CF Energy Corp., (TSX-V: CFY) (“CF Energy” or the “Company”,
together with its subsidiaries, the “Group”), an energy provider in
the People’s Republic of China (the ”PRC” or “China”), announces
that the Company has filed its unaudited condensed interim
consolidated financial results for the three-month period ended
March 31, 2022.
Results for the three-month period ended
March 31, 2022 (“Q1 2022”)
In millions |
Q1 2022 |
Q1 2021 |
Change |
|
% |
Q1 2022 |
Q1 2021 |
Change |
|
% |
(except for % figures) |
RMB |
RMB |
RMB |
|
|
CAD |
CAD |
CAD |
|
|
Continuing Operations |
|
|
|
|
|
|
|
|
|
|
Revenue |
95.4 |
81.2 |
14.2 |
|
17% |
19.0 |
15.9 |
3.1 |
|
17% |
Gross Profit |
37.3 |
33.6 |
3.7 |
|
11% |
7.5 |
6.6 |
0.9 |
|
11% |
Gross Profit Margin |
39.2% |
41.4% |
-2.2% |
|
|
39.2% |
41.4% |
-2.2% |
|
|
Net Profit |
11.3 |
3.0 |
8.3 |
|
279% |
2.3 |
0.6 |
1.7 |
|
279% |
Adjusted net Profit |
5.3 |
8.9 |
(3.6 |
) |
-40% |
1.2 |
1.8 |
(0.6 |
) |
-40% |
EBITDA |
30.6 |
14.6 |
16.0 |
|
110% |
6.1 |
2.8 |
3.3 |
|
110% |
Adjusted EBITDA |
24.6 |
20.5 |
4.1 |
|
20% |
5.0 |
4.0 |
1.0 |
|
20% |
Revenue in Q1 2022 was RMB95.4 million (approx.
CAD19.0 million), an increase of RMB14.2 million (approx. CAD3.1
million), or 17%, from RMB81.2 million (approx. CAD15.9 million)
for the three-month period ended March 31, 2021 (“Q1 2021”). With
the resurgence of the outbreak of COVID-19 confirmed cases in China
at the end of February 2022, the Central Government had re-instated
certain travel restrictions which led to a drop in demand for
natural gas in Sanya City in the month of March 2022 and worsened
in April 2022. The increase in total revenue of Q1 2022 as compared
to Q1 2021 was mainly attributable to the increase in revenue from
residential customers of pipeline installation and connection as a
result of construction of temporary housing under activation of
city redevelopment plan in Q1 2022.
Gross profit in Q1 2022 was RMB37.3 million
(approx. CAD7.5 million), an increase of RMB3.7 million (approx.
CAD0.9 million), or 11%, from RMB33.6 million (approx. CAD6.6
million) in Q1 2021. Gross margin in Q1 2022 was 39.2%, a decrease
of 2.2 percentage points as compared to 41.4% in Q1 2021. Lower
gross profit and margin in Q1 2022 were mainly attributable to the
lower gross profit margin for revenue from residential customers in
pipeline connection, the lowering of gas selling price as a result
of further price control imposed by the Sanya government which
commenced from September 1, 2021 and the raise in purchase price of
LNG which could not be fully transferred to our customers in Sanya
CNG vehicle station.
In millions |
Q1 2022 |
Q1 2021 |
Change |
% |
Q1 2022 |
Q1 2021 |
Change |
% |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
|
Continuing Operations |
|
|
|
|
|
|
|
|
Net profit for the period |
11.3 |
|
3.0 |
8.3 |
|
279% |
2.3 |
|
0.6 |
1.7 |
|
279% |
Non-recurring items |
|
|
|
|
|
|
|
|
Fair value change on derivative financial instrument |
(6.2 |
) |
5.6 |
(11.8 |
) |
211% |
(1.2 |
) |
1.1 |
(2.3 |
) |
211% |
Recognition of share-based payment expenses |
0.2 |
|
0.3 |
(0.1 |
) |
-36% |
0.1 |
|
0.1 |
(0.0 |
) |
-36% |
Adjusted net profit for the period (non-IFRS) |
5.3 |
|
8.9 |
(3.6 |
) |
-40% |
1.2 |
|
1.8 |
(0.6 |
) |
-40% |
Net profit in Q1 2022 was RMB11.3 million
(approx. CAD2.3 million), an increase of RMB8.3 million (approx.
