1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. United Strength Power Holdings Limited
  6. News
  7. Summary
    2337   KYG9354A1031

UNITED STRENGTH POWER HOLDINGS LIMITED

(2337)
  Report
Delayed Hong Kong Stock Exchange  -  04:08 2022-06-30 am EDT
9.770 HKD   -4.96%
06/10UNITED STRENGTH POWER : Poll results of annual general meeting held on 10 june 2022
PU
06/10United Strength Power Holdings Limited Approves Final Dividend for the Year Ended December 31, 2021
CI
04/25UNITED STRENGTH POWER : Form of Proxy for the Annual General Meeting to be held on Friday, 10 June 2022 or any adjournment thereof
PU
SummaryQuotesChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

United Strength Power : CHANGE IN USE OF PROCEEDS

03/30/2022 | 08:00am EDT

Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

UNITED STRENGTH POWER HOLDINGS LIMITED ଺༐ঐ๕છٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2337)

CHANGE IN USE OF PROCEEDS

Reference is made to the prospectus of United Strength Power Holdings Limited (the "Company") dated 29 September 2017 (the "Prospectus"), the interim report of the Company dated 13 September 2021 (the "2021 Interim Report") and the announcement of the Company dated 31 January 2019 (the "Announcement"). Unless otherwise defined herein, terms used in this announcement shall have the same meanings as defined in the Prospectus, the 2021 Interim Report and the Announcement.

The Company has received net proceeds (the "Net Proceeds") of approximately HK$115.6 million after deducting the underwriting fee and commissions and relevant expenses in connection with the global offering on 16 October 2017. As at the date of this announcement, the Group utilised an aggregate amount of approximately HK$64.8 million of the Net Proceeds, representing approximately 56% of the Net Proceeds. The unutilised Net Proceeds (the "Unutilised Net Proceeds") amounted to approximately HK$50.8 million, representing approximately 44% of the Net Proceeds.

Set out below is a summary of the original allocation of the Net Proceeds, the revised allocation of Net Proceeds as set out in the Announcement and the utilisation of the Net Proceeds as at the date of this announcement:

Revised

allocation

Utilisation

Remaining

pursuant

as at

balance as at

Original

to the

the date of this

the date of this

allocation

Announcement

announcement

announcement

HK$'000

HK$'000

HK$'000

HK$'000

Finance the expansion of the

CNG refuelling station

network

104,000

19,500

19,500

-

Strengthen the marketing and

promotion strategies

5,800

5,800

4,972

828

General working capital

5,800

5,800

5,800

-

Establishment of an industry

merger and acquisition fund

-

50,000

-

50,000

Acquisition of Silver Spring

and assignment of the

shareholder's loan

-

34,500

34,500

-

Total

115,600

115,600

64,772

50,828

For the reasons set out in the paragraph headed "Reasons for change in use of proceeds" of this announcement below, the Board has resolved to further change the use of Unutilised Net

Proceeds as follows:

Original

Utilisation

Remaining

allocation

as at

balance

under the

Revised

the date of this

after revised

Announcement

allocation

announcement

allocation

HK$'000

HK$'000

HK$'000

HK$'000

Finance the expansion of the

CNG refuelling station

network

19,500

19,500

19,500

-

Strengthen the marketing and

promotion strategies

5,800

5,800

4,972

828

General working capital

5,800

5,800

5,800

-

Establishment of an industry

merger and acquisition fund

50,000

-

-

-

Acquisition of Silver Spring

and assignment of the

shareholder's loan

34,500

34,500

34,500

-

Expansion of petroleum and

gas refuelling station network

-

50,000

-

50,000

Total

115,600

115,600

64,772

50,828

REASONS FOR AND BENEFITS FOR THE CHANGE IN USE OF PROCEEDS

As set out in the announcement of the Company dated 27 November 2018, the Group intended to use HK$50 million to invest in industry development trends, mergers and acquisitions, integration of business, and improving and consolidating industry position of the Company. However, as of the date of this announcement, the Board did not locate any targets with suitable budget and valuation for acquisition.

Through the acquisition of Eternal Global Investment Limited ("Eternal Global") in 2020, the Group successfully expanded to the petroleum refuelling business and petroleum wholesale business. To enable the Group to better utilize its financial resources, the Company plans to use HK$50 million for further expansion of the petroleum and gas refuelling station network. This reallocation is in line with the actual operation and overall development strategy of the Group to build a wider sales network, which will increase the market share of the Company. As at 31 December 2021, the Group's petroleum and gas refuelling station network comprised a total of 94 stations, representing an increase of three stations since the end of 2020. The Directors believe that the expansion of petroleum and gas station network will broaden the asset and income of the Group and will be beneficial to the Company and its shareholders as a whole.

