Yingde Gases Overview
Yingde Gases is China's largest independent (non-captive, non-multinational) industrial gas company and one of Asia's largest air-separation operators. Founded in Hunan in 2001, it built its franchise on long-term on-site oxygen, nitrogen and argon supply to steel, non-ferrous metals and chemical complexes, backed by take-or-pay contracts. It then extended into bulk liquid, MiniBulk, cylinder, rare and specialty gases and in-house cryogenic engineering through Yingde Engineering. After eight years under PAG, including the 2021 merger with Baosteel Gases and an abandoned Hong Kong IPO, control passed in January 2025 to a Hangzhou-led state-capital and insurance consortium in one of China's largest private-equity exits. PAG kept a minority stake and the clean-energy (syngas/hydrogen/methanol) business. In semiconductor supply chains, Yingde's role is mainly bulk atmospheric gases: nitrogen, oxygen and argon, plus hydrogen and high-purity oxygen for electronics, photovoltaic and new-energy manufacturers. Its competitors in ultra-high-purity electronic bulk gases are Linde, Air Liquide, Air Products and Guanggang Gases. Its overseas platform, NovaAir, operates in Malaysia, Thailand and India.
What the company does
Yingde Gases designs, builds, owns, operates and maintains air separation units (ASUs) and related gas-production facilities. It sells the output in three main ways:
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On-site supply. Gas goes by pipeline from plants located at or next to large industrial customers, under long-term supply contracts with minimum take-or-pay volumes and cost pass-through clauses.
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Merchant (liquid) supply. Liquid oxygen, nitrogen, argon and carbon dioxide are delivered by cryogenic tanker to distributors and industrial users. The liquid comes from the spare capacity of on-site plants plus dedicated liquid plants.
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Packaged, MiniBulk, rare and specialty gases. These cover cylinders and small-bulk installations, including the "盈德钢瓶气" cylinder business, plus rare gases and electronic specialty gases.
Alongside these, Yingde Engineering designs and manufactures cryogenic equipment, including large ASUs, skid-mounted liquid ASUs, nitrogen generators and VPSA (vacuum pressure swing adsorption) oxygen systems, for internal projects and for third-party customers.
The company's current self-description lists six business lines: on-site gas supply, liquid gas supply, rare and specialty gases, Yingde Engineering, overseas business, and logistics and transportation. It also offers application solutions under its own brands: 焊德宝® (welding), 渔德宝® (aquaculture oxygenation) and 鲜德宝® (food quick-freezing). Products listed include liquid oxygen, liquid nitrogen, liquid argon, carbon dioxide, medical oxygen, hydrogen, methanol, rare gases, electronic specialty gases and cylinder gas. In its overseas communications (October 2026), Yingde describes itself as focused on "on-site gas supply, bulk liquid, MiniBulk, packaged gases, rare and specialty gases, and Yingde Engineering". It says it supplies oxygen, nitrogen and argon by pipeline, tank and cylinder to metallurgy, chemical, electronics, semiconductor, photovoltaic, food, medical and healthcare, new materials, energy and environmental protection industries in China and Southeast Asia.
Business and revenue model
| Revenue model element | Description |
|---|---|
| Product sales under long-term contracts | On-site gas sold under multi-year contracts (typically 15+ years in the industry) with minimum take-or-pay volumes and electricity cost pass-through. This was the largest revenue source: 65.3% of AirPower group revenue in FY2020, 72.1% of Yingde revenue in FY2018 |
| Spot and contracted merchant sales | Liquid products sold at market prices to distributors and industrial users. Volatile, follows industrial activity and liquid price cycles. 14.7% of revenue in FY2020 |
| Packaged / MiniBulk gas | Cylinder and small-bulk sales, including the online channel "Yingde Mall" (shop.yingde.com) |
| Equipment and engineering | Sales of ASUs, nitrogen generators and VPSA units by Yingde Engineering to third parties, such as Wanhua Chemical, Yimen Copper and Taishan Steel (2025–2026) |
| Clean energy (historic, now carved out) | Hydrogen, syngas, liquid ammonia and methanol from coal-gasification "gasification island" projects using Tsinghua-furnace technology. 19.7% of revenue in FY2020. Separated in 2024 and retained by PAG at the January 2025 sale |
Product sales under long-term contracts: Description: On-site gas sold under multi-year contracts (typically 15+ years in the industry) with minimum take-or-pay volumes and electricity cost pass-through. This was the largest revenue source: 65.3% of AirPower group revenue in FY2020, 72.1% of Yingde revenue in FY2018
Spot and contracted merchant sales: Description: Liquid products sold at market prices to distributors and industrial users. Volatile, follows industrial activity and liquid price cycles. 14.7% of revenue in FY2020
Packaged / MiniBulk gas: Description: Cylinder and small-bulk sales, including the online channel "Yingde Mall" (shop.yingde.com)
Equipment and engineering: Description: Sales of ASUs, nitrogen generators and VPSA units by Yingde Engineering to third parties, such as Wanhua Chemical, Yimen Copper and Taishan Steel (2025–2026)
Clean energy (historic, now carved out): Description: Hydrogen, syngas, liquid ammonia and methanol from coal-gasification "gasification island" projects using Tsinghua-furnace technology. 19.7% of revenue in FY2020. Separated in 2024 and retained by PAG at the January 2025 sale
The model is overwhelmingly product-based (gas sold per unit volume), with an equipment/engineering component. No subscription or licensing revenue is disclosed.
