HONG KONG, Mar 31, 2020 – (ACN Newswire) – VPower Group International Holdings Limited ("VPower Group" or the "Group", stock code: 1608.HK), a leading DPG station owner and operator in Southeast Asia announced today its annual results for the year ended 31 December 2019. Despite the challenges in global business environment in 2019, the Group's business and operations were proven to be resilient and the Group managed to record a satisfactory revenue growth of 15.4% to HK$ 2,794.0 million. The gross profit grew by 4.3% to HK$737.2 million with a gross profit margin of 26.4%; while EBITDA rose by 37.3% to HK$853.2 million and net profit increased 33.0% to HK$ 283.6 million.

Business Review

As for SI business, with 20 years of operational experience in SI business, the Group continued to strengthen its leadership in the global SI market and recorded revenue of HK$1,756.5 million (2018: HK$1,579.0) for the year ended 31 December 2019, representing a year-on-year growth of 11.2%. This was mainly attributable to sales to satisfy the increasing demand from power reserve market and rapid development of data centers and marine market.

IBO segment recorded a revenue of HK$1,037.5 million for the year ended 31 December 2019 (2018: HK$ 841.7 million), representing a year-on-year growth of 23.3%. The increase was primarily contributed by revenue generated from the new projects in Myanmar and Sri Lanka.

In 2019, the Group continued to expand its business presence in Myanmar and further consolidated its leadership as an independent power producer in Myanmar by commencing two new gas-fired distributed power stations with total installed capacity of 114.4MW. In mid-2019, the Group was awarded a public tender for a 20MW gas-fired power project (with planned installed capacity of 23.2MW). At the same time, the consortium comprising the Group's members and China National Technical Import & Export Corporation was awarded three power projects with an aggregate contract capacity of 900MW (with total planned installed capacity of 1,059.5MW). Accordingly, the Group is building the country's first LNG-to-power station.

Seeing the growth in electricity demand and business opportunities in Sri Lanka, the Group has set foot in the market by successfully securing two diesel-fired power projects in the country through public tenders. The projects with a total installed capacity of 54.9MW commenced commercial operation in mid-2019.

Furthermore, the Group secured a gas-fired power project in Indonesia with planned installed capacity of 18.7MW for a contract term of 15 years which is expected to commence operation in the second half of 2020.

Outlook

Regardless of the signs of economic recovery and ease of trade disputes towards the end of 2019, the start of year 2020 was unsettled by the outbreak of novel coronavirus (COVID-19) which has brought a damaging impact to all walks of life across different countries. Attributable to the Group's strategic business footprint in different countries and the flexible management system it built over the years, its operation remains stable and healthy albeit minor operational disruptions with new project development largely on track.

The Group sees a strong demand for distributed power solutions in countries in Southeast Asia, Latin America and Europe. The Group expects the total installed capacity of its project portfolio (including the projects under joint venture) to reach around 1,900WW by the end of 2020 from currently 752.7MW. As a result, the Group is confident to achieve a strong growth in the years ahead.

The Group will continue to focus on materializing the projects in pipeline in the short term, in particular, the newly awarded projects in Myanmar. It is expected the four new projects in Myanmar will commence commercial operation in the second quarter of 2020. In Sri Lanka, the Group announced in February 2020 that it secured new projects with planned installed capacity of 38.8MW. The projects are expected to commence commercial operation in the second quarter of 2020. Together with its existing 54.9MW operating projects, the Group's total installed capacity in the country will reach close to 100MW. For the projects in the United Kingdom (Doncaster Project) and Indonesia (Dumai Project), the Group expects them to commence commercial operation within this year.

Mr Ambrose Lee, Chief Strategy Officer and Head of Capital Markets/Corporate Finance of VPower Group, remarked, "Backed by the market demand for distributed power solutions, our strong pipelines and solid business foundation, we are confident to maintain a strong growth in the years ahead despite the market uncertainties. We will also continue to strengthen our business development, optimize our operation and improve efficiency and cost management for corporate sustainability."

In response to the recent outbreak of COVID-19, Mr. Rorce AU-YEUNG, Co-Chief Executive Officer of VPower Group added, "The outbreak of COVID-19 at the beginning of 2020 has become a threat to all countries around the world. By placing the health and safety of our staff and stakeholders as the top priority, we will closely monitor the development of the current global health emergency to ensure swift response and take all necessary prevention and controls. At all times, we are committed to creating the greatest value and sharing the accomplishment with our shareholders, and caring for the well-being of the environment."

