Changfeng Energy Inc. (Changfeng Energy) has reported revenue of CAD13 million for the year-end 2008, up 40.8%, compared with the revenue of CAD9.2 million in the previous year. It also reported a net income of CAD0.92 million, or CAD0.014 per share, for the year-end 2008, compared with the net income of CAD0.92 million, or CAD0.031 per share, in the previous year.
Changfeng Energy has reported CAD0.18 million income tax expense for the year-end 2008, against CAD0.61 million income tax recovery in the previous year.
The company said that gross profit margin for the year-end 2008 was 6% against 59% in the previous year.
EBITDA rose by 35.8% for fiscal 2008 to CAD2.7 million compared with the CAD2 million in the previous year.
Changfeng Energy has reported revenue of CAD0.41 million, for the fourth quarter of 2008, up 41.9%, compared with the CAD2.94 million in the year-ago quarter. Gross margin for the quarter was 64.8% in 2008 compared to 59.6% in previous year. The higher gross margin was due to the raise in higher margin piped gas sales in the revenue mix during the quarter.
Changfeng Energy cash balance for the year-end 2008 was CAD0.54 million compared with the CAD2.3 million in the previous year.
During 2008, the company connected 13,295 new residential customers compared to 7,746 in previous year, a 71.6% increase. Total residential customers for the year-end of 2008 were 37,801 compared to 24,506 in the previous year. In the same year, Changfeng Energy connected 94 new commercial customers compared to 69 in previous year, a 36.2% increase. Total commercial customers at the end of 2008 increased to 375 from 281 at the end of 2007.
Huajun Lin, chairman and chief executive officer of Changfeng Energy stated We are very pleased with our progress in 2008. Sanya City remains a hot spot for travelers as an average of 96.18 percent of hotel rooms in the city were booked in the ‘Golden Week’ (Chinese New Year) in 2009. New hotels and condominiums are being built in the City, including the world renowned resort operators such as the Mandarin Oriental Sanya Resort, and the Kempinski Sanya Resort. Both the aforementioned operators are our customers. We continue to experience high booking requests for connections from new customers and we believe that natural gas demand in Sanya City will continue its strong growth into 2009. We are currently working with the City authorities and our gas supplier to finalize additional gas supply for our Yalong Bay and Haitang Bay expansions.”
“The announced CNG station project in Changsha City, Capital of Hunan Province, is our first step to expand our natural gas distribution business into Mainland China. With the support from China National Petroleum Corporation, the largest gas supplier in China, we are confident that we will have significant growth in this industry in the future.
Changfeng Energy has secured further natural gas supplies of 11 MM M3 per annum for its first group of CNG stations in Changsha City. As an independent gas distributor in China, securing gas supply is a key factor to our success. With this additional gas supply contract in place we will be able to start our CNG vehicle filling station project soon. Said Lin.
Changfeng Energy continues to work on new business opportunities in mainland China.