Value-chain position
Yingde sits in the middle of the industrial-gas value chain:
Upstream inputs: electricity (the main variable cost of air separation), equipment (compressors, cold boxes, turbo-expanders, some built in-house) and coal or coke-oven gas for syngas and hydrogen projects.
Own operations: production (ASUs, nitrogen generators, VPSA units, hydrogen recovery), storage, distribution (a tanker fleet that once ran more than 500 vehicles a day) and engineering.
Downstream customers: steelmakers, non-ferrous smelters, coal-chemical and petrochemical complexes, new-energy material producers (lithium iron phosphate, sodium-ion, solar), electronics/semiconductor/photovoltaic manufacturers, food processors and hospitals.
Customer types and end-markets
| End-market | Role of Yingde gases | Examples (publicly announced) |
|---|---|---|
| Iron & steel | Oxygen for blast furnace/BOF, nitrogen and argon for inerting and refining | Taishan Steel (40,000 Nm³/h ASU agreement, 2026); Alliance Steel, Kuantan, Malaysia (three 20,000 Nm³/h ASUs) |
| Non-ferrous metals | Oxygen enrichment for smelting | Jinchuan Group (intelligent ASU, 2025); Yimen Copper (VPSA oxygen system, 2026) |
| Chemicals / coal chemicals | Oxygen and nitrogen for gasification and oxidation; pipeline nitrogen | Wanhua Chemical Fujian (60,000 Nm³/h ASU, 2025); Haixing Chemical (pipeline nitrogen, 2026); Gansu Juhua (ASU start-up) |
| New energy materials | High-purity nitrogen for lithium iron phosphate calcination; nitrogen for battery materials | Wanhua Chemical LFP project (large nitrogen generation equipment, 2026); a large nitrogen plant for a new-energy customer |
| Electronics, semiconductor & photovoltaic | Bulk nitrogen, oxygen, argon and hydrogen; high-purity oxygen for solar cell processes | Malaysian KUL ASU built to switch to high-purity oxygen for solar cell manufacturing |
| Clean energy / tail-gas recovery | Coke-oven gas recovery and co-production | Qujing, Yunnan (strategic cooperation, 2026); Anyang clean gas demonstration project (large ASU) |
| Food, aquaculture, healthcare | Liquid nitrogen for freezing, oxygen for aquaculture, medical oxygen | 鲜德宝®, 渔德宝® application brands |
Iron & steel: Role of Yingde gases: Oxygen for blast furnace/BOF, nitrogen and argon for inerting and refining; Examples (publicly announced): Taishan Steel (40,000 Nm³/h ASU agreement, 2026); Alliance Steel, Kuantan, Malaysia (three 20,000 Nm³/h ASUs)
Non-ferrous metals: Role of Yingde gases: Oxygen enrichment for smelting; Examples (publicly announced): Jinchuan Group (intelligent ASU, 2025); Yimen Copper (VPSA oxygen system, 2026)
Chemicals / coal chemicals: Role of Yingde gases: Oxygen and nitrogen for gasification and oxidation; pipeline nitrogen; Examples (publicly announced): Wanhua Chemical Fujian (60,000 Nm³/h ASU, 2025); Haixing Chemical (pipeline nitrogen, 2026); Gansu Juhua (ASU start-up)
New energy materials: Role of Yingde gases: High-purity nitrogen for lithium iron phosphate calcination; nitrogen for battery materials; Examples (publicly announced): Wanhua Chemical LFP project (large nitrogen generation equipment, 2026); a large nitrogen plant for a new-energy customer
Electronics, semiconductor & photovoltaic: Role of Yingde gases: Bulk nitrogen, oxygen, argon and hydrogen; high-purity oxygen for solar cell processes; Examples (publicly announced): Malaysian KUL ASU built to switch to high-purity oxygen for solar cell manufacturing
Clean energy / tail-gas recovery: Role of Yingde gases: Coke-oven gas recovery and co-production; Examples (publicly announced): Qujing, Yunnan (strategic cooperation, 2026); Anyang clean gas demonstration project (large ASU)
Food, aquaculture, healthcare: Role of Yingde gases: Liquid nitrogen for freezing, oxygen for aquaculture, medical oxygen; Examples (publicly announced): 鲜德宝®, 渔德宝® application brands
Independent characterisation
Yingde is best understood as a capital-intensive, contract-backed infrastructure operator whose earnings come from (a) a long-dated portfolio of on-site ASU contracts with heavy-industry customers and (b) a cyclical merchant liquid business that amplifies swings in industrial activity and liquid gas prices. Its semiconductor relevance is real but secondary. Yingde is a large-scale producer of the atmospheric gases (nitrogen, oxygen, argon) and hydrogen that fabs use as bulk inputs. However, the ultra-high-purity (ppb-level) electronic bulk-gas supply to Chinese front-end fabs is concentrated among Linde, Air Liquide, Air Products and Guanggang Gases, and Yingde is not a leading supplier there. Its electronics exposure is mainly merchant liquid nitrogen/argon, photovoltaic and new-energy customers, and specialty/rare gases. The January 2025 ownership change replaced a financial sponsor focused on exit with patient domestic capital (local state funds and insurers). This lowers refinancing and exit pressure but leaves open whether Yingde will eventually be combined with Hangyang, which is also controlled by Hangzhou Capital.
