Henan Jinyuan Hydrogenated Chemicals (2502) H2 2023 earnings summary

Executive summary

• Revenue rose 3.4% YoY to RMB2,330.2m, while profit attributable to shareholders fell to RMB54.9m from RMB138.2m as gross margin compressed.

• Capacity expansion in hydrogenated benzene chemicals and new hydrogen stations advanced the shift toward hydrogen energy.

Financial highlights

• Revenue was RMB2,330.2m vs RMB2,254.5m; gross profit declined to RMB148.8m from RMB287.7m.

• Profit before tax fell to RMB98.9m from RMB233.5m; net income was RMB82.3m vs RMB194.1m, and owners’ attributable profit was RMB54.9m vs RMB138.2m.

• Basic EPS was RMB0.09 vs RMB0.26; gross margin declined to 6.4% from 12.8%.

• Finance costs decreased to RMB6.1m from RMB8.0m, while selling and distribution expenses increased to RMB18.4m from RMB15.4m.

Outlook and guidance

• Plans include building 15 hydrogen-refuelling stations in Zhengzhou over 3–5 years; in 2024, stations or integrated energy stations are planned in Jiaozuo and Zhengzhou.

• Hydrogen strategy targets fuel-cell vehicles and a broader chain covering production, transport, storage, refuelling and use; 2024 investments are to use internal resources and listing proceeds.

• Continued priorities include improving chemicals production efficiency, safety and environmental protection, and improving LNG production stability while lowering costs.