China Risun’s Three-million-ton* Coking Chemical and Hydrogen Production Comprehensive Utilization Project in Huhhot Production Base in Full Operation

    (Hong Kong, 28 Jun 2023) - 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 the 300,000 ton*/year synthetic ammonia facility of the Three-point-six-million-ton*   coking chemical and hydrogen production comprehensive utilization project in China Risun's Hohhot Production Base (the “Base” or the “Project”) put out ammonia and high-quality liquid ammonia were produced at 09:00 on 19 June. At that, the Project is completed and in full operation. The overall project schedule for implementation is as follows:

    With all the facilities of the Project in operation, the Base’s capacities for main products are: three million tonnes of coke, 300,000 tonnes* of synthetic ammonia, 100,000 tonnes of methanol, 480 million cubic meters of hydrogen, 140,000 tonnes of tar, 47,000 tonnes of crude benzene, and 500 million kwh of electricity, with total annual output value up to RMB10 billion. It offers more than 2,000 direct jobs, and creates more than 10,000 employment opportunities in associated industries.

    The Project employs the world's most advanced tkIS-6.78-I (with a 65-hole coking chamber) tamping coke oven designed by ThyssenKrupp AG from Germany, the EnviBAT single-hole coking chamber pressure regulation system, Cokemaster automation system and basement safety grating positioning detection system, enabling it to achieve in-check but unmanned operations, as well as automated basement inspections and automatic coke oven heating and temperature measurement. The Project has a complete industrial chain, with pipelines of the different coking and chemical devices all connected, upstream and downstream industrial chain all linked up, facilitating sharing of raw materials, products, technologies and common supplies, as well as integrated use of by-products/exhaust gas/waste water/waste residues/residual heat/residual energy. It has I place six major centers, namely a production control center, an energy management center, a power center, a logistics center, an innovative R&D center and a life service center. In the core of the city clusters around Hohhot, Baotou, Erdos and Yulin, overlooking the coal-based chemical base in Ordos on the riverside across, the Base is served by its own dedicated railway and dual-purpose wagon tippler for open wagons and containers. The additional exclusive coking railway line planned for the Base has been included in the "14th Five-Year Plan" of the Inner Mongolia Autonomous Region. The Project has outstanding advantages in aspects including new energy, new materials, hydrogen energy guarantee and industry blend. The Project’s by-product coke-oven-gas can be used as a replacement clean energy, for residue heat heating and steam supply. With this Project, and on the base of the 5000Nm3/h high purified hydrogen production facility, and five integrated hydrogen, electric, oil and gas energy stations already built, it will expand development of hydrogen energy and other businesses.

    The Project, as a high-quality transformation development project of the coking industry, has received high attention and strong support from all levels of party committees and governments, especially the Hohhot Municipal Party Committee and Municipal Government. It has been included as a major project in the modern industrial clusters in the Inner Mongolia Autonomous Region and Huhhot City, and has been named among key projects in the work report of the Huhhot Municipal Government for three consecutive years. Risun China Gas Energy Limited has also made it among "Chain-leader Enterprises of Huhhot’s Six Major Industrial Clusters" (first batch). The Group has lived up to expectations and achieved "signing contracts, resuming production and making profit” all in the same year after it set foot in Huhhot in August 2019, being deemed an industry miracle. It revitalized the original companies’ old assets worth RMB800 million. It planted the firm roots for Huhhot Production Base to realize “continuous breakthrough” starting from the Project kicking off in September 2020 amid adversities, putting out products of value. It also enabled Risun China Gas Energy Limited, as the first company in the Tuoqing Economic Development Zone making annual revenue exceeding RMB10 billion, to contribute to helping the zone develop into a more than RMB100 billion worth industrial park. It has also opened up space and perspective for China Risun to continuously consolidate the foundation for cooperation, broaden the scope of cooperation, elevate the level of cooperation and create new cooperation mechanism for its business in Inner Mongolia.

    Construction of production base is an important vehicle for development of the industry and it is also a proven industrial growth model in both the East and West to achieve industrialization, urbanization and modernization. Risun has also transformed its development model from market and investment-driven to innovation-driven. The Project just started full operation employed the Group’s “integrated, scalable, intensive, ecological and intelligent” production base construction model and was also designed and built based on the Group's “unified planning and development, unified infrastructure, unified operation and management, unified energy management, unified logistics and transportation, unified safety and environmental protection and unified R&D and innovation” production base management model. In the days ahead, the Project will observe the Group's project construction principle of "starting work is starting production, starting production is producing on targets, to be on target is to attain high efficiency”, so as to fully achieve all set production targets and expected benefits.

