Author: Charles Chua

We Solutions (860.HK) Changes Name to Apollo Future Mobility Group Limited

Apollo Future Mobility Group ( AFMG; 0860.HK; formerly ‘We Solutions’ ) is pleased to announce completion of its rebranding exercise, and the official registration of new English Company name, Apollo Future Mobility Group Limited. The stock short name will become APOLLO FMG, with effect at 9:00 on 13 May. The Chinese Company name and stock short name will remain unchanged. Meanwhile, the Company has adopted a new company logo, and the website address will change to www.apollofmg.com, signalling the Group’s embarkation on a new journey to proactively promote its mobility technology business, and its determination to explore in-depth technological innovation, aiming to establish a new standard as an integrated mobility solution provider.

With the advancement and transformation of the global mobility industry, the Group foresaw ample potential in this marketspace. Through a series of strategic mergers and acquisitions, the Group has successfully transformed into an integrated mobility solution provider. In March, the Group completed the acquisition of 86.06% of Apollo Automobil, a European high-performance hypercar developer. By integrating the technologies of Apollo Automobil with the Group’s existing electric vehicle businesses, the Group is able to create a disruptive full-service mobility technology solution platform from ideation, design, modeling, engineering and simulation to prototype production, and actual testing to the delivery of pre-production prototypes to customers.

The acquisition of Apollo Automobil injected state-of-the-art mobility technologies and exceptional brand value into the Group. The acquisition further strengthens the Group’s ability to become one of the world’s leading technology solution providers of the new energy vehicle and mobility industry. The name change will better reflect the Group’s business strategies and expansion and its determination to make a statement in the future of mobility, as well as enhancing its corporate image and competitiveness.

Mr. Ho King Fung Eric, Chairman of Apollo Future Mobility Group, said, “The completion of the Group’s rebranding marks a significant milestone in our corporate development and transformation into an integrated mobility solution provider. The series of recent strategic transactions signifies our resolve in becoming a pioneer in future mobility. The Board believes the new English name and logo of the Company uplifts our corporate image and will benefit future business development of the Group and conform to the overall best interests of its shareholders.”

About Apollo Future Mobility Group Limited

Apollo Future Mobility Group Limited ( AFMG; 0860.HK ) is a leading integrated mobility technology solution provider with proprietary and disruptive mobility technologies. It is determined to build a world-leading one-stop service platform for “future mobility” through the integration of global advanced mobility technologies.

After completing the acquisition of 86.06% of Apollo Automobil, a European high-performance hypercar developer, in March 2020, the Group rebranded as Apollo Future Mobility Group, focusing its business development on twin pillars, which are Apollo Automobil and Apollo Advanced Technologies (AAT). In addition to the development and sales of hypercars and its cross-branding licensing business under the Apollo brand, the Group provides one-stop turnkey mobility technology solutions by integrating Apollo Automobil and the Group’s existing electric vehicle technologies.

The Group’s subsidiaries include Apollo Automobil, a top-tier European hypercar developer, and GLM Co. Ltd, a leading electric vehicle developer in Japan. In addition, the Group has expanded its mobility technologies by investing in Divergent Technologies, Inc., the world’s first 3D printing automotive manufacturing platform, and EV Power, a leading electric vehicle charging solutions provider.

For further details, please visit http://www.apollofmg.com.

S&P Global Ratings Affirm HTSC & Huatai International’s Positive Outlook

S&P Global Ratings today released a report affirming its positive outlook, ‘BBB’ long-term and ‘A-2’ short-term issuer credit ratings on HTSC (Stock Code: 6886:HK; “The Company”) and its core subsidiary, while also affirming the Company’s ‘BBB’ long-term issuer credit ratings. S&P Global Ratings believes the Company’s risk-adjusted capital (RAC) ratio can be sustainably managed above 15% for the next one to two years, and thus reach its threshold for a potential upgrade.

“The positive outlook on HTSC reflects our view of a one-in-three chance that the strengthening capitalization could result in an upgrade over the next two years. Our view also reflects the Company’s adequate first-quarter earnings amid the COVID-19 outbreak in China and controlled exposure to directional equity trading, while maintaining a buffer above our threshold for a very strong capital assessment, despite market volatility.”

This affirmed rating and denoted upgrade will further cement HTSC’s position within the global capital market, further reduce the cost of overseas financing, and create beneficial conditions for cross-border business. HTSC’s annual revenue in 2019 was RMB 32.437billion, up 32.36% year-on-year, of which Huatai International accounted for 12.48%.

Tianyun International Recognised as National Level High and New Technology Enterprise (HNTE)

Tianyun International Holdings Limited (“Tianyun International”, together with its subsidiaries, the “Group”) (Stock code: 6836.HK), a leading seller and manufacturer of processed fruits products in China announced that the Group’s subsidiary Shandong Tiantong Food Co.,Ltd. (the “Shandong Tiantong”) was granted a High and New Technology Enterprise (“HNTE”) certificate jointly presented by the Department of Science & Technology of Shangdong Province, Shangdong Provincial Department of Finance and Shangdong Provincial Tax Service, Tax Service, State Taxation Administration. This qualification is valid for three years.

This is the first time Shandong Tiantong has been recognized as a HNTE. Under the regulations of “PRC Enterprise Income Tax Law” and the “Administrative Measures for Determination of High and New Technology Enterprises”, Shandong Tiantong will enjoy the national preferential policies on income tax relief for three consecutive years, which indicates that the Group is being highly recognized and supported at national levels in terms of technological strength and innovation capabilities.

Mr. Yang Ziyuan, Chairman and CEO of the Group, said, “The Group successfully obtained the national High and New Technology recognition and officially becomes one of the HNTEs for the first time. We are delighted being recognised for our food processing technology research and innovation. The recognition allows the Group to enjoy more technical and policy support at the national levels. Going forward, the Group will continue to pursue proprietary research and development, and increase the degree of creativity for its food processing technology in order to further enhance the Group’s integrated core competitiveness and create more returns for our shareholders.”

