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NEW YORK, Aug. 15 /PRNewswire-FirstCall/ -- Gushan Environmental Energy
Limited ("Gushan" or the "Company"; NYSE: GU), China's largest producer of
biodiesel as measured by annual production capacity, today announced its
unaudited financial results for the second quarter ended June 30, 2008.
Highlights for Second Quarter 2008
-- Total revenues increased by 52.6% year-to-year and 20.0% quarter-on-
quarter to RMB399.6 million (US$58.3 million).
-- Gross profit increased by 43.8% year-to-year and 18.5% quarter-on-
quarter to RMB165.0 million (US$24.1 million).
-- Income from operations increased by 29.4% year-to-year and 8.3%
quarter-on-quarter to RMB132.6 million (US$19.3 million).
-- Net income increased by 33.1% year-to-year and 8.7% quarter-on-quarter
to RMB120.8 million (US$17.6 million).
-- Net income excluding share-based compensation expenses (non-GAAP)
increased by 41.5% year-to-year and 14.9% quarter-on-quarter to RMB132.9
million (US$19.4 million). (Note 4)
-- Sales volume of biodiesel increased by 21.8% year-to-year and 15.8%
quarter-on-quarter to 59,921 tons.
-- Average selling price of biodiesel increased by 33.5% year-to-year and
7.6% quarter-on-quarter to RMB5,933 (US$865.0) per ton.
For the Three months ended
(in US$ thousands, June 30, March 31, June 30,
except per share 2007 2008 2008
data) (Note 3) (Note 3) (Note 3)
Revenues 38,179 48,527 58,255
Gross profit 16,716 20,277 24,038
Income from
operations 14,947 17,856 19,336
Net income 13,230 16,208 17,613
Net income per
ordinary share
- Diluted 0.097 0.097 0.105
Net income per
ADS - Diluted 0.194 0.194 0.210
Non-GAAP net
income per ADS
- Diluted
(Note 4) 0.200 0.202 0.231
Gross profit
margin (Note 1) 43.8 % 41.8 % 41.3 %
Net income
margin (Note 2) 34.7 % 33.4 % 30.2 %
Non-GAAP net
income margin
(Note 4) 35.9 % 34.8 % 33.3 %
Sales volume of
biodiesel tons 49,182 51,761 59,921
Average selling
price of
biodiesel RMB/ton 4,443 5,512 5,933
Sales volume of
biodiesel
by-products tons 5,900 6,074 6,100
Average selling
price of biodiesel
by-products RMB/ton 7,348 7,824 7,224
Note 1: Gross profit margin is defined as gross profit divided by revenues
Note 2: Net income margin is defined as net income divided by revenues
Note 3: Translation from RMB into US$ at RMB6.8591 to US$1.00, see
"Currency Convenience Translation" below
Note 4: All non-GAAP ("Generally Accepted Accounting Principles") measures
exclude share-based compensation expenses. For further details on non-GAAP
measures, please refer to the reconciliation table and a detailed discussion
of management's use of non-GAAP information set forth elsewhere in this press
release.
"Gushan continued to deliver growth during the second quarter of 2008 as
production ramped up at our Beijing plant and despite a two-week shutdown of
Gushan's Sichuan plant following the tragic May 12 earthquake," said Jianqiu
Yu, Chairman and Principal Executive Officer of Gushan. "Our growth momentum
is set to continue with the commencement of production at our new Shanghai
plant at the end of June, bringing Gushan's total annual biodiesel production
capacity to 290,000 tons. With plans to raise the company's annual biodiesel
production capacity to 400,000 tons by the end of 2008 and 600,000 tons by the
end of 2009, Gushan is well positioned to help meet continued and anticipated
increased demand for diesel in China."
