China Biodiesel International Holding Co Ltd warned that turnover for 2007 is likely to be below previous guidance given by the company, which will lead to reduced net profit for the year ending Dec 31 but said it expects first-half revenue to be in line with management's expectations.

The group said gross margins continue to be depressed compared with last year due to increased feedstock prices and stable selling prices for diesel within China and internationally but added that gross margins are currently showing signs of improvement.

In its pre-close trading statement, the company said it sees its second-half turnover being affected by the consequence of the earlier delays in building the extension to the plant in Longyan and the delay in completing the new plant in Xiamen caused by poor weather in South China.

Full production is now expected at the Longyan plant in the fourth quarter of 2007 and in the Xiamen plant in the first quarter of 2008, the company stated.