CAD1.7 million), or 279%, from RMB3.0 million (approx. CAD0.6
million) in Q1 2021. Net profit in Q1 2022 included non-recurring
items. On a comparable basis, after excluding the gain of RMB6.2
million (approx. CAD1.2 million) (Q1 2021: loss RMB5.6 million,
approx. CAD1.1 million) in fair value change on derivative
financial instrument of loan discharge agreement in respect of the
commitment by the estate of Mr. Lin to subscribe for common shares
under a related party loan (please refer to the Related Party
Transaction section of the MD&A for more details), share-based
payment charges of RMB0.2 million (approx. CAD0.1 million) (Q1
2021: RMB0.3 million, approx. CAD0.1 million), the Company reported
an adjusted net profit of RMB5.3 million (approx. CAD1.2 million)
in Q1 2022, a decrease of RMB3.6 million (approx. CAD0.6 million),
or 40% from that of RMB8.9 million (approx. CAD1.8 million)
reported in Q1 2021.
In millions |
Q1 2022 |
Q1 2021 |
Change |
% |
Q1 2022 |
Q1 2021 |
Change |
% |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
|
Continuing Operations |
|
|
|
|
|
|
|
|
EBITDA for the period |
30.6 |
|
14.6 |
16.0 |
|
110% |
6.1 |
|
2.8 |
3.3 |
|
110% |
Non-recurring items |
|
|
|
|
|
|
|
|
Fair value change on derivative financial instrument |
(6.2 |
) |
5.6 |
(11.8 |
) |
211% |
(1.2 |
) |
1.1 |
(2.3 |
) |
211% |
Recognition of share-based payment expenses |
0.2 |
|
0.3 |
(0.1 |
) |
-36% |
0.1 |
|
0.1 |
(0.0 |
) |
-36% |
Adjusted EBITDA for the period |
24.6 |
|
20.5 |
4.1 |
|
20% |
5.0 |
|
4.0 |
1.0 |
|
20% |
EBITDA in Q1 2022 was RMB30.6 million (approx.
CAD6.1 million), an increase of RMB16.0 million (approx. CAD3.3
million), or 110% from RMB14.6 million (approx. CAD2.8 million) in
Q1 2021.
On a comparable basis, the adjusted EDITDA in Q1
2022 was RMB24.6 million (approx. CAD5.0 million), an increase of
RMB4.1 million (approx. CAD1.0 million), or 20%, from RMB20.5
million (approx. CAD4.0 million) in Q1 2021.
Basic earnings per share (“EPS”) in Q1 2022 was
RMB0.21 (CAD0.04) per share. Adjusted EPS in Q1 2022 was RMB0.08
(CAD0.02) per share (non-IFRS).
The Company has continued to initiate and
execute the organizational change across its business segments to
reduce the operational costs and improve profitability. For the gas
distribution utility segment, we will continue to look for new
opportunities in the energy sector, including gas procurements,
alternative energy resources to ensure multi-dimensional growth of
the Company and further mitigate market and pricing risks which we
are currently facing.
For the integrated smart energy segment, we
anticipate additional hotels will be connecting and using our
system as the economy slowly recovers. However, since most hotels
are operating below their normal capacities due to the drop in
visitors to Sanya, their incentive to connect to our cooling
system, which is more cost-effective, is diminished.
For the smart mobility segment, we are
continuing to bond and negotiate with local taxi and ride-sharing
companies, municipal public transportation ministries in various
areas to promote and advocate our electric vehicle (“EV”) battery
swap services. We are also working on our plans to bring in more EV
taxis into our battery swap stations in Haikou City and Sanya City,
including working with the regional auto car dealers to prepare for
a tender of the upcoming EV taxi renewal under the initiative of
the Sanya Public Transport Authority. Meanwhile, as most taxi and
ride-sharing companies in Zhuhai City are delaying their schedules
to renew their taxis, we are revising our operational plan in
Zhuhai City accordingly, and will cooperate with those companies to
develop an interim solution during this difficult period.
