VPower Group International Holdings Limited (“VPower Group” or the “Group”, stock code: 1608.HK) announced its annual results for the year ended 31 December 2020 (the “Year”).

Despite the unprecedented challenges in the global business environment in 2020 due to the COVID-19 pandemic, the Group demonstrated business resilience, thanks to its operational flexibility and adaptive management approach. The Group recorded a solid revenue growth of 21.2% to approximately HK$3,386.9 million, with EBITDA up by 32.7% to approximately HK$1,131.9 million. Net profit increased by 82.1% to approximately HK$516.3 million. In terms of financial position, the Group managed to lower the net gearing ratio from 108.4% to 60.5%.

To share the Group’s achievements with its shareholders, the Board proposed a final dividend of HK3.45 cents per share. Subject to shareholders’ approval, the final dividend will be payable in cash, with an option granted to shareholders to receive new and fully paid shares in lieu of cash in whole or in part under the scrip dividend scheme. The full year dividend will be HK4.96 cents per share, representing a dividend payout ratio of 24.8%.

Solid Business Development Amid COVID-19

During the Year, the Group successfully captured the market growth of SI industry and grew its segment revenue by 23.5% to approximately HK$2,169.9 million. The Group further strengthened its strategic relationship with the world’s leading engine manufacturer, Rolls-Royce Power Systems AG and has become its distributor for commercial marine and gas power generation in China since early 2020.

Putting the health and safety of its onsite staff at top priority, the Group remained focused on and committed to maintaining reliable power supply to its off-takers as well as the general public. During the Year, its IBO business segment continued to deliver solid operating performance with revenue up by 17.3% and reaching HK$1,217.0 million.

The Group made a strategic move of venturing into the LNG-to-power industry with China National Technical Import and Export Corporation through a 50-50 joint venture. The successful project execution and operation has enabled the Group to further pursue LNG-to-power and the peripheral business opportunities associated with its entire supply chain in different jurisdictions.

Decarbonising the Future

Prospects for the global economy remain uncertain in spite of subtle recovery. Nevertheless, with more and more countries are adopting net-zero emissions targets and seeking to create lower-carbon energy eco-systems, there is a growing depth and breadth of opportunity.

Mr Ambrose Lee, Chief Strategy Officer and Head of Capital Markets/ Corporate Finance of VPower Group, remarked, “We will continue our operational excellence and be more responsive, resilient and agile in the increasingly complex energy sector. As a responsible energy provider, we will also explore investment opportunities in clean technologies such as combined cooling, heat and power generation, hybrid power, battery and storage, and renewables.”

At all times, VPower Group is committed to providing reliable and cost-effective electricity to people in need and creating sustainable value to our shareholders, employees, customers and other stakeholders.