Financial Results for the Second Quarter 2008
Revenues
The Company's revenues amounted to RMB399.6 million (US$58.3 million) for
the second quarter of 2008, representing an increase of 52.6% from RMB261.9
million for the second quarter of 2007 and an increase of 20.0% from RMB332.9
million for the first quarter of 2008. The growth in revenues was due to an
increase in sales volume and to an increase in the average selling price of
the Company's biodiesel.
The sales volume of biodiesel amounted to 59,921 tons for the second
quarter of 2008, representing an increase of 21.8% from 49,182 tons for the
second quarter of 2007 and an increase of 15.8% from 51,761 tons for the first
quarter of 2008.
The average selling price of biodiesel was RMB5,933 (US$865.0) per ton for
the second quarter of 2008, representing an increase of 33.5% from RMB4,443
per ton for the second quarter of 2007 and an increase of 7.6% from RMB5,512
per ton for the first quarter of 2008.
The sales volume of biodiesel by-products amounted to 6,100 tons for the
second quarter of 2008, representing an increase of 3.4% from 5,900 tons for
the second quarter of 2007, and a consistent level compared to 6,074 tons for
the first quarter of 2008.
The average selling price of biodiesel by-products was RMB7,224
(US$1,053.2) per ton for the second quarter of 2008, representing a decrease
of 1.7% from RMB7,348 per ton for the second quarter of 2007 and a decrease of
7.7% from RMB7,824 per ton for the first quarter of 2008.
The year-to-year increase in the sales volume of biodiesel was mainly due
to the commencement of production at the Company's Beijing plant, which added
an additional 50,000 tons to the Company's annual biodiesel production
capacity since January 2008, and an increase of 20,000 tons in the annual
production capacity of Gushan's Sichuan plant since the fourth quarter of
2007. The sequential quarterly increase in sales volume was principally
attributed to the fact that our Beijing plant only started operating full
capacity in March 2008. However, due to the earthquake in Sichuan province on
May 12, 2008, Gushan's Sichuan plant was required by the local government to
suspend its operations for two weeks. As a result of the suspension, the sales
volume of the Sichuan plant decreased by 13.9% on a sequential quarterly basis
but increased by 17.1% on a year-to-year basis due to the enhanced capacity.
The increase in the average selling price of biodiesel was attributed to
an increase in the retail selling price of diesel, resulting from increases in
the guidance price of diesel set by the PRC government in November 2007 and
June 2008 coupled with a continuing shortage of diesel supply in China and the
Company's commencement of sales in 2008 of some biodiesel products to chemical
companies at higher selling prices than those prevailing in the diesel market.
The overall increase in sales volume of biodiesel by-products on a year-
to-year basis was mainly due to increased sales volumes of glycerine, plant
asphalt and refined glycerine. Those increases were partly offset by a
decrease in sales volume of erucic acid and erucic amide, both of which are
produced only at Gushan's Sichuan plant which suspended operations for two
weeks due to the earthquake in the second quarter of 2008.
The average selling prices of all biodiesel by-products increased
individually on both a year-to-year and sequential basis. However, the average
selling price of by-products as a group recorded a decrease on both a year-to-
year and sequential basis. This decrease was mainly due to the decrease in
sales volume of erucic acid and erucic amide, both of which command
significantly higher selling prices than other by-products and are produced
only in the Sichuan plant, as a result of the suspension of production at the
Sichuan plant for two weeks due to the earthquake.
Cost of Revenues
Cost of revenues for the second quarter of 2008 totaled RMB234.7 million
(US$34.2 million), representing an increase of 59.4% from RMB147.2 million for
the second quarter of 2007 and an increase of 21.1% from RMB193.8 million for
the first quarter of 2008. This increase was primarily attributable to
increases in the Company's production volume and in overall average unit costs
for vegetable oil offal and used cooking oil, which increased from RMB1,821
per ton in the second quarter of 2007 and from RMB2,287 in the first quarter
of 2008 to RMB2,390 (US$348.4) per ton in the second quarter of 2008 as a
result of the increase in our suppliers' own running costs which are primarily
affected by general cost inflation, particularly in labor and transportation,
in China.
