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China Energy Recovery Reports
2008 First Quarter Results of Subsidiary Poise Profit, Formerly
Independently Operated Company
May 25,2008
China Energy Recovery, Inc. (OTCBB:CGYV ) ("China Energy Recovery")
announced 2008 first quarter financial results of its wholly-owned
subsidiary, Poise Profit International Limited ("Poise Profit" and
collectively with China Energy Recovery, the "Company"). Prior to
the consummation of the Share Exchange Agreement among China Energy
Recovery, Poise Profit and the shareholders of Poise Profit on April
15, 2008 (the "Share Exchange"), Poise Profit was an independently
operated company. Poise Profit reported an increase of 106% in
consolidated revenue over the same period in 2007, with sales of
$4.18 million and a net income of $712,711.
After closing of the Share Exchange, the Company is emerging as an
international leader in the design and construction of heat-energy
recovery systems for a variety of sectors including the chemical,
petrochemical, refining, paper and steel industries, with primary
operations in Shanghai, China. The Company announced the receipt of
$8.5 million of outside financing earlier this year and intends to
use the net proceeds of that financing to accelerate growth of its
operations through its wholly-owned subsidiary, HAIE Hi-tech
Engineering (Hong Kong) Company, Limited ("Hi-tech"). Hi-tech is
ramping its production efforts in order to deliver upon existing
orders from a rapidly growing domestic and global customer base.
"We¡äre encouraged by the increase we¡äre seeing in our earnings
relative to our order backlog, which is up significantly from last
year," stated China Energy Recovery¡äs Chief Executive Officer, Mr.
Wu Qinghuan. "We are confident that with our recent financing that
is helping us raise our capacity output capability, and with our
commitment for customer orders that we expect to increase through
2008 and beyond, China Energy Recovery will continue to grow and
provide a valuable alternative energy solution for China and the
rest of the world."
China Energy Recovery¡äs financial results for the period ended March
31, 2008 (prior to taking into account the closing of the Share
Exchange and the acquisition of Poise Profit) were previously
reported on the Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on May 19, 2008. China Energy
Recovery¡äs Form 10-Q therefore did not include the financial results
of Poise Profit for the period ended March 31, 2008 since the
closing of the Share Exchange occurred on April 15, 2008. As a
result, the Company filed a Current Report on Form 8-K today to
report the financial results of Poise Profit for the period ended
March 31, 2008 (prior to taking into account the closing of the
Share Exchange and the acquisition of Poise Profit).
What is Energy Recovery?
Industrial facilities and power plants 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
electricity, dramatically lowering energy costs. Energy Recovery
also captures the majority of carbon emissions and other harmful
pollutants that would otherwise be released into the environment. It
is estimated that Energy Recovery systems installed in US industrial
facilities could produce up to 20% of US electricity needs without
burning any additional fossil fuel, and could help many industries
to meet stringent environmental regulations.
About China Energy Recovery, Inc. ("CER")
CER is an international leader in energy recovery systems, with a
primary focus on the Chinese market. CER¡äs 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, Turkey, Korea, Vietnam and
Malaysia. The Company focuses on numerous industries in which a
rapid payback on invested capital is achieved by its customers,
including: chemical, petro-chemicals, refining (including Ethanol
refining), coke processing, and the manufacture of paper, cement and
steel. CER continues to invest in R&D and plans to build China¡äs
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¡äs 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 the Company 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 the Company 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 the Company and may not materialize, including, without
limitation, the efficacy and market acceptance of the Company¡äs
products and services, the Company¡äs ability to achieve acceptable
levels of sales and margins for its products and services and the
Company¡äs ability to finance its operations and growth. 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, the Company 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 the Company¡äs recent filings with the SEC,
including the Company¡äs Current Report on Form 8-K filed with the
Securities and Exchange Commission on April 21, 2008.
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