News Column

China New Energy Swings To Pretax Loss On Drop In Sales

May 28, 2014

Tom McIvor

LONDON (Alliance News) - China New Energy Ltd Wednesday said it swung to a big pretax loss in 2013, as a slowdown in sales from biorefineries in developed countries forced the company to change focus towards emerging markets.

The engineering and technology company for the bioenergy sector posted a pretax loss of CNY59.2 million, compared with a pretax profit of CNY26.2 million in 2012, as revenue fell 70% to CNY43.8 million, from CNY146.2 million.

It was also hit by a CNY33.8 million charge for bad debt provisions compared with a write back payment of CNY19.1 million the previous year, and booked an impairment charge to its investments of CNY30.8 million.

However, its cost of sales fell to CNY46.2 million, from CNY120.2 million previously, and it was provided a CNY24.9 million payment as a result of its debt restructuring, which partly offset the writedowns.

"2013 was a transition year for China New Energy as we restructured our finances and refocused our business development activities on international market opportunities. I am pleased to report that our order book is CNY672 million and that in addition to China, we are now actively working on projects in South East Asia, Africa and Eastern Europe," Executive Chairman Yu Weijun said in a statement.

China New Energy shares were down 11.7% to 2.05 pence on Wednesday.

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Source: Alliance News

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