LT Smart Energy Announces 2016 Annual Results

Profitability of Smart Energy and Solar Energy Businesses Significantly Enhanced  
Profit for the Year Attributable to Owners of the Company Triples to RMB51.46 Million

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 Strives to Establish Integrated Smart Energy Cloud Platform

Provides Comprehensive Smart Energy Services Leveraging Big Data

Results Highlights:                                     

HONG KONG, 23 March 2017 - LongiTech Smart Energy Holding Limited, “LT Smart Energy” or the “Company”, stock code: 1281), a leading operator of smart energy cloud platforms in China, is pleased to announce its annual results for the year ended 31 December 2016 (“year under review”).                   

In 2016, the Company persistently pushed ahead with the transformation and strategic upgrade of its business, in pursuing the objective of becoming a leading operator of smart energy cloud platforms in China. This includes the adjustment and enhancement of its organizational structure and collaboration with external professional firms, which completed the construction and optimization of the integrated systems for the LongiTech Smart Energy Cloud Platform. For the year under review, the Company’srevenue amounted to approximately RMB607.1 million, representing a surge of 87.3% as compared to approximately RMB324.2 million for the same period of 2015. In which, revenue of Company’s smart energy and solar energy businesses amounted to RMB41.6 million (2015: Nil), demonstrating a significant enhancement in profitability. Profit for the year attributable to owners of the Company amounted to approximately RMB51.5 million, representing a surge of 296.5% as compared to approximately RMB13.0 million for the same period of 2015. Basic and diluted earnings per share of the Company were both approximately RMB0.0824 (2015: Basic and diluted earnings per share were RMB0.0214 and RMB0.0213 respectively).                           

Against the market backdrop and in the context of the State’s vigorous promotion of “Internet+” smart energy and reform in the area of energy consumption, the combination of energy and the internet for smart energy applications has brought along great development potential and good market prospect for the Company. The Company is determined to develop the LongiTech Smart Energy Cloud Platform (the “Cloud Platform”), a comprehensive operation platform of smart energy solutions integrating energy systems and internet technology, and achieving the automation and informatization of the entire energy usage process covering energy data collection, energy utilization monitoring, energy consumption analysis, energy consumption management, etc. Meanwhile, by gathering energy consumers and conducting analysis of energy big data, the Cloud Platform is able to provide energy consumers with an all-round smart energy service, including energy monitoring, power trade, smart operation and maintenance, energy conservation improvement and distributed energy.

During the year under review, the Company actively explored the smart energy business and make fruitful attempts in this area. In terms of the structure, the Company arranged the smart energy business intoback-end information technology support and front-end business development. The former mainly includes developing and upgrading the Cloud Platform and establishing energy big data center in order to provide customers with more scientific and accurate prediction results and further explore customers’ demand for energy. The latter mainly consists of the establishments of smart energy industrial and business parks. With data analysis, the Company managed to build a base of energy consumers quickly and get its O2O business off the ground.

In respect of its back-end information technology support, the Company has cooperated with IBM (China) Company Limited in developing and upgrading the Cloud Platform and establishing of an energy big data center, inducing the capability of accessing the energy data of 100,000 corporate customers in real time. Based upon multi-application modules, the Cloud Platform has the ability of multi-source data cognition, insight and prediction. As a result, it can provide customers with more scientific and accurate prediction results, and further explore customers’ demand for energy. In respect of its front-end business development, the Company has established smart energy industrial and business parks as demonstration projects represented by Lightway’s plants and Baigou mall and acquired Hebei Energy Management Platform Companies. The Company could therefore leverage the wealth of its disposal in Hebei Province and the experience and capabilities of Hebei Energy Management Platform Companies in the rapid promotion of constructing clients’ sub-stations for the Cloud Platform. Currently, 916 energy consumption corporate customers had entered into contracts with the Company, and were entitled to such services, of which 169 corporate customers whose energy data can be accessed via the Cloud Platform of the Company in real time. The number of corporate customers entering into contracts and accessing to such services subsequently will continue to increase.

In respect of solar energy business, the Company currently has three photovoltaic solar power stations with a total installed capacity of 30MW. Regarding the strategic layout for the solar energy business, the Company took into account the continuous decline in the national subsidy for ground power stations and the advantage of distributed power stations in generating power that is consumed locally and receives a stable subsidy. It shifted its business focus from large-scale ground power stations to distributed power stations to better cope with market changes while achieving synergistic development of its solar energy business along with its smart energy business. In view of market conditions, the Company launched ahome photovoltaic system for household users (the “home photovoltaic system”) at the end of 2016. The power generated by the household system could meet the daily power demand of household users while returning any residual power to the power grids, benefit from power generation with full connection to the power grids and give the Company access to additional national subsidy. The Group also sold solar power station systems integrating systems such as solar panels, inverters and frames to agents, who would then sell theses solar power station systems to ultimate household users, to generate extra revenue.

Mr. Wei Shaojun, Chairman of LT Smart Energy said, “Looking ahead, LT Smart Energy will continue to develop advanced application modules, including intelligent diagnosis of power transmission and distribution and energy application services based on blockchain in respect of smart energy business. The Company could hence consistently provide quality energy management services for its contracted customers of energy consumption. In respect of solar energy business, the Company will continue to develop the household system, bringing new growth opportunities and profits. The Company will strive to become the leading smart energy cloud platform operator in China and aim to deliver fruitful results and achieve high turnaround for shareholders.”

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About LongiTech Smart Energy Holding Limited

LongiTech Smart Energy Holding Limited is a leading operator of smart energy cloud platforms in China. Through the big energy data center of its smart energy cloud platform and the development model of a light asset business with data and knowledge at its core, LT Smart Energy provides energy consumers with all-round smart services, including distributed energy, energy saving, power trade, smart operation and mainteinance and other value-added services. The Company is determined to become the leading smart energy integrated service provider in China.