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Converge Reports Record Q4 and FY 2023 Results

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 Gross Sales1 Top $4.0 Billion in FY 2023;

Q4 Marks Consecutive Billion Dollar Quarter

TORONTO and GATINEAU, QC, March 6, 2024 /PRNewswire/ — Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) is pleased to provide its financial results for the three months and fiscal year ended December 31, 2023.  All figures are in Canadian dollars unless otherwise stated.

Fourth Quarter 2023 Highlights (year-over-year, unless otherwise noted): 

Gross sales1 of $1.08 billion, an increase of $121.9 million or 12.7%;Gross sales organic growth1 of 10.9% and gross profit organic growth1 of 5.7%;Revenue of $651.1 million, an increase of $10.2 million;Gross profit increased 7.5% to $181.5 million representing a gross margin of 27.9%;Adjusted EBITDA1 increased 8.0% to $46.5 million;Net income of $4.8 million, an increase of $9.4 million;Cash from operating activities was $114.5 million, an increase of $84.1 million, compared to $30.4 million for the comparative period in the prior year;Reduced net debt1 by $52.0 million year-over-year and by $97.7 million compared to Q3, FY23 to $209.8 million, representing a Leverage Ratio1 of 1.23x as at December 31, 2023; andProduct backlog2 at the end of the fourth quarter 2023 was $412 million, a decrease of $67 million from the comparative period in the prior year.

Fiscal Year 2023 Highlights (year-over-year, unless otherwise noted):

Gross sales1 of $4.04 billion in the year, up from $3.09 billion, representing an increase of 30.6%;Gross sales organic growth1 of 10.9% and gross profit organic growth of 8.1%;Revenue of $2.71 billion, up from $2.16 billion, representing an increase of 25.0%;Gross profit of $702.9 million, an increase of 27.6% from $550.8 million for the comparative period in the prior yearAdjusted EBITDA1 of $170.3 million, up $27.4 million or 19.2% year over year;Cash from operating activities amounted to $229.5 million, an increase of $188.0 million; andRepurchased 5.3 million shares for an aggregate investment of $17.3 million.

“We are entering 2024 with significant pipeline momentum, propelled by demand for legacy modernizations, for advanced customer-centric solutions, and by the massive surge of interest in artificial intelligence (AI) solutions,” said Shaun Maine, Group CEO. “We are extremely well positioned – strategically, operationally and financially – to capitalize on this tailwind to drive industry-leading growth and to continue improving our margin profile, our visibility and by leveraging our cash generating abilities for the benefit of our shareholders.”

________________________________

1 This is a Non-IFRS measure (including non-IFRS ratio) and not a recognized, defined or a standardized measure under IFRS. See the “Non-IFRS Financial Measures” section of this press release for definitions, uses and a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures.

2 Bookings backlog is calculated as purchase orders received from customers not yet delivered at the end of the fiscal period for Canada and United States.

Financial Summary 

In $000s except per share amounts

 

Q4 2023

 

Q4 2022

 

FY 2023

 

FY 2022

Gross Sales

1,078,663

956,803

4,037,901

3,090,981

Revenue

651,090

640,927

2,705,207

2,164,647

Gross profit (GP)

181,529

168,916

702,880

550,768

Gross profit (GP) %

27.9 %

26.4 %

26.0 %

25.4 %

Adjusted EBITDA

46,505

43,064

170,294

142,868

Subsequent to Quarter-End

On March 5, 2024, the Board declared a quarterly dividend of $0.01 per common share to be paid on March 26, 2024 to shareholders of record at the close of business on March 12, 2024.

