China New Energy Ltd (LON:CNEL) have seen their shares lifted by over 5% following a strong second half performance.
The firm said that it had traded consistently in the second half of 2019 and gave shareholders reassurance over current tensions in China.
It is no doubt, that shareholders would have been worried about the firm’s performance as the coronavirus continued to spread across China and death tolls continue to rise.
It seems that China New Energy have managed to overcome struggles in the second half of their financial year leading to shares in green today.
Notably, the firm also gave an update today saying that it does not expect the coronavirus to hinder performance in the first few months of trading in 2020.
Notably, the ethanol production system provider said its performance in the six months to December 31 is expected to be ahead of that for the six months to June 30.
In the six months to June 30, China New Energy’s pretax profit rose to CNY27.1 million, from CNY8.1 million, on a revenue that surged to CNY163.9 million.
On a great note for shareholders, the firm said that 2019 total revenue is expected to be at its highest figure since it was first listed in 2011.
Chair Yu Weijun said: “I am proud of our team for both supporting our local community and providing business continuity during this challenging time. The macroeconomy for our industry remains unchanged and, as we enter 2020 with a strong order book, we remain confident that the business will have continued success in 2020 and beyond. This will be detailed in our annual report which we expect to release in the first quarter of 2020.”
The firm has made an ensured effort to try and stop the outbreak of coronavirus in China, as the death toll continues to rise.
The firm said: “As widely reported in the press, business activities in China are being disrupted by the Coronavirus outbreak and, whilst the Company does not currently believe this will cause a significant financial impact in 2020, the Board of CNE would like to provide shareholders with further information to understand the situation as it relates to CNE.
The Company and its employees have been playing an active role in supporting the local community with the eradication of the novel coronavirus. On 30 January 2020, the Company donated and distributed 5 tons of medical grade alcohol (75% abv ethanol produced by CNE clients) to local hospitals to assist with disinfection. This was distributed to 17 local hospitals including: First Affiliated Hospital of Sun Yat-sen, the Second People’s Hospital of Guangdong Province and the Guangdong Maternal and Child Health Hospital. Whilst the Company’s clients mostly produce ethanol for renewable-fuel and potable markets, this illustrates the continuing demand for medical grade ethanol for sanitary applications.”
Shares in China New Energy trade at 2p (+5.84%). 11/2/20 12:24BST.