Strategy
Stated strategy: "LEAP" (2022–2026)
Yingde's five-year plan rests on three drivers:
Business: Strengthen leadership in China by expanding business teams and organisation and developing emerging and strategic ventures. Raise the value of wholesale liquid, bottled and rare gases. Make syngas the main thrust of clean energy (since carved out). Expand overseas in earnest.
Management: Build management capability on the group's scale advantages, improving value and performance together.
Capital: Use the backing of major shareholders and past deal experience to pursue M&A in China and abroad and act as an industry consolidator.
Sustainability strategy
Yingde runs a "Five-in-One" sustainable development strategy. Its 2024 ESG report (Yingde Gases (Shanghai) Co., Ltd.) reports a 20.3% reduction in carbon intensity per unit of revenue against the 2020 baseline, the creation of an ESG Committee, and a group-wide digital transformation strategy.
Strategic initiatives (last 24 months)
| Initiative | Date | Description | Intent |
|---|---|---|---|
| Ownership transition to Hangzhou consortium | Closed 10 January 2025 | 100% of Zhejiang Yingde Holding acquired by buyer SPV2 | Long-term domestic ownership; access to state-linked capital |
| Clean energy separation | 2,024 | Industrial gas and clean energy businesses split; clean energy retained by PAG | Simpler, pure-play industrial gas perimeter |
| Southeast Asia platform (NovaAir) | 2023–2026 | Malaysia KUL liquid ASU (about RM100 million investment), Kuantan ASUs, Thailand, Singapore | Regional headquarters; Malaysian top-three ambition |
| Large ASU contract wins | 2025–2026 | Wanhua Fujian, Jinchuan, Taishan Steel, Yimen Copper, Haixing Chemical | Rebuild the on-site backlog in chemicals, steel and metals |
| New-energy materials | 2,026 | Nitrogen generation for Wanhua's LFP project; large nitrogen plant for new energy | Growth outside steel |
| Tail-gas and circular projects | 2,026 | Qujing coke-oven tail-gas recycling and co-production | Lower-carbon, resource-efficient supply |
| Equipment-sector alliances | 2025–2026 | Strategic cooperation with CIMC Enric (cryogenic storage and transport equipment); Zhejiang Special Equipment Science Research Institute (lifecycle safety of special equipment) | Supply-chain and safety capability |
| Digital and AI operations | 2022 onwards | A1 SAP-based ERP with CRM, SRM, MDM and TMS (live January 2023); AI-driven ASU control (KUL) | Efficiency; carbon accounting ("carbon ledger") |
Ownership transition to Hangzhou consortium: Date: Closed 10 January 2025; Description: 100% of Zhejiang Yingde Holding acquired by buyer SPV2; Intent: Long-term domestic ownership; access to state-linked capital
Clean energy separation: Date: 2024; Description: Industrial gas and clean energy businesses split; clean energy retained by PAG; Intent: Simpler, pure-play industrial gas perimeter
Southeast Asia platform (NovaAir): Date: 2023–2026; Description: Malaysia KUL liquid ASU (about RM100 million investment), Kuantan ASUs, Thailand, Singapore; Intent: Regional headquarters; Malaysian top-three ambition
Large ASU contract wins: Date: 2025–2026; Description: Wanhua Fujian, Jinchuan, Taishan Steel, Yimen Copper, Haixing Chemical; Intent: Rebuild the on-site backlog in chemicals, steel and metals
New-energy materials: Date: 2026; Description: Nitrogen generation for Wanhua's LFP project; large nitrogen plant for new energy; Intent: Growth outside steel
Tail-gas and circular projects: Date: 2026; Description: Qujing coke-oven tail-gas recycling and co-production; Intent: Lower-carbon, resource-efficient supply
Equipment-sector alliances: Date: 2025–2026; Description: Strategic cooperation with CIMC Enric (cryogenic storage and transport equipment); Zhejiang Special Equipment Science Research Institute (lifecycle safety of special equipment); Intent: Supply-chain and safety capability
Digital and AI operations: Date: 2022 onwards; Description: A1 SAP-based ERP with CRM, SRM, MDM and TMS (live January 2023); AI-driven ASU control (KUL); Intent: Efficiency; carbon accounting ("carbon ledger")
Medium-term targets
Group-level financial targets are not publicly disclosed. Operational targets that have been disclosed: KUL plant utilisation above 90% within two years (from October 2026); NovaAir among Malaysia's top three industrial gas suppliers within three to five years.
