The Board of Directors of China Energy Limited (the "Group")
wishes to announce that the Group will report a substantial
increase in the net loss for the financial year ended 31
December 2011.
On 16 September 2011, the Company announced that the Group
anticipates to report a net loss for the financial year
ending 31 December 2011 due to the high cost of anthracite
coal which made it not cost effective for the Group to
produce methanol from anthracite coal. This accounted for the
very low utilisation rate of the Group's in-house methanol
plants which was expected to erode the gross profit
contributions from the sale of Dimethyl Ether ("DME').
In view of the persistently high cost of anthracite coal,
management has reviewed the carrying value of the Group's
methanol assets and assessed that indications of impairment
have arisen. As such, management will be submitting its
assessment of the impairment on the Group's methanol assets
("Impairment") to the Board for its consideration.
If the Impairment assessment is accepted by the Board, the
Impairment and related provisions will materially increase
the Group's net loss for the financial year ended 31 December
2011. Further details will be provided in the Company's
un-audited full year results announcement next week.
1st Jan change | Capi. | |
---|---|---|
-10.25% | 1.6B | |
-.--% | 209M | |
-8.43% | 186M | |
-50.95% | 142M |