About Tianyun International Holding Limited (Stock Code: 6863.HK)
Tianyun International Holdings Limited (the “Company”) and its subsidiaries (collectively referred to as the “Group”) are principally engaged in (i) the production and sales of processed fruit packaged in metal containers, plastic cups, glass containers and aluminium foil bags and ii) trading of fresh fruit. Processed fruit products are sold both under its own brands “Bingo Times”, “fruit zz” and “Tiantong Times” and on an OEM basis.

The Group has been consistently committed to provide healthy and safe products to its customers. As one of the food enterprises with the most complete quality certifications, we have been continuously dedicated to adhering to stringent international production standards and are accredited with BRC (A), IFS Food (High), FDA(FSMA), HALAL, SC, KOSHER, BSCI and ISO22000,etc. in respect of our production facilities, quality control and management. The Group has also passed the internal food production standard reviews and audits from several the UK and US supermarket chains. At the same time, as a Chinese “Equal production line; Equal standard; Equal quality” food production and export enterprise, the Group has been supplying products of equivalent quality to domestic and international markets. Since 2016, the Group’s own brand processed fruit products have continued to obtain a high degree of market recognition, and became the first fruit processor in China’s fruit processing industry to place the “Zero Added Preservatives” label on its products.

The Group was awarded respectively the China’s Most Promising Listed Companies by the internationally renowned financial magazine Forbes, and the “2017 Linyi Mayor Quality Award” as an integrated food production and sales enterprise by the government of the Linyi City of the Shandong Province. The Group’s newly and proprietary researched, developed and produced pure fruit snack food also received a “Certificate of Invention Patent” from the State Intellectual Property Office of the People’s Republic of China in 2018. The Group and its own brand “Bingo Times” were awarded as China Canned Food Leading Enterprise and China Canned Food Leading Brand by national institutions respectively in 2019.

For more information, please visit www.tianyuninternational.com and https://v.douyin.com/v2de9w/

Given the global coronavirus situation, we are providing an update on TTI’s performance

Hong Kong-based global power equipment and floor care company Techtronic Industries Co. Ltd. (“TTI” or the “Group”) (stock code: 669, ADR symbol: TTNDY);

Given the global coronavirus situation, we are providing an update on TTI’s performance.

When we initially learned about the coronavirus outbreak, our first priority was to ensure we created a safe environment for our employees. We have carefully complied with all coronavirus national and local safety protocols.

We are pleased to confirm that after a period of minimal disruption, our supply chain is functioning superbly. Our vaunted product development system is now fully operational after quickly adjusting to new coronavirus protocols. Additionally, our sales and marketing teams are also operational and highly effective in all markets globally.

Although the impact of the coronavirus has created a challenging environment, we are now delighted to see a resurgence in demand. DIY tools and outdoor products, and floorcare are all experiencing significant sales increases. Encouragingly, our MILWAUKEE pro-business is continuing to gain sales traction worldwide. A highlight for TTI has been the tremendous growth of our global e-commerce business. We have worked closely with our e-commerce customers, capitalizing on the accelerated shift to online and curbside pickup sales. All these positive factors bode well for our performance.

We will continue to aggressively invest in exciting, breakthrough new product. Our new product launches are proceeding on schedule, including the revolutionary MILWAUKEE MX FUEL Cordless Equipment System. All of our business units are also on schedule to roll out a series of exciting new breakthrough products throughout 2020.

We believe TTI is uniquely positioned in our industry to continue outperforming the market. We are in an enviable position of having a very strong balance sheet and having highly disciplined fixed and working capital management. Our exceptional management team is leading our company not only to succeed throughout this trying time, but also to continue our march towards global leadership and financial excellence.

About TTI
Founded in 1985 and listed on the Stock Exchange of Hong Kong Limited in 1990, TTI is a world leader in cordless technology spanning Power Tools, Outdoor Power Equipment, Floor Care Appliances and Accessories for the consumer, professional, and industrial users in the home, construction, maintenance, industrial and infrastructure industries. The Company has a foundation built on four strategic drivers – Powerful Brands, Innovative Products, Exceptional People and Operational Excellence – reflecting a long-term expansive vision to advance cordless technology. The global growth strategy of the relentless pursuit of product innovation has brought TTI to the forefront of its industries. TTI’s powerful brand portfolio includes MILWAUKEE, AEG and RYOBI power tools, accessories and hand tools, RYOBI and HOMELITE outdoor products, EMPIRE layout and measuring products, and HOOVER, ORECK, VAX and DIRT DEVIL Floor Care and Appliances.

TTI is one of the constituent stocks of the Hang Seng Index, FTSE Developed Index and MSCI ACWI Index. For more information, please visit www.ttigroup.com.

All trademarks listed other than AEG and RYOBI are owned by the Group. AEG is a registered trademark of AB Electrolux (publ.), and is used under license. RYOBI is a registered trademark of Ryobi Limited, and is used under license.

Sterling Group Exclusively Supplies Apparel Products for IMBI’s Proprietary Brands

Sterling Group Holdings Limited (“Sterling Group” or the “Group”, HKEX: 1825), a woven apparel manufacturer for international apparel brands, has announced that it has entered into a Direct Vendor Agreement with iMedia Brands, Inc. (“IMBI”, NASDAQ: IMBI), pursuant to which, the Group has become the exclusive supplier of apparel products under IMBI’s proprietary brands for five years.

IMBI is a global interactive media company that manages a growing portfolio of niche, lifestyle television networks and media service businesses, primarily in North America. Its brand portfolio spans multiple business models and product categories. ShopHQ, its flagship network with a reach of millions of homes, is a multiplatform interactive television network offering an assortment of proprietary, exclusive and name brands to consumers via television, online and mobile. For the last three years, IMBI’s total fashion and accessories business, including proprietary and name brands, accounted for around 17 – 18% of its annual sales which ranged from US$596 million to US$666 million .

Ms. Wong Mei Wai Alice, Executive Director and Chief Executive Officer of Sterling Group, said, “We are pleased to establish the partnership with IMBI, especially under such a trying economic environment. This is an important development of the Group’s business having acquired a customer which potentially may contribute a significant increase in sales volume. Another noteworthy advantage is that the Group will chiefly act as their sourcing agent, manufacturing very little in the Group’s own factories but mostly buying complete garments from outsourced factories where the Group manage the production process by providing technical, quality assurance and manufacturing support services. The additional business takes advantage of our existing manufacturing and sourcing infrastructure in China, Sri Lanka and the Philippines, allowing us to offer quality products at better value to IMBI.”

