Zhonghua Gas Holdings Limited (the “Company”; Stock Code: 8246) together with its subsidiaries (collective namely the “Group”) today announces that the completion of the Subscription Agreement of the issuance of the three-year convertible bonds in the aggregate principal amount of HK$97,800,000. The bond Subscriber is the wholly-owned subsidiary of Kai Yuan Holdings Limited (Stock Code: 1215). The net proceeds are intended to be used for the enhancement of the existing business of the Group and working capital.
The Board of Directors considers this move presents an opportunity for the Group to strengthen its financial position while optimizing its investor and capital base. It will also set a good foundation for further strategic alliance with the Subscriber. Therefore, the Group is optimistic towards the prospects of the Group.
Kai Yuan Holdings Limited, a company listed on the Main Board of the Hong Kong Stock Exchange, is principally engaged in investment holding. One of its substantial shareholders is renowned Chinese entrepreneur Mr. Du Shuang Hua, who was ranked 65th in the Hurun Rich List of 2019. He has extensive businesses covering industries in steel manufacturing, logistics, banking and properties development in the PRC. The subsidiary companies of Kai Yuan are principally engaged in hotel operation and money lending business.
The convertible bonds represent approximately 10.00% of the existing issued share capital of the Company as at the date of completion and approximately 9.09% of the issued share capital of the Company as enlarged by the issue of the Conversion Shares. The Company has a total of 3,622,136,000 Shares in issue. The initial Conversion Price of HK$0.27 (subject to adjustments) per Conversion Share.
Zhonghua Gas Holdings Limited
Zhonghua Gas Holdings Limited is principally engaged in provision of diverse integrated new energy services including technological development, construction and consultancy services in relation to heat supply and coal-to-natural gas conversion, supply of liquefied natural gas, coupled with trading of new energy related industrial products. The Group is also engaged in the property investment business.
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Angel Yeung
Jovian Communications Ltd
Tel: +852 2581 0168
Email: news@joviancomm.com
Tag: Zhonghua Gas Holdings Limited
Zhonghua Gas Holdings Limited Proposed Issue of Convertible Bonds in the Principal Amount of HK$97,800,000
Zhonghua Gas Holdings Limited (the “Company”; Stock Code: 8246) together with its subsidiaries (collective namely the “Group”) today announces that on 2 November 2020 (after trading hours), the Company entered into Subscription Agreement with the wholly-owned subsidiary of Kai Yuan Holdings Limited (Stock Code: 1215) (“the Subscriber”), pursuant to which the Company has conditionally agreed to issue and the Subscriber has conditionally agreed to subscribe for the three-year Convertible Bonds in the aggregate principal amount of HK$97,800,000. The initial conversion price is HK$0.27 each (subject to adjustments).
As at the date of this announcement, the Company has a total of 3,622,136,000 Shares in issue. Assuming there is no further issue or repurchase of the Shares, based on the initial Conversion Price of HK$0.27 per Conversion Share and assuming full conversion of the Convertible Bonds took place, the Convertible Bonds will be convertible into 362,222,222 Conversion Shares, representing approximately 10.00% of the existing issued share capital of the Company as at the date of this announcement and approximately 9.09% of the issued share capital of the Company as enlarged by the issue of the Conversion Shares. The net proceeds are intended to be used for the enhancement of the existing business of the Group and working capital.
The Board of Directors believes that through issuing a convertible bond, it presents an opportunity for the Group to strengthen its financial position while optimizing its investor base and capital base. It will also set a good foundation for further strategic alliance with the Subscriber. Thus, the Group is optimistic towards the prospects of the Group.
Kai Yuan Holdings Limited is principally engaged in investment holding. One of its substantial shareholders is renowned Chinese entrepreneur Mr. Du Shuang Hua, who was ranked 65th in the Hurun Rich List of 2019. He has extensive businesses covering industries in steel manufacturing, logistics, banking and properties development in the PRC. The subsidiary companies of Kai Yuan are principally engaged in hotel operation and money lending business.