Products & Services
On-site gas supply
| Offering | Description | Key specifications | Target customer | Pricing model |
|---|---|---|---|---|
| Large cryogenic ASU (pipeline supply) | Build-own-operate ASUs supplying gaseous O₂/N₂/Ar by pipeline | Unit sizes up to 60,000 Nm³/h class (Wanhua Fujian, 2025); 40,000 Nm³/h (Taishan Steel, 2026); 20,000 Nm³/h ×3 (Alliance Steel, Malaysia) | Steel, non-ferrous, coal chemicals, petrochemicals | Long-term contracts with minimum take-or-pay and power cost pass-through |
| Pipeline nitrogen | Dedicated nitrogen supply networks | Commissioned for Haixing Chemical (2026) | Chemical parks | Long-term contract |
| VPSA oxygen generation | Vacuum pressure swing adsorption oxygen units, a low-energy alternative to cryogenic ASUs for medium purity | Yimen Copper agreement (2026); another VPSA unit commissioned | Copper and non-ferrous smelters, mid-size users | Equipment sale or gas supply |
| Large nitrogen generators | High-capacity nitrogen units for new-energy materials | Large nitrogen plant commissioned; Wanhua LFP nitrogen equipment (2026) | Battery and cathode material producers | Equipment sale or gas supply |
| Coke-oven / tail-gas recovery | Recovery and co-production from coke-oven tail gas | Qujing, Yunnan strategic cooperation (2026) | Coking and chemical parks | Project-based |
Total installed capacity is about 3.4 million Nm³/h of oxygen across 150+ plants (company website). This compares with 2.39 million Nm³/h at end-2018 and 1.94 million Nm³/h at end-2015.
Liquid (merchant) gas supply
| Product | Description | Target customer | Pricing model |
|---|---|---|---|
| Liquid oxygen (LOX) | Cryogenic liquid by tanker | Metal fabrication, hospitals (via medical oxygen), aquaculture | Market price / contract |
| Liquid nitrogen (LIN) | Cryogenic liquid by tanker | Electronics, food freezing, chemicals, semiconductor fabs (backup and merchant supply) | Market price / contract |
| Liquid argon (LAR) | Cryogenic liquid by tanker | Welding, stainless steel, electronics, photovoltaic crystal growth | Market price / contract |
| Liquid carbon dioxide | Liquid CO₂ | Food & beverage, welding | Market price / contract |
| Medical oxygen | Licensed medical-grade oxygen | Hospitals, healthcare | Contract |
Liquid capacity exceeds 15,000 TPD (up from more than 10,000 TPD in 2020).
Packaged gas, MiniBulk and applications
| Offering | Description | Launch / status |
|---|---|---|
| Yingde cylinder gas (盈德钢瓶气) | Industrial gases in cylinders | Active |
| MiniBulk | Small on-site tanks refilled by delivery | Active (named in 2026 corporate description) |
| 焊德宝® | Welding gas application solution | Active |
| 渔德宝® | Oxygenation solution for aquaculture | Active |
| 鲜德宝® | Food quick-freezing solution (liquid nitrogen) | Active |
| Yingde Mall (shop.yingde.com) | Online ordering channel for gases and supplies | Active |
Rare and specialty gases (including electronic gases)
| Product group | Description | Relevance to semiconductor supply chain |
|---|---|---|
| Rare gases (neon, krypton, xenon) | Recovered from large ASUs | Neon for DUV excimer lasers; krypton/xenon for etch and lithography gas mixtures |
| Electronic specialty gases | Listed among company products; individual molecules not publicly disclosed | Process gases for deposition, etch, doping |
| Hydrogen | Supplied from by-product and dedicated production | Carrier/reducing gas for epitaxy and annealing; electronic-grade hydrogen market |
| High-purity nitrogen and oxygen | Bulk atmospheric gases at elevated purity | Fab purge/inerting and photovoltaic processes; the KUL Malaysia plant can switch to high-purity oxygen for solar cell manufacturing |
Purity specifications, capacities and named semiconductor customers for the specialty-gas line are not publicly disclosed.
Yingde Engineering
| Offering | Description | Examples |
|---|---|---|
| Large ASUs | In-house designed cryogenic ASUs | Wanhua Chemical Fujian (60,000 Nm³/h), Jinchuan Group intelligent ASU, Anyang clean gas demonstration project |
| Skid-mounted liquid ASUs | Modular liquid ASUs for merchant markets | Exported to India (2021); KUL Malaysia 300 TPD liquid ASU (own design and manufacture) |
| VPSA oxygen systems | Adsorption-based oxygen plants | Yimen Copper (2026) |
| Nitrogen generation equipment | Large nitrogen units | Wanhua Chemical LFP project (2026) |
| AI-driven control systems | Plant optimisation for energy efficiency | Deployed at KUL Malaysia |
Logistics and services
Yingde runs its own cryogenic tanker fleet. CEO Fang Shiwen has said the fleet runs more than 500 vehicles a day, covering a distance equal to three trips around the earth. Distribution is managed on an integrated TMS (transport management system) inside the A1 digital platform.
Financial Narrative
Yingde stopped publishing full financial statements after its August 2017 privatisation and the April 2019 redemption of its listed notes. The figures below are the last audited listed-company accounts (FY2015–FY2016), the H1 2017 interim, the FY2018 results release, and the FY2018–FY2020 figures in the 2021 AirPower IPO filing. Financial statements for FY2021–FY2025 are not publicly disclosed.
Revenue history
FY2016 comes from the audited annual results; FY2018–FY2020 come from the AirPower IPO filing. The FY2017 figure is about RMB 10.2 billion: it follows from the 25.4% growth reported for FY2018, and Moody's described FY2017 revenue as about RMB 10 billion (+22%). Revenue CAGR FY2016–FY2020: 17.7%, matching the 17.72% CAGR in the IPO filing. On a combined basis including Baosteel Gases, FY2020 revenue was about RMB 19.4 billion.
