SHANGHAI, Sept. 23 /PRNewswire-Asia/ --
-- New Contract Wins in September Total Approximately US$10 Million
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 won an RMB 34.5 million (US$5.05 million) Engineering, Procurement and Construction ("EPC") contract for a heat recovery system for Hubei Sanning Chemical ("Sanning"), a fertilizer and coal chemical subsidiary of Jincheng Coal Group, a top-10 coal producer and one of the 200 Largest Companies in China.
This most recent contract win follows the award of an RMB 30.5 million (US$4.47 million) EPC contract to CER from Tianjin Qinfa Chemical, a subsidiary of Tianjin Bohai Chemical Group, to construct a 200,000-ton annual capacity sulfuric acid plant with a built-in waste heat recovery system used to generate 3 megawatts ("MW") of electricity and 2.8 MW of heat energy generation capacities, respectively.
The system will enable Sanning to utilize steam captured during the production process. This is equivalent to approximately 4.2MW worth of power generation capacity each year. The system will allow Sanning to reduce its coal usage (in terms of coal equivalent) by some 9,100 tons, which would otherwise be required to produce the same amount of power, and thus cut CO2 emissions by about 24,200 tons annually.
"We are very pleased to have secured two significant projects in September," Qinghuan Wu, Chairman and CEO of China Energy Recovery, said. "These sizable project wins demonstrate that a greater number of industrial customers recognize CER's leadership in design and engineering. CER operates across a spectrum where it can design and engineer not only the waste energy recovery systems but also the whole new plants so as to allow seamless integration to achieve optimal recovery efficiencies. Added to this, we see the market for our waste energy recovery systems and engineering services continuing to grow strongly. As a result, we expect a stronger year in 2010 as we bring new manufacturing capacity online with the completion of our state-of-the-art manufacturing facility in the second half of 2010."
The contract value presented above includes a 17% value added tax ("VAT") and some minimum amount of retainage for product warranty purpose. According to US GAAP, VAT and the retainage are excluded from the current period for revenue recognition purpose 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 energy costs. Energy recovery systems are also capable of lowering heat pollution and 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:
Cindy Cheng
Tel: +86-21-5556-0020 x503
Email: IR@haie.com
