The Chinese energy providing company, CF Energy Corp., has announced the financial results for the first half of 2020 and filed its unaudited condensed interim consolidated financial report. The adverse impact of COVID-19 pandemic continued to impact the company’s revenue, gas sales volume and results of the Group during the second quarter of the 2020.
For the first half of 2020, the company reported the 26% decline in revenue to RMB155.8 million as compared to prior year same period revenue of RMB210.0 million. While during the second quarter of 2020, it’s revenue declined 14% to RMB88.4 million as compared to the second quarter 2019 revenue of RMB102.2 million.
It posted the decline of 30% in gross profit during first half of 2020 to RMB55.4 million as compared to prior year same period gross profit of RMB78.6 million. For the second quarter of 2020, it also posted the slump of 30% to RMB28.1 million as compared to the second quarter 2019 gross profit of RMB39.9 million.
Its gross profit margin in first half of 2020 remained 35.6% which is a 1.9 percentage points decrease as compared to gross margin of 37.5% during the same period of 2019. Its Gross profit margin during second quarter of 2020 declined to 31.8% with 7.2 percentage points difference as compared to second quarter 2019 gross margin of 39.0%.
The decline in gross profit and margin during second quarter of 2020 were mainly because of lower gas revenue and the company saw a change in demand composition of gas based on residential and commercial customers, while the demand from residential customers increased which yields less profit margin to the company as compared to commercial customers with same cost.
The company posted 9% fall in its net profit to RMB14.6 million as compared to previous year same period net profit of RMB16.1 million. The EBITDA during the first half stood at RMB34.6 million with a 11% decline from the first half of 2019 EBITDA of RMB39.0 million.
However, the company is optimistic after the embarking economic recovery on slaking of COVID-19 and easing off restrictions and shutdown in China. While goverment measures to support the economy with stimulation packages and measures helped the compamy but the imposition of regulations on end users energy prices waged extra pressure on the Group’s business.