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, 2021 (“Q1 2021”).
Q1 2021 financial highlights
Continuing Operations
In millions |
Q1 2021 |
Q1 2020 |
Change |
% |
Q1 2021 |
Q1 2020 |
Change |
% |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
|
Continuing Operations |
|
|
|
|
|
|
|
|
Revenue |
81.2 |
64.9 |
16.3 |
25% |
15.9 |
12.5 |
3.4 |
28% |
Gross
Profit |
33.6 |
27.1 |
6.5 |
24% |
6.6 |
5.2 |
1.4 |
28% |
Gross
Profit Margin |
41.4% |
41.8% |
-0.4% |
|
41.4% |
41.8% |
-0.4% |
|
Net
Profit |
3.0 |
17.0 |
(14.0) |
-82% |
0.6 |
3.3 |
(2.7) |
-82% |
Adjusted
net Profit |
8.9 |
5.0 |
3.9 |
78% |
1.8 |
1.0 |
0.8 |
80% |
EBITDA |
14.6 |
26.9 |
(12.3) |
-46% |
2.7 |
5.1 |
(2.4) |
-48% |
Adjusted EBITDA |
20.5 |
14.9 |
5.6 |
38% |
3.9 |
2.8 |
1.1 |
39% |
Revenue in Q1 2021 was RMB81.2 million (approx.
CAD15.9 million), an increase of RMB16.3 million (approx. CAD3.4
million), or 25%, from RMB64.9 million (approx. CAD12.5 million)
for the three-month period ended March 31, 2020 (“Q1 2020”). The
overall increase in revenue mainly reflected the general increase
in sales volume with solid economic recovery since COVID-19 was
under control.
Gross profit in Q1 2021 was RMB33.6 million
(approx. CAD6.6 million), an increase of RMB6.5 million (CAD1.4
million) or 24% from RMB27.1 million (approx. CAD5.2 million) in Q1
2020. Overall Gross margin in Q1 2021 was 41.4% which
was close to that of 41.8% in Q1 2020.
In millions |
Q1 2021 |
Q1 2020 |
Change |
% |
Q1 2021 |
Q1 2020 |
Change |
% |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
|
Continuing Operations |
|
|
|
|
|
|
|
|
EBITDA for the period |
14.6 |
26.9 |
(12.3) |
-46% |
2.7 |
5.1 |
(2.4) |
-48% |
Non-recurring items |
|
|
|
|
|
|
|
|
Fair value change on derivative financial instrument |
5.6 |
(12.0) |
17.6 |
-147% |
1.1 |
(2.3) |
3.4 |
-147% |
Recognition of share-based payment expenses |
0.3 |
- |
0.3 |
100% |
0.1 |
- |
0.1 |
100% |
Adjusted EBITDA for the period |
20.5 |
14.9 |
5.6 |
38% |
3.9 |
2.8 |
1.1 |
39% |
EBITDA (Non-IFRS measure) in Q1 2021 was RMB14.6 million
(approx. CAD2.7 million), a decrease of RMB12.3 million (approx.
CAD2.4 million), or 46%, from RMB26.9 million (approx. CAD5.1
million) in Q1 2020. On a comparable basis, the adjusted EBITDA (as
defined on page 18 of the MD&A for Q1 2021) in Q1 2021 was
RMB20.5 million (approx. CAD3.9 million), an increase of RMB5.6
million (approx. CAD1.1 million), or 38%, from RMB14.9 million
(approx. CAD2.8 million) in Q1 2020.
In millions |
Q1 2021 |
Q1 2020 |
Change |
% |
Q1 2021 |
Q1 2020 |
Change |
% |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
|
Continuing Operations |
|
|
|
|
|
|
|
|
Net profit for the period |
3.0 |
17.0 |
(14.0) |
-83% |
0.6 |
3.3 |
(2.7) |
-82% |
Non-recurring items |
|
|
|
|
|
|
|
|
Fair value change on derivative financial instrument |
5.6 |
(12.0) |
17.6 |
-147% |
1.1 |
(2.3) |
3.4 |
-147% |
Recognition of share-based payment expenses |
0.3 |
- |
0.3 |
100% |
0.1 |
- |
0.1 |
100% |
Adjusted net profit for the period (non-IFRS) |
8.9 |
5.0 |
3.9 |
78% |
1.8 |
1.0 |
0.8 |
80% |
Net profit in Q1 2021 was RMB3.0 million (approx. CAD0.6
million), a decrease of RMB14.0 million (approx. CAD2.7 million),
or 83%, from RMB17.0 million (approx. CAD3.3 million) in Q1 2020.
