(RTTNews) - Bio-diesel producer Gushan Environmental Energy Ltd. (GU: News ) reported a loss for the third quarter, impacted by a decrease in the average selling price of bio-diesel and bio-diesel by-products as well as a 61% drop in sales volume of bio-diesel. The company's shares are currently trading lower by more than 4% on NYSE.

The Fuzhou City China-based company's third quarter net loss was RMB 79.06 million or RMB 0.474 per share, compared with net income of RMB 74.73 million or RMB 0.446 per share for the same period last year. Net loss per ADS was RMB 0.948, compared with net income of RMB 0.892 a year earlier. In US dollar terms, recent quarter net loss was US$11.58 million or US$0.069 per share and net loss per ADS was US$0.139.

Non-GAAP net loss was RMB 72.52 million or RMB 0.869 per ADS, compared with net income of RMB 86.13 million or RMB 1.028 per ADS last year. In US dollar terms, recent quarter non-GAAP net loss was US$10.62 million or US$0.127 per ADS.

Quarterly revenues slipped by 75% year-to-year to RMB 112.27 million or US$16.45 million from RMB 448.05 million .

Sales volume of bio-diesel slipped by 60.9% to 24,847 tons from 63,632 tons last year and average selling price of bio-diesel dropped to RMB 4,111 per ton from RMB 6,344 per ton for the year-ago period.

The company's third quarter sales volume of bio-diesel by-products declined to 4,968 tons from 5,679 tons a year-ago and average selling price of bio-diesel by-products dropped to RMB 2,031 per ton from RMB 7,815 per ton for the same period last year.
The company noted that the year-over-year drop in the sales volume of bio-diesel was mainly due to the temporary suspension of operations at certain of the company's plants in the recent third quarter. In its Fujian plant, Fujian Gushan's sales volume of bio-diesel slipped to 399 tons, down by 26,506 tons or 98.5% from 26,905 tons for the third quarter last year.

The operations in the Fujian Plant was halted mainly due to the consumption tax issue, the company noted.

Third quarter gross loss was RMB 49.02 million or US$7.18 million, compared with gross profit of RMB 163.24 million for the year earlier period as the drop in revenues were higher than the decline in cost of revenues to RMB 161.30 million or US$23.63 million from RMB 284.80 million for the year-ago period.

Gu is currently trading at US$1.31, down US$0.07 or 5.07% on a voulme of 0.49 million shares on NYSE.

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by RTT Staff Writer

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