Henan Jinyuan Hydrogenated Chemicals (2502) H1 2024 earnings summary

Executive summary

• H1 revenue rose 48.9% YoY to RMB1,602.1m, while gross profit fell to RMB71.8m and profit for the period declined to RMB44.9m.

• Zhengzhou and Jiyuan hydrogen stations operated at full capacity; Gongyi began operating in Q2, supporting continued hydrogen-business expansion.

Financial highlights

• Gross margin fell to 4.5% from 9.9% and net profit margin to 2.8% from 6.1%; raw-material prices outpaced selling-price increases in refined chemicals.

• Profit before tax declined 33.4% YoY to RMB54.9m; total comprehensive income fell 31.3% to RMB45.1m.

• Operating cash flow was RMB104.2m; cash and cash equivalents reached RMB388.2m, up from RMB300.7m at year-end 2023.

Outlook and guidance

• Jiaozuo and Huling hydrogen stations were expected to begin operations in Q4 2024; Dengfeng station completion was targeted for September 2024.

• Planned station investments were RMB3.5m in Jiaozuo, RMB3.8m in Dengfeng and RMB15m in Huling, funded by internal resources and listing proceeds.

• Management planned to refinance or repay borrowings at maturity using internally generated funds and expected replacement financing to remain available under prevailing market conditions.

• Capacity was 400,000 tonnes p.a. for hydrogenated benzene-based chemicals, 72,000 tonnes p.a. for LNG and 317.0 million cubic meters p.a. for hydrogen, including joint-venture capacity.