Financial Outlook

Converge is providing the following guidance for the three months ended March 31, 2024 (Q1 2024) and fiscal 2024 (Fiscal 2024) as follows:

Q1 2024 Expected

FY 2024 Expected

Gross profit

$170 million – $178 million

$735 million – $760 million

Adjusted EBITDA

$40 million – $44 million

$185 million – $198 million

Conference Call Details:
Date: Wednesday, March 6th, 2024
Time: 8:00 AM Eastern Standard Time

Participant Webcast Link:
Webcast Link – https://app.webinar.net/qvbWB9Znmdx 

Participant Dial-in Details with Operator Assistance:
Conference ID: 48044078
Toronto: 416-764-8609
North American Toll Free: 888-390-0605

International Toll-Free Numbers:
Germany: 08007240293
Ireland: 1800939111
Spain: 900834776
Switzerland: 0800312635
United Kingdom: 08006522435

You may register and enter your phone number to receive an instant automated call back via https://emportal.ink/4bgx1AU 

Recording Playback:
Webcast Link – https://app.webinar.net/qvbWB9Znmdx 

Toronto: 416-764-8677
North American Toll Free:  1-888-390-0541
Replay Code: 044078 #
Expiry Date: March 13th, 2024

Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be required to access the webcast. A live audio webcast accompanied by presentation slides and archive of the conference call and webcast will be available by visiting the Company’s website at https://convergetp.com/investor-relations/.

About Converge

Converge Technology Solutions Corp. is a services-led, software-enabled, IT & Cloud Solutions provider focused on delivering industry-leading solutions. Converge’s global approach delivers advanced analytics, artificial intelligence (AI), application modernization, cloud platforms, cybersecurity, digital infrastructure, and digital workplace offerings to clients across various industries. The Company supports these solutions with advisory, implementation, and managed services expertise across all major IT vendors in the marketplace. This multi-faceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors. For more information, visit convergetp.com.

Summary of Consolidated Statements of Financial Position
(expressed in thousands of Canadian dollars)

December 31, 2023

December 31, 2022

Assets

Current

Cash

$

169,872

159,890

Restricted cash

547

5,230

Trade and other receivables

814,231

781,683

Inventories

73,166

158,430

Prepaid expenses and other assets

26,528

23,046

1,084,344

1,128,279

Non-current

Other assets

53,579

4,646

Property, equipment, and right-of-use assets, net

75,488

88,352

Intangible assets, net

375,181

463,751

Goodwill

564,770

563,848

Total assets

$

2,153,362

2,248,876

Liabilities

Current

Trade and other payables

$

913,994

824,924

Other financial liabilities

54,095

123,932

Deferred revenue

59,325

60,210

Borrowings

1,664

421,728

Income taxes payable

9,286

7,112

1,038,364

1,437,906

Non-current

Other financial liabilities

57,668

77,183

Borrowings

378,007

Deferred tax liabilities

67,168

102,977

Total liabilities

$

1,541,207

1,618,066

Shareholders’ equity

Common shares

599,434

595,019

Contributed surplus

10,970

7,919

Exchange rights

1,705

Accumulated other comprehensive income

3,963

13,708

Deficit

(28,167)

(18,441)

Total equity attributable to shareholders of Converge

586,200

599,910

Non-controlling interest

25,955

30,900

612,155

630,810

Total liabilities and shareholders’ equity

$

2,153,362

2,248,876

Summary of Consolidated Statements of Loss and Comprehensive Loss
(expressed in thousands of Canadian dollars)

Three months ended

December 31,

Twelve months ended
December 31,

2023

2022

2023

2022

Revenue

Product

$

490,948

507,630

2,098,880

1,700,667

Service

160,142

133,297

606,327

463,980

Total revenue

651,090

640,927

2,705,207

2,164,647

Cost of sales

469,561

472,011

2,002,327

1,613,879

Gross profit

181,529

168,916

702,880

550,768

Selling, general and administrative expenses 

137,451

126,377

541,118

413,644

Income before the following

44,078

42,539

161,762

137,124

Depreciation and amortization

29,212

20,363

111,451

75,114

Finance expense, net

10,355

9,062

41,225

19,860

Acquisition, integration, restructuring and other

2,679

4,621

13,648

24,113

Change in fair value of contingent consideration

5,464

14,033

14,673

14,033

Share-based compensation expense

954

1,422

3,692

5,594

Other (income) expense, net 

(132)

