Chinese Biodiesel producer Gushan Environmental Energy Ltd. (GU), on Friday, reported a jump in second quarter profit as revenues rose 53% over the prior-year quarter boosted by a surge in average selling price and sales volume of biodiesel.
Second quarter net income for New York-based Gushan was RMB120.81 million or RMB1.44 per ADS, up 33.1% from RMB90.74 million or RMB1.32 per ADS in the year-ago quarter.
Excluding share-based compensation expenses, net income was RMB132.9 million or RMB1.59 per ADS, up 41.5% from RMB93.92 million or RMB1.52 per ADS in the year-earlier quarter. Second quarter results included a gain of RMB4.58 million from foreign currency exchange.
Quarterly revenues surged 52.6% to RMB399.58 million from RMB261.88 million in the prior-year quarter. Sales volume of biodiesel increased 21.8% and average selling price of biodiesel rose 33.5% from the year-earlier quarter.
In US dollars, net income for the quarter was $17.61 million or $0.21 per ADS, compared to $13.23 million or $0.19 per ADS in the prior-year quarter. On a non-GAAP basis, net income was $19.4 million or $0.21 per ADS. On average, four analysts polled by First Call/Thomson Financial expected the company to earn $0.22.
Revenues, in US dollars, surged to $58.26 million from $38.18 million in the year-ago quarter, above Street expectation of $57.15 million.
Income from operations increased 8.3% to RMB132.63 million from RMB102.53 million in the same quarter last year. Interest income for the quarter was RMB9.54 million, compared to RMB1.02 million recorded in the year-earlier quarter.
Year-to-date, net income rose 33.1% and revenues surged 52.6% from the same period last year. Sales volume of biodiesel rose 21.8% and average selling price rose 33.5% from the year-ago period.
Looking ahead, Gushan plans to increase annual biodiesel production capacity by 200,000 tons, or approximately 60 million gallons to reach 600,000 tons, or approximately 180 million gallons by the end of 2009.
GU is currently trading at $12.24, down $0.25 or 2.00%, on a volume of 0.48 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.