CF Energy Announces Q3 and Nine Months Result of 2024

/EIN News/ -- TORONTO, Nov. 28, 2024 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”, together with its subsidiaries, the “Group”), an energy provider in the People’s Republic of China (the ”PRC” or “China”), announces that the Company has filed its unaudited condensed interim consolidated financial results for the three-month and nine-month periods ended September 30, 2024 (“Q3 2024 and Nine Months in 2024” respectively).  

Q3 2024 financial highlights

Continuing Operations

In millions	Q3 2024		Q3 2023		Change		%		Q3 2024	Q3 2023		Change
(except for % figures)	RMB		RMB		RMB				CAD	CAD		CAD
Continuing Operations
Revenue	126.0		122.1		3.9		3	%	23.8	23.4		0.4
Gross Profit	33.3		30.5		2.8		9	%	6.3	5.8		0.5
Gross Profit Margin	26.4	%	25.0	%	1.4	%
Net Profit	4.3		7.6		(3.3	)	-44	%	0.8	1.5		(0.7	)
Adjusted net Profit [Non-IFRS]	4.3		6.3		(2.0	)	-32	%	0.8	1.3		(0.5	)
EBITDA	24.9		25.5		(0.6	)	-2	%	4.7	4.9		(0.2	)
Adjusted EBITDA [Non-IFRS]	24.9		24.2		0.7		3	%	4.7	4.7		(0.0	)

Revenue in Q3 2024 was RMB126.0 million (approx. CAD23.8 million), an increase of RMB3.9 million (approx. CAD0.4 million), or 3%, from RMB122.1 million (approx. CAD23.4 million) for the three months ended September 30, 2023 (“Q3 2023”).

Gross profit in Q3 2024 was RMB33.3 million (approx. CAD6.3 million), an increase of RMB2.8 million (CAD0.5 million) or 9% from RMB30.5 million (approx. CAD5.8 million) in Q3 2023.   Overall Gross margin in Q3 2024 was 26.4%, an increase of 1.4 percentage points from 25.0% in Q3 2023.  

In millions	Q3 2024		Q3 2023		Change		%		Q3 2024	Q3 2023		Change
(except for % figures)	RMB		RMB		RMB				CAD	CAD		CAD
Continuing Operations
Net profit for the period	4.3		7.6		(3.3	)	-44	%	0.8	1.5		(0.7	)
Non-recurring/non-operating items
Fair value change on derivative financial instrument	-		(1.3	)	1.3		-100	%	-	(0.2	)	0.2
Government financial assistance	-		-		-		0	%	-	-		-
Adjusted net profit for the period (Non-IFRS)	4.3		6.3		(2.0	)	-32	%	0.8	1.3		(0.5	)

Net profit in Q3 2024 was RMB4.3 million (approx. CAD0.8 million), a decrease of RMB3.3 million (approx. CAD0.7 million), or 44% from RMB7.6 million (approx. CAD1.5 million) in Q3 2023. Net profit in Q3 2024 did not include non-recurring items. On a comparable basis, after excluding the non-recurring items, the fair value change on derivative financial instrument of RMB1.3 million (approx. CAD0.2 million), the adjusted net profit in Q3 2023 (non-IFRS) was RMB6.3 million (approx. CAD1.3 million). Adjusted net profit in Q3 2024 remained at RMB4.3 million, a decrease of RMB2.0 million (approx. CAD0.5 million) or 32% from adjusted net profit of RMB6.3 million (approx. CAD1.3 million) in Q3 2023.

Earnings per share (basic and diluted) from continuing operations in Q3 2024 was RMB0.10 (CAD0.02) per share, a decrease of RMB0.08 (CAD0.01), or 44% from earnings per share (basic and diluted) of RMB0.18 (CAD0.03) in Q3 2023.

In millions	Q3 2024		Q3 2023		Change		%		Q3 2024	Q3 2023		Change
(except for % figures)	RMB		RMB		RMB				CAD	CAD		CAD
Continuing Operations
EBITDA for the period	24.9		25.5		(0.6	)	-2	%	4.7	4.9		(0.2	)
Non-recurring/non-operating items
Fair value change on derivative financial instrument	-		(1.3	)	1.3		-100	%	-	(0.2	)	0.2
Government financial assistance	-		-		-		0	%	-	-		-
Adjusted EBITDA for the period (Non-IFRS)	24.9		24.2		0.7		3	%	4.7	4.7		(0.0	)

