(Address, Including Zip Code, and Telephone
Number, Including Area Code, of Registrant's Principal Executive Offices)
(Name, Address, Including Zip Code, and Telephone
Number, Including Area Code, of Agent for Service)
If the only securities
being registered on this form are being offered pursuant to dividend or interest reinvestment plans, please check the following
box.
¨
If any of the securities
being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box.
x
If this form is filed
to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
If this form is a post-effective
amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.
¨
If this form is a registration
statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with
the Commission pursuant to Rule 462(e) under the Securities Act, check the following box.
¨
If this form is a post-effective
amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional
classes of securities pursuant to rule 413(b) under the Securities Act, check the following box.
¨
Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company”
in Rule 12b-2 of the Exchange Act (Check one):
TABLE OF CONTENTS
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ABOUT THIS PROSPECTUS
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1
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PROSPECTUS SUMMARY
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1
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RISK FACTORS
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3
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FORWARD-LOOKING STATEMENTS
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3
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USE OF PROCEEDS
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3
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DESCRIPTION OF CAPITAL STOCK
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3
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DESCRIPTION OF COMMON STOCK
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4
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SELLING STOCKHOLDERS
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4
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PLAN OF DISTRIBUTION
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7
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LEGAL MATTERS
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8
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EXPERTS
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8
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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
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9
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WHERE YOU CAN FIND MORE INFORMATION
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9
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ABOUT THIS PROSPECTUS
This prospectus is part
of a registration statement we filed with the Securities and Exchange Commission, or the SEC, using a “shelf” registration
process. This means the securities described in this prospectus may be offered and sold in one or more offerings using this prospectus
from time to time as described in the “Plan of Distribution.”
You should carefully read
this prospectus and the information described under the heading “Where You Can Find More Information.” We have not
authorized anyone to provide you with information different from that contained in this prospectus. The information contained in
this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of
any sale of the Shares.
Unless the context otherwise
requires, the terms “CREG,” “the Company,” “we,” “us” and “our” in
this prospectus refer to China Recycling Energy Corporation, our subsidiaries and consolidated entities. “China” and
the “PRC” refer to the People’s Republic of China.
PROSPECTUS SUMMARY
The Company
We currently engage in
the recycling energy business, providing energy savings and recycling products and services. We are a leading developer of waste
energy recycling projects for industrial applications in China, and we believe we are the only developer to use a Build-Operate-Transfer (“BOT”)
model to provide energy saving and recovery facilities for multiple energy intensive industries in China. Our waste
energy recycling projects allow customers who use substantial amounts of electricity to recapture previously wasted pressure, heat,
and gas from their manufacturing processes to generate electricity. We currently offer waste energy recycling systems to companies
for use in iron and steel, nonferrous metal, cement, coal and petrochemical plants. We construct our projects at our
customer’s facility and the electricity produced is used on-site by the customer. While some of our competitors offer projects
targeting one or two verticals, we serve multiple verticals.
We develop fully-customized
projects across several verticals to better meet customer’s energy recovery needs. Our waste pressure-to-energy
solution primarily consists of the Blast Furnace Top Gas Recovery Turbine Unit (“TRT”), a system that utilizes high
pressure gas emitted from the blast furnace top to drive turbine units and generate electricity. Our waste heat-to-energy solution
primarily consists of heat power generation projects for applications in cement, steel, coking coal, and nonferrous metal industries,
which collect the residual heat from various manufacturing processes, e.g. the entrance and exit ends of the cement rotary kilns,
to generate electricity. Our waste gas-to-energy solution primarily consists of the Waste Gas Power Generation system (“WGPG”)
and the Combined Cycle Power Plant (the “CCPP”). A WGPG system utilizes flammable waste gas from coal mining,
petroleum exploitation, refinery processing or other sources as a fuel source to generate electricity through the use of a gas
turbine. A CCPP system employs more than one power generating cycle to utilize the waste gas, which not only generates electricity
by burning the flammable waste gas in a gas turbine (as a WGPG) but also uses the waste heat from burning the gas to make steam
to generate additional electricity via a steam turbine.
We provide a clean-technology
and energy-efficient solution aimed at reducing the air pollution and energy shortage problems in China. Our projects capture industrial
waste energy to produce low-cost electricity, enabling industrial manufacturers to reduce their energy costs, lower their operating
costs, extend the life of primary manufacturing equipment. Based on the differential between the cost to our customers of buying
power from China’s national power grid and the cost to them of buying one of our projects, we believe our customers can recover
the cost of our project within two to three years of operations. In addition, our waste energy recycling projects allow
our industrial customers to reduce their reliance on China’s centralized national power grid, which is prone to black-outs
or brown-outs or is completely inaccessible from certain remote areas. Our projects generally produce lower carbon dioxide emissions
and other pollutants, and are hence more environmentally-friendly than other forms of power generation.
Since 2007, we have primarily
used the BOT model to serve our customers. For each project, we design, finance, construct and install the waste energy recycling
projects for our customers, operate the projects for five to twenty years, and then transfer the projects to the owners. The BOT
model creates a win-win solution for both our customers and us. We provide the capital expenditure financing in exchange for attractive
returns on each project; our customers can focus their capital resources on their core businesses, do not need to invest additional
capital to comply with government environmental regulations, reduce noise and emissions and reduce their energy costs. We in turn
efficiently recapture our costs through the stream of lease payments.
