Press Releases Archives - Page 3 of 4 - VPower Group Fast Track Distributed Power Generation

VPower Group Issues Positive Profit Alert for 2016 Annual Results Excluding the Listing Expense, Net Profit Expects to Surge not less than 70% YoY

2:59 pm
|
FHKI (3a)

VPower Group International Holdings Limited (“VPower Group”, SEHK: 1608), one of the largest private gas-fired engine-based distributed power generation (DPG) station owner and operator in Southeast Asia, is pleased to announce that, based on the currently available information, the Group expects the net profit for the year ended 31 December 2016 to increase significantly not less than 40%, when compared with the net profit for the year ended 31 December 2015 of HK$141.2 million. If excluding the one-off listing expense, the Group’s net profit would have been expected to increase not less than 70%.

The increase in the Group’s net profit is principally due to (i) significant year-on-year growth in the IBO segment revenue of not less than 80%; (ii) the increase in the Group’s overall gross profit margin, which was driven primarily by strong growth in the IBO business. The increases in the revenue and gross profit contribution are mainly from the following IBO projects:
Commencement of operation of 49.9 MW Kyauk Phyu II project in Myanmar in March 2016;
Commencement of operation of 149.8 MW Myingyan project in Myanmar in June 2016;
Commencement of operation of 56.4 MW Jambi project in Indonesia in September 2016; and
Full year operation in 2016 of 56.2MW Palembang and 49.9 MW Kyauk Phyu I projects, which commenced operations in 2Q and 1Q 2015 respectively.

Mr. Rorce AU YEUNG, Co-Chief Executive Officer of VPower Group, said, “The IBO business has become the Group’s growth engine as a result of our proactive IBO business expansion in recent years. The 3 new IBO projects launched in Myanmar and Indonesia in 2016 will commence full 12-month operation in 2017 and are expected to remain our growth drivers. Following the Group’s successful listing at the end of last year, we will continue to seek and develop more IBO projects in the Southeast Asia and other emerging markets by leveraging the funds raised through IPO. The Group will also strive to establish high-quality partnerships in order to expand our market share. We expect the Group to maintain its rapid business growth in the future so as to maximize returns to our shareholders.”

About VPower Group International Holdings Limited (Stock code: 1608)

VPower Group is one of the world’s leading large gen-set system integration providers, and Southeast Asia’s largest private gas-fired engine-based DPG station owner and operator. The company derives operational synergies between its System Integration (SI) and Invest, Build and Operate (IBO) businesses. Under its IBO business, the company invests in, builds, and operates utility-grade DPG power stations. It is headquartered in Hong Kong and was listed on the Stock Exchange of Hong Kong in 2016 […]

VPower Signs Letter of Intent In Relation to Participation in 80 MW HFO-Fired DPG Project in Peru

12:34 pm
|
Peru

VPower Group (SEHK: 1608), one of Southeast Asia’s largest gas-fired engine-based Distributed Power Generation (DPG) owner and operator, has signed a non-binding Letter of Intent (“LOI”) with F.K. Generators and Equipment Ltd (“F.K.”) for the co-development in F.K.’s 80 MW installed capacity HFO-Fired Distributed Power Generation project in Iquitos, Peru on 12th December. Under the terms of the LOI, upon a satisfactory due diligence, VPower Group shall invest by way of convertible security initially with a view to converting into a substantial share in a project company after Project’s commercial operation date, targeted in 2H 2017.

The Project, to run on 7 units of medium speed HFO Power Generation System (“PGS”) has an estimated capacity availability revenue of approximately USD 350 million (before any Operation and Maintenance Services revenues) over the 20-year concession period granted by the Peruvian Ministry of Energy and Mines, and guaranteed by the state of Peru which is rated BBB+ by S&P. Peru enjoys a World Bank distance to frontier score of 70.2, making it an attractive new market in Invest, Build and Operate (“IBO”) for the VPower Group.

VPower Group believes the co-development with F.K.’s 80 MW Project will have the following benefits:
1) The Project runs on cost effective HFO which diversifies our fuel source;
2) Our successful partnership with F.K. in IBO business can strength our business relationship with current SI customers;
3) The Project can speed up VPower Group to penetrate to attractive potential new market in South America for IBO business; and
4) A long term concession of 20 years Project can provide stable revenue to VPower Group.

Within 2 months of the signing of the LOI, VPower Group is expected to complete its due diligence process on the Project. If the Company agrees to sign the formal binding agreement, the Company will make further announcement as and when appropriate and comply with the necessary requirements under the Listing Rules. As both parties have not entered into any legally binding agreement as of the date of this announcement, the proposed investment may not materialise. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

About F.K.

F.K. is an Israeli-based power solutions provider with operations in Israel and South America. The Group has had a long standing System Integration (“SI”) customer relationship with F.K. and has sold over 600MW of Power Generation Systems to F.K. over the years, making it one of the Group’s top 5 SI customers.

About VPower

VPower Group is one of the leading gas-fired engine-based DPG station owner and operator in Southeast Asia, and one of the world’s leading large gen-set system integration providers. The company derives operational synergies between its System Integration (SI) and Invest, Build and Operate (IBO) businesses. Under its IBO business, the company designs, invests in, builds, and operates utility-grade DPG power stations. It is headquartered in Hong Kong and was listed on the Stock Exchange of Hong Kong in November 2016.