China New Energy Ltd (LON:CNEL), a technology provider to ethanol manufacturers, last week posted a 29.3% year-on-year increase in net profit for 2019 helped by favourable policies in China.
Net profit grew to CNY 59.2 million (USD 8.3m/EUR 7.6m) as revenue jumped 59.4% to CNY 398.6 million.
The company ended the year with an order book and contract backlog worth CNY 584.9 million, up 77.5% compared to a year earlier. Chairman Yu Weijun said the strong order book reflects “the 13th Five Year Plan for Renewable Energy Development that clearly demonstrates the intention of the PRC government to develop the ethanol fuel industry.” In 2017, China announced an ambition to expand the use of E10 from 12 trial provinces to nationwide by 2020.
The company added that the COVID-19 outbreak will have a temporary and short-term effect on its operations. It is optimistic about 2020 and its long-term future and continues to pursue a strategy of re-listing on the mainboard of the Hong Kong Stock Exchange.
Article by Renewables Now: China New Energy optimistic on ethanol policies
Image by China New Energy Ltd.