(Alliance News) - China New Energy Ltd on Thursday reported its "best ever" annual performance and declared a positive outlook for 2020 on a strong forward order book.
The stock was trading 8.4% higher at 2.33 pence each on Thursday afternoon in London.
For 2019, the ethanol production system provider reported a 59% revenue rise to CNY398.6 million, around GBP46 million, from CNY250.0 million in 2018. Pretax profit was CNY72.5 million, up from CNY47.1 million.
No dividend was declared.
The revenue growth was attributed to increased market demand, the introduction of favourable policies by the Chinese government to develop the ethanol fuel industry, and the completion of projects in its order book for the provision of ethanol production system technology integrated services in the ethanol fuel, alcoholic beverages and other industries.
China New Energy said net profit was CNY59.2 million, up 29% from CNY45.8 million. It said net profit would have been higher but was reduced on exceptional expenses such as fees relating to the company's proposed re-listing on the Hong Kong Stock Exchange.
Gross profit margin was 27% in 2019, down from 29% in 2018.
Looking ahead, the company said it entered 2020 with an order book of CNY584.9 million and added that it believes any disruption to its business caused by the Covid-19 outbreak will be temporary and short-term.
"The board and I are very optimistic about 2020 and the long-term future of China New Energy. I am very confident about the immediate outlook for 2020 and the investment value of our shares which is expected to be reflected in our medium to long term market valuation," said Chair Yu Weijun.
By Ife Taiwo; ifetaiwo@alliancenews.com
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