2,057

(4,362)

(20,375)

(Loss) Income before income taxes

(4,454)

(9,019)

(18,565)

18,785

Income tax recovery

(9,235)

(4,363)

(12,172)

(4,059)

Net (loss) income

$

4,781

(4,656)

(6,393)

22,844

Net (loss) income attributable to:

 

Shareholders of Converge

5,861

(3,528)

(1,448)

27,283

Non-controlling interest

(1,080)

(1,128)

(4,945)

(4,439)

$

4,781

(4,656)

(6,393)

22,844

Other comprehensive (loss) income

Exchange gain (loss) on translation of foreign operations

916

14,238

(9,745)

13,379

Comprehensive (loss) income 

$

5,697

9,582

(16,138)

36,223

Comprehensive (loss) income attributable to:

Shareholders of Converge

6,777

10,710

(11,193)

40,662

Non-controlling interest

(1,080)

(1,128)

(4,945)

(4,439)

5,697

9,582

(16,138)

36,223

Adjusted EBITDA  

$

46,505

43,064

170,294

142,868

Adjusted EBITDA as a % of Gross profit

25.6 %

25.5 %

24.2 %

25.9 %

Adjusted EBITDA as a % of Revenue

7.1 %

6.7 %

6.3 %

6.6 %

Summary of Consolidated Statements of Cash Flows
(expressed in thousands of Canadian dollars)

For the three months
ended December 31,

For the twelve months

ended December 31,

2023

2022

2023

2022

Cash flows (used in) from operating activities

Net (loss) income

$

4,781

$

(4,656)

$

(6,393)

$

22,844

Adjustments to reconcile net (loss) income to cash
   from operating activities

Depreciation and amortization

31,639

21,994

119,983

80,065

Unrealized foreign exchange (gains) losses

(4)

951

(2,822)

(19,581)

Share-based compensation expense

954

1,422

3,692

5,594

    Finance expense, net

10,355

9,062

41,225

19,860

    Loss (gain) on sale of property and equipment

335

(263)

    Change in fair value of contingent consideration

5,464

14,033

14,673

14,033

   Income tax recovery

(9,235)

(4,363)

(12,172)

(4,059)

44,289

38,443

157,923

118,756

Changes in non-cash working capital

71,888

(6,268)

90,746

(56,463)

116,177

32,175

248,669

62,293

Income taxes paid

(1,696)

(1,780)

(19,129)

(20,707)

Cash from operating activities

114,481

30,395

229,540

41,586

Cash flows used in investing activities

Purchase of property, equipment and intangible assets

(2,038)

(5,131)

(10,828)

(23,942)

Proceeds on disposal of property and equipment 

7

475

3,756

299

Payment of deferred and contingent consideration

(1,238)

(4,521)

(65,887)

(21,636)

Payment of non-controlling interest liability

(30,967)

Business combinations, net of cash acquired

(64,466)

(418,147)

Cash used in investing activities

(3,269)

(73,643)

(103,926)

(463,426)

Cash flows (used in) from financing activities

Transfers from (to) restricted cash

2,615

(39)

4,683

(4,411)

Interest paid

(7,938)

(6,022)

(33,724)

(10,309)

Dividends paid

(2,042)

4

(6,156)

(1,084)

Payment of lease liabilities

(5,427)

(3,796)

(20,626)

(12,290)

Repurchase of common shares

(2,094)

(9,461)

(17,388)

(40,000)

Repayment of notes payable

(40)

(40)

(159)

(236)

Net (repayment of) proceeds from borrowings

(29,882)

46,734

(40,475)

404,640

Cash (used in) from financing activities

(44,808)

27,380

(113,845)

336,310

Net change in cash during the period

66,404

(15,868)

11,769

(85,530)

Effect of foreign exchange on cash

(1,753)

3,529

(1,787)

(2,773)

Cash, beginning of the period

105,221

172,229

159,890

248,193

Cash, end of the period

$

169,872

$

159,890

$

169,872

$

159,890

Non-IFRS Financial Measures

This press release refers to certain performance indicators including Adjusted EBITDA, gross profit, gross sales, gross sales organic growth and net debt, that do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.  Management believes that these measures are useful to most shareholders, creditors, and other stakeholders in analyzing the Company’s operating results and can highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.

Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess the ability to meet capital expenditure and working capital requirements. These non-IFRS financial measures should not be considered as an alternative to the consolidated income (loss) or any other measure of performance under IFRS. Investors are encouraged to review the Company’s financial statements and disclosures in their entirety, are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures.

Please see “Non-IFRS Financial & Supplementary Financial Measures” and “Summary of Consolidated Financial Results” in the Company’s most recent Management’s Discussion and Analysis, which is available on the Company’s profile on SEDAR+ at www.sedarplus.ca, for further details on certain non-IFRS measures, which information is incorporated by reference herein.

Adjusted EBITDA

Adjusted EBITDA represents net income adjusted to exclude amortization, depreciation, interest expense and net finance expense, foreign exchange gains and losses, other expenses and income, share-based compensation expense, income tax expense, change in fair value of contingent consideration, and acquisition, integration, restructuring and other expenses.  Acquisition and transaction related costs primarily consists of acquisition-related compensation tied to continued employment of pre-existing shareholders of the acquiree not included in the total purchase consideration and professional fees. Integration costs primarily consist of professional fees incurred related to integration of acquisitions completed. Restructuring costs mainly represent employee exit costs as a result of synergies created from acquisitions and organizational changes. The IFRS measure most directly comparable to Adjusted EBITDA presented in the Company’s financial statements is net (loss) income before taxes.

The Company’s definition of Adjusted EBITDA will likely differ from that used by other companies and therefore comparability may be limited.  Adjusted EBITDA should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS.

The Company has reconciled Adjusted EBITDA to the most comparable IFRS financial measure as follows:

For the three months
ended December 31,

For the twelve months
ended December 31,

2023

2022

2023

2022

Net (loss) income before taxes

 

$

(4,454)

(9,019)

(18,565)

18,785

Finance expense, net

10,355

9,062

41,225

19,860

Share-based compensation expense

954

1,422

3,692

5,594

Depreciation and amortization

29,212

20,363

111,451

75,114

Depreciation included in cost of sales

2,427

1,631

8,532

4,950

Other (income) expense

(132)

951

(4,362)

(19,581)

Change in fair value of contingent
consideration

5,464

14,033

14,673

14,033

Acquisition, integration, restructuring and
other

2,679

4,621

13,648

24,113

Adjusted EBITDA

$

46,505

43,064

170,294

142,868

Adjusted EBITDA as a % of Gross Profit1

The Company believes that Adjusted EBITDA as a % of gross profit is a useful measure of the Company’s operating efficiency and profitability. This is calculated by dividing Adjusted EBITDA by gross profit.

Adjusted EBITDA as a % of Revenue1

The Company believes that Adjusted EBITDA as a % of Revenue is a useful measure of the Company’s operating efficiency and profitability. This is calculated by dividing Adjusted EBITDA by revenue.

Adjusted Net Income (Loss) and Adjusted Earnings per Share (“Adjusted EPS”) 1

Adjusted Net Income represents net income adjusted to exclude acquisition, integration, restructuring and other expenses, change in fair value of contingent consideration, amortization of acquired intangible assets, unrealized foreign exchange gain/loss, and share-based compensation. The Company believes that Adjusted Net Income is a more useful measure than net income as it excludes the impact of one-time, non-cash and/or non-recurring items that are not reflective of Converge’s underlying business performance. Adjusted EPS is calculated by dividing Adjusted Net Income by the total weighted average shares outstanding on a basic and diluted basis. The IFRS measure most directly comparable to Adjusted Net Income presented in the Company’s financial statements is net (loss) income and net (loss) income per share.

Leverage Ratio

The Company defines leverage ratio as net debt (current and non-current borrowings less cash) divided by trailing twelve months Adjusted EBITDA.

