Guangdong Baolihua New Energy Stock Co Ltd yesterday reported a 630 per cent year-on-year growth in net profit for the first half of the year.

The Shenzhen-listed company is the first to announce its half-year financial results on the domestic Shanghai and Shenzhen stock markets.

Other listed companies will release their half-year reports over the next two months.

Baolihua, which transformed itself into a new energy company providing clean and renewable energy for power generation earlier this year, said that its net profit was 126.5 million yuan (US$15.8 million) for the first six months of 2006.

During this period its turnover of major businesses, including new energy power generation, real estate development and architecture, totalled 515.4 million yuan (US$64.4 million), 184.72 per cent over the same period last year.

"Focusing on new energies, which are supported by government policies, is why the power generation company has had such huge growth," said Yang Ming, an electricity industry analyst from Shenyin & Wanguo Securities.

The company predicted its net profit for the first three quarters would see a year-on-year growth of 400 to 450 per cent.

It also projected its performance would continue to grow when construction of the second-phase new energy power generation project kicks off in October this year, to begin operation in 2008.

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