Gross Profit
The Company's gross profit for the second quarter of 2008 totaled RMB164.9
million (US$24.0 million), representing an increase of 43.8% from RMB114.7
million for the second quarter of 2007 and an increase of 18.5% from RMB139.1
million for the first quarter of 2008. The Company's gross profit margin
decreased slightly to 41.3% for the second quarter of 2008 from 43.8% for the
second quarter of 2007 and 41.8% for the first quarter of 2008. The decrease
in gross profit margin was principally attributable to a decline in sales of
the higher margin erucic acid and erucic amide as a proportion of the overall
sales as the Company added biodiesel production capacity in Beijing, where
these biodiesel by-products are not produced, and also to reduced production
of erucic acid and erucic amide in the second quarter of 2008 as a result of
the suspension of production at the Sichuan plant due to the earthquake.
Research and Development Expenses
Research and development expenses totaled RMB0.4 million (US$0.1 million)
in the second quarter of 2008, representing a stable level compared to RMB0.6
million for the second quarter of 2007 and RMB0.5 million for the first
quarter of 2008.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the second quarter of
2008 totaled RMB31.9 million (US$4.6 million), representing an increase from
RMB11.5 million for the second quarter of 2007 and an increase from RMB16.2
million for the first quarter of 2008. The increase was mainly due to
increases in share-based compensation, professional fees and staff costs.
Share-based compensation for the second quarter of 2008 amounted to RMB11.5
million (US$1.7 million), representing an increase from RMB3.2 million for the
second quarter of 2007 and an increase from RMB4.5 million for the first
quarter of 2008, as a result of the share options granted in December 2007 and
March 2008. Professional fees totaled RMB7.0 million (US$1.0 million),
representing an increase from RMB2.5 million in the second quarter of 2007 and
an increase from RMB1.7 million in the first quarter of 2008, largely as a
result of the fees incurred for the proposed follow-on ADS offering which was
subsequently terminated. Staff costs amounted to RMB4.7 million, representing
an increase from RMB2.7 million for the second of 2007 and an increase from
RMB3.9 million for the first quarter of 2008, mainly as a result of the
commencement of full operations at the Beijing and Shanghai plants, and the
addition of offices in Chongqing and Hunan.
Other Income (Expense)
Interest income for the quarter amounted to RMB9.5 million (US$1.4
million), representing an increase from RMB1.0 million for the second quarter
of 2007 and a decrease from RMB11.0 million from the first quarter of 2008.
The increase on a year-to-year basis was mainly due to interest earned on the
net proceeds of our initial public offer in December 2007 whereas the decrease
on a sequential basis was due to a slightly lower weighted average interest
rate of our cash balance as a result of the changes in the portfolio of
currencies. The Company incurred a foreign exchange gain of RMB4.6 million
(US$0.7 million) for the second quarter of 2008, compared to a foreign
exchange loss of RMB0.4 million for the second quarter of 2007 and a foreign
exchange loss of RMB3.3 million for the first quarter of 2008. The exchange
gain mainly resulted from the appreciation of the Company's foreign currency
holdings against US$ in the second quarter of 2008. In the second quarter of
2008, the Company donated RMB2.0 million to the municipal government of
Mianyang for relief efforts following the May 12 earthquake, as a result of
which we incurred other expense (net) of RMB1.6 million (US$0.2 million).
Income Tax Expense
Income tax expense for the first and second quarter of 2008 comprised
Enterprise Income Tax ("EIT") and provision for dividend withholding tax,
whereas income tax expense for the second quarter of 2007 was purely EIT.