As the COVID-19 pandemic continues to pose
significant uncertainties in the market, we will prepare to respond
to those threats.
The unaudited condensed interim consolidated
financial results and Management’s Discussion and Analysis
(MD&A) can be downloaded from www.SEDAR.com or from the
Company's website at www.cfenergy.com.
About CF Energy Corp.
CF Energy Corp. is a Canadian public company
currently traded on the Toronto Venture Exchange (“TSX-V”) under
the stock symbol “CFY”. It is an integrated energy provider and
natural gas distribution company (or natural gas utility) in the
PRC. CF Energy strives to combine leading clean energy technology
with natural gas usage to provide sustainable energy to its
customer base in the PRC. In 2009, CF Energy was recognized as
being one of China’s the Top Ten Most Influential Brands in the
Natural Gas Industry and in 2019, ranked amongst the 2019 TSX
Venture 50 top performers on the TSXV for the 2018 year.
CONTACT INFORMATION
Corporate Investment
RelationsInvestor.relations@changfengenergy.cn
Charles WangExecutive Assistant to CEO & Chair of the
BoardZhaoyu.wang@changfengenergy.cn
Frederick WongDirector of the
Boardfred.wong@changfengenergy.cn
Mike LiuVP Capital Marketmike.liu@changfengenergy.cn
Forward-Looking Statements
Certain statements contained in this news
release constitute forward-looking statements and forward-looking
information (collectively, “Forward-Looking Statements”). All
statements, other than statements of historical fact, included or
incorporated by reference in this document are Forward-Looking
Statements, including statements regarding activities, events or
developments that the Company expects or anticipates may occur in
the future (including, without limitation, no significant
adjustments to the gas selling price and charges for related
services imposed by the relevant PRC government, the tourism
industry continues to recover from COVID-19 impact and no delay in
the development of the electric vehicle battery swap stations or
the Haitang Bay Integrated Smart Energy Project). These
Forward-Looking Statements can be identified by the use of
forward-looking words such as “will”, “expect”, “intend”, “plan”,
“estimate”, “anticipate”, “believe” or “continue” or similar words
or the negative thereof. No assurance can be given that the plans,
intentions or expectations or assumptions upon which these
Forward-Looking Statements are based will prove to be correct and
such Forward-Looking Statements included in this news release
should not be unduly relied upon. Although management believes that
the expectations represented in such Forward-Looking Statements are
reasonable, there can be no assurance that such expectations will
prove to be correct. Such Forward Looking Statements are not a
guarantee of performance and involve known and unknown risks,
uncertainties, assumptions and other factors that may cause the
actual results, performance or achievements to differ materially
from the anticipated results, performance or achievements or
developments expressed or implied by such Forward-Looking
Statements. These factors include, without limitation, no
significant and continuing adverse changes in general economic
conditions or conditions in the financial, tourism, and gas
distribution and electric vehicle markets or delays in the
development of key projects. Readers are cautioned that all
Forward-Looking Statements involve risks and uncertainties,
including those risks and uncertainties detailed in the Company’s
filings with applicable Canadian securities regulatory authorities,
copies of which are available at www.sedar.com. The Company urges
readers to carefully consider those factors. The Forward-Looking
Statements included in this news release are made as of the date of
this document and the Company disclaims any intention or obligation
to update or revise any Forward-Looking Statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable securities legislation. This news
release does not constitute an offer to sell or solicitation of an
offer to buy any of the securities described herein and accordingly
undue reliance should not be put on such.
Non-IFRS Financial Measures
This news release contains financial terms that
are not considered in the International Financial Reporting
Standards ("IFRS"): EBITDA, Adjusted EBITDA and Adjusted Net
Profit. These financial measures, together with measures prepared
in accordance with IFRS, provide useful information to investors
and shareholders, as management uses them to evaluate the operating
performance of the Company. The Company's determination of these
non-IFRS measures may differ from other reporting issuers, and
therefore are unlikely to be comparable to similar measures
presented by other companies. Further, these non-IFRS measures
should not be considered in isolation or as a substitute for
measures of performance or cash flows prepared in accordance with
IFRS. These financial measures are included because management uses
this information to analyze operating performance and
liquidity.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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