HONG KONG, Aug. 28 2015 /PRNewswire/ -- Kong Sun Holdings Limited ("Kong Sun" or the "Company", SEHK stock code: 295, which together with its subsidiaries is hereby referred to as the "Group"), which invests in and operates photovoltaic ("PV") power stations, today announces its unaudited interim results of the Group for the six months ended 30 June 2015 ("the Period").
Results and business highlights for the first half of 2015:
-- Turnaround achieved for the interim results:
-- Total installed capacity of grid-connected PV projects reached 219.5 MW with quality projects in the pipeline:
-- Financial position remained healthy:
Results & Financial Summary:
Thanks to the encouraging performance of the solar energy related businesses, the Group's turnover soared significantly by 166.2 times from approximately RMB2.5 million for the first half of 2014 to approximately RMB414.0 million for the first half of 2015. Gross profit surged by 118.8 times and reached RMB73.3 million. Profit for the Period amounted to RMB 3.2 million, which would have been approximately RMB28.7 million if the major non-cash items were excluded, against the loss of RMB1.8 million for the first half of 2014.
For the first half of 2015, the Group recorded revenue of approximately RMB45.5 million from the sales of electricity (includes tariff adjustment). In addition, the Group generated revenue of approximately RMB366 million from the sales of solar energy related products. During the Period, revenue from the solar energy businesses accounted for 99.3% of the Group's total turnover.
As at 30 June 2015, cash and cash equivalents amounted to approximately RMB1.154 billion. Loans and borrowings from banks, corporate bonds and others amounted to RMB780 million only.
Business Review:
Since 2014, the Company has proactively engaged in the development and investment of photovoltaic power plants and has become one of the key photovoltaic power plant operators in the PRC. For the first half of this year, the Group acquired two grid-connected PV power plants, one in Hejing of Xinjiang and one in Lanzhou of Gansu, with combined installed capacity of 69.5 megawatts ("MW"). In addition, the Group had built four other new grid-connected PV power plants by itself with total installed capacity of 80 MW in Yingjisha, Kuche, Wushi and Makit County respectively in Xinjiang. All PV power plants brought the Group's total grid-connected installed capacity to 219.5 MW.
The Group will continue to expand its PV power plant business through acquisition and self-construction. Currently, the Group owns 7 new PV power plants which are under development and will have combined maximum installed capacity of 500 MW. Besides, the Group is also in discussion with the business partners of the PV power plants to explore the possibilities of other mergers and acquisitions.
To step up its efforts on PV power plant construction and diversify its revenue stream, the Group entered into a memorandum of understanding on 12 July with the aim of acquiring a developer of businesses related to development of PV power station projects and manufacture and sale of wind-solar hybrid street lights.
Future Plans & Prospects:
From January to June this year, China added 7.73 gigawatts of photovoltaic installed capacity, which was 134% more than the added capacity for the corresponding period of 2014. This shows that the photovoltaic power generation sector is experiencing rapid growth in the PRC. Looking ahead to second half of 2015, the Group is confident about attaining the accumulated installation capacity target of 1,200 MW by the end of 2015.
Dr. Liu Wen Ping, Executive Director of Kong Sun, said, "Thanks to the development of PV power plant business, our results were encouraging and performed well in the first half. Moreover, the Group successfully completed several fund-raising exercises during the Period, thus further strengthened its financial capability and improved cash flow position. This has laid a strong foundation for the Group's development and enhanced its competitive edge in executing its strategic plans to acquire and develop photovoltaic power plants in the PRC. Looking ahead to the future, the Group will continue to increase its investment in photovoltaic power plants and will be discussing actively with stakeholders of photovoltaic power plants over potential acquisitions, with the aim of becoming a leading photovoltaic plant operator in China. Leveraging the strong execution capability and management experience, we are confident of capturing the best investment opportunity and generating attractive returns to our shareholders"
About Kong Sun Holdings:
Kong Sun principally engages in the investment and operation of photovoltaic power station projects across various provinces and regions of China. It currently owns grid-connected projects in Hami, Yingjisha, Kuche, Wushi, Hejing, Makit County and Artux of Xinjiang, Yumen, Jiuquan and Lanzhou of Gansu, as well as several photovoltaic power plants under development across China.
In addition, since 2014, Kong Sun has entered into a number of memorandum of understanding and agreements for the investment in and development of photovoltaic power plants in Gansu, Hebei, Inner Mongolia, Anhui, Yunnan and Xinjiang provinces of China.
Kong Sun is a constituent of Morgan Stanley Capital International ("MSCI") Global Small Cap Indexes – Hong Kong.