Our business is primarily
conducted through our subsidiaries, Shanghai Yinghua Financial Leasing Co., Ltd. (“Yinghua”) and Sifang Holdings,
its wholly owned subsidiaries, Huahong New Energy Technology Co., Ltd. (“Huahong”) and Shanghai TCH Energy Technology
Co., Ltd. (“Shanghai TCH”), Shanghai TCH’s wholly-owned subsidiary, Xi’an TCH Energy Tech Co., Ltd. (“Xi’an
TCH”), and Xi’an TCH’s subsidiaries, Erdos TCH Energy Saving Development Co., Ltd, 100% owned by Xi’an
TCH, Xi’an Zhonghong Energy Technology Co., Ltd., 90% owned by Xi’an TCH, and Zhongxun Energy Investment (Beijing)
Co., Ltd., 100% owned by Xi’an TCH.
Our Projects
We design, finance, construct,
operate and eventually transfer waste energy recycling projects to meet the energy saving and recovery needs of our customers.
Our waste energy recycling projects use the pressure, heat or gas, which is generated as a byproduct of a variety of industrial
processes to create electricity. The residual energy from industrial processes, which was traditionally wasted, may be captured
in a recovery process and utilized by our waste energy recycling projects to generate electricity without burning additional fuel
and without additional emissions. Among a wide variety of waste-to-energy technologies and solutions, we primarily focus
on waste pressure to energy systems, waste heat to energy systems and waste gas power generation systems. We do not manufacture
the equipment and materials that are used in the construction of our waste energy recycling projects. Rather, we incorporate standard
power generating equipment into a fully integrated onsite project for our customers.
Transaction Exempt From Registration Under
The Securities Act: Selling Stockholders
On June 28, 2014, our wholly-owned
subsidiary, Xi’an TCH, entered into an Asset Transfer Agreement with Qitaihe City Boli Yida Coal Selection Co., Ltd. (“Yida”),
a limited liability company incorporated in PRC. Pursuant to that agreement, we originally issued, as partial consideration for
a set of 5 MW coke oven gas power generation stations that has been converted from a 15 MW coal gangue power generation station,
and in a transaction exempt from registration under the Securities Act, 823,378 shares of our Common Stock to Superb Growth Holdings
Limited, a designee of Yida (“Superb Growth”). Of those shares, 803,378 are covered by this Registration Statement,
including the 340,000 shares and 290,000 shares that Superb Growth transferred to Ms. Feng Rong and Mr. Wang Jihua, respectively,
in a series of private transactions exempt from registration under the Securities Act, each dated May 18, 2016.
On August 27, 2014, we
entered into a Share Purchase Agreement with Mr. Guohua Ku, a Chinese citizen, major stockholder, Chairman and Chief Executive
Officer of the Company. Pursuant to the Share Purchase Agreement, we sold and issued to Mr. Ku 1,382,908 shares of our Common Stock
in a transaction exempt from registration under the Securities Act, all of which are covered by this Registration Statement.
On May 4, 2015, Mr. Ku,
in a series of private transactions exempt from registration under the Securities Act, transferred shares of our Common Stock to
Xiaogang Zhu and Jihua Wang in the amounts of 30,000 shares and 40,695 shares, respectively, all of which are covered by this Registration
Statement.
On January 19, 2015, Ms.
Rong Feng purchased 10,000 shares of Common Stock in a private transaction exempt from registration under the Securities Act pursuant
to a Share Transfer Agreement by and between Ms. Feng and Jiao Wang, all of which shares are covered by this Registration Statement.
On November 8, 2016, Ms.
Wei Wang received 20,000 shares of Common Stock in a private transaction exemption from registration under the Securities Act pursuant
to a Share Transfer Agreement by and between Ms. Wei and Mr. Ku, all of which shares are covered by this Registration Statement.
All share amounts given
in the above descriptions have been adjusted to reflect a 1-for-10 reverse stock split of the Company’s authorized shares
of Common Stock completed on May 24, 2016 (the “Stock Split”). For more information on the Stock Split, see our Form
8-K, filed May 31, 2016, and incorporated herein by reference. Prior to the Stock Split, the Company transferred the listing of
its securities from the NASDAQ Global Market to the NASDAQ Capital Market, effective December 7, 2015. For more information on
the listing transfer, see our Form 8-K, filed December 17, 2015, and incorporated herein by reference.
Our Corporate Information
We are headquartered in
China. Our principal executive offices are located at 12/F, Tower A, Chang An International Building, No. 88 Nan Guan Zheng Jie,
Xi’an City, Shaanxi Province, China, and our telephone number at this location is +86-29-8769-1097. Our website address is
www.creg-cn.com. Information contained on our website is not incorporated by reference into this prospectus and you should not
consider information on our website to be part of this prospectus.
