China Singyes Solar Technologies Holdings Limited, a professional renewable energy solution provider and building contractor (the "Company" or "Singyes", whereas referred together with its subsidiaries, collectively the "Group", Stock Code: 0750.HK), announced its audited annual results for the year ending 31 December 2012 ("the year"). During the year, the Group further consolidated and developed its solar energy related businesses, including Building Integrated Photovoltaic System (BIPV) and sale of renewable energy and new materials goods, with total revenue increasing by 28.7% to RMB3,098 million. Profit attributable to owners of the Company raised by 13.0% to RMB329 million.
The Board of Directors proposed the payment of a final dividend per share of HK$0.07 (2011: HK$0.04).
During the year, revenue of solar energy related businesses amounted to RMB1,610.9 million, representing a year-on-year increase of 38.1% and accounting for 51.9% of the Group's total revenue. Revenue of conventional businesses, including conventional curtain walls and sale of conventional wall materials, surged by 19.9% to RMB1,483.3 million, accounting for 47.9% of the total revenue.
BIPV and Sale of Renewable Energy Goods and New Materials
The Group has continuously strengthened its BIPV and renewable energy related businesses, and achieved a very remarkable result in its BIPV business, with revenue growing by 29.8%. The BIPV business accounted for approximately 34.6% of the Group's total revenue. In 2012, the Group took part in BIPV projects amounted to 120MW, while revenue from the commercial area increased by 105%.
In the past few years, the Chinese government launched a number of policies to promote the application of solar energy. The Group's BIPV business recorded a rapid growth which was promoted by its proven track record, well-established sales channels, good reputation and innovative technologies.
The Group has gained a stable market share in the national Golden Sun program since 2009. Last year, the Group secured 150MW and 269MW of projects under the first and second batch of Golden Sun Program respectively, and approximately 56MW under the Solar Roof Top Program.
The Group also recorded a substantial growth in renewable energy business last year and has launched a variety of renewable energy goods, including solar thermal system, heat pumb and new material products, in recent years. The sale of solar thermal and solar heat pump systems continued to contribute a significant percentage to the solar goods business.
The Group commenced its new materials business in 2011, where the revenue during the year grew by over
60%. This business segment is still under prototype stage and hence the profit margin is still relatively low, but it would help the Group explore new opportunities in green building business in future.
Total gross profit of BIPV and sale of renewable energy and new materials goods totaled RMB515 million, while the gross profit margin of BIPV was 35.5%.
Conventional Businesses
Revenue from the conventional business recorded a 19.9% growth to RMB1,483.3 million, which accounted for 47.9% of the total revenue. Revenues of conventional curtain wall and sale of conventional curtain wall materials were RMB1,222.8 million and RMB260.5 million respectively. The Group plans to maintain a stable business development strategy for this business segment.
The gross profit and gross profit margin for this segment were RMB232.9 million and 15.7% respectively.
Overseas Business Opportunities
Geographically, revenue outside Mainland China accounted for approximately 4.6% of the Group's total revenue. The Group has already secured some sizable government projects in Macau with a combined contract value of over RMB130 million. The Group is also in the process of submitting tenders in overseas markets, including Southeast Asia, Hong Kong and Macau. The Group believes that the contribution from overseas markets will continue to grow.
Mr. Liu Hongwei, Chairman of China Singyes, said, "Singyes has been committed to becoming a leading green enterprise in China. We aggressively invest in developing our new energy and new material businesses, so that our clients can benefit from technological solutions provided by our new energy and energy saving
systems and solutions. According to the 12th Five-Year Plan, 20% of urban new buildings will achieve green
building standards by the end of 2015. We will continue to leverage our edge in building business and endeavor to develop green building market."
The Group's first smart-grid demonstration project in Dong-Ao Island commenced operation in 2010. Sale of electricity income during the year amounted to RMB4.5 million. Mr. Liu said, "This project can demonstrate to the public the operation of a smart-grid network and its benefits. We believe that smart grid technology will bring us new business opportunities in foreseeable future. In addition, we will dedicate more research efforts to product development. Through the strategic cooperation with a number of solar panel manufacturers, we aim to tap into their Mainland China and overseas customer bases and distribution networks to secure business and seek for overseas business opportunities."
