Chinese Gushan Environmental net loss shrinks in Q2 2011
Aug 24, 2011 - Chinese biodiesel producer Gushan Environmental Energy Ltd (NYSE:GU) yesterday said its net loss narrowed to CNY 26.4 million (USD 4.1m/EUR 2.9m) in the second quarter of 2011 from a loss of CNY 108.5 million a year ago as revenue grew.
Operating loss fell to CNY 23.2 million from CNY 112.7 million.
Revenue surged to CNY 327.1 million from CNY 60.2 million a year ago, driven by CNY 304.8 million in sales from the recycled copper products business of its unit Mianyang Jin Xin Copper Co Ltd, acquired last November. Revenue from biodiesel sales dropped 63% on the year to CNY 22.3 million due to low sales volume.
Biodiesel sales volume decreased 73.8% year-on-year to 3,361 tonnes in the second quarter of 2011, and average selling price (ASP) rose 38.7% to CNY 6,156 per tonne. Biodiesel by-products sales volume fell 65.5% on the year to 580 tonnes. Sales volume of recycled copper products rose 34% quarter-on-quarter in the second three months of 2011 to 4,958 tonnes.
Gushan Environmental said the decline in biodiesel sales volume was driven by the closure of its Sichuan plant. The company closed the plant in August 2010 to relocate the production lines to a new plant which has been in a trial run since June 2011.