HONG KONG, Apr 28, 2010 - (ACN Newswire) - New Environmental Energy Holdings Limited ("New Environmental Energy" or the "Group", Stock Code: 3989.HK), formerly Hembly International Holdings Limited, today reported a revenue of HK$823 million in 2009, representing a decrease of 39.3% over last year. Net loss attributable to the Company's equity holders amounted to HK$978 million, incurred as a result of two accounting treatment items on impairment losses on goodwill, property, plant and equipment and other provisions, amounting to approximately HK$800 million which was non cash in nature.
Financial Highlights (For the year ended 31 December)
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2009 2008
(HK$'000) (HK$'000)
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Continuing operations*
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Revenue 740,218 1,094,892
Gross profit 25,639 220,605
(Loss) profit for the (920,871) 21,872
year from continuing operations
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Discontinued operation*
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(Loss) profit for the year from (57,315) (20,398)
discontinued operation
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From continuing and discontinued operation
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(Loss) profit for the year (978,186) 1,474
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Basic earnings (loss) per share HK(225.98)cents HK2.76 cents
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* Note: Supply chain services and waste-to-energy business are classified as "Continuing Operations" and distribution and retailing business are classified as "Discontinued Operations"
The waste-to-energy business, of which acquisition was completed in December 2009, contributed HK$11.4 million to the Group's revenue for the year.
The impairment has not recorded significant adverse impact to the financial performance of the Group for the year ended 31 December 2009, and is expected to fade down in the next fiscal year as the reorganization nears completion. Going forward, the Group will actively work out JV contracts with local governments and continue to strengthen the waste-to-energy business to achieve a leading position in the industry.
Given the need for prudent allocation of resources, the Board does not recommend the payment of a final dividend for the year ended 31 December 2009.
Supply Chain Services
The supply chain services, which accounted for 88.6% of the Group's revenue, reached HK$729 million in the year under review, representing a decrease of approximately 33.4% from the previous year. Gross profit margin dropped from 22.3% to 3.0% due to a shift from manufacturing to trading which resulted in reduced margins and increased stock provisions.
Distribution and Retailing Businesses
Distribution and retailing businesses, which accounted for approximately 10.0% of the Group's revenue, reached HK$82 million in the year under review, representing a decrease of 68.5% from the previous year. Gross profit margin for this segment recorded a slight increase from 55.3% to 56.0%. Since the Group has disposed of the distribution and retailing businesses on 30 October 2009, therefore, revenue attributed to Group was derived only for the first 10 months of the year.
Outlook
Looking ahead, the Group will focus on the rapidly growing waste-to-energy market in China. "The coming five years will see a period of fast expansion in waste management on the mainland. We expect a proliferation in new waste treatment projects being commissioned by municipal governments, as well as increased investments in upgrading existing ones. Our facility in Shenzhen is a good example. We will be upgrading the incineration technology at our plant to comply with reduced carbon emission standard, in return we will receive a raise of over 40% in the tipping fee we collect," said Mr. Steven Shi, President of Technology Group, Smartview Investment Holdings Limited, a wholly owned subsidiary of New Environmental Energy Holdings Limited.
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Topic: Press release summary
Source: New Environmental Energy
Sectors: Film & Video, Energy, Alternatives
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