Zhonghua Gas Holdings Limited
Zhonghua Gas Holdings Limited is principally engaged in provision of diverse integrated new energy services including technological development, construction and consultancy services in relation to heat supply and coal-to-natural gas conversion, supply of liquefied natural gas, coupled with trading of new energy related industrial products. The Group is also engaged in the property investment business.
Media Contacts:
Angel Yeung
Jovian Communications Ltd
Tel: +852 2581 0168
Email: news@joviancomm.com
Zhonghua Gas Holdings Limited Announces First Quarter Results for the Three Months Ended 31 March 2020
Profit Attributable to the Owners of the Company from Continuing Operations Amounted to HKD2.9 million
Zhonghua Gas Holdings Limited (the “Company”; Stock Code: 8246) together with its subsidiaries (collective namely the “Group”) today announces that the first quarter results for the three months ended 31 March 2020 (“the Current Period”). During the period, the Group’s business has been seriously impacted by the Novel Coronavirus Disease (“COVID-19”). The total revenue from continuing operations recorded was reduced to HKD75.10 million, representing a 29.5% decrease in revenue year-on-year, from HKD113.6 million. The gross profit ratio and net profit after tax dropped by 22.2% and 72.5% respectively comparing with those of the Previous Period. The New Energy Business contributed over 99.8% to the Group’s total revenue. Profit attributable to the owners of the Company from continuing operations decreased by 76.1% to HKD2.9 million compared to the Previous Period. The basic and diluted earnings per share for the Current Period were both HKD0.08 cents, as compared with HKD0.36 cents for the Previous Period.
The decrease in revenue was mainly caused by the outbreak of COVID-19 which led to the imposition of various travel and work restrictions by the relevant government administrations which unavoidably caused serious impact on the Group’s normal business operations such as client meetings, contract negotiation and progresses on the completion of new projects. As a result, the only source of revenue earned for the first three months of this year was from the supply of LNG that has a thinner gross profit margin than that of construction related and consultancy works.
Regarding the development on LNG business, the Group endeavored to strengthen LNG supply during the heat supply period. The 60:40 Joint Venture that the Group set up with Shanghai Jiulian Group enabled the Group to secure stable supply of LNG resources and expand its business to the high potential market in the Yangtze River Delta region. The Joint Venture will be principally engaged in sale of LNG, engineering of LNG pipeline, sale, installation, maintenance of LNG delivery equipment, technology development, consulting and transfer of heating system, technology development of new energy, etc. Meanwhile, the Group continued to maintain solid relationship with Tractebel Engineering S.A. from France and Tianjin Jinre Heat-Supply Group Co. Ltd in technological and infrastructure related business.
Looking forward, the Group will stay alert on the market and continue to keep a close watch on the development of COVID-19 while implementing timely measures to mitigate any possible business risks and minimize losses.
Zhonghua Gas Holdings Limited
Zhonghua Gas Holdings Limited is principally engaged in provision of diverse integrated new energy services including technological development, construction and consultancy services in relation to heat supply and coal-to-natural gas conversion, supply of liquefied natural gas, coupled with trading of new energy related industrial products. The Group is also engaged in the property investment business.
Media Contacts:
Angel Yeung
Jovian Communications Ltd
Tel: +852 2581 0168
Email: news@joviancomm.com
Zhonghua Gas Holdings Limited Announces Results for the Nine Months Ended 30 September 2019
Zhonghua Gas Holdings Limited (the “Company”; Stock Code: 8246) together with its subsidiaries (collective namely the “Group”) today announces that the results for the nine months ended 30 September 2019 (“the Current Period”). For the Current Period, total revenue from continuing operations recorded a stable year-on-year increase of over 38.2% from HK$186.5 million to HK$251.4 million. Contribution from the New Energy Business has taken up over 99.8% of total revenue for the both period in 2018 and 2019. Profit attributable to the owners of the Company slightly dropped by 0.7% to HK$37.9 million as compared to the Corresponding Period. Basic and diluted earnings per share for the Current Period were HK$1.08 cent (2018: HK$1.11 cent) and HK$1.06 cent (HK$1.10 cent) respectively.
