Gushan Environmental Energy Limited (GU)
Q3 2010 Earnings Call Transcript
November 29, 2010 8:30 am ET
Wilson Kwong – President
JinMing Liu – Ardour Capital Investments
Good morning, and thank you for participating in the third 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 a question-and-answer session. Today's conference is being recorded.
I would now like to turn the conference over to Mr. Wilson Kwong, President of Gushan Environmental Energy. Please proceed.
Good morning, ladies and gentlemen, and welcome to Gushan's third 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. Now, before opening the call to questions, I would like to briefly review our third quarter results.
Gushan’s earnings continue to be negatively impacted by a challenging operating environment and continued uncertainty over the consumption tax issue, and this is reflected in the company’s results for the third quarter of 2010. Total revenues for the quarter declined 63% year-over-year and 31.1% quarter-on-quarter to 6.2 million, due to declining sales volume of both biodiesel and by-products.
Sales volume of biodiesel was down 66.3% year-over-year and 34.8% quarter-on-quarter to 8,363 tons. Sales volume declined because production remained suspended at several of our plants including our Fujian, Chongqing and Hunan plants because of the consumption tax issue, our Shanghai plant because of environmental restrictions imposed by the Shanghai municipal government for the Shanghai Expo, and an ongoing dispute with a contractor, and our Sichuan plant where production was temporarily suspended as we relocate the production line to the site of our new plant.