China Risun GP's international layout is showing the flywheel effect, extending its layout in the hydrogen energy sector to build a sustainable future.

Since 2023, both the macroeconomic situation and the situation in various industries have remained difficult and have not eased. It is possible that the downward pressure has become more severe due to the lagging release effects of some unfavorable factors. As a midstream product in the black industry chain, coke is closely related to industries such as infrastructure and real estate. Its price is not only influenced by the macroeconomic environment but also by the supply and demand dynamics of the industry chain. The market performance of related companies is inevitably under pressure. Looking back at 2023, Zhitong App noticed that CHINA RISUN GP (01907) has grown against the market trend during the industry adjustment period, making a series of effective efforts in cost reduction, efficiency improvement, business extension, energy conservation, emission reduction, and social responsibility. Its scale advantage has consolidated its leading position.

Expanding Business Growth with Overseas Expansion, Further Consolidating Leading Position

This year marks the tenth anniversary of China's "Belt and Road" initiative. Against the backdrop of the increasing international recognition of this initiative, expanding overseas and implementing the domestic and international dual circulation development pattern is the inevitable choice for CHINA RISUN GP's business. The Weishan coking project in Indonesia, with an annual production capacity of 4.8 million tons, is the first overseas manufacturing park built by CHINA RISUN GP in response to the national "Belt and Road" initiative under the guidance of its "national layout + global development" strategy. Starting in July 2023, the Weishan coking project in Indonesia has been put into operation successively, marking the beginning of CHINA RISUN GP's new journey of internationalization. At the same time, the project has obtained the export quota for 2023 and opened up the sales of high-quality coke to global customers. It has also successfully obtained the export quota for 2024, ensuring the project can provide continuous supply of high-quality products and excellent services to customers worldwide.

In terms of park layout, CHINA RISUN GP's industrial parks have expanded to include Xingtai, Dingzhou, Leting, and Cangzhou in addition to the initial four parks. They have also expanded to Hohhot in Inner Mongolia, Yuncheng in Shandong, Dongming in Shandong, and Sulawesi in Indonesia. The industrial and sales chains cover most parts of the country. In June 2023, the second phase of the Hohhot park, with an annual production capacity of 3.6 million tons of coking and comprehensive utilization of hydrogen, was fully put into operation. Based on this, CHINA RISUN GP plans to implement the innovative development of fine chemical industry chain, coal-based new materials industry chain, carbon-based new materials industry chain, and hydrogen energy industry chain. In the future, through national layout + global development, balanced development of different products, synergy between coke and chemical industry, balance between petrochemical and coal chemical industry, balance between internal investment and external mergers and acquisitions, and balanced allocation of light and heavy assets, CHINA RISUN GP aims to achieve cyclical growth and stable growth.

Selected in MSCI Global Small Cap Index, Long-term Deep Cultivation Recognized

In November 2023, MSCI (Morgan Stanley Capital International), an international authoritative index institution, announced the results of its November index review. CHINA RISUN GP was included in the MSCI Global Small Cap Index. Since its listing on the Hong Kong Stock Exchange on March 15, 2019, China Risun GP has gained extensive attention and recognition from the capital market. It has been included in various classification index components of the Hang Seng Index and FTSE Index, and has become a target of the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. The inclusion of China Risun GP in the MSCI Global Small Cap Index further demonstrates the global capital market's high recognition of the company's performance in the Hong Kong capital market since its listing. According to the WIND system, as of January 31, 2024, the holding volume through the Hong Kong Stock Connect has reached 32 million shares, with a market value of HKD 980 million. Compared with the holding volume of 4 million shares and a market value of HKD 10 million on December 31, 2019, the company's holding volume through the Hong Kong Stock Connect has continuously increased, growing by about 80 times. Analysts from domestic and foreign brokerage institutions such as Guotai Junan, CITIC Securities, Anxin International, Kaiyuan Securities, Guosheng Securities, Zhongtai Securities, Haitong Securities, and Haitong International have issued multiple research reports, all giving China Risun GP a "buy" or "hold" rating.