EBITDA (Non-IFRS measure) in Q3 2024 was RMB24.9 million (approx. CAD4.7 million), a decrease of RMB0.6 million (approx. CAD0.2 million), or 2%, from RMB25.5 million (approx. CAD4.9 million) in Q3 2023. EBITDA in Q3 2024 did not include non-recurring items. On a comparable basis, after excluding the non-recurring items, the fair value change on derivative financial instrument of RMB1.3 million (approx. CAD0.2 million), the adjusted EBITDA in Q3 2023 (non-IFRS) was RMB24.2 million (approx. CAD4.7 million). Adjusted EBITDA in Q3 2024 remained at RMB24.9 million, an increase of RMB0.7 million (approx. CAD0.0 million), or 3% from the adjusted EBITDA of RMB24.2 million (approx. CAD4.7 million) in Q3 2023.

Nine Months 2024 financial highlights

Continuing Operations

In millions	1-9 2024		1-9 2023		Change		%		1-9 2024	1-9 2023		Change
(except for % figures)	RMB		RMB		RMB				CAD	CAD		CAD
Continuing Operations
Revenue	376.4		325.2		51.2		16	%	71.1	62.3		8.8
Gross Profit	81.6		92.2		(10.6	)	-12	%	15.4	17.6		(2.2	)
Gross Profit Margin	21.7	%	28.3	%	-6.6	%
Net Profit	5.8		28.3		(22.5	)	-79	%	1.1	5.4		(4.3	)
Adjusted net Profit	5.8		21.5		(15.7	)	3	%	1.1	4.1		(3.0	)
EBITDA	63.6		78.1		(14.5	)	-19	%	12.0	14.9		(2.9	)
Adjusted EBITDA	63.6		71.3		(7.7	)	-11	%	12.0	13.6		(1.6	)

Revenue for Nine Months in 2024 was RMB376.4 million (approx. CAD71.1 million), an increase of RMB51.2 million (approx. CAD8.8 million), or 16%, from RMB325.2 million (approx. CAD62.3 million) for the nine months ended September 30, 2023 (“Nine Months in 2023”).

Gross profit for Nine Months in 2024 was RMB81.6 million (approx. CAD15.4 million), a decrease of RMB10.6 million (CAD2.2 million), or 12% from RMB92.2 million (approx. CAD17.6 million) for Nine Months in 2023. Overall Gross margin for Nine Months in 2024 was 21.7%, a decrease of 6.6 percentage points from 28.3% for Nine Months in 2023.

In millions	1-9 2024		1-9 2023		Change		%		1-9 2024	1-9 2023		Change
(except for % figures)	RMB		RMB		RMB				CAD	CAD		CAD
Continuing Operations
Net profit for the period	5.8		28.3		(22.5	)	-79	%	1.1	5.4		(4.3	)
Non-recurring items
Fair value change on derivative financial instrument	-		(6.0	)	6.0		-100	%	-	(1.2	)	1.2
Government financial assistance	-		(0.8	)	0.8		-100	%	-	(0.1	)	0.1
Adjusted net profit for the period (non-IFRS)	5.8		21.5		(15.7	)	-73	%	1.1	4.1		(3.0	)

Net profit for Nine Months in 2024 was RMB5.8 million (approx. CAD1.1 million), a decrease of RMB22.5 million (approx. CAD4.3 million), or 79%, from RMB28.3 million (approx. CAD5.4 million) for Nine Months in 2023. Net profit for Nine Months in 2024 did not include non-recurring items. On a comparable basis, after excluding the non-recurring items, the fair value change on derivative financial instrument of RMB6.0 million (approx. CAD1.2 million) and government financial assistance of RMB0.8 million (approx. CAD0.1 million), the adjusted net profit for Nine Months in 2023 (non-IFRS) was RMB21.5 million (approx. CAD4.1 million). Adjusted net profit for Nine Months in 2024 remained at RMB5.8 million (approx. CAD1.1 million), a decrease of RMB15.7 million (approx. CAD3.0 million), or 73% from RMB21.5 million (approx. CAD4.1 million) for Nine Months in 2023.

Earnings per share (basic and diluted) from continuing operations for Nine Months in 2024 was RMB0.18 (CAD0.03) per share, a decrease of RMB0.33 (CAD0.02), or 65% from earnings per share (basic and diluted) of RMB0.51 (CAD0.10) for Nine Months in 2023.

