China Clean Energy Inc. reports fiscal year 2006 results, after completing merger with BVI-based private corporation

China Clean Energy Inc., a leading producer of biodiesel fuel and environmentally friendly chemical products, has reported financial results for the fiscal year ended on December 31, 2006.

Some months ago, in order to participate in the rapid growth of the biodiesel industry in China, China Clean Energy Inc. (formerly Hurley Exploration Inc.) completed a reverse merger with China Clean Energy Resources, Ltd., which is a private corporation registered in the British Virgin Islands. After that, China Clean Energy was re-organized as a publicly-traded company, which also received access to the US capital markets, broadened its investor base, and supported its business growth.

The merger transaction was finished on October 24, 2006; as a result of it BVI-based China Clean Energy Resources, Ltd. and its operating subsidiary in China, Fujian Zhongde Technology Co., Ltd.,  became fully owned by China Clean Energy Inc.

The financial year 2006 results of China Clean Energy Inc. were influenced by the above merger. Fiscal year highlights are:
the reported revenues increased 34% during the year, and reached $13.5 million; gross profit increased 37% year over year, to $3.8 million; company’s operating income increased to $2.2 million – a 5% increase during the year; company’s net income was $1.3 million, or $0.07 per share – that is down 3.1% over 2005, as a result of expenses associated with the Company’s reverse merger transaction mentioned above. Revenues for the period of the year 2006, increased 34% if compared to the same period in 2005, and made $13.5 million.

The company also increased spending on auditing, legal services, investor relations and financial advisory services during this financial year.  Selling, general and administrative expenses were $941,225 in 2006, or 7% of revenue, compared to $662,812 in 2005. At December 31, 2006, the Company had $2.2 million in total cash and short-term investments, cash-flow from operations for the 12 months made $1.4 million, up from $1.3 million in 2005.

Leave a Reply

You must be logged in to post a comment.