Achieves turnaround results due to increase in revenue of mining business
HONG KONG, March 29, 2011 /PRNewswire-Asia/ --Kiu Hung Energy Holdings Limited (the "Company" together with its subsidiaries, the "Group", HKEx: 381) announced its annual results for the year ended 31 December 2010. The turnover of the Company is approximately HK$186.1 million (2009: HK$121.6 million), representing a sharp increase of 53.0% as compared to the previous year. The Company achieved turnaround results: the profit attributable to shareholders was approximately HK$6.3 million, mainly attributable to the increase in turnover of the toys and gifts business and coal mining business of the Group; and a gain arising on change in fair value of the Company's financial liabilities at fair value through profit or loss.
For the coal mining business, the Group's Huanghuashan Coal Mine, located in Inner Mongolia Autonomous Region, had officially commenced production by the end of 2009, and recorded revenue of approximately HK$11.1 million during the reporting period. Pursuant to an independent technical assessment report, the mine has an estimated coal resources of approximately 7.85 million tonnes of semi-anthracite coal. The Group also owns the exploration rights of Guerbanhada Coal Mine and Bayanhushuo Coalfield, both located in Inner Mongolia. The mines have estimated coal resources of approximately 106 million tonnes and 394.05 million tonnes of high quality thermal coal, respectively. The Company now has an aggregate amount of existing coal resources of approximately 507.9 million tonnes. Among which, the master planning for Guerbanhada Coal Mine has been submitted to National Development and Reform Commission of the PRC and National Energy Commission of the PRC. The Company is confident to obtain approval in 2011.
The Group has entered into a conditional contract in 2010 to acquire 8 coal mines in the Guizhou Province of the PRC at a total consideration for not more than HK$8,889,110,000. The Company has appointed a technical adviser to prepare the technical reports on the estimated amounts of coal resources of the said mines. It is preliminarily estimated that the mines have anthracite coal resources of not less than 642.5 million tonnes.
For the toys and gifts business, the turnover in the reporting period is approximately HK$175.0 million (2009: HK$121.1 million), representing an increase of approximately 44.5% as compared to the previous year.
Looking forward, Mr. Joseph Hui, Chairman of the Company, said, "As coal is the major source of the PRC's primary energy consumption, we believe that the demand for coal will continue to be robust in view of the continual economic growth in the PRC. We are therefore very confident in the mining business. In 2011, we will closely look into coal mine projects in China and other regions and proactively explore other investment opportunities, so as to maximize our shareholders' value."