RISK FACTORS
Investing in shares of
our Common Stock involves certain risks. Before making any investment decision, you should carefully consider the risk factors
set forth below, under the caption “Risk Factors” in any applicable prospectus supplement and under the caption “Risk
Factors” in our most recent annual report on Form 10-K, as supplemented by subsequent quarterly reports on Form 10-Q, which
are incorporated by reference in this prospectus, as well as in any applicable prospectus supplement, as updated by our subsequent
filings under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
These risks could materially
affect our business, results of operation or financial condition and affect the value of our Common Stock. Additional risks and
uncertainties that are not yet identified may also materially harm our business, operating results and financial condition and
could result in a complete loss of your investment. You could lose all or part of your investment. For more information, see “Where
You Can Find More Information.”
FORWARD-LOOKING STATEMENTS
Some of the statements
contained or incorporated by reference in this prospectus may be “forward-looking statements” within the meaning of
Section 27A of the Securities Act, and Section 21E of the Exchange Act and may involve material risks, assumptions and
uncertainties. Forward-looking statements typically are identified by the use of terms such as “may,” “will,”
“should,” “believe,” “might,” “expect,” “anticipate,” “intend,”
“plan,” “estimate” and similar words, although some forward-looking statements are expressed differently.
Although we believe that
the expectations reflected in such forward-looking statements are reasonable, these statements are not guarantees of future performance
and involve certain risks and uncertainties that are difficult to predict and which may cause actual outcomes and results to differ
materially from what is expressed or forecasted in such forward-looking statements. These forward-looking statements speak only
as of the date of this prospectus. Neither we nor any of the selling stockholders undertake any obligation to update or revise
publicly any forward-looking statements, whether as a result of new information, future events or otherwise. If we do update or
correct one or more forward-looking statements, you should not conclude that we will make additional updates or corrections with
respect thereto or with respect to other forward-looking statements. A detailed discussion of risks and uncertainties that could
cause actual results and events to differ materially from our forward-looking statements is included in our periodic reports filed
with the SEC and in the “Risk Factors” section of this prospectus.
USE OF PROCEEDS
We will not receive any
proceeds from the sale of the Shares covered by this prospectus. The selling stockholders will receive all of the proceeds. However,
we will pay all costs, fees and expenses incurred in connection with the registration of the Shares covered by this prospectus.
DESCRIPTION OF CAPITAL STOCK
The following is a summary
of our capital stock and certain provisions of our articles of incorporation and bylaws. This summary does not purport to be complete
and is qualified in its entirety by the provisions of our Articles of Incorporation and Amended and Restated Bylaws and applicable
provisions of the Nevada Revised Statutes.
See “Where You Can
Find More Information” elsewhere in this prospectus for information on where you can obtain copies of our Articles of Incorporation
and Amended and Restated Bylaws, which have been filed with and are publicly available from the SEC.
Our authorized capital
stock consists of 10,000,000 shares of Common Stock, par value $0.001.
DESCRIPTION OF COMMON STOCK
As of November 21, 2016,
there were 8,310,198 shares of our Common Stock outstanding, held by approximately 2,728 stockholders of record. Our Common Stock
is currently traded on the NASDAQ Capital Market under the symbol “CREG.”
The holders of our Common
Stock are entitled to one vote per share on all matters submitted to a vote of our stockholders and do not have cumulative voting
rights. Accordingly, holders of a majority of the shares of Common Stock entitled to vote in any election of directors may elect
all of the directors standing for election. The holders of outstanding shares of Common Stock are entitled to receive ratably any
dividends declared by our board of directors out of assets legally available. Upon our liquidation, dissolution or winding up,
holders of our Common Stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation
preference of any then outstanding shares of preferred stock. Holders of Common Stock have no preemptive or conversion rights or
other subscription rights. There are no redemption or sinking fund provisions applicable to the Common Stock.
All issued and outstanding
shares of our Common Stock are fully paid and nonassessable. The Shares that may be offered for resale, from time to time, under
this prospectus will be fully paid and nonassessable.
Nevada Anti-Takeover Provisions
We are subject to the Nevada
anti-takeover laws regulating corporate takeovers. With certain exceptions, this law provides that specified persons who, together
with affiliates and associates, own, or within three years did own, 10% or more of the outstanding voting stock of a corporation
cannot engage in specified business combinations with the corporation for a period of three years after the date on which the person
became an interested stockholder. The law defines the term “business combination” to encompass a wide variety of transactions
with or caused by an interested stockholder, including mergers, asset sales and other transactions in which the interested stockholder
receives or could receive a benefit on other than a pro rata basis with other stockholders. This provision has an anti-takeover
effect for transactions not approved in advance by our board of directors, including discouraging takeover attempts that might
result in a premium over the market price for the shares of our common stock.
Nevada law also provides
that, in certain circumstances, a stockholder who acquires a controlling interest in a corporation, defined in the statute as an
interest in excess of a 1/5, 1/3 or 1/2 interest, has no voting rights in the shares acquired that caused the stockholder to exceed
any such threshold, unless the corporation’s other stockholders, by majority vote, grant voting rights to such shares. Presently,
we have not opted out of this provision. This law only applies to corporations that do business within the State of Nevada and
have a significant number of stockholders with addresses in the State of Nevada.
SELLING STOCKHOLDERS
We have agreed to register
the Shares (2,286,981 shares of our Common Stock) that are beneficially owned by the selling stockholders identified below.
