(Hong Kong, 28 October 2022) –China Risun Group Limited (“China Risun”, or the “Group”, stock code: 1907), a leading global integrated coke, coking chemicals and refined chemicals producer and supplier and relevant operation management services provider in China, announced that its subsidiary Xingtai Risun Coal Chemicals Limited (“Xingtai Risun Coal Chemicals”) has signed a management service agreement with Shandong Baoshun Chemical Technology Co., Ltd. (“Baoshun Chemical”) and Shandong Chenyao Chemical Technology. Co., Ltd. (“Chenyao Chemical”). Leveraging China Risun’s leading advantages such as experienced operations management concepts and technology, Baoshun Chemical and Chenyao Chemical have commissioned Xingtai Risun Coal Chemicals to provide operation management services to Baoshun Chemical’s coal tar, deep processing plant and Chenyao Chemical’s crude benzene plant in Juye Chemical Industrial Park, with a management service period of 20 years.
Both Baoshun Chemical and Chenyao Chemicals are located in Juye Chemical Industrial Park in Heze, Shandong Province, and specialize in the deep processing of coal tar and the production and technology research and development of benzene hydrogenation. They have a wide range of tar and benzene products, enabling them to achieve significant synergies with China Risun's business. Their proximity to the Group’s Yuncheng production base and Dongming production base supports the upstream and downstream operations of the industrial chain. Executing the management service agreements has enabled China Risun to take a step forward towards its goal of expanding its business presence across China and the world. China Risun has set up Juye Risun Chemical Co., Ltd., which is responsible for the implementation of the management service agreements and the performance of standardized management as soon as possible in accordance with China Risun's model. This relationship will enhance the quality of independent operations in the market and realize collaborative efficiencies and mutually beneficial development.
Capitalizing on its geographical advantage, the project will provide low cost production of raw materials with stable quality for the Group’s Yuncheng production base and Dongming production base to meet their demand for pure benzene. It will also strengthen upstream and downstream linkages and maximize profit. And, it will help bolster the Group's carbon material and aromatic hydrocarbon industry chains, expand the Group's business coverage, improve the business volume and capabilities of the Group's operation management services and reinforce the Group's asset-light business, resources and improve its cost advantages. These positive factors, will enable the Group to seize the growth opportunities in the coke and refined chemicals markets, achieve higher gross profit margin, consolidate its market leading position and create more substantial and favourable conditions.