EIT for the second quarter of 2008 amounted to RMB16.8 million,
representing an increase of 36.6% from RMB12.3 million for the second quarter
of 2007 and an increase of 19.1% from RMB14.1 million for the first quarter of
2008. The increase in EIT on a year-to-year basis was mainly due to the
increases in earnings before income tax contributed by Fujian Gushan, Sichuan
Gushan and Handan Gushan and the increase in the applicable EIT rate for
Fujian Gushan from 0% in 2007 to 9% in 2008 as a result of the expiration of
its tax holidays. The increase was partially offset by a decrease in the tax
rate for Sichuan Gushan from 18% to 12.5% and for Handan Gushan from 15% to
12.5% due to the transitional arrangement under the new EIT Law which came
into effect from January 1, 2008. The increase in EIT on a sequential basis
was mainly due to the increase in earnings before income tax contributed by
Fuijian Gushan, Sichuan Gushan and Handan Gushan
In addition, under the new EIT Law, from January 1, 2008, non-resident
enterprises are subject to withholding tax at the rate of 10% (unless reduced
by a treaty) on various types of passive income such as dividends derived from
sources within the PRC. Under the Arrangement between the Mainland of China
and Hong Kong Special Administration Region for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion ("China-HK Treaty"), Hong Kong
tax residents are entitled to a reduced withholding tax rate of 5%. As all of
the Company's foreign-invested enterprises are directly held by subsidiaries
with Hong Kong tax resident status, a rate of 5% is applicable to the
calculation of this withholding tax. The Company has made provisions of RMB7.6
million (US$1.1 million) for the second quarter of 2008 and RMB5.4 million
(USD0.8 million) for the first quarter of 2008 in respect of withholding tax.
Net Income
The Company's net income amounted to RMB120.8 million (US$17.6 million)
for the second quarter of 2008, representing an increase of 33.1% from RMB90.7
million for the second quarter of 2007 and an increase of 8.7% from RMB111.2
million for the first quarter of 2008.
Net income excluding share-based compensation expenses (non-GAAP) amounted
to RMB132.9 million (US$19.4 million) for the second quarter of 2008,
representing an increase of 41.5% from RMB93.9 million for the second quarter
of 2007 and an increase of 14.9% from RMB115.7 million for the first quarter
of 2008.
Financial Condition
As of June 30, 2008, the Company had working capital of RMB1,091.1 million
(US$159.1 million), reflecting total current assets of RMB1,243.1 million
(US$181.2 million) and total current liabilities of RMB152.0 million (US$22.2
million). Of the total current assets, the Company had RMB1,152.6 million
(US$168.0 million) in cash balance. During the second quarter of 2008, the
Company paid a dividend of RMB68.4 million (US$10.0 million) for the 2007
fiscal year.
Recent Events
Sichuan province experienced a severe earthquake on May 12, 2008, of a
reported magnitude of 8.0 on the Richter scale. Sichuan Gushan, which is
located approximately 156 kilometers from the epicenter of the earthquake, was
not damaged and no employees were injured. However, the local government
required Sichuan Gushan to suspend production for two weeks as a safety
precaution. Sichuan Gushan resumed production on May 26, 2008.
On June 28, 2008, the Company's Shanghai plant commenced production,
adding 50,000 (or approximately 15 million gallons) to the Company's annual
biodiesel production capacity.
On June 23, 2008, the Company filed a registration statement to the
Securities and Exchange Commission ("SEC") for a proposed follow-on public
offering of ADSs in the United States. On July 8, 2008, the Company decided
to terminate the proposed follow-on public offering due to stock market
volatility and the then trading price for Gushan's ADSs.
The Company has temporarily suspended operations at its Beijing plant from
August 1, 2008 to September 20, 2008 due to recent heightened enforcement of
traffic control measures adopted by the Beijing municipal government in
preparation for the hosting of the Olympic games. The Company believes that
the government's recent strict enforcement of measures controlling the
movement of vehicles and goods in and out of the Beijing area have rendered
biodiesel production at our Beijing plant impractical for the time being. The
Company expects to resume biodiesel production at our Beijing plant after
September 20. As a result of this suspension, based on current circumstances
and barring any unforeseen events, the Company expects that the total 2008
biodiesel production volume produced by its Beijing plant will be reduced by
approximately 10,000 tons, or approximately 3 million gallons, which it
anticipates will reduce its overall production levels for the year.
