Financials
First Quarter Financial Statement And Dividend Announcement 2012
Financials Archive
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Unaudited Financial Statement Announcement for Financial Period Ended 31 March 2012
Income Statement
Consolidated Statement of Comprehensive Income
Balance Sheet
Review Of Performance
Financial results
The Group’s revenue decreased by about 13.5% or RMB4.1 million from RMB30.3 million in Q1 2011 to RMB26.2 million in Q1 2012. The decrease is mainly attributable to the decrease of RMB5.5 million in revenue from Sichuan Anning River Energy Development Co., Ltd due to the drought situation in that area. The decrease was partially offset by an increase of RMB0.4 million in revenue from sale of power meters from JAZ Technology Development (Shenzhen) Co., Ltd (“JAZ”)., an increase of RMB0.5 million in revenue from Xi’an Kaixin Enterprice Co., Ltd and RMB0.3 million of revenue contribution from Sanya Jinhai Microcredit Co., Ltd (“Sanya Jinhai”) which was newly set up during first quarter 2012.
Cost of sales of Q1 2012 did not vary significantly from that of Q1 2011 due to the costs to operate hydropower plants are substantially constant. The slight increase in cost was mainly due to increase in JAZ which is in the manufacturing and trading business. Depreciation expenses remains constant as there are no major acquisitions or disposals during the period Q1 2011 to Q1 2012.
As a result of the above, gross profit decreased by 27.9% from RMB15.4 million in Q1 2011 to RMB11.1 million in Q1 2012.
Other operating income increased from RMB3.1 million in Q1 2011 to RMB4.7 million in Q1 2012. The increase was mainly attributable to an increase in foreign exchange gain of RMB0.7 million and a reversal of doubtful non-trade receivables of RMB0.5 million as the amount was recovered in Q1 2012.
Administrative expenses decreased by approximately RMB2.0 million or 17.7% to RMB9.2 mllion in Q1 2012 compared to RMB11.2 million in Q1 2011. This was mainly due to the savings, especially in staff costs, from cost control measures implemented by the Group in streamlining some of its cost centres.
In Q1 2012, the Group recorded share of loss of associates of RMB24,000 as compared to share of loss of associates of RMB95,000 in Q1 2011. The difference is not significant.
Finance costs increased from RMB6.5 million in Q1 2011 to RMB7.3 million in Q1 2012. The increase was mainly due to the interest rates for borrowings in the People's Republic of China for Q1 2012 was approximately 0.8% higher as compared to that in Q1 2011.
Income tax decreased from RMB2.4 milion in Q1 2011 to RMB0.5 million in Q1 2012 mainly due to a decrease in profitability of the Group entities. Despite registering a loss of RMB0.7 million in Q1 2012, income tax for the period of RMB0.5 million is incurred mainly due to the non-offsetting effects of income tax chargeable on profitable entities and loss-making entities within the Group.
As a result of the above fluctuations, net loss attributable to owners of the Company of RMB0.5 million was recorded in Q1 2012 as compared to net loss attributable to owners of the Company of approximately RMB3.1 million in Q1 2011.
Balance Sheet
The Group
Current asset balance of the Group increased by RMB 51.8 million from RMB404.2 million as at 31 December 2011 to RMB456.0 million as at 31 March 2012. This was mainly attributed to an increase in trade and other receivables of RMB36.6 million and RMB26.2 million respectively. The increase in trade receivable is mainly due to Sanya Jinhai commenced its business in end February 2012. Whereas the increase in other receivables is due to a placement of RMB30 million refundable deposit for a project which is still at its preliminary stage. The increase was partially offset by a decrase in cash and bank balances by RMB12.3 million.
Total non-current assets decreased from RMB919.8 million as at 31 December 2011 to RMB916.3 million as at 31 March 2012. The decrease was mainly due to depreciation and amortisation expenses incurred in the period.
Total current liabilities increased from RMB161.0 million as at 31 December 2011 to RMB167.9 million as at 31 March 2012 mainly due to increase other payables of RMB8.7 million from RMB76.5 as at 31 December 2011 to RMB85.2 million as at 31 March 2012. The increase is due to increase in dividend payable to the non-controlling shareholders of certain subsidiaries. The increase in other payables is partially offset by the decrease in income tax payable.
Total non-current liabilities decreased from RMB312.1 million as at 31 December 2011 to RMB305.6 million as at 31 March 2011 mainly due to a decrease in long-term loans of RMB6.0 million.
Total bank borrowings decreased from RMB362.9 million as at 31 December 2011 to RMB356.9 million as at 31 March 2012 due to normal repayments.
Equity attributable to owners of the Company decreased from RMB681.1 million as at 31 December 2011 to RMB680.8 million as at 31 March 2012 due to due to comprehensive losses attributable to owners of the Company for the current period.
Cash Flow
For Q1 2012, the Group recorded net cash outflow of RMB14.2 million, as compared to RMB19.2 million of cash inflow in Q1 2011. Cash used in operating activities amounted to RMB54.4 million after taking into account changes in working capital in Q1 2012 mainly due to Sanya Jinhai had commenced operation in February 2012. The Group’s investing activities saw a net cash outflow of RMB3.3 million which was utilised for the purchase of property, plant and equipment. Financing activities of the Group generated a net cash inflow of RMB43.5 million, mainly due to RMB60 million capital contribution by non-controlling interests for Sanya Jinhai but was partially offset by dividend paid to non-controlling interests, interest payment as well as bank loans repayment during the period.
Commentary
The Group has made marginal loss during the first quarter of 2012 mainly due to drought situation experienced in Shichuan Annning area. Going forward, we expect the outlook for the Group to be challenging. However, barring unforeseen circumstances, the Group expects to remain profitable in the financial year 2012.
The Group will continue to focus on its growth strategy of expansion in the renewable energy industry and other investment opportunities present in the PRC to enhance shareholders’ values.