HONG KONG, June 24, 2015 - (ACN Newswire) - China Dynamics (Holdings) Limited ("China Dynamics" or the "Group") (Stock Code: 476), a company proactively expanding its business into the new energy industry, announced its annual audited results for the year ended 31 March 2015.
During the year, the Group's turnover amounted to approximately HK$19 million (FY2013/14: 68.2 million), mainly contributed by the motor vehicle sales from the subsidiary acquired by the Group in January 2015. A loss of approximately HK$ 60.7 million was recorded which was mainly due to the increase in administrative expenses incurred by certain subsidiaries in the PRC which were acquired in February 2014 and during the year ended 31 March 2015. The Group maintained a healthy financial position with cash and bank balances of approximately HK$391.6 million (2014: HK$276.0 million) as at 31 March 2015.
Electric bus ("eBus") and electric vehicle ("EVs")
During the year, the Group submitted the deliverables of the tender for the design, supply and fabrication of four sets of the Permanent Magnet Synchronised Motor System and Power Battery Systems for electric buses to the Hong Kong Productivity Council. Moreover, in last year the Group also acquired Green Dynamic Electric Vehicle Limited ("GDEV") which was responsible for the HKPC "eBus Project". The Group then becomes fully in control of integrating our superb Power Battery System in the whole eBus Project according to HKPC requirement standard.
In addition, in January 2015 the Group completed the acquisition of Chongqing Suitong Industrial Company Limited ("Chongqing Suitong") which is principally engaged in the manufacturing of whole eBus with all electric power system and control system; manufacturing of other buses, marketing and selling vehicle components. The acquisition is a stepping stone for the Group to develop in the new energy industry in the PRC. Chongqing Suitong is currently applying for the new energy specialty buses production license which is expected to be obtained in the third quarter of 2015. The Group is confident that it can secure sales orders totalling 600 to 1,000 electric buses of various sizes during the second half of 2015.
After the financial year ended 31 March 2015, the Group had entered into a Strategic Cooperation Agreement and a New Energy Vehicle Cooperation Agreement (the "Agreements") with Chongqing Liangjian New Area Innovation Venture Investment and Development Company Limited ("Chongqing Liangjian") to develop new energy vehicles. The Board believes that through the Agreements the Group can enhance its competitive strength and optimize the research and development capabilities and strengthen its presence in the new energy vehicle market in the PRC, especially in Chongqing.
The Group completed the subscription of 10% enlarged shareholdings in Rimac Automobili d.o.o ("Rimac") during the year. The investment represents a good horizontal business expansion opportunity into the passenger electric vehicle market in addition to the electric bus public transport fleet markets.
Mining and production of mineral products
The Group has completed the acquisition of a subsidiary, Guangxi Weiri Mining Company (the "Guangxi Weiri") during the year, which is the beneficiary of a glauberite mine located in Guangxi, the PRC. The product of the glauberite mine is thenardite which is an important raw material used in the chemical and light industrial manufacturing industries. The Group expects that there will be an increasing demand for thenardite in the PRC as a result of the ongoing urbanisation.
Mr. Cheung Ngan, Chairman of China Dynamics, said, "In accordance with the Twelfth Five Plan of the PRC government, a green environmental policy is vital to the country. It is generally accepted that vehicles emissions significantly contribute to air quality deterioration and we believe that the development of electric vehicle is definitely a global focus and an emerging trend in reducing air pollution and enhancing economic sustainability. Together with the overall consistency of the PRC economic performance, the Group is confident that the eBus and EVs operations offer a good business opportunity. We are optimistic that the Group is well positioned to develop the PRC electric buses market at a relatively fast pace, and can strive for expansion and capture the available opportunities in the future."
About China Dynamics (Holdings) Limited
China Dynamics (Holdings) Limited and its subsidiaries (the "Group") is an integrated battery, motor and motor control solutions provider. Capitalising on its industrial leading technology, China Dynamics provides high-tech products widely used in daily life for customers.
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Source: China Dynamics (Holdings) Limited
Topic: Press release summary
Sectors: Daily Finance, Automotive
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