LONDON (Alliance News) - Auhua Clean Energy PLC Monday reported a drop in profit in 2014 as it suffered from increased stainless steel prices, a rise in administrative expenses and pricing pressures, and it was unable to fulfil all orders in its fourth quarter.
The environmental technology group reported a drop in pretax profit in 2014 to GBP4.8 million from GBP6.8 million in 2013, as revenue fell to GBP24.6 million from GBP26.1 million.
Auhua said that it received considerable orders in the fourth quarter of 2014 but was unable to fulfil them all due to already operating at full production capacity and that some orders were delayed due to a poor property climate in China. It added that an increase in stainless steel prices in the second half of the year, pricing pressures from its larger customers and increased administrative expenses hit its gross margin and profit.
"We have ambitious domestic and international plans as global demand for solar products continues to thrive and the competitive adoption of clean power becomes more firmly fixed in the minds and actions of countries and governments. We look forward to a promising future ahead," Chairman David Sumner said in a statement.
Shares in Auhua closed down 1.5% at 4.80 pence on Monday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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