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HONG KONG, Aug 15, 2011 - (ACN Newswire) - China Trends Holdings Limited ("China Trends", Stock Code: 8171.HK), the company focuses on energy-saving digital product solutions, today announced its H1 2011 results for the periods ended 30 June 2011.
Financial Performance Review
During the reported period, China Trends recorded a turnover of approximately HK$49,445,000 (2010: HK$24,738,000), representing an increase of approximately 99.9% as compared to that of previous period. Driven by the increase of trading business, profit attributable to owners of the Company for H1 2011 was approximately HK$1,133,000 (2010: loss HK$ 3,869,000), while basic earnings per share attributable to owners of the Company amounted to 0.02 cents (2010: loss 0.47 cents). The directors do not recommend the payment of an interim dividend.
For the Q2 period from 1 April to 30 June 2011, the Company recorded a turnover of approximately HK$ 20,786,000 (2010: HK$13,342,000), representing an increase of approximately 55.8% as compared to that of previous period. Loss attributable to owners of the Company was approximately HK$ 769,000 (2010: HK$1,959,000), while basic loss per share attributable to owners of the Company amounted to 0.01cents (2009: loss 0.24 cents)
Operation Review
The Group is principally engaged in (i) trading of LED/LCD and related products, and (ii) developing the energy-saving applications for digital products. The applications mainly make use of the energy management contract (CEM) and BOT mechanism which would ultimately apply to different sectors in the society.
On 7 January 2011, the Company entered into a sale and purchase agreement with Joy China Group Limited, pursuant to which, the Company will acquire 100% equity interest in Full Smart Asia Limited, a company incorporated in British Virgin Islands with limited liability, at a consideration of HK$228,000,000. The consideration shall be settled by the Company in the following manner: (i) HK$11,400,000 already paid in cash to the Vendor within 14 business days from the date of signing of the Agreement as deposit; (ii) HK$113,740,000 shall be satisfied by issuing the convertible bonds to the Vendor at completion; and (iii) HK$102,860,000 shall be satisfied by issuing the promissory note to the Vendor at completion.
On 29 June 2011, the Company entered into a supplemental agreement with the Vendor to vary the terms of the Agreement in respect of the Acquisition, (i) since the Company need additional time to consider the structure of the Target Group with the Vendor, all the parties agreed that the completion of the transaction will be postponed to on or before 31 December 2011, and (ii) an additional HK$11,400,000 shall be payable in cash by the Company to the Vendor within 14 Business Days from the date of signing of the supplemental agreement as interest-free refundable deposit.
Outlook
The Group is principally engaged in developing the energy-saving applications for digital products. The applications mainly make use of the energy management contract (CEM) and BOT mechanism which would ultimately apply to different sectors in the society. With the transfer of turnover from traditional products sales to CEM services, the Group believes the switch would enhance the earnings.
According to the CEM 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 three to five years. The Group will then realize its investment return and profit by sharing relevant percentage of the energy saving efficiency realised by the clients' energy saving measures.
The Company's directors and management will dedicate their best effort to lead the Group to strive for the best interests for its shareholders.
Contact:
Carmen Lee
Investor Relationship Department
China Trends Holdings Limited
Email: carmen.lee@8171.com.hk
Tel: +852 2111 9988
Direct: +852 2155 6275
Mobile: +852 6301 6611
Fax: 2111 9989
Topic: Press release summary
Source: China Trends
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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