CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”,
together with its subsidiaries, the “Group”), an energy provider in
the People’s Republic of China (the ”PRC” or “China”), announces
that the Company has filed its unaudited condensed interim
consolidated financial results for the three-month and six-month
periods ended June 30, 2022 (“Q2 2022 and 1H 2022”
respectively).
Q2 2022 financial highlights
Continuing Operations
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|
|
|
|
|
In millions |
Q2 2022 |
Q2 2021 |
Change |
% |
Q2 2022 |
Q2 2021 |
Change |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
Continuing Operations |
|
|
|
|
|
|
|
Revenue |
84.0 |
|
86.2 |
|
(2.2 |
) |
-3 |
% |
16.5 |
|
16.6 |
|
(0.1 |
) |
Gross
Profit |
23.2 |
|
34.5 |
|
(11.3 |
) |
-33 |
% |
4.6 |
|
6.6 |
|
(2.0 |
) |
Gross
Profit Margin |
27.6 |
% |
40.0 |
% |
-12.4 |
% |
|
27.6 |
% |
40.0 |
% |
-12.4 |
% |
Net
Profit |
0.1 |
|
14.9 |
|
(14.8 |
) |
-99 |
% |
0.1 |
|
2.9 |
|
(2.8 |
) |
Adjusted
net Profit (loss) |
(4.2 |
) |
13.0 |
|
(17.2 |
) |
-133 |
% |
(0.7 |
) |
2.5 |
|
(3.2 |
) |
EBITDA |
16.4 |
|
28.3 |
|
(11.9 |
) |
-42 |
% |
3.2 |
|
5.4 |
|
(2.2 |
) |
Adjusted EBITDA |
12.1 |
|
26.4 |
|
(14.3 |
) |
-54 |
% |
2.4 |
|
5.0 |
|
(2.6 |
) |
|
|
|
|
|
|
|
|
Revenue in Q2 2022 was RMB84.0 million (approx.
CAD16.5 million), a decrease of RMB2.2 million (approx. CAD0.1
million), or 3%, from RMB86.2 million (approx. CAD16.6 million) for
the three-month period ended June 30, 2021 (“Q2 2021”). The drop in
revenue was attributable to the outbreak of COVID-19 in Sanya City
in March 2022 which worsened in April and May of 2022, resulting in
the drop in demand for natural gas from commercial customers.
Gross profit in Q2 2022 was RMB23.2 million
(approx. CAD4.6 million), a decrease of RMB11.3 million (CAD2.0
million) or 33% from RMB34.5 million (approx. CAD6.6 million) in Q2
2021. Overall Gross margin in Q2 2022 was 27.6%, a
decrease of 12.4 percentage point from 40.0% in Q2 2021.
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|
|
|
In millions |
Q2 2022 |
Q2 2021 |
Change |
% |
Q2 2022 |
Q2 2021 |
Change |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
Continuing Operations |
|
|
|
|
|
|
|
Net profit for the period |
0.1 |
|
14.9 |
|
(14.8 |
) |
-99 |
% |
0.1 |
|
2.9 |
|
(2.8 |
) |
Non-recurring items |
|
|
|
|
|
|
|
Fair
value change on derivative financial instrument |
(4.5 |
) |
(2.6 |
) |
(1.9 |
) |
72 |
% |
(0.9 |
) |
(0.5 |
) |
(0.4 |
) |
Recognition of share-based payment expenses |
0.2 |
|
0.7 |
|
(0.5 |
) |
-71 |
% |
0.1 |
|
0.1 |
|
(0.0 |
) |
Adjusted net profit (loss) for the period
(non-IFRS) |
(4.2 |
) |
13.0 |
|
(17.2 |
) |
-133 |
% |
(0.7 |
) |
2.5 |
|
(3.2 |
) |
|
|
|
|
|
|
|
|
Net profit in Q2 2022 was RMB0.1 million
(approx. CAD0.1 million), a decrease of RMB14.8 million (approx.
CAD2.8 million), or 99%, from RMB14.9 million (approx. CAD2.9
million) in Q2 2021. Net profit in Q2 2022 included non-recurring
items. On a comparable basis, after excluding the non-recurring
items: the fair value change on derivative financial instrument of
RMB4.5 million (approx. CAD0.9 million) and the recognition of
share-based payments of RMB0.2 million (approx. CAD0.1 million),
the adjusted net loss in Q2 2022 (non-IFRS) was RMB4.2 million
(approx. CAD0.7 million), a decrease of RMB17.2 million (approx.
CAD3.2 million) or 133% from RMB13.0 million (approx. CAD2.5
million) in Q2 2021.