Income statement — last audited listed-company accounts
Commentary. FY2016 was the low point of the listed era. Gross profit held flat at RMB 2.55 billion despite 6.1% revenue growth because of weak steel and coal-chemical demand. However, RMB 612 million of impairments on plant and construction-in-progress, about RMB 1 billion of finance costs and a high effective tax rate turned a RMB 373 million pre-tax profit into a net loss. Interest coverage of 1.3x showed a balance sheet stretched by the 2010–2015 build-out, and that weakness set off the 2016–2017 governance crisis and sale process.
Interim recovery — H1 2017
Administrative expenses more than doubled in H1 2017, reflecting takeover-defence and advisory costs. Finance costs fell by 59% as refinancing and lower one-off charges took effect.
Post-privatisation performance — FY2018
FY2018 growth: revenue +25.4%, EBITDA +35.3%, net profit +67.3%. H1 2018 net profit was about RMB 900 million (+70.5%).
Combined AirPower metrics (with Baosteel Gases), FY2020 and H1 2021
In April 2021, Reuters reported that Yingde's EBITDA had roughly doubled under PAG ownership to about US$600 million.
Balance sheet and cash flow — last disclosed
FY2015 capital expenditure is derived from the 17.4% decline reported for FY2016. At end-2016 the group also had RMB 595 million of unused bank facilities. In January 2017, J.P. Morgan put net debt at about US$1.4 billion against a market capitalisation of about US$815 million, implying an enterprise value of about US$2.2 billion.
The rise in net current liabilities to RMB 2.0 billion in FY2016 reflects borrowings moving into current maturities as the offshore notes approached repayment. Those notes were refinanced, partly with a US$300 million loan in 2019, and redeemed in April 2019.
Ratios not publicly disclosed for FY2017 onwards: total assets, equity, goodwill, working capital, ROA, ROIC, current ratio, debt/equity, net debt/EBITDA, asset turnover and cash conversion cycle. The January 2025 acquisition was financed with equity from Hangzhou Yingde (registered capital RMB 18.75 billion) plus acquisition loans from about 12 commercial banks, so the operating group now carries acquisition-related leverage. The amount is not publicly disclosed.
Trend analysis
2009–2015 build-out: Capacity tripled (from 20 plants in 2008 to 68 in 2015), funded largely by debt. Revenue grew fast, but finance costs reached about RMB 1 billion a year and squeezed net margins below 7%.
2016 inflection: Weak heavy-industry demand, impairments on idle or underperforming plants, and governance conflict produced the only annual loss on record.
2017–2020 recovery: Under PAG, revenue compounded at about 18% a year, EBITDA margin rose to about 35%, and net profit grew sharply as finance costs fell and merchant liquid prices recovered. Clean energy grew from 7.3% to 19.7% of revenue.
2021–2024: Combined with Baosteel Gases; IPO shelved; clean energy separated. China liquid gas prices bottomed around 2024 (liquid argon fell about 30% in 2025 versus 2024, while liquid oxygen recovered slightly), which suggests merchant margins came under pressure in this period.
2025 onwards: The current perimeter excludes clean energy and is focused on air gases, engineering and overseas growth.
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Group Structure
| Layer | Entity | Role |
|---|---|---|
Top holding | Hangzhou Yingde Gases Co., Ltd. (杭州盈德气体有限公司) | Acquisition vehicle (buyer SPV2); registered capital RMB 18.75 billion; legal representative Huang Dewei |
Intermediate holding | Zhejiang Yingde Holding Group Co., Ltd. (浙江盈德控股集团有限公司) | 100% acquired 10 January 2025; holds the restructured industrial gas operations |
Operating companies | Hunan Yingde Gases Co., Ltd.; Yingde Gases (Shanghai) Co., Ltd.; Shanghai Baosteel Gases group companies; regional plant companies | On-site, merchant and specialty gas operations across China (historically more than 100 local operating companies) |
Engineering | Yingde Engineering (Hangzhou) | Cryogenic equipment design and manufacture |
Overseas | NovaAir Industrial Gases Sdn. Bhd. (Malaysia); NovaAir Technologies Pvt. Ltd. (India); NovaAir operations in Thailand; Smart Gas (Singapore) | International brand and platform |
Carved out (not part of the current group) | Clean energy business (syngas, hydrogen, methanol, ammonia) | Retained by PAG at the 2025 sale; valued at more than US$2 billion |
Business Lines
| Business line (% of revenue) | FY2018 | FY2020 |
|---|---|---|
On-site gas supply (%) | 72.1 | 65.3 |
Merchant / bulk liquid (%) | 20.6 | 14.7 |
Clean energy (%) | 7.3 | 19.7 |
Segment (CNY Mn) Overview
| Segment (CNY Mn) | FY2018 |
|---|---|
On-site gas supply revenue (CNY Mn) | 9,260 |
Bulk liquid revenue (CNY Mn) | 2,600 |
Income Statement and Margin Analysis (%)
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|---|
