HONG KONG, March 29, 2017 /PRNewswire/ -- Boer Power Holdings Limited ("Boer Power" or the "Company", together with its subsidiaries, "the Group"; Stock Code: 1685.HK), a leading solutions provider for intelligent electrical distribution systems and energy efficiency management in China, is pleased to announce its audited consolidated results for the year ended 31 December 2016 (the "Year").
Being the market leader in China's intelligent power distribution and energy efficiency management, the Group had achieved exceptional results in its core businesses over the past years. Following the fast growth, the management has undertaken to reform in the sought of a sustainable model of the Group's development. The Group shifted the operation and management focus to reforming the factoring business and restructuring the corporate internal management, and put efforts to improve the Group's assets and liabilities structure and cash flow level during the Year 2016. Looking back to the Year 2016, with the adjustment to the operation, management and business model, the collection of the Group's trade receivables continued to perform well and the assets and liabilities structure and operating cash low level also delivered significant improvement during the Year. As at 31 December 2016, the trade receivables, loans to customer, retention receivables, bills receivable and gross amount due from customers from contract work of the Group reduced RMB1,815,652,000 to RMB2,581,711,000. Meanwhile, as at 31 December 2016, the Group's trade payables and bills payable, and bank loans have recorded a substantial decrease to RMB804,699,000 (2015: RMB1,520,775,000) and RMB1,189,513,000 (2015: RMB1,851,562,000) respectively.
2016 was an adjustment year in which the Group undertook for changes. The Group completed the optimization of internal management and monitoring as well as the adjustment of business model in 2016. The management believes that the Group has gone through the most difficult adjustment cycle and that the year 2017 will be the good start for the Group to be well-poised for further development.
The Group saw encouraging signs in the business expansion into data center industry immediately following the start of the year 2017. The Group has reached three major IDC contracts namely GDS Chengdu Data Center - Phase 1 Nanjing Cloud-computing Data Center - Huai, an Data Center, Hefei Shushan High-tech Park Data Center. In addition, the Group has gained the recognition of AB InBev, a Fortune 500 company, again and unfolded the thirteenth cooperation by winning the bid for two projects (Harbin and Mudanjiang plants). The Group has seen a upward trend of sales based on the exceptional sales performance on data centers and long-term customers in the first three months of 2017. 27 March 2017, the Group achieved contract sales amount of approximately RMB 202,379,000, which reaches 44% of the total sales of 2016. Since the beginning of 2017, the Group's sales has started to bottom out and has been on a fast increase. Also, the Group has had abundant contract backlog. As at 31 December 2016, the contract backlog amounted to RMB1,667,299,000, bracing up the growth track in 2017. In addition, the settlement of trade receivables during the first quarter of 2017 falls within our expectation. As at 27 March 2017, the Group received over RMB284,205,000 from customers for settlement of outstanding trade receivables.
During the Year, leveraging on the long-standing brand and technological advantage, the Group's core businesses continued to obtain new orders in the fields of telecommunications, data center, medical services, rail transit, overseas markets and long term foreign customers, and achieved admirable progress in the business expansion of photovoltaic segment.
During the Year, the Group seized the development opportunities of the photovoltaic market in China, promoted the development of photovoltaic business and made its first attempt of the new business model "Build-Transfer". During the year, the Group reached strategic cooperation with Shanghai Industrial in relation with the development, investment and construction of photovoltaic power stations and rooftop distributed power stations with total installed capacity of 100MW in the PRC and the sales of the same to Shanghai Galaxy upon construction as well as the provision of operation and maintenance services. In addition, Shanghai Galaxy intends to acquire the majority of photovoltaic power station assets held by the Group at a consideration of RMB200-300 million, of which the acquisition of 20MW photovoltaic power station of Gannan Longyang was completed in October 2016 and the acquisition of remaining photovoltaic power station assets is progressing orderly. Furthermore, the Group also entered in to a strategic cooperation agreement with AVIC International in relation to the proposed cooperation for the business of development, investment, construction, operation and maintenance of photovoltaic power station.
Leveraging its leading technological strength, quality products and services as well as competitive prices, the Group has established a stable customer base in industries such as rail transit and consumption and maintained long-term cooperation with prestigious enterprises in various industries, and obtained new orders from long-term customers in these industries. During the Year, the Group has won the bids for GDS data center project no. 90 located in Shanghai Waigaoqiao, Qingdao Metro Line 2 Project Phase I, and the relocation project Phase I of AB InBevXuejin (Putian) Brewery Co., Ltd. In addition, "Formosa", an energy management software and energy saving products solution provider under Formosa Plastics Corporation, one of the Fortune 500 companies, signed a strategic cooperation agreement with the Group for an in-depth cooperation in areas such as development of energy efficiency software, sales of energy saving products, design of energy saving plan, consultation of energy saving technology and construction of distributed photovoltaic projects.
For the overseas markets, the "One Belt, One Road" initiative accelerated the implementation of infrastructure construction project in the covered areas and released enormous demands. The Group has captured the opportunities arisen and entered emerging markets such as Bangladesh and Oman.
Mr. Qian Yixiang, Chairman and CEO of Boer Power said, "The year 2016 was a year characterised by adjustments in cautious view of the market trends and the Group's operation. We have undertaken to slow down the business development paces as the Group shifted the operation and management focus on reforming business model, optimizing the corporate internal management, and improving the Group's asset and liabilities structure and cash flow level during this period of adjustment. During the Year, the Group has continued to widen the cooperation with long-term customers and attained new project contracts with a number of long-term customers. In 2016, The Group strived for reform, adjustment and optimization, completed the improvements on internal management and monitoring as well as the adjustments on business model. I believe that the Group has gone through the most difficult adjustment period.
"In 2017, the Group's management and operation focus will return onto business development. The Group will reinforce its sales and business expansion. Looking ahead, save from substantiating our unparalleled core competence in the industry and further enhancing our market shares, we will endeavor to capture the opportunities arisen from the photovoltaic market and speed up our development on photovoltaic business will serve as a strong thrust to bring the Group's performance back onto the growth track. We believe that the year 2017 will be the good start for the Group to be well-poised for further development and are fully confident in our performance in 2017."
About Boer Power Holdings Limited (Stock code: 01685.HK)
Boer Power Holdings Limited provides high-end one-stop integrated electrical distribution system and solution design, manufacturing, sales and other value-added service. The company has nearly 30-years of professional experience and maintain a leading position in China's electrical distribution market with production bases in Wuxi, Yixing and Shanghai. The company's business covers Cloud-managed Service, EDS Solutions, iEDS Solutions, EE Solutions and CSP Business. The company focuses on self-developed intelligent and energy-saving products, and it collects data via Boer's "Smart Cloud" Mega Data Platform and develops comprehensive intelligent and energy saving solutions for various sectors, as well as provides long-term maintenance and consulting services for its customers, so as to further enhance their loyalty and the Group's business stability. Its target market includes industries of medical, telecommunications, data centres, infrastructure and new energy, etc.