Basic earnings per share (“EPS”) in Q2 2022 was
RMB0.04 (CAD0.01) per share. Adjusted loss per share in Q2 2022 was
RMB0.06 (CAD0.01) per share (non-IFRS).
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|
|
|
|
|
|
In millions |
Q2 2022 |
Q2 2021 |
Change |
% |
Q2 2022 |
Q2 2021 |
Change |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
Continuing Operations |
|
|
|
|
|
|
|
EBITDA for the period |
16.4 |
|
28.3 |
|
(11.9 |
) |
-42 |
% |
3.2 |
|
5.4 |
|
(2.2 |
) |
Non-recurring items |
|
|
|
|
|
|
|
Fair
value change on derivative financial instrument |
(4.5 |
) |
(2.6 |
) |
(1.9 |
) |
72 |
% |
(0.9 |
) |
(0.5 |
) |
(0.4 |
) |
Recognition of share-based payment expenses |
0.2 |
|
0.7 |
|
(0.5 |
) |
-71 |
% |
0.1 |
|
0.1 |
|
(0.0 |
) |
Adjusted EBITDA for the period |
12.1 |
|
26.4 |
|
(14.3 |
) |
-54 |
% |
2.4 |
|
5.0 |
|
(2.6 |
) |
|
|
|
|
|
|
|
|
EBITDA (Non-IFRS measure) in Q2 2022 was RMB16.4
million (approx. CAD3.2 million), a decrease of RMB11.9 million
(approx. CAD2.2 million), or 42%, from RMB28.3 million (approx.
CAD5.4 million) in Q2 2021. EBITDA in Q2 2022 included
non-recurring items. On a comparable basis, after excluding the
non-recurring items: the fair value change on derivative financial
instrument of RMB4.5 million (approx. CAD0.9 million) and the
recognition of share-based payments of RMB0.2 million (approx.
CAD0.1 million), the adjusted EBITDA in Q2 2022 (non-IFRS) was
RMB12.1 million (approx. CAD2.4 million), a decrease of RMB14.3
million (approx. CAD2.6 million), or 54%, from RMB26.4 million
(approx. CAD5.0 million) in Q2 2021.
1H 2022 financial highlights
Continuing Operations
|
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|
|
|
|
|
In millions |
1H 2022 |
1H 2021 |
Change |
% |
1H 2022 |
1H 2021 |
Change |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
Continuing Operations |
|
|
|
|
|
|
|
Revenue |
179.4 |
|
167.4 |
|
12.0 |
|
7 |
% |
35.2 |
|
32.3 |
|
2.9 |
|
Gross
Profit |
60.5 |
|
68.1 |
|
(7.6 |
) |
-11 |
% |
11.9 |
|
13.1 |
|
(1.2 |
) |
Gross
Profit Margin |
33.8 |
% |
40.7 |
% |
-6.9 |
% |
|
33.8 |
% |
40.7 |
% |
-6.9 |
% |
Net
Profit |
11.4 |
|
17.8 |
|
(6.4 |
) |
-36 |
% |
2.2 |
|
3.4 |
|
(1.2 |
) |
Adjusted
net Profit |
1.0 |
|
21.8 |
|
(20.8 |
) |
-95 |
% |
0.2 |
|
4.2 |
|
(4.0 |
) |
EBITDA |
47.1 |
|
42.9 |
|
4.2 |
|
10 |
% |
9.2 |
|
8.3 |
|
0.9 |
|
Adjusted EBITDA |
36.7 |
|
46.9 |
|
(10.2 |
) |
-22 |
% |
7.2 |
|
9.1 |
|
(1.9 |
) |
|
|
|
|
|
|
|
|
Revenue in 1H 2022 was RMB179.4 million (approx.
CAD35.2 million), an increase of RMB12.0 million (approx. CAD2.9
million), or 7%, from RMB167.4 million (approx. CAD32.3 million)
for the six-month period ended June 30, 2021 (“1H 2021”). Despite
of the negative impact of COVID-19 lock-down during April and May
2022, total revenue of 1H 2022 increased as compared to 1H 2021 and
this was mainly attributed to the increase in revenue from
residential customers of pipeline installation and connection as
the activities of construction of temporary housing under
activation of city redevelopment plan only experienced a short
period of suspension during lock-down in April 2022.
