(Alliance News) - China New Energy Ltd on Friday reported sharp interim profit and revenue growth on new contract wins.
In the six months to June 30, China New Energy's pretax profit jumped to CNY27.1 million, about GBP3.1 million, from CNY8.1 million, about GBP923,000, the year before.
The sharp growth was attributed to fulfilling orders rolled over from 2018 and new contracts won during the period. The new contracts stemmed from the "continuous growth in demand for ethanol production systems and the ability in securing ethanol fuel projects and alcoholic beverage upgrade projects," the company said.
The company's revenue more than doubled to CNY163.9 million from CNY69.1 million.
"I am very pleased to report the company's remarkably strong interim results, which are a result of completing contracts in the existing order book rolled over from 2018 and new contracts won from companies such as Heilongjiang Hongzhan Bioenergy and Inner Mongolia Zhongneng Biotechnology," said Chair Yu Weijun.
Weijun continued: "The implementation of the People's Republic of China thirteenth Five Year Plan for Renewable Energy Development continues to drive the ethanol fuel industry. We believe that our advanced technologies and research and development capabilities have given us a competitive edge and allowed us to continue to secure contracts from customers through our provision of ethanol production system technology integrated services in China."
Weijun said he is "very confident" about the outlook of the company for the remainder of 2019 and 2020.
As a result of these heightened expectations, the company has submitted an application to Hong Kong Exchanges & Clearing Ltd to list on the Hong Kong stock exchange Main Board.
"The company's fundamentals and outlook have substantially grown over the last three years, but this is not reflected in the company's share price on AIM. It is expected that the proposed listing on the HKEx will deliver a better valuation for shareholders and provide the company with the ability to gain more opportunity to raise capital to expand the business," added Weijun.
Shares in China New Energy closed 4.4% higher in London on Friday at 2.40 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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