Leon Inspection’s Resilient and Steady Business Delivered over 50% Profit in 2023 Interim Results

Leon Inspection’s Resilient and Steady Business Delivered over 50% Profit in 2023 Interim Results

 

[Hong Kong－30, August 2023] The reputable international inspection and testing company, China Leon Inspection Holding Limited (“Leon Inspection” or the “Company”, together with its subsidiaries, the “Group”)(Stock code: 1586.HK) is pleased to announce that, in the first half year of 2023, by fully capturing the booming TIC market and riding on the advantage of the Group’s leadership in various segments, the Group achieved high-quality development with steady progress.

 

High-speed profit growth and outstanding capability in shareholder return with stable cash dividend policy

For the six months ended 30 June 2022(the “Period”), the Company recorded revenue of HK$505.4 million, representing a year-on-year increase of 17.0%; profit for the Period reached HK$68.5 million, representing a year-on-year increase of 50.2%; profit attributable to owners of the Company recorded HK$48.3 million, representing a year-on-year increase of 34.9%. The company delivered a strong financial position, low gearing ratio, and sufficient cash reserve of HK$213.8 million in Cash and cash equivalents. The Group continued its cash dividend policy during the year and has declared an interim dividend of HK$0.0269 per share for the six months ended 30 June 2023. The dividend payout ratio in the 2023 interim is 30.0%, demonstrating an outstanding capability in shareholder return.

 

Focus on the industrial innovation of TIC technology and the building of digital and intelligent platform for energy testing

The Group continues to expand its professional service capacity, strengthen the platform capacity building, and enhance its laboratory layout. Meanwhile, the Group steps up its proprietary R&D investment and continues to empower businesses through technology such as standardization, informatization, and intellectualization, actively building the digital and intelligent platform for energy testing and leading the innovation of inspection and testing technology in the industry, thereby enhancing efficient and superior service quality and better serving the key industry leaders. During the Period, the China National Coal Association conducted a scientific and technological achievement appraisal on the “development and application of intelligent coal inspection technology” project completed by Leon Inspection, and awarded that the overall results of the project reached the international leading level, successfully realizing the automation, standardization and intelligence of the whole process of coal sampling, sample preparation and testing.

 

ESG business continued to make progress and actively assisted in the green and low-carbon transition of the energy industry

Led by the “ESG-oriented development”, the Company’s three major ESG business divisions, namely clean energy, environment protection and climate change, continued to gain momentum, driving the overall growth of revenue. Details of business progress of the segments are set out below:

 

Clean energy business: We also actively explored renewable energy testing and application of new technologies, and continued to strengthen research cooperation with national top universities and research institutes, achieving significant achievements. In addition, the Company accurately captured industry opportunities and stepped up efforts to develop new services in the field of renewable energy, becoming the first third-party TIC institution to cooperate with the Institute of Electrical Engineering Chinese Academy of Sciences for participating in the inspection of photothermal power generation.

 

Environmental protection business: Our environmental protection business continued to gain momentum, and we further strengthened our environmental protection service offerings through leakage detection and repair (“LDAR”) services, which play a major role in the low-carbon transition and serve as a critical component to achieve carbon neutrality objectives. Under the Company’s accelerated business regional layout in the early stage, the strategic effect has borne remarkable fruits. Driven by the new industry policies, the performance of the segment has achieved rapid growth.

 

Climate change business: The Group served the carbon emission reduction mechanism consulting projects of leading enterprises in the oil and gas industry, and entered into framework cooperation agreements with domestic leading forestry management enterprises and mobility industry leaders, to actively support the low-carbon transition and sustainable development of the industry. In addition, the Group’s internal expert was officially approved by the United Nations global A6.4 carbon emission reduction mechanism supervisory authority as a member of the institutional methodology expert group, thereby we will observe and participate in the formulation of the A6.4 mechanism rules more closely, get deeper insight into the global emission reduction mechanism market, further greatly enhance the brand credibility and influence of the Company among customers and the government, and lead the innovation and development of the industry.

 

 

Mr. Yang Rongbing, executive director and vice chairman of China Leon Inspection Holding Limited stated that: Recently, the Company became the designated inspection institution for copper, aluminum and zinc metal futures of the Shanghai Futures Exchange, the authorized inspection institution for international copper futures of the Shanghai International Energy Exchange and the designated quality inspection institution for coking coal, coke and iron ore of Dalian Commodity Exchange. The Company’s international reputation as a world-renowned third-party quality assurance service provider and rich experience in the bulk commodity inspection business as well as the brand credibility had been highly recognised by the market. In addition, the Company has been awarded “Asia’s 200 Best Under A Billion” by Forbes, the internationally renowned financial magazine, for three consecutive years. The Company is highly recognized by the market for its excellent governance, operational capabilities, and strong business performance. By thoroughly implementing its long-term vision of sustainable development, the Group will further strengthen its strong brand advantage and solid operation capability, actively expand related business in the global TIC markets, leverage the unique advantages and enhance synergies, and further consolidate our leading position in niche markets, thereby striving to bring longer-term and better returns to shareholders.

 

 

About China Leon Inspection Holding Limited

China Leon Inspection Holding Limited (stock code: 1586. HK) was listed on the Main Board of the Stock Exchange in 2016. The Company is China’s first international leading inspection and testing company listed in Hong Kong, focusing on integrated solutions for climate change and green and low-carbon sustainable development. The Company provides global industry leaders with a wide range of one-stop services in testing, and inspection, as well as technical and consulting services around the clock, focusing on four key areas, namely commodity services, clean energy, environmental protection and climate change, empowering global industry leaders to achieve ecofriendly and low-carbon transformation. It is the pioneer in the Chinese TIC listed companies to fast complete a global network expanding its presence from major trading ports and hub cities in the Asia Pacific region to emerging markets in South America and Africa serves, and comprises 70 branches and professional laboratories globally.

 

ESG-oriented development is a key priority for the Company’s “2+X” development strategy. Through the three main implementation dimensions of (1) ESG-Friendly+; (2) ESG+; and (3)ESG+-Focused , we have achieved our ESG development strategies, fulfilled our corporate social responsibility, and contributed to the green and low-carbon transition of the industry.