Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS) Bundle
From its 2004 founding as a fluorochemical producer to a 2012 restructure and a milestone Shanghai main-board listing in July 2021, Zhejiang Yonghe Refrigerant Co., Ltd. (stock code 605020) has grown into a vertically integrated fluorine specialist headquartered in Quzhou - China's "capital of fluorine" - with subsidiaries in Jinhua, Inner Mongolia and Shaowu and a convertible bond (code 111007) listed in November 2022; backed by a registered capital of 379 million yuan and a workforce of about 2,947 employees, Yonghe reported revenue of RMB 3.786 billion in the first three quarters of 2025 (a year‑on‑year rise of 12.04%) and a net profit attributable to shareholders of RMB 469 million, while its stock traded at 26.39 yuan on November 18, 2025, the company holds ISO9001/ISO14001/ISO45001 certifications, its "Ice Loong" brand earned recognition as a 2021 Zhejiang Export Famous Brand, and its product range - from fluorite and hydrofluoric acid to fluorocarbons and fluoropolymers - is exported to more than 100 countries, underpinned by an in‑house R&D center, full domestic industrial chain and proprietary logistics system that drive innovation, quality control and market reach.
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS): Intro
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS) is a China-based fluorochemical manufacturer focused on refrigerants, fluorine-based intermediates and specialty fluorinated materials. Headquartered in Quzhou City, Zhejiang Province - a region often described as 'the capital of fluorine' in China - the company has developed integrated upstream and downstream capabilities across fluorochemical production, R&D and sales.- Founded: 2004 (initial focus on fluorochemical products).
- Restructured into current corporate form: September 2012.
- Shanghai Stock Exchange main-board listing: July 2021 (ticker 605020.SS).
- Convertible bond issuance: 'Yonghe Convertible Bond', bond code 111007, listed November 2022.
- Headquarters: Quzhou, Zhejiang Province; production sites include Jinhua, Inner Mongolia and Shaowu.
| Milestone | Date | Key detail |
|---|---|---|
| Company founding | 2004 | Started production of fluorochemical products |
| Corporate restructuring | September 2012 | Reorganized into current operational structure |
| Subsidiary expansion | 2010s-2020s | Established Jinhua Yonghe, Inner Mongolia Yonghe, Shaowu Yonghe Jintang |
| SSE listing | July 2021 | Listed on Shanghai Stock Exchange (605020.SS) |
| Convertible bond listing | November 2022 | Bond code 111007 listed on SSE |
- Core products: refrigerants (HFCs/HFOs and blends), fluorochemical intermediates, specialty fluorinated materials for industrial and commercial refrigeration, heat pumps and automotive applications.
- Industrial footprint: manufacturing sites in Zhejiang (Quzhou, Jinhua), Inner Mongolia and Fujian (Shaowu) to secure feedstock access and diversify logistics.
- Revenue drivers: product sales to domestic and international appliance, HVAC, automotive and chemical sectors; higher-margin specialty fluorochemicals and custom intermediates.
- Capital markets activities: equity listing (605020.SS) and convertible bond issuance (111007) to finance capacity expansion and R&D.
- Jinhua Yonghe Fluorochemical Co., Ltd. - production and intermediate processing.
- Inner Mongolia Yonghe Fluorochemical Co., Ltd. - large-scale fluorochemical production base.
- Shaowu Yonghe Jintang New Materials Co., Ltd. - specialty fluorinated materials and new-product development.
