TORONTO, Jan. 30, 2019 (GLOBE NEWSWIRE) — Changfeng Energy Inc., (TSXV: CFY) (“Changfeng” or the “Company”, together with its subsidiaries the “Group”), an energy provider in the People’s Republic of China (the “PRC”), announces the following:
As previously announced, the Company has been pursuing an initial public offering of its common shares on The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) (the “HK IPO”). However, the Company has been advised by its financial advisor that the volatile prevailing stock market conditions in Hong Kong have been negative and are expected to affect the sentiment and appetite of investors in the Hong Kong IPO market. Having considered such market conditions, as well as the expected contribution of the Company’s new projects as previously announced, which are still either in their development or early operational stages, the board of directors of the Company (the “Board”) has decided to defer its HK IPO plan until such time as market conditions improve and the Board considers it advisable to pursue such plan. Changfeng will continue to review and monitor global stock market conditions, including in particular the Hong Kong IPO market, and update shareholders of the Company of any change in its plans as and when appropriate.
Annual Dividend and Special Dividend
Pursuant to Changfeng’s dividend policy, the Company is pleased to announce that the Board has approved the total payout for a dividend in respect of the second half of the 2018 financial year (the “Second Installment Dividend”) of approximately RMB 3,500,000 million (approximately C$690,996 based on the prevailing exchange rate between C$ and RMB at the date of this press release), an equivalent of approximately C$0.0106 (2017: C$0.0094) per common share based on the total common shares outstanding at the date of this press release.
In addition to the Second Installment Dividend, the Board has also approved the declaration of a one-time total payout for a special dividend (the “Special Dividend”) of approximately RMB 12,900,000 (approximately C$2,546,815 based on the prevailing exchange rate between C$ and RMB at the date of this press release) in recognition of the continuing support of the shareholders of the Company. The Special Dividend will be paid out in two installments, the first installment of approximately RMB 6,450,000 (approximately C$1,273,408 based on the prevailing exchange rate between C$ and RMB at the date of this press release), an equivalent of approximately C$0.0195 per common share based on the total common shares outstanding at the date of this press release, will be paid out concurrently with the Second Installment Dividend.
The Board has also approved the first installment dividend in respect of the 2019 financial year (the “2019 First Installment Dividend”) to the amount of approximately RMB 3,500,000 million (approximately C$690,996 based on the prevailing exchange rate between C$ and RMB at the date of this press release) with the payment date to be determined.
Both the Second Installment Dividend and the first installment of the Special Dividend are payable on February 26, 2019 to shareholders of record as of the close of business on February 12, 2019. Trading in the common shares of Changfeng will begin on an ex-dividend basis at the opening of trading on February 11, 2019.
The Second Installment Dividend, both installments of the Special Dividend and the 2019 First Installment Dividend will be designated as an “eligible dividend” for Canadian income tax purposes pursuant to subsection 89(14) of the Income Tax Act (Canada). Future dividends, to be approved by the Board, will be designated as an “eligible dividend” for Canadian income tax purposes unless otherwise indicated by Changfeng.
The aggregate amount of dividends to be distributed in 2019, including the Second Installment Dividend, both installments of the Special Dividend and the 2019 First Installment Dividend, aggregate to RMB 19,900,000 (approximately C$3,928,808 based on the prevailing exchange rate between C$ and RMB at the date of this press release), an equivalent of approximately C$0.0602 per common share based on the total common shares outstanding at the date of this press release.
“In appreciation of the continuing support of our investors, we have raised our semi-annual dividend for the 2018 year and declared a special dividend. I would also like to thank our shareholders for bearing with our decision to defer the HK IPO plan. It is unfortunate that market conditions are not conducive to pursuing such plan at this time.” said Huajun Lin, President, CEO and Chairman of the Company.
About Changfeng Energy Inc.
Changfeng Energy Inc. 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. Changfeng strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC. In 2009, Changfeng was recognized as being one of China’s the Top Ten Most Influential Brands in the Natural Gas Industry.
Corporate Investment Relations
Ann Siyin Lin
VP, Corporate Development
Tel: +1 (647) 313 0066
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 with respect to the HK IPO, the listing on the Hong Kong Stock Exchange, the expected contribution of the Company’s projects on the Group, and the timing and payment of future dividends, including a first installment dividend in respect of the 2019 financial year and a second installment of the Special Dividend. 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 markets. 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.
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.