The group claims total revenue from continuing operations recorded a stable year-on-year increase of over 38.2% from HK$186.5 million to HK$251.4 million. According to the statement, the contribution from the New Energy Business has taken up over 99.8% of total revenue for the period in both 2018 and 2019. Profits attributable to the owners of the company dropped slightly by 0.7% to HK$37.9 million compared to the corresponding period. The group claims basic and diluted earnings per share for the current period were HK$1.08 cent (2018: HK$1.11 cent) and HK$1.06 cent (HK$1.10 cent), respectively.
During the current period, the group claims revenues were primarily generated from LNG supply and consultancy services in new energy related construction work, which accounted for approximately 67.6% and 32.2% of the group’s total revenue, respectively.
Entering 4Q19, the group is carrying out strategic plans in order to expand the business scope and scale of the LNG supply business, which has been growing to be one of the key revenue drivers since late 2018. According to the statement, the group hopes to achieve further business expansion with additional efforts placed in LNG supply to reach out beyond Tianjin to any potential regions in the PRC; via working closely with local and international LNG suppliers for achieving a diversified product portfolio; and setting up new joint ventures (JVs) to reinforce LNG supply during the heat supply period and enhance the group’s capability through mergers and acquisitions to meet any future business requirements.
In addition to this, the group also signed a memorandum of understanding (MoU) in October 2019 with Shanghai Jiulian Group regarding cooperation in the LNG industry to form a 60:40 JV. The JV will be used to co-explore end-user markets in the Yangtze River Delta region for maximising the edges of LNG resources of Jiulian Group, while end-user resources of the group. According to the statement, this cooperation enables the group to expand the scope of its LNG business, and secure the supply of LNG resources, and expand its business to the high potential market in the Yangtze River Delta region.
The group also aims to identify opportunities to develop the construction related and consultancy business, which is currently also one of the group’s major sources of revenue. The group claims it will always continue to look for opportunities to venture into business relating to the New Energy Business in order to expand the business and market coverage, and ultimately to build it into a leading diversified and integrated new energy service provider in the Greater China Region.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/13112019/zhonghua-gas-holdings-ltd-announces-results/