Eastern Environment Solutions Corp., a leading provider of municipal solid waste services in China, Friday posted its financial results for the fourth quarter of 2009 and gave an update on business achievements and progress.
EESC reported revenue for the fourth quarter ended December 31, 2009, at $538,748, compared to $451,875 for the fourth quarter ended December 31, 2008; gross profit for the fourth quarter was $442,854 for the three months ended December 31, 2009, compared to $356,014 for the three months ended December 31, 2008; net income for the three months ended December 31, 2009, was $229,006, or $0.02 per diluted share, compared to net income of $209,279, or $0.02 per diluted share, for the same period last year.
Revenue for the 12 months ended December 31, 2009, was $1.9 million, compared to $1.8 million for the 12 months ended December 31, 2008.
As of December 31, 2009, the Company had cash and cash equivalents of $428,052, working capital of $4.0 million, and shareholders’ equity of $12.9 million.
The company also offered an update on its progress in the fourth quarter, highlighting its announcement in February that it has resumed operations at its landfill. The Harbin landfill has the capacity to dispose of 1,200 tons of municipal solid waste, about 34 percent of the total municipal solid waste in Harbin. Running at full capacity, the landfill returned to levels seen in 2007 before the company temporarily halted operations to make environmentally friendly modifications.
“We are extremely pleased with the resumption of operations at our Harbin landfill, which led to a 19 percent increase in revenue for the fourth quarter of 2009 compared to the same period last year,” Feng Yan, the chairman and CEO of EESC, stated in the press release. “Heading into in the first quarter of 2010, we expect sequential revenue growth compared to the fourth quarter of 2009, as we have now resumed full operations at the site. Moreover, the recent approval granted by the HMUAB to further increase waste disposal capacity by 25 percent will directly grow the company’s revenues by a similar amount.”
In March the company announced its plans to increase its disposal capacity beyond levels reached in 2009. The recent closure of a competing landfill means EESC’s landfill will handle 25 percent more waste every day, increasing daily waste disposal by 300 tons.
The company also announced that it had entered into a letter of intent with Veolia Environment, one of the world’s leading environmental services firms, in which the two companies will establish a power plant with the ability to recapture landfill gas from EESC’s Harbin landfill to generate electricity.
EESC will gain revenue from the sale of electricity, as well as from the sale of carbon credits related to the methane recapture. The partnership is expected to benefit the environment, as well as both companies.
“The business discussions with Veolia show that our business plan of creating additional profit streams through recycling and green technology is both feasible and lucrative. The company will continue these efforts, with the intention of creating significant new sources of revenue,” Feng Yang concluded.