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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Auhua Clean | LSE:ACE | London | Ordinary Share | JE00B6ZBFF95 | ORD SHS NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMACE
RNS Number : 7864S
Auhua Clean Energy Plc
29 September 2014
AUHUA CLEAN ENERGY PLC
(the "Company", "Auhua" or the "Group")
INTERIM RESULTS
29 September 2014: Auhua Clean Energy plc (AIM: ACE), the AIM quoted environmental technology group based in the Shandong Province of Eastern China, today announces its unaudited results for the six months ended 30 June 2014.
Highlights
-- Revenue increased by 5.3% to RMB 116.2 million: GBP 11.1 million (30 June 2013: RMB 110.3 million: GBP 11.8 million).
-- Strong focus on selling to property developers resulted in a 4.3% increase in number of units sold to 36,500 (30 Jun 2013: 35,000).
-- Gross profits remained stable at RMB 50.9 million: GBP 4.8 million (30 Jun 2013: RMB 51.7 million: GBP 5.5 million) as did gross margins at 44% (30 June 2013: 47%).
-- Net profit before tax fell to RMB 25.6 million: GBP 2.4 million (30 June 2013: RMB 32.5 million: GBP 3.5 million) due to increased expenditure expanding distribution network in China and research and development in Taiwan Ziolar.
-- Net assets of RMB 236.8 million: GBP 22.6 million (30 June 2013: RMB 155.5 million: GBP 16.7 million).
-- Cash balances at 30 June 2014 of RMB 45.5 million: GBP 4.3 million (30 June 2013: RMB 40.3 million: GBP 4.3 million).
-- Earnings per share at half year of RMB 0.21: 2.0 pence (30 June 2013: RMB 0.37: 4.0 pence).
-- Order book as at 30 June 2014 was RMB 80 million: GBP 7.6 million (30 June 2013: RMB 64.8 million: GBP 6.9 million).
-- Post period end:
- Auhua entered into a joint development agreement in August 2014 with Lyles School of Civil Engineering, Purdue University, Indiana, US, to enhance its existing solar thermal technologies by further developing its advanced composite material and proprietary coating technologies. All technologies developed under the agreement will belong exclusively to Auhua.
- Auhua appointed WH Ireland as broker to the Company on 27 August 2014 to assist in broadening its investor base and reach.
Outlook
-- The Group will continue to invest in research and development to remain at the forefront of its field.
-- The thermal coating line at Taiwan Ziolar Technology Co. Ltd ("Taiwan Ziolar") is progressing well with completion expected during Q4 2014. This will provide the Group with enhanced solar thermal technologies and increase the energy efficiency of its products.
-- The Group's revenue has grown by 5.3% to RMB 116.2 million and profit before tax for 2014 is expected to be in line with market expectation.
-- The Group will continue to focus on working with larger property developers to drive sales growth and it expects to increase its production capacity during 2015 following the completion of its current round of fund raising.
* All RMB amounts translated using an exchange rate:
RMB 1 : GBP 0.095270 (as at 30 June 2014)
RMB 1 : GBP 0.107107 (as at 30 June 2013)
David Sumner, non-executive Chairman of Auhua, said, "I am pleased to report a solid set of results for the six months ended 30 June 2014. In spite of a bearish property sector in China, we have continued to grow the business, increase revenues and maintain excellent margins. The successful acquisition of Taiwan Ziolar will enable us to greatly enhance efficiencies of our technologies and our partnership with Purdue University in the US this year will help ensure continued innovation so that we remain leaders in our field. China has the world's largest total capacity for solar heating with 64% market share. The Shandong province, where Auhua operates, is the leader in China's solar thermal initiatives and Auhua's products are the only five star rated split-unit solar water heaters. This gives us significant edge and our strategic focus remains to continue investing in research and development to ensure we remain on the cutting-edge of solar thermal technological innovation."