Outlook for 2008
Gushan currently operates five production facilities, located in Sichuan,
Heibei, Fujian, Beijing and Shanghai in China, with an annual total biodiesel
capacity of 290,000 tons, or approximately 87 million gallons. Construction
has commenced at our new plants in Chongqing and Hunan (each with annual total
biodiesel capacity of 30,000 tons, or approximately 9 million gallons) and
both plants are expected to begin production during the fourth quarter of
2008. In addition, the Company expects to increase the annual biodiesel
production capacity at its Beijing plant from 50,000 tons (or approximately 15
million gallons) to 100,000 tons (or approximately 30 million gallons) in the
fourth quarter of 2008. As a result, the Company expects that its annual total
biodiesel capacity will reach 400,000 tons (or approximately 120 million
gallons) by the end of 2008. However, as a result of the temporary suspensions
of production at the Beijing and Sichuan plants and the fact that the
additional biodiesel production capacity at Beijing, Chongqing and Hunan are
expected to commence production at the end of the fourth quarter this year,
and based on current circumstances and barring any unforeseen events, Gushan
estimates that its total biodiesel production volume in 2008 will be
approximately 250,000 tons, or approximately 75 million gallons, instead of
270,000 tons or approximately 81 million gallons as previously estimated. For
the year 2009, Gushan plans to increase its annual biodiesel production
capacity by 200,000 tons, or approximately 60 million to reach 600,000 tons,
or approximately 180 million gallons by the end of 2009.
Interim Financial Statements
The unaudited condensed consolidated income statements and balance sheets
accompanying this press release have been prepared by management using
generally accepted accounting principles in the United States of America (U.S.
GAAP). These interim financial statements are not intended to fully comply
with U.S. GAAP because they do not present cash flow information and all of
the disclosures required by U.S. GAAP. The December 31, 2007 balance sheet was
derived from audited consolidated financial statements of the Company. Certain
amounts in the December 31, 2007 balance sheet have been reclassified to
conform with current period presentation.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars in this earnings release,
made solely for the purpose of reader's convenience, is based on the noon
buying rate in New York City for cable transfers of Renminbi as certified for
customs purpose by the Federal Reserve Bank of New York as of June 30, 2008,
which was RMB 6.8591 to US$1.00. No representation is intended to imply that
the Renminbi amounts could have been, or could be, converted, realized or
settled into U.S. dollars at such rate, or at any other rate. The percentages
stated in this earnings release are calculated based on Renminbi.
Conference Call
Gushan's management will hold its first quarter 2008 earnings conference
call at 8:30am U.S. Eastern Time (8:30pm Beijing / Hong Kong Time) on August
15, 2008.
Dial-in details for the earnings conference call are as follows:
US Toll Free: 1 866.578.5801
US Toll for International Callers: 1 617.213.8058
Hong Kong Toll: 852.3002.1672
Hong Kong Toll Free: 800.96.3844
China Toll Free: 10 800 130 0399
UK Toll Free: 00 800 280 02002
UK Toll for International Callers: 44 207 365 8426
Passcode for all regions: 98458091
A replay of the call will be available on the same day at 11:00 a.m. U.S.
Eastern Time (or 12:00 a.m. Hong Kong Time) until August 22, 2008 and may be
accessed by phone at the following numbers.
US Toll Free: 1 888 286 8010
US Toll for International Callers: 1 617 801 6888
Passcode for all regions: 78217846
In addition, a live and archived webcast of this conference call will be
available on the Investor Relations section of Gushan's website at
www.chinagushan.com .
