Boer Power Announces 2023Interim Results
Long-term Strategic Planning, Stable Operation
Market Leading Position Further Consolidated
· In 1HY2023, the Group continued to adhere to a cautious and prudent business strategy, with a core focus on ensuring a healthy and ample cash flow level while actively expanding business development. The Group achieved this through improved fine-tuned operations and efficient coordination management, ensuring a smooth and low-cost operation of the supply chain. Furthermore, the Group continued to deepen our development in industries such as communication and data centres, rail transit, and sewage treatment for various industry clients. Despite the macroeconomic environment’s impact during the Period, the Group’s revenue slightly declined to RMB260.4 million.
· During the Period,the gross profit margin increased to 29.1% by replying on refined operations and efficient management of the Group, with a year-on- year increase of 0.4 percentage point.
· During the Period, benefiting from efficient operational efficiencies and solid foundations, the Group’s profit from operation, profit before taxation, and profit for the Period amounted to RMB24.7 million, RMB7.8 million, and RMB6.4 million, respectively.
· The Group continuously optimised the debt structure, keeping borrowing and finance costs stable, and recorded positive operating cash flow for seven and a half consecutive years, laying a solid foundation for future healthy development..
(Hong Kong, 30August 2023) Boer Power Holdings Limited (“Boer Power”, the “Company”, together with its subsidiaries the “Group”; Stock Code: 1685.HK), a leading solutions provider for intelligent electrical distribution systems and energy efficiency management in China, is pleased to announce its unaudited interim results for the six months ended 30 June 2023 (the “Period”or “1HY2023”).
Refining Operations to Drive Gross Margin Growth and Actively Expanding to Support Long-term Business Development
In 1HY2023, the international geopolitical conflicts and global central bank interest rate hikes put pressure on the economy, and both domestic and foreign commodity demand remained weak. Additionally, the results of stimulating economic measures took time to show, presenting challenges for the supply chain and business expansion for the Group.During the Period, the Group continued to adhere to a cautious and prudent business strategy, with a core focus on ensuring a healthy and ample cash flow level while actively expanding business development. The Group achieved this through improved fine-tuned operations and efficient coordination management, ensuring a smooth and low-cost operation of the supply chain. Furthermore, the Group continued to deepen our development in industries such as communication and data centres, rail transit, and sewage treatment for various industry clients. Despite the macroeconomic environment’s impact during the Period, the Group’s revenue slightly declined to RMB260.4 million (six months ended 30 June 2022: RMB279.6 million), with a year-on-year decrease of 6.9%. Despite the pressure on the supply chain caused by the external environment, the gross profit margin increased to 29.1% (six months ended 30 June 2022: 28.7%) by replying on refined operations and efficient management of the Group, with a year-on-year increase of 0.4 percentage point, resulting in a gross profit of RMB75.7 million.
During the Period, benefiting from efficient operational efficiencies and solid foundations, the Group’s profit from operation, profit before taxation, and profit for the Period amounted to RMB24.7 million (six months ended 30 June 2022: RMB26.2 million), RMB7.8 million (six months ended 30 June 2022: RMB10.9 million), and RMB6.4 million (six months ended 30 June 2022: RMB8.7 million), respectively.
In the challenging macroeconomic environment, a healthy cash flow level and asset-liability structure were the core concerns of the Group’s operations. During the Period, the Group continued to maintain strict asset and liability management to ensure the health of accounts receivable and accounts payable levels and inventory. At the same time, we continuously optimised the debt structure, keeping borrowing and finance costs stable, and recorded positive operating cash flow for seven and a half consecutive years, laying a solid foundation for future healthy development.
Intelligent Power Integrated Management Solutions Helping Customers to Reduce Costs and Increase Efficiency; Technological Advantages PromoteProduction Efficiency
In 1HY2023, the Group’s in-house big data platform, “Cloud Smart”, has been widely adopted in various scenarios, benefiting from improvements in the intelligence of distribution networks by power grid companies, and the market demand for advanced research in active distribution network planning, design, and operational methods. This platform integrates functions such as data collection, intelligent analysis, and real-time monitoring, supported by modern communication and internet technologies. It also offers advanced service products such as hardware integration systems, customised operating systems and software, energy efficiency management, and energy-saving solutions. Additionally, the Group strives to control production costs, conserve operational resources, and create more substantial returns for customers, thereby enhancing their capital value.
