|Satisfactory New Energy Business Performance Drives Net Profit Up by 658.3% Year-on-Year|
HONG KONG, May 11, 2018 - (ACN Newswire) - Northern New Energy Holdings Limited ("Northern New Energy" / the "Group"; stock code: 8246) today announced its first quarter results for the three months ended 31 March 2018. The Group continued to implement its dual-track development strategy and strived for diversification and professional development of its business segments. It strengthened its Catering Business and at the same time actively expanded New Energy Business. The latter delivered satisfactory performance in the first quarter of 2018, bolstering the Group's overall performance, with income up by 164.7% year-on-year and net profit after taxation rocketed by 658.3% against the last corresponding period.
In the first quarter of 2018, revenue of the Group amounted to RMB58.2 million (corresponding period in 2017: RMB22 million) and profit and total comprehensive income for the period was RMB5.1 million (corresponding period in 2017: RMB0.7 million). Basic earnings per share were RMB0.09 cents (corresponding period in 2017: RMB 0.01 cents).
The Group continued to provide diverse integrated new energy services in Tianjin during the period. With professional expertise and affording high quality services, the Group provided technological development and consultancy services in relation to heat supply and coal-to-natural gas conversion solutions to customers in Tianjin and completed contracts for construction of outdoor pipe network. It also traded new energy related industrial products. These projects generated significant revenues and profits for the Group in the first quarter.
The Group also embarked on acquisitions and mergers to expand its business scope and enhance the quality of its business. In February this year, it acquired 81.8% registered capital of Tianjin Jin Re Natural Gas Sales Company Limited ("Tianjin Jin Re Natural Gas") and the project is expected to present the Group with a new income stream in 2018. Tianjin Jin Re Natural Gas is principally engaged in sale of natural gas; gas pipeline engineering; sale, installation and maintenance of gas transmission equipment; development, consultation, service and transfer of heat supply technology; development of new energy technology; leasing and commercial services industry; installation of electric and mechanical equipment; and centralized urban heat supply service.
Looking ahead, capitalizing on the support of favorable national policies such as the "Clean Winter Heating Plan for Northern China (2017-2021)", Northern New Energy will focus on developing and strengthening the new energy segment with unlimited potential. The Group will extend the coverage of its New Energy Business to other regions in northern China, while continuing to expand its customer base and market share in Tianjin.
Subsequent to the period under review, the Group signed a cooperation framework agreement with Tractebel Engineering S.A., one of the world's largest engineering and consultancy companies, and Tianjin Jinre Heat-Supply Group Co. Ltd, a key heat-supply enterprise in Tianjin, on cooperation in such areas as coal-to-natural gas conversion heating projects, heating facilities and networks, energy efficiency management and construction of gas storage facilities. The partners will submit a feasible proposal to relevant government agencies as soon as possible in the hope that related construction can commence this year. The project will generate new income for the Group, allowing it to upgrade its professional technologies thus move closer towards the goal of becoming a provider of diverse integrated new energy services and leading Northern New Energy to advance and reach a new milestone.
As for Catering Business, the Group will adjust related business strategy to boost the profitability of the business. Regarding Property Investment, the Group will continue to identify premium investment projects for securing stable rental income and bringing better investment returns to shareholders.
Northern New Energy Holdings Limited
Northern New Energy Holdings Limited formerly known as Noble House (China) Holdings Limited, is a company listed on the GEM of the Hong Kong Stock Exchange since 2011 (stock code: 8246). In 2015, the Group began to develop new energy operations and R&D of related technologies, plus construction engineering business. The Group also operates restaurants, provides management services, and sells processed food and seafood. Also in 2015, the Group further diversified its business to cover also property investment.
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Topic: Press release summary
Sectors: Daily Finance, Energy, Daily News
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