Media Enquiries
Brunswick Carolina Desmeules auhua@brunswickgroup.com ---------- ------------------- -------------------------
Further information
Hot Features
Premium
Auhua Clean Energy David Sumner Non-executive +971 555 923198
plc Chairman davidjsumner@auhuacleanenergy.com
------------------------- --------------------------- -----------------------------------
Grant Thornton UK Philip Secrett / +44 (0)20 7383 5100
LLP (Nominated Adviser) Maureen Tai / Jamie jamie.r.barklem@uk.gt.com
Barklem
------------------------- --------------------------- -----------------------------------
WH Ireland Tim Feather/ Mark +44 (0)20 7220 1666
(Broker) Leonard tim.feather@wh-ireland.co.uk
mark.leonard@wh-ireland.co.uk
------------------------- --------------------------- -----------------------------------
Notes to Editors:
About Auhua Clean Energy
Auhua Clean Energy is an environmental technology group based in the Shandong Province of Eastern China specialising in the development and application of green energy and energy efficient solar water heating solutions. In particular, the Group is focused on the manufacture and sale of split-unit solar water heating systems.
Auhua Clean Energy operates through its wholly owned subsidiaries Shandong Auhua New Energy Co., Ltd and Weihua Auhua New Energy Co., Ltd., of which Auhua Holdings Pte Ltd is the intermediate holding company.
Information about the solar industry in China
China was again the main demand driver in 2013, adding 46.2 GWth (up 3.3% on 2012) and using 64% of the world's total capacity for solar heating. The Shandong province is the leader in China's solar thermal initiatives, manufacturing one third of China's solar water heaters.
In China, solar water heaters cost considerably less over their lifetime than electric or gas water heaters - a major factor driving the market. Currently still dominated by uni-body systems purchased directly by end consumers, the Shandong government is shifting its focus to promote split-unit water heater systems to property developers. Consequently they have introduced regulations to increase demand by requiring all buildings with more than 12 floors (which traditional unibody systems cannot support) to utilise solar water heater systems. Government subsidies are also available to property developers when they incorporate solar water heater systems into their building plans.
As a result, China's use of solar thermal on urban apartment buildings (including roof and façade-integrated systems) is expanding rapidly. The urban sector represented nearly half of the 2013 market, with growth continually driven by green building policies and solar mandates.
(Source: 2014 Global Status Report)
Chairman's Statement
Business Review
On behalf of the Board of Directors, I am pleased to present the unaudited accounts for the Group for the six month period ended 30 June 2014.
The Group has made positive progress and this has been reflected with revenue rising by 5.3% to RM 116.2 million: GBP 11.1 million (30 June 2013: RMB 110.3 million: GBP 11.8 million).
Gross profits remained stable at RMB 50.9 million: GBP 4.8 million (30 June 2013: RMB 51.7 million: GBP 5.5 million) with gross margins falling slightly to 44% (30 June 2013: 47%). Net profit after tax reduced to RMB 17.4 million: GBP 1.7 million (30 June 2013: RMB 23.6 million: GBP 2.5 million). The Group focused on expanding its distribution network in China and investing additional research and development into Taiwan Ziolar, as well as attracting larger property developers by offering discount pricing. We expect this increased pace of investment to deliver significantly increased capabilities and efficiencies in the longer term.
Taiwan Ziolar
On 2 August 2013, the Group announced the business and share acquisition of Taiwan Ziolar, which was duly completed on 23 May 2014 and which will significantly advance Auhua's solar thermal panel technology. In August 2014, Auhua and Taiwan Ziolar entered into a joint agreement with Lyles School of Civil Engineering, Purdue University in the US to further develop its advanced composite material and proprietary coating technologies.
Taiwan Ziolar is also working with leading technology institutes including Tsinghua University in Taiwan. Two US patents and two China patents have been filed with commercial production borne out of these collaborations expected in Q1 2015. The Group expects further patents to be filed pending the completion of projects with these prestigious institutions.
This acquisition has transformed Auhua from being a predominantly solar powered water heater manufacturer into a much broader solar thermal technology firm. Auhua's products are already the only five star rated split-unit solar water heaters in the Shandong market - this acquisition enables Auhua to be more advanced, cost-effective and efficient than its competitors. Moreover, the acquisition has brought world-class technology into the Group and will propel Auhua's expansion into new opportunities in international markets.