Revenue (CNY Mn) | 8,404 | 10,237 | 12,837 | 14,576 | 16,141 |
Revenue growth (%) | 6.1 | 21.8 | 25.4 | 13.5 | 10.7 |
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View Subscription PlansIncome Statement and Per-Share Data
| Metric | FY2015 | FY2016 |
|---|---|---|
Revenue (CNY Mn) | 7,918.9 | 8,403.9 |
Cost of sales (CNY Mn) | 5,368.6 | 5,850.5 |
Gross profit (CNY Mn) | 2,550.3 | 2,553.5 |
Selling expenses (CNY Mn) | 207.2 | 159.6 |
Administrative expenses (CNY Mn) | 500.8 | 474.1 |
Impairment of PP&E and CIP (CNY Mn) | 0 | 611.9 |
Profit from operations (CNY Mn) | 1,875.2 | 1,360.0 |
Finance income (CNY Mn) | 30.9 | 79.5 |
Finance costs (CNY Mn) | 968.3 | 1,016.8 |
Profit before tax (CNY Mn) | 950.5 | 372.9 |
Income tax (CNY Mn) | 417.8 | 521.1 |
Profit for the year (CNY Mn) | 532.7 | -148.2 |
Profit attributable to shareholders (CNY Mn) | 535.9 | -142.6 |
Basic and diluted EPS (MYR Bn) | 0.30 | -0.08 |
Gross margin (%) | 32.2 | 30.4 |
Operating margin (%) | 23.7 | 16.2 |
Pre-tax margin (%) | 12.0 | 4.4 |
Net margin (%) | 6.7 | -1.8 |
Interest coverage (operating profit / finance costs, x) | 1.94 | 1.34 |
Income Statement and Per-Share Data (Half-Yearly)
| Metric | H1 2016 | H1 2017 |
|---|---|---|
Revenue (CNY Mn) | 4,139.6 | 4,761.1 |
Gross profit (CNY Mn) | 1,270.3 | 1,475.0 |
Administrative expenses (CNY Mn) | 163.3 | 347.9 |
Profit from operations (CNY Mn) | 1,094.6 | 1,067.8 |
Finance costs (CNY Mn) | 443.4 | 181.3 |
Profit before tax (CNY Mn) | 634.0 | 875.9 |
Profit for the period (CNY Mn) | 384.2 | 545.8 |
Basic EPS (MYR Bn) | 0.216 | 0.291 |
Depreciation (CNY Mn) | 418.2 | 486.5 |
Capital expenditure (CNY Mn) | 244.0 | 300.4 |
Gross margin (%) | 30.7 | 31.0 |
Income Statement and Margin Analysis (%) (FY2018)
| Metric | FY2018 |
|---|---|
Revenue (CNY Mn) | 12,837 |
EBITDA (CNY Mn) | 4,480 |
Net profit (CNY Mn) | 1,200 |
EBITDA margin (%) | 34.9 |
Net margin (%) | 9.3 |
Plants in operation (number) | 82 |
Plants under construction (number) | 17 |
Installed oxygen capacity (Nm³/h) | 2,391,000 |
Valuation Snapshot
| Metric | Value |
|---|---|
FY2020 combined revenue (CNY Bn) | 19.4 |
FY2020 combined net profit (CNY Bn) | 2.3 |
FY2020 gross margin (%) | 28 |
FY2020 net margin (%) | 13.2 |
FY2020 ROE (%) | 20 |
H1 2020 net profit (CNY Mn) | 855 |
H1 2021 net profit (CNY Mn) | 1,232 |
H1 2021 net profit growth (%) | 44.2 |
FY2016–FY2020 EBITDA CAGR (%) | 19.83 |
Cash Flow
| Metric | FY2015 | FY2016 |
|---|---|---|
Cash and cash equivalents (CNY Mn) | 678.5 | 736.9 |
Non-current borrowings (CNY Mn) | 8,060.2 | 6,505.2 |
Non-current finance lease obligations (CNY Mn) | 224.9 | 115.9 |
Net current liabilities (CNY Mn) | 481.0 | 1,993.5 |
Operating cash flow (CNY Mn) | 1,374 | 1,884 |
Capital expenditure (CNY Mn) | 1,123 | 928 |
Free cash flow (OCF minus capex, CNY Mn) | 251 | 956 |
Region Overview
| Region | Presence | Status |
|---|---|---|
Mainland China | Plants across nearly 30 provinces, municipalities and autonomous regions (2018); 150+ plants group-wide | Core market; the large majority of revenue |
India | NovaAir Technologies: plants near Chennai and Hyderabad (planned for commissioning in 2021) | First overseas investment |
Malaysia | NovaAir Industrial Gases: KUL 300 TPD liquid ASU (commissioned August 2026); three 20,000 Nm³/h ASUs at MCKIP Kuantan for Alliance Steel; regional headquarters | Fastest-growing overseas market; target of top-three supplier status in Malaysia within three to five years |
Thailand | NovaAir ASU operations | Operating |
Singapore | Smart Gas (strategic investment, April 2022): liquid oxygen, nitrogen, CO₂ and bottled gas distribution | Operating |
Marker Details
| Marker | Date | Value |
|---|---|---|
IPO price | October 2009 | HK$7.00 per share (about HK$3.64 billion raised) |
Market capitalisation | January 2017 | About US$815 million (net debt about US$1.4 billion; EV about US$2.2 billion) |
Take-private price | March–August 2017 | HK$6.00 per share; about US$2.6 billion including debt |
Combined AirPower valuation sought | 2021–2022 | More than US$10 billion (PAG ask); talks at US$4–5 billion (Mergermarket) |
Change-of-control valuation | November 2024 – January 2025 | About US$6.8 billion (Bloomberg); about RMB 50 billion (Chinese press) |
Capital Markets
| Metric | Hangyang (002430.SZ) |
|---|---|
Market capitalisation (CNY Mn, 31 October 2026) | 25,388 |
Price-to-book (x, 31 October 2026) | 2.46 |
FY2025 net profit attributable (CNY Mn) | 949 |
Analyst Conclusions
Guidance and expectations
Yingde issues no financial guidance and is not covered by sell-side analysts. Disclosed operational objectives centre on overseas expansion (KUL utilisation above 90% within two years; Malaysian top-three ambition within three to five years) and on-site contract growth in chemicals, metals and new-energy materials.
