CBI China Bio

RNS Number:7480Y
China Biodiesel International Hold 
21 June 2007





                China Biodiesel International Holding Co., Ltd.
                                        
                                        
                               AGM trading update
                                        


At the Annual General Meeting of China Biodiesel International Holding Co., Ltd.
("CBI" or "the Company"), the Chairman, Huodong Ye, will make the following
statement:


"Since the beginning of 2007, the Company has made good progress in its
technical development activities which so far include successful applications
for three more national patents. In addition, as a leading biodiesel
manufacturer in China, CBI was recently recognised in the Chinese National 11th
Five-year Plan as the only 'Technologically Supporting Enterprise' in the
biodiesel industry. CBI is currently the only company in its sector expected to
receive financial subsidy from the Chinese government, starting in 2007.

"CBI's total output from 1 January 2007 to 31 May 2007 was 9,555 tons which,
along with turnover and profit for the period, was in line with market
expectations. However, continuing worldwide inflation in vegetable and animal
oils has increased the cost of waste oils. This is reflected in the average
price per ton CBI has paid for feedstock which, over the same period has
increased from approximately RMB 2,800 to more than RMB 3,300. Rising feedstock
prices, combined with stable selling prices for diesel in China and
internationally have therefore resulted in the Company achieving lower gross
margins. The Directors do not forecast the cost of feedstock to fall back in the
near future and, as a result, expect that net profit for 2007 will be
substantially below market expectations.

"In line with previous guidance on installed capacity targets, the construction
of our second plant in Longyan is almost complete, and the new plant in Xiamen
is scheduled to start production during the third quarter of 2007. Recently the
Company has built relationships with new suppliers of raw material, both inside
and outside China, in order to secure the supply of feedstock that will be
required once these new plants start production.

"Part of CBI's strategy is to expand our export business to take advantage of
the Company's relatively low cost of production and higher international selling
prices. Once the new capacity at Longyan and Xiamen is in full production, we
expect exports to contribute significantly to future revenues and higher
margins.

"Although CBI is sharing a number of challenges with the rest of the world's
biodiesel industry, the Company is strong and we look forward to continuing to
build our position in a growing market."


END


Enquiries:


Gloria He, CFO:                                             +86 (592) 7890366
James King Wang, Company Secretary:                         +86 (597) 2283825

Simon Bloomfield or Louise Mason
Bankside Consultants                                     +44 (0) 207 367 8888






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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