Ruifeng Renewable reports USD-10.4m loss in H1 2014

Aug 29, 2014 - China Ruifeng Renewable Energy (HKG:0527) yesterday posted a CNY-64-million (USD 10.4m/EUR 7.9m) net loss for the first half of 2014 against a profit of CNY 50 million a year back.

The firm is active in the production of diodes and wind turbine blades and the construction of wind farms and power grids. It explained the drop in profits with the bad results of its power grid construction segment, which offset the improved performance of the wind power business.

China Ruifeng posted a loss from continuing operations of CNY 13.9 million, compared to a CNY-56-million profit a year back. The company had no profit from the discontinued diode production business, which fetched CNY 13 million in the corresponding period of 2013. The firm’s operating profit fell to CNY 80.7 million in 2014 from CNY 149.9 million in 2013.

In the meantime, China Ruifeng’s revenue in the reporting period slightly grew by 0.4% to CNY 292.2 million, with revenue from power grid construction contracts and consultation falling to CNY 48 million from CNY 129.7 million. This was compensated by a surge in wind power sales to CNY 244.2 million to CNY 161.4 million a year ago.

Looking ahead, China Ruifeng plans to focus on developing its existing assets and resources, along with expanding the capacity of its wind farms. It will also reshuffle its business structure and explore synergies between different businesses, seeking to improve its financial performance.

(CNY 1 = USD 0.163/EUR 0.124)

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