Electronic & Specialty Gases

Huate Gas said at its 2026 semi-annual results briefing on October 8 that the number of products for which it has achieved import substitution has increased from 22 at the time of its IPO to 57, and that it will focus on commercializing high-end electronic specialty gases such as disilane, hydrogen bromide, and boron trichloride. In response to investor questions about continued share reductions by employee shareholding platforms and senior executives, the company said that the three entities, including Xiamen Huahong Duofu, are all pre-IPO employee shareholding platforms established in 2012, and that the reductions were driven by partners' capital planning needs. There was no cashing out at highs or lack of confidence in the company's development, and block trades with certain discounts were chosen to improve reduction efficiency and reduce the impact on the secondary market. The company said its sales pricing comprehensively considers factors such as product costs, market competition, and customers' gas consumption scale, stability, and credit periods, with pricing characterized by case-by-case negotiation. On the performance front, the 2026 semi-annual report published on August 25 showed operating revenue of 872 million yuan, up 28.95 percent year on year; net profit attributable to the parent company of 92.83 million yuan, up 19.16 percent; non-GAAP net profit attributable to the parent company of 89.94 million yuan, up 19.29 percent; and net operating cash flow of 133 million yuan, up 46.93 percent year on year. In the first half, specialty gas business revenue reached 586.04 million yuan, up 38.56 percent year on year, semiconductor segment revenue reached 342.89 million yuan, up 28.22 percent year on year, and helium and related products accounted for about 20 percent of total operating revenue, with revenue up 133 percent year on year.

Air Products and Chemicals, Inc. has entered a definitive agreement with PG Cold Energy 1 Sdn. Bhd. to design, build and operate Malaysia's first LNG-based air separation unit, located at the Pengerang LNG regasification terminal in Johor and expected to come online by early 2027. The facility will produce more than 600 tons per day of liquid oxygen, nitrogen and argon, supplying the merchant market and rising demand from the electrical and electronics, petrochemical, aerospace and manufacturing sectors. The unit will use cold energy generated during LNG regasification to liquefy air at low temperatures, cutting energy consumption and production-related emissions. The project reinforces Air Products' long-standing relationship with PETRONAS Gas Berhad and adds to its LNG-based air separation units in Asia, with operations in Malaysia dating back to 1974. APD shares have gained 5.8% in the past year against the industry's 0.3% decline in the same period.

Xinya Electronic announced on the evening of October 7 that the company is planning to acquire a controlling stake in Shanghai Qiyuan Gas Development Co., Ltd. through a combination of share issuance and cash payment, along with raising supporting funds. The transaction is expected to constitute a major asset restructuring. Trading in the company's shares will be suspended from the market open on October 8, and the transaction plan is expected to be disclosed within no more than 10 trading days. On the last trading day before the suspension, September 30, Xinya Electronic's share price closed at 9.10 yuan per share, up 10.04 percent, with a total market value of 4.609 billion yuan. The announcement shows that the preliminary counterparty for this transaction is Shanghai Qiyuan Semiconductor Materials Co., Ltd., and the two parties have signed an acquisition intention agreement. Qiyuan Semiconductor is the largest shareholder of Qiyuan Gas, with a direct shareholding ratio of 29.76 percent, and its controlling shareholder Yu Jun is also the actual controller of Qiyuan Gas. Xinya Electronic plans to implement this transaction through share issuance and cash payment, but it does not constitute a related-party transaction or a reverse merger. After the transaction is completed, Qiyuan Semiconductor's shareholding in Xinya Electronic will not exceed 5 percent, and the final counterparty has not yet been determined. Qiyuan Gas was established in 2009 and has completed six rounds of financing. Investors include state-owned investment platforms such as Central Enterprise Rural Industry Investment Fund Co., Ltd. and Feidong County Science and Technology Innovation Industry Investment Partnership, as well as TEMC, a South Korean electronic gas producer. Xinya Electronic's net profit attributable to the parent company for 2023, 2024, 2025, and the first half of 2026 was negative 241 million yuan, negative 236 million yuan, negative 22.2772 million yuan, and negative 11.7108 million yuan, respectively.

Elliott Investment Management, which advises funds holding a significant economic interest in L'Air Liquide S.A., issued a statement welcoming the value-creating initiatives announced as part of Air Liquide's new strategic plan at its 2026 Capital Markets Day. Elliott highlighted the company's target to improve margins by 400 to 600 basis points by 2030 and its first-ever large share buyback, which the activist investor said should start immediately. The firm also pointed to Air Liquide's targets for annual growth of 5% in revenue and 10% in EPS through 2030, saying they highlight the strength of its business and the opportunities in AI, electronics, healthcare and space. Elliott called the announcements a positive first step that reflects the company's traditionally prudent approach and leaves room for significant outperformance, and said it looks forward to continued constructive dialogue as Air Liquide works to close margin and valuation gaps with peers. Elliott Investment Management manages approximately $80.3 billion of assets as of June 30, 2026, and was founded in 1977.

Air Liquide unveiled a new strategic plan through 2030 on Monday, targeting annual growth in recurring net earnings per share of about 10% and launching its first-ever share buyback program, worth €4 billion over 2027-2028. The plan, named BEYOND, aims for compound annual growth of 10%, plus or minus 2 percentage points, in recurring net EPS from the end of 2025 to the end of 2030, along with recurring return on capital employed above 11% in 2030. The French industrial gases group expects sales to grow at a compound annual rate of 5%, plus or minus 1 point, outpacing industrial production by a factor of two to three, and targets a cumulative operating margin improvement of 400 to 600 basis points over 2026-2030. Capital allocation of more than €40 billion over the period will cover investments, acquisitions, dividends and buybacks, with more than half going toward industrial investments and acquisitions and about €24 billion in industrial investment decisions planned. Air Liquide named four priority markets — electronics and artificial intelligence, energy transition, healthcare and space — and said it expects electronics sales to grow at a weighted average annual rate above 10% over 2026-2030. CEO François Jackow said the group's profitability now allows it to go beyond reinvestment, including through the buyback and annual employee share purchase plans, and the company reaffirmed a 33% cut in Scope 1 and 2 carbon dioxide emissions by 2035 from 2020 levels and carbon neutrality by 2050.