We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| China New Energy Limited | LSE:CNEL | London | Ordinary Share | JE00B3RWLF12 | ORD 0.025P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 7.50 | 7.00 | 15.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMCNEL
RNS Number : 0971R
China New Energy Ltd
19 September 2017
19 September 2017
China New Energy Limited
("China New Energy" "CNE" or "the Group")
Half-yearly report for the six months to 30 June 2017
China New Energy Limited (AIM: CNEL), the engineering and technology solutions provider to the bioenergy sector, announces its unaudited half-yearly results for the six months ended 30 June 2017.
Financial Highlights
-- Revenue of RMB 68.76m (GBP7.73m) (H1 2016: RMB 45.4m (GBP5.11m)), which represents a 51% increase over the same period last year
-- Gross profit of RMB 16.6m (GBP1.87m) (H1 2016: RMB 16.2m (GBP1.82m)) -- Net Profit of RMB 10.6m (GBP1.19m) (H1 2016: RMB 11.3m (GBP1.27m)) -- Earnings per share of RMB 0.023 (0.26p) (H1 2016 RMB 0.029 (0.33p))
RMB8.89: GBP GBP1 used as an indicative exchange rate.
Yu Weijun, Chairman, commented:
"I am very pleased to report that, based on contracts from China, the Company has had its third successive profitable half year and is demonstrating a return to sustained profitability. The bioenergy industry still faces many headwinds due to the low-oil price, however, regulatory changes are helping drive our domestic business. The company has a current order book and work in progress of RMB 255 million (c. GBP28.7m) to be fulfilled in 2017/18, and I am optimistic that the business outlook is for sustained revenue growth.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
Hot Features
Premium
China New Energy www.chinanewenergy.co.uk
Limited
Richard Bennett Tel: +44 (0)20 7148 3148
or rbennett@zkty.com.cn
Nick Brooks Tel: +44 (0) 7920 060218
or nbrooks@zkty.com.cn
Derek Cen Tel: +86 (0)20 8705 8986
or cendl@zkty.com.cn
Cairn Financial Advisers Tel: +44 20 7213 0880
LLP (NOMAD)
Jo Turner / Sandy
Jamieson
Daniel Stewart and Tel: +44 20 7776 6550
Co (Broker)
David Lawman
Chairman's Statement
On behalf of the Board, I am very pleased to present the unaudited half-yearly results for the six months period ended 30 June 2017.
Financial Review
Revenue for the first six months of the year has grown to RMB 68.76m (H1 2016: RMB 45.4m), an increase of approximately 51%. A significant driver of the increase in revenue was the change of rules pertaining to the types of feedstock that may be used to produce ethanol in China, which stimulated new orders from existing clients including Jilin Boda and COFCO. The Company's order book is currently RMB 255m of which RMB 41m is carried forward from 2016 and the remainder is new orders in H1 2017 that are expected to be fulfilled in 2017 and 2018.
The Group's gross profit also increased in the period to RMB 16.6m (H1 2016: RMB 16.2m) which resulted in the Group returning a net profit in the period of RMB 10.6m (H1 2016: RMB 11.3m). The gross margin has decreased to 24.1% from 35.8%, which the board believes is temporary and specifically relates to competitive bidding on the COFCO contract.
Selling and distribution expenses increased by 30% to RMB 3.1m (H1 2016: RMB 2.39m) while administrative expenses decreased by 47% to RMB 2.5m (H1 2016: RMB 4.76m). The Group's other income was RMB 0.7m (H1 2016: RMB 2.89m). The other expenses were RMB 0.68m (H1 2016: RMB 0.55m). Finance expense increased to RMB 0.4m (H1 2016: RMB 0.14m).
Operational Review
CNE is a market leader in China at designing and building biorefineries that convert agricultural feedstock such as corn, cassava and sugarcane into ethanol. We have completed more than 180 projects in China and around the world. The Group principally provides EPC (Equipment, Procurement and Construction) services and VAS (Value Added Service) to ethanol and biobutanol producers. The EPC team primarily designs and builds commercial-scale biorefineries that convert feedstock into ethanol for both the biofuel and edible alcohol markets, whilst the VAS team provide services and technology to optimise the ethanol production at existing biorefineries.
