- Total contract value amounts to US$0.48 million & US GAAP revenue to be
recognized in Q2 2009 would be US$0.39 million
- Equivalent to nearly 10MW clean heat energy generation capacity and
saving of 21,600 tons of coal with reduction of 57,400 CO2 emission
annually
SHANGHAI, June 9 /PRNewswire-Asia/ -- China Energy Recovery, Inc. (OTC Bulletin Board: CGYV) (ISIN: US16943V2060; "CER"), a leader in the waste heat energy recovery sector of the industrial energy efficiency industry, today announced that the company has completed a waste heat recovery system for Mingye Chemical Fiber in Shaoxing City, Zhejiang Province. The total contract value for the new system is RMB3.28 million (approximately US$0.48 million) and the corresponding revenue to be recognized in Q2 2009 according to US GAAP (see below for revenue recognition details) would amount to roughly RMB2.66 million (approximately US$0.39 million).
"We are very pleased to announce the completion of this waste heat recovery system for Mingye Chemical Fiber, which is a typical fast growing privately held company in Zhejiang Province," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "This is a region where entrepreneurial businesses are very active and comprise enormous supports to the vibrant local economy. Though our client base is increasingly becoming large sized state-owned enterprises, public companies, foreign invested enterprises and overseas corporations, we are also seeing more and more privately held entrepreneurial clients in China starting to recognize the energy saving benefits from waste heat recovery and proactively assuming environmental responsibilities along with their fast growth. We expect this trend to continue and anticipate Q2 will significantly surpass Q1 and exceed the same quarter of 2008 too."
The waste heat energy recovery system is designed to generate approximately 50 tons of steam per hour. This is equivalent to a clean heat energy generation capacity of nearly 10MW. This system is estimated to achieve an annual saving of roughly 21,600 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of power, and will consequently reduce roughly 57,400 tons of carbon dioxide emissions from the burning of that amount of coal each year.
The contract value presented above includes a 17% value added tax ("VAT") and a 5% retainage for product warranty purpose. According to US GAAP, VAT and the retainage are excluded for revenue recognition purpose for the current period and the retainage will be recognized as deferred revenue. The numbers presented represent values based on current exchange rates. Changes in the currency exchange rates would result in a commensurate change in contract value.
What is Waste Heat Energy Recovery?
Industrial facilities release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high-pressure steam. Energy recovery is the process of recovering vast amounts of that wasted energy and converting it into usable heat energy or electricity, dramatically lowering total energy costs. Energy recovery systems are also capable of capturing harmful pollutants that would otherwise be released into the environment. It is estimated that if energy currently wasted by all the U.S. industrial facilities could be recovered, it could produce power equivalent to 20% of U.S. electricity generation capacity without burning any additional fossil fuel, and could help many industries to meet stringent environmental regulations.
About China Energy Recovery, Inc.
CER is an international leader in designing, manufacturing and installing waste heat energy recovery systems, which provide facilities with greater energy efficiency. The company's primary focus is on the Chinese market. CER's technology captures industrial waste energy to produce low-cost electrical power, enabling industrial manufacturers to reduce their energy costs, shrink their emissions footprint, and generate sellable emissions credits. CER has deployed its systems throughout China and in such international markets as Egypt, Korea, Vietnam and Malaysia. CER focuses on numerous industries in which a rapid payback on invested capital is achieved by its customers, including: chemical, paper manufacturing, refining (including methanol refining), etc. CER continues to invest in R&D and plans to build China's first state-of-the-art energy recovery system research and fabrication facility to allow it to meet the increased demand for its products and services. For more information on CER, please visit: http://www.chinaenergyrecovery.com/s/Home.asp . Information on CER's website does not comprise a part of this press release.
Forward-Looking Statement Disclaimer
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that CER believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors that CER believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of CER and may not materialize, including, without limitation, the efficacy and market acceptance of CER's products and services, CER's ability to execute on its business plan and strategies and CER's ability to successfully complete orders and collect revenues therefrom. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, CER does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in CER's filings with the Securities and Exchange Commission, including CER's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2009.
For more information, please contact:
Media
Sean Mahoney
Tel: +1-310-867-0670
Investor Relations
Jim Blackman
Tel: +1-713-256-0369