Honghua Group Achieves Annual Revenue Growth for Third Consecutive Year While Its Triple Innovations Ensure Sustainable Development

The globally leading onshore oil rig supplier Honghua Group Limited (Ticker: 196.HK, “Honghua” or “the Company”) today announced unaudited consolidated annual results for the year ending on 31 December 2019 (“the period”).

During the period, centering on the principles of “Business Model Innovation, Management Innovation, Technology Innovation”, Honghua continued to explore the model for high-quality sustainable development. Honghua recorded rapid growth in both operating revenue and net profit during the year, reaching a record high since its listing in 2015. Honghua’s revenue from continuing operations amounted to approximately RMB4,425.7 million, representing an increase of 5.2% from RMB4,205.2 million for 2018. The profit attributable to equity shareholders increased by 30.6% from RMB82.3 million for 2018 to approximately RMB107.5 million in 2019 while basic earnings per share in 2019 was RMB2.03 cents. Honghua’s oil and gas engineering service achieved major breakthroughs and the sales of core components such as electric fracturing pumps grew rapidly – revenue and profit of this service line continued to grow for a second year. In 2019, thanks to the national energy security strategy and the prime period for the development of unconventional oil and gas such as shale gas, Honghua achieved significant growth in new domestic orders, bringing the proportion to domestic sales revenue for the year reached 51%, the highest level since the listing of the Company.

OIL AND GAS ENGINEERING SERVICE BUSINESS SEGMENTS ACHIEVED MAJOR BREAKTHROUGHS ACROSS MULTIPLE AREAS IN BOTH DOMESTIC AND OVERSEAS MARKETS
In terms of drilling services, Honghua had a total of 94,018 meters in footage during the year, which is the highest workload in last three years. The turnkey project on the integration of fracturing oil testing for the first drilling rig at the shale gas platform in Changning, Sichuan has completed, marking the leap-forward breakthrough in oil services from drilling and fracturing single engineering services to platform turnkeys. During the year, Honghua’s oil service team entered Chongqing market for the first time. Honghua also broke the highest footage record in a single day for the project and successfully contracted national shale gas development demonstration project in Guizhou. It has obtained project orders, which worth over USD30 million in aggregate, from international renowned oil service companies, with service term effective throughout 2020. In the Middle East, Honghua’s oil service has established good reputation with its quality service, and successfully renewed the drilling project, which worth approximately USD16 million, with existing customer, COSL. Production efficiency for the year was 80.76%, up by 16.9% compared to last year.

In terms of well completion services, Honghua focused on shale gas market. The entering into of the shale gas fracturing engineering service agreement extended the scope of fracturing services from purely pumping service to comprehensive fracturing services. The number of stages for pumping service increased by 2.5 times to 3,000 in 2019. Honghua obtained RMB90 million fracturing service contract from the tight oil and gas exploration and development department of Southwest Oil & Gasfield, which is the first tight gas fracturing engineering service contract of the Company. During the period, Honghua also entered into the shale gas fracturing engineering service agreement, which worth approximately RMB50 million in aggregate, with a subsidiary of CNPG. Our goal on creating a complete set for our fracturing equipment has gradually realized on schedule. In Sichuan and Chongqing, the complete set of fracturing equipment, including 6000HP electric fracturing pumps, electric sand mixing shovel, smart control center, 105MPa high pressure manifold and flexible water tanks etc. independently invented by Honghua, has been utilized for the first time. As China’s leading electric fracturing pumping service provider, Honghua serviced in Changning, Weiyuan, Rong County and Lu County, Sichuan, Fuling and Nanchuan, Chongqing and Taitema Lake, Xinjiang, covering the four major production zones in China, namely Fuling Shale Gas Field, Nanchuan Shale Gas Field, Weirong Shale Gas Field and Changning Shale Gas Demonstration Zone.

PRODUCT SALES EXCEEDED EXPECTATIONS TO NEW RECORDS
In 2019, Honghua successfully achieved breakthrough in 1 new market, obtained 11 orders from new customers and sold 24 land drilling rigs in total. Thanks to the national energy security strategy, the prime period for the development of unconventional oil and gas as well the increasing CAPEX of China’s big three oil giants, Honghua achieved significant growth in new domestic orders. To highlight, Honghua obtained an order for main drilling rigs from a subsidiary of CNPC Group, which worth RMB110 million. Subsequently, Honghua signed orders for ancillary equipment such as electric system, which worth RMB60 million. Such orders were bided by 6 drilling rig manufacturers, and Honghua won all orders with its high-quality drilling rigs and outstanding aftersales services.

In terms of parts and components sales, we sold 8 sets of fracturing pumps as supporting characteristic equipment of shale gas throughout the year. Meanwhile, Honghua conducted structural optimization on electric fracturing pump, thus improving both operating efficiency and operating time of the product. We have achieved a national new record of zero default for continuous operation of 200 hours in our operation block. Flexible liquid tanks have been recognized by customers, who entered into bulk purchase orders. Hence, the sales of flexible liquid tanks increased by 40% compared to last year. During the year, the progress of creating a complete set for our fracturing equipment ran quickly. We have introduced fracturing ancillary equipment such as electric sand mixing shovel, liquid supply shovel and 105MPa high pressure manifold. In 2019, there was significant increase in the proportion of independent sales of core parts and components to total sales, reflecting the implementation of Honghua’s strategic positioning of “machine-to-component”. The core self-produced parts and components of Honghua, increased by 79% as compared to the corresponding period of last year.

OUTLOOK
In 2020, Honghua will seize the development opportunities in the domestic unconventional oil and gas market, adhere to the three major innovation principles, deepen the strategic structural transformation, optimize the operation and management concepts, and enhance high-quality profitability. Honghua will continue to enhance its two core business advantages in rig drilling and well completion and to conduct a transformational development plan of becoming an intelligent platform. Honghua will also respond to the national policy on energy security and increase the proportion of clean energy. We will promote the general economic and eco-friendly development solution for unconventional oil and gas exploration, facilitate the application of packaging and standardization of complete set of fracturing equipment, with 6000HP electric fracturing pump as core, implement the general eco-friendly development solution of “pumping gas with electricity and combination of gas and electricity”. Meanwhile, leveraging on our competitive edges as manufacturer, and driving our services with equipment, we will further enhance the efficiency of our oil service team and project management capability, thereby further expanding our business scale and enhancing profitability.