As a result of recent policy changes that allows approximately 300 million tonnes of accumulated agricultural feedstocks to be converted to ethanol and animal feed, China currently represents the largest potential market for the Group. This provides an immediate opportunity for alcohol and fuel ethanol producers to increase their production capacity and expand their production. As a leading provider of bioenergy technology in China, the Group expects to bid for more upcoming contracts with existing clients and domestic ethanol producers including COFCO Group, Jilin Boda Biochemical Company, Inner Mongolia Liniu Biochemical Group.
To meet this market growth, during the first half of the year the Group recruited more than 20 technicians and engineers to fulfil the current and anticipated future orders.
The Group's strategy remains to diversify into international markets. However, progress is slower than anticipated including contracts already won and most, notably, the Group is still awaiting a project start date from the Supercare Group in Ghana. Elsewhere in sub-Sharan Africa, Sunbird Bioenergy Africa ("Sunbird") continues to make progress with their projects and reaffirmed their commitment to developing an ethanol project in Zambia at the Luapula Investment Conference in July. CNE remains optimistic about tendering for the ethanol distillery and associated plant in due course, and will update the market as contractual developments take place.
Corporate Development.
With the return to profitability, the Directors are reviewing a number of initiatives to support the continued growth of the Group and the value created is reflected in the share price. These include:
-- Implementing a share option scheme to attract, retain and motivate new and current employees
-- Strategic acquisitions
-- Requesting shareholder permission by way of an EGM to use free cash for a share buy-back program
Outlook
After the downturn in the bioenergy market in the past few years, we are beginning to see an increased demand for our products and services. This is attributed to the economic recovery in the industry and the change of rules pertaining to ethanol feedstock usage in China.
China remains an important participant in the global energy market and is very focussed on delivering renewable energy to both reduce emissions and increase energy security and reliance on importing fossil fuels. We note the country recently signed the Paris Climate Change Agreement, and also announced its intention to rollout a national ethanol-fuel blending (E10) program. Ethanol is widely considered to be one of the key alternatives to fossil fuel and a pathway to lower emissions.
The company intends to continue its research and development activities in partnership with institutions including Guangzhou Institute of Energy Conversion ("GIEC"), part of the Chinese Academy of Sciences, to commercialise advanced alternative and renewable energy technologies for the bioenergy market.
Internationally, we continue to promote our products and services through our partners. We continue to see an interest in our existing 1(st) generation bioenergy technology in emerging markets such as Africa and South East Asia. We also see an increased interest in 2(nd) generation bioenergy technology in developed markets which is also being aided by changes in the regulatory environment to support biofuel production.
The Board are very pleased with our current progress and profitability. The board is also confident about the increased interest in the bioenergy sector and our pipeline of sales opportunities. However, we continue to maintain a cautious business approach due to the macro-economic climate and continued low-oil prices.
Yu Weijun
Chairman
19 September 2017
Consolidated Statement of Financial Position
Unaudited Unaudited Audited
Six months Six months Year
to 30 to 30 to 31
June June December
2017 2016 2016
Note RMB'000 RMB'000 RMB'000
Non-current assets
Property, plant and
equipment 3,905 4,921 4,774
Intangible assets 14,858 12,107 14,541
Trade receivables
Investments in subsidiaries
18,763 17,028 19,315
----------- ----------- ----------
Current assets
Inventories 8,527 7,576 3,438
Due from customers
for construction contracts 52,703 29,796 35,713
Trade and other receivables 154,201 97,524 73,217
Notes receivables
Cash and cash equivalents 12,917 19,918 13,854
228,348 154,814 126,222
----------- ----------- ----------
Current liabilities
Trade and other payables 128,923 104,143 91,976
Due to customers for
construction contracts 88,107 46,777 30,215
Provision for liabilities 10,000
Income tax payable 8,797 8,783 8,776
Short-term borrowing
225,827 159,703 140,967
----------- ----------- ----------
Net current assets/(liabilities) 2,521 (4,922) (14,745)
Non-current liabilities
Deferred tax liabilities
Net assets 21,284 12,106 4,570
----------- ----------- ----------
Equity