Bull case
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Infrastructure-like base with growth options: On-site contracts (two-thirds or more of revenue historically) plus new wins (Wanhua, Taishan Steel, Jinchuan, Yimen Copper) support stable EBITDA, with an FY2018 margin of 34.9%.
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Outsourcing tailwind: China's outsourced share is rising toward 45%, and Yingde, as the largest independent, is well placed to buy captive ASUs.
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Patient, well-connected owners: State capital and insurers lower exit pressure and improve access to state-owned customers and low-cost debt.
Bear case
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Shrunken perimeter: Without clean energy (19.7% of FY2020 revenue), growth must come from mature air-gas markets.
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Leverage and opacity: Acquisition loans from about 12 banks, plus no public financial statements, limit transparency and flexibility.
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Electronics gap: Leadership in ultra-high-purity electronic bulk gases sits with Linde, Air Liquide, Air Products and Guanggang, so Yingde captures less of the semiconductor upcycle.
Key catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Why it matters |
|---|---|
| Utilisation ramp at the KUL Malaysia ASU | Proves out the overseas merchant model |
| New Malaysian and Southeast Asian investments | Progress toward top-three ambition |
| Start-up of the Taishan Steel 40,000 Nm³/h ASU and the Wanhua LFP nitrogen units | Contribution to on-site backlog |
| China liquid gas price trend (argon, nitrogen, oxygen) | Merchant margin recovery |
| Any Hangyang–Yingde cooperation or integration step | Would change sector structure |
| New semiconductor or display bulk-gas contract wins | Evidence of electronics penetration |
| Refinancing or bond issuance | Would bring renewed public disclosure |
Utilisation ramp at the KUL Malaysia ASU: Why it matters: Proves out the overseas merchant model
New Malaysian and Southeast Asian investments: Why it matters: Progress toward top-three ambition
- Start-up of the Taishan Steel 40,000 Nm³/h ASU and the Wanhua LFP nitrogen units — Why it matters: Contribution to on-site backlog
China liquid gas price trend (argon, nitrogen, oxygen): Why it matters: Merchant margin recovery
Any Hangyang–Yingde cooperation or integration step: Why it matters: Would change sector structure
New semiconductor or display bulk-gas contract wins: Why it matters: Evidence of electronics penetration
Refinancing or bond issuance: Why it matters: Would bring renewed public disclosure
Analyst verdict
Yingde Gases enters 2027 as a smaller and more focused company than at any time since its 2017 privatisation, and its ownership is more stable. Over two decades it has proved it can build and run China's largest independent on-site air-separation network. Revenue compounded at about 18% a year from FY2016 to FY2020, EBITDA margins sat in the mid-thirties under PAG, and installed oxygen capacity grew from under 2 million to about 3.4 million Nm³/h. The January 2025 sale to a Hangzhou-led consortium of state capital, insurers and banks swapped a financial sponsor focused on exit for owners who favour stable, long-dated cash flows. That fits an on-site gas franchise built on take-or-pay contracts.
The trade-offs are real. Carving out clean energy removed about a fifth of historical revenue and Yingde's most distinctive hydrogen and syngas capability. Acquisition debt and the lack of public accounts make credit quality hard to judge from outside. In semiconductor gases, the segment highlighted by its listing in electronic-grade hydrogen and nitrogen market studies, Yingde is a credible bulk producer rather than a fab-level leader: multinationals and Guanggang hold most ultra-high-purity on-site supply to Chinese front-end fabs.
The 2025–2026 operating record points to a sensible strategy. Yingde is winning large ASU and nitrogen contracts in chemicals, metals and battery materials, selling its in-house engineering to third parties, and building a Southeast Asian platform from Malaysia. The decisive variables over the next one to two years are the recovery of Chinese merchant liquid prices, execution of the Malaysian ramp-up, and whether the Hangzhou ownership link leads to industrial cooperation with Hangyang, which would create a domestic champion able to challenge the multinationals in China.