Financial Performance
Gross profits remained stable at RMB 50.9 million: GBP 4.8 million (30 June 2013: RMB 51.7 million: GBP 5.5 million) with gross margins falling slightly to 44% (30 June 2013: 47%) as the Group offered discounted prices to secure projects with larger property developers.
Administrative expenses increased during the period by RMB 4.6 million (GBP 0.4 million) to RMB 13.0 million (GBP 1.2 million). This was due to the Taiwan Ziolar acquisition and the increased expenditure on research, development and innovation and corporate overheads. As a result, profit before tax fell to RMB 25.6 million: GBP 2.4 million (30 June 2013: RMB 32.5 million: GBP 3.5 million)
Our trade receivables increased to RMB 84.5 million: GBP 8.1 million (H1 2013: RMB 66.5 million: GBP 7.1 million), as a result of higher sales but also in part due to the tight domestic debt markets affecting our customers. In our move to the larger property developers, we have provided some of our larger clients with longer credit terms. Some of our customers have also slowed down their property roll-out plan and have requested longer installation periods and commissioning phases, thereby affecting the collection period. As a result, our debtor days increased from 88 days for FY 2013 to 131 days for H1 2014 (93 days for H1 2013) with 63% of the debtors less than 180 days. Overall, trade receivables represent 72% of our H1 2014 turnover (H1 2013: 60%).
90 - 180
Total < 90 days days >180 days
------------------------- ------------- ---------------- ------------------ --------------
H12014 (RMB ' million) 84.5 37.4 16.0 31.1
------------------------- ------------- ---------------- ------------------ --------------
100% 44% 19% 37%
------------------------- ------------- ---------------- ------------------ --------------
FY2013 (RMB ' million) 76.0 42.2 13.2 20.6
------------------------- ------------- ---------------- ------------------ --------------
100% 56% 17% 27%
------------------------- ------------- ---------------- ------------------ --------------
Inventory levels were maintained at RMB 7.0 million: GBP 0.7 million (FY 2013: RMB 7.6 million: GBP 0.8 million) and due to these relatively low levels we do not hedge against raw material price fluctuations. Inventory was kept low despite the increase in activity due to the increase in trade receivables and the Group maintained a prudent cash management policy.
As such, the Group maintained a strong financial position with a balance sheet debt ratio of 14.3%. Cash and cash equivalents held at 30 June 2014 were RMB 45.5 million: GBP 4.3 million compared to RMB 40.3 million: GBP 4.3 million at 30 June 2013.
Currently the Group has a combined capacity of an estimated 90,000 units per annum but has the potential to increase production capacity by a further 60,000 units in the factory in Weihai city.
China Property Market
The China property market continued to slow down in H1 2014 due to rising inventory and a tightening debt market which saw banks continue to rein in lending to the property sector.
Despite this, larger property developers' sales in August 2014 outperformed the market, achieving circa 20% month-on-month (MoM) and 3% year-on-year (YoY) growth, with expectations for continued growth during the remainder of 2014. Year to August 2014 residential investment growth was up 12.4% YoY, exceeding RMB 4 trillion. The floor space of residential buildings started in the year amounted to 1.2 billion square metres, up by 18%. At an average of 100 square metres per apartment, this equates to an estimated 12 million apartments launched during 2013.
We expect the Chinese property market to continue to remain stable and healthy. The government has recently announced an USD 81 billion bank injection and has also targeted numerous measures to support the property market, such as relaxing home purchasing restrictions (HPR) in 37 of 46 cities in China so far since July 2014.
Despite this, we do not foresee the same unregulated growths as experienced in recent years. Instead, we anticipate the property market to experience further consolidation and moderate expansion with the larger property developers taking a bigger market share of real estate launches, hence the Group's commitment to moving towards working with larger property developers.
Outlook
While the overall property climate in China remains bearish, the property industry in our markets continues to grow. Interest in solar thermal water systems has increased following stricter criteria being placed on new project approvals and higher end-user expectations. New property developments are mostly driven by the larger property developers with smaller developers leaving due to credit constraints. Auhua has been concentrating its efforts towards these larger property developers for some time with good success. As a result, margins have reduced slightly.