The Company has provided a reconciliation to the most comparable IFRS financial measure as follows:

For the three months

For the twelve months

ended December 31,

ended December 31,

2023

2022

2023

2022

Net income (loss)

$    4,781

(4,656)

(6,393)

22,844

Acquisition, integration, restructuring and other

2,679

4,621

13,648

24,113

Change in fair value of contingent
consideration

5,464

14,033

14,673

14,033

Amortization on intangibles

24,468

16,502

87,259

59,549

Foreign exchange (loss) gain

(132)

951

(4,480)

(19,581)

Share-based compensation

954

1,422

3,692

5,594

Adjusted Net Income

$    38,214

32,873

108,399

106,552

Adjusted EPS -Basic

0.19

0.16

0.53

0.50

Gross sales and gross sales for organic growth

Gross sales, which is a non-IFRS measurement, reflects the gross amount billed to customers, adjusted for amounts deferred or accrued. The Company believes gross sales is a useful alternative financial metric to net revenue, the IFRS measure, as it better reflects volume fluctuations as compared to net revenue. Under the applicable IFRS 15 ‘principal vs agent’ guidance, the principal records revenue on a gross basis and the agent records commission on a net basis. In transactions where Converge is acting as an agent between the customer and the vendor, net revenue is calculated by reducing gross sales by the cost of sale amount. 

The Company has provided a reconciliation of gross sales to net revenue, which is the most comparable IFRS financial measure, as follows:

For the three months

For the twelve months

ended December 31,

ended December 31,

2023

2022

2023

2022

Product

$    719,974

$    638,261

$    2,747,359

$     2,057,477

Managed services

40,966

36,244

165,512

138,176

Third party and professional services

317,723

282,298

1,125,030

895,328

Gross sales

$ 1,078,663

$    956,803

$    4,037,901

$    3,090,981

Less: adjustment for sales transacted
as agent

427,573

315,876

1,332,694

926,334

Revenue

$    651,090

$    640,927

$    2,705,207

$    2,164,647

Organic Growth

The Company measures organic growth at the gross sales and gross profit levels, and includes the contributions under Converge ownership in the current and comparative period(s). In calculating organic growth, the Company therefore deducts gross sales and gross profit generated from all corresponding prior comparable pre-acquisition period(s) from the current reporting period(s) included in the consolidated results.

Gross sales organic growth is calculated by deducting prior period gross sales, from current period gross sales for the same portfolio of companies. Gross sales organic growth percentage is calculated by dividing organic growth by prior period reported gross sales.

The following table calculates gross sales organic growth for three and twelve months ended December 31, 2023:

For the three months

For the twelve months

ended December 31,

ended December 31,

2023

2022

2023

2022

Gross sales

1,078,663

956,803

4,037,901

3,090,981

Less: gross sales from companies not
owned in comparative period

17,286

310,996

611,045

945,777

Gross sales of companies owned in
comparative period

1,061,377

645,807

3,426,856

2,145,204

Prior period gross sales

956,803

642,151

3,090,981

1,974,790

Organic Growth – $

104,574

3,656

335,875

170,414

Organic Growth – %

10.9 %

0.6 %

10.9 %

8.6 %

Gross profit organic growth is calculated by deducting prior period gross profit, as reported in the Companies public filings, from current period gross profit for the same portfolio of companies. Gross profit organic growth percentage is calculated by dividing organic growth by prior period reported gross profit.

