Northern New Energy Announces 2017 Annual Results

Review of New Energy BusinessIn 2017, "providing dynamic integrated new energy solutions" was the primary objective set by the Group. With regard to technical consultancy, Northern New Energy provided technical services for heating systems, technical services for pre-stage coal-to-natural gas conversion systems, technical services for de-nitrification of coal-fired boilers and de-plume engineering solutions for its wide range of clientele. As for the engineering construction segment, the Group undertook projects including sale, installation and debugging of equipment for de-nitrification of coal-fired boilers, sale and installation of bag filter equipment for coal-fired boilers, installation of heat exchanger units as well as the pipeline layout and construction of outdoor network projects. In response to market demand, the Group has expanded its business to the sale and purchase of new energy related industrial products by way of trading, thus venturing into the market and broadening income streams.

In the fourth quarter, the Group entered into a memorandum of understanding ("MOU") with two independent third parties. Pursuant to the MOU, it has conditionally agreed to purchase liquefied nature gas ("LNG") stations of Tianjin Jin Re Natural Gas. The deal was officially completed in February 2018. The Group is actively applying for the necessary industrial license and permit with which it will subsequently be able to start the LNG business. The business covers sale of natural gas; gas pipeline engineering; sale, installation and maintenance of gas transmission equipment; development, consultation, service and transfer of heat supply technology; development of new energy technology; leasing and commercial services industry; installation of electric and mechanical equipment; and centralized urban heat supply service.. As such, the Group will be able to expand the new energy business towards the upstream segment of the natural gas industrial chain, diversify the operations of the Group and potentially raise the business to the next level.

Review of catering businessDuring the year, following review by the management based on market conditions and the existing operating model, it took the initiative of adjusting and reorganizing associated businesses. The efforts gradually improved the catering business, which realized a turnaround and subsequently achieved breakeven, which suggests that this approach was correct. Given the difficult macro-environment of the industry, this was by no means an easy task. The Group hopes to remain on track to stimulate development of the catering business going forward.

Prospects At the end of 2017, the Chinese government published the "Clean Winter Heating Plan for Northern China (2017-2021)", which provides policy guidelines for the new energy industry in Northern China and creates enormous business opportunities. The Group's business and development direction corresponds with this government plan, hence will facilitate its overall development. The Group has strived to provide "dynamic integrated new energy solutions" for an extensive period. With the acquisition of assets of the independent third party in early 2018, its business coverage has expanded horizontally and vertically, becoming an all-round solutions and services provider that includes supplying LNG and gasified natural gas and providing consultation expertise on technical facilities in Tianjin. The Group's existing customer base is growing steadily. While it gradually enlarges its market share and actively builds its presence in the industry, the Group is also considering developing the new energy business to include other areas in Northern China as part of its long-term strategic plan. At the same time, the Group will continue to strengthen its professional capabilities and the proficiency of its teams, so as to consistently deliver top solutions to customers. The management will also explore appropriate opportunities for acquisitions as well as link-ups with strong partners, in order to further enhance profitability.

In respect of the catering business, the management will continue the review and adjust operations, with the goal of consolidating and strengthening the foundation of this arm. As for property development, it will further search for quality properties to invest in, so as to secure stable cash inflows and generate stable returns for shareholders.

By adhering to the strategy of pursuing two business and development objectives of "diversification and professionalism", the Group hopes to generate greater revenue while leading Northern New Energy to a new journey.

Northern New Energy Holdings LimitedNorthern New Energy Holdings Limited formerly known as Noble House (China) Holdings Limited, is a company listed on the GEM Board of the Hong Kong Stock Exchange since 2011 (stock code: 8246). In 2015, the Group began to develop new energy operations and R&D of related technologies, plus construction engineering business. The Group also operates restaurants, provides management services, and sells processed food and seafood. Also in 2015, the Group further diversified its business to cover also property investment.

Media enquiriesStrategic Financial Relations LimitedKeris Leung +852 2864 4863 [email protected]^[1]Fanny Yuen +852 2864 4853 [email protected]^[2] Jeffrey Tam +852 2864 4858 [email protected]^[3]

Topic: Press release summarySectors: Daily Finance, Energy, Daily News^[4][5][6] http://www.acnnewswire.com From the Asia Corporate News Network

Copyright © 2018 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

References

1. ^{^} [email protected] (www.acnnewswire.com)
2. ^{^} [email protected] (www.acnnewswire.com)
3. ^{^} [email protected] (www.acnnewswire.com)
4. ^{^} Daily Finance (www.acnnewswire.com)
5. ^{^} Energy (www.acnnewswire.com)
6. ^{^} Daily News (www.acnnewswire.com)