The Board considers that the above changes in the use of proceeds and the treatment of unutilised proceeds are fair and reasonable, and would meet the financial needs of the Group and enhance the flexibility in financial management of the Company. The Board is of the view that the reallocation is in line with the business strategy of the Group and will not adversely affect the operation and business of the Group and is in the best interests of the Company and the Shareholders as a whole. The Directors will continuously assess the business objectives of the use of proceeds as set out in the Prospectus, the Interim Report, the Announcement and above, and will revise or amend such plans to cope with the changing market conditions to ensure the business growth of the Group.

DEFINITIONS

In this announcement, the following expressions have the meanings set out below unless the context requires otherwise:

"Announcement"

the announcement of the Company dated 31 January 2019

"Board"

the board of Directors

"Company"

United Strength Power Holdings Limited (଺༐ঐ๕છٰϞࠢʮ̡),

a company incorporated in the Cayman Islands with limited liability,

the issued Shares of which are listed on the Main Board of the Stock

Exchange (Stock code: 2337)

"Directors"

the directors of the Company

"Group"

the Company and its subsidiaries

"HK$"

Hong Kong dollars, the lawful currency of Hong Kong

"Hong Kong"

the Hong Kong Special Administrative Region of the PRC

"Listing"

the listing of the Shares on the Main Board of the Stock Exchange

commenced from 16 October 2017

"Listing Rules"

the Rules Governing the Listing of Securities on the Stock Exchange

"Net Proceeds"

as ascribed in this announcement

"PRC"

the People's Republic of China

"Prospectus"

the prospectus of the Company dated 29 September 2017

"Share(s)"

ordinary share(s) of HK$0.10 each in the share capital of the Company

"Shareholder(s)"

holder(s) of the shares of the Company

"Stock Exchange"

The Stock Exchange of Hong Kong Limited

"subsidiary(ies)"

has the meaning ascribed thereto under the Listing Rules

"%"

per cent

By order of the Board

United Strength Power Holdings Limited

Zhao Jinmin

Chairman and chief executive officer

Hong Kong, 30 March 2022

As at the date of this announcement, the Board comprises four executive Directors, being Mr. Zhao Jinmin, Mr. Liu Yingwu, Mr. Yuan Limin and Mr. Ma Haidong, the non-executive Director, being Mr. Xu Huilin, and three independent non-executive Directors, being Ms. Su Dan, Mr. Lau Ying Kit and Mr. Zhang Zhifeng.

Disclaimer

United Strength Power Holdings Ltd. published this content on 30 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 March 2022 11:59:14 UTC.


© Publicnow 2022
All news about UNITED STRENGTH POWER HOLDINGS LIMITED
06/10UNITED STRENGTH POWER : Poll results of annual general meeting held on 10 june 2022
PU
06/10United Strength Power Holdings Limited Approves Final Dividend for the Year Ended Decem..
CI
04/25UNITED STRENGTH POWER : Form of Proxy for the Annual General Meeting to be held on Friday,..
PU
04/25UNITED STRENGTH POWER : (1) proposed final dividend (2) general mandates to issue and repu..
PU
04/04UNITED STRENGTH POWER : Monthly Return for Equity Issuer and Hong Kong Depositary Receipts..
PU
03/30United Strength Power Holdings Limited Proposes Ordinary Final Dividend for the Year En..
CI
03/30United Strength Power Holdings Limited Reports Earnings Results for the Full Year Ended..
CI
03/30UNITED STRENGTH POWER : Change in use of proceeds
PU
03/02UNITED STRENGTH POWER : Positive profit alert
PU
03/02UNITED STRENGTH POWER : Monthly Return for Equity Issuer and Hong Kong Depositary Receipts..
PU
More news
Financials
Sales 2021 5 830 M 870 M 870 M
Net income 2021 177 M 26,4 M 26,4 M
Net Debt 2021 583 M 87,0 M 87,0 M
P/E ratio 2021 24,7x
Yield 2021 0,19%
Capitalization 3 124 M 466 M 466 M
EV / Sales 2020 0,97x
EV / Sales 2021 0,85x
Nbr of Employees 1 768
Free-Float 26,6%
Chart UNITED STRENGTH POWER HOLDINGS LIMITED
Duration : Period :
United Strength Power Holdings Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends UNITED STRENGTH POWER HOLDINGS LIMITED
Short TermMid-TermLong Term
TrendsNeutralBearishNeutral
Income Statement Evolution
Managers and Directors
Jin Min Zhao Chairman & Chief Executive Officer
Wai Kit Lo Chief Financial Officer & Secretary
Xiao Dan Bian Chief Administrative Officer
Dan Su Independent Non-Executive Director
Ying Kit Lau Independent Non-Executive Director
Sector and Competitors