XI'AN, China, Dec. 30, 2010 /PRNewswire-Asia-FirstCall/ -- China Recycling Energy Corp. (Nasdaq: CREG or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced further detailed information of its Strategic Cooperative Agreement with China Cinda Asset Management Limited Corporation ("Cinda"), one of the largest state-owned financial institutions providing diverse financial services in China and also owner or shareholder of numerous large scale high energy consuming industrial firms. The company also announced that first closing of RMB 100 million has been completed on December 28, 2010 with Cinda, as a part of the agreement signed on August 18, 2010.
The Company and Cinda will closely cooperate in the following areas:
- Cinda's subsidiaries and branches will make introductions on behalf of CREG to their portfolio companies and clients and provide assistance to CREG's business development;
- CREG will participate in the bidding process for projects involving Cinda's portfolio companies and clients;
- Cinda will provide comprehensive financial support to CREG, including but not limited to: fund management, securities, insurance, leasing, trust, merchant bank and other financing services;
- CREG and Cinda shall communicate multiple times a year on business cooperation, potential projects, new financing products, etc.
- CREG and Cinda will set up a team to promote business and coordinate the execution.
Mr. Guohua Ku, Chairman and CEO of CREG commented, "We are pleased to provide this update to our investors informing them of our exciting partnership with Cinda, which will provide not only necessary financing but also lead to prospective waste-to-energy business opportunities in the future. Through Cinda, we have completed our financing for Phase IV and Phase V of Erdos and are eager to continue building out our project pipeline. This is just the beginning of what is anticipated to be a mutually beneficial relationship between CREG and Cinda, one of the largest financial asset management firms in China. We look forward to continually updating the investment community and our strategic partners as our waste-to-energy project portfolio grows."
The RMB 100 million financing was provided in the form of Convertible Notes and Trust Loans. The funds will be used towards the construction of and working capital for projects including Phases IV and V, a total of approximately 39-MegaWatt power capacity energy recycling systems, of the joint venture between Xi'an TCH and Erdos Metallurgy to recycle waste heat from Erdos Metallurgy's refining plants.
Additional details for terms of the Notes and Loans are available in the Company's Securities and Exchange (SEC) filing on Form 8-K on August 20, 2010.
About China Recycling Energy Corp.
China Recycling Energy Corp. (NASDAQ: 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.
SOURCE China Recycling Energy Corp.