London Asia Capital PLC
02 March 2006
Embargoed: 7am, 2 March 2006
London Asia Capital Plc
Investee Company announces Profits up 86%
London Asia Capital PLC ("London Asia"), the Greater China focused investment
and merchant banking group, is pleased to announce it's investee company, Asia
Power Corporation Limited ("Asia Power" or "Company"), yesterday reported record
net profits of £3.5 million for the year ended 31 December 2005, up 86% from
£1.9 million in 2004.
Asia Power, listed on the Singapore Stock Exchange, is principally involved in
the ownership, management and operation of power plants in China. London Asia
took a 10% stake in Asia Power in March 2005 for a total consideration of £ 1.7
million.
Asia Power is proposing an increased dividend of 0.9 cents (0.32p) per share,
equating to a payment of £ 0.1 million to London Asia. Asia power's shares have
risen 26% since the start of this year.
Asia Power's decision to refocus its investment strategy to renewable energy
power generation, especially hydropower plants, has grown the Company's revenues
and profits and secured a strong strategic position going forward. The
escalating prices of fossil fuels such as coal and oil,coupled with increasing
concerns about the environmental damage caused by fossil fuels, have seen the
Chinese government actively encouraging the usage of renewable energy for
electricity generation. Asia Power will continue to focus on renewable energy
power generation plants as its main engine of growth, to tap into this surging
market.
Simon Littlewood, Chief Executive, London Asia Capital said: "We are delighted
by the strong set of results and the dividend payouts announced by our investee
company. Asia Power has significant opportunities in the renewable sector in
China, as China seeks to meet its commitment to generate 15% of its energy needs
from renewable sources by 2020."
For further information please visit www.londonasia.com or contact:
Ling Chiu John West/Matt Ridsdale
London Asia Tavistock Communications
Tel: 020 7248 7578 Tel: 020 7920 3150
About Asia Power Corporation Limited
Listed on the Mainboard Singapore Exchange since October 1999, Asia Power
Corporation Limited is principally involved in the ownership, management and
operation of power plants in China.
Incorporated in March 1997, Asia Power's three core businesses are power
generation, power-related technology and the provision of consultation to and
management of power and power-related activities. To date, the Company has
invested in a total of eight power plants with a total installation capacity of
more than 550MW, two power-related technology companies and two power business
consulting companies in strategic cities across China.
In tandem with China government's environmental protection policy in the
production of energy, efforts have been channelled to reduce the reliance on
coal through increasing the usage of renewable energies. As a strategic move,
Asia Power started investing in power plants which make use of
environmentally-friendly and renewable energies, especially hydropower, as early
as 1998. Its efforts to focus on hydropower electricity generation plants have
yielded very positive results. Currently, four out of Asia Power's eight power
plants are driven by hydropower.
Led by a strong, experienced management team who have held senior positions in
China's provincial power bureaus and listed companies. Asia Power was rated in
the top 1000 most outstanding companies in Singapore between year 2002 and 2005.
This information is provided by RNS
The company news service from the London Stock Exchange |
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