HONG KONG, March 20, 2015 /PRNewswire/ --
Results Highlights:
Successfully achieved turnaround & improved profitability:
Solar photovoltaic ("PV") power plant business is key growth driver in 2015:
Maintained solid financial position:
Kong Sun Holdings Limited ("Kong Sun" or the "Company", SEHK stock code: 295, together with its subsidiaries hereby referred to as the "Group"), which invests in and operates PV power stations, today announced the audited consolidated results of the Group for the year ended 31 December 2014.
The turnover of the Group increased by over 70 times from approximately RMB7.4 million for the year ended 31 December 2013 to approximately RMB524.3 million for the year ended 31 December 2014. The gross profit of the Group increased by more than 30 times to RMB49.2 million for the year ended 31 December 2014. The increase in turnover and gross profit was mainly due to the increase in revenue from sales of electricity and solar energy related products. Profit for year amounted to approximately RMB11.7 million. As at 31 December, cash and cash equivalents amounted to approximately RMB1.0 billion.
As increasing attention is being paid on clean and renewable energy sector worldwide, the Group decided to invest in PV power plants to diversify its revenue stream. During the year, the Group entered into several MOUs and cooperation agreements on proposed acquisition of or investments in PV power plants in Gansu, Hebei, Anhui, Yunan Province and across China. It had acquired three ground-mounted solar PV power plants which had already been connected to grid and generated electricity revenue for the Group in Xinjiang and Gansu Province, and had seven ground-mounted PV power plants with a total installed capacity of 510 MW under development, within which a majority of the projects would be connected to the grid in the first half of 2015.
In the second half of 2014, the Group generated revenue from sales of electricity for the first time from its PV power plants. For the year ended 31 December 2014, the Group recorded revenue of approximately RMB9.5 million from the sales of electricity (including tariff adjustment). In addition, it generated revenue of approximately RMB508.3 million from the sales of solar energy related products. All revenue from solar PV related businesses represented 98.8% of the Group's total turnover in 2014.
Looking ahead, the Group has positive outlook on PV power plant sector in China. The Strategic Action Plan for Energy Development (2014-2020) issued by the State Council in November 2014 stated that clean and low-carbon energy shall increase as a percentage of energy consumption. It envisioned that the share of renewable energies such as solar and wind energy in electricity consumption shall increase significantly. The government document also stated a goal of having the country's installed PV capacity increase to 100 gigawatts (GW) by 2020. Environmental protection policies remain high on the agenda of the National People's Congress and the Chinese People's Political Consultative Conference. In the Government Work Report 2015, it is stressed that great efforts should be devoted to the development of clean energy sectors, including photovoltaic power generation.
Dr. Liu Wen Ping, Chairman of Kong Sun, said, "The Group marked an important milestone in 2014. We have successfully developed and invested several PV power plant projects and signed cooperative agreements with some well-known business partners. We are confident about the prospect of the investments and market potential of PV power sector for creating a significant business growth in the coming years. We will continue to review our investment portfolio from time to time, and will grasp opportunities to invest in PV power stations to pursue a strong and rapid growth, with the aim of maximizing the returns to our shareholders."
About Kong Sun
Kong Sun was mainly engaged in property investment, sales and manufacturing of life-like plants and securities investment. Starting from 2014, Kong Sun commenced the investment in PV power plant projects. Kong Sun currently owns grid-connected projects in Hami and Yingjisha of Xinjiang, Yuman and Jiuquan of Gansu, as well as several PV power plants under development across China.
