(Hong Kong, March 15, 2024) – China Risun Group Limited (“China Risun”, or the “Group”, stock code: 1907.HK), a leading global integrated coke, coking chemicals and refined chemicals producer and supplier and relevant operation management services provider in China, announced today its annual results for the year ended 31 December 2023 (“the reporting year”). During the reporting year, the Group has implemented an international strategic plan for its coke business and continues to expand production capacity for its chemicals and hydrogen business. It was committed to leading the digitalization in the coke and chemicals industry by continuous innovation throughout the process of “sale-transportation-manufacturing-supply-research”.
Revenue for the year ended December 31, 2023 was up 6.8% to approximately RMB46.1 billion. Profit attributable to owners of the Company was approximately RMB 860.8 million. Basic earnings per share of the Company was RMB19 cents. To share the fruit of its outstanding results performance, the Board determined to declare a final dividend of RMB1.20 cents per share (equivalent to HK1.32 cents per share).
Coke business has embarked on an international strategic deployment
In 2023, the Group completed the coke production facility with an annual production capacity of 3 million tons in Huhhot Production Base in June 2023. Also, the Group was constructing another coke production facility in Sulawesi Production Base by phase: two coke ovens out of eight coke ovens were completed and commenced operation in 2023; and subsequently in the first quarter of 2024, the third coke oven was also completed and commenced operation. The Group is in the development process of Pingxiang Production Base in Xiangdong Industrial Park by constructing coke facilities with an annual coke production capacity of 1.8 million tons. Moreover, the Group will continue exploring different potential projects of mergers and acquisitions in China and overseas. It will explore greater use of coals from different countries in the world and digitization of new technologies to maximize the price spread of the Group’s products.
Profitability of the Chemicals business continues to improve
In 2023, the Group's total annual production capacity of caprolactam reached 75 tons, with an export quantity of 15,831 tons. This represents a year-on-year growth of 371%. The products were exported to 9 countries and regions, including newly developed customers in Colombia, Indonesia, Saudi Arabia, and other countries. For the new market of aromatic chemicals, the Group newly built an annual processing capacity of 0.36 million tons of crude benzene hydrogenation and renovated an annual processing capacity of 0.20 million tons crude benzene hydrogenation into a single production base with obvious scale advantages and significant comprehensive benefits, resulting in annual processing capacity of 0.56 million tons in total in Tangshan Production Base.
Top Hydrogen production capacity in Beijing-Tianjin-Hebei region
In 2023, the Group's hydrogen sales volume reached 9.3 million cubic meters, representing a year-on-year growth of 2.36 times. Risun Hydrogen Energy successfully passed the “Low Carbon Hydrogen, Clean Hydrogen and Renewable Hydrogen Standards and Evaluation” certification of the National Hydrogen Energy and Fuel Cell Vehicle Demonstration Evaluation Platform, where the Group became the first domestic enterprise to officially obtain clean hydrogen certification for demonstration city clusters. The Group is going to participate actively into the hydrogen industrialization plan in different cities in the PRC, including Dingzhou, Xingtai and Baoding in Hebei Province and Hohhot in Inner Mongolia, etc. The Group will also investing in new hydrogen-energy products project in Pingxiang Production Base.
Looking ahead, the Group will continue to increase the market share in independent coke market and certain refined chemicals market in China and overseas by expanding the annual coke and refined chemicals production/processing capacity, exploring and focusing on new refined chemicals market with large potential demand and relatively small domestic supply together with entering into different operation management services in order to promote deep and instant market influence and power to selling price. In addition, the Group will explore the opportunities to build up hydrogen- energy mother island and energy integrated station in Beijing-Tianjin-Hebei area.
