· During the COVID-19 pandemic, the Group has actively adjusted its business strategies under the premise of developing high-quality business while maintaining its competitive edges in pricing by leveraging the advantages from its sizable scale and high technology. Affected by the unfavorable factors such as the ongoing global COVID-19 pandemic and delayed demand, the revenue of the Group was RMB 572.6 million.
· Benefited from the Group’s continuous optimization of technology, product services and sales structure, the gross profit margin continued to increase and reached 33.5%, representing a year-on-year increase of 4.5 percentage points, while the gross profit was RMB192.0 million.
· Profit from operations, profit before taxation and profit for the year amounted to RMB124.1 million, RMB96.7 million and RMB12.5million respectively, representing a year-on-year increase of 57.5%, 125.6% and 33.5% respectively.
· The Group has significantly optimized its debt structure and reduced borrowings, cut finance costs on an ongoing basis, and continued to improve its gearing structure, thereby recording positive operating cash flows for six consecutive years.
(Hong Kong, 25 March 2022) 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 audited annual results for the year ended December 31, 2021 (the “Year”or “2021”).
Maintaining Its Competitive Edges in Pricing, Enhancing Its Overall Operating Efficiency
While the global economy gradually recovered from the COVID-19 pandemic, the pace of recovery varies widely across different countries. The new variant, Omicron, has wreaked havoc in various countries, dragging down the progress of their economic recovery. Amidst the uncertain economic environment, the Group has actively adjusted its business strategies under the premise of developing high-quality business while maintaining its competitive edges in pricing by leveraging the advantages from its sizable scale and high technology.Meanwhile, under the refined operation, the Group has provided high-quality services for the target customer group with high efficiency and better effect. In addition, through professional operation and management, the Group has implemented its business vision and business policies, focused on businesses with profit and development potential, and actively developed the Group’s integrated commodity-linked services, thereby enhancing its overall operating efficiency.
During the year, affected by the unfavorable factors such as the ongoing global COVID-19 pandemic and delayed demand, the revenue of the Group was RMB572.6 million (2020: RMB816.7 million), representing a year-on-year decrease of 29.9%. However, having benefited from the Group’s continuous optimization of technology, product services and sales structure, the gross profit margin continued to increase and reached 33.5% (2020: 29.0%), representing a year-on-year increase of 4.5 percentage points, while the gross profit was RMB192.0 million. Profit from operations, profit before taxation and profit for the year amounted to RMB124.1 million (2020: RMB78.8 million), RMB96.7 million (2020: RMB42.8 million) and RMB12.5 million (2020: RMB9.3 million)respectively, representing a year-on-year increase of 57.5%, 125.6% and 33.5% respectively.
The Group continued to implement stringent internal control system, strictly monitor and manage current assets and liabilities, its trade receivables and inventory levels maintained healthy. Meanwhile, in order to fully control internal costs and expenses, the Group has made good budgets, strengthened management efforts, and reduced unnecessary expenditures, thereby enhancing profitability. During the year, as a continued effort to optimize its debt structure, the Group has significantly reduced borrowings, cut finance costs on an ongoing basis, and continued to improve its gearing structure, thereby recording positive operating cash flows for six consecutive years.
Through Its Own Big Data Platform “Cloud Smart”, Successfully ImprovingThe Power Consumption Database of Various Industries
As of 31 December 2021, the business of the Group can be divided into the following two big segments: Intelligent Electrical Integrated Management Solutions (“IEM Solutions”); and Components and Spare Parts Business (“CSP Business”). Through its own big data platform “Cloud Smart” and based on modern communication and Internet technology, the Group has developed solutions including hardware integrated systems, customised operating systems and software, as well as one-stop intelligent electrical integrated management solutions for products and services used in online and offline operation and maintenance management, in an effort to help customers achieve intelligent power distribution and power consumption, thereby enhancing performance management capabilities. In addition to ensuring the safe operation of equipment and enhancing efficiency through its advantages in the field of technology, the Group also made use of the Internet to monitor electrical terminal equipment around the clock for data collection and two- way transmission.
