LONDON (Alliance News) - Auhua Clean Energy PLC said Friday that its pretax profit and revenue fell in 2014 compared to 2013, and it has raised GBP1.7 million through its previously announced discounted share placing and subscription.
The placing comprised of 9.0 million shares, and the subscription 29.3 million shares, both at the price of 4.5 pence each.
Shares in Auhua are trading down 32% at 5.38 pence Friday morning. The stock had dropped 60% on Tuesday when it confirmed press speculation that it was considering conducting a share placing "at a substantial discount to the current market price".
Auhua said it has realised a pretax profit of CNY48.7 million, equivalent to GBP4.8 million, on revenue of CNY248.9 million, equivalent to GBP24.6 million. This is reduced from the pretax profit of GBP6.8 million it posted in 2013, on revenue of GBP26.1 million.
The company said that whilst its operations in China are profitable and cash positive, liquidity in China continues to be tight, and its working capital requirements have increased. It has looked to raise money to fund its capital expansion and working capital, but said this has proved difficult, hence the discounted price of the placing and subscription.
"China remains one of the world's biggest solar technology markets and, in spite of a challenging economic backdrop in the country, Auhua has had a really strong year. We have domestic and international expansion plans as global demand for solar products continues to thrive. The placing and Subscription allows us to fund our expansion into Taiwan and the United Arab Emirates while also increasing production capacity in China. We look forward to a promising future ahead," said Chief Executive Officer Chen Anxiang in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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