LONDON (Alliance News) - Auhua Clean Energy PLC Thursday said its pretax profits rose in its first half on strong demand for its energy efficient technology.
The environmental technology company, which provides solar water heating to residential properties and is based in the Shandong Province of eastern China, said pretax profit rose 8.6% to GBP3.5 million from GBP3.2 million for the six months ended June 30.
Despite a slowing of growth in the Chinese property market, due to property developers waiting to react to policies adopted by new leader, President Xi Jinping, sales at Auhua increased 15% to GBP11.8 million from GBP9.7 million. The company said the market still remains strong, investment in their technologies rapidly increased in the period, and it secured more projects directly with developers as oppose to through third parties.
Auhua said its pretax numbers would have been higher if not for an increase in administrative expenses during the period due to higher staff overheads and maintenance costs.
The company said it received a number of awards during the year regarding energy efficiency.
Auhua is moving forward with its acquisition of Taiwan Zolar Technology Co. Ltd. It said it is completing due-diligence tests and said it believes the acquisition will propel its operations into the global market.
In addition, Auhua said it thinks its profits will increase in its second half as the property market improves and it starts a traditionally high sales period. The company said it expects finances to at least meet market expectations for its full year.
"We have also been recognised by the China authorities for our pioneering approach to innovation in our products. Our strategic focus is to continue to grow the business and the potential acquisition of Taiwan Zolar is expected to further strengthen Auhua and take it to the next stage of technological innovation," Chairman Raphael Tham said in a statement.
Auhua shares were down 0.88 pence, or 3.8%, to 22.12 pence Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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