On June 28, 2014, our wholly-owned
subsidiary, Xi’an TCH, entered into an Asset Transfer Agreement (the “Transfer Agreement”) with Qitaihe City
Boli Yida Coal Selection Co., Ltd. (“Yida”), a limited liability company incorporated in PRC. The Transfer Agreement
provided for the transfer and sale, from Yida to Xi’an TCH, of a set of 5 MW coke oven gas power generation stations that
has been converted from a 15 MW coal gangue power generation station (the “Transferred Asset”). As consideration for
the Transferred Asset, Xi’an TCH agreed to pay RMB 115,000,000 (approximately $18.69 million) in the form of 823,378 shares
of our Common Stock, based on the average closing price quoted on the NASDAQ Global Market for the 10 trading days prior to the
closing date of the Transfer Agreement. Such shares were issued to Superb Growth Holdings Limited, a limited liability company
incorporated in the Republic of Seychelles (“Superb Growth”), on August 20, 2014 pursuant to Regulation S of the Securities
Act. The Transfer Agreement contained customary representations, warranties and covenants, including, but not limited to, the following:
(i) due authority and authorization to enter into the Transfer Agreement; (ii) each party obtaining all necessary consents and
approvals; (iii) Yida’s confirmation of full ownership of the transferred assets and non-infringement of intellectual property
rights; and (iv) satisfactory transformation of the Transferred Asset. Breaches of the representations and warranties were, and
continue to be, subject to customary indemnification provisions. Under the Transfer Agreement, we agreed to register the shares
issued to Superb Growth thereunder.
The description contained
herein of the terms of the Transfer Agreement does not purport to be complete and is qualified in its entirety by reference to
the Transfer Agreement, a copy of which was attached as Exhibit 10.1 to our Form 8-K, filed June 28, 2014, and incorporated by
reference herein.
Of those 823,378 shares,
Superb Growth transferred 340,000 shares and 290,000 shares to Ms. Rong Feng and Mr. Jihua Wang, respectively, in a series of private
transactions exempt from registration under the Securities Act, each dated May 18, 2016. In entering into these transactions and
transferring the shares, the parties relied upon Regulation S of the Securities Act; Ms. Feng and Mr. Wang acquired the shares
for investment purposes.
On August 27, 2014, we
entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with Mr. Guohua Ku, a Chinese citizen, major
stockholder, Chairman and Chief Executive Officer of the Company. Pursuant to the Share Purchase Agreement, we sold and issued
to Mr. Ku 1,382,908 shares of our Common Stock at a purchase price equal to the average closing price quoted on the NASDAQ Global
Market for the 15 trading days prior to the effective date of the Share Purchase Agreement. Under the Share Purchase Agreement,
we agreed to register the shares issued to Mr. Ku thereunder. Such shares were issued to Mr. Ku pursuant to Regulation S of the
Securities Act. Mr. Ku has served as the Company’s Chief Executive Officer and a member of the Company’s board of directors
since December 10, 2008.
The description contained
herein of the terms of the Share Purchase Agreement does not purport to be complete and is qualified in its entirety by reference
to the Share Purchase Agreement, a copy of which was attached as Exhibit 10.1 to our Form 8-K, filed August 27, 2014, and incorporated
by reference herein.
Mr. Ku transferred 30,000
shares and 40,695 shares to Mr. Xiaogang Zhu and Mr. Jihua Wang, respectively, in a series of private transactions each dated May
4, 2015. In entering into the transactions and transferring the shares, the parties relied upon Regulation S of the Securities
Act; Messrs. Zhu and Wang acquired the shares as gifts with the intent to hold such shares for investment purposes.
On January 19, 2015, Ms.
Rong Feng purchased 10,000 shares of Common Stock in a private transaction exempt from registration under the Securities Act pursuant
to a Share Transfer Agreement by and between Ms. Feng and Jiao Wang, all of which shares are covered by this Registration Statement.
On November 8, 2016, Ms.
Wei Wang received 20,000 shares of Common Stock in a private transaction exemption from registration under the Securities Act pursuant
to a Share Transfer Agreement by and between Ms. Wei and Mr. Ku, all of which shares are covered by this Registration Statement.
We are registering the
Shares covered by this prospectus in order to permit the selling stockholders to offer the Shares for resale from time to time.
All share amounts given in the above descriptions have been adjusted to reflect a 1-for-10 reverse stock split of the Company’s
authorized shares of Common Stock completed on May 24, 2016.
Mr. Xiaogang Zhu
was VP of Accounting of the Company from August 2007 to May 2014.
Other than as described
above, the selling stockholders does not have, and within the past three years has not had, any position, office or material relationship
with us or any of our predecessors or affiliates.
The following table sets
forth the names of the selling stockholders, the number of shares of our Common Stock beneficially owned by such stockholders as
of November 21, 2016, and the number of shares that may be offered for resale by the selling stockholders from time to time as
described in the “Plan of Distribution.” The Shares may also be sold by donees, pledgees, and other transferees or
successors in interest of the selling stockholders.
The selling stockholders may decide to sell all, some, or none of the Shares. We currently have no agreements, arrangements or
understandings with the any of the selling stockholders regarding the sale of the Shares covered by this prospectus. We cannot
provide you with any estimate of the number of shares of our Common Stock that the selling stockholders will hold in the future.
