance for the first half of 2022
- Growth amidst unfavorable conditions

SUZHOU JINHONG GAS
Suzhou Jinhong Gas, one of the largest domestic industrial gas companies that can provide more than 100 types of gases, has announced that their total operating revenue for the first half of 2022 is RMB 930.09 million (USD 134.21 million), an increase of 19.41% compared with that in the same period in 2021. Operating profit is RMB 123.51 million (USD 17.82 million), a nearly 12.85% increase, and the net profit is RMB 105.59 million (USD 15.24 million), an increase of 14.17%, both compared to the same period last year.

The Jinhong Gas Group now has 53 subsidiaries, 31 of them are wholly owned by Jinhong Gas. These subsidiaries include industrial gas companies, electronic materials companies, and logistics companies, spreading over in different parts of the country.

The management stated that the fluctuation of the Covid-19 epidemic had brought adverse effect to the business but somehow the company had managed to cope with the situation and they even expanded their business horizontally to establish an electrolytic hydrogen generator business.

GUANGDONG HUATE GAS
The total operating revenue for the first half of 2022 of Guangdong Huate Gas is RMB 883.77 million (USD 127.53 million), a 36.51% increase compared with the same period in 2021. Operating profit for the report period is RMB 137.26 million (USD 19.81 million), an impressive 84.12% jump compared with the same period last year. Net profit for the report period is RMB 118.12 million (USD 17.04 million), representing a 79.45% increase compared with the same report period last year.

The management explained that the increase in operating revenue is due to the continuous increase of demand from the domestic semiconductor market, the growth in sales of rare gases, supply of new products, and existing customers ordering more products.

The management also stated in the report that the revenue from the specialty gases sector has increased 78.96% to RMB 657.80 million (USD 94.92 million) compared to the same period last year, and of which the electronic specialty gases has increased by 127.57% and the management explained it is due to the increase of purchase quantity from the customers.

The report quoted the data from a local market research company that the market size of specialty gases in China achieved RMB 34.2 billion (USD 4.94 billion) in 2021 and would have a compound annual growth rate of about 19% in the coming 5 years.

However, they also pointed out that there are risks in this sector despite of the fact that the government is encouraging the domestic production of semi-conductors and chips as well as the production of electronic specialty gases. Factors such as the government policy of the client industries, the situation of the COVID-19, and the trade friction can have impact on the business.

HUBEI HEYUAN GAS
The company reported that their total operating revenue for the first half of 2022 is RMB 703.66 million USD 101.54 million), an increase of 47.26% compared with the same period last year. Operating profit and net profit are respectively RMB 51.43 million (USD 7.42 million) and RMB 40.45 million (USD 5.84 million) respectively with corresponding 9.80% increase and a drop of 3.37%. However, net profit attributable to the shareholders of the company after deducting non-recurring profit-and-loss records an increase of 19.95% to RMB 41.18 million (USD 5.94 million). Net cash flow generated by business activities has increased by 164.53%.

The management explained that the profits have not matched with the growth of the operating revenue because of the increase in the electricity tariff while they have new ammonia production. The financial data also reveals that the subsidy from the government has decreased substantially.

Revenue from the sales of industrial gases, specialty gases, clean energy, and industrial chemicals and new materials (ammonia) accounts for respectively 46.2%, 5.79%, 6.78%, and 38.68% of the operating revenue.

The company is investing RMB 83.54 million (USD 12.05 million) to build three projects related to specialty gases business.

SICHUAN QIAOYUAN GAS
This is the first interim report after they are listed on the stock market.
The total operating revenue for the first half of 2022 is reported as RMB 420.55 million (USD 60.68 million), only a marginal 4.33% compared with that for the first half of 2021.

Operating profit and net profit for the report period is respectively RMB 69.69 million (USD 10.06 million) and RMB 53.40 million (USD 7.71 million), representing a 49.02% drop and a 51.47% drop respectively compared with the same period last year.

The company has in the Sichuan area a total production capacity of around 800 thousand tonnes of liquid oxygen, 340 thousand tonnes of liquid nitrogen, and 22 thousand tonnes of liquid argon. The products are mainly bulk liquid and cylinder gases. In Fujian area, the company has one set of 25,000 Nm3/h air separation plant (ASU) and another set of 40,000 Nm3/h ASU. These two plants supply gaseous products by pipelines to downstream customers and the surplus liquid products will be sold to other clients in Fujian and other nearby areas.

The company shares some information of the revenue of several products:
Pipeline oxygen RMB 71.16 million (USD 10.27 million)
Pipeline nitrogen RMB 26.40 million (USD 3.81 million)
Liquid oxygen RMB 128.69 million (USD 18.57 million)
Liquid nitrogen RMB 113.95 million (USD 16.44 million)
Liquid argon RMB 35 million (USD 5.05 million)

HUNAN KAIMEITE GASES
The Hunan company announced that the total operating revenue for the first half of 2022 has increased 10.00% to RMB 363.42 million (USD 52.44 million), compared to the same period in 2021. Operating profit for the report period is RMB 96.09 million (USD 13.87 million) and net profit is RMB 83.74 million (USD 12.08 million), representing respectively an increase of 64.50% and 43.97%, compared with the same period last year.

The company now has a total production capacity of 560 thousand tonnes of food grade carbon dioxide (CO2), 50 thousand tonnes of good grade dry ice, nearly 20 thousand tonnes of hydrogen, 15 thousand tonnes of liquid oxygen, 45 thousand tonnes of liquid nitrogen, 22.9 thousand tonnes of liquid argon, and more than 200 thousand tonnes of fuel gases together with other specialty gases.

The interim report gives the shares of the different products in the operating revenue:
Carbon dioxide 31.52%; air gases (oxygen, nitrogen, argon) 4.10%; hydrogen 21.63%, fuel gases products 24.52%, specialty gases 18.12%, and others 0.11%. It may worth pointing out that the revenue from the sales of specialty gases has grown nearly 7 times compared with the same period last year.

And the region that demonstrates the strongest growth is Jiangsu and the increase is a stunning 4893.36%.

HENAN XINLIANXIN SHENLENG ENERGY
The company reports a remarkable increase of 48.28% of its total operating revenue to RMB 331.40 million (USD 47.82 million), compared to the same period last year. Operating profit has increased by 89.83% to RMB 90.17 million (USD 13.01 million), and net profit has jumped 87.75% to RMB 78.87 million (USD 11.38 million), compared to the same period last year.

The company explains that the increase in operating revenue is due to the start-up of production of plants, including the production of rare gases, and therefore the revenue from the sales of gases increases.

Revenue from sales of gases is broken down as follows:
Synthetic gases: RMB 98.77 million (USD 14.25 million), increased by 11.94%
Air gases: RMB 149.92 million (USD 21.63 million), increased by 36.03%
Electronic specialty gases: RMB 74.59 million (USD 10.76 million), increased by 479.62%
Fuel gases: RMB 4.23 million (USD 0.61 million), dropped by 40.08%

China Industrial Gas Info Centre

11/02/2023

09/11/2022

21/09/2022

08/09/2022

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