For the three months

For the twelve months

ended December 31,

ended December 31,

2023

2022

2023

2022

Gross profit

181,529

168,916

702,880

550,768

Less: gross profit from companies not
owned in comparative period

3,032

51,286

107,295

168,828

Gross profit of companies owned in
comparative period

178,497

117,630

595,585

381,940

Prior period gross profit

168,916

115,893

550,767

345,704

Organic Growth – $

9,581

1,737

44,818

36,236

Organic Growth – %

5.7 %

1.5 %

8.1 %

10.5 %

Forward-Looking Information
This press release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation regarding Converge and its business. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected” “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”. “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Specifically, statements regarding Converge’s forecast on gross profit and Adjusted EBITDA, expectations of future results, performance, prospects, the markets in which it operates, or about any future intention with regard to its business and acquisition strategies are considered forward-looking information. The foregoing demonstrates Converge’s objectives, which are not forecasts or estimates of its financial position, but are based on the implementation of its strategic goals, growth prospects, and growth initiatives. The forward-looking information, including management’s assessments of, and outlook for,  gross profit and Adjusted EBITDA, are based on management’s opinions, estimates and assumptions, including, but not limited to: (i) Converge’s results of operations will continue as expected, (ii) the Company will continue to effectively execute against its key strategic growth priorities, (iii) the Company will continue to retain and grow its existing customer base and market share, (iv) the Company will be able to take advantage of future prospects and opportunities, and realize on synergies, including with respect of acquisitions, (v) there will be no changes in legislative or regulatory matters that negatively impact the Company’s business, (vi) current tax laws will remain in effect and will not be materially changed, (vii) economic conditions will remain relatively stable throughout the period, (vii) the industries Converge operates in will continue to grow consistent with past experience, and (ix) those assumptions described under the heading “About Forward-Looking Information” in the Company’s Management’s Discussion and Analysis for the three and twelve-months ended December 31, 2023. While these opinions, estimates and assumptions are considered by the Company to be appropriate and reasonable in the circumstances as of the date of this press release, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information.

The forward looking information, including the achievement of target gross profit and Adjusted EBITDA set out above, are subject to significant risks including, without limitation: that the Company will be unable to effectively execute against its key strategic growth priorities, including in respect of acquisitions; the Company will be unable to continue to retain and grow its existing customer base and market share; risks related to the Company’s business and financial position; that the Company may not be able to accurately predict its rate of growth and profitability; risks related to economic and political uncertainty; income tax related risks; and those risk factors discussed in greater detail under the “Risk Factors” section of the Company’s most recent annual information form and under the heading “Risks and Uncertainties” in the Company’s most recent Management’s Discussion and Analysis, which are each available under the Company’s profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company’s control.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.

Although the Company bases these forward-looking statements on assumptions that it believes are reasonable when made, the Company cautions investors that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which it operates are consistent with the forward-looking statements contained in this press release, those results of developments may not be indicative of results or developments in subsequent periods.

There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents the company’s expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information or to publicly announce the results of any revisions to any of those statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

CONTACT: Investor Relations, Email:  investors@convergetp.com, Phone:  416-360-1495

 

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2025 Chinese economy: robust capacity in coping with pressure and risks

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BEIJING, Dec. 22, 2024 /PRNewswire/ — A news report from China.org.cn on China’s annual Central Economic Work Conference:

 

From China’s annual Central Economic Work Conference held last week, one can see clear targets and detect the continuity in the rationale behind the country’s economic roadmap for 2025. The tasks listed at the conference are in line with China’s development needs in the current phase, and can to a degree respond to the external risks.

Firstly, the meeting urged efforts to vigorously boost consumption, a top-of-agenda task. Expanding domestic demand is not only a long-term priority for China, but also a coping strategy for the tougher challenges faced in exports. China’s efforts to stimulate consumption mainly fall into two categories. For one, enabling its citizens to have more to spend, by means of increasing income and alleviating burdens of low- and middle-income groups, and enabling more to enter the middle-income bracket; meanwhile, China will continue to diversify consumption scenarios, such as the debut economy, ice and snow economy and silver economy, for consumers to spend their disposable income.

Secondly, China is determined to let scientific and technological innovation drive the building of a modern industrial system, serving as a compass for China’s industrial economy development. In 2025, China is going to invest more in technological innovation, and strengthen studies in basic sciences and key core technologies, to drive industrial innovation, and furthermore achieve high standards in sci-tech self-reliance and strength.

