China Risun’s 2021 Annual Profit Attributable to Owners Ups 58.1% to RMB2.61 billion

Mar 29, 2022 | Business

China Risun Group Limited (“China Risun”, or the “Group”, stock code: 1907), a leading global integrated coke, coking chemicals and refined chemicals producer and supplier and relevant operation management services provider in China, has announced its annual results for the year ended 31 December 2021 (“the reporting year”). Profit attributable to owners up 58.1% to RMB2.61 billion, achieving a 3-year consecutive growth since its listing in 2019.

Revenue for the year ended 31 December 2021 was RMB38.4 billion, representing an increase of 94.2% year-on-year. Gross profit margin was 14.4% and net profit margin was 6.8%. Basic earnings per share of the Group was RMB61 cents, representing an increase of approximately 52.5% as compared to the figure in 2020. To share the fruit of its outstanding results performance, the Board determined to declare an annual final dividend of RMB6.3 cents per share (equivalent to HK7.7 cents per share), representing no less than 30% of the net profit of the Group.

On 7 March, the Group officially switched from a small-cap stock in the Hang Seng Index to a mid-cap stock, and has been included in a number of sub-indexes such as the Hang Seng Large-Mid Cap (Investable) Index and the Shanghai-Hong Kong Stock Connect.

Continued expansion of core businesses in coke and refined chemicals industry
Globalization strategy is gradually being implemented

In 2021, the price of coke reached a record high in China, and the profitability of the industry continued to improve. As the core profit source of China Risun, the coke business performed very well. With its national market layout, advantage from large-scale operations and advanced coal blending technology, economies of scale continued to emerge. In 2021, the Group’s coke business volume reached 11.5 million tons. The total number of production bases increased to eight, and its core business continued to improve.

During the reporting year, the Group continued to expand its market share and gradually implemented its business globalization strategy. The Group’s joint venture in Hohhot, Inner Mongolia, is expanding its coke production facilities and is expected to complete in different phases and eventually approximately 3 million tons of coke will commence in operation. Starting from 2021, the Group actively explored opportunities in different places of Asia, for example Sulawesi province, Indonesia. This project is the first overseas coking project held by China Risun. The Group has also participated in two coking projects with an annual output of 4.7 million tons and 3.9 million tons, respectively, in the region. Other than Japan, the Group was considering setting up subsidiaries for trading of raw materials of the coke and refined chemicals industry in Singapore and Indonesia, reflecting the progress its business globalization strategy has made.

China Risun has also been expanding its business through methods such as operations management. During the reporting year, China Risun completed the acquisition of two companies and have four operations management companies, expanding the development space and brand influence of its operations management segment, and further consolidating its leading position in the coke and refined chemicals industry.

Chemical business steadily expanding
Expansion of high value-added products extending industrial chain

The refined chemicals segment is another major growth path for China Risun. With the recovery of the global economy and financial easing, chemical products have shaken off the impact of pandemic, and the prices of most products have returned to pre-pandemic levels, which has significantly improved the profitability of the refined chemicals segment. Revenue of this segment up 115.2% to RMB12.6 billion.

China Risun has continued to enlarge the capacity of its refined chemicals production facilities. In addition to the 300,000-ton/year styrene production line that was put into operation at the end of 2020, its two-phase caprolactam expansion project is also progressing steadily. In August 2021, the capacity expansion project at the Group’s Dongming production base, which comprised capacity expansion, quality improvement and consumption reduction, was successfully completed, expanding the caprolactam capacity from 200,000 tons to 300,000 tons a year, and increasing the Group’s existing caprolactam production capacity to 450,000 tons/year. In addition, the second phase of the 300,000 tons/year caprolactam project in the Group’s Cangzhou production base is under construction and is expected to commence production in mid-2022. By then, the Group’s caprolactam production capacity will reach 750,000 tons a year, which is expected to be the leading player in China.

