Renewable Energy Asia returns to profit in fiscal Q1

Aug 15, 2014 - Renewable Energy Asia Group Ltd (SIN:5DW), or REA, on Thursday reported a net profit from continuing operations of CNY 1.2 million (USD 195,000/EUR 146,000) for its first fiscal quarter to end-June, versus a loss of CNY 2.5 million a year ago.

At the end of its previous fiscal year, REA sold its wind manufacturing and engineering, procurement and construction (EPC) businesses to executive chairman and controlling stockholder Xu Jian. Now it is focused on solar and wind power generation in China.

Among the factors that positively impacted the Hong Kong-based company’s bottom line in the first quarter were other gains of CNY 1.02 million. A year earlier it suffered from other losses of CNY 5.24 million. Finance costs, meanwhile, trebled to CNY 1.45 million due to a loan interest payment.

REA’s April-June gross profit climbed by 6.4% year-on-year to CNY 2.69 million, while revenue gained 3.6% to CNY 4.17 million as solar power output grew.

The company is working on an 18.8-MW solar power plant in Jiangsu, whose start-up is expected in 12 months. It also aims to put on stream a portion of a 20-MW solar park in Jiuquan, Gansu province, in the same period. It already has one operational 9-MW solar facility in Jiuquan.

(CNY 10 = USD 1.627/EUR 1.215)

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