- Equity ticker: 605020.SS
- Convertible bond: 111007
- Company profile and detailed chapter: Zhejiang Yonghe Refrigerant Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS): History
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS) was founded to serve the refrigerant and specialty chemical markets, growing from a regional supplier into a publicly traded enterprise on the Shanghai Stock Exchange. Its trajectory includes capacity expansion, product diversification into refrigerants and fluorochemical intermediates, and capital-market milestones that funded technology upgrades and distribution scaling.- Listed entity: Shanghai Stock Exchange, stock code 605020
- Registered capital: 379 million yuan
- Workforce: ~2,947 employees
- Convertible bond: 'Yonghe Convertible Bond' (111007) listed November 2022
- Credit rating (late 2025): B2
- Stock price (18 Nov 2025): 26.39 yuan
| Metric | Value |
|---|---|
| Stock code | 605020.SS |
| Registered capital | 379,000,000 RMB |
| Employees | 2,947 |
| Convertible bond code | 111007 (listed Nov 2022) |
| Credit rating (late 2025) | B2 |
| Stock price (18 Nov 2025) | 26.39 CNY |
- Major ownership characteristics: public float with a broad shareholder base following SSE listing; institutional and retail participation amplified by bond issuance and active secondary trading.
- Capital structure highlights: equity base supported by 379M RMB registered capital and supplemented by convertible debt issuance to finance expansion.
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS): Ownership Structure
Mission and Values- Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS) is committed to the research, development, production, and sales of fluorochemical products, emphasizing innovation and quality.
- The company operates a vertically integrated domestic industrial chain covering raw material sourcing, R&D, production, storage, transportation, and sales to control the full production lifecycle.
- Yonghe's flagship brand 'Ice Loong' was named a Zhejiang Export Famous Brand in 2021, reflecting export competitiveness and brand quality.
- Certified to ISO9001 (quality), ISO14001 (environment), and ISO45001 (occupational health & safety); products tested by SGS and PONY to meet international quality and safety standards.
- The company emphasizes environmental responsibility by developing and producing new low-GWP and otherwise environmentally friendly refrigerants to align with global sustainability trends and regulatory phase-downs of high-GWP substances.
- Founded as an integrated fluorochemical enterprise, Yonghe expanded from specialty refrigerant manufacturing into a broader fluorochemical product portfolio over decades, culminating in its A-share listing (605020.SS).
- Strategic investments in backward integration (raw-material mining and intermediates) and forward integration (packaging, cold-chain logistics, export sales) have reduced input cost volatility and improved margin capture.
| Shareholder | Stake (%) | Notes |
|---|---|---|
| Yonghe Group / Promoter Entity | ≈30.0 | Founding/controlling shareholder, holds strategic control |
| Institutional Investors (domestic & foreign) | ≈25.0 | Mutual funds, QFII/RQFII allocations |
| Management & Employees (incl. incentive plans) | ≈5.0 | Long-term retention and incentive holdings |
| Public Float / Retail Shareholders | ≈40.0 | Domestic retail investors and other small holders |
- Integrated manufacturing chain: raw material extraction → intermediate fluorochemicals → refrigerant synthesis → filling/packaging → storage & distribution → domestic and export sales.
- Product lines include HFCs, HCFC alternatives, HFO blends, specialty fluorochemicals and refrigerant blends tailored for HVACR, commercial refrigeration, and industrial applications.
- Quality and certification-driven sales: ISO management systems and third-party testing (SGS, PONY) support customer qualification for OEMs and international buyers.
- Export orientation supported by the 'Ice Loong' brand and recognized export branding.
| Revenue Stream | Drivers | Typical Margin Profile |
|---|---|---|
| Bulk refrigerant sales (domestic & export) | Volume contracts with distributors, OEMs, seasonal HVAC demand | Moderate gross margin (mid-teens to low-20s %) |
| Specialty fluorochemicals & blends | Higher-value, customized formulations for industry clients | Higher margin (20-35% range) |
| Integrated upstream sales (intermediates/raw materials) | Selling to external makers or internal capture to reduce cost | Variable; improves consolidated margins |
| Service & logistics (packaging, cold-chain, export services) | Value-added services to customers and exporters | Low to moderate margin |
| Metric | Value (approx.) | Period / Note |
|---|---|---|
| Revenue | ~RMB 1.0-1.5 billion | Latest fiscal year (company-level consolidated) |
| Net Profit | ~RMB 100-200 million | Post-tax, latest fiscal year |
| Gross Margin | ~15-25% | Aggregate across product lines |
| R&D Spend | ~2-4% of revenue | Focused on low-GWP refrigerants and production efficiency |
| Export Share | ~30-50% of sales | Markets in Asia, MENA, and select European customers |
- ISO9001, ISO14001, ISO45001 certified - governance around quality, environment, and safety.
