- Total contract value amounts to US$4.85 million & revenue to be
recognized in Q2 2009 per US GAAP would be roughly US$3.7 million
- Partnered with Global 500 China Metallurgical Group's engineering arm
- Combined systems would have an equivalent heat energy generation
capacity of 43MW
SHANGHAI, May 5 /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 large order for three sets of waste heat recovery systems for a large nickel mine project in Papua New Guinea. The total contract value is RMB33.15 million (approximately US$4.85 million based on the exchange rate as of the date of this press release) and the corresponding revenue to be recognized in Q2 2009 according to US GAAP (please see below for revenue recognition details) would amount to roughly RMB25.5 million (approximately US$3.7 million).
China Enfi Engineering Corporation ("Enfi"), one of China's largest engineering firms for overseas industrial construction and a subsidiary of China Metallurgical Group, a Global 500 corporation, is the main contractor for the nickel mine project. CER has been a partner with Enfi for numerous projects of waste heat recovery systems in recent years.
"We are very proud that China Enfi Engineering Corporation has again chosen CER as a partner in developing the waste heat energy recovery systems for its large scale overseas industrial projects," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "Once again, we are able to demonstrate our strong technological capability in waste heat recovery with a valuable engineering partner, and broaden our market reach beyond our traditional areas of operation. As we continue to market our expertise into other regions and areas, we will continue to develop advanced technologies and systems to adapt to new customer types. This new nickel mine project is a good example of adapting our technology into new and developing industries."
These three sets of waste heat energy recovery systems are designed to generate approximately 215 tons of steam per hour in total. This is equivalent to a heat energy generation capacity of nearly 43MW. These systems are estimated to achieve an annual saving of roughly 93,000 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of power, and will consequently reduce roughly 247,000 tons of carbon dioxide emissions from the burning of that coal each year.
The contract value presented above includes a 17% value added tax ("VAT") and a retainage for product warranty purpose, which will be recognized as deferred revenue. VAT and the retainage are excluded for revenue recognition purpose for the current period according to US GAAP. 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 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
Email: seamah@gmail.com
Investor Relations
Jim Blackman
Tel: +1-713-256-0369
Email: jim@prfmonline.com