Securing contracts with larger property developers places us in a highly competitive arena, however, there are fewer peers and a more visible pipeline of projects forecasted. Within this context, we remain bullish on the growth of the Chinese solar industry and our significant part in this.
We are also excited about our distribution agreement with Istidama to expand into the United Arab Emirates (UAE). Discussions are on-going between the Group, Istidama and potential customers and we expect to secure our first order during Q4 2014.
On the technology front, we continue to invest and expect to realise significant improvements to both the existing split-unit solar water heater and the Taiwan Ziolar solar thermal panels. Other pipeline projects such as the composite geo-solar systems and the 100% renewal energy systems are progressing well. We are also excited about the developments with our technology partnerships and we expect to roll-out these products by Q1 2015. We intend to make further significant investment in technology and resources as these are all strategic and vital to the growth and continued success of the Group.
David Sumner
Non-executive Chairman
Auhua Clean Energy Plc
Unaudited Consolidated Statement of Comprehensive Income
For the six month period ended 30 June 2014
Six months Six months
30 30 Year ended
June 2014 June 2013 31 December
Unaudited Unaudited 2013
Audited
Notes RMB'000 RMB'000 RMB'000
Turnover 2 116,172 110,334 250,854
Cost of sales (65,303) (58,649) (141,419)
=============== =============== ==============
Gross pro t 50,869 51,685 109,435
Distribution and selling
expenses (11,712) (10,257) (24,080)
Administrative expenses (12,950) (8,410) (18,188)
=============== =============== ==============
Pro t from operations 26,207 33,018 67,167
Other income - 200 363
Finance costs (636) (765) (1,601)
Unrealised foreign exchange
(loss)/gain (15) 53 (161)
=============== =============== ==============
Pro t before tax 25,556 32,506 65,768
Income tax expense 3 (8,140) (8,912) (17,891)
=============== =============== ==============
Profit for the year, attributable
to equity holders of the
parent 17,416 23,594 47,877
=============== =============== ==============
Other comprehensive income
* Exchange differences on translating foreign
operations (195) 653 505
Total comprehensive income,
net of tax, attributable
to equity holders of the
parent 17,221 24,247 48,382
Earnings per share (RMB)
from continuing operations:
=============== =============== ==============
Basic and diluted 10 0.21 0.37 0.73
=============== =============== ==============
Unaudited Consolidated Statement of Changes in Equity
For the six month period ended 30 June 2014
Foreign
currency Share based
Stated Retained Capital translation payment Total
capital profits reserve reserve reserve equity
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
At 1 January
2013 13,120 115,193 2,100 585 257 131,255
Comprehensive
income
Profit for the
period - 23,594 - - - 23,594
Other
comprehensive
income
Foreign
currency
translation
differences - - - 653 - 653
Total
comprehensive
income - 23,594 - 653 - 24,247
At 30 June
2013 13,120 138,787 2,100 1,238 257 155,502
================== =========================== ======================== ========================== =========================== ========
At 1 January
2014 25,239 163,070 2,100 1,090 257 191,756
Comprehensive
income
Profit for the
period - 17,416 - - - 17,416
Other
comprehensive
income
Foreign
currency
translation
differences - - - (195) - (195)
Total
comprehensive
income - 17,416 - (195) - 17,221
Transaction
with
owners 27,777 - - - - 27,777
At 30 June
2014 53,016 180,486 2,100 895 257 236,754
================== =========================== ======================== ========================== =========================== ========
Consolidated Statement of Financial Position
As at 30 June 2014
As at As at As at
30 June 30 June 31 December
2014 2013 2013
Unaudited Unaudited Audited
Notes RMB'000 RMB'000 RMB'000
Assets
Non-current assets
Property, plant and equipment 4 74,208 61,732 67,145
Prepaid lease payments 15,179 15,501 15,340
Other intangible assets 5 30,444 - -
---------- ---------- -------------
119,831 77,233 82,485
---------- ---------- -------------
Current assets
Inventories, at cost 7,035 7,634 6,321
Trade and other receivables 104,062 81,948 94,414
Cash and cash equivalents 45,483 40,342 48,666
----------
156,580 129,924 149,401
