Energy Conversion and Financial Overview
Margins Analysis
ENN 新奥
During the period, the gross profit margin dropped by 5.7ppts and net profit margin increased
by 0.6ppts compared with the same period last year
Gross profit margin
20.5% (1H2013: 26.2%)
Net profit margin
10.7% (1H2013: 10.1%)
Margins analysis
Gross profit margin:
1.
2.
3.
Continuous improvement in the Group's revenue structure due to more contribution from
gas sales instead of connection fee
Natural gas price hike since 2H2013 increased overall gas purchasing cost, we managed to
pass through increased gas cost to most of the users and maintained stable dollar margin in
affected projects
Significant volume growth from Quanzhou project which has relatively lower margin than
other city-gas projects
Net profit margin:
1.
2.
Stripping out impact from CB, net profit margin in 1H14 was 10.3% compared with 12.1% in
1H13, dropped by 1.8ppts
Reduction in finance costs and better cost control partly offset the impact from decline in
gross profit margin
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