Share Capital 3 1,541 1,445 1,441
Share premium 68,805 63,208 62,905
Combination reserve (33,156) (33,156) (33,156)
Warrants reserve 1,673
Statutory reserve 12,328 12,328 12,328
Convertible bonds
reserve
Own shares
Accumulated earnings/(losses) (52,458) (57,028) (63,039)
Foreign currency translation
reserve 24,224 23,636 24,091
21,284 12,106 4,570
=========== =========== ==========
Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
Six months to 30 June 2017 Six months to 30 June 2016 Year to 31 December 2016
Note RMB'000 RMB'000 RMB'000
Revenue 68,760 45,369 78,584
Cost of sales (52,191) (29,123) 51,586
Gross profit/(loss) 16,569 16,246 26,998
Other operating income 732 2,888 3,204
Selling and distribution
expenses (3,100) (2,391) (4,868)
Administrative expenses (2,539) (4,756) (7,576)
Other operating expenses (676) (554) (9,696)
Finance expenses (403) (138) (1,494)
Bad debt provision(net) (2) (2,715)
Impairment loss (242)
Other gains and losses
-------------------------- -------------------------- ------------------------
(Loss)/ Profit before
income tax 10,581 11,295 3,611
Income tax expense
Deferred tax expenses
-------------------------- -------------------------- ------------------------
(Loss)/Profit for the
financial period 10,581 11,295 3,611
-------------------------- -------------------------- ------------------------
Other comprehensive
income:
Exchange difference 133 189 405
Total comprehensive income
for the financial year 10,714 11,484 4,106
-------------------------- -------------------------- ------------------------
Total comprehensive income
attributable to equity
holder 10,714 11,484 4,106
========================== ========================== ========================
Earnings/(loss) per share
(RMB):
Basic 6 0.023 0.029 0.009
Diluted 6 0.023 0.029 0.009
========================== ========================== ========================
Consolidated Statement of Cash flows
Unaudited Unaudited Audited
Six months Six months Year
to 30 to 30 to 31
June June December
2017 2016 2016
RMB'000 RMB'000 RMB'000
Operating activities
Profit/(loss)
before income
tax 10,581 11,295 3,611
Adjustments
for:
Depreciation
and amortisation (1,272) (349) 2,565
Bad debt provision(net)
Loss/(gain)
on disposal
of property,
plant and equipment (26) 1,548
Loss/(gain)
on disposal
of financial
assets (2,359)
Interest income (27) (27) (55)
Finance expense 535 562 537
Impairment loss (124)
Exchange difference (133) (50) 405
------------ ------------ ----------
Operating cash
flows before
movements in
working capital 12,521 11,405 6,128
Decrease/(increase)
in inventories (5,089) 2,362 6,258
Construction
work-in-progress (16,990) 19,211 (5,473)
Trade and other
receivables (80,984) (54,372) (23,745)
Notes receivables 444
Trade and other
payables 26,947 13,986 8,466
Decrease/(increase)
in due to
customers for
construction 57,892 2,649
Cash generated
from/(used in)
operations (5,703) (6,964) 5,717
Income taxes
paid 21 7
Dividend received
------------ ------------ ----------
Net cash from/(used
in) operating
activities (5,682) (6,957) 5,717
Investing activities
Proceeds from disposal
of property, plant
and equipment
Purchase of property,
plant and equipment (139) 1,694 (1,965)
Expenditure
on intangible
assets (581) (310) (3,701)
(720) 1,384 (5,666)
Net cash from/(used
in) investing activities
------------ ------------ ----------
Financing activities
Short-term borrowing
Repayment of borrowings
Proceeds from issuance
of shares 6,000 6,600 6,293
Redemption of convertible -
bonds
Interest received 27 55
Interest paid (535) (562) (537)
Net cash from/(used
in) financing activities 5,465 6,065 (5,811)
------------ ------------ ----------
Net increase/(decrease)
in cash and cash
equivalents (937) 492 5,572
Cash and bank balances
at beginning of
period 13,854 19,426 19,426
Effect of foreign
exchange rate changes
in cash and bank
balances
Cash and cash equivalents
at end of period 12,917 19,918 13,854
============ ============ ==========
Consolidated Statement of Changes in Equity
Foreign
Accumulated currency
Share Share Statutory Warrants Own earnings/ translation
capital premium Combination reserve reserve shares (losses) reserve Total
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
Balance
at 31 December
2015 1,357 56,696 (33,156) 12,328 1,673 (68,323) 23,686 (5,739)
-------------------- --------------------- ------------ ---------- --------- ------- ------------ ------------ --------
Profit for
the period - - - - - - 3,611 3,611
Exchange
difference
arising
on the
translation - - - - - - 405 405
-------------------- --------------------- ------------ ---------- --------- ------- ------------ ------------ --------
Transfer
warrant
reserve (1,673) 1,673
Total
comprehensive
income for
the period - - - - (1,673) - 5,284 405 4,016
Issue of
shares,
net of share
issue costs 84 6,209 6,293
Shares granted
to
Cancellation
of EBT
Balance
at Dec.
