Revenue and total gas volume from natural
gas business increased significantly
Highlights
- Revenue from natural gas business
increased 173.1% to HK$115.3 million
- Total gas sales volume sold increased
by 200.3% to 53.9 million cubic meters
- Profit for the period attributable to
owners of the Company amounted to HK$2.2 million, of which the
Group recorded a loss of HK$3.5 million last year
- The Group’s natural gas projects
covered 8 provinces
- Successfully introduced Beijing Gas as
the single largest shareholder and will continue to explore and
identify more synergistic opportunities
Financial Highlights
6 months ended 30 June HK$ ‘000
2016 2015 Revenue
115,296
90,742 Sales of natural gas and other related products
115,296 42,210 Sales of book and specialized products
- 48,532 Gross Profit
4,175 (4,193) Profit/(loss) for
the period attributable to owners of the Company
2,208
(3,457) Basic earnings per share (HK cents)
0.03 (0.07)
Blue Sky Power Holdings Limited (or “the Company”,
together with its subsidiaries, the “Group”, HKSE stock code: 6828)
announced its interim results for the 6 months ended 30 June 2016
(“HY2016”). In HY2016, Blue Sky Power recorded a profit
attributable to owners of the Company amounted to HK$2.2 million
(HY2015: loss 3.5 million), and recorded total revenue of HK$115.3
million (HY2015: 90.7 million), representing a growth of 27.1%
year-on-year, which came entirely from the natural gas
business.
Rapid growth in natural gas business
Since 2014, the Group has focused on transforming itself into an
integrated natural gas provider, distributor and operator, with an
emphasis on the mid- to downstream side of the natural gas industry
value chain.
Owing to the growth of our natural gas operations during HY2016,
including the natural gas trading business, the Group recorded
natural gas segment profit and revenue of HK$46.4 million (HY2015:
HK$40.8 million) and HK$115.3 million (HY2015: HK$42.2 million),
representing an increase of 13.8% and 173.1% respectively. Total
gas sales volume sold by the Group increased by 200.3%
year-on-year, amounted to 53.9 million cubic meters (HY2015: 18.0
million cubic meters). The growth is attributable to existing
projects that have become operational and the acquisition of new
projects that were immediately operational.
In HY2016, the Group successfully ramped up its natural gas
trading business in China, the revenue of which increased from nil
to HK$68.5 million for HY2016, with the Tai’an Project in Shandong,
the acquisition of which was completed in October 2015,
contributing a revenue of HK$24.7 million for HY2016.
As at 30 June 2016, the Group’s natural gas projects covered 8
provinces, namely Shandong, Hainan, Jiangsu, Guizhou, Liaoning,
Hubei, Sichuan and Anhui Provinces. The Group owned a total of 34
gas refueling stations for vehicles and 2 city gas projects, while
the geographical coverage of its trading and distribution business
included Shandong, Hainan, Anhui and Zhejiang Provinces.
Beijing Gas as the single largest shareholder
During HY2016, the Group successfully introduced Beijing Gas
Group Co. Ltd. (“Beijing Gas”) as our single largest shareholder.
Beijing Gas, a wholly-owned subsidiary of Beijing Enterprises
Holding Limited (“BEHL”), has subscribed shares and convertible
bonds of the Company with a total investment amount of HK$1.3
billion.
Strong cash position and low gearing
The Group’s gearing ratio, which is total borrowings divided by
total assets, was at 18.7% as at 30 June 2016, about the same as it
was at the end of 2015. Excluding convertible bonds, the gearing
ratio was 6.7% as at 30 June 2016, compared to 9.6% as at 31
December 2015. Cash to total liabilities was 1.4 as at 30 June
2016, as compared to 0.2 as at 31 December 2015.
Cash and bank balances of the Group has greatly improved to
HK$1.0 billion as at 30 June 2016. Given the Group’s strong cash
position, below industry average gearing level, and a quality
profile of institutional and industry investors, the Group is
expected to significantly expand its investment in the natural gas
industry and pursue opportunities in a time of industry
consolidation to generate exceptional return for its
shareholders.
Future Development Strategies
The green energy policies promoted under China’s “13th Five-Year
Plan” and “One Belt One Road” initiative have crucial implications
for the natural gas industry. The Group will take full advantages
of the initiatives and expand both our customer base and market
share along the coastal and inland areas accordingly, as well as to
be comprehensively involved in the entire industry value chain.
The Group has adopted its own “One Belt, One Road Expansion
Strategy” to expand along key coastal economic areas such as the
Jing-Jin-Ji Economic Circle and the Yangtze River Delta. The Group
will leverage on the import and distribution of low-cost overseas
LNG, and aims to significantly ramp up its distribution network
along China’s coastal areas to reach a wider potential customer
base in order to further increase its market share and bargaining
power with upstream gas suppliers.
For inland, the Group will develop along the “One Road”, from
Shanxi all the way to the western and north-western provinces of
China. The Group will also select projects with multiple sources of
pipeline gas and/or where there are gas rich upstream gas fields
that provide lower cost of gas.
With the industry and financial resources gained from Beijing
Gas, our current single largest shareholder, we will continue to
explore and identify more synergistic opportunities with them, in
terms of co-investments and cooperation in both project and
regional levels. Blue Sky Power will also act as an overseas
financing platform in the capital markets for Beijing Gas.
Mr. Tommy Cheng, Co-Chairman of Blue Sky Power, stated
that, “Through stringent management, various bench-marking measures
and dedicated development plans, the Group succeeded in achieving
strong growth within a short period of business transformation. We
constantly enhance operational and financial efficiencies in order
to ensure an ongoing, robust and sustainable growth, as we
endeavour to pursue long-term shareholder value.”
Blue Sky Power Holdings
Limited
Since 2014, Blue Sky Power Holdings Limited (HKSE stock code:
6828) has focused on transforming itself into an integrated natural
gas provider, distributor and operator, with an emphasis on the
mid- to downstream side of the natural gas industry value chain.
Our natural gas business encompasses: (i) construction and
operation of compressed natural gas (“CNG”) and liquefied natural
gas (“LNG”) refueling stations for vehicles; (ii) construction of
natural gas pipelines and operation of city gas projects by
providing piped gas; (iii) direct supply of LNG to end-users; and
(iv) trading and distribution of CNG and LNG.
Blue Sky Power has adopted its own “One Belt, One Road Expansion
Strategy” to expand along key coastal economic areas and
north-western provinces that have rich gas source. The Group has
business presence in several provinces in the PRC, including
Shandong, Hainan, Anhui, Hubei, Sichuan and Liaoning.
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version on businesswire.com: http://www.businesswire.com/news/home/20160830006586/en/
Stimulus Investor Relations Ltd.Ms. Hill Ho, +852 3159
2944hill.ho@stimulus-ir.comMs. Jessica Choi, +852 3159
2916jessica.choi@stimulus-ir.com