China Environment, the provider of waste gas treatment systems, has turned in a profit after tax of RMB53.9 million ($11.2 million) on revenue of RMB499.6 million for the 12 months ended 31 December 2009.

The difference between its profit after tax of RMB53.8 million as at 31 December 2009 and the RMB82.9 million it recorded in the same period last year was due to a RMB29.3 million one-off impairment of goodwill resulting from the reverse take-over (RTO) exercise of Gates Electronics.

Excluding the impairment, the group says it would have recorded a profit after tax of RMB83.2 million, a slight increment over the same period last year.

For the 12 months to 31 December 2009, the group achieved a 8% increase in revenue to RMB499.6 million compared to RMB464.0 million for the same period last year. Along with the increase in revenue, gross profit rose by RMB10.7 million from RMB134.3 million in the previous corresponding period to RMB145.0 million for the period under review. Its gross profit margin remained stable at 29%.

Quarter-on-quarter, the group achieved stable revenue growth with a slight increase of 1% to RMB114.4 million in the 3 months ended 31 December 2009 compared to RMB113.7 million previously.

As in FY2008, the power generation industry accounted for the bulk of the revenue from waste gas treatment, at 73% or RMB365.1 million, for the period under review, followed by the cement segment with 16% or RMB80.6 million. The chemical, paper mill and mining industries made up the remaining 11% or RMB52.5 million.

As at February 25, the group has an order book of RMB137.0 million based on secured contracts, with projects lasting up to early 2011. Earlier this month, the group secured a RMB58.2 million contract to provide Electrostatic Precipitators (ESPs) for a 2x660MW thermal power project with Shanxi Province Electric Company Electric Environmental Equipment Main Factory. On Jan 11, the group announced the award of three contracts totalling RMB 82.9 million to provide ESPs for two power plants in Hebei and Henan with Shangxi Electric and baghouse units for Inner Mongolia Shuangxin Environmental Material Co.