Thirdly, China will maintain its high-level opening-up, and keep foreign trade and foreign investment stable. The size, quality and good reputation of China’s business with the world have been ever-growing, and that’s because the goal of China is to “make the cake bigger,” not “steal others’ shares of cake,” let alone “seize the whole cake.” To that end, China has improved the quality of its exports, explored new investment models, and made more countries stakeholders along the global value chain; meanwhile, it has also been ameliorating its market-access policies, and bettering the treatment of foreign-invested companies, so that more countries can benefit from the Chinese market. By November, China has removed all market access restrictions for foreign investors in the manufacturing sector, and service sectors including telecommunication and medical care are also opening their doors wider at a stable pace.

China shows great willingness to open up to the world, and boasts a good many partners; at the same time, the country’s economy has a solid foundation with many advantages, strong resilience and great potential, which means it possesses robust capacity in coping with pressure and risks.

 

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SOURCE China.org.cn

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India-born Avaada Group Commits $12bn to Transform Rajasthan into a Global Renewable Energy Hub

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MUMBAI, India, Dec. 23, 2024 /PRNewswire/ — Avaada Group, a leading name in the renewable energy sector, has announced an unprecedented investment of $12bn in Rajasthan, India, for accelerating green energy transition, thereby establishing the region as a global renewable energy powerhouse. This landmark announcement was made during the prestigious Rising Rajasthan 2024 Summit, attended by India’s Hon’ble Prime Minister Narendra Modi and Rajasthan’s Hon’ble Chief Minister Bhajanlal Sharma.

Highlighting Rajasthan’s strategic importance, Avaada Group’s Chairman Vineet Mittal, Guest of Honour at the event, stated, “Rajasthan’s vast solar and wind resources, coupled with the visionary leadership of the Hon’ble Prime Minister and Chief Minister, present an unparalleled opportunity to redefine the global renewable energy landscape. Avaada’s commitment of $12bn while driving green industrial manufacturing will also create millions of jobs, shaping a sustainable and inclusive future.”

Rajasthan stands out as a global hub for renewable energy, with over 142 GW of unmatched solar potential, supported by 325+ sunny days annually. The state’s pro-business policies, including the Rajasthan Investment Promotion Scheme 2024 and the Integrated Clean Energy Policy 2024, have attracted investments worth $78bn.

Avaada Group’s journey in Rajasthan began with a modest 150 MW solar project and has since evolved into multiple ventures, including one of the world’s largest single location renewable energy projects by an IPP. Key investments announced at the summit include:

1,200 MW Pumped Storage Project (PSP): A $700mn initiative to enhance energy storage and grid stability.Green Hydrogen and Ammonia Projects: Investments aimed at driving global decarbonization goals.Utility-Scale Solar and Wind Projects: Across Jhalawar, Kota, Barmer, and Bikaner, contributing significantly to India’s renewable energy targets.

With its strategic alignment to international sustainability frameworks like the EU’s Carbon Border Adjustment Mechanism (CBAM), Rajasthan offers a unique advantage for zero-carbon manufacturing and green industrial growth, positioning itself as a magnet for industries seeking sustainable operations while creating over 1mn green jobs.

“As a global renewable energy leader, Avaada is proud to participate in Rajasthan’s vision of becoming a green hub of industrial growth,” Mr. Mittal remarked. “Our investments aim to double the region’s economy by 2030, aligned with global efforts to combat climate change.”

With its strategic initiatives, Avaada Group is poised to attract international collaborations, setting a benchmark for renewable energy innovation and sustainable industrial development.

About Avaada Group

Avaada Group is a leader in the global energy transition, specializing in solar module manufacturing, renewable power generation, and the development of green hydrogen, green methanol, green ammonia, and sustainable aviation fuel projects. Under the visionary leadership of Mr. Vineet Mittal, Avaada has become a significant global player in clean energy. Avaada Energy, the group’s renewable power generation arm, aims to achieve a capacity of 11 GWp by 2026. The group’s strong execution capabilities have attracted substantial international investment, including a $1.3bn commitment in early 2023, with $1bn from Brookfield’s Energy Transition Fund and $300mn from GPSC, a subsidiary of Thailand’s PTT Group.