Secondly, Honghua will continue to build up its core competitiveness with technologies. We will facilitate the research and commercialization of downhole tools, especially for twist guidance downhole tools, thus creating another feature product line of Honghua. In addition, Honghua will also enhance the upgrade of intelligence electric fracturing system, and facilitate the research and development on deep-sea mining projects such as the fluidization equipment for solidified natural gas hydrate, thus continue to inject vitality to the Company. Focusing on the oil and gas industry, Honghua will fully implement a “platform-mode” development model while leveraging the Company’s advantages in oil and gas equipment technology and manufacturing capability. We plan to obtain our unique industry competitiveness by establishing a global sales network, gathering technology resources from major shareholders and offerings of oilfield service providers, and connecting upstream and downstream corporates as well as external financing and leasing solution providers. We aim to build an oil and gas industry ecosystem and achieve win-win solutions with market players.

In addition, Honghua will continue to focus on emerging markets, expand the domestic market share and explore the equipment upgrade demand as well as the demand on customized drilling rigs in OPEC countries. The macro environment has been severe; however, we will ensure the implementation of major projects in overseas markets. Looking inward, Honghua will focus on the development of new drilling rigs and our equipment improvement business in China. Our key focus will be on two future products: intelligent drilling rigs and intelligent fracturing systems, and an “intelligent” product strategy. We are continuously optimizing our precise management and effectively improving production, delivery and profitability as well as the process and quality control system. In the high-risk cycle, Honghua will strengthen the Company’s cash flow management and control, implement an asset-light operation model, increase the vitality of existing assets, and improve the efficiency of capital management and operations. Leveraging its high-quality development and profitability, Honghua strives to become a global leader in equipment and technology for oil and gas exploration and development, and an integrated supplier offering a full range of energy services and solutions with comprehensive competitive strengths.

About Honghua Group Ltd
Honghua Group Ltd (Stock Code: 0196.HK, “Honghua”) is the main platform for energy equipment development of China Aerospace Science & Industry Corporation (“CASIC”). As one of the leading land drilling equipment manufacturers in the world and the largest land drilling rig exporter in the PRC, Honghua is primarily engaged in developing and manufacturing land drilling equipment (drilling rigs, parts and components as well as downhole tools, etc.), completion products (including fracture package), offshore drilling module and package as well as shale gas and oil exploration and development service. Leveraging strong R&D capability, high-quality production facilities and a mature international sales network, Honghua’s products have been sold to a large number of famous enterprises all over the world, across major oil-production regions such as North America, the Middle East and emerging markets including South America, South Asia, Russia, Central Asia and Africa. In the future, Honghua will continue to focus on its key businesses while increasing the resource allocation to unconventional oil and gas business and the “energy + internet” field. Honghua aims at becoming a world leading oilfield service provider.

Analogue Announces Acquisition of Transel Elevator & Electric, Establishes First Footprint in the USA

Analogue Holdings Limited (“Analogue” or the “Company”, together with its subsidiaries collectively the “Group”) (stock code:1977), a leading electrical and mechanical (“E&M”) engineering service provider in Hong Kong with operations in Macau and mainland China, today announced the acquisition of 51% of equity interests in Transel Elevator & Electric Inc. (“TEI”) with an aggregate consideration of US$35.7 million, equivalent to approximately HK$278.46 million, setting its first foothold in New York, the United States of America (“USA”). Upon Completion, TEI will become an indirect non-wholly owned subsidiary of the Company.

Dr. Poon Lok To Otto, Chairman of Analogue Holdings Limited, said, “We are pleased to announce the acquisition of TEI, another significant initiative of the Group. Over the years, we have been sparing no effort to expand our lifts and escalators business and created our own brand Anlev. Aligning with the vision of TEI, we believe the acquisition will strengthen our customer base in the industry and allow us to better execute the New Technology, New Market and New Business Mode strategy. It is also expected to create synergies across our other business. Furthermore, being able to set foot in New York will definitely act as a stepping stone to expand our business in USA and ultimately on a global basis, capturing the abundance of opportunities. Looking forward, while uncertainties in the economy continue to prevail, we will monitor the market with caution to enhance our profitability and achieve continuous growth.”

Since the Group’s successful listing last year, it has been actively seeking new opportunities to further strengthen all aspects of its business segments. According to the Elevator Report 2017 issued by the New York City Department of Buildings, New York has approximately 84,000 elevators, claiming to be the largest stock in North America and with the oldest stock in the world. In view of such potential demand and leverage on its successful business model, the Group considers the acquisition as a strategic move which will provide huge opportunity to gain presence in the New York markets while gradually tapping the USA market.

Founded in 1989, TEI is one of the largest independent lifts and escalators companies in New York, principally engaged in the business of providing new construction, modernization, repair and maintenance services in the vertical transportation sector for both residential and commercial real estate customers. With its vision to leverage the leading position and reputation to win larger projects, targeting to increase its market share, the Group sees its market potential and expects great synergies can be generated among the two parties, which will lead to a win-win situation.

Financial Highlights of Transel Elevator & Electric Inc.

Year ended 31 December
(US$’million) 2019 2018 Changes
Revenue 118.7 95.1 24.8%
Profit before taxation 10.5 3.2 228.1

For the year ended 31 December 2019, TEI is in a sound financial performance with revenue increasing from US$95.1 million to US$118.7 million, marking a 24.8% growth, and the profit before taxation soared by 228.1% to US$10.5 million over the last fiscal year. Especially, the CAGR of revenue was recorded at 17% from 2014 to 2019, which shows an outstanding growth potential. Armed with this solid foundation, Anlev will leverage TEI’s extensive experience and market penetration in New York to further expand its brand reputation.

