Industrial waste-to-energy solution provider China Recycling Energy had a fruitful year in 2010, clearing its guidance range and increasing its revenues 70 per cent year-on-year to a record $75.61m.
The Nasdaq-listed company topped its revenues guidance range of between $68m and $72m as it improved its business model, completed the transformation of a number of projects, and formed several new key partnerships.
Its operating income grew by more than 90 per cent to $33.71m, driving its net income up 65 per cent to over $16m; while its gross profit result improved to $18.5m compared to $10.6m in 2009. Its earnings per share stood at $0.33 for the year, up from $0.21 in the previous year.
China Recycling Energy CEO Guohua Ku said, ‘The company has continued to perform well ahead of expectations, achieving record revenue for the year ended and exceeding our guided revenue range of $68m to $72m.
‘Overall, our build-operate-transfer business model, growth strategy and key partnerships have made this year the most successful year yet and we anticipate seeing this trend continue as we embark on more projects in the waste-to-energy space.’
China Recycling Energy’s recent success may well continue into 2011, based on a strong project pipeline. It recently entered into a strategic cooperation agreement with China state-owned financial institution China Cinda Asset Management, which Ku estimates will generate 300 new projects.
Its contract with PuCheng Biomass Power Generation, which brought in $22.15m in sales and $1.32m in interest income during 2010, is expected to bring in at least $3.3m in annual cash payment for the duration of the 15-year contract, according to Ku.
‘We are currently working to evaluate all of our financing options to better support our company, our clients and in turn, increase our book of business and market share in this booming space,’ said Ku.
China Recycling Energy’s Nasdaq-listed shares traded at $2.70 at midday trading on Friday on a market capitalisation of $104.74m, which despite slight gains is less than half the price its shares traded for when the company hit the public market in 2010.
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