China Jinjiang Q2 earnings drop 11.2%

SINGAPORE - Singapore-listed China Jinjiang Environment has posted a net profit of 149 million yuan (S$30 million) for the second quarter, down 11.2 per cent from the same period a year earlier on higher finance costs and other losses.

Revenue for the three months ended June 30 was 680 million yuan, declined 5.3 per cent from the same period a year earlier, due to a decrease in revenue from construction services provided under build-operate-transfer (BOT) concession agreements.

Although gross profit rose 15.4 per cent to 337 million yuan, the group reversed from an other income gain of 37.4 million yuan for the second quarter last year to a loss of 10 million yuan this year, due primarily to a foreign exchange loss of 54 million yuan and reduced income by 12 million yuan from the treatment of sludge.

Finance costs rose 64.6 per cent to 64 million yuan for the second quarter, due to an increase in bank borrowings.

Earnings per share was 11.48 fen, down from 13.83 fen for the same period a year earlier.

Net asset value per share was 358.53 fen as at June 30, down from 387.64 fen as at Dec 31 last year.