CF Energy Announces Q1 Results of 2021

TORONTO, May 31, 2021 (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 period ended March 31, 2021 (“Q1 2021”).

Q1 2021 financial highlights

Continuing Operations

In millions Q1 2021 Q1 2020 Change % Q1 2021 Q1 2020 Change %
(except for % figures) RMB RMB RMB   CAD CAD CAD  
Continuing Operations                
Revenue                 81.2                 64.9                 16.3 25%                 15.9                 12.5                   3.4 28%
Gross Profit             33.6             27.1                   6.5 24%               6.6               5.2                   1.4 28%
Gross Profit Margin 41.4% 41.8% -0.4%   41.4% 41.8% -0.4%  
Net Profit               3.0             17.0               (14.0) -82%               0.6               3.3                  (2.7) -82%
Adjusted net Profit               8.9               5.0                   3.9 78%               1.8               1.0                   0.8 80%
EBITDA             14.6             26.9               (12.3) -46%                   2.7                   5.1                  (2.4) -48%
Adjusted EBITDA             20.5             14.9               5.6 38%               3.9               2.8               1.1 39%

Revenue in Q1 2021 was RMB81.2 million (approx. CAD15.9 million), an increase of RMB16.3 million (approx. CAD3.4 million), or 25%, from RMB64.9 million (approx. CAD12.5 million) for the three-month period ended March 31, 2020 (“Q1 2020”). The overall increase in revenue mainly reflected the general increase in sales volume with solid economic recovery since COVID-19 was under control.

Gross profit in Q1 2021 was RMB33.6 million (approx. CAD6.6 million), an increase of RMB6.5 million (CAD1.4 million) or 24% from RMB27.1 million (approx. CAD5.2 million) in Q1 2020.   Overall Gross margin in Q1 2021 was 41.4% which was close to that of 41.8% in Q1 2020.

In millions Q1 2021 Q1 2020 Change % Q1 2021 Q1 2020 Change %
(except for % figures) RMB RMB RMB   CAD CAD CAD  
Continuing Operations                
EBITDA for the period                  14.6                 26.9               (12.3) -46%                   2.7                   5.1                  (2.4) -48%
Non-recurring items                
Fair value change on derivative financial instrument                   5.6               (12.0)                 17.6 -147%                   1.1              (2.3)                   3.4 -147%
Recognition of share-based payment expenses                   0.3                        –                   0.3 100%                   0.1                  –                     0.1 100%
Adjusted EBITDA for the period                 20.5                 14.9                   5.6 38%                   3.9                   2.8                   1.1 39%

EBITDA (Non-IFRS measure) in Q1 2021 was RMB14.6 million (approx. CAD2.7 million), a decrease of RMB12.3 million (approx. CAD2.4 million), or 46%, from RMB26.9 million (approx. CAD5.1 million) in Q1 2020. On a comparable basis, the adjusted EBITDA (as defined on page 18 of the MD&A for Q1 2021) in Q1 2021 was RMB20.5 million (approx. CAD3.9 million), an increase of RMB5.6 million (approx. CAD1.1 million), or 38%, from RMB14.9 million (approx. CAD2.8 million) in Q1 2020.

In millions Q1 2021 Q1 2020 Change % Q1 2021 Q1 2020 Change %
(except for % figures) RMB RMB RMB   CAD CAD CAD  
Continuing Operations                
Net profit for the period                   3.0                 17.0               (14.0) -83%                   0.6                   3.3                  (2.7) -82%
Non-recurring items                
Fair value change on derivative financial instrument                   5.6               (12.0)                 17.6 -147%                   1.1                  (2.3)                   3.4 -147%
Recognition of share-based payment expenses                   0.3                        –                   0.3 100%                   0.1                        –                   0.1 100%
Adjusted net profit for the period (non-IFRS)                   8.9                   5.0                   3.9 78%                   1.8                   1.0                   0.8 80%

Net profit in Q1 2021 was RMB3.0 million (approx. CAD0.6 million), a decrease of RMB14.0 million (approx. CAD2.7 million), or 83%, from RMB17.0 million (approx. CAD3.3 million) in Q1 2020. On a comparable basis, the adjusted net profit (as defined on page 16 of the MD&A for Q1 2021) in Q1 2021 (non-IFRS) was RMB8.9 million (approx. CAD1.8 million), an increase of RMB3.9 million (approx. CAD0.8 million) or 78% from RMB5.0 million (approx. CAD1.0 million) in Q1 2020.

Basic earnings per share (“EPS”) in Q1 2021 was CAD0.01 per share. Adjusted EPS in Q1 2021 was CAD0.03 per share (non-IFRS).

Discontinued Operation

Loss in Q1 2021 of RMB0.3 million related to the termination of the operation of a subsidiary as the Group realigned its future business strategies with major focus on clean energy solutions with high growth potential.

Completion of 2021 Target

In millions 2021 Projection Q1 2021 Actual Completed
(except for % figures) RMB RMB %
Revenue               410.7                 81.2 19.8%
Gross Profit           187.3             33.6 17.9%
Projected net profit (recurring) / Adjusted net profit             28.9               8.9 30.7%

Benchmarking against the annual target for the 2021 year, for the first quarter of 2021, we have achieved up to 19.8% of the revenue, 17.9% of gross profit and 30.4% of projected net profit targets set for the whole of the 2021 year.

Q1 2021 Business highlights

Natural gas distribution business

The government’s one-off pre-cautionary measure to avoid unnecessary traffic and gathering over the festive period of January and February 2021 restricted the number of overnight visitors to Sanya City in the first two months of 2021. However, with the catching up of overnight visitors in March 2021, the consumption of gas volume from commercial customers in Q1 2021 had regained to the level close to pre- COVID in Q1 2019.

Smart energy distribution business

Phase one of the Haitang Bay Integrated Smart Energy Project is on its way to commence operation in early Q3 2021. The Company has signed up nine commercial customers, including some well-known international brand name customers, with 350,000 square meters of cooling space to be served which represent as 44% of the projected total 780,000 square meters of customers’ space to serve for the first phase of the project. The management will continue with its effort to procure more potential customers to tap into our system in the coming months.

Meishan smart energy project commenced its trial operation in March 2021, and full commercial operation commenced in mid-May 2021 and start contributing revenue in Q2 2021.  

Smart mobility business

By end of Q1 2021, the Company has commenced two EV battery swap stations in operation in Hainan and installed one EV battery swap station in Zhuhai City. Two CNG refueling stations experienced combined revenue increase of 41% in Q1 2021 as compared to Q1 2020.   

Statement from the Chair

Coming out of a tough year in 2020, we are pleased to see all our three business divisions shown significant improvement in Q1 this year. We implemented various strategic policy adjustments on our business focus last year as a way forward in preparation for the expected negative impact from regulatory policy changes and the resultant financial challenges which may bring in 2021. It looks like those adjustments have started to bear fruits with the Q1 results. We are on track with our internal projections in Q1 2021 and hope to beat our own targets for the full year with a team effort.

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

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.


A tele-conference will be held following the release of this press release and the results of the Group, details of which will be provided by way of a separate press release in due course.


Corporate Investment Relations
[email protected]Charles Wang

Executive Assistant to CEO & Chair of the Board
[email protected]

Frederick Wong
Director of the Board
[email protected]

Mike Liu
VP Capital Market
[email protected]

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 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.

Resource News, Oil and Gas News, Mining News, Renewable News