About Gushan Environmental Energy Limited
Gushan Environmental Energy is China's largest producer of biodiesel, as
measured by annual production capacity. The company produces biodiesel, a
renewable, clean-burning and biodegradable fuel, primarily from vegetable oil
offal and used cooking oil, and by-products from biodiesel production,
including glycerine, plant asphalt, erucic acid and erucic amide. Gushan sells
biodiesel directly to users, such as marine vessel operators, as well as to
petroleum wholesalers and individual retail gas stations. The company
currently operates five production facilities in the Sichuan, Hebei, Fujian
provinces and Beijing and Shanghai with a combined annual production capacity
of 290,000 tons. The company targets to increase its annual production
capacity to 400,000 tons by the end of 2008 with the expansion or addition of
new production facilities in Beijing, Shanghai, Hunan and Chongqing.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by words such as
"will," "may," "expect," "anticipate," "aim," "target," "intend," "plan,"
"believe," "estimate," "potential," "continue," and other similar statements.
Statements other than statements of historical facts in this announcement are
forward-looking statements, including but not limited to, our expectations
regarding the expansion of our production capacities, our future business
development, and our beliefs regarding our production output. These forward-
looking statements involve known and unknown risks and uncertainties and are
based on current expectations, assumptions, estimates and projections about
the Company and the industry. Important risks and uncertainties that could
cause the Company's actual results to be materially different from
expectations include but are not limited to the effect of any applicable
government policy, law or regulation, of natural disasters, and of
intensifying competition in the biodiesel and alternative energy industries,
the availability of suitable raw materials to the Company, and the risks set
forth in the Company's filings with the U.S. Securities and Exchange
Commission, including on Form F-1, as amended. The Company undertakes no
obligation to update forward-looking statements, except as may be required by
law. Although the Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you that its
expectations will turn out to be correct, and investors are cautioned that
actual results may differ materially from the anticipated results.
About Non-GAAP Financial Measures
To supplement Gushan's consolidated financial results presented in
accordance with U.S. GAAP, Gushan uses the following measures defined as non-
GAAP financial measures by the SEC: net income excluding share-based
compensation and basic and diluted net income per ADS excluding share-based
compensation . The presentation of these non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. For more
information on these non-GAAP financial measures, please see the table
captioned "Reconciliations of GAAP measures to non-GAAP measures" set forth at
the end of this release.
Gushan believes that these non-GAAP financial measures provide meaningful
supplemental information regarding its performance and liquidity by excluding
share-based compensation that may not be indicative of its operating
performance from a cash perspective. Gushan believes that both management and
investors benefit from these non-GAAP financial measures in assessing its
performance and when planning and forecasting future periods. Gushan computes
its non-GAAP financial measures using the same consistent method from quarter
to quarter. Gushan believes these non-GAAP financial measures are useful to
investors in allowing for greater transparency with respect to supplemental
information used by management in its financial and operational decision
making. A limitation of using non-GAAP net income excluding share-based
compensation , and basic and diluted earnings per share and per ADS excluding
share-based compensation is that these non-GAAP measures exclude share-based
compensation that has been and will continue to be for the foreseeable future
a significant recurring expense in our business. Management compensates for
these limitations by providing specific information regarding the GAAP amounts
excluded from each non-GAAP measure. The accompanying tables have more details
on the reconciliations between GAAP financial measures to non-GAAP financial
measures.