During the Current period, revenues were primarily generated from Liquefied Natural Gas (“LNG”) supply and consultancy services in new energy related construction work which accounted for approximately 67.6% and 32.2% of the Group’s total revenue respectively.
Entering the last quarter of 2019, the Group is executing strategic plans to expand the business scope and scale of the LNG supply business which has been growing to be one of the key revenue drivers since late 2018. The Group hope to seize further business expansion with extra efforts placed in LNG supply to reach out beyond Tianjin to any potential regions in the PRC; via working closely with local and international LNG suppliers for achieving a diversified product portfolio; and setting up new joint ventures to reinforce LNG supply during the heat supply period and enhance our capability through mergers and acquisitions to cater to any future business needs.
The Group has signed a Memorandum of Understanding (“MOU”) with Shanghai Jiulian Group (the “Jiulian Group”) on cooperation in area of LNG in October 2019 to form a 60:40 Joint Venture to co-explore end users market in Yangtze River Delta region for maximizing the edges of LNG resources of Jiulian Group while end users resources of the Group. This cooperation enables the Group to expand the scope of its LNG business, and secure the supply of LNG resources, and expand its business to the high potential market in the Yangtze River Delta region. Jiulian Group is a wholly owned subsidiary of Shenergy (Group) Co., Ltd. (the “Shenergy Group”) which is a Top 500 enterprises in the PRC and a member company of State-owned Assets Supervision and Administration Commission of Shanghai (“Shanghai SASAC”). Shenergy Group is an investor and contractor for Shanghai’s major energy infrastructure as well as supplier for major energy including electricity and gas. In 2018, the scale of its LNG operation reached 9 billion cubic meters, accounting for more than 90% of the market share in Shanghai.
The Group also intends to identify opportunities to develop the construction related and consultancy business, which is also one of the Group’s major revenue of sources currently. It will always continue to look for opportunities to venture into business relating to New Energy Business in order to expand the business and market coverage and ultimately to build it into a leading diversified and integrated new energy service provider in the Greater China Region.
Zhonghua Gas Holdings Limited
Zhonghua Gas Holdings Limited is principally engaged in provision of diversified and integrated new energy services including technological development, construction related and consultancy services in relation to heat supply and coal-to-natural gas conversion, supply of Liquefied Natural Gas, coupled with trading of new energy related industrial products. The Group is also engaged in the property investment business.
Media Contacts:
Angel Yeung
Jovian Communications Ltd
Tel: +852 2581 0168
Email: news@joviancomm.com
Zhonghua Gas Holdings Limited Announces Signed MOU on LNG Cooperation with Shenergy (Group)’s Wholly-Owned Subsidiary Shenergy Jiulian Group
Zhonghua Gas Holdings Limited (the “Company”; Stock Code: 8246) together with its subsidiaries (collective namely the “Zhonghua Gas”) today announces that it has signed a Memorandum of Understanding (“MOU”) with Shanghai Jiulian Group Co., Ltd (namely the “Shenergy Jiulian”), a wholly-owned subsidiary of Shenergy (Group) Co., Ltd. (collective namely the “Shenergy Group”) on cooperation in area of Liquefied Natural Gas (“LNG”).
Zhonghua Gas and Shenergy Jiulian cooperate to form a 60: 40 Joint Venture (“JV”) to co-explore end users market in Yangtze River Delta region for maximizing the edges of LNG resources of Shenergy Jiulian while end users resources of Zhanghua Gas. The JV will be principally engaged in sale of LNG, sale of LPG, engineering of LNG pipeline, sale, installation, maintenance of LNG delivery equipment, technology development, consulting and transfer of heating system, technology development of new energy, etc.
