China Biodiesel Intl buoyed by economic recovery in H2
In a trading update covering the year ended 31 December 2009, China Biodiesel International (AIM: CBI) said it reaped the benefits of a continued recovery in the Chinese economy during the second half of 2009. CBI increased total shipment volumes by approximately 65% to 39,000 tonnes compared to 25,273 in the previous year. The improved output was supplemented by the addition of the company's new facility in Xiamen, which was fully operational for 8 months of the year.
The company confirmed it will announce full-year results in April.
CBI previously reported gross margin pressure in the 2009 interim results, due principally to lower selling prices. Although prices improved in the second half, they remained below historic levels and therefore the board expects to report FY revenue to be broadly in line with the previous year.
The company expects to report a net profit of approximately RMB11 million for the year. CBI's bank loans were reduced by RMB14 million during the second half, utilising the generated free cash.
During 2009, CBI continued to receive government subsidies and grants, which remained at consistent levels as reported for 2008. These grants and subsidies relate primarily to development of renewable energy and energy saving initiatives, rather than the wider economic stimulus undertaken by the Chinese government in 2009.
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