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Northern New Energy Announces 2016 First Quarter Results
Business Transformation Proves Successful with Turnaround in Profit
HONG KONG, May 11, 2016 - (ACN Newswire) - Northern New Energy Holdings Limited ("Northern New Energy" / the "Group;" stock code: 8246) has today announced its first quarter results for the three months ended 31 March 2016. During the period under review, the Group has proactively responded to the changes of the business environment and captured market opportunities, consequently achieving a turnaround in profit.
The significant increase in the total revenue and profit of the Group in the first quarter of 2016 was mainly generated by the Group's new income stream from its new energy business since the last quarter of 2015. For the three months ended 31 March 2016, net profit and total comprehensive income of the Group amounted to RMB 2,816,000 (Corresponding period in 2015: net loss and total comprehensive expense of RMB 6,789,000). Profit attributable to the owners of the Company amounted to RMB 2,345,000 (Corresponding period in 2015: loss attributable to the owners of the Company of RMB6,714,000). Basic earnings per share were RMB 0.5 cents (Corresponding period in 2015: basic loss per share of RMB 2 cents).
Mr. Hu Yishi, Executive Chairman and Executive Director of Northern New Energy said, "Thanks to the unfaltering commitment of the management team, the Group recorded an encouraging result. During the period under review, the Group has been adopting a prudently aggressive approach with stringent procedures to more effectively manage business risk. Apart from boosting its efforts to develop the new energy business, the Group has maintained the existing operations of the restaurant and processed food businesses, as well as continuously explored investment projects which can provide stable returns."
With the establishment and commencement of operations of Hua Xia Northern New Energy Technology Development (Tianjin) Limited ("Hua Xia Northern New Energy"), and its encouraging results to date, the Group has clearly set the new energy business as the focus of its future development. On 15 March 2016, Hua Xia Northern New Energy has signed a Letter of Intent with Tianjin Jinre Heat Company Ltd*; CNOOC Gas & Power Group*; Tianjin Ding Wang Property Services Company Ltd* and Tianjin Chengxi Heat Supply Co., Ltd*. The parties intend to collaborate and invest in the establishment of a JV Company, Tianjin Jinre Hua Xia New Energy / JV Company for the Liquefied Natural Gas (LNG) Heat Supply and Integrated Utilisation Project located in Xinkou Town, Xiqing District in Tianjin.
The total amount to be invested in the project is RMB 50 million, in which Hua Xia Northern New Energy is to own 20% of interest in the JV Company. The project will leverage the advantage of clean energy and develop other fields such as gas filling stations for vehicles, natural gas supply for industrial and civil use, and integrated utilisation of LNG cold energy based on the conditions in the region. Currently, the parties are discussing the details for cooperation. All resources of the project company are to be provided by CNOOC Gas & Power Group, which should help maximise the gains of the project company.
Mr. Hu added, "Following the great success achieved in the fourth quarter of 2015, the turnaround in the review period has continued to prove that the Group's strategic decision on shifting its focus to the new energy business was correct. Although the first quarter is the annual slow season of coal-to-natural gas projects, several such projects for conversion heating in Xiqing District and Beichen District in Tianjin completed during the period have contributed a new profit stream exceeding the performance of the Group's catering business. The Group believes that a strong demand for coal-to-natural gas conversion heating projects exists in Northern China, therefore it will seek opportunities to expand into neighbouring areas."
"In the long run, the Group will analyze the nationwide situation, and allocate resources to areas with greater potential. To boost its new energy business, it will review its business model and launch services and products to address market needs at the appropriate time, with the aim to extend its business further along the industry chain and capture the enormous market opportunities. In addition, the Group will continue to explore new business areas and market opportunities to develop in different sectors with solid growth potential, within which it will identify suitable investment properties that can generate stable rental income and thereby utilise its resources more efficiently."
* No official English name of the company is available.
Contact:Strategic Financial Relations Limited
Heidi So +852 2864 4826 heidi.so@sprg.com.hk
Keris Leung +852 2864 4863 keris.leung@sprg.com.hk
Caley Chan +852 2114 4950 caley.chan@sprg.com.hk
Source: Northern New Energy Holdings Limited
Sectors: Daily Finance, Daily News
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