CPP Achieved Profit Turnaround in 2013
HONG KONG, April 1, 2014 /PRNewswire/ –
— Actively develop electronic public procurement platform
— Recorded revenue of HK$90M in the year
Financial Highlights
Year ended 31 December
HK$’000 2013 2012
Revenue 90,003 277,123
Gross Profit (loss) 80,197 (32)
Profit (loss) for the year 37,403 (14,575)
attributable to owners of
the Company
Earnings (loss) per share (HK cents) 0.33 (0.16)
The board of directors of China Public Procurement Limited (HKEx stock code: 1094, the “Company” or “CPP”) announced its annual results and financial position for the year ended 31 December 2013. Profit for the year attributable to owners of the Company was HK$37.40M (2012: loss of HK$14.58M). CPP achieved profit turnaround in the year 2013.
During the period, the Company recorded revenue of HK$90.00M (2012: HK$277.12M) mainly attributable to the professional services offered in the electronic transaction platform of China Public Procurement Online Platform. The profit attributable to shareholders was HK0.33 cents per share (2012: a loss of HK0.16 cents per share).
Business Review
Public Procurement Business
During the year, the Company continued to be in active development of its public procurement business, the income from which was reflected in the results. The Company laid out its structure which comprises the entire industry chain in public procurement, with its main electronic public procurement platform and 22 branch platforms, funded and operated by CPP, in continual construction, furthering its involvement in establishment of procurement platforms on regional and industry levels. During the period under review, trading platforms were established and commenced trial operation in Hubei Province, Inner Mongolia Autonomous Region and Panjin City, and the government procurement platforms and bulk commodity trading platforms in Qinghai Province and Jining City began to turn profitable. Initial deliberation and preliminary work were completed for military resources and advanced education institutions procurement platforms.
Consensus has been reached in June between the Company, our PRC Partner Guocai Science & Technology Company Limited, and a facilitating strategic collaborator for the project of the global public procurement services centre, for which an exclusive licensing cooperation agreement was signed.
Development in Qianhai
In April 2013, the Company was approved by the Authority of Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone of Shenzhen to establish a subsidiary in Qianhai, which will provide financial information services for the users of the financial service platform, and integrated financial solutions for small and medium enterprises involved in governmental procurements. As at the end of 2013, cooperation agreements were entered into between the Company and the provincial governments of Hubei and Inner Mongolia, and joint development of financial services with CITIC Bank was secured in order to achieve successful commencement of our business.
Energy Management Contracting Services
Regarding the Energy Management Contracting Services (EMC) business, the Company continued to participate in public lighting renovation services in various cities in 2013, providing our customers integrated services including energy efficiency design, procurement, construction, training and operational maintenance
Prospects
On 26 March 2014, the service product “GongcaiTong” was launched to promote cross-platform procurement by suppliers on a nationwide basis, while providing third-party services such as collated information customization, safety authentication, credit check, electronic bills, payment and financing. Its scope of service will gradually be expanded to facilitate inter-connection with the government procurements centres of 22 provinces, cities or districts including Hubei, Qinghai, Hebei, Shandong, Shenzhen and Shenyang.
On the financial service business front, the Company has entered into partnerships with Everbright Bank, Minsheng Bank and China Merchants Bank since the beginning of 2014, and will continue to identify new partner banks in future. Hubei Province and Inner Mongolia Autonomous Region will represent important regions for trial operation, while the Company expand the business to other regions. In the meantime, the Company will improve its business processing platform and continue to introduce insurance, credit check and payment as three value-added businesses.
Mr. Cheng Yuanzhong, Joint Chairman of the Company, said, “Looking forward, we will continue to explore and expand our business, so as to maximize the returns to shareholders.”
About China Public Procurement Limited
China Public Procurement Limited is listed on the Main Board of The Stock Exchange of Hong Kong (stock code: 1094). The Company is principally engaged in the development of the public procurement services which involves the provision of procurement services to general public and government in the PRC, and the development of EMC service.
