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GCL New Energy Holdings Limited Announces 2014 Interim Results

Constant technological innovation promote the development of green energy


(28 Nov 2014 – Hong Kong) GCL New Energy Holdings Limited (Stock Code: 00451, the “Company”) and its subsidiaries (together, the “Group”) is pleased to announce its interim results. For the six months ended 30 Sep 2014, GCL New Energy recorded revenue of HK$800.4 million and gross profit of approximately HK$57.3 million; while profit attributable to owners of the company amounted to approximately HK$39.9 million, representing a year-on-year increase of HK$48.9 million, and basic earnings per share amounted to approximately HK$0.33 cents, representing a year-on-year increase of HK$0.44 cents. The Group recorded a realized gain on embedded derivative upon conversion of convertible redeemable bond amounting to HK$57.3 million for the six months ended 30 September 2014.

Photovoltaic Strategy Layout and Stable Growth with Printed Circuit Board

On 9 May 2014, the Subscription, Placement, Conversion and the change of company name were completed. With the funds raised by subscription and placement of new shares, the Group diversify its scope of business into renewable business, which include the development, construction, operation and management of solar energy.

For solar energy business, through different acquisitions and developments, including the acquisition of Jinhu Zhenghui 100MW solar farm project under development stage and Hengshan Jinghe 150MW solar farm project under development stage, the Group had approximately 478MW of solar farm projects under construction as at 30 September 2013. In additional, the group acquired Inner Mongolia Xiangdao solar farm project under development with an aggregated capacity of 161MW on 6 October 2014. For printed circuit board business, revenue contributed to HK$800.4 million, and gross profit margin was 7.2% for the six months ended 30 September 2014.The Group will continue to implement stringent cost control measures to different production cycles of printed circuit board business so as to reduce production cost and improve the gross profit margin.

Seizing Market Opportunities and Be a Leading Photovoltaic Power Plant Enterprise

For the bright view of development of photovoltaic industry, GCL New Energy has deployed Long-term development strategy for becoming a Leading Photovoltaic Power Plant Enterprise to strengthen its foundation. GCL New Energy conducts its project development works mainly in the forms of inhouse development, joint development, merger and acquisition and cooperation. As at 30 September 2014, the Company has completed the approval/filing works for the Zhongwei project in Ningxia Region, the Jinhu Zhenghui project in Jiangsu Province and the Hengshan Jinghe project in Shaanxi Province and entered into various formal cooperation agreements for a number of projects. The Group has commenced the constructions for projects with capacities approximately 478MW and also implemented regional distribution strategies in regions.

For funds management, in light of the liquidity tightening in the market, the Company has strengthened its communications with banks and various financial institutions to expand its financing avenues and optimize debt structure, which allowed its balance sheet to remain liquid and healthy and control finance cost. Finance costs amounting to HK$12.6 million (2013: HK$15.1 million) represented a decrease of 16.6%.

Looking forward, Mr. Tang Cheng, Chairman of the Group, said, “The Company will focus on the development of in-house development capacity and accumulation of self-developed projects. The Company will also focus on the development of carefully selected regions in response to the prevailing conditions of photovoltaic market. The Company will adopt strict fund management and investment management initiatives, perfect its project manager responsibility system and improve its information management platform. The Company will promote the development of green energy through constant technological innovation. ”

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About GCL New Energy Holdings Limited (stock code: 0451.HK)

GCL New Energy Holdings Limited (“GCL New Energy”) is a global leader of new energy focusing on development, construction and operation of solar power, energy storage, energy conservation, smart micro-grid and distributed energy. GCL New Energy has a world-class R&D team and management team and possesses rich experience in development, construction, operation, maintenance, investment and financing and innovation with respect to solar power systems and photovoltaic power station projects.

With our philosophy of “promoting the development of green energy through constant technological innovation”, GCL New Energy strives to create the greatest value for shareholders, providing safe, clean, economy, green new energy for our society and making bluer skies, cleaner water and greener field and better living conditions.

For more information about GCL New Energy, please visit the company’s website at http://en.gclnewenergy.com

Press Enquiry:

GCL New Energy Holdings Limited:
IR Contact:
Mr. Tien Hsiang Chau Tel: (852) 3761 3262 Email: thchau@gcl-power.com.hk
Ms. Amy Song Tel: (86) 512 6696 7977 Email: amysong@gcl-power.com
Ms. Gu Lanlan Tel: (86) 25 8566 6969 Email: gulanlan@gcl-power.com
Mr. Tony Xiang Tel: (852) 3761 3296 Email: tonyxiang@gclnewenergy.com
Ms. Sheng Xin Tel: (86)25 8566 6859 Email: shengxin@gcl-power.com

Media Contact:
Ms. Peng TingTing Tel: (86)25 8566 6832 Email: pengtingting_nj@gcl-power.com

Wonderful Sky Financial Group:
Ms. Erica Tao Tel: (852) 6221 2839 Email: ericatao@wsfg.hk
Ms. Tiffany Ruan Tel: (852) 6709 9571 Email: tiffanyruan@wsfg.hk