As a leading service provider in the industry with more than 35 years of extensive industry experience, the Group has first-mover competitive advantages in providing customers with almost unique one-stop intelligent electrical integrated management solutions in the industry. In recent years, the Group is committed to improving the power consumption database of various industries and achieving remarkable results. In addition, Boer Power has accumulated strong intelligent power management technology over the years. The Group not only provides safe and stable intelligent power distribution services, but also strives to control operating costs, thereby creating actual business value and benefits for customers.
Adheringto the National Policies, Further Consolidating Market Leadership
With the rapid development of new-generation information technologies such as 5G, cloud computing, and artificial intelligence, the accelerated integration of information technology and traditional industries, and the booming development of the digital economy, data centers, as the physical carrier for the operation of information systems in various industries, have become an indispensable key infrastructure for economic and social operations and played a vital role in the development of the digital economy. Over the years, the Group has devoted considerable efforts in exploring the data center power distribution market with an aim to continuously optimise its power distribution technology, striving to seek breakthroughs to meet the changing needs of the market. Meanwhile, leveraging its “One-stop Data Center Solution” service, the Group’s services have a positive brand image in the market, which has led to a continuous increase in its market share. The Group will fully seize the development opportunities of the digital economy and leverage its strong brand power to bring more revenue to the Group.
Besides, the Group has been committing to providing diversified services and customised solutions for various infrastructure construction and municipal construction projects, including intelligent power solutions to buildings, rail transit, wastewater treatment and different types of transportation hub projects. As the government continued to accelerate the construction of infrastructures such as urban rail transit and urban wastewater treatment, the Group’s business development will benefit from such growth.
During the Year, the Group ranked among the tops in terms of market share in the high-end markets and built a stable long-term relationship with long-term customers, including a number of Top 500 companies in the world and large-scale international enterprises both at home and abroad. Adhering to the philosophy of providing reliable quality services and products, the Group has been customising intelligent, energy conserving and highly efficient system solutions based on customer needs, and offered long-term maintenance and consultancy services and relevant products, which were widely recognized by the market. Meanwhile, the continuous cooperation with a number of domestic leading companies in the communication and data centre operation sectors enabled the Group to garner a well- established presence and establish sound brand reputation in the industry.
In terms of overseas market, with the ongoing COVID-19 pandemic remained out of control overseas and the implementation of a series of restrictions by various overseas countries, the Group’s overseas infrastructure projects under construction or planning had not shown much progress. This posed a huge challenge to the Group in the bidding and implementation of overseas projects during the year. Nonetheless, in the face of challenges, the Group’s subsidiary in Spain actively adjusted its operation strategies and continued to provide high-end power distribution products and services for customers in Europe and other overseas countries, which contributed as a stable source of revenue to the Group.
Mr. Qian Yixiang, Chairman and CEO of Boer Power said, “The COVID-19 pandemic still threatens the world, coupled with the impact of geopolitics and war conflicts, adding new uncertainties to the recovery and prospect of the global economy. Amidst the highly dynamic environment, the Group remained committed to innovation and focused its investment on research and development so as to maintain and continuously enhance the Group’s leading technological advantages and strengths in terms of power cloud data platform. Looking into 2022, on the basis of its leading technological advantages in terms of intelligent electrical management data platform, the Group will follow the major trends of digital economy and 5G, at the same time adhering to the favourable national policies for infrastructure such as urban rail transit to build up the core competitiveness of its products in the long run with the objectives to resume the growth of its sales business and further improve its profitability. Adhering to the solid and prudent operation strategy, the Group will strictly review the project risks and strive to resume sales growth while continuously enhancing and optimizing its own technologies, products and services. In addition, through continuously strict internal control and refined management, the Group will continue to optimize the gearing structure, further enhance profitability, and strive to create more value for the interests of shareholders.”
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