The economic situation in China seems to be reflected by the interim results of the largest air separation plant manufacturer Hangzhou Hangyang who recently announced their interim results for 2014.
The operating turnover for the first six months in 2014 is (RMB) 2,603m, an increase of 7.36% as compared to (RMB) 2,425m for the same period in 2013. Net profit attributable to the shareholders has dropped drastically from (RMB) 121.9m in 2013 to (RMB) 44.8m in 2014, representing a decline of 63.24%.
The management explains in the announcement that for the report period, the general domestic economic situation is still harsh, and due to the impact both from insufficient drive of economic growth and adjustment of industry policy, the development of the air separation plant market is weak as expected.
The demand of ASUs from the chemical industry has declined and the market of medium and small scale ASUs has contracted. However, investment in the new coal chemistry has increased, representing opportunities for large scale and very large scale ASUs. The company has won a contract of two sets of 90,000 Nm3/h ASU for Jingneng project.
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