For purposes of this table,
beneficial ownership is determined in accordance with the Rule 13d-3 promulgated under the Exchange Act, and includes voting power
and investment power with respect to such shares. In calculating the percentage ownership or percent of equity vote for a given
individual or group, the number of shares of common stock outstanding for that individual or group includes unissued shares subject
to options, warrants, rights or conversion privileges exercisable within sixty days held by such individual or group, but are not
deemed outstanding by any other person or group.
The applicable percentage
of ownership is based on an aggregate of 8,310,198 shares of our Common Stock issued and outstanding on November 21, 2016.
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Name of selling stockholders
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Number of
Shares of Common Stock Owned Before the Offering
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Percent of
Common Stock Owned Before the Offering
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Shares
Available for Sale Under This Prospectus
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Number of
Shares of Common Stock To Be Owned After the Termination of the Offering
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Percent of
Common Stock to be Owned After Completion of the Offering
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Superb Growth Holdings Limited (2)
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173,378
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2.09
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%
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173,378
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-
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(1)
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-
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(1)
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Guohua Ku (3)
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3,162,908
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38.06
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%
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1,382,908
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-
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(1)
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-
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(1)
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Rong Feng (4)
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10,000
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*
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%
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10,000
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-
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(1)
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-
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(1)
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Feng Rong (4)
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340,000
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4.10
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%
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340,000
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-
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(1)
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-
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(1)
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Jihua Wang (5)
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40,695
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*
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%
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40,695
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-
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(1)
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-
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(1)
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Wang Jihua (5)
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290,000
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3.49
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%
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290,000
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-
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(1)
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-
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(1)
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Xiaogang Zhu (6)
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30,000
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*
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%
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30,000
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-
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(1)
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-
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(1)
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Wei Wang (7)
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20,000
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*
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%
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20,000
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-
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(1)
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-
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(1)
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* less than 1.0%
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(1)
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Because (a) the selling stockholders may offer all or some of the Shares covered by this prospectus, (b) the offering of the Shares is not being underwritten on a firm commitment basis, and (c) the selling stockholders could purchase additional shares of our Common Stock from time to time, no estimate can be given as to the number of shares or percent of our Common Stock that will be held by the selling stockholders upon termination of the offering.
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(2)
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The address of Superb Growth Holdings Limited is Room 1301 #5-3, Zuo An Pu Yuan, Zuo An Men Nei Street, Chong Wen District, Beijing, China.
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(3)
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The address of Guohua Ku is 12/F, Tower A, Chang’an International Building, 88 Nan Guan Zheng Jie, Beilin District, Xi’an, China.
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(4)
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The address of Rong Feng is #607 No. 79 Xingqing Road, Beilin District, Xi’an, China. The names “Rong Feng” and “Feng Rong” are both used to describe the same individual.
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(5)
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The address of Jihua Wang is No. 12 Lintong Huaqing Road, Lintong District, Xi’an, China. The names “Jihua Wang” and “Wang Jihua” are both used to describe the same individual.
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(6)
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The address of Xiaogang Zhu is High-rise Building, No. 1, 3538 Community, Chang’an Road, Beilin District, Xi’an, China.
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(7)
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The address of Wei Wang is No. 9 Building, Administrative Committee, Feng Xi Xin Cheng, Xixian New District, Shaanxi, China.
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PLAN OF DISTRIBUTION
The Shares covered by
this prospectus may be offered and sold from time to time by the selling stockholders. We will not receive any of the
proceeds from the sale by the selling stockholders of the Shares. We will bear all fees and expenses incident to our
obligation to register the Shares.
The term “selling
stockholders” includes pledgees, donees, transferees or other successors in interest selling shares received after the date
of this prospectus from the selling stockholders as a pledge, gift, partnership distribution or other non-sale related transfer. The
number of shares beneficially owned by the selling stockholders will decrease as and when they effect any such transfers. The
plan of distribution for the Shares sold hereunder will otherwise remain unchanged, except that the transferees, pledgees, donees
or other successors will be selling stockholders hereunder. To the extent required, we may amend and supplement this
prospectus from time to time to describe a specific plan of distribution. The selling stockholders will act independently
of us in making decisions with respect to the timing, manner and size of each sale. Once sold under this registration statement,
of which this prospectus forms a part, the Shares will be freely tradable in the hands of persons other than our affiliates.
