Nationwide Presence, Global Expansion
Self-built and Operation Management Approach Drives Market Shares
China Risun Group Limited (China Risun, or the Group, HKG: 1907), a leading global integrated coke, coking chemicals and refined chemicals producer and supplier and relevant operation management services provider in China, announced today its annual results for the year ended 31 December 2022 (the reporting year). The Group continued its expansion in the annual capacity of all the products and its further refining ability to high-end chemicals products. It has also strategically focused on increasing its market share through nationwide distribution and global expansion initiatives.
Revenue for the year ended December 31, 2022 was up 9.6% to approximately RMB43.1 billion. Profit attributable to owners of the Company was approximately RMB1.9 billion. Basic earnings per share of the Company was RMB42 cents. To share the fruit of its outstanding results performance, the Board determined to declare a final dividend of RMB0.9 cents per share (equivalent to HK1.0 cents per share).
Scale of coke business keeps swelling, Further consolidated industry leadership
During the reporting year, the Group expanded its coke production/processing capacity through various means, such as mergers and acquisitions of existing coke enterprises, setting up joint ventures with other coke/steel enterprises, and managing operations of existing coke enterprises. As a result, its core business continued to grow, further consolidating its industry leadership. The Group’s coke production/processing volume reached 10.6 million tonnes in 2022. As of December 31, 2022, the group had eight production bases around the world and was also in the process of developing its ninth production base in Pingxiang, Jiangxi Province, China.
In addition to the expansion plans within China, the Group is also exploring opportunities overseas. The Group has been developing new production bases through two joint ventures and one associate in Sulawesi Province, Indonesia. The gross annual coke production capacity of these three companies in Indonesia will be 13.4 million tonnes, with the equity capacity in production of coke attributable to the group at 4.36 million tonnes per annum.
Chemical output and production capacity increased steadily, Industrial chain extending into new energy and new material realms
Refined chemicals are China Risun’s second major business segment, with four main production lines including aromatics, alcohol ammonia, carbon materials, and specialty chemicals. As of the end of 2022, the annual production/processing volume of refined chemicals had reached 3.64 million tonnes, with a management scale (self-built, JV and operation management) of 5.11 million tonnes. Both segments continued to expand. The Group is currently expanding its production capacity of caprolactam in Hebei and Shandong provinces. And expects to have a total production capacity of approximately 0.75 million tonnes of caprolactam per annum when the expansion is completed.
During the year, two new industry’s leading position was achieved by the Group as per independent global consulting firm:
Caprolactam (CPL) World’s second largest producer
High purified hydrogen Beijing-Tianjin-Hebei’s largest producer
Dual-pronged – self-built and operation management – approach drives business volume of asset-light operation
In addition to self-built projects, the Group’s light asset business has continued to grow throughout the year. Currently, the group has seven operating and managed projects and has entered into four new operation management agreements for three projects in Shandong Province and one project in Shanxi Province, China, in order to further expand its presence in the coke and coking chemicals, coal tar, and hydrogenated benzene sectors.
Hydrogen production capacity improved substantially, top in Beijing-Tianjin-Hebei region
After three years of innovative research and development and strategic planning, the Group’s hydrogen production capacity has continued to increase. In 2022, China Risun became the largest hydrogen gas supplier in the Beijing-Tianjin-Hebei region. With a focus on the rapid development of the hydrogen energy industry in this area, the Group is committed to developing the production, storage, transportation, hydrogenation, and usage of hydrogen, as well as providing intelligent hydrogen supply services throughout the country with advanced technology and customer-oriented services.
The Group plans to expand its transportation fleet by using more hydrogen refueling vehicles, enhance the refueling capacity of existing hydrogen refueling stations, and promote the development and construction of the main hydrogen refueling station near Beijing to radiate the storage and supply to the Beijing-Tianjin-Hebei region. It will also explore new technologies such as liquid hydrogen, green hydrogen, and hydrogen fuel cells, and develop new application scenarios such as co-generation of heat and power, hydrogen energy transportation lines, and more to enrich the scope of hydrogen application.
Looking ahead, the Group will continue its growth and expansion by using different methods of operation management, mergers and acquisitions, and joint ventures with well-known enterprises to increase its market share in the production/processing of coke, refined chemicals, new materials, and new energy products. In the long run, the Group will maintain its leading position in the coke and refined chemicals industry and create significant value for its shareholders.
About China Risun Group Limited
China Risun Group Limited is the world’s largest independent producer and supplier of coke by volume in 2022, according to Frost & Sullivan. China Risun is an integrated coke, coking chemicals, refined chemicals and hydrogen energy products producer and supplier and relevant operation management services provider in China and occupies leading positions in a number of refined chemicals sectors both in China and globally. The vertically-integrated business model together with more than 27 years of experience in the coal chemicals industry production chain has enabled China Risun to further tap the downstream refined chemicals markets and hence diversify its income sources and create greater value.
China Risun has been listed on the main board of the Hong Kong Stock Exchange since March 2019 and is now included in various index series, including the Hang Seng Composite Index, Hang Seng Composite Industry Index – Materials, Hang Seng Composite MidCap Index, Hang Seng Stock Connect Hong Kong Index, Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index, Hang Seng SCHK Mainland China Companies Index, Hang Seng SCHK ex-AH Companies Index, Hang Seng Stock Connect Hong Kong Composite Index, Hang Seng Large-Mid Cap (Investable) Index, Hang Seng Large-Mid Cap Low Volatility Comprehensive Index, Hang Seng Large-Mid Cap Quality Comprehensive Index, Hang Seng Large-Mid Cap Low Size Comprehensive Index, Hang Seng Large-Mid Cap Dividend Yield Comprehensive Index, Hang Seng Large-Mid Cap Momentum Comprehensive Index, Hang Seng Large-Mid Cap Value Comprehensive Index, Hang Seng Large-Mid Cap Equal Weighted Factor Mix (QVLM) Index and Hang Seng Large-Mid Cap Risk Parity Factor Mix (QVLM) Index and Hang Seng Shipping Index. China Risun is also included in FTSE GEIS: FTSE Global Small Cap Index, FTSE Global All-Cap Index (LMS) and FTSE Global Total-Cap Index (LMSu).
For more details, please visit http://www.risun.com/En/
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