Actively deployed new energy business to become a clean and low-carbon energy supplier

As a global leader in coke production, the Group commenced its entry into the hydrogen energy field in 2020, capitalizing on its advantages from the industrial chain of coke-oven-gas-based hydrogen. Entering 2021, the Group has further developed its hydrogen energy business by actively participated into the hydrogen industrialization plan in Hebei Dingzhou, Inner Mongolia Hohhot and Hebei Xingtai, China. Focusing on the rapid development of hydrogen energy industry in Beijing-TianjinHebei area, the Group is committed to develop from production, storage, transportation, hydrogenation to usage together with radiation of intelligent supply of hydrogen to the whole country with advanced technology and more customer-oriented services. In addition, with the popularity of fuel cell vehicles and the wide application of hydrogen energy in the industrial sector, the Group is expected to become a highly competitive hydrogen energy supplier in Northern China with its advantages in low-cost hydrogen production.

Looking forward, the Group will make use of different ways of operation management, merger and acquisition together with the setup of joint ventures with well known geographical large enterprises to increase its market share by production/processing of coke and refined chemicals. The Group will also try to seize opportunities from the explosive growth of hydrogen energy against the backdrop of carbon peaking and carbon neutrality. It is expected to greatly promote the green and low-carbon development of the industry and contribute to the implementation of the national “3060” dual-carbon target strategy. The development plan of the Group’s hydrogen energy business has undoubtedly become a model for the transformation and upgrading of the traditional coking industry into a clean energy enterprise, and has also made positive contributions to the Group’s high-quality development.

About China Risun Group Limited
China Risun Group Limited is the world’s largest independent producer and supplier of coke by volume in 2021, according to Frost & Sullivan. China Risun is an integrated coke, coking chemicals, refined chemicals and hydrogen energy products producer and supplier and relevant operation management services provider in China and occupies leading positions in a number of refined chemicals sectors both in China and globally. The vertically-integrated business model together with more than 27 years of experience in the coal chemicals industry production chain has enabled China Risun to further tap the downstream refined chemicals markets and hence diversify its income sources and create greater value.

China Risun has been listed on the main board of the Hong Kong Stock Exchange since March 2019 and is now included in various index series, including the Hang Seng Composite Index, Hang Seng Composite Industry Index – Materials, Hang Seng Composite MidCap Index, Hang Seng Stock Connect Hong Kong Index, Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index, Hang Seng SCHK Mainland China Companies Index, Hang Seng SCHK ex-AH Companies Index, Hang Seng Stock Connect Hong Kong Composite Index, Hang Seng Large-Mid Cap (Investable) Index, Hang Seng Large-Mid Cap Low Volatility Comprehensive Index, Hang Seng Large-Mid Cap Quality Comprehensive Index, Hang Seng Large-Mid Cap Low Size Comprehensive Index, Hang Seng Large-Mid Cap Dividend Yield Comprehensive Index, Hang Seng Large-Mid Cap Momentum Comprehensive Index, Hang Seng Large-Mid Cap Value Comprehensive Index, Hang Seng Large-Mid Cap Equal Weighted Factor Mix (QVLM) Index and Hang Seng Large-Mid Cap Risk Parity Factor Mix (QVLM) Index. China Risun is also included in FTSE GEIS: FTSE Global Small Cap Index, FTSE Global All-Cap Index (LMS) and FTSE Global Total-Cap Index (LMSu).

For more details, please visit http://www.risun.com/En/






Topic: Press release summary

Hong Kong – People’s Bank of China to issue Renminbi Bills through Central Moneymarkets Unit of Hong Kong Monetary Authority

Feb 15, 2022 | International

People’s Bank of China to issue Renminbi Bills through Central Moneymarkets Unit of Hong Kong Monetary Authority

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The following is issued on behalf of the Hong Kong Monetary Authority:

 

     The People’s Bank of China (PBOC) will issue Renminbi Bills through the Central Moneymarkets Unit of the Hong Kong Monetary Authority (HKMA). Please find attached the tender notice and the tender information memorandum of the Renminbi Bills to be issued by the PBOC. Please also find attached the tender-related information provided by the Issuing and Lodging Agent through the HKMA.