---------- ---------- -------------
Total assets 276,411 207,157 231,886
========== ========== =============
Equity and liabilities
Stated capital 6 53,016 13,120 25,239
Share based payment reserve 7 257 257 257
Statutory surplus reserve 7 2,100 2,100 2,100
Foreign currency translation
reserve 895 1,238 1,090
Retained profits 180,486 138,787 163,070
----------
236,754 155,502 191,756
----------
Current liabilities
Trade and other payables 24,147 22,968 17,775
Short term loans - 12,450 5,450
Provision for taxation 6,510 7,237 7,905
----------
30,657 42,655 31,130
---------- ---------- -------------
Non-current liabilities
Long term loans 9,000 9,000 9,000
---------- ---------- -------------
Total equity and liabilities 276,411 207,157 231,886
========== ========== =============
Consolidated Statement of Cash Flows
For the six month period ended 30 June 2014
Six months Six months Year ended
ended ended 31 December
30 June 2014 30 June 2013 2013
Unaudited Unaudited Audited
RMB'000 RMB'000 RMB'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year before tax 25,556 32,506 65,768
Adjustments for:
Depreciation 1,195 2,063 4,148
Amortisation of a land use right 161 161 322
Loss/(gain) on disposal of property,
plant and equipment - (7) (3)
Allowance for doubtful debts- Trade - - 986
Interest expenses 636 772 1,568
--------------- --------------- -------------
Operating cash flows before working
capital changes 27,548 35,495 72,789
(Increase)/decrease in inventories (714) (4,007) (2,694)
(Increase)/decrease in trade and
other receivables (17,790) (20,547) (36,801)
Increase/(decrease) in trade and
other payables 10,035 (1,662) (2,693)
Cash generated from operations 19,079 9,279 30,600
Interest paid (636) (772) (1,568)
Corporate tax paid (9,536) (8,124) (16,435)
Net cash generated from operating
activities 8,907 383 12,597
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for construction in progress (8,258) - (7,498)
Proceeds from disposal of property,
plant and equipment - 27 23
Purchase of property, plant and
equipment - (4,782) (4,782)
Net cash used in investing activities (8,258) (4,755) (12,257)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from term loan - 16,450 5,500
Repayments of term loans (5,450) (8,500) (4,550)
Proceeds from stated capital - - 12,119
Listing expenses incurred - - (5,454)
(Repayment)/proceed of loans from
directors/related party 1,813 (3,944) 151
Net cash from financing activities (3,637) 4,006 7,766
--------------- --------------- -------------
NET (DECREASE)/INCREASE IN CASH
AND CASH EQUIVALENTS (2,988) (366) 8,106
Exchange gains/(loss) on cash and
cash equivalents (195) 654 505
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 48,666 40,054 40,054
--------------- --------------- -------------
CASH AND CASH EQUIVALENTS AT END
OF PERIOD 45,483 40,342 48,666
--------------- --------------- -------------
Basis of Presentation and Summary of Significant Accounting Policies
1. General information and principal activities
The financial information for the six months ended 30 June 2014 and 30 June 2013 set out in this interim financial information is unaudited and does not constitute statutory financial statements. The financial information for the year ended 31 December 2013 set out in this interim financial information does not comprise the Group's statutory financial statements but has been extracted from those financial statements.
The directors approved the interim financial information for the six months ended 30 June 2014 on 26 September 2014.
Copies of this interim financial information will be available on the Company's website:
www.auhuacleanenergy.com
The interim financial information has been prepared in accordance with the principles of IFRS as adopted by the European Union. The standards have been applied consistently (except as otherwise stated).
The statutory financial statements for the year ended 31 December 2013, which have been filed at Jersey Registrar of Companies, were prepared under IFRS and IFRIC interpretations as adopted by the European Union.
The accounting policies adopted by the Group in this interim financial information is consistent with those set out in the Annual Report for the year ended 31 December 2013, have been consistently applied to all periods presented and are consistent with those accounting policies the Group expects to be using in the Annual Report for the year ended 31 December 2014.
