Jinhong Gas

Business

Jinhong Gas (金宏气体股份有限公司), founded in 1999 and based in Suzhou, is a full-chain gas service provider covering specialty gases, bulk gases and on-site gas plants (2026 interim report, p. 24). It calls industrial gases the blood of industry and sells more than 100 gas varieties, from ultra-pure electronic gases to bulk oxygen, nitrogen and argon, plus a total gas and chemical management (TGCM) service that runs a fab's whole gas supply, from cylinders and piping to analysis and waste handling (pp. 18, 19). By sales it has ranked first among private gas companies in the China Industrial Gas Industry Association's statistics for years running (p. 23).

Electronic gas product line

The electronic gases that matter for chips are ultra-pure ammonia, high-purity nitrous oxide, high-purity carbon dioxide, high-purity hydrogen, electronic-grade tetraethyl orthosilicate (TEOS), octafluorocyclobutane, silane gas mixtures and electronic-grade oxygen and nitrogen (p. 19). Ultra-pure ammonia feeds MOCVD growth of gallium nitride, TEOS is a precursor for silicon dioxide insulating layers in chemical vapour deposition, and nitrous oxide serves dielectric film processes. The company says these products have reached import-substitution quality, including hexafluorobutadiene, fluoromethane and octafluorocyclobutane, which are still being optimised and put through customer validation (pp. 23, 25). It holds 418 patents, 124 of them invention patents, and runs the gas industry's only national enterprise technology centre focused on electronic gases (pp. 23, 28).

Scale and mix

• Revenue rose 12.12% to ¥1,473.21m in the first half of 2026, while net profit attributable to shareholders fell 17.41% to ¥67.89m (p. 11). Revenue of ¥1,473.21m against cost of sales of ¥1,075.78m implies a gross margin of about 27.0% (our calculation from p. 97).
• The chip business is the growth engine: integrated circuit industry revenue rose 29.56% year on year, and the company says it is deepening strategic cooperation with SMIC, CXMT and SK Hynix (p. 25). Helium revenue rose 140.53% in the half, with second-quarter helium revenue up 110.01% on the first quarter, as the company positions itself as a domestic helium supply platform (p. 26).
• Its model is deliberately counter-cyclical: bulk gas retail is the cash-flow anchor, specialty gas the growth leg, and on-site gas plants the stabiliser, with long contracts and 24-hour operation (pp. 24, 26). Its network reaches more than 50 countries and regions, including a Singapore platform that sells direct to overseas terminals (p. 24).

Caveats

Profit fell even as revenue grew, and the filing explains why: new projects built against the cycle have started depreciating, which compressed the overall gross margin, and core net profit excluding non-recurring items fell 73.50% to ¥17.82m (p. 12). That is the cost of the expansion strategy, and it will only pay off if the new capacity fills. The filing is also clear that the high-end specialty gas market is still held by a few foreign gas giants, and that every step from raw material purity to filling affects quality, so a single weak link can cost a customer (pp. 17, 39). Helium, the half's brightest spot, depends on geopolitically disrupted supply, so its 140% growth rate is not a run rate to extrapolate.