RNS Number : 8667G
China Biodiesel International Hold
09 February 2010
China Biodiesel International Holding Co., Ltd. ("CBI" or the "Company")
Trading update for the year ended 31 December 2009
CBI, one of the leading producers of biodiesel focused on the Chinese market, today announces a trading update covering the financial year ended 31 December 2009.
In the second half of 2009, the Chinese economy continued to recover from the international financial crisis. This recovery allowed CBI to increase total biodiesel shipments from its Longyan and Xiamen facilities during the fourth quarter of 2009. Total shipment volumes for the year therefore was approximately 39,000 tonnes based on management accounts received to date (25,273 tonnes: 2008). The increased volume also reflects eight months of production at the Company's Xiamen plant.
At the interim results, the Board reported gross margin pressure due principally to lower selling prices. While selling prices did improve in the second half of 2009, they remained below historic levels achieved by the Company. The Board therefore expects to report revenue for the year ended 2009 to be broadly in line with that reported for 2008.
During 2009, the Company has continued to receive government subsidies and grants. These grants and subsidies have remained at levels consistent with those reported in 2008 and have related to development of renewable energy and energy saving initiatives. Taking these grants into account, the Board, based on management accounts reviewed to date, believe the Company will report a profit after tax of approximately RMB 11 million for the year ended 31 December 2009.
The Board has used free cash generated in the second half of the year to reduce its bank loans by RMB14 million in the second half of the 2009 financial year.
The Company confirms it will announce its results for the year ended 31 December 2009 in April 2010.
For further information:
Gloria He, CFO: +86 (592) 7191103
James Wang, Company Secretary: +86 (592) 7191109
Bobbie Hilliam or Chris Clarke
Evolution Securities: +44 (0) 20 7071 4300
This information is provided by RNS
The company news service from the London Stock Exchange
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