2. Operating segments
For the purpose of IFRS 8, the chief operating decision-maker ("CODM"), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors. Auhua is an environmental technology group specialising in the development and application of green energy and energy efficient solar water heating solutions. The Group's revenue and profit before taxation were all derived from its principal activity. Revenues from all periods were derived from external customers based in China. The operations are based in China and its assets and liabilities related to this single business segment. The CODM therefore considers that the business of the Group comprises a single activity and that therefore only one reportable segment exists
3. Taxation
A reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rates is as follows:-
Six months ended Six months Year ended
ended
30 June 2014 30 June 2013 31 Dec 2013
Unaudited Unaudited Audited
RMB'000 RMB'000 RMB'000
Accounting profit
before tax 25,556 32,506 65,768
Tax at the domestic
rates applicable
to profits in the
countries where the
Group operates (25%) 6,389 8,127 16,442
Adjustments:-
- Under provision
in respect of prior
period - 159 147
- Non-deductible
expenses 1,751 603 1,033
- Others - 23 269
Income tax expenses
recognised in the
income statement 8,140 8,912 17,891
No deferred tax assets or liabilities are recognised, principally as result of the taxable profit for the Group equating to accounting profit.
4. Property, plant and equipment
Machinery Motor Construction
Buildings & equipment vehicles in progress Total
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
------------ -------------- --------------- ------------------------- ----------
Cost
At 1 January 2013 28,922 31,152 34 10,816 70,924
Disposals - (23) - - (23)
Additions - 4,782 - - 4,782
-------------- --------------- ------------------------- ----------
At 30 June 2013 28,922 35,911 34 10,816 75,683
============ ============== =============== ========================= ==========
Accumulated Depreciation
At 1 January 2013 1,309 10,569 13 - 11,891
Charge for the
period 470 1,590 3 - 2,063
Disposals - (3) - - (3)
At 30 June 2013 1,779 12,156 16 - 13,951
============ ============== =============== ========================= ==========
Cost
At 1 January 2013 28,922 31,152 34 10,816 70,924
Disposals - (23) - - (23)
Additions - 4,782 - 7,498 12,280
------------ -------------- --------------- ------------------------- ----------
At 31 December
2013 28,922 35,911 34 18,314 83,181
============ ============== =============== ========================= ==========
Accumulated Depreciation
At 1 January 2013 1,309 10,569 13 - 11,891
Charge for the
period 940 3,202 6 - 4,148
Disposals - (3) - - (3)
At 31 December
2013 2,249 13,768 19 - 16,036
============= ============== =============== ========================= ==========
Cost
At 1 January 2014 28,922 35,911 34 18,314 83,181
Disposals - - - - -
Additions - - - 8,258 8,258
------------- -------------- --------------- ------------------------- ----------
At 30 June 2014 28,922 35,911 34 26,572 91,439
============= ============== =============== ========================= ==========
Accumulated Depreciation
At 1 January 2014 2,249 13,768 19 - 16,036
Charge for the
period 1,174 21 - - 1,195
Disposals - - - - -
------------- -------------- --------------- -------------------------
At 30 June 2014 3,423 13,789 19 - 17,231
============= ============== =============== ========================= ==========
Net Book Value
At 30 June 2013 27,143 23,755 18 10,816 61,732
============= ============== =============== ========================= ==========
At 31 December
2013 26,673 22,143 15 18,314 67,145
============= ============== =============== ========================= ==========
At 30 June 2014 25,499 22,122 15 26,572 74,208
============= ============== =============== ========================= ==========
5. Other intangible assets
31 December
30 June 2014 30 June 2013 2013
RMB'000 RMB'000 RMB'000
On acquisition 30,444 - -
Goodwill on acquisition 30,444 - -
=============== ============= ============
The Company completed the acquisition of the entire stated capital of Ziolar Pte Ltd ("Ziolar") and Taiwan Ziolar Technology Co Ltd ("Taiwan Ziolar") on 23 May 2014 for a total consideration of USD 4.5 million via the issue of shares in the Company.
The value of the identifiable net assets of the company has only been determined on a provisional basis as the valuation exercise of certain assets has not been finalised.
