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China New Energy to target international growth

Published: 22:06 02 May 2012 AEST

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Biofuels engineer China New Energy (LON:CNEL) has seen strong revenue gains outside its home base as countries look for substitutes to petrol.

Revenues rose by almost thirty per cent to RMB 179 million (£17.6 million) in 2011, with international business as a proportion of revenue expanding to approximately 40 per cent of total. 

Yu Weijun, CNE’s chairman, said the company will continue to target international growth this year and believes it is well-placed to benefit from growing demand for second generation biofuel.

Pre-tax profits increased by 9% to RMB25.8 million (£2.5million) from RMB23.7 million (£2.3mln).

 During the year gross profit margins were lower at 22.8 per cent, compared to 29.1 per cent in 2010, mainly due to the distorting effect of unusually high margin contracts delivered during 2010 and the cost overruns of certain projects, CNE said.

After the year end, CNE signed a deal with a subsidiary of Jilin Ethanol Industrial (JEIC)  to modify and convert an existing ethanol production facility into a commercial-scale 50,000 tonne facility capable of converting non-edible "cellulosic" plant waste into acetone, butanol and ethanol.

This will play a critical role in the development and scale-up of CNE's future biofuel and biochemical technology platforms based on the biological conversion to biofuels using sustainable, low cost feedstocks, the company said today. 

CNE also intends to develop complementary services, such as supply of active yeast and biogas recovery.

“We remain confident that the company will continue to deliver and achieve profitable growth in 2012 despite the softening economy and tight monetary conditions in China and elsewhere,” chairman Yu Weijun added. 


 

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