|Profit Attributable to the Owners Increased to HK$21.3 million|
HONG KONG, Aug 11, 2018 - (ACN Newswire) - Northern New Energy Holdings Limited ("Northern New Energy" / the "Company"; stock code: 8246) today announces the interim results for the six months ended 30 June 2018 ("the Current Period"). The Group adopted the dual-track development business strategy for its two business segments - the New energy business and the Catering business. It continued to gradually expand the New energy business, while strived to strengthen the Catering business.
Revenue of the Group for the Current Period amounted to approximately HK$141.6 million, representing a significant increase of approximately 111.2% from approximately HK$65.1 million for the six months ended 30 June 2017 ("the Corresponding Period"). Net profit and total comprehensive income attributable to the owners of the Company recorded an increased by approximately 800.4% to approximately HK$21.3 million for the Current Period. The increase was mainly due to seasonality effect of the New Energy business and the profit for the Current Period has resumed to the similar level for the six months ended 30 June 2016. Basic and diluted earnings per share for the Current Period were both HK$0.6 cents, as compared to HK$0.1 cent in the Corresponding Period.
For the Current Period, the Group continued to provide diversified and integrated new energy services in Tainjin, the PRC, of which it provided technological development and consultancy services in relation to heat supply and coal-to-natural gas conversion solutions to customers in Tianjin, coupled with trading of new energy related industrial products. It has completed contracts for construction of outdoor pipeline network and engineering projects including upgrade for de-sulfurization of boiler tower, which contributed significant revenue and profit for the Group in the second quarter.
Furthermore, the Group kicked off the acquisition and cooperation move to further boost its business scopes and service quality. In February 2018, the Group completed the acquisition of 81.8% stake of Tianjin Jin Re Natural Gas Sales Company Limited and has started delivering contribution to the Group since completion of the acquisition. The Group during the Current Period obtained a dangerous chemicals business operation license and is ready to launch the trading or supply of LNG business. The Group at present has been actively applying for the necessary license and permit which would enable it to start the comprehensive LNG business immediately and realize the goal of business diversification for the New Energy business.
Looking ahead, the Group believes that the government's commitment in New Energy state policy will present enormous development opportunities and lay solid foundation for sustainable growth for the technology and the business. The Group will continue to keep eyes to explore suitable acquisition opportunities and forge partnerships with strong industry players in order to enlarge the client base and market share, and further boost the revenue and profitability.
The Group announced on 17 July 2018 to propose to change its English name to "Zhonghua Gas Holdings Limited" to reflect its focus on developing its new energy business and intends to expand its market footprint into whole China, even extending to the Greater China Region. The Group also plans to seek for LNG suppliers, including overseas suppliers, to extend its business scopes to develop the trading or supply of LNG. It is the Group's intention to ultimately develop it into a leading diversified and integrated new energy service provider in the Greater China Region.
As for the Catering business, the Group will review and adjust its business strategy to optimize its business performance. Even competition of the Catering business remains keen, the Group will develop the business steadily. It expects to enhance the operational efficiency and boost the profitability through continuous business integration. Meanwhile, the Group will continue to identify premium investment properties so as to balance secure stable rental income and bring better investment returns to shareholders.
Northern New Energy Holdings Limited
Northern New Energy Holdings Limited is principally engaged in new energy operations and R&D of related technologies, as well as construction engineering business since 2015. The Group also operates restaurants, provides management services, and sells processed food and seafood. The Group also further diversified its business to cover also property investment.
Jovian Communications Ltd
Tel: +852 2581 0168
Aug 11, 2018 15:20 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, Energy, Daily News
From the Asia Corporate News Network
Copyright © 2019 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.