Overview
CHINA RISUN GP (1907.HK), founded in 1995, has grown into a leading integrated producer, supplier, and service provider of coke, coking products, fine chemicals, and hydrogen energy products in China and globally. According to a 2024 industry report by Frost & Sullivan, the company is the world’s largest independent coke producer and supplier; the world’s largest processor of crude benzene from coking, the second-largest processor of high-temperature coal tar, and the second-largest producer of caprolactam by capacity. It is also China’s largest producer of phthalic anhydride from industrial naphthalene and methanol from coke oven gas, as well as the largest supplier of high-purity hydrogen in the Beijing-Tianjin-Hebei region by output.
Company performance review
Core Business Under Pressure, Trade Business Becomes the Only Growing Segment
In H1 2025, the company’s revenue was RMB 20.549 billion with a year-on-year decrease of 18.5%. Among this, revenue from the coke and coking products production business was RMB 6.358 billion, down 35.2% YoY, mainly due to supply-demand imbalances, declining coking coal prices, and export challenges, which led to a significant drop in coke prices. Revenue from the fine chemical products production business was RMB 9.096 billion, down 12.6% YoY, primarily because of falling crude oil prices and weak demand, which significantly reduced the average prices of products such as caprolactam and pure benzene. However, losses in the styrene segment narrowed due to improved supply-demand dynamics. Revenue from the operations management business was RMB 1.275 billion, down 47% YoY, mainly as agreements for three projects—Wanshan Chemical, Baoshun Chemical, and Chenyao Chemical—were completed, leading to a decrease in operations management income. Revenue from the trade business was RMB 3.73 billion, up 53.3% YoY, driven by increased trade volume of coke. Revenue from other businesses was RMB 90 million, down 43.2% YoY, mainly due to the completion and sale of real estate projects, which reduced income from commercial housing, partially offset by increased rental income from Risun Building. Profit for the period was RMB 87 million, down 34.9% YoY. Basic earnings per share were 0.66 cents with a decrease of 74% YoY.
Cost Control Drives Profit Improvement, Gross Profit Margin Rises 0.8 Percentage Points YoY
In H1 2025, the cost of sales was RMB 18.862 billion, down 19.23% year-on-year. Breaking it down: The cost of sales for the coke and coking products production business was RMB 5.602 billion, a decrease of 38.3% YoY, primarily due to the continuous decline in coking coal market prices, which led to a corresponding reduction in coal blending costs; the cost of sales for the fine chemical products production business was RMB 8.34 billion, down 12.4% YoY, mainly because raw material prices fell to varying degrees compared to the previous year; the cost of sales for the operations management business was RMB 1.213 billion, a decrease of 47.1% YoY, also influenced by the completion of the three projects mentioned in the revenue section; driven by increased business volume, the cost of sales for the trade business was RMB 3.641 billion, up 57.3% YoY; due to reduced property sales, the cost of sales for other businesses was RMB 66 million, down 56.2% YoY. The gross profit margin was 8.2%, an increase of 0.8 percentage points YoY, reflecting the company’s effective cost control measures. Notably, the gross profit margin for the coke and coking products segment improved by 4.4 percentage points YoY.
Coke Business Strengthens Leading Position with Diversified Growth Drivers
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本科主修市場行銷和英語，並於香港浸會大學獲得經濟學碩士學位。現為輝立証券持牌分析師，主要負責能源和公用事業等板塊的研究。曾在大型銀行、券商和資產管理公司工作，對於期貨和大宗商品衍生品領域擁有銷售、研究分析和市場推廣等工作經驗。 Margaret, a holder of a Bachelor`s degree in Marketing and English and a Master`s degree in Applied Economics from Hong Kong Baptist University, is currently employed as a licensed analyst at Phillip Securities. She specializes in conducting research focusing on the energy and utilities sectors. Prior to her current position, Margaret gained valuable work experience in a large bank, securities firm, and asset management companies. Her expertise lies in sales, research analysis, and marketing within the fields of futures and commodities derivatives.
