Henan Jinyuan Hydrogenated Chemicals (2502) H2 2024 earnings summary

Executive summary

• Revenue rose 33.1% to RMB3,102.0 million, but profit for the year fell to RMB11.5 million from RMB82.3 million; owners recorded a RMB16.0 million loss.

• Higher refined-chemical capacity lifted sales volumes, while weaker gross margin, a refined-oil consumption-tax adjustment and higher financing costs sharply reduced earnings.

Financial highlights

• Revenue was RMB3,102.0 million vs RMB2,330.2 million; gross profit was RMB71.6 million vs RMB148.8 million, and gross margin was 2.3% vs 6.4%.

• Profit before tax fell to RMB12.0 million from RMB98.9 million; income tax expense was RMB0.5 million vs RMB16.6 million.

• Consolidated profit was RMB11.5 million vs RMB82.3 million; attributable to owners, results shifted to a RMB16.0 million loss from RMB54.9 million profit.

• Basic EPS was a loss of RMB0.02 vs earnings of RMB0.09.

Outlook and guidance

• Plans include upgrading refined-chemical facilities and extending the industrial chain, improving LNG production efficiency, and expanding across hydrogen production, transport, storage, refuelling and use.

• Listing proceeds for hydrogen stations and upstream/downstream investment are expected to be used during 2025–2027; implementation was delayed by market conditions.

• Four hydrogen refuelling stations were operating by year-end; the two new stations opened in 2024 and recorded sales of 128.65 tonnes and 20.12 tonnes.