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| Sunday, 30 August 2015, 20:59 HKT/SGT | |
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HONG KONG, Aug 30, 2015 - (ACN Newswire) - Binhai Investment Company Limited ("Binhai Investment" or the "Company", stock code: 2886.HK) and its subsidiaries(the "Group") are principally engaged in the construction of gas pipeline networks, provision of connection services, sale of piped gas. Binhai Investment is pleased to announce the consolidated results of the Group for the six months ended 30 June 2015 (the "Reporting Period").
Financial Highlights
- Revenue was about HK$131.9 million, representing a YOY increase of 5%
- Gross Profit was about HK$284 million, representing a YOY increase of 32%
- Total asset was increased to approximately HK$561.9 million, representing a YOY increase of 41%
- Net profit was HK$98.9 million, indicating a YOY growth of 19.5%
- The total gas pipeline network was approximately 1,851 km, representing an increase of 61 km as compared with the end of previous year
- The piped gas sales income was HK$104.1 million by a YOY increase of 16%
- Gross profit margin was 21.5%, representing an increase of 4.5 percentage points, the piped gas sales gross profit margin was 9.9%, representing an increase of 7.1 percentage points
For the Reporting Period, the Company recorded revenue of HK$131.9 million (same period in 2014: HK$126.2 million), representing a YOY increase of 5%. The Company's gross profit amounted to HK$284 million (same period in 2014: HK$215 million), representing a YOY increase of 32%. Net profit was HK$98.9 million, indicating a YOY growth of 19.5%. The total assets and consolidated current assets were HK$561.9 million and HK$273.5 million respectively. Gross profit margin was 21.5%, representing an increase of 4.5 percentage points, the piped gas sales gross profit margin was 9.9%, representing an increase of 7.1 percentage points.
Rapid Business Growth for the seventh consecutive year
As the finest green energy, natural gas has been consistently supported by the Chinese national policy. The state has recently launched a series of natural gas uses and air pollution control policies to promote the implementation of the work on "Coal to Gas" and "Oil to Gas". In addition, a more rigid requirement for the aspects of the haze governance in the region of Beijing-Tianjin-Hebei and other areas was raised. The Company continuously dedicated to the sustainable and continuous development of its gas business and has already occupied an important position in the natural gas market in Tianjin Binhai New Area. The Company also focuses on expanding and integrating other cities' resources. With the joint efforts of its management and staffs, the company has achieved a sustainably rapid growth of its business.
Connection Services
The Group constructs gas pipelines for its clients and connects their pipelines to the Group's main gas pipeline networks, and charges connection service fees from industrial and commercial customers, property developers and property management agents. As at 30 June 2015, the Group's total gas pipeline network was approximately 1,851 kilometers, representing an increase of 61 kilometers of the pipeline network as at 31 December 2014. During the Period, the connection service fees amounted to HK$257,814,000.
Piped Gas Sales
During the Period, consumption of piped gas by residential and industrial customers amounted to approximately 1,491 x106 and 8,012 x106 mega-joules respectively, as compared with 1,279 x106 and 7,475 x106 mega-joules respectively for the corresponding period last year. For the Period, the piped gas sales income of the Group amounted to HK$1,041,215,000, representing an increase of 16% as compared with corresponding period last year. With the improvement of the pipe network, the increase in industrial users led to a greater growth in gas consumption.
Gross profit margin increased significantly
For the Period, the gross profit of the Group was HK$28.4 million (same period in 2014: HK$21.5 million) and the gross profit margin for the Group was 21.5% (same period in 2014 17.0%). The gross profit margin of the Group's piped gas sales was 9.9%, representing an increase of 7.1 percentage points or 254% as compared with 2.8% for the corresponding period last year. On 28 February 2015, the National Development and Reform Commission announced to adjust the natural gas city-gate prices for nonresidential use and effective from 1 April 2015. Due to the high proportion of the Group's incremental gas, the price adjustment has substantially improved the gross profit margin of the Group's piped gas. In addition, the Company has developed a new gas source. The competitive supply price reduced the Company's procurement costs.
Prospects
The National Development and Reform Commission issued the "National Climate Change Plan (2014-2020)" (the "Plan") in November 2014. Based on the Plan, the domestic natural gas consumption will reach 360 billion cubic meters by 2020. The domestic natural gas transport trunk and branch lines construction currently improving and gas supply growth has recorded more than double digits. The reform of natural gas price will gradually stimulate the demand for natural gas. The outlook of the natural gas industry remains vast.
In the next half of the financial year, the national economic restructuring will continue and meanwhile short-term pressures will last due to the economic slowdown. However, the Group will strive to achieve sustainable and rapid growth by seizing the opportunities of favorable state policies, benefit from the integration of the Beijing-Tianjin-Hebei region as well as from our business in the haze control industry, and take advantage of a variety of conditions of the Tianjin Free Trade Zone and the Tianjin Binhai New Area.
Looking to the future and facing new opportunities as well as potential challenges, the Group will increase its efforts of market development in the Tianjin Binhai New Area, Beijing-Tianjin-Hebei region and other areas, and expand the scale of customers and marketing as well as the gas sales volume. Moreover, we will continue to strengthen our awareness of cost management, reduce management costs, and improve management efficiency. With our excellent management model and management team, we will continue to build the core competitiveness of the Group and create greater value for our shareholders, employees and the community.
About Binhai Investment Company Limited(2886.hk)
Binhai Investment Company Limited is principally engaged in investments in the construction and operation of gas pipeline networks, provision of connection services, supply and provision of gas, and sale of liquefied petroleum gas in the PRC. The Company listed on the main board in Hong Kong on 11 February 2014 (Stock code: 2886), whose ultimate controlling shareholder is Tianjin TEDA Investment Holding Co. Ltd. As one of the earliest foreign-funded enterprises participating in the public utilities industry in the PRC, the Company is committed to aligning with the national policy of the PRC in providing clean energy for the commercial and industrial users and urban citizens, also developing the gas market in mainland China. Leveraging on the Company's long experience in the industry, safe and trustworthy service quality, professional expertise as well as the close relationship with the local government, Binhai Investment has a coverage of gas business that encompasses seven provinces and two municipalities across the PRC. With the benefits of the abundant resources in Tianjin, the economic center in Bohai Rim area, and leveraging on the rapid development in Binhai New Area, the Company ties in with the thriving development in Binhai New area with a brand new image to strengthen its principal operation, gas business, expand business scale and foster organic growth. For detailed information of the Company, please visit the website of the Company at http://www.binhaiinv.com/.
Topic: Press release summary
Sectors: Daily Finance
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From the Asia Corporate News Network
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