China New Energy expects record FY revenues despite coronavirus impacts

Engineering and technology firm China New Energy continued to trade well in the second half of 2019, with full-year revenues now expected to be the highest since the group's admission to AIM despite the Wuhan coronavirus outbreak causing some interruptions.

China New Energy said on Tuesday that subject to audit, revenue for the six months ended 31 December 2019 was expected to be ahead of that for the six months to 30 June 2019.

The AIM-listed firm also expects to post record full-year sales and said it had entered 2020 with a "strong" order book and confidence in its future.

While CNE acknowledged the damage caused by the Wuhan coronavirus throughout the quarter, the group does not currently believe it will cause a "significant financial impact" in 2020 - noting that during the Chinese New Year holiday, it usually closes its office and factory for a period of two weeks anyway.

Although its operations were expected to be shut down until 15 February, CNE's Chinese employees were working from home, leading it to expect "minimal interruption" to its office-related business activities. The closure of its factory for an additional five working days was expected to cause "only minor manufacturing delays".

Chairman Yu Weijun said: "I am proud of our team for both supporting our local community and providing business continuity during this challenging time.

"The macroeconomy for our industry remains unchanged and, as we enter 2020 with a strong order book, we remain confident that the business will have continued success in 2020 and beyond."

As of 0835 GMT, China New Energy shares were untraded at 2.50p.