Zhonghua Gas intends to integrate the gas supply business of its existing customer resources in the Yangtze River Delta, such as existing point-to-point supply of LNG, decentralized energy, direct supply of industrial LNG, vehicle and ship refueling etc., into the LNG sales channel and business of the JV, and constantly expand the business scope of the JV and improve the market share. It will also be responsible for obtaining the qualification, license, permits, and approval for the JV to be engaged in LNG storage, transportation, sales and other related businesses as soon as possible.
Shenergy Jiulian as the LNG supplier for the JV will guarantee the sufficiency and stability of LNG supply and give necessary supports for the respective businesses of the JV.
Zhonghua Gas is proud and thrilled to be partnering with Shenergy Jiulian to create the optimal synergy for developing and expanding the LNG business. Shenergy Jiulian is a subsidiary of Shenergy Group which is a Top 500 enterprises in the People’s Republic of China (“PRC”) and a member company of State-owned Assets Supervision and Administration Commission of Shanghai (“Shanghai SASAC”). Shenergy Group is an investor and contractor for Shanghai’s major energy infrastructure as well as supplier for major energy including electricity and gas. It also constructs the “6+1” (West Gas Line 1, West Gas Line 2, Yangshan imported LGN, East Gas, Sichuan Gas, Jiangsu Rudong and fifth trench LNG emergency gas source) LNG multi-gas source protection system and builds a municipal gas business chain integrating with production and procurement, pipeline transportation, sale and supply of LNG. In 2018, the scale of its LNG operation reached 9 billion cubic meters, accounting for more than 90% of the market share in Shanghai.
For Zhonghua Gas, this cooperation on the one hand enables it to expand the scope of the LNG business, on the other hand enables it to secure the supply of LNG resources and to expand its business to the high potential market in the Yangtze River Delta region, and then to expand across the country as it planned.
In addition, Zhonghua Gas plans to build up strong relationships with new partners in order to cater future needs and foster further business opportunities. Zhonghua Gas will always continue to look for opportunities to venture into business relating to New Energy business in order to expand its business and market coverage and ultimately to build it into a leading diversified and integrated new energy service provider in the Greater China Region.
Shenergy (Group) Co., Ltd.
Shenergy (Group) Co., Ltd. is a wholly state-owned enterprise which is funded and supervised by the Shanghai SASAC. It is formerly known as Shenneng Electric Power Development Company, which was founded in 1987 and restricted as a group company in 1996 with registered capital of RMB 10 billion. It currently owns more than ten second-level wholly-owned and controlled subsidiaries including Shenergy Company Ltd. (SH 600642), Shanghai Gas Group and Orient Securities (SH600958). As at the end of 2018, the company ranked among the top 500 Chinese companies for 17 consecutive years. It is an investor and contractor for Shanghai’s major energy infrastructure as well as supplier for major energy including electricity and gas. It also constructs so-called 6+1 (West Gas Line 1, West Gas Line 2, Yangshan imported LGN, East Gas, Sichuan Gas, Jiangsu Rudong and fifth trench LNG emergency gas source) LNG multi-gas source protection system and builds a municipal gas business chain integrating with production and procurement, pipeline transportation, sale and supply of LNG. In 2018, the scale of its LNG operation reached 9 billion cubic meters, accounting for more than 90% of the market share in Shanghai. Shenergy Group shoulders the responsibility of ensuring the energy security supply of Shanghai and promoting the adjustment and optimization of the city’s energy structure. In recent years, it has promoted the development of clean energy and the expansion of the energy industry chain. It has been involved in new business areas such as wind power and solar power generation, natural gas power generation, decentralized energy supply, power plant energy conservation technology, energy trade, and new energy venture capital funds, and has actively implemented power plants. Desulfurization, denitrification and other initiatives have made positive contributions to low-carbon development and energy conservation and emission reduction in Shanghai.
Shanghai Jiulian Group Co., Ltd.