At the same time, in the field of investor relations, China Risun GP actively holds performance briefings and conducts online and offline roadshows and park reverse roadshows with institutional investors. It actively participates in domestic and foreign industry strategy conferences, maintains close communication with research institutions, analysts, investors, media organizations, and establishes a good communication mechanism to ensure the timeliness and accessibility of investor communication. On January 11, 2024, China Risun GP won the "Best Capital Market Communication Award" in the 7th China Excellent IR Selection, which fully reflects the industry's high recognition of the company's capital market communication work and further enhances the company's good image in the domestic capital market.

According to statistics, in 2023, China Risun GP conducted 108 roadshows and communicated with 266 domestic and foreign investment institutions. In the future, China Risun GP will always adhere to the "dual coordination and dual drive" of the capital market and production and operation, focus on core business, deepen innovation and development, and continue to communicate and interact with the market and investors, multi-channel display and disseminate company value, better return to customers, shareholders, and society, and write a new chapter of high-quality development.

Actively promoting ultra-low emission transformation in coking to support green, low-carbon, and high-quality development of the industry

In recent years, although the green transformation and upgrading of the coking industry in China has achieved positive results, the optimization and adjustment of the industry structure and layout cannot be achieved overnight. It still needs to accelerate the green transformation and upgrading of the industry through the implementation of major projects such as ultra-low emission. The implementation of ultra-low emission transformation in the coking industry is a systematic project, which not only requires the improvement of the company's air pollution control and management level in the whole process and all processes, but also requires the optimization and adjustment of the industrial structure, energy structure, and transportation structure. The implementation process of ultra-low emission transformation needs to achieve coordinated control of multiple pollutants, and promote the "dual reduction" of pollutant emission intensity and carbon emission intensity. CHINA RISUN GP, starting from the complete industrial chain of coking and chemical business, implements various measures such as energy saving and emission reduction, low-carbon environmental protection, and recycling. Specifically, CHINA RISUN GP focuses on the construction of energy-saving devices and equipment, and has invested in the construction of a smart energy management center, flue gas waste heat recovery, industrial waste heat heating, and dry quenching coke power generation and other large-scale energy-saving projects, achieving comprehensive energy efficiency improvement. It also emphasizes lean control in actual operation, such as reducing energy input and focusing on the recovery and utilization of waste heat and energy, effectively improving energy utilization efficiency, reducing unit product energy consumption, and achieving green, low-carbon, and energy-saving operation throughout the entire industrial chain.

In the past year, the Group has achieved carbon reduction of 3.69 million tons and carbon capture of 7,500 tons through technological transformation and optimization. The energy consumption of coking is 108.49 kg of standard coal per ton, which is lower than the industry average (140 kg of standard coal per ton). Through 88 process technological improvements such as flue gas waste heat recovery, it has saved 2.9573 million cubic meters of water resources and 23.3739 million kWh of electricity. The concentration of particulate matter is less than 5 mg/m³, SO2 is less than 10 mg/m³, and NOx is less than 30 mg/m³, which has reached the provincial ultra-low emission standards.

Coupling Development of Hydrogen Energy and Traditional Energy Industry to Continuously Strengthen Differentiated Competitive Advantages

In the context of "dual carbon", coking enterprises face tremendous pressure to reduce emissions and also face the pressure of economic green and low-carbon transformation. It is necessary to coordinate the relationship between development and emission reduction, and the relationship between short-term and long-term goals.

As the world's largest independent producer and supplier of coke, as well as a comprehensive producer and supplier of coking products, fine chemical products, and hydrogen energy products that maintain a leading position in China and multiple global fields, CHINA RISUN GP actively responds to the needs of the times. With its six advantages of hydrogen resources, cost, region, quality, technology, and low carbon, CHINA RISUN GP has established the CHINA RISUN GP Hydrogen Energy Research Institute. It has also established hydrogen energy subsidiaries in Xingtai, Hohhot, Yuncheng, and Baoding, relying on its forward-looking strategic vision to solidify the foundation for the strong development of the hydrogen energy industry.

