Auhua Clean Energy Plc Trading Update and Completion of Placing (6235Q)
June 19 2015 - 2:00AM
UK Regulatory
TIDMACE
RNS Number : 6235Q
Auhua Clean Energy Plc
19 June 2015
AUHUA CLEAN ENERGY PLC
Trading Update and Completion of Placing and Subscription
19 June 2015: Auhua Clean Energy Plc (AIM: ACE) (the "Company"),
the environmental technology group, is pleased to announce that it
closed the year ended 31 December 2014 with unaudited revenues of
RMB248.9 million (GBP24.6 million) and an unaudited profit before
tax of RMB48.7 million (GBP4.8 million).
This compares to the FY13 revenues of RMB250.9 million (GBP26.1
million), representing a fall of 0.8 per cent., which was largely
due to certain clients delaying shipment until the start of the new
year. In terms of profitability, gross margins dipped to 38.6 per
cent. (FY2013: 43.6 per cent.) due to price pressure from larger
customers. Fixed costs increased as a result of the additional
overheads at Taiwan Ziolar (our research and development
subsidiary) and amortization of intangibles from our Taiwan Ziolar
acquisition.
Accounts receivables increased to RMB90.7 million (GBP9.0
million), up 20 per cent. from last year of RMB76.0 million (GBP7.9
million). The Group nevertheless, maintained cash balances of
RMB47.0 million (GBP4.6 million) as at 31 December 2014 compared to
RMB48.7 million (GBP4.8 million).
The Company has performed strongly amidst the slower growth in
the Chinese economy and the sluggish property sector. This is
largely because the Chinese government remains committed in the
renewable energy sector and in particular, the promotion of solar
technologies in building developments. The Company was recently
awarded a technology accolade by the Weihai Science and Technology
Department for its technology advancements in solar thermal panel
efficiency. Demand for solar thermal projects remains strong among
the property developers in China.
David Sumner, Chairman and Non-Executive Director of Auhua,
said: "We are delighted with this sound set of financial results
which reflect steady revenues, solid profit before tax, a healthy
cash balance and strong gross margins. We're a company which has
succeeded in one of the largest provinces in China and have an
international market for our solar panel production. Due to our
global business model, we are largely sheltered from the imbalance
of supply and demand currently affecting other Chinese solar
specialists. Our acquisition of Taiwan Ziolar has significantly
enhanced our overall product offering, underpinning the acute need
for continuous investment into research and development. Remaining
at the cutting-edge of technology in the solar market is core to
the success of our business."
Placing and Subscription
Further to the announcement on 16 June 2015, the Company today
announces that it has raised approximately GBP1,724,500 (before
expenses) through a placing of new Ordinary Shares of no par value
("Ordinary Shares") by WH Ireland Limited ("WHI"), as agent of the
Company (the "Placing") and subscriptions for new Ordinary Shares
direct to the Company (the "Subscription"). The issue price of both
the Placing and the Subscription is 4.5 pence per new Ordinary
Share.
While the Group's operations in China are profitable and cash
positive, liquidity in China continues to be tight and the working
capital requirements to operate the business has increased year on
year. As such, the Company has sought to raise monies from the
market to fund its capital expansion and provide working capital
for its overseas expansion. However, this has proved difficult and
the discount of the Placing and Subscription to the recent trading
price has been necessary to raise the required funds.
Chen Anxiang, Chief Executive Officer of Auhua, commented:
"China remains one of the world's biggest solar technology markets
and, in spite of a challenging economic backdrop in the country,
Auhua has had a really strong year. We have domestic and
international expansion plans as global demand for solar products
continues to thrive. The Placing and Subscription allows us to fund
our expansion into Taiwan and the United Arab Emirates while also
increasing production capacity in China. We look forward to a
promising future ahead."
The Placing comprises the issue of 9,033,332 new Ordinary Shares
(the "Placing Shares") and the Subscription comprises the issue of
29,288,889 new Ordinary Shares (the "Subscription Shares").
Application will be made for the Placing Shares and the
Subscription Shares to be admitted to trading on AIM ("Admission").
It is expected that Admission in respect of the Placing Shares and
the Subscription Shares will occur on or around 25 June 2015.
Following Admission, the total number of Ordinary Shares in the
capital of the Company in issue will be 127,794,466 with each share
carrying the right to vote. This number of shares may be used by
shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change to their interest in the Company, under
the FCA's Disclosure and Transparency Rules.
The Company will notify and post its annual report and accounts
to shareholders by 30 June 2015.
All RMB amounts have been translated using the below exchange
rates:
RMB 1: GBP 0.09870 (average exchange rate for 2014)
RMB 1: GBP 0.10396 (average exchange rate for 2013)
--ends---
Media Enquiries
Brunswick auhua@brunswickgroup.com
---------- -------------------------
Further information
Auhua Clean Energy David Sumner, non-executive davidjsumner@auhuacleanenergy.com
plc Chairman
-------------------------- ----------------------------- ----------------------------------
Philip Secrett / Maureen
Grant Thornton UK Tai /
LLP (Nominated Adviser) Jamie Barklem +44 (0)20 7383 5100
-------------------------- ----------------------------- ----------------------------------
WH Ireland Tim Feather
(Broker)
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About Auhua:
Auhua Clean Energy (www.auhuacleanenergy.com) is an
environmental technology group based in the Shandong Province of
Eastern China specialising in the development and application of
green energy and energy efficient solar thermal solutions. In
particular, the Group is focused on the manufacture and sale of
split-unit solar water heating systems.
Auhua Clean Energy operates through its wholly owned
subsidiaries Shandong Auhua New Energy Co., Ltd, Weihua Auhua New
Energy Co., Ltd., and Taiwan Ziolar Technology Co. Ltd, of which
Auhua Holdings Pte Ltd is the intermediate holding company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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