The selling stockholders
may make these sales at prices and under terms then prevailing or at prices related to the then current market price. The
selling stockholders may also make sales in negotiated transactions. The selling stockholders may offer their shares
from time to time pursuant to one or more of the following methods:
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·
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ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
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·
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one or more block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
|
|
|
·
|
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
|
|
|
·
|
an exchange distribution in accordance with the rules of the applicable exchange;
|
|
|
·
|
public or privately negotiated transactions;
|
|
|
·
|
on the NASDAQ Capital Market (or through the facilities of any national securities exchange or U.S. inter-dealer quotation system of a registered national securities association, on which the shares are then listed, admitted to unlisted trading privileges or included for quotation);
|
|
|
·
|
through underwriters, brokers or dealers (who may act as agents or principals) or directly to one or more purchasers;
|
|
|
·
|
a combination of any such methods of sale; and
|
|
|
·
|
any other method permitted pursuant to applicable law.
|
In connection with distributions
of the shares or otherwise, the selling stockholders may:
|
|
·
|
enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares in the course of hedging the positions they assume;
|
|
|
·
|
sell the shares short after the effective date of the registration statement of which this prospectus forms a part and redeliver the shares to close out such short positions;
|
|
|
·
|
enter into option or other transactions with broker-dealers or other financial institutions which require the delivery to them of shares offered by this prospectus, which they may in turn resell; and
|
|
|
·
|
pledge shares to a broker-dealer or other financial institution, which, upon a default, they may in turn resell.
|
In addition to the foregoing
methods, the selling stockholders may offer the Shares from time to time in transactions involving principals or brokers not otherwise
contemplated above, in a combination of such methods or described above or any other lawful methods. The selling stockholders
may also transfer, donate or assign the Shares to lenders, family members and others and each of such persons will be deemed to
be a selling stockholders for purposes of this prospectus. The selling stockholders or their successors in interest
may from time to time pledge or grant a security interest in some or all of the Shares, and if such selling stockholders default
in the performance of their secured obligations, the pledgees or secured parties may offer and sell the Shares from time to time
under this prospectus;
provided however
in the event of a pledge or then default on a secured obligation by the selling
stockholders, in order for the Shares to be sold under this registration statement, of which this prospectus forms a part of, unless
permitted by law, we must distribute a prospectus supplement and/or amendment to this registration statement amending the list
of selling stockholders to include the pledgee, secured party or other successors in interest of the selling stockholders under
this prospectus.
The selling stockholders
may also sell their shares pursuant to Rule 144 under the Securities Act, provided the selling stockholders meet the criteria and
conform to the requirements of such rule.
The selling stockholders
may effect such transactions directly or indirectly through underwriters, broker-dealers or agents acting on their behalf. Broker-dealers
or agents may receive commissions, discounts or concessions from the selling stockholders, in amounts to be negotiated immediately
prior to the sale (which compensation as to a particular broker-dealer might be in excess of customary commissions for routine
market transactions). If the Shares are sold through underwriters or broker-dealers, the selling stockholders will be responsible
for underwriting discounts or commissions or agent's commissions. Neither we, nor the selling stockholders, can presently estimate
the amount of that compensation. If any of the selling stockholders notifies us that a material arrangement has been entered into
with a broker-dealer for the sale of the Shares through a block trade, special offering, exchange, distribution or secondary distribution
or a purchase by a broker or dealer, we will file a prospectus supplement, if required by Rule 424 under the Securities Act,
setting forth: (i) the name of each of the selling stockholder and the participating broker-dealers; (ii) the number of shares
involved; (iii) the price at which the shares were sold; (iv) the commissions paid or discounts or concessions allowed to the broker-dealers,
where applicable; and (v) a statement to the effect that the broker-dealers did not conduct any investigation to verify the information
set out or incorporated by reference in this prospectus; and any other fact material to the transaction.
The selling stockholders
and any other person participating in a distribution of the shares covered by this prospectus will be subject to applicable provisions
of the Exchange Act, including, without limitation, Regulation M, which may limit the timing of purchases and sales of any
of the Shares by the selling stockholders and any other such person. Furthermore, under Regulation M, any person engaged in
the distribution of the shares may not simultaneously engage in market-making activities with respect to the particular shares
being distributed for certain periods prior to the commencement of, or during, that distribution. All of the above may affect the
marketability of the shares and the ability of any person or entity to engage in market-making activities with respect to the shares.
The Company has advised the selling stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply.
In offering the shares
covered by this prospectus, the selling stockholders, and any broker-dealers and any other participating broker-dealers who execute
sales for the selling stockholders, may be deemed to be “underwriters” within the meaning of the Securities Act in
connection with these sales. Any profits realized by the selling stockholders and the compensation of such broker-dealers
may be deemed to be underwriting discounts and commissions. We are not aware of any of the selling stockholders entering into any
arrangements with any underwriters or broker-dealers regarding the sale of the Shares.
We have agreed to indemnify
the selling stockholders against certain liabilities arising in connection with this offering; provided, however, the Company shall
not indemnify the selling stockholders against liabilities arising out of, or based upon, any untrue statement or omission furnished
to us by the selling stockholders.
LEGAL MATTERS
The validity of the Shares
offered in this prospectus will be passed upon for us by Garvey Schubert Barer.
