Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Email This Print This Financials

Second Quarter Financial Statement And Dividend Announcement 2017

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.


Unaudited Financial Statements For The First Quarter Ended 31 March 2017

UNAUDITED CONSOLIDATED INCOME STATEMENTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE 2017

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS) FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE 2017

Balance Sheet

Review of Performance

Review of the Group’s Performance for the second quarter ended 30 June 2017(“2Q2017”) as compared to that of the second quarter ended 30 June 2016 (“2Q2016”)

Revenue

Revenue recorded an increase of approximately 25.39% or RMB127.58 million in 2Q2017, mainly due to an increase of average sale price of liquid petroleum gas (“LPG”) from RMB2,561 per tonne in 2Q2016 to.RMB3,140 per tonne in 2Q2017 and increase of sales volume of LPG from 196,160 tonnes 2Q2016 to 200,648 tonnes 2Q2017.

Gross profit

Gross profit decreased by RMB41.08 million or 111.70% in 2Q2017 as compared to 2Q2016. Correspondingly, gross profit margin decreased from 7.32% to negative 0.68% mainly due to the fluctuation of LPG purchase price was more unstable in 2Q2017 as compared to 2Q2016.

Other operating income

Other operating income increased by RMB2.57 million or 116.35%, mainly due to the increase in the foreign exchange gain of RMB3.28 million, partially offset by the decrease in cash rewards from local authority of RMB0.45 million the decrease in shipping income of RMB0.14 million and the decrease in the tugboat income of RMB0.12 million.

Operating expenses

Operating expenses decreased by RMB7.25 million or 26.03% due mainly to:

  1. Selling and distribution expenses increased by approximately RMB0.48 million or 3.47% mainly due to an increase in marine freight of RMB0.93 million, an increase in the tugboat charges of RMB0.1 million, partially offset by an decrease in the land freight of RMB0.58 million and a decrease in commission charge of RMB0.1 million.

  2. Administrative expenses increased by RMB0.76 million or 15.75% mainly due to an increase in port maintenance fee of RMB0.35 million, an increase in asset valuation fee of RMB0.2 million, an increase in stamp duty of RMB0.15 million and an increase in office expenses of RMB0.12 million, partially offset by decrease in salary of RMB0.12 million and decrease in other tax of RMB0.1 million.

  3. Other operating expenses decreased by RMB8.49 million or 92,54% mainly due to the decrease in the foreign exchange loss of RMB8.38 million, resulted from the appreciation of the RMB against the US dollars in 2Q2017.

Finance cost

Finance costs decreased by approximately RMB1.29 million or 27.29% mainly due to decrease in the average loan amounts.

Profit attributable to equity holders

As a result of the above, net loss attributable to equity holders recorded RMB23.56 million in 2Q2017.

Review of the Group’s Financial Position as at 30 June 2017 and the Group’s Financial Position as at 31 December 2016

Current assets decreased by approximately RMB30.31 million or 6.84% from RMB443.13 million as at 31 December 2016 to RMB412.83 million as at 30 June 2017. This is mainly due to a decrease in cash and cash equivalents of RMB37.11 million, the decrease in available-forsale investments of RMB14.11 million and the decrease in pledged fix deposit of RMB5.65 million, partially offset by an increase in trade and other receivables of RMB19.44 million.

Current liabilities decreased by approximately RMB46.23 million or 9.64% from RMB479.56 million as at 31 December 2016 to RMB433.32 million as at 30 June 2017. This is mainly due to a decrease in short term borrowings of RMB41.18 million and a decrease in due to a related party of RMB4.50 million.

Review of the Group’s Cash Flow Statements for 2Q2017

Net cash used in operating activities amounted to approximately RMB49.95 million. This is mainly due to the loss before income tax of RMB23.56 million, after adding non-cash items of RMB7.14 million and net cash outflows of working capital of RMB30.18 million and net interest payment of RMB3.36 million. Net cash outflows from working capital arose from an increase in the inventories of RMB100.65 million, a decrease in trade and other payables (excluding interest payables) of RMB18.79 million, partially offset by a decrease in the trade and other receivables (exclude interest receivables) of RMB90.31 million.

Net cash used in investing activities amounted to RMB0.33 million due to the purchase of property, plant and equipment of RMB0.33 million.

Net cash generated from financing activities amounted to RMB33.91 million mainly due to the proceeds from bank borrowings.

Commentary

Although the global market and economic growth has been generally positive, the following months until end of 2017 will continue to face many uncertainties and challenges. Going forward, the international oil prices are likely to remain volatile and China’s faster pace of growth seen in the first half may have already peaked. The unfavourable geo-political factors in North East Asia will likely continue. These adverse external factors will continue to pose big challenges for our LPG business and our Group.

However, international oil prices having declined very substantially recently may also provide some opportunities for better economic and business conditions for China and our Group. This was evidenced by our increased sales volume in first half of 2017. Our Group will continue to focus on managing our business risks, controlling our operating costs and improve productivity. We will take advantage of all opportunities going forward and cope with all our challenges and strive to enhance our profitability as soon as possible.