Gushan Environmental Energy Limited (GU)
Q2 2010 Earnings Call
August 18, 2010 8:30 AM ET
Wilson Kwong – President
Frank Chan – Principal Financial Officer
Robert Lahey – Ardour Capital
Good morning. And thank you for participating in the Second Quarter 2010 Earnings Conference Call of Gushan Environmental Energy. At this time, all participants are in a listen-only mode. After the call, we will conduct the question-and-answer session. Today's conference is being recorded.
I would now like to turn the call over to Wilson Kwong, President of Gushan Environmental Energy. Please proceed.
Good morning, ladies and gentlemen. And welcome to Gushan's second quarter 2010 earnings call. Joining me on the call is Frank Chan, Principal Financial Officer of Gushan.
Please note that today's discussion may contain forward-looking statements made under the Safe Harbor provisions of Federal Securities laws. Please see today's press release under the section Safe Harbor Statement for a discussion of risks and uncertainties that may affect our results. Before opening the call to questions, I would like to briefly review our second quarter results.
As with the past several quarters, the challenging operating environment and continued uncertainty over the consumption tax issue negatively impacted Gushan’s results for the second quarter of 2010.
Total revenues for the quarter dropped 64.8% year-to-year and 16.6% quarter-on-quarter to $8.9 million. The revenue decline was mainly the result of a drop in the sales volume of both biodiesel and biodiesel by-products.
Sales volume of biodiesel was down 68% year-to-year and 17.5% quarter-on-quarter to 12,833 tons. Sales volume declined because production remained suspended at our Fujian plant due to the consumption tax issue and because production was suspended at our Shanghai plant beginning in April of this year due to environmental restrictions imposed by Shanghai municipal government for the Shanghai Expo of 2010.