6. Stated capital
Issued, called up and fully paid No. of shares RMB'000
As at 1 January 2014 82,527,845 25,239
Ordinary shares in relation to
the acquisition of Ziolar Pte Ltd
("Ziolar") and Taiwan Ziolar Technology
Co Ltd ("Taiwan Ziolar") on 23
May 2014 6,944,400 27,777
As at 30 June 2014 89,472,245 53,016
7. Reserves
7.1 Capital reserve
According to the relevant PRC regulations and the Articles of Association, a company is required to transfer 10% of its profit after income tax to the statutory surplus reserve until the reserve balance reaches 50% of its registered capital. The transfer to this reserve must be made before the distribution of dividends to equity owners. Statutory surplus reserve can be used to make good previous years' losses, if any, and may be converted into paid-in capital in proportion to the existing interests of equity owners, provided that the balance after such conversion is not less than 25% of the registered capital.
7.2 Share based payment reserve
During 2012 the Company granted Northland Capital Partners Limited an option to subscribe for 635,650 ordinary shares at 40 pence at any time during the period of three years following admission. These were granted in respect of the services they provided during the listing of the Company on the Alternative Investment Market. These options have been valued at the fair value of the services received. At the period ending 30 June 2014, these options remain unexercised.
31 December
30 June 2014 30 June 2013 2013
RMB'000 RMB'000 RMB'000
257 257 257
257 257 257
Movement in the year:
The following table illustrates the number and weighted average exercise prices ("WAEP") of, and movements in, share options during the year:
WAEP
Number (pence)
Outstanding as at
1 January 2014 635,650 0.4
Granted during the - -
year
---------------------- ---------- ----------
Options outstanding
as at 30 June 2014 635,650 0.4
---------------------- ---------- ----------
Exercisable as at - -
30 June 2014
---------------------- ---------- ----------
8. Related party transactions
a) Related parties are entities with common direct or indirect shareholders and/or previous and/or current directors. Parties are considered to be related if one party has the ability to control the other party in making financial and operating decisions.
Certain of Group's transactions and arrangements are with related parties and the effect of these on the basis determined between the parties is reflected in the financial statements. The balances are unsecured, interest-free and repayable on demand unless otherwise stated.
30 June 2014 30 June 2013 31 December 2013
RMB'000 RMB'000 RMB'000
Director- Chen Anxiang
Shareholder loan 50 50 50
Director- Tham Wai
Mun Raphael
Shareholder loan 1,820 2,171 697
Director- David Sumner
Shareholder loan 506 - -
b) Key management personnel compensation is analysed as follows:
31 December
30 June 2014 30 June 2013 2013
RMB'000 RMB'000 RMB'000
Remuneration 926 832 1,797
Other benefits 13 13 37
939 845 1,834
============= ============= =============
Key management personnel are the Directors.
c) Payment to Augrains Capital Pte Ltd
31 December
30 June 2014 30 June 2013 2013
RMB'000 RMB'000 RMB'000
Payment to Augrains
Capital Pte Ltd for
advisory work - - 134
============= ============= ============
Amount due to Augrains
Capital Pte Ltd 1,522 1,246 1,337
============= ============= ============
Augrains Capital Pte Ltd is controlled by Tham Wai Mun Raphael, a director of the Group as at the balance sheet date.
9. Commitments
As at 30 June 2014, the capital commitment for the Group amounted to RMB 36.1 million. This related to the purchasing of new equipment and the construction of a new office building at Weihai Auhua New Energy Co., Ltd. The Group's capital commitments as at 30 June 2013 were RMB 27.5 million.
10. Earnings per share
The calculation of earnings per share is based on the following earnings and number of shares.
Six months Six months
ended ended Year ended
30 June 2014 30 June 2013 31 December 2013
Unaudited Unaudited Audited
RMB'000 RMB'000 RMB'000
Profit for the period from
continuing operations 17,416 23,594 47,877
Weighted average number
of ordinary shares - basic 84,024,152 63,564,945 65,417,552
Weighted average number of
ordinary shares - diluted 84,659,802 64,200,595 66,053,202
Earnings per share (RMB)
Basic and diluted 0.21 0.37 0.73
-Ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEUFIMFLSEIU
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