    “National strategies are what underscore Risun’s key strategies and the needs of the times tell Risun the way to go.” That is the basic development philosophy upheld by the Group. In developing the Project, the Group heeded the policy guidance and industrial plan of the Inner Mongolia Autonomous Region and the Municipal Party Committee and Municipal Government of Huhhot City in integrating the Project into the local industrial and ecological chains, exploring in depth the value chains that fit in with local economic and social development, and planning systematically the third phase of the Project. On 11 February this year, Huhhot City and Risun Group signed a new cooperation agreement, then on 20 March, the Government of Inner Mongolia Autonomous Region held an Investment Promotion Conference in Beijing, at which Risun Group and Huhhot City signed an investment framework agreement that covers 12 key projects, including establishing a new complete refined chemical industrial chain and R&D operation center. When all these projects are in operation, the Group expects their annual output value to reach RMB54.1 billion and contribute RMB14.1 billion in profit tax, and provide about 5,000 direct jobs and job opportunities to more than 20,000 people in associated industries. By then, the Huhhot Production Base will not only be the largest production base of Risun Group, but also a unique green, low-carbon, energy-saving and environmentally-friendly circular economic production base that marries “energy and chemical”, as well as a leading benchmark production base in Inner Mongolia, China and the world.

    The society is advancing, the economy has kept developing, industries are upgrading and the market is changing, which is a perpetual process and those failing to improve will be left behind in the competition. In the past 28 years since it was founded, China Risun has expanded its business footprint from Hebei and Beijing to across the country and overseas. It has strived to match and learn from the world's strongest and most outstanding companies while also reflected on its own strengths and weaknesses, carried out reforms and embarked on innovation and re-invented itself. Looking ahead, Risun will stay vigilant and insist on heading in the right direction, walking the right path and observing diligently its strategy while exercising flexibility. It will put in every effort and, via its every successful project, contribute its greatest strength to society and the country’s industrialization, urbanization and modernization. Specifically regarding China Risun Huhhot Production Base, regarding its future business development in Hohhot and Inner Mongolia, the Group will closely follow the instruction given by the Secretary General of the Chinese Communist Party Xi Jinping during his visit to Inner Mongolia, which is “the top priorities for Inner Mongolia in development are to promote transformation and upgrade of the traditional energy industry, vigorously develop green energy and expand and strengthen the energy bases there of national importance". As such, the Group will actively realize its leading role as a "Chain-leader Enterprise of Huhhot’s Six Major Industrial Clusters" and firmly seize the opportunities arising from Inner Mongolia seeking to build itself into an important energy and strategic resource base of the country. By drawing on the leadership of Risun Coking and integrating regional coal resources in Inner Mongolia, the Group will help transform and develop the local green and modern coal coking industry giving resources added value. The Group will also press on with vertically integrated development of coal tar processing, alcohol ammonia-compound fertilizer, hydrogen energy, SNG and other industrial projects, not only to ensure the energy supply base of Tuqing Economic Development Zone is well established, but also lead the pack in the realms of coal-based new material, carbon-based new material and hydrogen energy. The Group, while performing its role as the energy security base in the Tuoqing Economic Development Zone, will work on expanding its industrial, innovation and value chains to other regions to allow to become an energy security base of Hohhot and all of Inner Mongolia. In addition to providing capital and bringing in mature business models, by contributing its advanced energy and chemical industry experience and strong environment protection strengths, its core capabilities, competitive advantages gathered over its close to 30 years’ industrial development, plus its patents and proprietary technologies, also its prime location in Hohhot, the capital city of the Inner Mongolia Autonomous Region, boasting abundant resources, clear geographical presence, excellent business environment and being a modern chemical and new material industrial base, and the Group’s persistence focus on operating the most suitable businesses in the most suitable places, developing coal-based special fuels and carbon-based biodegradable materials, comprehensively promoting high-end, diversified and green development of the modern coal chemical industry and hastening construction of intelligent modern coal chemical, new energy and new material industry bases, the Group is helping the modern coking chemical industry in Inner Mongolia craft a new and brilliant name.