Speaking on behalf of the Company, Mr. Gang Li, Chairman and CEO, said "The decrease in both total revenue and gross profit in the third quarter of 2016 have two main reasons: 1) Many products should have been delivered to our clients, most of which come from electric power industry, but shipment of these products had to be delayed due to their projects being postponed, which led to an increase in our inventories of $2.06 million. However, we expect that all of these inventories will be delivered to them in connection with the completion of their respective projects by the end of this year. 2) With regards to the accounts receivable, the Company takes appropriate actions to exhaust all means of collection, including seeking legal resolution in a court of law, for our collection efforts. For example, we expect the accounts receivable of one client will be collected by the end of this year in the amount of $1.32 million.
At present, our signed contracts have a total value of $4.12 million, an increase when compared with the corresponding period last year, which was disclosed in our public filings. It is anticipated that the products relating to these contracts will be manufactured in the first quarter next year.
General speaking, our products have a competitive advantage in the market considering the weak manufacturing industry in the current economy. As a result, I have more confidence in our Company, meanwhile I hope that everyone also has confidence, including our shareholders".
About NF Energy Saving Corporation
NF Energy Saving Corporation (NASDAQ: NFEC) is a China-based provider of integrated energy conservation solutions utilizing energy-saving equipment, technical services and energy management re-engineering project operations to provide energy saving services to clients. The Company's customers are mainly concentrated in the electrical generation (large-scale thermal power generation, hydroelectric power, and nuclear power), water supply, and heat supply industries. The majority of revenues are from energy efficient flow control solutions including equipment and energy efficiency project services. For more information, visit http://www.nfenergy.com.
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SOURCE NF Energy Saving Corporation