2013-08-19 08:05:02 -
China Suntien Green Energy Corporation Limited ("China Suntien" or "the Company", Stock Code: 956.HK) is pleased to announce the unaudited interim results of the Company and its subsidiaries ("the Group") for the six-month period ended 30 June 2013 ("the Period").
-- Revenue amounted to RMB2.206 billion, representing an increase of 19.7% compared with the corresponding period of 2012:
Revenue from natural gas business surged 15.5% compared with the corresponding period of 2012
Revenue from wind power business surged 29.0% compared with the corresponding period of 2012
-- Profit before tax of approximately RMB555 million
-- Net profit attributable to the owners of the Company of RMB330 million
-- The earnings per share of approximately RMB0.10
For the six months ended
30 June 2013, the Group recorded a consolidated operating revenue of RMB2.206 billion, up19.7% compared with the corresponding period of 2012; profit before tax of approximately RMB555 million; net profit attributable to the owners of the Company of RMB330 million and earnings per share of approximately RMB0.10. As at 30 June 2013, net assets per share of the Company (excluding the interests held by non-controlling interest holders) amounted to RMB1.8.
Further expansion of city natural gas and substantial progress in natural gas resource co-operation projects
The Group is the largest distributor of natural gas in Hebei Province. During the Period, mainly due to the increase in natural gas sales volume, the Group achieved natural gas sales revenue of RMB1.468 billion, representing an increase of 15.5% as compared with the corresponding period last year. The operating profit of the natural gas business of the Group was approximately RMB278 million, representing an increase of 17.5% from RMB237 million for the corresponding period last year. Mainly due to larger proportion of retail business with higher gross profit margin, gross profit margin reached 21.9%, representing an increase of 0.7 percentage point from 21.2% achieved for the corresponding period last year.
During the first half of 2013, the Group sold 726 million cubic meters of natural gas, representing an increase of 14.3% over the corresponding period last year. In particular, the volume of natural gas sold to wholesale customers by long-distance transmission pipeline, branch pipelines, city gas pipeline networks and natural gas distribution stations was approximately 385 million cubic meters, representing an increase of 5.5% over the corresponding period last year. Piped natural gas sold to retail customers was approximately 311 million cubic meters, representing an increase of 29.6% over the corresponding period last year. The compressed natural gas ("CNG") sold by CNG primary filling stations was 30 million cubic meters, which remained at the same level as last year.
In the first half of 2013, the Group's natural gas infrastructure management progressed smoothly. In particular, 75% construction work of the phase I pipeline network for ten counties had been completed; construction work of the phase I pipeline network of Chengde natural gas utilization project was substantially completed, while the planning of two gas refilling stations was also completed and is undergoing project approval formalities; the main structures welding of Huancheng sub-high pressure pipeline in Shahe had been completed. The Group owned city pipeline network with total length of 410 km, with city natural gas business expanded to 19 regional markets including the newly added market of Baoding. The Shanxi coalbed methane introduction project of the Group progressed smoothly, and a project company is expected to be established in the second half of this year. 81% of the phase I construction of Tangshan LNG project was completed and construction progressed as planned. The precooling is expected to be completed by the end of 2013.
In addition, the National Development and Reform Commission issued a notice on 28 June 2013 to adjust non-residential natural gas prices. Based on the abovementioned notice and price adjustment plan of upstream gas suppliers, the Group will negotiate with pricing authorities and end customers in each market areas to determine the gas sales prices.
Continued expansion of project reserves and new progress in offshore wind farm
During the Period, the Group realized wind power sales revenue of RMB737 million, representing an increase of 29.0% from the same period last year. The increase was mainly due to the increase in installed capacity of wind farms and the increase in the average utilization hours resulting in the increase in power sold to grid companies during the Period. The operating profit of the wind power business was RMB454 million, representing an increase of 14.4% as compared with the same period last year.
In the first half of 2013, the average utilization hours of the wind farms of the Group was 1,312 hours, representing an increase of 56 hours or 4.5% as compared with the corresponding period last year due to the enhanced operation and maintenance management; the average availability factor of wind farms reached 97.78%. The consolidated installed capacity of the wind farms of the Group was 1,346.3MW and total consolidated power generation volume of the Group was 1,610 GWh, representing an increase of 27.07% over the corresponding period last year.
During the Period, there were five wind power projects under construction with capacity under construction of 350MW and seven wind power projects under planning with capacity under planning of 748MW. Wind farm projects of 1,040.5MW had been approved under the third batch approval scheme of the "Twelve Five-Year National Plan". The 49.3MW project of Chongli Jiaocheshan Wind Farm of the Group won the award of the 2013 National Premium Electricity Construction Project. In addition, the Group had four new onshore Preliminary Approved Projects with a total capacity of 196.5MW and additional wind resource reserves of 300MW. The wind resource reserves of the Group reached 20,049MW. The 300MW offshore wind farm demonstration project at Puti Island, Laoting, Tangshan passed the investigation in relation to sea area usage study and marine environmental impact assessment by the State Oceanic Administration in May 2013 and laid a solid foundation for obtaining approval for the project.
Looking into the future, the President of the Group GAO Qingyu said, "in light of the price adjustment proposal about non-residential natural gas prices, the Company will formulate a comprehensive and practical pricing solution to pass the natural gas prices adjustment to downstream; meanwhile, we will further enhance market development efforts to promote the growth in gas sales. The Company will continue to strengthen the connection between wind power development projects and grid planning, accelerate the approval procedure and construction, and ensure the annual goal of the Company will be achieved successfully. In addition, we will continue improving the Company's management and development capabilities."
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