2016 1,441 62,905 -33,156 12,328 (63,039) 24,091 4,570
-------------------- --------------------- ------------ ---------- --------- ------- ------------ ------------ --------
Profit for
the period - - - - - - 10,581 10,581
Exchange
difference
arising
on the
translation - - - - - - 133 133
-------------------- --------------------- ------------ ---------- --------- ------- ------------ ------------ --------
Total
comprehensive
income for
the period - - - - - - 10,581 133 10,714
Issue of
warrants - -
Issue of
shares,
net of share
issue costs 100 5,900 - 6,000
Transfer
to statutory
reserve - -
Balance
at 30 June
2017 1,445 63,208 -33,156 12,328 1,673 (57,028) 23,636 21,284
-------------------- --------------------- ------------ ---------- --------- ------- ------------ ------------ --------
Notes to the Interim Financial Information - Period ended 30 June 2017
1. General information
The Group (or "CNE") with registration number 93306 was incorporated in Jersey on 2 May 2006 as an investment holding Group. The Group is domiciled in Jersey with its registered office at Queensway House, Hilgrove Street, St Helier, Jersey JE1 1ES.
The principal activities of its main subsidiary, Guangdong Zhongke Tianyuan New Energy Science and Technology Co Ltd. ("ZKTY") are engaged in turnkey technology solutions to manufacturers of ethanol, edible alcohol and acetic acid from a range of bio-resources including corn, sugarcane, cassava and other bio-resources.
The principal place of business is located at No 4, Nengyuan Road, Wushan, Tianhe District, Guangzhou, People's Republic of China ("PRC").
2. Basis of preparation
The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. The principal accounting policies used in preparing the interim results are those the Group expects to apply in its financial statements for the year ending 31 December 2017 and are unchanged from those disclosed in the Group's Report and Financial Statements for the year ended 31 December 2016, except for the following additional accounting policies:
Basis of consolidation
The Group includes the assets and liabilities of the Employee Benefit Trust ("EBT") within its Statement of Financial Position. In the event of the winding up of the Group, neither the shareholders nor the creditors would be entitled to the assets of the EBT.
Long-term incentive scheme charge
The fair value of the employee services received in exchange for the grant of shares or share options is recognised as an expense.
The total amount to be expensed over the performance period, from grant date to vesting date, is determined by reference to the fair value of the shares determined at the date the employee is deemed to be fully aware of their potential entitlement and all conditions of vesting.
Own shares
Company shares held by the EBT are deducted from the shareholders' funds and classified as Own Shares until such time as they vest unconditionally to participating employees and their families.
This interim financial information has not been reviewed or audited by the Group's auditors. The comparatives for the period ended 31 December 2016 are not the Group's full statutory accounts for that period but have been extracted from those financial statements. A copy of the statutory financial statements for that period, which were prepared under IFRS, has been delivered to the Companies Registry. The auditors' report on those accounts was unqualified.
Whilst the financial information included in this Interim Financial information has been prepared in accordance with the recognition and measurement criteria of IFRS, it does not include sufficient information to comply with IFRS.
This interim report was approved by the Board of directors on 19 September 2017.
3. Ordinary shares
Number
of Shares Share Capital Share premium
GBP RMB GBP RMB
'000 '000 '000 '000
As at 30 December
2016 444,447,541 1,445 63,208
Placing on 22
March 2017 46,808,809 12 100 690 5,900
As at 30 June
2017 491,256,350 1,541 68,805
The substantial shareholders have not changed from 30 June 2017 we outlined in the annual report.The Group has one class of ordinary shares which carry no right to fixed income.
