KUALA LUMPUR (Oct 9): Hengyuan Refining Co Bhd has appointed Yin Lujiang as chief executive officer of the petroleum products refining and manufacturing group, effective immediately.

He replaces Zulhazmi Mohamad, who is ceasing his duties and responsibilities as the acting CEO.

In a filing with Bursa Malaysia on Monday, Hengyuan said Yin will undertake all duties and responsibilities from Zulhazmi. On Aug 8 this year, Zulhazmi, 52, had taken over that role from Li Bin, who had resigned citing health reasons.

The CEO seat has been vacant since Grant Gao JinLiang’s employment term ended on July 3, 2023 after two years on the job. His contract was not extended.

According to Hengyuan, Yin, 52, has held various positions with Refinery of Sinopec (Qilu Branch) between July 1993 and October 2012. He then joined ChemChina Oil & Gas Corp between October 2012 and Sept 28, 2023. Prior to joining Hengyuan, he was with China Sinochem Oil & Gas Corp between February 2021 and September 2023.

In the first six months ended June 30, 2023 (1HFY2023), Hengyuan fell into the red, posting a net loss of RM216.05 million compared with a net profit of RM714.94 million a year earlier. Revenue fell 33% year-on-year to RM7.92 billion in 1HFY2023 from RM11.84 billion.

Hengyuan attributed the weak 1HFY2023 performance to lower average product prices, coupled with lower sales volume due to a major turnaround exercise that commenced in June and was completed in August.

The largest shareholder of Hengyuan was Malaysia Hengyuan International Ltd (MHIL), with a 37.9% stake as at March 31, 2023. MHIL is wholly owned by Heng Yuan Holdings Ltd, which in turn is a wholly-owned subsidiary of Shandong Hengyuan Petrochemical Co Ltd (SHPC). The ultimate controlling shareholder of SHPC is China’s Shandong Hengyuan Petrochemical Group Co Ltd.

Hengyuan shares closed five sen or 1.6% higher at RM3.18 on Monday, giving it a market capitalisation of RM954 million.