EXPERTS
The consolidated financial
statements of China Recycling Energy Corporation and its subsidiaries as of December 31, 2015 and 2014, and for each of the years
in the two-year period ended December 31, 2015, have been incorporated by reference in the registration statement in reliance on
the report of MJF and Associates, APC, an independent registered public accounting firm, and upon the authority of said firm as
experts in accounting and auditing.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to “incorporate
by reference” the information we file with them into this prospectus. This means that we can disclose important information
about us and our financial condition to you by referring you to another document filed separately with the SEC instead of having
to repeat the information in this prospectus. The information incorporated by reference is considered to be part of this prospectus
and later information that we file with the SEC will automatically update and supersede this information. This prospectus incorporates
by reference any future filings made with the SEC under Sections 13(a), 13(c), 14, or 15(d) of the Exchange Act, between the date
of the initial registration statement and prior to effectiveness of the registration statement and the documents listed below that
we have previously filed with the SEC:
|
|
·
|
|
our Annual Report on Form 10-K for the year ended December 31, 2015;
|
|
|
|
|
|
|
|
·
|
|
our Quarterly Reports on Form 10-Q for the quarters ended September 30, 2015; March 31, 2016; June 30, 2016, and September 30, 2016;
|
|
|
|
|
|
|
|
·
|
|
the portions of our Definitive Proxy Statement on Schedule 14A filed on April 29, 2016 that were incorporated by reference in our Annual Report on Form 10-K for the year ended December 31, 2015;
|
|
|
|
|
|
|
|
·
|
|
our Current Reports on Form 8-K filed on August 6, 2015, November 20, 2015, December 21, 2015, March 18, 2016, May 31, 2016, June 15, 2016, June 30, 2016 and September 30, 2016; and
|
|
|
·
|
|
the description of our Common Stock contained in the Registration Statement on Form SB-2, filed with the Commission on July 29, 2005, and any amendment or report filed for the purpose of updating such description.
|
We also incorporate by
reference all documents that we file with the SEC on or after the effective time of this prospectus pursuant to Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act and prior to the sale of all shares of Common Stock registered hereunder or the termination
of the registration statement. Nothing in this prospectus shall be deemed to incorporate information furnished but not filed with
the SEC.
Any statement contained
in this prospectus or in a document incorporated or deemed to be incorporated by reference in this prospectus shall be deemed to
be modified or superseded for purposes of this prospectus to the extent that a statement contained herein or in the applicable
prospectus supplement or in any other subsequently filed document which also is or is deemed to be incorporated by reference modifies
or supersedes the statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded,
to constitute a part of this prospectus.
You may request a copy
of the filings incorporated herein by reference, including exhibits to such documents that are specifically incorporated by reference,
at no cost, by writing or calling us at the following address or telephone number:
China Recycling Energy Corporation
12/F, Tower A
Chang An International Building
No. 88 Nan Guan Zheng Jie,
Xi’an City, Shaanxi Province, China
Attn: Adeline Gu, Chief Financial Officer
and Corporate Secretary
+86-29-8769-1097
Statements contained in
this prospectus as to the contents of any contract or other documents are not necessarily complete, and in each instance you are
referred to the copy of the contract or other document filed as an exhibit to the registration statement or incorporated herein,
each such statement being qualified in all respects by such reference and the exhibits and schedules thereto.
WHERE YOU CAN FIND MORE INFORMATION
This prospectus is part
of a registration statement on Form S-3 that we filed with the SEC registering the Shares that may be offered and sold hereunder.
The registration statement, including exhibits thereto, contains additional relevant information about us and the Shares that,
as permitted by the rules and regulations of the SEC, we have not included in this prospectus. A copy of the registration statement
can be obtained at the address set forth below or at the SEC’s website as noted below. You should read the registration statement,
including any applicable prospectus supplement, for further information about us and the Shares.
We file annual, quarterly
and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the
Internet at the SEC's website at http:/www.sec.gov. You may also read and copy any document we file at the SEC's public reference
room, 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the operation
of the public reference room. Because our Common Stock is listed on the NASDAQ Capital Market, you may also inspect reports, proxy
statements and other information at the offices of the NASDAQ Capital Market.
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
|
Item 14.
|
Other Expenses of Issuance and Distribution.
|
The following table sets
forth all expenses payable by us in connection with the offering of the Shares being registered hereby. All amounts shown are estimates
except the SEC registration fee.
|
SEC registration fee
|
|
$
|
445
|
|
|
|
|
|
|
|
|
Legal fees and expenses
|
|
$
|
15,000
|
|
|
|
|
|
|
|
|
Accounting fees and expenses
|
|
$
|
2,500
|
|
|
|
|
|
|
|
|
Printing and miscellaneous expenses
|
|
$
|
300
|
|
|
|
|
|
|
|
|
Total expenses
|
|
$
|
18,245
|
|
|
Item 15.
|
Indemnification of Directors and Officers.
|
With certain exceptions
involving ouster, securities violations, commodities violations, receiving deposits in insolvent banks with knowledge of insolvency,
and recovery by an insurer of profits realized from transactions made with unfair use of information, under Section 78.138 of the
Nevada Revised Statutes, our directors and officers will not be individually liable to the Company, its stockholders or creditors
for any damages as a result of any act or failure to act in their capacity as a director or officer unless it is proven that the
act or failure to act breached fiduciary duties as a director or officer and such breach involved intentional misconduct, fraud,
or a knowing violation of law.