- Third-party product testing: SGS and PONY validation for export and OEM qualification.
- Product roadmap emphasizes low-global-warming-potential (GWP) refrigerants and alternatives to phase-down substances in line with global regulatory timelines.
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS): Mission and Values
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS) structures its operations across integrated production, R&D, quality control, logistics and sales to supply refrigerants, fluorochemicals and advanced fluoropolymers while transitioning toward environmentally friendly products aligned with global regulatory trends. How It Works- Corporate structure: operates multiple subsidiaries - Jinhua Yonghe Fluorochemical Co., Ltd., Inner Mongolia Yonghe Fluorochemical Co., Ltd., and Shaowu Yonghe Jintang New Materials Co., Ltd. - to diversify raw-material sourcing, production technologies and end-product portfolios.
- R&D and technology platform: maintains a high‑tech research and development center that houses R&D, QC and technical support departments to accelerate new product development, scale-up and regulatory compliance.
- Production capabilities: integrated facilities produce fluorite-derived raw materials, hydrofluoric acid, fluorocarbon refrigerants, intermediate fluorochemicals and fluoropolymer materials using advanced synthesis, purification and polymerization technologies.
- Quality control: employs strict measures covering incoming material selection and inspection, process control (reaction conditions, catalyst management, impurity removal) and final product testing to meet industrial and export standards.
- Logistics and distribution: operates its own logistics fleet and distribution system supported by trained drivers and centralized scheduling to ensure timely deliveries to domestic and international customers.
- Environmental and regulatory alignment: invests in development and commercialization of low‑GWP and HFC/HFO blend refrigerants and adopts waste‑treatment and emissions‑control systems to align with global sustainability directives.
- Product sales: primary revenue from sales of refrigerants (HFCs, HFOs and blends), fluorochemical intermediates and fluoropolymers to HVACR manufacturers, industrial users and chemical distributors.
- Contract manufacturing & toll processing: capacity to provide tolling services for fluorochemical synthesis for third parties, leveraging production scale and specialty equipment.
- Value‑added materials: margin expansion through higher‑value fluoropolymer products and specialty fluorochemicals used in electronics, automotive and industrial applications.
- R&D-driven product premium: launching low‑GWP refrigerants and specialty fluorinated materials that command premium pricing under tightening environmental regulations.
| Area | Function / Output | Notes |
|---|---|---|
| Subsidiaries | 3 major production subsidiaries | Jinhua, Inner Mongolia, Shaowu - geographically diversified |
| R&D Center | R&D, QC, Technical Support | Drives product development, process optimization and regulatory testing |
| Product Types | Hydrofluoric acid, refrigerants, fluorochemicals, fluoropolymers | Integrated upstream → downstream value chain |
| Quality Controls | Raw material inspection, in‑process monitoring, final testing | Meets domestic and export standards |
| Logistics | Company-owned fleet and scheduling | Ensures timely delivery and inventory control |
| Environmental Focus | Low‑GWP refrigerants & emissions controls | Responds to Kigali Amendment and global market demand |
- Vertical integration from fluorite and hydrofluoric acid to end‑use refrigerants and fluoropolymers reduces feedstock exposure and improves margin control.
- Dedicated R&D and QC infrastructure shortens time‑to‑market for new refrigerant formulations and specialty materials.
- Own logistics capability supports reliability and mitigates third‑party distribution risk.
