VPower Group Announces 2020 Interim Results *** Net Profit Surges Over 84% to HK$ 263.3 Million Declared Interim Dividend of HK1.51 Cents Per Share, Up 174.5%

27.08.2020
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VPower Group International Holdings Limited (“VPower Group” or the “Group”, stock code: 1608.HK) is pleased to announce its interim results for the six months ended 30 June 2020 (“the reviewing period”).

Financial Results Overview

(HK$ million) 1H2020 1H2019 Change
Revenue 2,050.3 1,203.4 +70.4%
EBITDA 571.4 357.3 +59.9%
Net Profit 263.3 142.7 +84.5%
Divident Per Share (HK cents) 1.51 0.55 +174.5%

Despite the challenges in global business environment in the first half of 2020 due to the COVID-19 pandemic, the Group’s business and operation were proven to be resilient. The Group managed to record a solid revenue growth of 70.4% to HK$2,050.3 million, with EBITDA rose by 59.9% to HK$571.4 million. The net profit increased significantly by 84.5% to HK$263.3 million. To share the Group’s achievements with shareholders, the Board has resolved to declare an interim dividend of HK1.51 cents per share.

Business Review

Given its specialisation in providing distributed power solutions to countries in need of fast-track and flexible electricity, the Group’s business and financial performance remained stable as its end users are relatively more confined and defined in terms of power usage.

Building on the success in the global power system integration market, the Group continued to provide its customers with reliable and cost-competitive power generation sets and systems. Revenue of the SI business segment for the six months ended 30 June 2020 was approximately HK$1,409.2 million (six months ended 30 June 2019: HK$688.8 million), representing a growth of 104.6%.

The IBO business segment continued to be the Group’s focus of business development in the first half of the year. During the reviewing period, the Group strategically expanded its market share in existing IBO markets, in particular, Myanmar and Sri Lanka. Revenue of the IBO business segment for the six months ended 30 June 2020 grew 24.6% to HK$641.1 million (six months ended 30 June 2019: HK$514.7 million). Despite the challenges posed by the pandemic, the Group managed to commission new projects with a total installed capacity of 138.8MW in four countries, namely Myanmar, Sri Lanka, Indonesia and Brazil as of the results announcement date.

It is also worth noting that the Group successfully entered into the LNG-to-power industry during the reviewing period through a partnership with China National Technical Import and Export Corporation (‘‘CNTIC’’). A 50-50 joint venture of VPower Group and CNTIC was formed for three power generation projects in Myanmar. Upon entering into the respective power purchases agreements in June 2020, the projects with an aggregate installed capacity of 1059.5MW have started generating electricity for the people of Myanmar.

Together with the projects owned by the joint venture, the Group currently has 1,874.2MW installed capacity of projects in operation. It is well on track to meet its target of reaching 1,900MW by the end of 2020.

Outlook

As a result of COVID-19, there continues to be significant uncertainty in the macro-economic conditions. During this challenging period, the Group will strive to maintain stable performance capitalising on its solid business foundation while ensuring the health and safety of its employees and other stakeholders.

In the second half of the year, the Group will continue to materialize its projects in the pipeline and explore more LNG-to-power opportunities in Southeast Asia. Mr Ambrose Lee, Chief Strategy Officer and Head of Capital Markets/ Corporate Finance of VPower Group, remarked “The successful expansion into the LNG-to-power market through CNTIC VPower marks a milestone for our business development, which lays the foundation for us to capture the growing LNG-to-power and LNG related markets. Being one of the pioneers in fast track integrated LNG-to-power generation in Southeast Asia and with the strong desire of low carbon and distributed power generation, we are well equipped to take on more opportunities in this area in the post COVID-19 era.”

Reliable electricity supply plays a crucial role in safeguarding public health and securing global economic recovery. At all times, VPower Group is committed to ensuring the reliability of the electricity supply to the people in need, supporting the energy transition to reach a cleaner economy and striving for the best benefits for all of our stakeholders.


About VPower Group International Holdings Limited

Headquartered in Hong Kong, VPower Group is an integrated expert in distributed power generation (DPG). It principally engages in power system integration (SI) business, covering designing, integrating and sale of gas-fired and diesel-fired engine-based gen-sets and power generation systems, and Investment, Building and Operating (IBO) business, involving investing in, building and operating distributed power stations to supply reliable electricity. It is now a leading distributed power station owner and operator in Asia.

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