Canada

CF Energy Announces Financial Results For The Three-month

TORONTO, May 27, 2022 (GLOBE NEWSWIRE) — 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 Relations
Investor.relations@changfengenergy.cn

Charles Wang
Executive Assistant to CEO & Chair of the Board
Zhaoyu.wang@changfengenergy.cn

Frederick Wong
Director of the Board
fred.wong@changfengenergy.cn

Mike Liu
VP Capital Market
mike.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.

CF Energy Announces Financial Results For The Three-month Source link CF Energy Announces Financial Results For The Three-month

Related Articles

Back to top button