(Yicai) Feb. 18 -- Guanggang Gases & Energy, a Chinese supplier of industrial and electronic gas, has signed a long-term deal to purchase helium from Qatar’s state-owned petroleum giant QatarEnergy.

Guanggang’s subsidiary in Hong Kong will buy helium from three liquefied natural gas-producing units of QatarEnergy between September 2025 and December 2045, the Guangzhou-based parent company announced yesterday.

The deal’s annual procurement volume will be initially calculated based on a percentage of the suppliers’ annual helium production and will gradually increase over time to reach about 100 million standard cubic feet a year, Guanggang noted, without unveiling any further details.

The implementation of the agreement will help Guanggang open up long-term procurement channels in the international helium market and guarantee a stable gas supply, the firm pointed out.

The main customers of Guanggang’s helium business are from the integrated circuit and semiconductor display industries. The business’ sales revenue and gross profit margin declined last year because of helium price fluctuations.

This also affected the company’s overall net profit, which narrowed 25 percent to CNY240 million (USD33 million) last year from the previous one, according to its 2024 earnings report released yesterday. Revenue rose 14 percent to CNY2.1 billion (USD288 million), mainly thanks to the commissioning of several new electronic gas projects.

Natural gas is the main source of industrial helium. High-purity helium products can be separated from natural gas through a series of physical separation processes.

Guanggang’s shares [SHA: 688548] were trading down 0.2 percent at CNY9.96 (USD1.37) as of lunch break in Shanghai today.

Editor: Futura Costaglione