Overall, Yingde is a high-quality but heavily geared infrastructure-style asset. Its downside is cushioned by contracted cash flows, while its upside depends on deeper moves into new-energy and electronics end-markets and on overseas growth.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Background |
|---|---|---|---|
Huang Dewei (Wong Tak-Wai) | Chairman, Yingde Gases; legal representative of Hangzhou Yingde Gases Co., Ltd. | Chairman named in the 2024 ESG report | PAG-nominated director; non-executive director of the listed Yingde Gases Group (2017); shareholder representative at the 2018 HQ opening |
Fang Shiwen (方世文) | Chief Executive Officer | Since April 2020 (initially CEO of both Yingde and Baosteel Gases) | Born 1966; B.Eng. in compressors, Xi'an Jiaotong University; joined BOC Shanghai in 1991 and became President of BOC's large-scale supply China business; President of Linde Greater China from October 2006, where he led the Linde–BOC integration in China; President, Linde East Asia (2015); President, Greater China of the merged Linde plc (2019); Chairman of the China board of the Asia Industrial Gases Association; led the "LEAP" strategy and the A1 digital transformation |
Samantha Wong Sze Wing (黄思颖) | Chief Financial Officer | CFO at the October 2026 Malaysia inauguration; director of Yingde Gases Investment Limited (2019) | Long-serving finance executive of the group's offshore entities |
Shen Wei (沈威) | General Manager, Efficiency and Enablement Center (earlier General Manager, Management Center) | Senior management since at least 2018 | Formerly Deputy GM of the Strategic Development Center and Director of Strategic Planning |
Yuan Leyi | General Manager, Human Resources Center | Current (2026) | — |
Pan Yunfeng | Executive Deputy General Manager, Yingde Engineering | Current (2026) | — |
Charlene Quek Chah Lim (郭嘉琳) | Managing Director, NovaAir Industrial Gases Sdn. Bhd. | Current (2023–2026) | Leads Southeast Asian expansion |
“—” = not publicly disclosed.
Board & Management Changes
| Date | Change | Context |
|---|---|---|
2009–2016 | Sun Zhongguo (Mark Sun), Chairman then CEO; Zhao Xiangti, later Chairman; Trevor Strutt, COO | Founder-led listed company |
5 Nov 2016 | He Yuanping appointed CEO, replacing Sun Zhongguo | Boardroom split linked to the Originwater placement |
12 Mar 2017 | Sun Zhongguo reappointed Chairman and CEO; Trevor Strutt COO and executive director; Rawen Huang added as INED | Shareholders ousted Zhao Xiangti and four other directors |
2017–2020 | Qiu Zhongwei, Chairman (PAG era); Li Zhengyu, CEO; Dai Zhanglong, COO | Post-privatisation management |
Apr 2020 | Fang Shiwen appointed CEO of Yingde and Baosteel Gases | Prepared the combination and the planned IPO |
2024–2025 | Huang Dewei named Chairman | Transition to consortium ownership |
Major Shareholders
| Holder | Stake (%) | Notes |
|---|---|---|
Hangzhou Hangmeng Management Consulting Partnership (LP) | 19.55 | Limited partners include Hangzhou Industrial Investment Co., Ltd., a wholly owned subsidiary of Hangzhou Capital; not the largest shareholder; no board seat |
Competitive Landscape
Key Competitors
| Competitor | Segment overlap | Latest revenue | Positioning vs Yingde |
|---|---|---|---|
Linde plc | On-site, merchant, electronics, engineering | US$34.0 billion (FY2025); adjusted operating margin 29.8% | Global leader; dominant in China electronics on-site; large Wanhua relationship |
Air Liquide | On-site, merchant, electronics | €26.94 billion (FY2025); operating margin above 20% | Leading electronics gas supplier in Asia; BOE and SK hynix contracts |
Air Products | On-site, merchant, electronics, hydrogen | US$12.0 billion (FY2025) | Bid for Yingde in 2017; strong in Asian electronics and on-site |
Hangyang Group (002430.SZ) | On-site, merchant, ASU equipment | RMB 15.08 billion (FY2025); gas revenue RMB 9.21 billion | Closest domestic peer; also controlled by Hangzhou Capital; leading ASU equipment maker |
Guanggang Gases (688548.SH) | Electronic bulk gases (N₂, He, H₂, Ar, O₂, CO₂) | RMB 2.42 billion (FY2025) | Leading domestic electronic bulk gas supplier; won 41% of new IC and display gas projects in China in 2024 |
Nippon Sanso / Taiyo Nippon Sanso | Electronics, merchant | Not compared here | Japanese electronics specialist active in China |
Messer | On-site, merchant | Not compared here | Steel and merchant presence in China |
Jinhong Gas | Merchant, specialty, on-site | Not compared here | Fast-growing private specialty and on-site player, expanding overseas |
Qiaoyuan Gas | Merchant, rare gases | Not compared here | South-west China merchant player expanding into electronic-grade products |
Shaangu Power | ASU equipment and gas operations | Not compared here | Domestic equipment maker turned gas operator |
China Shipbuilding (Handan) Peric Special Gases | Electronic specialty gases | RMB 2.26 billion (FY2025) | Leader in NF₃ and WF₆; no bulk overlap |
Peer Comparison FY2025
| Metric | Yingde Gases | Linde | Air Liquide | Hangyang |
|---|---|---|---|---|
Latest disclosed revenue | RMB 16.1 bn (FY2020) | US$34.0 bn (FY2025) | €26.94 bn (FY2025) | RMB 15.08 bn (FY2025) |
Latest revenue growth | 10.7% (FY2020) | 3% (FY2025) | +2% comparable (FY2025) | 9.96% (FY2025) |
Margin indicator | Gross 28%, net 13.2% (FY2020, incl. Baosteel) | Adjusted operating 29.8% | Recurring operating above 20% | Gross 21.0%, net 7.06% |
R&D intensity | — | Not compared | Not compared | Not compared |
Ownership | Private (Hangzhou consortium, PAG ~25%) | Listed (NASDAQ: LIN) | Listed (EPA: AI) | Listed (SZSE: 002430) |
“—” = not publicly disclosed.