- FINANCIAL TABLES FOLLOW -
GUSHAN ENVIRONMENTAL ENERGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts expressed in thousands, except share data and number of shares)
For the Three Months Ended
June 30, 2007 March 31,2008 June 30, 2008
RMB RMB RMB USD
Revenue 261,877 332,854 399,579 58,255
Cost of revenues 147,219 193,770 234,695 34,217
Gross profit 114,658 139,084 164,884 24,038
Operating expenses
Research and development (599) (454) (365) (53)
Selling, general and
administrative (11,534) (16,154) (31,891) (4,649)
Total operating expenses (12,133) (16,608) (32,256) (4,702)
Income from operations 102,525 122,476 132,628 19,336
Other income (expense):
Interest income 1,019 10,952 9,538 1,391
Foreign currency exchange
gains (losses) (449) (3,300) 4,577 667
Other income (expenses),
net (25) 500 (1,574) (229)
Earnings before income tax 103,070 130,628 145,169 21,165
Income tax expense (12,329) (19,458) (24,361) (3,552)
Net income 90,741 111,170 120,808 17,613
Net income per ordinary
share
- Basic 0.733 0.666 0.724 0.106
- Diluted 0.662 0.664 0.721 0.105
Net income per ADS -
- Basic 1.466 1.332 1.448 0.211
- Diluted 1.324 1.328 1.442 0.21
Weighted average ordinary
shares outstanding
- Basic 123,820,000 166,831,943 166,831,943 166,831,943
- Diluted 137,035,527 167,440,885 167,653,873 167,653,873
Weighted average ADS
outstanding
- Basic 61,910,000 83,415,972 83,415,972 83,415,972
- Diluted 68,517,764 83,720,443 83,826,936 83,826,936
Share-based compensation
expenses included in:
Cost of revenues - 62 547 80
Research and development
expenses - 3 44 6
Selling, general and
administrative expenses 3,179 4,482 11,540 1,682
GUSHAN ENVIRONMENTAL ENERGY LIMITED
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts expressed in thousands)
December 31, 2007 June 30, 2008
RMB RMB USD
ASSETS
Current assets:
Cash 1,380,735 1,152,554 168,033
Accounts receivable 31,110 27,380 3,992
Inventories 31,580 51,163 7,459
Prepaid expenses and other current
assets 11,851 10,132 1,477
Deferred income tax assets - 1,848 269
Total current assets 1,455,276 1,243,077 181,230
Property, plant and equipment, net 807,371 1,189,341 173,396
Land use rights 42,812 58,463 8,524
Other assets 4,335 3,780 551
Total assets 2,309,794 2,494,661 363,701
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 776 3,323 484
Accounts payable for property, plant
and equipment and land use rights 52,857 91,784 13,381
Accrued expenses and other payables 55,708 40,298 5,876
Income taxes payable 19,152 16,603 2,421
Total current liabilities 128,493 152,008 22,162
Deferred income tax liabilities - 12,871 1,876
Deferred income - 14,635 2,134
Total liabilities 128,493 179,514 26,172
Shareholders' equity:
Ordinary shares 1 1 -
Additional paid-in capital 1,436,862 1,453,540 211,914
Accumulated other comprehensive loss (4,412) (50,821) (7,409)
Retained earnings 748,850 912,427 133,024
Total shareholders' equity 2,181,301 2,315,147 337,529
Total liabilities and shareholders'
equity 2,309,794 2,494,661 363,701
GUSHAN ENVIRONMENTAL ENERGY LIMITED
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Amounts expressed in thousands, except share data)
For the Three Months Ended
June 30, March 31,
2007 2008 June 30, 2008
RMB RMB RMB USD
GAAP net income 90,741 111,170 120,808 17,613
Share-based compensation 3,179 4,547 12,131 1,768
Non-GAAP net income 93,920 115,717 132,939 19,381
GAAP net income per ADS - Basic 1.466 1.332 1.448 0.211
Share-based compensation per ADS -
Basic 0.051 0.055 0.146 0.021
Non-GAAP net income per ADS - Basic 1.517 1.387 1.594 0.232
GAAP net income per ADS - Diluted 1.324 1.328 1.442 0.21
Share-based compensation per ADS -
Diluted 0.047 0.054 0.144 0.021
Non-GAAP net income per ADS - Diluted 1.371 1.382 1.586 0.231
SOURCE Gushan Environmental Energy Limited
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