Gross profit in 1H 2022 was RMB60.5 million
(approx. CAD11.9 million), a decrease of RMB7.6 million (CAD1.2
million) or 11% from RMB68.1 million (approx. CAD13.1 million) in
1H 2021. Overall Gross margin in 1H 2022 was 33.8%, a decrease of
6.9 percentage point from 40.7% in 1H 2021.
|
|
|
|
|
|
|
|
In millions |
1H 2022 |
1H 2021 |
Change |
% |
1H 2022 |
1H 2021 |
Change |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
Continuing Operations |
|
|
|
|
|
|
|
Net profit for the period |
11.4 |
|
17.8 |
(6.4 |
) |
-36 |
% |
2.2 |
|
3.4 |
(1.2 |
) |
Non-recurring items |
|
|
|
|
|
|
|
Fair
value change on derivative financial instrument |
(10.8 |
) |
3.0 |
(13.8 |
) |
-460 |
% |
(2.1 |
) |
0.6 |
(2.7 |
) |
Recognition of share-based payment expenses |
0.4 |
|
1.0 |
(0.6 |
) |
-64 |
% |
0.1 |
|
0.2 |
(0.1 |
) |
Adjusted net profit for the period (non-IFRS) |
1.0 |
|
21.8 |
(20.8 |
) |
-95 |
% |
0.2 |
|
4.2 |
(4.0 |
) |
|
|
|
|
|
|
|
|
Net profit in 1H 2022 was RMB11.4 million
(approx. CAD2.2 million), a decrease of RMB6.4 million (approx.
CAD1.2 million), or 36%, from RMB17.8 million (approx. CAD3.4
million) in 1H 2021. Net profit in 1H 2022 included non-recurring
items. On a comparable basis, after excluding the non-recurring
items: the fair value change on derivative financial instrument of
RMB10.8 million (approx. CAD2.1 million) and the recognition of
share-based payments of RMB0.4 million (approx. CAD0.1 million),
the adjusted net profit in 1H 2022 (non-IFRS) was RMB1.0 million
(approx. CAD0.2 million), a decrease of RMB20.8 million (approx.
CAD4.0 million) or 95% from RMB21.8 million (approx. CAD4.2
million) in 1H 2021.
Basic earnings per share (“EPS”) in 1H 2022 was
RMB0.25 (CAD0.05) per share. Adjusted EPS in 1H 2022 was RMB0.02
(CAD0.01) per share (non-IFRS).
|
|
|
|
|
|
|
|
In millions |
1H 2022 |
1H 2021 |
Change |
% |
1H 2022 |
1H 2021 |
Change |
(except for % figures) |
RMB |
RMB |
RMB |
|
CAD |
CAD |
CAD |
Continuing Operations |
|
|
|
|
|
|
|
EBITDA for the period |
47.1 |
|
42.9 |
4.2 |
|
10 |
% |
9.2 |
|
8.3 |
0.9 |
|
Non-recurring items |
|
|
|
|
|
|
|
Fair
value change on derivative financial instrument |
(10.8 |
) |
3.0 |
(13.8 |
) |
-460 |
% |
(2.1 |
) |
0.6 |
(2.7 |
) |
Recognition of share-based payment expenses |
0.4 |
|
1.0 |
(0.6 |
) |
-64 |
% |
0.1 |
|
0.2 |
(0.1 |
) |
Adjusted EBITDA for the period |
36.7 |
|
46.9 |
(10.2 |
) |
-22 |
% |
7.2 |
|
9.1 |
(1.9 |
) |
|
|
|
|
|
|
|
|
EBITDA (Non-IFRS measure) in 1H 2022 was RMB47.1
million (approx. CAD9.2 million), an increase of RMB4.2 million
(approx. CAD0.9 million), or 10%, from RMB42.9 million (approx.
CAD8.3 million) in 1H 2022. EBITDA in 1H 2022 included
non-recurring items. On a comparable basis, after excluding the
effects of non-recurring items: the fair value change on derivative
financial instrument of RMB10.8 million (approx. CAD2.1 million)
and the recognition of share-based payments of RMB0.4 million
(approx. CAD0.1 million), adjusted EBITDA in 1H 2022 was RMB36.7
million (approx. CAD7.2 million), a decrease of RMB10.2 million
(approx. CAD1.9 million), or 22%, from RMB46.9 million (approx.
CAD9.1 million) in 1H 2021.
The performances of all segments of the Company
have been impacted by several temporary city-wide “lock-down”
controls implemented by the government due to COVID-19 infections.
During the lock-down periods most people were required to stay home
and most businesses and social activities were required to remain
closed. This has slowed down the progresses of our ongoing
projects, including gas distribution services, bringing in
customers for the integrated smart energy system and EV battery
swap services and will directly impact the Group’s results for the
3rd quarter this year. However, this will not affect the Company’s
strategic direction and development, and we are determined to make
efforts to put us back on track despite of the continuous impact of
the COVID-19 pandemic.
