Mr. Charles Wang reports

CF ENERGY ANNOUNCES Q2 AND 1H RESULT OF 2023

CF Energy Corp. has filed its unaudited condensed interim consolidated financial results for the three-month and six-month periods ended June 30, 2023 (Q2 2023 and H1 2023, respectively).

Q2 2023 financial highlights

Revenue in Q2 2023 was RMB117.4 million (approximately $22.8 million), an increase of RMB33.4 million (approximately $6.3 million), or 40 per cent, from RMB84.0 million (approximately $16.5 million) for the three-month period ended June 30, 2022 ("Q2 2022").

Gross profit in Q2 2023 was RMB34.9 million (approximately $6.8 million), an increase of RMB11.7 million ($2.2 million) or 51 per cent from RMB23.2 million (approximately $4.6 million) in Q2 2022. Overall Gross margin in Q2 2023 was 29.8 per cent, an increase of 2.2 percentage points from 27.6 per cent in Q2 2022.

Net profit in Q2 2023 was RMB16.5 million (approximately $3.3 million), an increase of RMB16.4 million (approximately $3.3 million) from RMB0.1 million (approximately $0.0 million) in Q2 2022. Net profit in Q2 2023 included non-recurring items. On a comparable basis, after excluding the non-recurring items, the fair value change on derivative financial instrument of RMB2.7 million (approximately $0.5 million), the adjusted net profit in Q2 2023 (non-IFRS) was RMB13.8 million (approximately $2.8 million), an increase of RMB18.0 million (approximately $3.7 million) or 425 per cent from adjusted net loss of RMB4.2 million (approximately $0.9 million) in Q2 2022. Basic earnings per share ("EPS") in Q2 2023 was RMB0.27 ($0.05) per share. Adjusted loss per share in Q2 2023 was RMB0.21 ($0.04) per share (non-IFRS).

EBITDA (Non-IFRS measure) in Q2 2023 was RMB32.2 million (approximately $6.2 million), an increase of RMB15.8 million (approximately $3.0 million), or 96 per cent, from RMB16.4 million (approximately $3.2 million) in Q2 2022. EBITDA in Q2 2023 included non-recurring items. On a comparable basis, after excluding the non-recurring items, the fair value change on derivative financial instrument of RMB2.7 million (approximately $0.5 million), the adjusted EBITDA in Q2 2023 (non-IFRS) was RMB29.5 million (approximately $5.7 million), an increase of RMB17.4 million (approximately $3.4 million), or 143 per cent, from RMB12.1 million (approximately $2.3 million) in Q2 2022.

1H 2023 financial highlights

Revenue in 1H 2023 was RMB217.5 million (approximately $42.3 million), an increase of RMB38.1 million (approximately $7.1 million), or 21 per cent, from RMB179.4 million (approximately $35.2 million) for the six-month period ended June 30, 2022 ("1H 2022").

Gross profit in 1H 2023 was RMB63.5 million (approximately $12.3 million), an increase of RMB3.0 million ($0.4 million) or 5 per cent from RMB60.5 million (approximately $11.9 million) in 1H 2022. Overall Gross margin in 1H 2023 was 29.2 per cent, a decrease of 4.6 percentage points from 33.8 per cent in 1H 2022.

Net profit in 1H 2023 was RMB20.0 million (approximately $3.9 million), an increase of RMB8.6 million (approximately $1.7 million), or 75 per cent, from RMB11.4 million (approximately $2.2 million) in 1H 2022. Net profit in 1H 2023 included non-recurring items. On a comparable basis, after excluding the non-recurring items, the fair value change on derivative financial instrument of RMB4.7 million (approximately $0.9 million) and government financial assistance of RMB0.8 million (approximately $0.1 million), the adjusted net profit in 1H 2023 (non-IFRS) was RMB14.5 million (approximately $2.9 million), an increase of RMB13.5 million (approximately $2.7 million) from RMB1.0 million (approximately $0.2 million) in 1H 2022.

Basic earnings per share ("EPS") in 1H 2023 was RMB0.36 ($0.07) per share. Adjusted EPS in 1H 2023 was RMB0.22 ($0.04) per share (non-IFRS).

EBITDA (Non-IFRS measure) in 1H 2023 was RMB52.2 million (approximately $10.1 million), an increase of RMB5.1 million (approximately $0.9 million), or 11 per cent, from RMB47.1 million (approximately $9.2 million) in 1H 2022. EBITDA in 1H 2023 included non-recurring items. On a comparable basis, after excluding the effects of non-recurring items, the fair value change on derivative financial instrument of RMB4.7 million (approximately $0.9 million) and government financial assistance of RMB0.8 million (approximately $0.1 million), adjusted EBITDA in 1H 2023 was RMB46.7 million (approximately $9.1 million), an increase of RMB10.0 million (approximately $1.9 million), or 27 per cent, from RMB36.7 million (approximately $7.2 million) in 1H 2022.

Following the relaxation of COVID-19 restriction policy at the turn of 2023 in China, we are very pleased to report that both business and economic recovery had picked up greater momentum in the 2nd quarter of 2023 which saw a 40 per cent period-to-period increase in revenue for that period with an overall increase of 21 per cent for the interim period of 2023. Bottom line profit also improved significantly as a result with adjusted net profit (non-IFRS) of RMB13.8 million for the 2nd quarter of 2023 and RMB14.5 million for the interim period of 2023. Going forward, we will continue to focus on the integrated smart energy and the smart mobility segments of the Company and continue to expand the businesses in China and transition clean energy business as an integrated energy player.

The unaudited condensed interim consolidated financial results and Management's Discussion and Analysis (MD&A) can be downloaded from SEDAR or from the Company's website.

About CF Energy Corp. (Previously known as: Changfeng Energy Inc.)

CF Energy Corp. 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. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC.

We seek Safe Harbor.