The Group recorded a turnaround profit from operations of HK$6,565,000 as compared to a loss of HK$8,408,000 in 2006 due to gains from the disposal of available-for-sales investments, an increase in other operating income from the provision of management and consultancy services and biological asset gains contributed by the new agro-conservation and bio-energy businesses. The Company did not declare a final dividend.
Mr Tse Michael Nam, Chairman of the Company said: "2007 was marked by a number of pioneering, strategic investments in the agro-conservation and bio-energy sectors, which offer excellent potential for financial growth and increased shareholder value, while furthering our commitment to the environment, socio-economic development and corporate responsibility. This strategic focus underlies the change of our company name. I am delighted to report significant progress in our new green businesses during the year despite their relatively short time of operation."
The Company now operates agro-conservation and bio-energy businesses in Inner Mongolia and Hainan in China, and Laos. Agro-conservation has become a major industry of great economical and ecological value. Strong demand for regenerative and renewable energy will underpin the potential of bio-energy businesses. These two green business lines will complement each other to generate substantial and sustainable profits for the Company in the years to come. Wherever it operates, the Company collaborates with local government agencies and local social enterprises based on a unique public-private partnership ("PPP") business model. This PPP model has helped the Company gain support from the governments of each of the countries in which it has invested.
In Inner Mongolia, the Company provides management and consultancy services through Huge Value Development Limited (to be renamed Green Global China Licorice Limited) ("Green Global Licorice") for the cultivation of licorice on a 1,000,000-mu (~67,000 hectares) grassland in 伊克昭盟杭錦旗 (Yi Ke Zhao Meng Hang Jin Qi). The root of the licorice plant provides an important substance used in Chinese herbal medicine and is also widely used as raw material for a diverse range of products. It is believed that due to market shortage, prices of licorice roots will be driven up in the coming years. Ecologically, the licorice plant is also highly effective in preventing soil erosion and desertification. In 2007, Global Green Licorice successfully completed the plantation of 8,000 mu (~533 hectares) of licorice.
Also in Inner Mongolia, the Company provides management and consultancy services through Quest Asia Development Limited (to be renamed Green Global China Salix Limited) ("Green Global Salix") for the cultivation of salix psammophila on a 2,200,000-mu (~147,000 hectares) land. Salix, also known as sand willow, is commonly planted to combat desertification. It also has other commercial uses, including being used as raw material for fiber board and paper pulp, as well as bio-fuel generated power plants. During 2007, Green Global Salix successfully planted 200,000 mu (~13,300 hectares) of salix.
The Company's goal is to cultivate 200,000 mu (~13,300 hectares) of licorice over the next three years and 5,000,000 mu (~333,000 hectares) of salix over the next five years.
In Hainan, the Company operates 90%-owned Hainan Venture Zhengke Bioenergy Development Company Limited ("Hainan Venture") which conducts jatropha curcas-based bio-energy business. The seeds of jatropha curcas have a high level of oil content which is widely believed to be one of the most economical and practical raw materials for the sustained production of environmentally friendly bio-diesel. Because the jatropha plant is not a food source and can be grown in less than optimal soil and climatic conditions, it complies with the Chinese Government's alternative energy policies. Hainan Venture has completed the establishment of a 150-mu (~10 hectares) nursery to grow jatropha curcas saplings.
In March 2008, Hainan Venture entered into a cooperation agreement for the sale of jatropha curcas saplings from its nursery, as well as entitlements to all qualified seeds harvested from the trees cultivated from such saplings. This cooperation ensures that Hainan Venture has a reliable market for its saplings, that the saplings will be properly cultivated, and that it has a guaranteed future supply of high quality seeds from these trees. Hainan Venture intends to expand its nursery to 1,500 mu (~100 hectares).
In December 2007, the Company extended its bio-energy business from China to Laos through the establishment of 80%-owned Lao Agro-Promotion Limited ("Lao-Agro"). Lao-Agro conducts jatropha-based bio-energy business in Laos, and will provide a strong foundation for the Company to develop and commercialize bio-energy businesses in the Greater Mekong Sub-region.
The Company's non-agricultural businesses are mainly driven by TopAsia Group ("TopAsia"). In 2007, TopAsia's provision of automatic teller machine ("ATM") management services to the banking and financial sectors in China remained a main revenue contributor to the Company, delivering HK$65,621,000 in revenues during 2007. However, the segment made an operating loss of HK$1,399,000 due to high costs. The Company will continue to monitor and assess TopAsia's activities and prospects in light of China's macroeconomic situation.
With significant progress achieved and important foundations established, the Company is poised to advance further in the agro-conservation and bio-energy sectors.
Financial Highlights| Year ended December 31, | ||
| 2007 | 2006 | |
| HK$ '000 | HK$ '000 | |
| Turnover | 72,252 | 58,740 |
| Gross Profit | 14,706 | 12,671 |
| Loss attributable to shareholders | (37,679) | (9,991) |
| Basic loss per Share (HK cents) | (4) | (2) |
About Green Global Resources Limited Issued by : Through :
Green Global Resources Limited (HKEx: 61) focuses on and invests in agro-conservation and bio-energy businesses with a view to contributing to the world’s ecological needs and requirements for renewable and regenerative energy sources. The Company's name epitomizes its focus and direction: "Green" emphasizes its dedication to environmental protection and conservation; "Global" reflects its commitment to actively engage in businesses in a variety of global locations; and "Resources" evidences its vision to be a leading producer of regenerative or renewable resources.
Green Global Resources Limited
t6.communications limited
Jenny Lee or Angus Ho
email: enquiry@t6pr.com
URL : http://www.t6pr.com