In millions	1-9 2024		1-9 2023		Change		%		1-9 2024	1-9 2023		Change
(except for % figures)	RMB		RMB		RMB				CAD	CAD		CAD
Continuing Operations
EBITDA for the period	63.6		78.1		(14.5	)	-19	%	12.0	14.9		(2.9	)
Non-recurring items
Fair value change on derivative financial instrument	-		(6.0	)	6.0		-100	%	-	(1.2	)	1.2
Government financial assistance	-		(0.8	)	0.8		-100	%	-	(0.1	)	0.1
Adjusted EBITDA for the period	63.6		71.3		(7.7	)	-11	%	12.0	13.6		(1.6	)

EBITDA (Non-IFRS measure) for Nine Months in 2024 was RMB63.6 million (approx. CAD12.0 million), a decrease of RMB14.5 million (approx. CAD2.9 million), or 19%, from RMB78.1 million (approx. CAD14.9 million) for Nine Months in 2023. EBITDA for Nine Months in 2024 did not include non-recurring items. On a comparable basis, after excluding the effects of non-recurring items, the fair value change on derivative financial instrument of RMB6.0 million (approx. CAD1.2 million) and government financial assistance of RMB0.8 million (approx. CAD0.1 million), adjusted EBITDA for Nine Months in 2023 was RMB71.3 million (approx. CAD13.6 million). Adjusted EBITDA for Nine Months in 2024 remained at RMB63.6 million, a decrease of RMB7.7 million (approx. CAD1.6 million), or 11%, from RMB71.3 million (approx. CAD13.6 million) for Nine Months in 2023.

The unaudited condensed interim consolidated financial results and Management’s Discussion and Analysis (MD&A) can be downloaded from www.SEDAR.com or from the Company's website at www.cfenergy.com.

About CF Energy Corp. (Previously known as: Changfeng Energy Inc.)

CF Energy Corp. is a Canadian public company currently traded on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC.

CONTACT INFORMATION

Corporate Investment Relations
Investor.relations@changfengenergy.cn

Charles Wang
Executive Assistant to CEO & Chair of the Board
zhaoyu.wang@changfengenergy.cn

Frederick Wong, +852 9020 9394
Director of the Board
fred.wong@changfengenergy.cn

Mike Liu
VP Capital Market
mike.liu@changfengenergy.cn

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking statements and forward-looking information (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact, included or incorporated by reference in this document are Forward-Looking Statements, including statements regarding activities, events or developments that the Company expects or anticipates may occur in the future (including, without limitation, no significant adjustments to the gas selling price and charges for related services imposed by the relevant PRC government, the tourism industry continues to recover from COVID-19 impact and no delay in the development of the electric vehicle battery swap stations or the Haitang Bay Integrated Smart Energy Project). These Forward-Looking Statements can be identified by the use of forward-looking words such as “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue” or similar words or the negative thereof. No assurance can be given that the plans, intentions or expectations or assumptions upon which these Forward-Looking Statements are based will prove to be correct and such Forward-Looking Statements included in this news release should not be unduly relied upon. Although management believes that the expectations represented in such Forward-Looking Statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such Forward-Looking Statements are not a guarantee of performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such Forward-Looking Statements. These factors include, without limitation, no significant and continuing adverse changes in general economic conditions or conditions in the financial, tourism, and gas distribution and electric vehicle markets or delays in the development of key projects. Readers are cautioned that all Forward-Looking Statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company’s filings with applicable Canadian securities regulatory authorities, copies of which are available at www.sedar.com. The Company urges readers to carefully consider those factors. The Forward-Looking Statements included in this news release are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. This news release contains future oriented financial information and financial outlook information (collectively, "FOFI") (including, without limitation, statements regarding expected average production), and are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraph. The FOFI has been prepared by management to provide an outlook of the Company's activities and results, and such information may not be appropriate for other purposes. The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management's reasonable estimates and judgments, however, actual results of operations of the Company and the resulting financial results may vary from the amounts set forth herein. Any FOFI speaks only as of the date on which it is made, and the Company disclaims any intent or obligation to update any FOFI, whether as a result of new information, future events or results or otherwise, unless required by applicable laws.

Non-IFRS Financial Measures.

This news release contains financial terms that are not considered in the International Financial Reporting Standards ("IFRS"): EBITDA, Adjusted EBITDA and Adjusted Net Profit. These financial measures, together with measures prepared in accordance with IFRS, provide useful information to investors and shareholders, as management uses them to evaluate the operating performance of the Company. The Company's determination of these non-IFRS measures may differ from other reporting issuers, and therefore are unlikely to be comparable to similar measures presented by other companies. Further, these non-IFRS measures should not be considered in isolation or as a substitute for measures of performance or cash flows prepared in accordance with IFRS. These financial measures are included because management uses this information to analyze operating performance and liquidity. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.