SHANGHAI, Nov. 14, 2011 /PRNewswire-Asia/ -- China Energy Recovery Inc. (CGYV.PK) ("CER"), an international leader in the design, fabrication and installation of waste heat recovery systems, today announced financial results for the third quarter and the nine months of fiscal 2011, ended September 30, 2011, as compared with the figures for the same period in 2010. CER also announced the detailed arrangement of the 2011 Annual Meeting of Stockholders.
Highlights for the 3rd quarter 2011, compared with the same quarter 2010:
- Revenues increased 378% to $29.4 million.
- Gross profit increased 265% to $5,088,000.
- Net income of $2,605,000, compared to net loss of $854,000, an absolute increase of 405%.
Highlights for the nine months of year 2011, compared with the same period of year 2010:
- Revenues increased 215% to $55.0 million.
- Gross profit increased 215% to $9,469,000.
- Net income of $3,285,000, compared to net loss of $394,000, an absolute increase of 934%.
Nine months of year 2011 results
Revenues for the nine months ended September 30, 2011, were $55.0 million, up from $17.4 million in the same period a year ago.
Gross profit in the nine months increased to $9,469,148 or 17.2 percent of sales, compared to $3,002,802 or 17.2 percent of sales in the same period a year ago. The company achieved an operating gain of $3,102,778 compared to loss of $1,092,300 in the same period a year ago.
Benefitting from increases in income from operations, net income increased to $3,285,399 compared to loss of $394,105 in the same period a year ago.
"Revenue growth in the third quarter and the nine months of the year reflects our marketing efforts and new manufacturing facility and, in particular, one significant EPC contract," CER Chief Executive Officer Qinqhuan Wu said. Mr. Wu continued, "In the nine months of 2011, with our new manufacturing facility in operation and our ability to perform more EPC contracts, we achieved great improvements in our revenues and gross profits. For the last quarter of 2011, based on our current contracts and production schedule, we anticipate positive results in line with the third quarter of the year."
Notice to hold AGM in November
China Energy Recovery will hold its 2011 Annual Meeting of Stockholders on 9:00 AM (local time), Monday, November 28, 2011 at its head office in Shanghai. The purpose of the meeting is:
- To elect five directors to serve for one-year terms ending in the year 2012;
- To ratify the appointment of PricewaterhouseCoopers ZhongTian CPA's Limited Company as the accounting firm for the fiscal year ending December 31, 2011; and
- To approve the China Energy Recovery 2011 Performance Equity Plan
"We are looking forward to holding the meeting, and we encourage all shareholders who can to show up at the meeting in person," CER Chief Executive Officer Qinqhuan Wu said. Mr. Wu continued, "The Board may consider holding the meeting in the United States next year."
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 as much as two-thirds 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 engineering and manufacturing company that specializes in the design, construction and installation of waste heat energy recovery systems that captures and converts industrial waste energy produced by heavy industrial processes such as petroleum and chemicals refining, paper manufacturing and refining into low-cost electrical power, which enables industrial manufacturers to reduce their energy costs, shrink their emissions footprint and generate salable emissions credits. The company's primary focus is the Chinese market; however, CER's systems are operating in heavy industrial plants located in Egypt, Korea, Vietnam and Malaysia. CER is building one of China's largest state-of-the-art, energy recovery system research and fabrication facility, which will allow CER to meet 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.
China Energy Recovery
CHINA ENERGY RECOVERY, INC. AND SUBSIDIARIES
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SOURCE China Energy Recovery Inc.