Through the layout of the entire industry chain of production, storage, transportation, addition, research, and utilization, CHINA RISUN GP has successfully established itself as the largest supplier of high-purity hydrogen in the Beijing-Tianjin-Hebei region of China. At the same time, in March 2023, CHINA RISUN GP obtained the national certification for "low-carbon hydrogen, clean hydrogen, and renewable hydrogen standards and evaluation," becoming one of the first domestic companies to officially obtain the certification for clean hydrogen in demonstration city clusters. In September 2023, CHINA RISUN GP's "hydrogen liquefaction storage and long-distance pipeline transportation scenario" was selected for the first batch of innovative application scenarios in the hydrogen energy industry in Hebei Province, highlighting the leading role of industry benchmark enterprises. Based on its nearly 400 self-owned transportation routes and an annual transportation volume of 41 million tons, CHINA RISUN GP requires approximately 1.28 million heavy trucks. With the enormous advantage of hydrogen vehicles replacing traditional ones, CHINA RISUN GP has successfully established five hydrogen-powered truck application scenarios in collaboration with upstream and downstream enterprises. These scenarios include routes from CHINA RISUN GP in Dingzhou, Hebei to Xinzhou Ausen Steel, from CHINA RISUN GP in Dingzhou, Hebei to Tianjin Rongcheng Steel, from Tianjin Port to CHINA RISUN GP in Dingzhou, Hebei, from CHINA RISUN GP in Zhongmei to Xingtai Delong Steel, and the Rongyi transportation route in Baoding. By reducing the cost of hydrogen transportation and focusing on both hydrogen energy and emission reduction, CHINA RISUN GP aims to continuously expand its scale.

Currently, CHINA RISUN GP is committed to building a hydrogen energy guarantee base in Dingzhou, serving Beijing, radiating the Beijing-Tianjin-Hebei region, and assisting in the construction of an integrated closed-loop hydrogen energy industry circle. With the development vision of the hydrogen energy industry chain, CHINA RISUN GP aims to accelerate the formation of a multi-grade hydrogen gas product supply and an hydrogen energy transportation network (especially the logistics network) in the Beijing-Tianjin-Hebei region. This will promote the gradual transition of the hydrogen energy industry from demonstration to large-scale and market-oriented development, contribute to the establishment of a hydrogen energy industry hub, and promote the development of the hydrogen energy industry in the capital and the Beijing-Tianjin-Hebei region.

Paying Tribute to the Future with ESG Achievements and Winning Multiple Prestigious Awards

Under the guidance of top-level strategies and policies such as high-quality development and the "dual carbon" goals, ESG (Environmental, Social, and Governance) has gradually deepened its development in China and become an intrinsic driving force for economic growth. For enterprises and the market, ESG is not only a non-financial dimension of value consideration but also an important component that internalizes corporate mission, core business drivers, and market competitiveness.

As a long-term advocate of fulfilling social responsibilities, CHINA RISUN GP has once again been recognized internationally by receiving the Outstanding Green and Sustainable Loan Issuer (Raw Materials Industry) award from the Hong Kong Quality Assurance Agency by the end of 2023. In addition, CHINA RISUN GP has repeatedly won awards such as the "ESG Pioneer Listed Company Award" at the 2023 Times Financial Golden Orange Awards initiated by Guangdong Times Media Group and the "Most Socially Responsible Listed Company Award" in the China Listed Company Reputation Rankings. These consecutive honors in ESG social responsibility not only affirm CHINA RISUN GP's long-standing commitment to ESG principles but also serve as motivation for CHINA RISUN GP to make greater contributions to investors and society.

In the future, CHINA RISUN GP will continue to improve its ESG compliance management framework, implement control and improvement measures for ESG, fundamentally enhance its own ESG performance, and realize the external and internal values and driving forces of ESG. CHINA RISUN GP will contribute to the high-quality development of the economy and society and strive to achieve its vision goal of being a "world-leading energy and chemical company that leads innovation into the future."