About Analogue Holdings Limited
Established in 1977 and headquartered in Hong Kong, the Group is a leading E&M engineering service provider in Hong Kong, with substantial operations in Macau and mainland China. The Group provides multi-disciplinary and comprehensive E&M engineering and technology services in different segments, including Building Services, Environmental Engineering, ICBT and Lifts & Escalators to a wide spectrum of customers from the banking, property development, education, entertainment, hospitality, information technology, data centres, transportation and utilities sectors, as well as departments of the Hong Kong SAR Government. The Group also manufactures and sells Anlev lifts and escalators internationally. Nanjing Canatal Data Centre Environmental Tech Company Limited, an associate of the Group specialised in manufacturing of precision air conditioners, has been listed on the main board of the Shanghai Stock Exchange since November 2017.

HTSC Announces 2019 Annual Results: Strengthened Capital Base with Deepened Digital Transformation across Businesses

Achieved 78.86% Increase in Net Profit Attributable to Shareholders

HTSC (Stock Code: 6886.HK; “The Company”) announced its annual results for the year ended December 31, 2019 (“Reporting Period”). The Company achieved RMB32.44 billion in total revenue and other gains, a year-on-year increase of 32.36%, while the profit of this year attributable to shareholders surged 78.86% to RMB9.00 billion. As a result of the Company’s Global Depositary Receipts (“GDR”) issuance on the London Stock Exchange through the Shanghai-London Stock Connect pilot, the Company’s net assets grew to RMB 125.65billion, laying an enhanced funding profile for its multi-dimensional development in the future.

Enhanced Capabilities Facilitated by Platform Innovation in Wealth Management

According to the Annual Report, the Company has a customer base of nearly 14 million with total customer account assets exceeding RMB3.35 trillion as of the end of the Reporting Period. The Company’s equity and fund trading volume amassed to RMB20.57 trillion, tapping the market’s underlying potential while maintaining its leading position in the industry.

During the reporting period, the Company fully promoted digital transformation, built an industry-leading wealth management platform, and optimized the headquarters-driven integrated service model. The mobile service platform “ZhangLe Fortune Path” underwent several upgrades to optimize its digital service offering; according to Analysys statistics, the app’s NMAU (number of monthly active users) in December 2019 was 7.79 million, continuing to rank first among all securities companies’ apps. During the Reporting Period, the Company comprehensively rebuilt its wealth management work platform and launched “AORTA”, a cloud-based platform that serves as an important mid-end support for both customers and front-end investment advisors. Through “AORTA”, the Company has provided prompt and targeted strategies and solutions to over 2,000 investment advisors in China, while ensuring the delivery of professional and high-quality services to the customers. According to statistics from the Securities Association of China, investment advisors comprise over 30% of employees of the Company by the end of the Reporting Period.

In terms of financial products sales, the Company endeavored to strengthen the use of its investment research system in providing efficient insights and supporting customer product allocation, so as to enhance the competitiveness of all financial products. In 2019, the sales volume of financial products achieved RMB374.36 billion, while the number of financial products reached 5,533.

With regards to capital-based intermediary business, the balance of margin financing and securities lending business of the Company amounted to RMB67.13 billion with a market share of 6.59% and an overall maintenance guarantee ratio of 314.66%, ranking first in the industry.

Expanded New Economy Client Ecosystem Led by Investment Banking Business

With the industry’s inaugural digital service system for institutional clients, the development of the Company’s digital capabilities in institutional services accelerated with the aim to build a digital financial ecosystem together with its clients. In 2019, the Company launched the 2.0 version of “Xing Zhi” mobile app, an independently developed digital platform that supports online application of IPO, private placement and convertible bond projects, client engagement in research activities, and customization of financial products for institutional clients, empowering to expand client network for institutional services.

With the strategy to focus on emerging markets and high-quality clients in technology industry, the Company’s investment banking business reinforced the synergy between domestic and overseas businesses, and built up the industry-leading brand influence and a client ecosystem in the comprehensive health and TMT industries.

During the Reporting Period, the Company was the industry front runner with 14 CSRC approved M&A and restructuring transactions, amounting to an outstanding RMB 128.07 billion. Among which, the leading restructuring project – by transaction amount disclosed – of Shuanghui I&D, the largest Chinese semiconductor M&A between China’s Wingtech Technology and Nexperia Holding, and Gree’s mixed ownership reform in partnership with Hillhouse Capital were some of the flagship projects.

According to Wind statistics, the Company’s equity underwriting in 2019 amounted to RMB132.10 billion, ranking third in the industry. During this period, the Company partook in the listing of five enterprises onto the SSE STAR Market, including HYC Technology, the first project on the STAR Market. According to SSE statistics, as of the end of the Reporting Period, there were 19 Huatai Securities sponsored companies accepted by the STAR Market, firmly cementing the Company’s leadership position.

The Company continued to promote and develop its platform-based investment and trading capabilities, while increasing OTC derivatives trading volume, boosting market making volumes for exchange-traded options, and maximizing the scale of income certificates. In addition, the Company’s bond settlement volume soared to second place in the industry.

Industry Leading Position in Active Asset Management AUM

The Company’s asset management business was further augmented through enhanced business innovation, strengthened transformation towards active investment management, and a “fixed income +” product-centric strategy. During the Reporting Period, the revenue of Huatai Asset Management achieved RMB2.59 billion, growing to a new record high. According to statistics from the Asset Management Association of China, the private active asset management scale of Huatai Asset Management averaged RMB252.25 billion on a monthly basis as of the end of Q4 2019, ranking third in the industry. According to Wind statistics, Huatai Asset Management’s scale of enterprise ABS (asset securitization) issuance during the Reporting Period amounted to RMB90.89 billion, ranking second in the industry.

The private equity fund management business continued to focus on the comprehensive health and TMT industries, with a total AUM of RMB49.59 billion across 40 investment projects during the Reporting Period. Suzhou BrightGene, Jiangsu Bioperfectus Technologies and Shenzhen Lifotronic Technology, invested by Huatai Purple Gold Investment, were listed on the STAR board in 2019; in light of the recent COVID-19 pandemic, the COVID-19 Nucleic Acid detection kit developed by BioGerm was among the first batch to have obtained the Medical Device Registration Certificate on January 31, 2020, while Vazyme Biotech has developed a novel antibodies detection kit, both of which have played a crucial role in combating COVID-19.

