China Recycling Energy Corp
China Recycling Energy Corp. is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China
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China Recycling Energy`s profits up 56% on multi-million dollar biomass contract
China Recycling Energy Corp. (Nasdaq: CREG), an industrial waste-to-energy solution provider in China, has announced its second quarter 2010 results, posting revenue growth of 102% for the period to $22.54 million versus the same time last year, on the back of a multi-million dollar biomass renewable energy agreeement. Net income grew 56% from $3.32 million in Q2 2009 to $5.04 million for the second quarter 2010, while on a fully diluted basis, earnings per share totalled $0.10 for Q2 2010, growing 43% from last year. The news has sent the company`s shares up 6.6% today to $3.25.
China Recycling expanded its company during the quarter, acquiring biomass power generation systems (BPGS), a renewable energy resource and one of the main strategic energy alternatives to conventional energy sources. To this extent, the company has entered into a new contract with Pucheng Biomass Power Generation Company, which will allow China Recycling Corp. to have a minimum of $3.3 million per year in cash inflow for the next 15 years.
BPGS will play an important role in the company`s revenue growth as well as expand its existing waste-to-energy business model to inclue agriculture waste-to-energy, said chairman and CEO Guohua Ku.
Net sales were approximately $22.54 million compared to net sales of $11.14 million in Q2 2009, primarily attributed to the sales of the Pucheng BPGS. The company also recorded a contingent rental income of $0.74 million from actual usage of the electricity that was in addition to the minimum lease payments from previous projects.
"Our company continues to deliver superior financial and operating results on every level. I am very pleased to report tremendous growth on both our top and bottom line results. All of our projects are at or ahead of schedule, including Phase II and III of the Erdos Power Generation Project, which is expected to be completed in 2010," said Ku.
Gross profit was approximately $5.74 million for Q2 2010 compared to $2.69 million for the same period in 2009, representing a gross margin of approximately 25% and 24% for the second quarter of 2010 and 2009, respectively. The increase in gross profit was mainly from the profit of the sales-type leases of Pucheng BPGS and additional contingent rental income.
As of June 30, 2010, the company had cash and cash equivalents of $5.09 million.
The company has also reaffirmed its guidance that revenue for 2010 will be in the range of $68 million to $72 million, with net income, excluding non-cash charges, of $18 million to $20 million.
China Recycling Energy is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources.
Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is therefore viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand.
Other China Recycling Energy Corp news
- China Recycling Energy Corp full year revenues easily beat expectations
2010-01-15 - China Recycling Energy secures US$26.75 mln loan to finance Erdos power generation projects
2009-12-09 - China Recycling Energy increases full year revenues and earnings guidance
2009-11-17 - China Recycling Energy in 10-yr contracts with Shenmu County coking project
2009-11-03
