After four consecutive quarters in red, ending up with a total drastic loss of RMB 282m ($42.86m) in 2016, the interim report of 2017 for Hangzhou Hangyang gives a net profit of RMB 98.33m ($14.95m) to shareholders.
This demonstrates a rebound of 275.3% for the group from a loss of RMB 56.11m ($8.53m) for the first half of 2016. Hangyang, the largest air separation equipment manufacturer in China, earned a total of RMB 2,914.52m ($443m) in the first half of 2017, representing an increase of 32.5% from RMB 2,119.50m ($322.16m) in the first half of 2016.
Manufacturing and supply of air separation equipment contributes RMB 878.85m ($133.59m) to the total revenue, an increase of 108.9% compared with the same period in 2016, and also represents 30.2% of the total revenue. On the other hand, sales of industrial gases contribute RMB 1,801.72m ($273.86m), an increase of 22.6% from the same period in 2016 and represents 61.8% of the total revenue.
The group explains the metallurgy industry and the chemical industry have signs of recovery, therefore the demand of the air separation equipment market has substantially increased compared with the market in 2015. They make use of the opportunity to sign equipment contracts in 2016 and the total contract sum reached RMB 2588m ($393.38m), therefore setting a good foundation for the equipment business in 2017.
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