On a comparable basis, the adjusted net profit (as defined on page
16 of the MD&A for Q1 2021) in Q1 2021 (non-IFRS) was RMB8.9
million (approx. CAD1.8 million), an increase of RMB3.9 million
(approx. CAD0.8 million) or 78% from RMB5.0 million (approx. CAD1.0
million) in Q1 2020.
Basic earnings per share (“EPS”) in Q1 2021 was
CAD0.01 per share. Adjusted EPS in Q1 2021 was CAD0.03 per share
(non-IFRS).
Discontinued Operation
Loss in Q1 2021 of RMB0.3 million related to the
termination of the operation of a subsidiary as the Group realigned
its future business strategies with major focus on clean energy
solutions with high growth potential.
Completion of 2021 Target
In millions |
2021 Projection |
Q1 2021 Actual |
Completed |
(except for % figures) |
RMB |
RMB |
% |
Revenue |
410.7 |
81.2 |
19.8% |
Gross
Profit |
187.3 |
33.6 |
17.9% |
Projected net profit (recurring) / Adjusted net profit |
28.9 |
8.9 |
30.7% |
Benchmarking against the annual target for the
2021 year, for the first quarter of 2021, we have achieved up to
19.8% of the revenue, 17.9% of gross profit and 30.4% of projected
net profit targets set for the whole of the 2021 year.
Q1 2021 Business highlights
Natural gas distribution business
The government’s one-off pre-cautionary measure
to avoid unnecessary traffic and gathering over the festive period
of January and February 2021 restricted the number of overnight
visitors to Sanya City in the first two months of 2021. However,
with the catching up of overnight visitors in March 2021, the
consumption of gas volume from commercial customers in Q1 2021 had
regained to the level close to pre- COVID in Q1 2019.
Smart energy distribution business
Phase one of the Haitang Bay Integrated Smart
Energy Project is on its way to commence operation in early Q3
2021. The Company has signed up nine commercial customers,
including some well-known international brand name customers, with
350,000 square meters of cooling space to be served which represent
as 44% of the projected total 780,000 square meters of customers’
space to serve for the first phase of the project. The management
will continue with its effort to procure more potential customers
to tap into our system in the coming months.
Meishan smart energy project commenced its trial
operation in March 2021, and full commercial operation commenced in
mid-May 2021 and start contributing revenue in Q2
2021.
Smart mobility business
By end of Q1 2021, the Company has commenced two
EV battery swap stations in operation in Hainan and installed one
EV battery swap station in Zhuhai City. Two CNG refueling stations
experienced combined revenue increase of 41% in Q1 2021 as compared
to Q1 2020.
Statement from the Chair
Coming out of a tough year in 2020, we are
pleased to see all our three business divisions shown significant
improvement in Q1 this year. We implemented various strategic
policy adjustments on our business focus last year as a way forward
in preparation for the expected negative impact from regulatory
policy changes and the resultant financial challenges which may
bring in 2021. It looks like those adjustments have started to bear
fruits with the Q1 results. We are on track with our internal
projections in Q1 2021 and hope to beat our own targets for the
full year with a team effort.
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. (Previously known as: Changfeng
Energy Inc.)
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.
TELE-CONFERENCE
A tele-conference will be held following the
release of this press release and the results of the Group, details
of which will be provided by way of a separate press release in due
course.
CONTACT INFORMATION
Corporate Investment
RelationsInvestor.relations@changfengenergy.cnCharles Wang
Executive 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.
This news release contains future oriented
financial information and financial outlook information
(collectively, " FOFI ") (including, without
limitation, statements regarding expected average production), and
are subject to the same assumptions, risk factors, limitations and
qualifications as set forth in the above paragraph. The FOFI has
been prepared by management to provide an outlook of the Company's
activities and results, and such information may not be appropriate
for other purposes. The Company and management believe that the
FOFI has been prepared on a reasonable basis, reflecting
management's reasonable estimates and judgments, however, actual
results of operations of the Company and the resulting financial
results may vary from the amounts set forth herein. Any FOFI speaks
only as of the date on which it is made, and the Company disclaims
any intent or obligation to update any FOFI, whether as a result of
new information, future events or results or otherwise, unless
required by applicable laws.
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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