As an experienced service provider in the industry, the Group has over 35 years of experience, we not only provide customers with one-stop IEM solutions, but also ensure the safe operation of equipment through our technological advantages. We promote increased production efficiency by employing continuous, realtime monitoring of power terminal equipment through the internet, facilitating data collection and bidirectional transmission. Our goal is to provide high-end, customised intelligent and energysaving power management solutions for clients from different industries.
Development of Data Centres Holds Promising Prospects, Further Solidifying Leading Position in the Industry
In 2023, a year marked as a crucial period for the implementation of the Three-Year Action Plan for New Data Center Development (2021-2023) (《新型數據中心發展三年行動計劃（2021-2023年）》) by the Ministry of Industry and Information Technology, the development of data centres has received high attention. As the backbone of the digital economy, computing power’s support and empowerment roles have become more pronounced. Favourable strategy is implemented to channel computing resources from the east to the west is driven the rapid expansion of data centre scale and a continuous increase in energy consumption. The Group has long been committed to deepening its presence in the data centre distribution market, continuously optimising intelligent distribution technologies that meet the unique needs of data centre industry clients.
During the Period, the Group’s “One-Stop Data Centre Solution” service not only offers optimised intelligent distribution technologies tailored to the special needs of data center industry clients, but also actively accumulates and develops a customer base in the data centre industry. This has led to an increasing market share and substantial profits, further solidifying our leading position in the industry.
Long-term Client Partnership Remained Solidand Business in the Infrastructure Market Gradually Recovered
In 1HY2023, the Group has maintained enduring and stable cooperative relationships with long-term clients, including domestic and foreign leading enterprises, industry leaders, and Fortune 500 companies. The Group tailors energy-efficient and efficient system solutions based on customer needs, ensuring timely response to various unexpected situations through realtime monitoring. Furthermore, as solutions are further advanced and more data is accumulated, the Group can upgrade services to meet ever-changing customer needs, helping them reduce costs, improve efficiency, and expand production capacity.
Meanwhile, the Group is dedicated to optimising the layout of various types of municipal construction, providing intelligent power solutions for building construction, urban rail transit, sewage treatment, and other transportation hub projects. The Group offers diverse services and tailor-made personalised solutions according to the local context. With stable economic conditions and policies that encourage infrastructure construction, the development of foundational infrastructure such as urban rail transit and sewage treatment is expected to accelerate. Leveraging the Group’s strong brand, we continuously upgrade cost-effective services to support business development.
Mr. QianYixiang, Chairman and CEO of Boer Power said, “In 1HY2023, the international financial situation was volatile, and the macroeconomic environment faced multiple uncertainties. The business environment has also been challenged.The Group adhered to a cautious and prudent business strategy, with a core focus on ensuring a healthy and ample cash flow level,ensuring a smooth supply chain and actively expanding business development. Looking ahead to the second half of 2023, despite the global economic recovery remaining subdued, China’s economy is expected to maintain high-quality development under the drive of normalised social operations and effective macroeconomic policies. With the introduction of various stimulus policies and industry support policies, the Group’s related businesses in grid intelligence, communication and data centres, urban rail transit, and sewage treatment are expected to continue to develop positively. The current business environment presents both opportunities and challenges, and the Group will adopt a cautious and flexible business strategy to achieve cost reduction and efficiency enhancement. We will maintain a healthy debt structure and cash flow level, and enhance the Group’s ability to respond to changes in the market environment. Furthermore, the Group will align with the trend of digital economy development, enhance technological, product, and service advantages, strengthen core competitiveness, strive for continuous improvement in profitability, promote sustainable business development, and create long-term value returns for shareholders.”