11th Feb 2020 11:14
(Alliance News) - China New Energy Ltd said Tuesday it traded well in the second half of 2019 and does not believe the coronavirus outbreak in China will have a "significant" financial impact on its 2020 performance.
The ethanol production system service provider said its performance in the six months to December 31 is expected to be ahead of that for the six months to June 30.
In the six months to June 30, China New Energy's pretax profit jumped to CNY27.1 million, about GBP3.1 million, from CNY8.1 million, on a revenue that more than doubled to CNY163.9 million.
China New Energy said its 2019 total revenue is expected to be its highest level since listing in London in 2011.
The company also said it is planning to resubmit its application to list on the Hong Kong Stock Exchange with its 2019 results.
In October, the firm secured consent from its shareholders to pursue a Hong Kong listing and the cancellation of the trading of its shares on London's AIM market.
However, the permission expired on January 22 and the company said it will call an extraordinary general meeting to hold another vote.
Chair Yu Weijun said: "I am proud of our team for both supporting our local community and providing business continuity during this challenging time. The macroeconomy for our industry remains unchanged and, as we enter 2020 with a strong order book, we remain confident that the business will have continued success in 2020 and beyond. This will be detailed in our annual report which we expect to release in the first quarter of 2020."
Turning to the coronavirus outbreak, China New Energy noted it typically shuts its office for two weeks over the Lunar New Year, which this year ran from January 23 to February 6. The company said, however, its local authority, in Guangzhou, has requested companies keep offices closed until February 15.
China New Energy said its employees are working from home during this period, so expects "minimal" impact to its office work, which includes its resubmission to the HKEx.
"The closure of the factory for an additional five working days is expected to cause only minor manufacturing delays which, with overtime, the company expects to correct quickly during production in the first quarter of 2020," China New Energy added.
The company also noted it has donated 5 tonnes of medical grade alcohol to local hospitals as they fight the deadly virus.
"The company will only provide further updates on the coronavirus outbreak if it is expected to materially affect the performance of its business," China New Energy said.
Shares in China New Energy were 3.6% higher in London on Tuesday at 2.59 pence each.
By Paul McGowan; [email protected]
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