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HONG KONG, Mar 6, 2012 - (ACN Newswire) - China Trends Holdings Limited ("China Trends", Stock Code: 8171.HK), the company focuses on energy-saving digital industry applications and energy performance contracting(EPC) business, announced its 2011 financial results for the periods ended 31 December 2011.
Financial Performance Review
During the reported period, China Trends recorded a turnover of HK$85,367,000 (2010: HK$37,108,000), the increase in revenue was due to the expansion the trading business of the Group. Loss attributable to owners of the Company was HK$ 502,368,000 (2010: HK$8,813,000), the loss was mainly due to the impairment losses on intangible assets. Basic loss per share attributable to owners of the Company amounted to 7.57 cents (2010: 0.24 cents). The directors do not recommend the payment of dividend.
Operation Review
On 7 January 2011, the Company entered into the sale and purchase agreement with Joy China Group Limited("Joy China"), pursuant to which the Company has agreed to acquire 100% equity interest in Full Smart Asia Limited("Full Smart") at a consideration of HK$228,000,000, HK$11,400,000 was paid in cash by the Company to Joy China. On 29 June 2011, the Company entered into a supplemental agreement with Joy China to vary the terms of the agreement in respect of the acquisition. An additional HK$11,400,000 was paid in cash by the Company to Joy China as interest-free refundable deposit. On 23 December 2011, the Company entered into a second supplemental agreement with Joy China to vary the terms of the agreement and first supplemental agreement of the acquisition, with effect from 1 January 2012, (i) the Company and Joy China have agreed to turn HK$22,800,000 deposit paid by the Company into 20% of the sale share; and (ii) the Company reserve the right to acquire the remaining 80% of the sale share before 1 January 2015 by paying HK$113,740,000 convertible bonds and HK$91,460,000 promissory note to the Vendor when the net asset value of Full Smart and Dooda Innovation (China) Limited reach HK$228,000,000.
On 1 September 2011, the Company entered into a cooperative framework agreement with independent third party and Boss Dream Cultural Communication Company Limited "Boss Cultural" to acquire the entire issued share capital of Beijing Need Education Technology Company Limited. The Company also terminated the Project Cooperation Agreement signed by a subsidiary of Company, Boss (China) Systems Limited and Boss Cultural dated 1 October 2011. On 17 February 2012, the Company decided to suspend acquiring the entire share capital of Beijing Need Education.
Outlook
The Group is principally engaged in trading of electronic technology and related products, and the low-carbon energy-saving applications for digital products. The applications mainly make use of the energy performance contracting (EPC) and BOT mechanism which would ultimately apply to different sectors in the society and different cities. With the transfer of turnover from traditional products sales to EPC services, the Group believes the switch would enhance the earnings.
According to the EPC business model, the commercial operating model provides a set of energy saving services, project financing, engineering construction, and related services to the clients in a contract of five years. The Group will then realize its investment return and profit by sharing the energy saving efficiency realised by the clients' energy saving measures.
Contact:
China Trends Holdings Limited
Email: carmen.lee@8171.com.hk
Tel: (852) 2111 9988
Fax: (852) 2111 9989
Topic: Press release summary
Source: China Trends
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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