Shanghai Jiulian Group Co., Ltd. was formally established on January 18, 2000. It is a wholly-owned subsidiary of Shenergy (Group) Co., Ltd. It was formed by the merger of the former Shanghai Commodity Exchange, Shanghai Metal Exchange and Shanghai Grain and Oil Commodity Exchange. Its principal businesses include oil trading agents, futures brokerage, investment management, delivery warehouse management, spot commodity trading, information technology, and property management, etc. It closely links with the major business of Shenergy Group and adheres to the development direction of energy factor market construction, financial investment and commercial real estate business. At present, its business scope is investments, domestic trading (except national special regulations) and other related consulting services, information technology services as well as cargo import and export business.
Zhonghua Gas Holdings Limited
Zhonghua Gas Holdings Limited is principally engaged in provision of diversified and integrated new energy services including technological development, construction related and consultancy services in relation to heat supply and coal-to-natural gas conversion, supply of Liquefied Natural Gas, coupled with trading of new energy related industrial products. The Group is also engaged in the property investment business.
Media Contacts:
Angel Yeung
Jovian Communications Ltd
Tel: +852 2581 0168
Email: news@joviancomm.com
Zhonghua Gas Holdings Limited Announces Audited Results for the Six Months Ended 30 June 2019
Profit Attributable to Owners Increased 81.5% to HK$37.0 Million
Zhonghua Gas Holdings Limited (the “Company”; Stock Code: 8246) together with its subsidiaries (collectively the “Group”) today announces that the audited results for the six months ended 30 June 2019 (“Current Period”). Total revenue from the continuing operation recorded a 122.3% year-on-year increase from HK$112.7 million to HK$240.0 million in the Current Period. Net profit after tax showed an outstanding growth of over 74.5% to HK$44.1 million and profit attributable to the owners of the Company recorded over 81.5% increase to HK$37.0 million as compared to the Corresponding Period. Basic and diluted earnings per share for the Current Period were both HK$1.0 cent, as compared to both HK$0.6 cent in the Corresponding Period.
The growth was driven by a surge in revenue from the New energy business, primarily brought by the trading of Liquefied Natural Gas (LNG). The Group recorded contribution from the New energy business to total revenue 99.9% for the both period in 2018 and 2019, reflecting its important role in the operations. Gross profit of the New energy business dropped due to a thinner gross profit margin of LNG trading business compared to that of construction related and consultancy services.
During the Current Period, the Group has successful completed business restructuring following the completion of the disposal of the catering business on 30 April 2019, and will continue to remain focused on developing and expanding the New energy business with an objective to maximize the profitability of the Group. The cooperation with one of the world’s largest engineering and consultancy company, Tractebel Engineering S.A. (“Tractebel”), Tianjin Jinre Heat Supply Group Co. Ltd. (“Jinre Group”) also allowed the Group to explore and expedite further collaboration with top industry players in fields of technological and infrastructure-related business.
Looking forward, the Group will continue to strive to actively expand in the LNG trading segment. In order to firmly grasp future business expansion in the sector, not only will the Group step up the efforts in LNG trading in existing operating locations, but also eye on developing the LNG trading business in other potential regions in the PRC and extend our footprints worldwide. Identifying suitable LNG suppliers locally and globally and delivering LNG products will be of the Group’s first priority in near future.
The Group also aims to build up strong relationship with new partners in order to cater to future needs and foster further business opportunities. The Group will also pursue long term cooperation with our key partners to diversify our business scope and enhance services, while seeking for collaboration projects in possible areas of LNG trading. It will also put its focus on capturing and developing new consultancy projects as it is one of its current major revenue sources.
The Group will always continue to look for opportunities to venture into business relating to New Energy business in order to expand the business and market coverage and ultimately to build it into a leading diversified and integrated new energy service provider in the Greater China Region.
Zhonghua Gas Holdings Limited
Zhonghua Gas Holdings Limited is principally engaged in provision of diversified and integrated new energy services including technological development, construction related and consultancy services in relation to heat supply and coal-to-natural gas conversion, supply of Liquefied Natural Gas, coupled with trading of new energy related industrial products. The Group is also engaged in the property investment business.
Media Contacts:
Angel Yeung
Jovian Communications Ltd
Tel: +852 2581 0168
Email: news@joviancomm.com