omniture

Profit attributable to shareholders and revenue of Zhejiang Tengy increased by 30.1% and 17.7% respectively in 2015

HONG KONG, March 14, 2016 /PRNewswire/ --

Financial Highlights


For the year ended 31 December



RMB '000



2015

2014

Change

Revenue

919,975

781,905

+17.7%

Gross profit

186,576

143,159

+30.3%

Profit before taxation

134,399

100,168

+34.2%

Profit attributable to shareholders

96,465

74,189

+30.0%

Gross margin

20.3%

18.3%

+2%

Basic earnings per share (RMB)

0.90

0.74

+21.6%

The board of directors of Zhejiang Tengy Environmental Technology Co., Ltd (HKEx stock code: 1527, the "Group" or "Zhejiang Tengy") announced its audited results for the year ended 31 December 2015 (the "Year").

For the Year, total revenue and profit of the Group amounted to approximately RMB920.0 million. The increase was mainly benefitted from the implementation of increasingly stringent environmental protection regulations that promoted the growing demand for operations and maintenance services with atmospheric pollution control equipments. The Group's profits attributable to shareholders grew to RMB96.5 million, representing a year-on-year increase of 30.1%. The aforesaid growth is mainly attributable from the operation income increase of 17.7% to RMB920.0 million for the Year.

The Board does not recommend the payment of final dividend for the Year.

Business Review

Revenue

The revenue of the Group amounted to approximately RMB920.0 million for the Year representing an increase of 17.7% from RMB781.9 million for the year ended 31 December 2014. The increase was mainly benefitted from the implementation of increasingly stringent environmental protection regulations that promoted the growing demand for operations and maintenance services with atmosphere pollution control equipments. For example, the New Environmental Protection Law was officially implemented in the PRC on 1 January 2015, and the "Law of the Prevention and Control of Atmospheric Pollution (Revised Bill)" is being proposed to The Standing Committee of the National People's Congress for consideration.

The Group's revenue for the Year was mainly generated from ash transfers construction projects relating to electrostatic precipitator and bag filter precipitator. As a result, the revenue derived from projects relating to electrostatic precipitator and bag filter precipitator were increased from RMB583.0 million and RMB43.1 million for the year ended 31 December 2014 to approximately RMB727.8 million and RMB75.4 million for the Year.

New contracts

For the Year, the value of the Group's new contracts (which represents the aggregate value of the contracts we entered into during a specified period) was approximately RMB852.1 million. As at 31 December 2015, the Group's backlog (including applicable value-added tax) (which represents the total estimated contract value of work that remains to be completed pursuant to outstanding contracts as of a certain date and assuming performance in accordance with the terms of the contract) was approximately RMB1,451.7 million.

Enhanced cost management

At the time of raising the amount of product sales, the Group spent great effort to enhance cost management to make our products and solutions more cost competitive. The atmospheric pollution control solutions offered by our Group mainly comprise the atmospheric pollution control devices designed and manufactured on our own. The Group possesses the qualifications and expertise in manufacture and supply of the key atmospheric pollution control system of the projects undertaken by us based on customised design proposals. The Group is dedicated to improving manufacturing process and management system by managing the product quality and operation, reducing energy consumption and assessing the environmental impact in accordance with international standards. The quantitative management, environmental management and quality management systems of the Group were awarded with a number of ISO certificates. These systems help the company estimate costs, smoothen project operations and improve operating efficiency.

Registered patents

As of 31 December 2015, the Group had 33 registered patents (including two invention patents and 31 utility model patents) in the PRC. Based on the strong design and engineering capabilities, the Group primarily provides comprehensive atmospheric pollution control solutions to our customers. We offer a wide range of models of electrostatic precipitators which support electricity generators with capacity spanning from 6.25MW to over 1000MW. The Group is one of the few manufacturers in the PRC which provides electrostatic precipitators for single generator unit with capacity of 1000MW or above.

Prospects 

On 12 October 2015, the Group was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited ("Stock Exchange"). The net proceeds from the Listing was approximately RMB284.8 million. The Group will actively seek appropriate acquisition projects to expand its capabilities of research and development, manufacturing and sales, as well as to access new markets to complement existing business of the Group.

The Group believes that our established customer base in the PRC and our exposure to overseas markets could help us lay a solid foundation for future expansion in both domestic and overseas markets of the Group and place the Group in an ideal position to capture the growth in any of those markets. Looking forward, the Group will continue to enhance our research and development capabilities, develop new technologies and expand our product portfolio such as ash conveyers, strengthen sales and capture the growing opportunities in the atmospheric pollution control solution industry in the PRC, enhance the Group's national and international brand recognition, as well as develop potential overseas markets to expand our international market share.

Mr. BIAN Yu, Chairman of the Group, said, "With the increasing governmental and public awareness of environmental protection in the PRC, we believe that there will be a vast investment demand for environmental protection in the coming years. The implementation of increasingly stringent environmental protection regulations also promote the rapid development of the environmental protection industry, particularly the industry of operations and maintenance services for atmospheric pollution control facilities. It is anticipated that there will be exponential growth in atmospheric pollution control equipment market in the coming several years. Therefore, as a leading integrated atmospheric pollution control solution provider in the industry, we believe that the Group can continue to be benefited from the aforementioned policies in order to capture new business and investment opportunities."

About Zhejiang Tengy Environmental Technology Co., Ltd

Zhejiang Tengy Environmental Technology Co., Ltd was officially listed on the Main Board of the Stock Exchange (HKEx stock code: 1527) on 12 October 2015. Leveraging around 18 years of industry experience and continual innovation in industrial technologies, it is a well-established integrated atmospheric pollution control solution provider, with a primary focus on particulate emission control by offering mega-sized precipitators to customers in various industries. It is the third largest manufacturer of precipitators in the PRC in 2014 based on total sales amount.

Source: Zhejiang Tengy Environmental Technology Co., Ltd
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