Further Growth Fueled by Development in International Business

The international business of the Company achieved numerous historical accomplishments and breakthroughs in 2019. The Company’s issuance of GDRs as the first firm to be listed on the London Stock Exchange through the Shanghai-London Stock Connect raised USD1.69 billion in the overseas market; this was the largest IPO in the global depositary receipts market since 2013, and with the successful listing the Company also became a “A+H+G” financial institution listed in three markets. The Company’s U.S.-based subsidiary AssetMark also successfully listed on the New York Stock Exchange, raising USD316 million to enhance its capital base and allow for long-term development of its distinctive financial service platform. In addition, Huatai Securities (USA) obtained a broker-dealer license in the U.S. to carry out broker-dealer business in the country, while Huatai Financial Holdings (Hong Kong) forged ahead against market adversity, to emerge as one of the leading Chinese-funded securities companies in Hong Kong. As of the end of the Reporting Period, the international business segment contributed to 12.48% of the Company’s total revenue and other income.

During the Reporting Period, Huatai Financial Holdings (Hong Kong) completed 14 IPO projects and 42 bond issuance projects, contributing to approximately HKD19.73 billion in underwriting amount. In addition, it completed 4 financial advisory projects and 6 structured investments and financing projects. In 2019, Huatai Financial Holdings (Hong Kong) obtained the UK cross-border Global Depositary Receipts conversion institution certification as well as membership to the London Stock Exchange.

As one of the major financial institutions in China, the Company is dedicated to fulfill its social responsibility with its financial expertise. The Company improved its ESG (Environment, Social and Corporate Governance) management structure, provided financing services for technologically innovative and environment-friendly enterprises, and continued to promote the development of green finance; in 2019, the Company underwrote 31 green bonds with the total financing scale of RMB55.48 billion. Meanwhile, as a responsible corporate citizen actively engaged in promoting sustainability, the Company’s corporate philanthropy project “Yixin Huatai”, continued to improve the level of professional operations, and partnered with NGOs to carry out a series of projects that focus on protecting the Yangtze River source region ecosystem and supporting the distressed children both physically and mentally. Amid the crucial time of containing the spread of COVID-19, the Company was able to fully utilize its professional expertise to support industries and enterprises in key regions financially; with the advanced financial technology, the Company was able to provide more diversified online services for individual and institutional clients. Moreover, the Company actively integrated advanced resources within the healthcare and logistics ecosystems, to effectively and efficiently provide targeted support to the areas of Hubei Province most in need.

Tianyun International Announced 2019 Annual Results

Total Revenue exceeded RMB 1 billion;
Revenue from Own brand business surged 31%;
Full year total dividends jumped 9.1% YoY

Tianyun International Holdings Limited (“Tianyun International”, together with its subsidiaries, the “Group”), a leading seller and manufacturer of processed fruits products in China, announced its results for the year ended 31 December 2019 (“Year under Review”).

The Group’s annual revenue exceeded RMB 1 billion in 2019. Revenue, gross profit and net profit all recorded double-digit growth. The gross profit of all three segments namely OEM, own brand business and fresh fruit business rose simultaneously. To share the achievements we made with shareholders, the Board recommends a final dividend of HK$ 3.0 cents per share, implying a full year total dividends of HKD 4.8 cents in 2019, with a year-on-year increase of 9.1%.

According to a recent analysis report on China’s processed fruits and vegetables market industry published by Euromonitor International, a global institution on the field of market data and research, the industry market size of 2019 has grown by 8% year-on-year to RMB12 billion while Tianyun International is a leading enterprise in the industry. With many years of intensive cultivation in the processed fruit industry, the Group’s brand, image and product quality have been highly recognized.

During the Year Under Review, the Group continued to receive multiple accolades, including the “40th Anniversary of the Reform and Opening Up of the Country – China Canned Food Brand Award”, “2019 China Canned Food Leading Brand” and “China Canned Food Leading Enterprise” by the China Canned Food Industry Association. The Group also made the Most Valuable Chinese Brands for the third consecutive year and stepped across the RMB1 billion mark in assessed brand value for the first time and was also elected as a corporate member of the 2nd Council of the China Council for Brand Development. All these show the high level of market recognition for the Group’s outstanding brand value and influence, and also reflect the steady growth of market share and consumer recognition for the Group’s own brand products.

Continue to focus on its own brand, precise marketing and e-commerce bringing fruitful results
During the Year Under Review, the Group’s own brands, including “Tiantong Times”, “Bingo Times” and “fruit zz” maintained rapid revenue growth. The Group continued its effort in active participation in various international and domestic fairs and exhibitions, the Group has been endeavouring to expand into strong sales channels such as regional distributors and large chain supermarkets, enabling well- managed development of the sales network of our own brand and expanding product coverage to 27 provinces, direct municipalities and autonomous regions across the country, as well as 306 exclusive regional distributors, covering renowned chain supermarkets including Auchan, RT-MART, CR Vanguard, AEON, Beijing Jingkelong and Jinan Hualian. The Group successfully enhanced consumer interaction, increased sales and boosted online-to-offline image through organising various promotional activities. The Group also responded to the consumers’ preferences on online shopping and live streaming platforms, promoted products and built brand image on popular live streaming platforms such as TikTok, and successfully increased public access to our ecommerce tstores, which drove an increase in sales revenue.

OEM business remained steady, eyeing on global quality clients
During the Year Under Review, the Group’s OEM business maintained stable growth with seamless cooperation with renowned international food brands and continued to expand of our customer base. The Group’s OEM processed food products are eventually exported to a relatively dispersed range of regions, allowing us to effectively diversify risks associated with an overly concentrated customer base. As the global market’s appetite for processed food products made in China remains massive, the Group will continue to explore more business partnership opportunities in Japan and seek new and quality clients in other markets, such as Canada, Europe, Australia and New Zealand, in order to drive sustainable development in our OEM business.