The unaudited condensed interim consolidated
financial results and Management’s Discussion and Analysis
(MD&A) can be downloaded from www.SEDAR.com or from the
Company's website at www.cfenergy.com.
About CF Energy Corp. (Previously known
as: Changfeng Energy Inc.)
CF Energy Corp. is a Canadian public company
currently traded on the Toronto Venture Exchange (“TSX-V”) under
the stock symbol “CFY”. It is an integrated energy provider and
natural gas distribution company (or natural gas utility) in the
PRC. CF Energy strives to combine leading clean energy technology
with natural gas usage to provide sustainable energy to its
customer base in the PRC.
CONTACT INFORMATION
Corporate Investment
RelationsInvestor.relations@changfengenergy.cn
Charles Wang Executive Assistant to CEO & Chair of the
Board zhaoyu.wang@changfengenergy.cn
Frederick Wong Director of the
Board fred.wong@changfengenergy.cn
Mike Liu VP Capital Market mike.liu@changfengenergy.cn
Forward-Looking Statements
Certain statements contained in this news
release constitute forward-looking statements and forward-looking
information (collectively, “Forward-Looking Statements”). All
statements, other than statements of historical fact, included or
incorporated by reference in this document are Forward-Looking
Statements, including statements regarding activities, events or
developments that the Company expects or anticipates may occur in
the future (including, without limitation, no significant
adjustments to the gas selling price and charges for related
services imposed by the relevant PRC government, the tourism
industry continues to recover from COVID-19 impact and no delay in
the development of the electric vehicle battery swap stations or
the Haitang Bay Integrated Smart Energy Project). These
Forward-Looking Statements can be identified by the use of
forward-looking words such as “will”, “expect”, “intend”, “plan”,
“estimate”, “anticipate”, “believe” or “continue” or similar words
or the negative thereof. No assurance can be given that the plans,
intentions or expectations or assumptions upon which these
Forward-Looking Statements are based will prove to be correct and
such Forward-Looking Statements included in this news release
should not be unduly relied upon. Although management believes that
the expectations represented in such Forward-Looking Statements are
reasonable, there can be no assurance that such expectations will
prove to be correct. Such Forward-Looking Statements are not a
guarantee of performance and involve known and unknown risks,
uncertainties, assumptions and other factors that may cause the
actual results, performance or achievements to differ materially
from the anticipated results, performance or achievements or
developments expressed or implied by such Forward-Looking
Statements. These factors include, without limitation, no
significant and continuing adverse changes in general economic
conditions or conditions in the financial, tourism, and gas
distribution and electric vehicle markets or delays in the
development of key projects. Readers are cautioned that all
Forward-Looking Statements involve risks and uncertainties,
including those risks and uncertainties detailed in the Company’s
filings with applicable Canadian securities regulatory authorities,
copies of which are available at www.sedar.com. The Company urges
readers to carefully consider those factors. The Forward-Looking
Statements included in this news release are made as of the date of
this document and the Company disclaims any intention or obligation
to update or revise any Forward-Looking Statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable securities legislation. This news
release does not constitute an offer to sell or solicitation of an
offer to buy any of the securities described herein and accordingly
undue reliance should not be put on such. This news release
contains future oriented financial information and financial
outlook information (collectively, "FOFI") (including, without
limitation, statements regarding expected average production), and
are subject to the same assumptions, risk factors, limitations and
qualifications as set forth in the above paragraph. The FOFI has
been prepared by management to provide an outlook of the Company's
activities and results, and such information may not be appropriate
for other purposes. The Company and management believe that the
FOFI has been prepared on a reasonable basis, reflecting
management's reasonable estimates and judgments, however, actual
results of operations of the Company and the resulting financial
results may vary from the amounts set forth herein. Any FOFI speaks
only as of the date on which it is made, and the Company disclaims
any intent or obligation to update any FOFI, whether as a result of
new information, future events or results or otherwise, unless
required by applicable laws.
Non-IFRS Financial
Measures.
This news release contains financial terms that
are not considered in the International Financial Reporting
Standards ("IFRS"): EBITDA, Adjusted EBITDA and Adjusted Net
Profit. These financial measures, together with measures prepared
in accordance with IFRS, provide useful information to investors
and shareholders, as management uses them to evaluate the operating
performance of the Company. The Company's determination of these
non-IFRS measures may differ from other reporting issuers, and
therefore are unlikely to be comparable to similar measures
presented by other companies. Further, these non-IFRS measures
should not be considered in isolation or as a substitute for
measures of performance or cash flows prepared in accordance with
IFRS. These financial measures are included because management uses
this information to analyze operating performance and liquidity.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release
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