Contact

Kiren Srivastav
kiren.srivastav@avaada.com

Charu Sehgal
charu.sehgal@avaada.com 

 

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The Shining Achievements of Busan MICE in 2024

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BUSAN, South Korea, Dec. 23, 2024 /PRNewswire/ — Amid intensifying competition among MICE host cities to attract large events, 2024 saw Busan take bold steps that led to impressive results, proving its potential as a prime MICE destination. The efforts made by Busan in 2024 in attracting major international conferences, promoting ESG management, enhancing networking, and strengthening city identity are outlined below.

International Conferences Held in the Global MICE City of Busan

Busan hosted several significant international conferences in 2024. In July, it welcomed the 45th Scientific Assembly of the Committee on Space Research (COSPAR 2024), drawing around 2,700 space scientists from 60 countries to Korea. This was the first time the event was held in the country. In August, after eight years of preparation, the city hosted the 37th International Geological Congress (IGC 2024), a prestigious event with a 146-year history, at BEXCO. In November, Busan hosted the 5th Session of the UN Intergovernmental Negotiating Committee on Plastic Pollution (INC-5). With participation from 193 institutions and countries, INC-5 was the final dialogue in a series of international discussions on controlling plastic pollution, making it a crucial conference on the future health of Earth’s marine environment and placing Busan at the forefront of global attention.

Wide-ranging ESG Activities for the Sustainability of MICE

Busan’s selection to host INC-5 was made possible by its strong track record of ESG initiatives within the MICE industry. The Busan Tourism Organization (BTO) CVB’s exhibition hall was decorated using recyclable wood, and with the assistance of eco-friendly suppliers, recycling stations were set up to facilitate the collection of waste generated during the event. Aiming for a paperless conference, digital materials and multifunctional electronic platforms were also used. Continuous efforts in various ESG initiatives were made through collaborations with Busan MICE Alliance (BMA) members. Environmental reports were made, containing carbon reduction amounts for all products used at event venues and greenhouse gas reduction indicators for transportation during each event, to create more eco-friendly events.

Improvement of Busan’s MICE Network Through Communication

The Busan MICE Alliance and the Busan MICE industry, in general, grew in solidarity through strong networking this year. The BTO CVB worked to fundamentally enhance Busan’s MICE industry by increasing local demand for MICE events and maintaining an efficient collaboration network. Regular meetings of the BMA focused on the concerns of its members to improve communication. Additionally, Busan MICE Alliance Day was held to strengthen ties among members of Busan’s MICE industry, fostering discussions on industry developments both locally and internationally, and exploring joint marketing opportunities. New members were recruited into the BMA in both the first and second halves of the year, enhancing collaboration between the public and private sectors for the success of Busan’s MICE industry. The Busan MICE Business Innovation Platform, which provides users with access to news and information about Busan’s MICE industry, was launched and well-received.

Unique Venues That Capture Busan’s Local Identity

Participants in MICE events now expect more than just the exchange of knowledge. They seek a special experience, and MICE destinations should leverage their local identity to provide experiences that can only be found in their cities or regions. Recognizing this industry trend, Busan has identified a variety of unique venues that highlight the history, culture, and distinctiveness of the city. Venues such as Domoheon, the former residence of Busan’s mayor; Space OneZ, a renovated old warehouse; and Holi Lounge, offering a surfing workation, exemplify this approach. The MICE events held at these unique venues are also organized in a way that showcases the best of Busan’s local identity.

As another busy year draws to a close, Busan, as a MICE city, is looking forward to making even greater strides next year. The 18th World Congress on Computational Mechanics (WCCM) in 2028, along with many other international MICE events, are set to take place in Busan, and the BTO CVB is actively working toward this goal.

With aspirations of reaching the pinnacle of the MICE industry, Busan will continue its efforts to be a sustainable, cooperative, and unique MICE city that is globally recognized.

 

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SOURCE Busan Tourism Organization

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