Hong Kong – People’s Bank of China will issue Renminbi Bills through Central Moneymarkets Unit of Hong Kong Monetary Authority

Dec 15, 2021 | International

People’s Bank of China will issue Renminbi Bills through Central Moneymarkets Unit of Hong Kong Monetary Authority

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The following is issued on behalf of the Hong Kong Monetary Authority:



     The People’s Bank of China (PBOC) will issue Renminbi Bills through the Central Moneymarkets Unit of the Hong Kong Monetary Authority (HKMA). Please find attached the tender notice and the tender information memorandum of the Renminbi Bills to be issued by the PBOC. Please also find attached the tender-related information provided by the Issuing and Lodging Agent through the HKMA.

Focus on the A Shares Leaders, Capture the China Opportunities: E Fund (HK) MSCI China A50 Connect ETF launched on HKEX

Dec 15, 2021 | Business

E Fund Management (HK) Co., Ltd. is pleased to announce today (Tuesday) the launch of E Fund (HK) MSCI China A50 Connect ETF (“EFUND MSCI A50”) on the HKEX. The stock code is 3111. The product is launched by E Fund HK. The fund tracks the MSCI China A50 Connect Index, which selects 50 stocks from the component stocks in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, focusing on China’s core assets.

IMPORTANT INFORMATION:

1.E Fund (HK) MSCI China A50 Connect ETF (the “Fund”) is a passively managed exchange traded fund (“ETF”) and is traded on the Stock Exchange of Hong Kong (“SEHK”) like stocks. The investment objective is to provide investment result that, before fees and expenses, closely corresponds to the performance of the MSCI China A 50 Connect Index (the “Index”). The Manager will adopt a combination of a physical representative sampling strategy and a synthetic representative sampling strategy. For direct investments in Index Securities listed on the Shanghai and Shenzhen stock exchanges, the Fund will invest primarily through the Stock Connect and/or the Manager’s QFI status. By adopting a synthetic representative sampling sub-strategy (which involves investing up to 50% of its NAV in FDIs), the Fund will only invest directly in funded total return swap transaction(s)

2.The Fund is subject to a) Investment risk, b) Equity market risk, c) New Index risk, d) Concentration risk and Mainland China market risks, e) Risks associated with the Stock Connect and QFI regime , f) Risks associated with investments in FDIs, g) Trading differences risk, h) Passive investments risk,, i) Trading risk, j) Tracking error risk, k) Dual counter risks, l) PRC tax risk, m) Reliance on market maker risk, n) Other currency distribution risk, o) Termination risk..

3.Based on professional and independent tax advice, (i) the Fund will make relevant provision of 10% on dividend and distribution income from A-Shares if PRC corporate income tax (“CIT”) is not withheld at source at the time when such income is received (where CIT is already withheld at source, no provision will be made) and (ii) the Manager does not currently make withholding income tax provision for gross realised or unrealised capital gains derived from trading of A-Shares (either via Stock Connect or QFI).

4.There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realised via QFI or Stock Connect on investments in the PRC (may have retrospective effect). Any increased tax liabilities on the Fund may adversely affect the Fund’s value. If taxes are levied in future on the Fund for which no provision is made, the Fund’s NAV will be adversely affected. In this case, the then existing and subsequent investors will be disadvantaged as they will bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Fund.

5.You should not make any investment decision solely based on the information on this material alone. Please read the relevant offering documents for details including the risk factors before making any investment decisions. Investment involves risk. Past performance is not indicative of future performance. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.

The MSCI China A50 Connect Index has three major characteristics: Firstly, the historical performance of the index is better than other main broad-based indexes. From the perspective of historical cumulative return rate, the price index return rate and the total return performance of investments with the dividends reinvested have all outperformed the CSI 300, FTSE Russell A50 and MSCI China A-Share Index (the parent index) in the past 10 years. Secondly, the industry distribution is balanced with a high proportion of new economy. Compared with other main broad-based indexes, the MSCI China A50 Connect Index has significantly increased the proportion of new energy, electronics, medicine and other sectors. Thirdly, the component stocks comprise leader companies in various industries, with excellent profitability and growth, which are regarded as China’s core assets, which are highly recognized by foreign institutional investors. It is an effective investing tool for investors to focus on the A Shares leaders and capture the China opportunities.

MSCI Company highly regards the importance of Chinese assets. In May 2018, MSCI officially announced the inclusion of China A Shares in its flagship index system. Through step-by-step implementation, MSCI increased the inclusion ratio of China A shares from 5% to 20% in the MSCI Emerging Markets Index in 2019. The market expects the proportion of MSCI’s inclusion of China A Shares may increase to 50% in 2027, which is equivalent to an average of 200-400 billion RMB flowing into China A Shares from overseas assets each year.

