PINGDINGSHAN, China,
April 25, 2016 /PRNewswire/ --
Yulong Eco-Materials Limited (NasdaqCM: YECO), an
eco-friendly building products and construction waste management
company, today announced that it has signed a new contract with one
of the 13 administrative offices of the Zhengzhou City Airport Zone
(Zhengzhou Comprehensive Experimental Zone for Airport-based
Economy), to provide construction waste management (CWM) services
for over 1,000 homesteads to be demolished in the Wangzhuang and
Wangdao villages.
The contract requires the Company to complete processing the
construction waste within 6 months which, when completed, is
expected to generate approximately $600,000 in revenue with a gross margin of over
70%. To service the contract, Yulong is currently using 3
mobile recycling stations, each with an annual designed processing
capacity of two million metric tons. The Company may deploy
additional stations in the area, as new assignments are
received.
To date, the Company has signed contracts with five out of 13
administrative offices in the zone, and is negotiating with the
other administrative offices. As a result, the Company is
processing waste from approximately 3,300 demolished homesteads and
expects to report strong fiscal 2016 third quarter revenue for its
CWM segment.
As previously announced, over 20,000 homesteads were demolished
in 2015 in the airport zone, and it is estimated that around 12,000
homesteads will be demolished every year for the next 3 years.
Yulong Zhu, the Company's Chief
Executive Officer, noted, "We commenced CWM services one year ago
and today this segment has become a major contributor of revenue
for our Company. We believe that once our technical code is
published by Henan's Department of
Transportation, we will generate additional high margin revenue
from the sale of recycled materials and further improve our bottom
line. Thus, we plan to increase our waste processing capacity
by purchasing additional mobile recycling stations to handle
additional projects we expects to receive in the near future."
Mr. Yulong continued, "Our success is a demonstration of our
sound business growth strategy to expand our activities in new
geographies where we see that CWM services are needed. We are very
proud of our achievements over the last year. We will
continue our efforts to strengthen our existing and also develop
new strategic partnerships to expand our business in other cities
in our province."
About Yulong Eco-Materials
Yulong is a vertically integrated manufacturer of eco-friendly
building products and a construction waste management company
located in the city of Pingdingshan in Henan Province, China. The Company is currently Pingdingshan's
leading producer of fly-ash bricks and concrete as well as the
exclusive provider of construction waste management services for
the cities of Pingdingshan and Shangqiu.
Forward-Looking Statements
This press release contains forward-looking statements,
particularly as related to, among other things, the business plans
of the Company, statements relating to goals, plans and projections
regarding the Company's financial position and business strategy.
The words or phrases "plans," "would be," "will allow," "intends
to," "may result," "are expected to," "will continue,"
"anticipates," "expects," "estimate," "project," "indicate,"
"could," "potentially," "should," "believe," "think," "considers"
or similar expressions are intended to identify "forward-looking
statements." These forward-looking statements fall within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Act of 1934 and are subject to the safe
harbor created by these sections. Actual results could differ
materially from those projected in the forward-looking statements
as a result of a number of risks and uncertainties. Such
forward-looking statements are based on current expectations,
involve known and unknown risks, a reliance on third parties for
information, transactions or orders that may be cancelled, and
other factors that may cause our actual results, performance or
achievements, or developments in our industry, to differ materially
from the anticipated results, performance or achievements expressed
or implied by such forward-looking statements. Factors that could
cause actual results to differ materially from anticipated results
include risks and uncertainties related to the fluctuation of
local, regional, and global economic conditions, the performance of
management and our employees, our ability to obtain financing,
competition, general economic conditions and other factors that are
detailed in our periodic reports and on documents we file from time
to time with the Securities and Exchange Commission. Statements
made herein are as of the date of this press release and should not
be relied upon as of any subsequent date, and the Company
specifically disclaims any obligation, to update any
forward-looking statements to reflect occurrences, developments,
unanticipated events or circumstances after the date of such
statement.
Contact:
Investor Relations Counsel:
The Equity Group
Inc.
Lena Cati
Vice
President
212-836-9611 /
lcati@equityny.com
www.theequitygroup.com
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SOURCE Yulong Eco-Materials