-- Estimated 2009 Revenues increase by approximately $25 million or 130% and Net Income increases by approximately $13 million, compared to 2008 results
-- Preliminary result exceeds previous full year guidance for 2009 by approximately $10 million or 30% in Revenues and approximately $3 million or 37.5% in Net Income
XI'AN, China, Jan. 15 /PRNewswire-Asia/ -- China Recycling Energy Corp. (OTC Bulletin Board: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced its preliminarily financial results for the fourth quarter and full year 2009.
Revenues for the fourth quarter of 2009 are expected to be in the range of $11-12 million, versus $12.3 million in the fourth quarter of 2008. Net income for the fourth quarter of 2009 is expected to be in the range of $2.5-3.0 million, or $0.05-0.06 per diluted share, an approximately 20% increase from the prior year's fourth quarter results of $2.3 million, or $0.04 per diluted share.
For the year ended December 31, 2009, revenues are expected to be in the range of $45-46 million, a more than 130% increase from full year 2008 results of $19.22 million. Full year 2009 net income is expected to be in the range of $10.5-11 million, or $0.22 to $0.23 diluted earnings per share, which is an approximately $13 million increase from full year 2008's net loss of $2.22 million, or $(0.07) diluted earnings per share.
The Company had previously indicated it expected full year 2009 revenues in the range of $33 million to $36 million, with net income, excluding non-cash charges, of approximately $8 million. The company is expected to exceed its previous full year guidance by approximately $10 million or 30% in revenue and approximately $3 million or 37.5% in net income.
Mr. Guohua Ku, Chairman and CEO of CREG, commented, "During the course of 2009, CREG is able to delivery on all of its goals and expectation for shareholder values and customers. In fact, we were able to significantly beat our financial projections by over 30% for the year. As we enter 2010, we expect to be able to continue strong development momentum and achieve sustained growth with the platform that we are continuing building up in China's tremendous energy inefficiency and the strong government incentives that clean tech sector is receiving. Our Build-Operate-Turn Key ("BOT") model allows us significant visibility based on previously executed contracts and revenue generated from electricity sales in relation to those contracts."
The Company anticipates filing its full year 2009 results and will issue its 2010 guidance by March 31, 2009.
About China Recycling Energy Corp.
China Recycling Energy Corp. (OTCBB: CREG.OB; "CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.
For more information about CREG, please visit http://www.creg-cn.com .
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
In China:
Mr. Leo Wu
Investor Relations
China Recycling Energy Corp.
Tel: +86-29-8765-1097
Email: tch@creg-cn.com
In USA:
Mr. Howard Gostfrand
American Capital Ventures, Inc.
Tel: +1-305-918-7000
Email: hg@amcapventures.com