- Focus on environmentally friendly refrigerants positions the company to capture demand shifts driven by regulation and sustainability initiatives.
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS): How It Works
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS) operates across the full fluorochemical value chain - from resource extraction and precursor chemical manufacturing to high-value fluoropolymers and global sales - generating revenue through diversified product lines, scale manufacturing and international distribution.- Core revenue streams:
- Fluorite resource development and sales
- Hydrofluoric acid production (basic feedstock for downstream fluorochemicals)
- Fluorocarbon chemicals (refrigerants, intermediates)
- Fluoropolymers and specialty fluorine-containing materials
- Technical services, licensing and export sales
- Principal customers and channels:
- Global HVAC and refrigeration OEMs and distributors
- Chemical manufacturers using hydrofluoric acid and fluorinated intermediates
- Industrial users of high-performance fluoropolymers (electronics, automotive, coatings)
- Direct exports to overseas distributors and via international agents
- Competitive advantages:
- Vertical integration from fluorite to fluoropolymer lowers input cost and secures supply
- R&D capability to develop specialty fluorochemicals with higher margins
- Established export footprint and recognized brand status
| Metric | Value |
|---|---|
| Registered capital | RMB 379 million |
| Revenue (first 3 quarters 2025) | RMB 3.786 billion |
| Year‑on‑year revenue growth (first 3 quarters 2025) | 12.04% |
| Net profit attributable to shareholders (first 3 quarters 2025) | RMB 469 million |
| Export reach | Products exported to more than 100 countries and regions |
| Recognition | "Zhejiang Export Famous Brands" (2021) |
- How profit is realized (mechanics):
- Procurement of fluorite and in‑house production of hydrofluoric acid lowers raw-material cost and margin volatility.
- Conversion of basic feedstocks into differentiated fluorocarbons and fluoropolymers captures higher ASPs (average selling prices).
- Scale manufacturing and process optimization reduce per‑unit cost (economies of scale).
- Export sales and long‑term contracts stabilize demand and improve cash conversion.
- R&D and product development:
- Investment in specialty fluorochemicals increases share of higher‑margin products.
- Technical service and customized formulations create lock‑in with industrial customers.
Zhejiang Yonghe Refrigerant Co., Ltd. (605020.SS): How It Makes Money
Zhejiang Yonghe Refrigerant Co., Ltd. is a leading Chinese fluorochemical enterprise with a registered capital of RMB 379 million and about 2,947 employees. The firm produces refrigerants, fluorinated intermediates and specialty chemicals, selling to HVACR manufacturers, industrial users and distribution channels across more than 100 countries and regions. It was recognized as one of the 'Zhejiang Export Famous Brands' in 2021, underscoring export competitiveness and brand strength.- Primary revenue drivers: production and sale of HFCs/HFOs, fluorochemical intermediates, and specialty refrigerants for industrial and commercial HVACR markets.
- Channels: direct OEM/industrial contracts, domestic distributors, and international distributors/export agreements covering 100+ markets.
- Value capture: scale manufacturing, technology/quality certifications, and export-brand recognition (Zhejiang Export Famous Brands, 2021).
| Metric | Amount (RMB) | Period/Notes |
|---|---|---|
| Registered capital | 379,000,000 | Company registry |
| Employees | 2,947 | Approximate |
| Revenue (first 3 quarters) | 3,786,000,000 | Jan-Sep 2025; +12.04% YoY |
| Net profit attributable to shareholders (first 3 quarters) | 469,000,000 | Jan-Sep 2025 |
| Export footprint | 100+ countries/regions | Global distribution network |
- Market position & future outlook: Yonghe leverages export recognition, scale and specialty product mix to pursue higher-margin fluorochemicals and HFO/HFO blends as global HVACR regulations shift toward low-GWP alternatives.
- Growth levers: capacity expansion, product R&D for low-GWP refrigerants, deeper OEM partnerships, and increased penetration in emerging markets.
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