China Recycling Energy's profit falls to USD 1.2m in Q2 2012

Aug 16, 2012 - Waste-to-energy solutions provider China Recycling Energy Corp (NASDAQ:CREG) yesterday said its second-quarter net profit had slipped to USD 1.2 million (EUR 978,000) from USD 3.7 million a year ago.

"This decrease in net income was mainly due to the decreased total sales, interest income, and non-operating income on sales type leases compared with the comparable period of 2011", the company said.

Interest income on sales-type leases came in at USD 4.7 million from 11 plants, compared to USD 5.5 million from 12 a year earlier.

Gross margin improved to 93% from 81%.

Revenue rose 10% to USD 403,000, coming from contingent rental income. The company did not generate system sales for the period.

Six-month operating cash inflow was USD 28.8 million as of June 30, compared to an outflow of USD 10.9 million a year earlier.

China Recycling has two projects with combined capacity of 48 MW under construction -- Phase III of Erdos power project and the Shannxi Datong Coal Group power project. The Datong project is to be finished by the end of the year. It also has several projects under development and new projects in the pipeline, said its chairman and CEO Guohua Ku.

(USD 1 = EUR 0.815)

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