HKEX Co-Head of Markets Wilfred Yiu said: “We warmly welcome the listing of E Fund (HK) MSCI China A50 Connect ETF that tracks the MSCI China A 50 Connect Index. It will join the increasingly diversified Connect product ecosystem in Hong Kong, enriching the choice for investors around the world, and providing another investment option for those seeking exposure to China assets. HKEX looks forward to working with its clients and the market on continuing to build Hong Kong’s attractiveness as an offshore RMB hub and international trading, risk management and capital raising centre.”

Doug Walls, APAC Head of Index Products at MSCI, said, “The MSCI China A 50 Connect Index follows an innovative sector-balanced approach that aims to ensure diversified and balanced representation of the broader China A market. It is designed to enable international and domestic investors to track China’s sector leaders and get exposure to the overall market, including the potential opportunities in China’s new economy. The index marks another milestone since the inclusion of A-shares in MSCI indexes. At the same time, index-linked ETFs and other financial products will provide global investors with more opportunities to access the broad and diversified China market.”

Gaohui Huang, CEO of E Fund Management (HK), said, “With the increase of China’s economic influence in the world and the further opening up of the financial markets, China A-share assets will play an even more important role in global investors’ portfolios. We believe that E Fund (HK) MSCI China A 50 Connect ETF will become an essential tool for domestic and foreign investors to allocate A-share assets. “

Fund Information
E Fund (HK) MSCI China A50 Connect ETF
Stock Code: 03111.HK (HKD counter) 83111.HK (RMB counter)
Exchange Listing: HKEX – Main Board
Listing Date: 14th-December-2021
Underlying Index: MSCI China A 50 Connect Index (Price return)
Trading Currency: RMB
Counter Currency: RMB/HKD
Investment Channel: Mainland China-Hong Kong Stock Connect, RQFII (Mainly by Mainland China-Hong Kong Stock Connect)
Investment Strategy: A combination of (i) primarily a physical representative sampling strategy and (ii) a synthetic representative sampling strategy as an ancillary strategy.
Portfolio Composition File Basket Share: 1,000,000
Fund Initial Net Value: 2.6 RMB (subject to the final price before listing)
Management Fee Rate: 50 bp (p.a.)
Expected Total Expense Ratio (TER): 80 bp (p.a.)
Derivative Use: Yes, derivative does not exceed 50%

About E Fund Management (HK) Co., Ltd.

As the international business platform of E Fund, E Fund HK provides bilateral and cross-border asset management services in fixed income, equity (include active management strategy and ETF product lines) and global asset allocation for investors all over the world. E Fund HK has an established presence in Hong Kong for many years and has since listed a number of mutual funds, private equity funds and ETFs in Hong Kong, Europe and the US. Its award-winning products have been recognized by leading institutions such as Morningstar, Lipper, Asian Investor and Benchmark for their strong performances relative to peers..

E Fund HK has nearly 10 years of index investment experience. The company has abundant practical experiences in the offshore ETF market. E Fund HK cooperate with many international institutions, and issued products in Hong Kong, Europe and the US. In 2012, E Fund HK issued a product tracking the CSI 100 Index. In 2014, E Fund HK issued a product tracking Chinese government bonds, and issued a UCITS product about China A shares with a European company. In 2014, E Fund HK and a US fund company jointly issued an ETF in United States. In 2017, E Fund HK and Yuanta Securities jointly issued a leveraged ETF and an inverse ETF tracking the Hang Seng Index.

The MSCI series of indexes developed by MSCI are widely used by global portfolio managers as benchmark indexes, with an asset scale of more than US$16 trillion, including more than 1,200 index ETFs with an asset scale of more than US$1.2 trillion.

MSCI Index Disclaimer
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Prospectus issued by E Fund Management (Hong Kong) Co., Limited (“E Fund HK”) contains a more detailed description of the limited relationship MSCI has with E Fund HK and any related funds.
Copyright 2021. E Fund Management (Hong Kong) Co., Limited. All rights reserved.

