LongiTech Smart Energy Announces 2017 Interim Report: Revenue from Smart Energy and Solar Energy Businesses Surges to RMB 178 million
Continue to Promote Smart Energy Cloud Platform
Profits from Distributed Solar Power Plants Expected to Grow
[25 August 2017, Hong Kong] LongiTech Smart Energy Holding Limited ("LongiTech Smart Energy" or the "Company", and together with its subsidiaries, the "Group", stock code: 1281) is pleased to announce the unaudited interim results of the Group for the six months ended 30 June 2017 (the ''Period'').
During the Period, the Group's revenue was RMB286,135,000 (1H 2016: RMB299,954,000), and the profit attributable to the owners of the Company was RMB45,765,000 (1H 2016: RMB42,174,000), representing respectively a decrease of 4.6% and an increase of 8.5% as compared to the same period last year. During the Period, the smart energy and solar energy businesses generated a revenue of approximately RMB178,148,000 (1H 2016: RMB11,824,000) for the Group, which recorded a significant increase of 1,406.7%, compared to the same period of last year. Profit attributable to owners of the Company was approximately RMB24,351,000 (1H 2016: RMB27,763,000), the profit for the same period of last year included gain on bargain purchase amounting to approximately RMB23,979,000 (1H 2017: RMB1,443,000); after removing the impact of such factor, the profit increased by 505.4% as compared to the same period of last year. The smart energy and solar energy businesses contributed 62.3% of the Group's revenue and 53.2% of the Group's profit, respectively, and have become the Group's core business, demonstrating the successful transformation of core business.
The Group has set the goal of becoming the most sophisticated domestic operators of smart energy cloud platforms. by deepening development, upgrade, and application of the Cloud Platform system, further expanding the number of corporate consumers of energy consumption that enter into contracts with the Group with access to the Group's online services, integrating into big data. During the Period, the Group has introduced and upgraded the 2017 version of its Smart Energy Cloud Platform and built a standardised system for smart operation and maintenance in the first half of the year. Meanwhile, the Group consolidated external resources, strengthened cooperation with offline energy operation and maintenance service providers, laying a solid foundation for the subsequent large-scale promotion of smart energy business by the Group.
In June 2017, the Group acquired 100% equity of Gao Bei Dian City Guangshuo New Energy Co., Ltd. (''Guangshuo'') at an aggregated consideration of RMB129,978,000. Together with a total of 7 distributed solar power stations held by Guangshuo in China, all of which have been connected to the power grid and generating power, the Group holds an accrued total of 10 solar power stations, with an aggregate installed capacity of approximately 54MW. All of these power stations have been connected to the power grid and have been generating power stably.
On 29 June 2017, the Group disposed of its manufacturing, processing and sales of doors and windows and provision of construction and engineering services business, the transaction is expected to be completed during the second half of the year and is expected that the Group will incur a cash income of HK$56,672,000. Disposal of the above non-core businesses allows the Group to focus resources on the development of smart energy and solar energy businesses.
Mr. Wei Qiang, Chairman and Chief Executive Officer of LongiTech Smart Energy Holding Limited commented, "In light of the industry's development trend and the strong support of national policies, the Group strives to develop the ''Internet +'' smart energy business, in the second half of 2017, the Group will, on the basis of existing work products, continue the forging and upgrade of online and offline businesses, to support the comprehensive development of the Group's different businesses in terms of smart energy and solar energy. In respect of the online business, we will continue to optimize, improve, and upgrade the hardware and software of the Cloud Platform. In respect of the offline business, apart from continuing the promotion and construction of data sub-systems for major enterprises in Hebei Province, the Group will focus on contracted customers of the sub-systems, and promote businesses in respect of smart operation, electricity sales, energy efficiency analysis, supply of multi-energy complementation, etc. Looking ahead the future, opportunities and challenges coexist, while developing rapidly, the Group will also focus on internal management and risk control, so as to realize dynamic balance, help corporates save energy and reduce emission, aid the green development of the nation, and create sustainable returns for our shareholders."
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About LongiTech Smart Energy Holding Limited
LongiTech Smart Energy Holding Limited ("LongiTech Smart Energy", stock code: 1281) is a leading green city smart energy solutions provider in China. The Company focuses on user-side energy services, provideng comprehensive smart energy management services through the Smart Energy Cloud Platform, including operation and maintenance while energy is in use, enhanced analysis of energy efficiency, distributed supply of multi-energy complementation (including photovoltaic, power storage, etc.), power trade and other value-added services, realizing comprehensive smart management of user-side energy network, help users realize real-time energy adjustment and balance.
28/08/2017 Dissemination of a Marketing Press Release, transmitted by EQS Group.
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