Immediate Release 30 March 2015
(Stock code: 2886.HK)
2014 Annual Results
Profit for the Year Increased 55% to HK$219 Million, and Achieved Rapid Growth of Business for the Sixth Consecutive Year
Financial Highlights Total revenue was about HK$2.543 billion by a YOY increase of 14% Total asset was increased to approximately HK$3.989 billion, representing a YOY increase of 4% Profit for the year was HK$219 million, indicating a YOY growth of 55% Basic earnings per share attributable to owners of the Company during the period was 1.8 cents, representing a YOY increase of 50% The total gas pipeline network was approximately 1,790 km, representing an increase of 127 km as compared with the previous year The piped gas sales income increased 31% The connection service revenue increased 4% Final dividends paid were HK$ 42.81 million |
(30 March 2015 – Hong Kong) Binhai Investment Company Limited (“Binhai Investment” or the “Company”, stock code: 2886.HK) are principally engaged in the construction of gas pipeline networks, provision of connection services, sale of piped gas. Binhai Investment is pleased to announce the consolidated results of the Company for the year ended 31 December 2014 (the “Reporting Period”).
For the Reporting Period, the Company recorded revenue of HK$2.543 billion (2013: HK$2.229 billion), representing a year-on-year (“YOY”) increase of 14%. The Company’s gross profit amounted to HK$465 million (2013: HK$459 million), representing a YOY increase of 1%. Profit for the period was HK$219million (2013: HK$141 million), indicating a YOY growth of 55%. The total asset was HK$3.989 billion, respectively a YOY increase of 4% from the same period in last year. A dividend in respect of the year ended 31 December 2014 of HK$ 42.81million.
Rapid Business Growth for the sixth consecutive year
In 2014, as affected by the Chinese economy continued to slow down,the expansion of the natural gas industry in China considerably slowed down.As reported in the “Report on 2014 Domestic and International Oil and Gas Industry Development”, the apparent consumption of natural gas in 2014 was approximately 183 billion cubic meters, representing an increase of only 8.9% which was the lowest growth rate in the past 10 years. However, as the Chinese government has taken a variety of measures to regulate air pollution, and that the regimes of non-domestic stock gas price and incremental gas price have reformed and merged, there is still enormous development potential in the natural gas industry. During the year, as the Group continued to maintain its dedication to the continuous development of its natural gas business, the Group has achieved rapid growth of business for the sixth consecutive year.
Through strenuous efforts, in the Reporting Period, the Company has the vigorous expansion of business areas with huge development potential, including Ninghe Economic Development Area, Baodi Urban Area, Wuqing District, Harbor Bonded Zone and Huaming Industrial Park, etc. As the supply of natural gas gradually reaches areas like Lingang Industry Zone and Nangang Industrial Zone, sales volume of natural gas is expected to substantially increase. Also, the company focus on development projects outside of Tianjin. In particular, the rapid development of subsidiaries outside Tianjin, such as Yizheng, Zhuozhou, Gao’an, enhanced the Company’s competitive advantage of regional diversity.
On 11 February 2014, the company successfully listed on the Main Board of Hong Kong Stock Exchange, it was an important milestone in the Company’s development history and marked a new beginning for the Company’s future development. Listing on the Main Board will enhance the image of the Company, expand its capital market space and be conducive to the long-term development of the Company.
Connection Services
The Company constructs gas pipelines for its clients and connects such pipelines to the Company’s main gas pipeline networks. The Company then charges connection service fees from industrial and commercial customers, property developers and property management agents. As of 31 December 2014, the aggregate length of all of the gas pipeline networks owned by the Company was approximately 1,790 kilometers, representing an increase of 127 kilometers from the length of 1,663 kilometers as at 31 December 2013. In the year ended 31 December 2014, connection service fees received by the Company amounted to approximately HK$558,839,000, representing an increase of HK$23,792,000 or 4% compared to the HK$535,047,000 service fees received in the year ended 31 December 2013.
Piped Gas Sales
In the year ended 31 December 2014, consumption of piped gas by domestic and industrial users amounted to approximately 2,418×106 and 14,853×106 mega-joules respectively, as compared to 2,144×106 and 12,712×106 mega-joules respectively for the year ended 31 December 2013. During the year, sales income of the Company from piped gas amounted to HK$1,828,123,000, representing an increase of HK$428,541,000 or 31% compared to the amount of HK$1,399,582,000 in 2013.
Prospects
The Company heavily invests in gas pipeline connection and piped gas sales in recent years. As the projects enter into the harvest period in 2015, these investments will help optimize the Company’s financial performance and enhance future performance. Looking to the year 2015, the Company will seize the development opportunities of the gas industry in the PRC, leverage the opportunities of the integration of Beijing, Tianjin and Hebei and strengthen the Company’s geographical advantage, actively and carefully research on the broadening of purchasing channels at gas sources, pay attention to and appropriately promote gas utilization projects, maintain focus on substantive growth of the Company, supplemented by the strategy of mergers and acquisitions, continually to expand the development of industrial users in order to increase market share, ensure the transmission capacity of pipeline network so as to support the development in the field of CNG filling stations, pay close attention to the gas import and price reform policies in the PRC, explore and connect with competitive gas sources, further reduce the cost of gas purchase, and promote the Company’s gas price guidance work. The company will also further enhance cooperation with the shareholders, investors, government authorities, creditors and other stakeholders to achieve a win-win situation for all parties. On 26 March 2015, Binhai Investment has been assigned first-time Baa3 corporate family rating by Moody’s Investors Service (“Moody’s”), and the Outlook is “Stable”.
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About Binhai Investment Company Limited
Binhai Investment Company Limited is principally engaged in the provision of connection services for its gas pipeline networks and sale of gases in the PRC. The Company listed on the main board in Hong Kong on 11 February 2014 (Stock code: 2886). Its market coverage reaches over 6 provinces and 2 cities. With the benefits of the abundant resources in Tianjin, the economic center in Bohai Rim area, and leveraging on the rapid development in Binhai New Area, the Company ties in with the thriving development in Binhai New area with a brand new image to strengthen its principal operation, gas business, expand business scale and foster organic growth. For detailed information of the Company, please visit the website of the Company at http://www.binhaiinv.com/.
This press release is distributed by Wonderful Sky Limited on behalf of Binhai Investment Company Limited.
For details, please contact:
Wonderful Sky Financial Group Limited
Sabrina Lu / Christine Wang
Tel: (852) 2851 1038
Fax: (852) 2815 1588
Email: sabrinalu@wsfg.hk / christinewang@wsfg.hk