The Fund has been authorized by the Securities and Futures Commission of Hong Kong (“SFC”) but such authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. Investment involves risk. Past performance is not indicative of future performance. The investment returns are denominated in RMB. HK dollar-based investors are therefore exposed to fluctuations in the HK dollar/RMB exchange rate and investing in funds denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal. Please refer to the offering document for details of the Fund including the risk factors. This document has not been reviewed by the SFC. Issued by E Fund Management (Hong Kong) Co., Limited.

This document is neither an offer nor solicitation to purchase units of the Fund. Distribution of this document may be restricted in certain jurisdictions. This document does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom it is unlawful to distribute such a document or make such an offer or solicitation.






Topic: Press release summary

Sectors: Daily Finance, Funds & Equities


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Hong Kong – Hong Kong, China participates actively in APEC 2021 Economic Leaders’ Week (with photos)

Nov 13, 2021 | International

Hong Kong, China participates actively in APEC 2021 Economic Leaders’ Week (with photos)

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     Hong Kong, China has actively participated in the Asia-Pacific Economic Cooperation (APEC) 2021 Economic Leaders’ Week, pledging support for international cooperation in fighting against the pandemic and championing free trade as a solution for the post-pandemic global economy recovery.
      
     The APEC Economic Leaders’ week is the annual event of APEC, concluded by the Economic Leaders’ Meeting to advance various trade and investment initiatives in the Asia-Pacific region and to give political support at the highest level to the APEC process.
      
     APEC 2021 is hosted by New Zealand under the theme of “Join, Work, Grow. Together.” Of the various activities held during the APEC 2021 Leaders’ Week conducted via video-conferencing, the Chief Executive, Mrs Carrie Lam, participated in the Economic Leaders’ Meeting tonight (November 12) and the APEC Business Advisory Council Dialogue last night (November 11), while the Secretary for Commerce and Economic Development, Mr Edward Yau, attended the two-day APEC Ministerial Meeting on November 8 and 9.
      
     Speaking at the Economic Leaders’ Meeting tonight, Mrs Lam stressed Hong Kong, China’s determination to join all APEC member economies to navigate through the pandemic, and the importance to guard against resurgence of the pandemic which would set back some of the progress made in the road to recovery. She noted that Hong Kong, China has donated 7.5 million doses of COVID vaccine to the World Health Organization’s COVAX to help vulnerable countries fight the pandemic.
      
     Mrs Lam gave an account of Hong Kong, China’s reassuring economic outlook. She said, “Being one of the world’s freest economies, sixth largest trading entity and third largest destination of foreign direct investment, we are benefiting from the revitalised manufacturing activities and resumption of demands around the world as shown by our 14.2 per cent year-on-year growth in goods export in the third quarter of this year. Our economy has grown by 7.0 per cent year-on-year in the first nine months and we are expecting 6.4 per cent for the whole year.”
      
     Mrs Lam said that efforts in achieving a full-fledged economic recovery must go hand in hand with unimpeded progress towards sustainable development goals. Having overcome severe political challenges with staunch support of the Central People’s Government, Hong Kong, China has formulated an array of initiatives to support the achievement of sustainable development goals. She introduced some of the key measures, including the recently announced Hong Kong’s Climate Action Plan 2050, the development of Hong Kong, China into a green finance hub, the development of a complete innovation and technology ecosystem in the Guangdong-Hong Kong-Macao Greater Bay Area, and more.
      
     In conclusion, Mrs Lam reaffirmed Hong Kong, China’s unequivocal support for multilateralism and international cooperation in overcoming the global crisis and delivering an inclusive and sustainable recovery. As a champion of free trade, Hong Kong, China steadfastly stands by the rules-based multilateral trading system and will collaborate constructively with other World Trade Organization members for a meaningful outcome at the 12th Ministerial Conference.
      
     At the end of the meeting, Mrs Lam and Leaders of other APEC member economies endorsed the Aotearoa Plan of Action to implement the APEC Putrajaya Vision 2040. The APEC 2021 Economic Leaders’ Declaration that represents APEC’s commitment to strengthening regional cooperation in fighting against the pandemic and pursuing an inclusive and sustainable recovery was issued.