About VPower Group International Holdings Limited
Headquartered in Hong Kong, VPower Group is an integrated expert in distributed power generation (DPG). It principally engages in power system integration (SI) business, covering designing, integrating and sale of gas-fired and diesel-fired engine-based gen-sets and power generation systems, and Investment, Building and Operating (IBO) business, involving investing in, building, leasing and operating distributed power stations to supply reliable electricity. It is one of the world's leading large gen-set system integration providers, and Southeast Asia's largest private gas-fired engine-based distributed power generation station owner and operator.



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HONG KONG, Mar 31, 2020 – (ACN Newswire) – The globally leading onshore oil rig supplier Honghua Group Limited (Ticker: 196.HK, "Honghua" or "the Company") today announced unaudited consolidated annual results for the year ending on 31 December 2019 ("the period").

During the period, centering on the principles of "Business Model Innovation, Management Innovation, Technology Innovation", Honghua continued to explore the model for high-quality sustainable development. Honghua recorded rapid growth in both operating revenue and net profit during the year, reaching a record high since its listing in 2015. Honghua's revenue from continuing operations amounted to approximately RMB4,425.7 million, representing an increase of 5.2% from RMB4,205.2 million for 2018. The profit attributable to equity shareholders increased by 30.6% from RMB82.3 million for 2018 to approximately RMB107.5 million in 2019 while basic earnings per share in 2019 was RMB2.03 cents. Honghua's oil and gas engineering service achieved major breakthroughs and the sales of core components such as electric fracturing pumps grew rapidly – revenue and profit of this service line continued to grow for a second year. In 2019, thanks to the national energy security strategy and the prime period for the development of unconventional oil and gas such as shale gas, Honghua achieved significant growth in new domestic orders, bringing the proportion to domestic sales revenue for the year reached 51%, the highest level since the listing of the Company.

OIL AND GAS ENGINEERING SERVICE BUSINESS SEGMENTS ACHIEVED MAJOR BREAKTHROUGHS ACROSS MULTIPLE AREAS IN BOTH DOMESTIC AND OVERSEAS MARKETS
In terms of drilling services, Honghua had a total of 94,018 meters in footage during the year, which is the highest workload in last three years. The turnkey project on the integration of fracturing oil testing for the first drilling rig at the shale gas platform in Changning, Sichuan has completed, marking the leap-forward breakthrough in oil services from drilling and fracturing single engineering services to platform turnkeys. During the year, Honghua's oil service team entered Chongqing market for the first time. Honghua also broke the highest footage record in a single day for the project and successfully contracted national shale gas development demonstration project in Guizhou. It has obtained project orders, which worth over USD30 million in aggregate, from international renowned oil service companies, with service term effective throughout 2020. In the Middle East, Honghua's oil service has established good reputation with its quality service, and successfully renewed the drilling project, which worth approximately USD16 million, with existing customer, COSL. Production efficiency for the year was 80.76%, up by 16.9% compared to last year.

In terms of well completion services, Honghua focused on shale gas market. The entering into of the shale gas fracturing engineering service agreement extended the scope of fracturing services from purely pumping service to comprehensive fracturing services. The number of stages for pumping service increased by 2.5 times to 3,000 in 2019. Honghua obtained RMB90 million fracturing service contract from the tight oil and gas exploration and development department of Southwest Oil & Gasfield, which is the first tight gas fracturing engineering service contract of the Company. During the period, Honghua also entered into the shale gas fracturing engineering service agreement, which worth approximately RMB50 million in aggregate, with a subsidiary of CNPG. Our goal on creating a complete set for our fracturing equipment has gradually realized on schedule. In Sichuan and Chongqing, the complete set of fracturing equipment, including 6000HP electric fracturing pumps, electric sand mixing shovel, smart control center, 105MPa high pressure manifold and flexible water tanks etc. independently invented by Honghua, has been utilized for the first time. As China's leading electric fracturing pumping service provider, Honghua serviced in Changning, Weiyuan, Rong County and Lu County, Sichuan, Fuling and Nanchuan, Chongqing and Taitema Lake, Xinjiang, covering the four major production zones in China, namely Fuling Shale Gas Field, Nanchuan Shale Gas Field, Weirong Shale Gas Field and Changning Shale Gas Demonstration Zone.

