China Clean Energy Inc. is a producer of biodiesel fuel and environmentally-friendly specialty chemical products made from renewable resources in China. The company today announced preliminary financial results for the first quarter ended March 31, 2010.
The company net revenue in the first quarter was $10.7 million, up 283% from the first quarter of 2009. The increase in revenue was driven by an increase in volume and average selling prices for both specialty chemicals and biodiesel. Specialty chemical sales volume was up 227% year-over-year and average selling price was up 8% versus the same period last year. Biodiesel sales volume was up 324% year-over-year and average selling price was up 29% versus the same period last year.
Gross profit in the first quarter of 2010, driven by the growth in revenue, was $1.5 million – up 317% from the first quarter of 2009. Net income for the first quarter of 2010 was $350,172 or 1 cent a share versus a loss in the same period last year of $188,694 or a loss of 1 cent a share.
The chairman and CEO of China Clean Energy, Tai-ming Ou, commented on his company’s results. He said, “Our strong results for the first quarter reflect our focused efforts over the past two years to design, build and commission our Jiangyin plant…We expect our current growth momentum to continue as we strive to expand our order book to support the ramp-up of production to full capacity in the quarters ahead.”
The company’s new Jiangyin plant in the first quarter accounted for 55% of the biodiesel and specialty chemicals shipped. Management continues to expect ramp-up of the new plant to 50% of capacity by the end of the second quarter of 2010 and to full capacity by the end of the year 2010 to meet demand from new and existing customers. Thanks to the new plant, China Clean Energy expects to deliver revenue of approximately $11.5 million in the second quarter, an increase of about 167% over the comparable period in 2009.