【For Immediate Release】        16 August 2021

 

 

(Stock code: 2886.HK)

 

Announces 2021 Interim Results

*  *  *

Gross profit increased by 26% to HK$453.1 million

Profit attributable to owners of the Company increased by 60.6% to HK$231.1 million

 

Financial Highlights

HK$'000	For six months ended 30 June			Change
	2021		2020
Revenue		2,316,905	1,833,801	+26.3%
Gross Profit		453,067	359,463	+26.0%
Profit for the year		238,114	151,184	+57.5%
Profit for the year attributable to owners of the Company		231,116	143,890	+60.6%
Basic earnings per ordinary share (HK$ cents)		17.09	12.25	+39.5%

 

[Hong Kong, 16 August 2021] One of the leading clean energy operators in China - Binhai Investment Company Limited ("Binhai Investment"), together with its subsidiaries; the "Group"; stock code: 2886.HK) is pleased to announce the interim results of the Group for the six months ended 30 June 2021 (the "Period").

 

During the Period under review, the Group's overall revenue increased by approximately 26.3% to approximately HK$2,316.9 million (1H2020: approximately HK$1,833.8 million) as compared to the same period in 2020. In terms of gross profit, the Group's gross profit increased by approximately 26.0% to approximately HK$453.1 million (1H2020: approximately HK$359.5 million) as compared to 2020 and the overall gross profit margin remained stable at approximately 19.6% as compared to the same period last year. During the Period, the Group recorded significant growth in revenue from sales of piped natural gas, construction and gas pipeline installation service, which was driven by the dual carbon target and environmental and ecological policies. As a result, profit attributable to owners of the Group increased by approximately 60.6% to approximately HK$231.1 million (1H2020: approximately HK$143.9 million); basic earnings per share was approximately HK17.09 cents (1H2020: approximately HK12.25 cents).

 

Business Review

In terms of business operations, as of the first half of 2021, the number of the Group's regular gas construction and installation customers reached 2,133,714. The continued growth in the number of customers will bring in more customer resources to the Group. Piped gas sales volume reached approximately 979 million cubic meters, representing an increase of approximately 18.23% year-on-year, including approximately 619 million cubic meters of piped gas, representing an increase of approximately 18.95% year-on-year, and approximately 360 million cubic meters of piped natural gas in the first half of the year, representing an increase of 17.26% year-on-year.

 

During the period, the Group has also been striving to increase its market share and expand its operation area. In the first half of the year, the Group successfully won a number of projects, including: the Phase III Gas Supply Project in Tianjin Airport Economic Zone, China; the actual supply of natural gas to the second production line of Lanxin Glass with a gas consumption of approximately 150,000 cubic meters per day; the gas supply project of Xintiangang Steel in Tianjin Airport Economic Zone, which is a company specializing in the manufacturing of metal materials; the gas supply project of Enjie Technology, which is expected to have a gas consumption of approximately 100,000 cubic meters per day by the end of 2021, and is expected to reach 500,000 cubic meters of gas per day upon full commissioning of the project company; and the latest announcement of the acquisition of one more coal-to-fuel project in Zhengyang, the first phase of which is expected to be commissioned by the end of October 2021 with an estimated annual sales volume of approximately 14 million cubic meters of gas. The second phase of the project will be commissioned by the end of October 2022, with an estimated annual gas sales volume of approximately 32 million cubic meters. The above-mentioned natural gas facility construction, maintenance, natural gas supply and coal-to-fuel projects will help Binhai Investment expand its market share in Tianjin and other regions, while continuing to expand the sales volume of piped natural gas and steadily increase sales profit.

 

Sales of Piped Natural Gas - approximately 80.83% of total revenue

For the six months ended 30 June 2021, consumption of piped natural gas by domestic and industrial users amounted to approximately 5,984 x 106 and 15,752 x 106 mega-joules respectively. During the Period, income of the Group from sales of piped natural gas increased by approximately 27% to approximately HK$1,872.8 million. (1H2020: approximately HK$1,469.4 million).

Construction and Gas Pipeline Installation Service - approximately 17.36% of total revenue

The Group constructs gas pipelines for its clients and connects such pipelines to the Group's main gas pipeline networks. The Group then charges construction and gas pipeline installation service fees from industrial and commercial customers, property developers and property management companies. As at 30 June 2021, the aggregate length of city medium-pressure gas pipeline networks increased by 77 kilometers to approximately 3,432 kilometers. During the Period, construction and gas pipeline installation service fees received by the Group increased by approximately 23% to approximately HK$402.2 million. (1H2020: approximately HK$327.0 million).

Gas Passing Through Service - approximately 1.27% of total revenue

The Group transports gases for clients through gas pipeline networks and charges passing through fees. During the Period, the volume of gases transported by the Group for its clients amounted to 359,653,737 cubic meters and gas passing through service income increased by approximately 4% to approximately HK$29.4 million. (1H2020: approximately HK$28.2 million).

Prospects

In 2021, the PRC has made significant strategic achievements in the prevention and control of the COVID-19 pandemic, and its economic development has gradually returned to the right track. With the strategic targets of "carbon peak" and "carbon neutral" (the "Dual Carbon Targets") proposed, the low-carbon transformation of the PRC's energy structure has fully accelerated, and the bridging and supporting role of natural gas in this historic process has become more prominent. The natural gas industry is highly compatible with the national policy direction of "six stabilities and six guarantees", new-type urbanization construction and rural revitalization, and the market demand is resilient. In addition, driven by favorable policies such as the opening and sharing of LNG receiving terminals and the official establishment and operation of the National Oil and Gas Pipeline Network Group Corporation, the demand for natural gas pipeline network construction, storage and transportation is expected to increase again. The Group believes that meeting the customers' demand for clean energy in the existing regions will also facilitate the development of other projects in the Group's operating regions and expansion of new regions, enhance and consolidate the Group's position and influence in the natural gas market.

2021 is the first year of the "14th Five Year Plan". The Company will focus on the new development stage, implement new development strategies and practice new development missions. It will continue to expand value-added businesses while maintaining the revenue growth of its existing principal businesses. With the support of the two shareholders, namely TEDA and Sinopec Great Wall Energy Investment Co., Ltd., the Group will combine its own resources and advantages to capitalize the national policies and industry trends, and reward the government, customers and investors with outstanding performance for their support over the years.

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About Binhai Investment Company Limited

Binhai Investment Company Limited ("Binhai Investment") (stock code: 2886.HK), one of the leading clean energy operators in China, is principally engaged in investments in the construction and operation of gas pipeline networks, provision of connection services, supply and provision of natural gas and liquefied petroleum gas, as well as clean energy for the commercial and industrial users and urban citizens. As one of the earliest foreign-funded enterprises participating in the public utilities industry in the PRC, the Company is committed to developing the gas market in mainland China. The Company's gas business covers 7 provinces and 2 municipalities across the PRC and owns 38 subsidiaries. It has become a national clean energy supplier.

 

Company website: http://www.binhaiinv.com

 

The press release is issued by DLK Advisory Limited for and on behalf of Binhai Investment Company Limited.

 

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