Hong Kong, Mar 27, 2009 - (ACN Newswire) - GCL-Poly Energy Holdings Limited ("GCL-Poly" or the "Company", stock code: 3800, together with its subsidiaries, the "Group"), a leading integrated environmentally friendly energy enterprise in the PRC, announced its audited annual results for the year ended 31 December 2008 (the "year under review").
During the period under review, turnover of the Group reached RMB3,693 million in 2008, increased by 100.2%, against approximately RMB1,845 million recorded in the same period of 2007. EBITDA recorded in the year under review increased by 60.7%, grew from approximately RMB448 million in the same period of 2007 to approximately RMB720 million. Profit for the year reached RMB180 million against a loss of RMB212 million recorded in 2007. Profit attributable to shareholders amounted to approximately RMB131 million, compared to a loss of RMB267 million in the same period of 2007. Basic earnings per share amounted to RMB0.14. In addition, The Board of Directors recommended the payment of a cash dividend of RMB2.3 per share, representing a dividend payout ratio of 15% for the year ended 31 December 2008.
Mr. ZHU Gong Shan, Chairman and Executive Director of GCL-Poly said, "The year 2008 is the first fiscal year of GCL-Poly after its successful listing in Hong Kong, as well as an extraordinary year for the Group. Despite a series of unfavorable factors such as continual and substantial increase in coal prices and economic slowdown, we were able to achieve satisfactory performance as a result of our dedicated efforts."
The Company has achieved rapid business expansion and revenue growth through a series of assets acquisitions and capacity expansion of the existing power plants at the end of 2007 and early 2008. For the year ended 31 December 2008, the total installed capacity in commercial operation (including associated power plants) increased by 20.7%, amounted to 1,050 MW against 870 MW in the previous year, while the steam extraction capacity (including associated power plants) jumped by 12.3% from 1,994 tonnes per hour to 2,239 tonnes per hour. Attributable installed capacity in commercial operation reached 697.8 MW, up by 17.4% year-on-year, against 594.3 MW in the previous year, while attributable steam extraction capacity of the Group increased by 12.4%, reaching 1,756.4 tonnes per hour against 1,562.4 tonnes per hour in the previous year.
Most importantly, the Group achieved encouraging results in profitability amid the sluggish operating environment in the power generation industry and hiking coal price. Such outstanding results were mainly attributable to the Group's diversified development strategy with a focus on environmentally friendly and renewable energy over the past decade. Apart from the environmentally friendly cogeneration plants that are fuelled by coal, the Group has its own gas-fired cogeneration plants, renewable biomass-fired cogeneration plants and municipal solid waste incineration plant. Such plants accounted for almost half of the attributable installed capacity of the Group, which were the main growth drivers of the Groups profitability in 2008 under the adverse impact of the substantial surge of coal price.
Meanwhile, the outstanding execution capability of the Group's management team was another indispensable element for GCL-Poly to achieve such remarkable results. In view of the skyrocketing coal prices, the Group's management team adopted a series of timely and efficient measures, which has been successful in boosting revenue and controlling expenses. On one hand, the Group ensured high fulfillment rate of contracted coal and increased proportion of usage in low-priced coal sludge with low heating value, resulted in the increase of average unit cost of coal consumption in 2008 by only 26.7% year-on-year, considerably lower than the rate of coal price increment in the market. On the other hand, the Company endeavored to develop its business of steam supply and accelerate the implementation of coal-steam price pass-through mechanism. In 2008, the sales volume of steam and the average steam price both recorded substantial growth, therefore contributed to an increase of revenue from steam sales of RMB453 as compared to the same period last year.
GCL-Poly persisted in the development of environmental friendly and renewable energy in 2008. In January 2008, the Group acquired 49% equity interest in China Resources Xiexin (Beijing) Cogeneration Co., Ltd., to further expand the proportion of gas-fired cogeneration plants in the Groups business portfolio. In March 2008, the Company acquired 100% equity interest in Xilingol Guotai Wind Power Generation Co., Ltd., which marked the first step of the Company into wind power industry.
In view of the significant fluctuation in coal price and the risks associate with coal supply, the Group acquired 55% equity interest in the Duolun Coal Mine in Inner Mongolia Autonomous Region in August 2008.
Looking ahead, the Year 2009 presents both challenges and opportunities. On the one hand, the fall in coal prices and the decrease in interest rate of bank loans will help the Group to mitigate its cost pressure in fuel and financial expenses. On the other hand, economic slowdown and its adverse impact on market demand for electricity and steam will inevitably hinder the business growth of the Group.
Facing both opportunities and challenges, GCL-Poly will proactively adopt effective measures in order to control the unit operation cost, pursue steam market expansion and stabilize steam price. On the other hand, the Group will also execute plans to restructure assets portfolio of its power plants. Such measures will lay a sound foundation for the sustainable growth of the Group.
Mr. ZHU concluded, "Year 2009 presents both challenges and opportunities, but opportunities will surpass those challenges. Following the implementation of massive stimulus package initiated by the PRC Government, we believe that market demand for power and steam will stabilise and eventually increase in the foreseeable future, while coal price and interest rate may have experience to further decline. We are confident towards our business development in 2009 and will actively seek for acquisition opportunities in assets related to environmentally friendly and renewable energy, in order to maintain our leading position in the environmentally friendly and renewable energy industry in the PRC."
About GCL-Poly Energy Holdings Limited
GCL-Poly Energy Holdings Limited is a world leading polysilicon manufacturer for the solar industry and a leading integrated green energy enterprise in China. Production capacity of GCL Solar, a subsidiary of the Group, is expected to reach 18,000 metric tonnes of polysilicon by the end of 2009, and 1 GW of solar wafers by mid 2010. In addition, the Group operates a total of 18 cogeneration power plants, 1 incineration power plant and 1 windpower plant. Most of these plants are located in Jiangsu and Zhejiang provinces with strong economic growth and robust demand for electricity and steam. All these plants are advocated and encouraged by Chinese government.
For more information about GCL-Poly, please visit the company's website at www.gcl-poly.com.hk.
Contact:
GCL-Poly Energy Holdings Limited:
Mr. Zhou Jiangbo
Tel: (852) 37613138
Email: zhoujiangbo@gcl-power.com.hk
Porda International (Finance) PR Company Limited
Ms. Harriet Lau
Tel: (852) 3150 6761
Email: harriet.lau@pordafinance.com.hk
Ms. Sharis Siu
Tel: (852) 3150 6771
Email: sharis.siu@pordafinance.com.hk
Ms. Ada Leung
Tel: (852) 3150 6732
Email: ada.leung@pordafinance.com.hk
Fax: (852) 3150 6728
Mar 27, 2009
Source: GCL-Poly Energy Holdings Limited
GCL-Poly Energy Holdings Limited
From the Japan Corporate News Network
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