Announces its financial results for the three- and nine-months ended Sept. 30, 2009
China Energy Recovery, Inc., an international leader in the design, fabrication, implementation and service of waste heat recovery systems, today announced its financial results for the three- and nine-months ended Sept. 30, 2009. All currency amounts are in U.S. dollars.
Net loss for the three months ended Sept. 30 was $117,006, or $0.00 per share, on revenues of $6,064,800, compared to a net income of $244,856, or $0.01 per share, on revenues of $6,123,704 in the same period a year ago. The net loss is due mainly as a result of increases in operating expenses and lower gross profit.
An increase in operating expenses from $1.2 million in the three months ended Sept. 30, 2008 to $2.3 million in the most recent three-month period is due mainly to costs associated with becoming a public company and an increase in the allowance for doubtful accounts.
Net loss for the nine months ended Sept. 30 was $746,108, or $0.02 per share, on revenues of $14,942,533, compared to a net income $809,088, or $0.03 per share, on revenues of $15,980,191 in the same period last year.
The company drew down all of a $5 million facility, which will partially fund the construction of a world-class, state-of-the-art production and manufacturing facility in Yangzhou. The new facility is part of the Company’s business plan to expand its production capacity, lower its production costs and develop additional demand for its products within China and overseas. The company secured the land for the facility in August and completed some initial steps for its acquisition and development. Construction is expected to be completed in late 2010.
“Revenues decreased slightly this quarter but, with the recovery of the Chinese economy and the government’s emphasis on energy efficiency and pollution reduction, we see the rate of new orders returning to normal and we anticipate growth in new orders going forward,” said Mr. Qinqhuan Wu, China Energy Recovery’s Chief Executive Officer.”
“CER is among very few companies in China with the design and engineering capability to meet fast-growing demand for energy recovery systems, especially demand for larger systems,” Mr. Wu said. We are increasing our facilities, expanding our internal research capabilities, developing engineering relationships and broadening our market approach in an effort to capture a greater share of this growing market inside China and overseas. Through these efforts, CER will be in a position to market its waste heat recovery technology and engineering expertise worldwide.
“A grant from the Chinese government in connection with the planned new production facility acknowledges the important role waste heat recovery systems play in improving energy efficiency and reducing pollution in China,” Mr. Wu said. “It also represents an important vote of confidence in CER as a leader in the design and engineering of waste heat recovery systems and in its opportunity to build business worldwide.”
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 wasted energy and converting it into usable heat energy, including electricity. Energy recovery systems also are 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. CER’s technology captures industrial waste energy to produce low-cost electrical power enabling industrial manufacturers to reduce their energy costs, to shrink their emissions footprint, and to 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 and refining (including methanol refining). 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.