C& G's Q2 net profit grows as more plants come onstream

By ANGELA TAN

C& G Environmental Protection Holdings Limited reported on Monday that its net profit for the second quarter ended June 30, 2011 rose to HK$34.97 million, from HK$8.58 million a year ago as more plants started operations.

Revenue grew 33.77 per cent to HK$517.74 million, driven by the higher contribution from the fully operational plants and the ongoing construction of WTE plants secured under build-operate-transfer (BOT) arrangement..

Looking ahead, the management of C& G - a player in China's renewable Waste-To-energy market - said the construction of its first sludge handling project in Jinjianghas been delayed due to the government related facilities not being ready.

As a result, the operation is expected to start in Q3 2011.

C& G said its plant in Fuqing has been completed and is expected to connect to state grid by Q32011, resulting in total treatment capacity of at least 4,500 tons per day, which would set the group's growth momentum for the next few years.

' Combined with our other existing projects on hand, we hope to emerge as a prominent player in China with over 10,000 tons per day,' C& G said.

The group currently has secured 10 BOT projects on hand, with five of them still under construction. It expects most of them to be completed by 2012.