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China Risun (01907.HK) Reports Strong 37.7% Net Profit Surge in 2025 Amid Industry Challenges

News Provided by ACN Newswire2026-04-01

HONG KONG, Apr 1, 2026 - (ACN Newswire) -China Risun Group Limited ("China Risun" or the "Company", together with its subsidiaries, the "Group"; Stock Code: 1907.HK), a leading global integrated coke, coking chemicals, and refined chemicals producer and supplier, as well as a relevant operation management services provider, recently announced its audited consolidated results for the year ended December 31, 2025. The financial report reveals that, despite a market environment characterized by cyclical downturns in the prices of major products, the Group achieved a significant increase in net profit through effective cost control, operational optimization, and business structure adjustment, while continuing to make breakthroughs in the fields of hydrogen energy and high-end refined chemicals.

Financial Performance: Profit Growth and Improved Operational Efficiency

For the 2025 financial year, the Group recorded a revenue of approximately RMB 39.286 billion, representing a year-on-year decrease of about 17.4% from RMB 47.543 billion in the Last Year. The decline in revenue was primarily due to an across-the-board drop in the prices of coke and major chemical products, as both the ferrous and chemical industry chains faced a market landscape of "strong supply and weak demand." Despite the top-line pressure, the Group demonstrated strong operational resilience through strict cost control. During the Year, the cost of sales and services decreased by 17.8% year-on-year, outpacing the decline in revenue. Consequently, the Group's gross profit reached RMB 3.064 billion, with the gross profit margin expanding by 0.5 percentage points year-on-year to 7.8%. More notably, the profit for the Year achieved a counter-cyclical growth, reaching approximately RMB 135 million, representing a significant increase of about 37.7% from RMB 97.80 million in the Last Year. Net cash generated from operating activities amounted to RMB 3.46 billion, a year-on-year surge of 140%, far exceeding the net profit, which indicates further enhanced risk-resistance capabilities and significantly improved earnings quality.

Basic earnings per share of the Company for the Year stood at RMB 1.3 cents, a substantial year-on-year increase of 160%, reflecting the growth in profit attributable to the owners of the Company and the positive impact of share repurchases. The Board proposed a final dividend of RMB 0.19 cents per share, amounting to a total of approximately RMB 8.13 million, continuing its solid policy of rewarding shareholders.

Business Highlights: Consolidating Coke Leadership, Expanding Operation Management, and Advancing High-End Chemicals & Hydrogen Energy

As the cornerstone of its business, the Group's coke and coking chemicals manufacturing segment demonstrated distinct cost advantages during the price downtrend cycle. By optimizing coal blending and implementing cost reduction and efficiency improvement strategies, the segment's gross profit margin increased from 8.6% in the Last Year to 12.4%. During the Year, the first coke oven of a new coke project with an annual capacity of 1.8 million tons in Pingxiang, Jiangxi Province commenced operation, further consolidating the Group's economies of scale in production capacity.

The operation management and trading businesses have become vital portfolio components for smoothing out cyclical fluctuations. Although revenue from operation management services decreased due to the completion of certain management agreements, the Group secured two new operation management projects in Jilin and Shanxi provinces during the Year, continuing to expand its industry influence. To date, the Group operates 9 management service projects, mainly distributed across Henan, Jilin, Shanxi, Inner Mongolia, Sichuan, and other provinces, managing a total scale of 8.282 million tons and achieving a 6-year compound annual growth rate (CAGR) of 19.8%. Meanwhile, revenue from the trading business grew by 25.6% year-on-year, effectively supplementing the cash flow.

Innovation and high-end transition remain the core driving forces for the Group's development. In the refined chemicals sector, the Group successfully developed and commenced production of the first domestic 5,000 tons/year amino alcohol (2-Amino-2-methyl-1-propanol) project at its Dingzhou Production Base, thereby becoming the world's second-largest producer of amino alcohol. The product has successfully passed the EU REACH registration, paving the way into high-value-added markets such as high-end coatings and pharmaceuticals. Caprolactam, another core product, maintained its solid market position while continuously optimizing costs through technological innovation.

The accelerated rollout of the hydrogen energy business is one of the most promising growth drivers in the financial report. The Group's high-purified hydrogen production volume increased by 25.7% year-on-year, capturing an approximate 21.8% market share in North China. Crucially, the Group initiated the construction of the nation's first 5 tons/day liquid hydrogen demonstration project at the Dingzhou Production Base in Hebei Province. This project has been selected for the national-level list of the first major technological equipment in the energy sector, marking a significant technological breakthrough in the hydrogen storage and transportation segment and laying a solid foundation for future commercial applications.

Financial Strategy: Robust Cash Flows and Shareholder Returns

During the Year, net cash generated from operating activities improved significantly to approximately RMB 3.465 billion, primarily benefiting from the strengthened management of trade receivables. Despite actively managing capital expenditures for future development, the Group maintained ample liquidity. As of the end of the reporting period, the Group's unutilized banking facilities amounted to approximately RMB 8.036 billion, providing strong support for ongoing business expansion.

The Group also actively utilized capital market tools to optimize its capital structure and reward shareholders. During the Year, the Company spent approximately RMB 180 million to repurchase shares and granted share awards to nearly 800 employees under the Share Award Plan, aiming to incentivize the team and share the fruits of corporate development.

Future Outlook: Launching the New Five-Year Plan, Focusing on Green Transition and Industrial Upgrade

In its latest financial report, the Group announced that it has formulated its Seventh Five-Year Development Plan for the period from 2026 to 2030. Looking ahead, China Risun will continue to increase its market share in the coke, refined chemicals, and hydrogen-energy products markets through capacity expansion, mergers and acquisitions, and joint ventures. Particularly in the hydrogen energy sector, the Group will actively seize policy opportunities under China's "15th Five-Year Plan," aiming to become a clean and low-carbon hydrogen energy supplier, while exploring the industrialization of liquid hydrogen and the construction of integrated hydrogen-energy stations.

Faced with a complex market environment in 2025, the Group achieved counter-cyclical profitability improvements relying on its integrated and industrial-park-based operational model, exceptional cost-control capabilities, and forward-looking R&D innovation. Entering the new Five-Year Plan cycle, China Risun will resolutely drive the green transition and high-end upgrade of the coking industry, cultivate refined chemicals into a crucial "second growth curve", continuously expand its global footprint, and deepen technological innovation. The Group is committed to achieving a higher level of sustainable development and accelerating its green and low-carbon transformation, while continuing to deliver long-term value and superior returns to shareholders.

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