Strive for the RMB 1 trillion fresh market underthe name of a leading fruit company
For years, the Group has selected and resold a small portion of fresh fruit to domestic fresh fruit wholesalers. A renowned data analytics consultant and Alibaba Group Holding Limited jointly published the 2019 Online Fresh Food Consumption Development Trends Report, predicting that the fresh food market size will grow to RMB1 trillion by 2025. With online shopping becoming part of daily life, this shows that there is massive potential in the online fresh food market. The Group closely monitors the development of China’s fresh fruit market, actively seeking partners that have both domestic and international fresh fruit sales channels and reputable Chinese brands associated with fresh fruits, in order to promote more sales, exchange and processing of fresh fruits from different origins of both domestic and overseas market, and bring a richer and more diversified varieties of quality fruits and processed fruits to the consumers at large.

Preparation work for Shandong No. 5 and No. 6 production workshops is under way and expected to release full production capacity by 2021
The Group has continued to improve production facilities during the Year Under Review, in order to raise our level of automation and production efficiency. Currently, the Group has completed the land acquisition for the No. 5 and No. 6 production workshops in Shandong, and preparation work is under way and various construction projects are expected to commence as soon as possible and complete in the first half of 2021. a new form of Tetra Pak packaging that is more environmentally friendly, convenient and oriented towards the PRC market will be launched along with the new project in Shandong with regard to No. 5 and No.6 production workshops. The new packaging is expected to lead to significant increase in product types and specifications, and raise volume of production orders.

Yichang Tiantong has continued to transform its facilities and enhance its capacity, effectively increasing the Group’s production capacity for new products and existing processed fruit products, while also facilitating the Group’s arrangements with warehousing and transportation of its own brand products in Central China as well as developing subtropical fruit products. During the Year Under Review, Yichang Tiantong carried out production smoothly and has successfully increased production capacity and fulfilled its production goals in 2019 during its production peak season in the second half of 2019.

Insist on independent and proprietary innovation with products and technology fully upgraded
The Group always upgrades and improves its production technology and products to achieve healthy and long-term development. During the Year Under Review, the Group was accredited as the 8th batch of the municipal level “One Technique for One Enterprise” R&D centre by the municipal government of Linyi City of Shandong Province. This is a significant recognition on the Group’s capability on its independent innovation. Furthermore, the Group has gradually achieved its operating goal of deseasonalisation. During the Year Under Review, the Group successfully utilised new modern cold storage technology to extend fruit storage period and stretching a longer seasonal cycle for fruit processing. Additionally, the Group successfully developed a proprietary formula for a functional sport drink and obtained the relevant production permit. The Group has entered into the final stage of development of new products such as fruit tea and fruit-flavoured bubble tea. The Group will commence production of and launch various special beverage products depending on market conditions.

Strengthen up through M&A; Combined competitive advantages of strategic partners to lay solid foundation for long-term diversified development
Besides the signing of a memorandum of partnership with Sichuan Development Holding Ltd (“SDH”) at the beginning of 2019 to leverage both parties’ strengths and deepen cooperation in the agriculture field, the Group established a joint venture company in Sichuan Province of PRC with Sichuan Yizhan Enterprise Co., Ltd., (“Sichuan Yizhan”), a subsidiary of Sichuan Development International Holding Company Ltd (“SDIH”), to jointly develop a supply chain for processed agricultural and food products as well as a base for supply of raw materials that comply with international standards. During the Year Under Review, the Group has actively commenced vital preliminary work such as land acquisition, environmental, safety, filing, and design works etc. for its Sichuan project. And further in June 2019, the Group, SDIH and SC Foods Co., Ltd. (“SC Foods”), a Japanese food enterprise, signed a tripartite “memorandum of strategic cooperation”, intending to develop strategic cooperation in respect of the international market, which includes assisting the Group to implement and operate the food processing and international trading centre project.

Moreover, the Group established its strategic partnership with a renowned beverage enterprise in November 2019, with the aim to develop special and sport beverage products and construct relevant facilities and production lines.

Mr. Yang Ziyuan, Chairman and CEO of the Group commented, ” ‘Fruit processing’ industrial chain remains the main development theme for us. We will continue our efforts in intensifying deseasonalisation, increasing product types, enhancing and upgrading product packaging and design, optimising and expanding our distributor network, strengthening brand competitiveness, and implementing online and offline advertising and promotion for our products with different positioning, in order to boost the Group’s revenue and profitability. Looking forward, under a strong and stable business foundation, together with the smooth and gradual progress in the agriculture collaboration project with Sichuan Development, and expected increase in overall capacity of the Group, we will continue to integrate diverse merger and acquisition, and inherent growth strategies to consolidate our position as a market leader. Having entered into the strategic cooperation with SC Foods from Japan in mid-2019, we will continue to promote quality agricultural products and related processed food products to the global market and to reward shareholder and investors with brilliant results.”

About Sichuan Development Holding Company Limited
Sichuan Development Holding Company Limited is a late model state-owned enterprise in the PRC. It is a wholly-owned company of the Sichuan Provincial People’s Government. The level of its consolidated assets exceeds RMB1 trillion. It is one of the largest state-owned enterprises in Sichuan Province, and mainly engaged in financing, investment, and asset management. Its business scopes include transportation, energy, finance, mining, infrastructure and real estate, modern services, and strategic emerging industries.

About Tianyun International Holding Limited (Stock Code: 6863.HK)
Tianyun International Holdings Limited (the “Company”) and its subsidiaries (collectively referred to as the “Group”) are principally engaged in (i) the production and sales of processed fruit packaged in metal containers, plastic cups, glass containers and aluminium foil bags and ii) trading of fresh fruit. Processed fruit products are sold both under our own brands and on an OEM basis.

The Group has been consistently committed to provide healthy and safe products to its customers. As one of the food enterprises with the most complete quality certifications, we have been continuously dedicated to adhering to stringent international production standards and are accredited with BRC (A), IFS Food (High), FDA, HALAL, SC, KOSHER, BSCI and ISO22000,etc. in respect of our production facilities, quality control and management. The Group has also passed the internal food production standard reviews and audits from several the UK and US supermarket chain. At the same time, in China, as a “Equal production line; Equal standard; Equal quality” food production and export enterprise, the Group has been supplying products of equivalent quality to domestic and international markets. Since 2016, the Group’s own brand processed fruit products have continued to obtain a high degree of market recognition, and became the first fruit processor in China’s fruit processing industry to place the “Zero Added Preservatives” label on its products.

