FUQING CITY, China, April 25 /Xinhua-PRNewswire-FirstCall/ -- China Clean Energy Inc. (OTC Bulletin Board: CCGY) (“China Clean Energy”, the “Company”), in connection with its recent announcement that it has temporarily halted biodiesel production and shifted its focus to specialty chemicals, has reaffirmed its expectation of achieving at least $14,000,000 of adjusted net income in 2009.
China Clean Energy has the ability to produce both biodiesel and specialty chemicals, thus allowing it to respond to prevailing market conditions. As previously announced, the recent spike in the price of raw material feedstock has made the production of biodiesel unattractive, as the Chinese government has yet to increase wholesale diesel prices accordingly. In the unregulated specialty chemicals segment by contrast, the Company has been able to pass some of its raw material cost increases to its customers, therefore preserving its profitability. To mitigate the challenging conditions in the biodiesel segment of its business, the Company has decided to upgrade its current refinery to produce 3,000 tons per year of high purity Dimer Acid, and to equip its Jiangyin facility with the ability to produce specialty chemicals. As a result of these efforts, the Company reaffirms its belief that it will start production of either biodiesel and/or specialty chemicals from its Jiangyin plant by January 1, 2009 and achieve at least $14,000,000 of adjusted net income during 2009.
“We have moved fast to adjust our plans to the current difficult environment in the biodiesel segment of our business,” stated Mr. Tai-Ming Ou, Chairman and CEO of China Clean Energy. “As we look to 2009, we expect demand for our specialty chemicals to continue to be strong, and we will also be prepared to take advantage of opportunities in the Biodiesel market when conditions improve.”
Conference Call
The Company will conduct a conference call at 11:00 a.m. Eastern Time on Friday, April 25, 2008 to answer investor’s questions. Joining Mr. Tai-ming Ou, Chairman and Chief Executive Officer of China Clean Energy, will be Mr. Ri-wen Xue, Chief Operating Officer, and Mr. Gary Zhao, Chief Financial Officer.
To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: +1(888)552-2116. International callers should dial +1(706)634-2457. When prompted by the operator, mention Conference Passcode 45083786.
About China Clean Energy:
China Clean Energy, through its wholly-owned subsidiaries, Fujian Zhongde Technology Co., Ltd. and Fujian Zhongde Energy Co., Ltd, is engaged in the development, manufacturing, and distribution of specialty chemical products made from renewable resources.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s ability to raise additional capital to finance the Company’s activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the Company; the ability of the Company to expand its production capacity; the period of time for which its current liquidity will enable the Company to fund its operations; the Company’s ability to protect its proprietary information; general economic and business conditions; the volatility of the Company’s operating results and financial condition; the Company’s ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
China Clean Energy Inc.
Gary Zhao, CFO
Phone: +1-86-138-0133-9172 (China)
Email: gary.zhao@chinacleanenergyinc.com
CCG Elite Investor Relations Inc.
Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Ed Job, CFA
Phone: +1-646-213-1914
Email: ed.job@ccgir.com
