(Source: PRNewswire)
SHANGHAI, May 5 /PRNewswire-Asia/ -- China Energy Recovery, Inc. (OTC Bulletin Board: CGYV) (ISIN: US16943V2060; "CER"), a leader in the waste heat energy recovery sector of the industrial energy efficiency industry, today announced that the company has completed a large order for three sets of waste heat recovery systems for a large nickel mine project in Papua New Guinea. The total contract value is RMB33.15 million (approximately US$4.85 million based on the exchange rate as of the date of this press release) and the corresponding revenue to be recognized in Q2 2009 according to US GAAP (please see below for revenue recognition details) would amount to roughly RMB25.5 million (approximately US$3.7 million).
China Enfi Engineering Corporation ("Enfi"), one of China's largest engineering firms for overseas industrial construction and a subsidiary of China Metallurgical Group, a Global 500 corporation, is the main contractor for the nickel mine project. CER has been a partner with Enfi for numerous projects of waste heat recovery systems in recent years.
"We are very proud that China Enfi Engineering Corporation has again chosen CER as a partner in developing the waste heat energy recovery systems for its large scale overseas industrial projects," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery. "Once again, we are able to demonstrate our strong technological capability in waste heat recovery with a valuable engineering partner, and broaden our market reach beyond our traditional areas of operation. As we continue to market our expertise into other regions and areas, we will continue to develop advanced technologies and systems to adapt to new customer types. This new nickel mine project is a good example of adapting our technology into new and developing industries."
These three sets of waste heat energy recovery systems are designed to generate approximately 215 tons of steam per hour in total. This is equivalent to a heat energy generation capacity of nearly 43MW. These systems are estimated to achieve an annual saving of roughly 93,000 tons of coal (coal equivalent), which would otherwise be required to produce the same amount of power, and will consequently reduce roughly 247,000 tons of carbon dioxide emissions from the burning of that coal each year.
The contract value presented above includes a 17% value added tax ("VAT") and a retainage for product warranty purpose, which will be recognized as deferred revenue. VAT and the retainage are excluded for revenue recognition purpose for the current period according to US GAAP. The numbers presented represent values based on current exchange rates.