PRODUCT SALES EXCEEDED EXPECTATIONS TO NEW RECORDS
In 2019, Honghua successfully achieved breakthrough in 1 new market, obtained 11 orders from new customers and sold 24 land drilling rigs in total. Thanks to the national energy security strategy, the prime period for the development of unconventional oil and gas as well the increasing CAPEX of China's big three oil giants, Honghua achieved significant growth in new domestic orders. To highlight, Honghua obtained an order for main drilling rigs from a subsidiary of CNPC Group, which worth RMB110 million. Subsequently, Honghua signed orders for ancillary equipment such as electric system, which worth RMB60 million. Such orders were bided by 6 drilling rig manufacturers, and Honghua won all orders with its high-quality drilling rigs and outstanding aftersales services.

In terms of parts and components sales, we sold 8 sets of fracturing pumps as supporting characteristic equipment of shale gas throughout the year. Meanwhile, Honghua conducted structural optimization on electric fracturing pump, thus improving both operating efficiency and operating time of the product. We have achieved a national new record of zero default for continuous operation of 200 hours in our operation block. Flexible liquid tanks have been recognized by customers, who entered into bulk purchase orders. Hence, the sales of flexible liquid tanks increased by 40% compared to last year. During the year, the progress of creating a complete set for our fracturing equipment ran quickly. We have introduced fracturing ancillary equipment such as electric sand mixing shovel, liquid supply shovel and 105MPa high pressure manifold. In 2019, there was significant increase in the proportion of independent sales of core parts and components to total sales, reflecting the implementation of Honghua's strategic positioning of "machine-to-component". The core self-produced parts and components of Honghua, increased by 79% as compared to the corresponding period of last year.

OUTLOOK
In 2020, Honghua will seize the development opportunities in the domestic unconventional oil and gas market, adhere to the three major innovation principles, deepen the strategic structural transformation, optimize the operation and management concepts, and enhance high-quality profitability. Honghua will continue to enhance its two core business advantages in rig drilling and well completion and to conduct a transformational development plan of becoming an intelligent platform. Honghua will also respond to the national policy on energy security and increase the proportion of clean energy. We will promote the general economic and eco-friendly development solution for unconventional oil and gas exploration, facilitate the application of packaging and standardization of complete set of fracturing equipment, with 6000HP electric fracturing pump as core, implement the general eco-friendly development solution of "pumping gas with electricity and combination of gas and electricity". Meanwhile, leveraging on our competitive edges as manufacturer, and driving our services with equipment, we will further enhance the efficiency of our oil service team and project management capability, thereby further expanding our business scale and enhancing profitability.

Secondly, Honghua will continue to build up its core competitiveness with technologies. We will facilitate the research and commercialization of downhole tools, especially for twist guidance downhole tools, thus creating another feature product line of Honghua. In addition, Honghua will also enhance the upgrade of intelligence electric fracturing system, and facilitate the research and development on deep-sea mining projects such as the fluidization equipment for solidified natural gas hydrate, thus continue to inject vitality to the Company. Focusing on the oil and gas industry, Honghua will fully implement a "platform-mode" development model while leveraging the Company's advantages in oil and gas equipment technology and manufacturing capability. We plan to obtain our unique industry competitiveness by establishing a global sales network, gathering technology resources from major shareholders and offerings of oilfield service providers, and connecting upstream and downstream corporates as well as external financing and leasing solution providers. We aim to build an oil and gas industry ecosystem and achieve win-win solutions with market players.

In addition, Honghua will continue to focus on emerging markets, expand the domestic market share and explore the equipment upgrade demand as well as the demand on customized drilling rigs in OPEC countries. The macro environment has been severe; however, we will ensure the implementation of major projects in overseas markets. Looking inward, Honghua will focus on the development of new drilling rigs and our equipment improvement business in China. Our key focus will be on two future products: intelligent drilling rigs and intelligent fracturing systems, and an "intelligent" product strategy. We are continuously optimizing our precise management and effectively improving production, delivery and profitability as well as the process and quality control system. In the high-risk cycle, Honghua will strengthen the Company's cash flow management and control, implement an asset-light operation model, increase the vitality of existing assets, and improve the efficiency of capital management and operations. Leveraging its high-quality development and profitability, Honghua strives to become a global leader in equipment and technology for oil and gas exploration and development, and an integrated supplier offering a full range of energy services and solutions with comprehensive competitive strengths.

