Friday, Gushan Environmental Energy Ltd. (GU), a producer of bio-diesel and bio-diesel by-products, posted a loss in the first-quarter, hurt by declining oil prices, lower margins and higher expenses.
The Fuzhou City, China based company reported a first-quarter net loss of RMB 2.32 million or US$0.33 million, compared to net income of RMB 111.17 million or US$16.27 million in the same quarter last year.
On per ADS basis, net loss was RMB 0.014 or US$0.004, compared to net profit of RMB 0.664 or US$0.194 in the year ago quarter. Net loss per ordinary share was US$0.002, compared to US$0.097 in the year ago quarter.
Excluding share-based compensation expenses, net income was RMB 8.0 million or US$1.2 million, compared to RMB115.7 million in the year ago quarter. On a per ADS basis, non-GAAP net income was US$0.014, compared to US$0.202 in the comparable quarter last year.
On average, three analysts polled by Thomson Reuters expected the company to earn US$0.01 per ADS for the quarter. Analysts' estimates typically exclude special items.
Revenues declined 18.1% to RMB 272.74 million or US$39.92 million from RMB 332.85 million or US$48.71 million in the comparable quarter last year. Analysts expected the company to report revenue of US$45.44 million for the quarter.
The decreases in revenues on both a year-to-year basis were mainly due to a decrease in average selling prices of bio-diesel and bio-diesel by-products and a slight decrease in sales volume of the company's bio-diesel by-products.
Income from operations were RMB 1.69 million or US$0.25 million, down from RMB 122.48 million in the same quarter a year ago.
Gross margin for the quarter fell to 10.2% from 41.8% in the previous year quarter.
Research and development expenses were RMB 0.4 million or US$0.1 million, down from RMB 0.5 million in the same quarter a year ago. Selling, general and administrative expenses increased to RMB 25.61 million or US$3.75 million from RMB 16.15 million a year ago.
Total operating expenses increased to RMB 26.05 million or US$3.81 million from RMB 16.61 million in the previous year quarter.
GU is currently trading at US$2.28, down US$0.45 or 16.48% on volume of 1.50 million shares on the NYSE.
For comments and feedback: editorial@rttnews.com