China

Guanghui Energy Posts 61.81% Increase in Net Profit for 1H 2017

Summary:

  • In a statement to the Shanghai Stock Exchange, Guanghui Energy (600256.SS) has posted a 61.81% increase in net profit for the first half of 2017 to RMB 109.7 million.
  • The company also recorded a 43.66% increase in revenue to RMB 2.64 billion.
  • EPS for the first half of 2017 was RMB 0.021.

Why It Matters:

  • Net profit after deducting non-recurring gains and losses for the first half of 2017 increased 210% year-over-year to RMB 68.5 million.
  • During the first half, five new factories of the company started production and the company commenced the building of a new factory. Liquefied natural gas (LNG) sales for the first half increased 7.83% year-over-year while outbound gas sales for the first half increased 92.26%.
  • Because of a fire caused by a gas leakage at the company’s renewable energy project in Hami City, the company’s sales of LNG and methanol declined significantly during the first quarter. However, as the company managed to soon recover production, ┬ámethanol production and sales for the second quarter increased 17.95% and 18.77% respectively year-over-year.