About Honghua Group Ltd
Honghua Group Ltd (Stock Code: 0196.HK, "Honghua") is the main platform for energy equipment development of China Aerospace Science & Industry Corporation ("CASIC"). As one of the leading land drilling equipment manufacturers in the world and the largest land drilling rig exporter in the PRC, Honghua is primarily engaged in developing and manufacturing land drilling equipment (drilling rigs, parts and components as well as downhole tools, etc.), completion products (including fracture package), offshore drilling module and package as well as shale gas and oil exploration and development service. Leveraging strong R&D capability, high-quality production facilities and a mature international sales network, Honghua's products have been sold to a large number of famous enterprises all over the world, across major oil-production regions such as North America, the Middle East and emerging markets including South America, South Asia, Russia, Central Asia and Africa. In the future, Honghua will continue to focus on its key businesses while increasing the resource allocation to unconventional oil and gas business and the "energy + internet" field. Honghua aims at becoming a world leading oilfield service provider.


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HONG KONG, Mar 30, 2020 – (ACN Newswire) – Hong Kong listed VPower Group International Holdings Limited (VPower Group), a leading DPG station owner and operator in Asia, announced that the Group has entered into a distribution agreement with the world's leading engine manufacturer Rolls-Royce Power Systems AG, covering the sales and maintenance of MTU engines and gensets for marine commercial and gas power generation in China.

Since the commencement of partnership in 2008, VPower Group has already integrated over 3GW of MTU power products in its power solutions around the world. Today, VPower Group is the world's largest operator of MTU power generation systems, with a wide range of applications in China and other countries. In addition to its new role as distributor, VPower Group will continue to integrate MTU gas systems as part of its own solution offerings.

Mr. Lam Yee Chun, Chairman of VPower Group, commented, "We share the same goal with Rolls-Royce to provide continuous, economical, reliable and sustainable source of power. We are glad to be its distributor and continue to offer our customers MTU products and service for both gas power generation and commercial shipping applications in China. There is great growth potential in these markets in China – and we want to exploit that potential together with Rolls-Royce."

Mr. Tobias Ostermaier, President MTU Greater China at Rolls-Royce Power Systems AG, said "We are delighted to be taking our successful and close relationship with VPower Group to a new level and welcome VPower Group as an integral part of our MTU global distribution network. VPower Group is a valuable partner bringing in knowhow and capacity of power plant design and operation in China, and most importantly, a strong network in marine industry to support to our market share expansion in China. Together with VPower Group, we want to make MTU the brand of choice for engines and systems in the Chinese commercial shipping and powergen segments and realize significant growth potential in these market segments."

Press release published by Rolls-Royce Power Systems AG is available at https://www.rrpowersystems.com/news/press-releases/press-detail/vpower_group_is_new_distributor_for_rolls_royces_mtu_solutions_in_china/?from=singlemessage



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HONG KONG, Feb 24, 2020 – (ACN Newswire) – Hong Kong listed VPower Group International Holdings Limited (VPower Group), a leading DPG station owner and operator in Asia, announced today (24 February) that the Group has entered into a power purchase agreement for two power projects with an aggregate planned installed capacity of 38.8MW in Sri Lanka recently. Together with the 54.9MW installed capacity of the renewed projects, VPower Group's total installed capacity in the country will reach close to 100MW.

"We entered into the power market in Sri Lanka in April 2019 with our fast-track distributed power solutions to alleviate local power shortage. This is our second success in a year's time which not only highlights our capability and expertise in the power industry, but also underscores the advantages of distributed power generation. We will continue to strive to support local people's desire for more reliable and stable electricity." said Mr. Earnest Cheung, Chief Commercial Officer of VPower Group. It is expected the power stations will commence commercial operation by the end of March 2020.

According to Asian Development Bank, Sri Lanka is entering into a new stage of development and, within a few years, will be ready to reach upper-middle-income status. Supported by the growing gross domestic product and improving living standard of the local people, it is expected that the electricity demand in Sri Lanka will continue to increase.



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