China New Energy Ltd Trading Update (7220K)
18 December 2018 - 3:39AM
UK Regulatory
TIDMCNEL
RNS Number : 7220K
China New Energy Ltd
17 December 2018
China New Energy Limited
(the "Company" or "CNE")
Trading Update
The Board of CNE (AIM:CNEL), the AIM quoted engineering and
technology solutions provider to the bioenergy sector, would like
to take this opportunity to provide a trading update for the nine
month period from 1 January 2018 to 30 September 2018.
The Company has continued to perform well during the period, and
the directors expect revenues to continue to grow in 2018 as a
result of the recent policy changes in China which have stimulated
domestic demand for ethanol production technology and, in turn, the
technology and services provided by CNE.
The Board believes that the current share price does not reflect
the underlying value of the Company, and such undervaluation is
limiting the Company's ability to raise funds in the equity market
to expand the business in this growing market sector. To address
this, the Company is currently considering and assessing all the
options available for fund raising in other stock exchanges, where
companies in the same sector have generally been trading on more
favourable PE multiples.
Consequently, the Board has been evaluating whether a primary
listing on other stock exchanges will achieve a greater valuation
of the Company that is consistent with its peer group, as well as
provide access to capital to develop its business. Before making
any decision, the Company will carefully consider the impact on all
shareholders and their ability to freely trade their shares in a
public market. The Company is evaluating options to best create
shareholders value and expects to make a decision in Q1 2019. The
Company shall update the market immediately following the
decision.
Mr Yu, Chairman, commented "I am very pleased with the continued
performance of the Company and that 2018 will be our third
consecutive profitable year. The outlook for 2019 is for continued
growth. A key goal for 2019 is to actively address our share price,
so the Company can use its equity to take advantage of the
opportunities in this growing renewable energy market".
For further information, please contact:
China New Energy Limited
Ivy Xu xuhj@zkty.com.cn Tel: +86 20 8705
9371
Cairn Financial Advisers LLP
(Nomad)
Jo Turner / Sandy Jamieson Tel: +44 20 7213 0880
Daniel Stewart and Company
(Broker)
David Lawman. Daphne Zhang Tel: +44 20 7776 6550
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END
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