Guanwei Recycling has reported net revenues have increased by 34 per cent to a record $63,600,678 (£40 million) from $47,534,645 (£30 million) in 2011.
The company, which says it is the leading clean tech manufacturer of recycled LDPE in China, also reported net income in 2011 grew to a record $12,793,448 (£8 million).
In 2011, the company saw its import quota increase from 24,000 tonnes to 64,000 tonnes. When combined with the import quota of 35,000 tonnes annually, which Guanwei has contracted with another company Huan Li, its total quota in 2011 was 99,000 tonnes. For 2012, it can increase its quota to 80,000 tonnes to a total 115,000 tonnes.
However, while its profits increased 27 per cent year on year to $19.48 million (£12.15 million), its profit margin decreased to 30.64 per cent from 32.20 per cent a year earlier. This was as a consequence of an approximately 22 per cent increase in raw material costs.
In its results statement, the company said that it is continuing to develop relationships with suppliers of LDPE in Europe to help it reduce its raw material costs.
It also revealed that its selling price for LDPE increased by 9.6 per cent from $1,072 (£668) in 2010 to $1,175 (£732.50) in 2011.
Guanwei Recycling chairman and chief executive Chen Min said: “2011 certainly was another banner year for our company – not only did we see core sales advance nearly 40 per cent, but we continued to maintain gross margins above 30 per cent and generated another strong gain on our bottom line.
“Further, through careful planning and sound execution, we were able to ratchet up our production capacity on a largely self-financed basis, and enter the new year with strong financials and no debt. Additionally, we obtained a substantial increase in our Government quota for imported raw material.
“With these accomplishments, we are confident of another year of record results in 2012. Even with an anticipated slowing in our domestic economy, we have a customer base that is well diversified, and the more than 40 per cent price advantage our recycled plastic offers compared with virgin plastic continues to make it quite attractive.”