MANILA — Greenergy Holdings, Inc., the listed company chaired by businessman Antonio L. Tiu, posted a consolidated net income of P2.8 billion last year, from the consolidated net income of P21.3 million recorded a year ago, buoyed by one-time gains and reclassification of investments.
In its annual report and consolidated financial statements for 2018 filed with the Philippine Stock Exchange last week, Greenergy said the increase is due to “the results of gain on reclassification of investment in associate to FVOCI (Fair Value Through Comprehensive Income) amounting to P2.6 billion, gain on deemed disposal of investment in an associate of P186.42 and gain on sale of investment in associate amounting to P78.97 million.”
Net of these gains, Greenergy’s gross income was at P1 million, equivalent to 29 percent of revenue and still a marked turnaround from 2017 when the company’s gross loss was at P1.49 million or -287.61 percent of revenue.
The group’s revenue for 2018 amounted to P3.45 million, an increase from the revenue generated in 2017 which total P0.52 million.
This was due to the increase in agri-tourism revenue and rental income from its nine-hectare property situated in Rosario, Batangas.
Moving forward, Greenergy expects gross profit margins to improve significantly in the coming years when returns on the company’s investments become visible, especially on the increase in service income from agri-tourism, sale of harvests from greenhouse projects of one of its subsidiaries and potential project with Thebizlink Co. Ltd that will generate sufficient cash flows.
The particular project with Thebizlink Group is for the development of a transport hub, smart-farming agriculture area, smart-city commercial and mixed-use developments and other related developments. With these investments, the management of the group will continue to generate sufficient cash flows to complete its current and future plans.
Greenergy and Thebizlink Group entered into a memorandum of agreement on January 30, 2019 for the project.
Greenergy also partnered with a Chinese multinational company for the distribution of solar powered products in the Philippines.
In a disclosure Monday, Greenergy said it signed an international distributorship agreement with Hanergy Thin Film Power Asia Pacific Limited.
The Beijing-based company is engaged in the business of manufacturing and selling solar-powered related products. It is touted as the world’s largest thin-film solar company.
Under the agreement, Greenergy was appointed as Hanergy’s distributor in the Philippines for the promotion and sale of all Hanergy solar products including the new and innovative Film Flat SOLARtile.
The agreement will have a term of one year with an option to renew upon expiration of the original term.
The exclusive distributorship comes at a time when the Philippines is facing a shortage of electricity. The move designed to expand capacity with clean, renewable energy using thin film will provide immediate relief to the metropolis.
Greenergy Holdings Incorporated (GREEN) was originally incorporated as MUSX Corporation (MSC) on January 29, 1992. In 1999, with the approval of its shareholders, the Company became a holding company and presently continues as such.
In the latter part of 2010, under a new management, it began its initiative in venturing into renewable energy business opportunities. It has completed a 20mw biomass power plant in Negros.