Results expected next week14 Sep 2018 09:37
last results.. The Group recorded an increase of 221% in revenue to RMB252.4million for the financial year 2017 (“FY2017”), reflecting most contracts signed in 2017 were substantially completed in the FY2017 reporting period. The total value of contracts secured in FY2017 was RMB359 million. Our contracts’ gross profit also increased to RMB73.6million in FY2017 compared to a gross profit of RMB27million in FY2016. This year’s gross profit margin was 29% compared to the previous year’s 34%. For the year ended 31 December 2017, the Group’s total revenue was RMB252.4 million (c. £28.7 million), an increase of 221% from RMB78.6 million (c. £8.7 million).
We are pleased to report that CNE has significantly grown its revenues and underlying profitability. The growth in business performance is mostly attributed to a change of policy in China to increase the production of fuel ethanol, which resulted in winning and delivering a number of high profile contracts with a mix of existing and new customers, including Jilin Boda Biochemical Ltd, COFCO Anhui, Liaoyuan Jiufeng Biotech, and COFCO Guangxi amongst others.
The gross profit for the year was RMB73.6 million (c. £8.4 million) up 175% from a gross profit of RMB26.8 million (c. £3.0 million). For the year 2017, the group recorded a profit of RMB30.1 million (c. £3.4 million) up 734% from a profit of RMB3.6 million (c. £0.4 million) substantially improving on a solid performance in 2016.
We entered 2018 with a strong order book of RMB63.7 million (c. £7.3 million), which includes the balance
of started but not completed contracts from 2017. We continue to believe the change of policy in China to increase the production of fuel ethanol will drive sales opportunities for a significant number of new ethanol projects in China over the next 5 years. As a market leader, that has contributed technology and services to 60% of China’s ethanol projects, CNE is ideally positioned to capitalise upon this market growth opportunity.
I am optimistic about the Group’s prospects in 2018 and beyond. The positive change of fuel ethanol policy in China, combined with the development of new international markets and the emergence of new technology via in-house and partnerships has resulted in a strong platform from which to develop further growth. Consequently, I believe the outlook is for profitability.
On behalf of the Board, I would like to extend my appreciation to our valued shareholders, supportive business partners and associates, insightful management and dedicated staff for all their contribution and commitment towards the Company. I would also like to thank the Board of Directors for their invaluable counsel in steering the Group through this exciting time.
Awaiting next results - (last year released 19 Sep 2017)
good luck all
Sign In
Follow the stocks