4. Property, plant and equipment
Plant and machinery Motor Vehicles Office equipment Leasehold Total
improvements
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
As at 30 June 2017
Cost
At 1 January 2017 3,227 8,391 834 6,247 18,699
Additions 131 - 8 - 138
Disposals - -
At 30 June 2017 3,358 8,391 842 6,247 18,837
Accumulated
depreciation
At 1 January 2017 2,803 6,901 604 3,617 13,925
Charged for the year 143 689 28 147 1,007
Disposals - - -
At 30 June 2017 2,946 7,590 632 3,764 14,932
Carrying amount
At 1 January 2017 424 1,490 230 2,630 4,774
==================== =============== ================= ====================== ========
At 30 June 2017 412 801 209 2,483 3,905
==================== =============== ================= ====================== ========
5. Intangible assets
Computer Patents Technology Knowhow Land use management Development cost Total
software
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
Cost
Balance
at beginning
of year 60 6,936 3,613 5,865 16,474
Additions - 581 - - 581
Transfer
Balance
at end
of year 60 7,517 - 3,613 5,865 17,055
----------------------- ------------------------- ------------------- ---------------------- --------------------- ----------------------
Accumulated
amortisation
Balance
at beginning
of year 57 1,034 842 - 1,933
Amortisation
for the
year (232) - (32) (264)
Balance
at end
of year 57 1,266 - 874 2,197
----------------------- ------------------------- ------------------- ---------------------- --------------------- ----------------------
Carrying
amount
As at
31 Dec
2016 3 5,902 - 2,771 5,865 14,541
======================= ========================= =================== ====================== ===================== ======================
As at
30 June
2017 3 6,251 - 2,739 5,865 14,858
======================= ========================= =================== ====================== ===================== ======================
6. Earnings per share
Earnings per share ("EPS") on a basic and diluted basis are as follows:
Earnings per share ("EPS") on a basic and diluted basis are as follows:
Earnings Weighted Earning per Earnings Weighted Earning per
average number shares average number shares
of shares of shares
Six months Six months Six months Six months Six months Six months
to 30 June to 30 June to 30 June to 30 June to 30 June to 30 June
2017 2017 2017 2016 2016 2016
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
Earnings/(loss)per
share-basic 10,714 470,348,415 0.023 11,484 401,723,797 0.029
Potentially - - - - -
dilutive shares
----------------
Earnings/(loss)per
share-diluted 10,714 470,348,415 0.023 11,484 401,723,797 0.029
=========== ================ ================ =========== ================ ================
7. Directors' interests
The following Directors have held office during the period and their interests as at 30 June 2017, all of which are beneficial unless otherwise stated, whether direct or indirect, of the Directors and their families in the issued share capital of the company and options over Ordinary Shares which had been granted, are as follows:
Director Number of Ordinary Percentage of
Shares Ordinary Shares
Yu Weijun 90,932,440 18.51%
Tang Zhaoxing 48,000,000 9.77%
Nicholas Brooks 105,000 0.02%
Richard Bennett - -
8. Business Segment
A business segment is a Group of assets and operations engaged in providing products or services that are subject to risks and returns that are different from those of other business segments. A geographical segment is engaged in providing products or services within a particular economic environment that is subject to risks and returns that are different from those of segments operating in other economic environments.
The Group's revenue breakdown by geographical location is determined based on its customers' country of incorporation. The Group's cost of sales and operating expenses are aggregated on a cumulative basis and are not attributable to specific geographical regions. Therefore, a breakdown of gross profit for the financial years by geographical regions is not shown.
Geographical Segment
Revenue 6 months ended
--------------------
30 June 30 June
2017 2016
RMB'000 RMB'000
PRC 66,986 37,167
Thailand 93
Canada 1,681 8,202
68,760 45,369
The CNE Group's assets, liabilities and capital expenditure are almost entirely attributable to a single business segment of provision of technology and engineering services to ethanol, ethanol downstream product and biobutanol producers. Therefore, the CNE Group does not have separately reportable business segments under IFRS 8 Segmental Reporting.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DBGDCCDBBGRI
(END) Dow Jones Newswires
September 19, 2017 02:01 ET (06:01 GMT)
1 Year China New Energy Chart |
1 Month China New Energy Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