The Group was awarded 2017 China’s Most Promising Listed Companies by the internationally renowned financial magazine Forbes and became an integrated food production and sales enterprise in Linyi City, Shandong Province, which was awarded the “2017 Linyi Mayor Quality Award”. The Group’s newly researched and developed pure fruit snack food also received the “Certificate of Invention Patent” from the State Intellectual Property Office of the People’s Republic of China in 2018.

For more information, please visit www.tianyuninternational.com or https://v.douyin.com/v2de9w/

Hi Sun Tech Announces 2019 Annual Results: Adjusted Net Profit Increases 32% to HK$713 million

Undertake the Task of Advancing Industry Digitalisation,
Actively Lay out Multidimensional Business Development

A leading payment & finance solutions provider in China, Hi Sun Technology (China) Limited (the “Company”; Stock code: 818.HK), announced the audited consolidated results of the Company and its subsidiaries (the “Group”) for the twelve months ended 31 December 2019 (the “Year”).

Results Highlights
1. During the Year, the Group’s payment processing solutions segment continued to maintain a steady and solid increase, with annual accumulative transaction volume exceeded RMB1,760 billion in 2019, and the total number of transactions increased by 129% as compared with last year, driven by the rapid growth of mobile QR code payment transactions.
2. While pursuing performance growth, the Group adhered to compliance development and looked to the wider international market. During the Year, the Group have successfully brought in the strategic investment from EQT, which speeded up the overseas expansion strategy.
3. The Group will continue to integrate advanced technologies into its services, export the digital empowerment advantage in data and scenarios, and solve the urgent digital transformation demands of medium, small, and micro companies.

During the Year, the Group’s consolidated revenue reached HK$5,576.0 million, representing an increase of 20% when compared with HK$4,662.0 million for the same period last year. The Group’s operating profit was HK$578.2 million, representing an increase of 124% when compared with HK$258.5 million for the same period last year. Profit for the year was HK$683.0 million, representing an increase of 102% when compared with HK$337.3 million for the same period last year. The increase in profit was mainly contributed by the increase in segmental profit from the payment processing solutions segment, and the absence of share option expenses of approximately HK$195.3 million under the segment in 2018. Adjusted profit for the year was HK$713.3 million, representing an increase of 32% when compared with the same period last year. Basic earnings per share for profit attributable to the equity holders of the Company increased 105% to HK$0.205.

Strengthening Technical Barriers, Helping Small and Micro Companies with Digital Upgrades
During the Year, the Group’s payment processing solutions business continued to grow steadily. The segmental turnover amounted to HK$4,672.6 million, representing an increase of 25% when compared with the same period last year; the segmental operating profit amounted to HK$696.5 million, representing an increase of 75% when compared with the same period last year. In 2019, VBill OPCO (“VBill”), a subsidiary of the Group primarily engaged in its payment processing business, has 3.5 million accumulated active domestic merchants with the cumulative transaction volume exceeded RMB1,760 billion for the Year. The total number of transactions increased 129% to 0.9 billion transactions, contributed mainly by the rapid growth of mobile QR code payment transactions.

With offline-based payment scenarios becoming much more complicated, and payment needs becoming much more diverse, VBill has been focusing on offline-based scenarios, continuously innovating technologies and upgrading service models; integrating 5G, blockchain, artificial intelligence, and other advanced technologies in its services; and comprehensively helping small and micro companies with digital and intelligent transformation. The strategy has thus far achieved remarkable results despite fierce industry competition.

Basing on Local and Prospecting Globally, Actively Pursuing Multidimensional Business Development
The repaid development of cross-border e-commerce has introduced wider development prospects for the cross-border payment industry. During the Year, the Group has obtained the Hong Kong Money Service Operation (“MSO”) license that laid the foundation for cross-border payment business. Moreover, the Group has successfully brought in the strategic investment from EQT. EQT has distinct achievements in the aspects of finance and payment, the Group considered that the addition of EQT will speed up VBill’s overseas strategy. In the future, the Group will explore the wider international market, and is committed to offering less costly, more efficient and diversified payment and fintech services to a wider user base.

Facing a complex external environment and fierce market competition, the Group’s other fundamental business segments made steady progress during the Year. During the Year, the performance of the Group’s information security chips and solutions segment remained similar to last year. Research and development projects are progressing smoothly, and cost reduction initiatives of various products are rolling out in an orderly manner. In terms of platform operation solutions, the Group continued the provision of operational supporting services to three bases of China Mobile. As the biggest operational supporting partner of China Mobile Financial Technology Co., Ltd., the Group expected to strengthen its strategic cooperation in integrated payment, featured e-commerce, and fintech business with China Mobile, and to expand its business outside the communications industry. The Group’s financial solutions segment also maintained a steady development, and established project developments and production were completed. The Group won the bid for the special project of constructing a new generation decentralized core business system for the Bank of Guizhou, also achieved business breakthrough in Southeast Asia market, and won the bids for special projects of constructing core business systems for one big state-owned bank in Laos and one newly-established bank in Malaysia. The performance of the Group’s electronic power meters and solutions improved, and the Group managed to win more bids in the State Grid’s unified tender during the Year.

The Group commented, “In 2020, the sudden outbreak of CONVID-19 disrupted the orderly rhythm of many industries, and it is a heavy blow to traditional industries that rely heavily on offline operations. As the domestic epidemic prevention and control situation gradually improves, the work and production in various industries will resume. Many SMEs are beginning to realize their own shortcomings in daily operations, and hope to recover as soon as possible. The Group believes that the Internet is now penetrating into more offline scenes. After taking the “epidemic test”, it will become an opportunity for small, medium, and micro enterprises to reflect, grow, and transform. Digital construction will become a new development direction. Through the application of cutting-edge technology such as cloud computing, big data, and blockchain, the Group will be committed to assisting the digital and intelligent transformation of small, medium, and micro enterprises, and contribute to the Internetization of traditional enterprises.”