Oneforce Holdings (01933.HK) 2023 interim results: revenue of RMB179 million, increased 9.7%; net profit RMB9.7million, increased 23.4%.

FINANCIAL HIGHLIGHTS

On 25 November 2022, Oneforce Holdings (1933.HK) announced its interim report for the six month ended 30 September 2022. During the reporting period, the company recorded an income of RMB179 million, an increase of approximately 9.7% compared with that for the same period of last year; gross profit reached RMB34 million, the overall gross profit margin was 19.0%; shareholders attributable profit amounted to RMB9.7 million, an increase of 23.4% compared with that for the same period of last year. Earnings per share were 1.96 cents, increased by 23.4%.

BUSINESS REVIEW

In January 2022, the National Development and Reform Commission and the National Energy Administration jointly issued the Guiding Opinions on Accelerating the Construction of a National Unified Power Market System, which specifies that the national unified power market system will be initially completed by 2025 and basically completed by 2030. China's unified electricity market is accelerating, and participants in the electricity market will expand rapidly. On 23 July 2022, the Southern Regional Power Market was launched for trial operation. It is estimated that the cumulative market traded electricity in the Southern Regional Power Market will reach 1.11 trillion kWh in 2022, and the market traded electricity will account for about 80% by the end of 2023. During the Reporting Period, the Group continued to strengthen cooperations with China Southern Power Grid Company Limited ("CSG"). Revenue from CSG increased by approximately 360% compared with that for the same period of last year. Inner Mongolia power spot market also started a new round of continuous settlement trial operation of spot market on 1 June 2022. During the Reporting Period, the Group participated in the power trading market construction project of Inner Mongolia Power (Group) Co., Ltd. ("IMPG"), and the revenue from IMPG increased by about 38% compared with that for the same period of last year.

Digital reform requires the power marketing system to quickly adapt to the transformation of data integration. The "14th Five-Year Plan" digitalisation plan of the State Grid Corporation of China ("SGCC") proposes to build an Energy Internet Marketing Service System ("Marketing 2.0"). The Group has further cooperated with SGCC, and the sales volume of technical services related to Marketing 2.0 and "Online State Grid" has increased significantly compared with that for the same period last year and has opened up the markets of SGCC in Xinjiang and Qinghai.

The Group is a leading technology enterprise in the energy and information technology industry, which has been serving the electric energy consumption field and focusing on the general energy industry. Through providing complete solutions, the Group assists power grid enterprises, power stations, electricity sales companies and other customers to achieve digital upgrades, accumulate platform capabilities, and realise the construction and upgrade of the new power systems.

Meanwhile, the industry of the Group is also the integration of the electric power, information and IoT industries. In 2013, the Group entered into the smart city field through its relevant experience, technology and talent pool accumulated in the field of the informatisation of the energy industry. As a self-developed and globally unique intelligent IoT product of the Group, the intelligent IoT gateway product π core provides access to power and network, connects all the smart applications, obtains data and distributes information in cities. ‘π core’ is the sensory nerve endings of a smart city. Its applications include the construction of smart light poles in the Mentougou District of Beijing, which has become the first batch of smart city pilots in Beijing; and smart garbage sorting stations in Jinan and Baoding. Smart city projects continue to provide services to cities and continue to obtain stable income for the Group.

The Group attaches great importance to maintaining a stable cash flow by actively taking measures to strengthen the Group’s cash flow management and remains highly vigilant on the timeliness of the receivables collection. During the COVID-19, various measures were taken to ensure the stability of cash flow. The Group will pay more attention to the follow-up of receivables collection while encouraging the team to actively explore the market and business.

OUTLOOK AND PROSPECT

The goals of carbon peaking and carbon neutrality are driving a huge change in the mode of energy production and energy consumption in China and as well as the world. In the face of the huge social responsibilities and development opportunities, as well as the significant demand for the transformation and upgrading of smart grid to energy Internet, the Group will continue to serve the society in under the constantly changing environment. Now, as we move towards a sustainable future energy generation, the Group will keep innovating and never stop.

WANG Dongbin
Chairman
25 November 2022