SOURCE China Public Procurement Limited
— Actively develop electronic public procurement platform
— Recorded revenue of HK$90M in the year
Financial Highlights
Year ended 31 December
HK$’000 2013 2012
Revenue 90,003 277,123
Gross Profit (loss) 80,197 (32)
Profit (loss) for the year 37,403 (14,575)
attributable to owners of
the Company
Earnings (loss) per share (HK cents) 0.33 (0.16)
The board of directors of China Public Procurement Limited (HKEx stock code: 1094, the “Company” or “CPP”) announced its annual results and financial position for the year ended 31 December 2013. Profit for the year attributable to owners of the Company was HK$37.40M (2012: loss of HK$14.58M). CPP achieved profit turnaround in the year 2013.
During the period, the Company recorded revenue of HK$90.00M (2012: HK$277.12M) mainly attributable to the professional services offered in the electronic transaction platform of China Public Procurement Online Platform. The profit attributable to shareholders was HK0.33 cents per share (2012: a loss of HK0.16 cents per share).
Business Review
Public Procurement Business
During the year, the Company continued to be in active development of its public procurement business, the income from which was reflected in the results. The Company laid out its structure which comprises the entire industry chain in public procurement, with its main electronic public procurement platform and 22 branch platforms, funded and operated by CPP, in continual construction, furthering its involvement in establishment of procurement platforms on regional and industry levels. During the period under review, trading platforms were established and commenced trial operation in Hubei Province, Inner Mongolia Autonomous Region and Panjin City, and the government procurement platforms and bulk commodity trading platforms in Qinghai Province and Jining City began to turn profitable. Initial deliberation and preliminary work were completed for military resources and advanced education institutions procurement platforms.
Consensus has been reached in June between the Company, our PRC Partner Guocai Science & Technology Company Limited, and a facilitating strategic collaborator for the project of the global public procurement services centre, for which an exclusive licensing cooperation agreement was signed.
Development in Qianhai
In April 2013, the Company was approved by the Authority of Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone of Shenzhen to establish a subsidiary in Qianhai, which will provide financial information services for the users of the financial service platform, and integrated financial solutions for small and medium enterprises involved in governmental procurements. As at the end of 2013, cooperation agreements were entered into between the Company and the provincial governments of Hubei and Inner Mongolia, and joint development of financial services with CITIC Bank was secured in order to achieve successful commencement of our business.
Energy Management Contracting Services
Regarding the Energy Management Contracting Services (EMC) business, the Company continued to participate in public lighting renovation services in various cities in 2013, providing our customers integrated services including energy efficiency design, procurement, construction, training and operational maintenance
Prospects
On 26 March 2014, the service product “GongcaiTong” was launched to promote cross-platform procurement by suppliers on a nationwide basis, while providing third-party services such as collated information customization, safety authentication, credit check, electronic bills, payment and financing. Its scope of service will gradually be expanded to facilitate inter-connection with the government procurements centres of 22 provinces, cities or districts including Hubei, Qinghai, Hebei, Shandong, Shenzhen and Shenyang.
On the financial service business front, the Company has entered into partnerships with Everbright Bank, Minsheng Bank and China Merchants Bank since the beginning of 2014, and will continue to identify new partner banks in future. Hubei Province and Inner Mongolia Autonomous Region will represent important regions for trial operation, while the Company expand the business to other regions. In the meantime, the Company will improve its business processing platform and continue to introduce insurance, credit check and payment as three value-added businesses.
Mr. Cheng Yuanzhong, Joint Chairman of the Company, said, “Looking forward, we will continue to explore and expand our business, so as to maximize the returns to shareholders.”
About China Public Procurement Limited
China Public Procurement Limited is listed on the Main Board of The Stock Exchange of Hong Kong (stock code: 1094). The Company is principally engaged in the development of the public procurement services which involves the provision of procurement services to general public and government in the PRC, and the development of EMC service.
SOURCE China Public Procurement Limited
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