ENVIRONMENTALLY FRIENDLY refrigerant distributor Greencool Technology Holdings has had an enviable position among companies listed on the Growth Enterprise Market (GEM).
Touted as the second board's most profitable company last year, it has set itself apart from its dotcom peers which saw their share prices pummelled by losses quarter after quarter despite having huge cash piles.
Its share price closed at HK$3.47 yesterday, 59.4 per cent higher than its initial public offering price of HK$2.18 when it listed in July last year.
It was another China growth story with 'supernormal [profit] margins' and a 'virtual monopoly' in the country's industrial and commercial refrigeration and air-conditioning replacement market, according to a July research report from HSBC Securities.
The company is also fancied to cash in on Beijing's pledge to make itself a city free of chloro-fluorocarbons (CFC) by the 2008 Olympics.
Greencool derived 91.3 per cent of total revenues last year from projects converting refrigerants containing ozone-depleting CFC to CFC-free ones, and the remainder from sales of refrigerants.
Greencool Technology has a 20-year exclusive right to distribute refrigerants manufactured by its parent Greencool Tianjin, which is controlled by chairman Gu Chujun.