Pursuant to our Amended
and Restated Bylaws, we are required to indemnify and hold harmless, to the fullest extent permitted by Nevada law, each officer
and director of the Company who is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the fact that such person is or was a director or officer
of ours or, while a director or officer of ours, is or was serving at our request as a director, officer, employee or agent of
another corporation or of a partnership, joint venture, trust, enterprise or nonprofit entity, against all expenses, liabilities
and losses (including without limitation attorneys’ fees, judgments, fines, taxes, penalties, and amounts paid or to be paid
in settlement) reasonably incurred or suffered by such person. Under Nevada law, any such indemnification is only available if
such person is not liable under Section 78.138 of the Nevada Revised Statutes, as described above, or such person acted in good
faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with
respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The indemnification
provided by our Amended and Restated Bylaws is not exclusive of any other rights to which those indemnified may be entitled under
any statute, provision of our Articles of Incorporation, agreement, vote of our stockholders or directors, or otherwise and shall
continue as to a person who has ceased to be a director or officer and shall inure to the benefit of the heirs, executors, and
administrators of such person.
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant
pursuant to our Bylaws, Articles of Incorporation, the Nevada Revised Statutes, or otherwise, the registrant has been advised that
in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will
be governed by the final adjudication of such issue.
We are entitled to purchase
insurance on behalf of our officers and directors and we are required to do so pursuant agreements between us and each of our directors.
|
Item 16.
|
Exhibits and Financial Schedule
|
See the Exhibit Index
attached to this Registration Statement and incorporated herein by reference.
The undersigned registrant hereby undertakes:
(1) To file, during any
period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) to include
any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended (the “Securities Act of 1933”);
(ii) to reflect
in the prospectus any facts or events arising after the effective date of this registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this
registration statement; and
(iii) to include
any material information with respect to the plan of distribution not previously disclosed in this Registration Statement or any
material change to such information in this registration statement;
provided, however
, that paragraphs (1)(i),
(1)(ii) and (1)(iii) do not apply if the information required to be included in a post-effective amendment by those paragraphs
is contained in periodic reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 or Section 15(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are incorporated by reference in this
registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of this registration
statement.
(2) That, for the purposes
of determining any liability under the Securities Act of 1933, each post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at the time shall be deemed to be the
initial
bona fide
offering thereof.
(3) To remove from registration
by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4) That, for the purpose
of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part
of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses
filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first
used after effectiveness;
provided, however
, that no statement made in a registration statement or prospectus that is part
of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement
or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such
first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration
statement or made in any such document immediately prior to such date of first use.
The Registrant hereby
undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant’s
annual report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit
plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in this registration
statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial
bona fide
offering thereof.
Insofar as indemnification
for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the indemnification provisions described herein, or otherwise, the Registrant has been advised that in the
opinion of the SEC such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant
of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities
Act of 1933 and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in Xi’an China, on November 29, 2016.
|
|
CHINA RECYCLING ENERGY CORPORATION
|
|
|
|
|
|
|
By:
|
/s/ Guohua Ku
|
|
|
|
Guohua Ku
|
|
|
|
Chairma of the Board of Directors
and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
SIGNATURES AND POWER OF ATTORNEY
Each person whose signature
appears below constitutes and appoints Guohua Ku and Adeline Gu as his/her true and lawful attorneys-in-fact and agents, each acting
alone, with full power of substitution and resubstitution, for him/her and in his/her name, place and stead, in any and all capacities,
to sign any and all amendments (including post-effective amendments) to this registration statement on Form S-3 and any subsequent
registration statement the Registrant may hereafter file with the Securities and Exchange Commission pursuant to Rule 462 under
the Securities Act to register additional securities in connection with this registration statement, and to file this registration
statement, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act
and thing requisite and necessary to be done in order to effectuate the same as fully, to all intents and purposes, as he or she
might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may lawfully
do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/ Guohua Ku
|
|
Chairman of the Board of Directors
|
|
|
|
Gouhua Ku
|
|
and Chief Executive Officer (Principal Executive Officer)
|
|
November 29, 2016
|
|
|
|
|
|
|
|
/s/ Binfeng (Adeline) Gu
|
|
Chief Financial Officer
|
|
|
|
Binfeng (Adeline) Gu
|
|
(Principal Financial Officer), Principal Accounting Officer and Secretary
|
|
November 29, 2016
|
|
|
|
|
|
|
|
/s/ Yulong Ding
|
|
Director
|
|
|
|
Yulong Ding
|
|
|
|
November 29, 2016
|
|
|
|
|
|
|
|
/s/ Geyun Wang
|
|
Director, Vice President
|
|
|
|
Geyun Wang
|
|
|
|
November 29, 2016
|
|
|
|
|
|
|
|
/s/ Cangsang Huang
|
|
Director
|
|
|
|
Cangsang Huang
|
|
|
|
November 29, 2016
|
|
|
|
|
|
|
|
/s/ LuLu Sun
|
|
Director
|
|
|
|
LuLu Sun
|
|
|
|
November 29, 2016
|
EXHIBIT INDEX
|
Exhibit
Number
|
|
Description
|
|
|
|
|
|
3.1
|
|
Articles of Incorporation (filed as Exhibit 3.05 to the Company’ s Form 10-KSB for the fiscal year ended December 31, 2001).
|
|
|
|
|
|
3.2
|
|
Fourth Amended and Restated Bylaws (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K dated November 25, 2009).
|
|
|
|
|
|
3.3
|
|
Certificate of Change (filed as Exhibit 3.6 to the Company’s Current Report on Form 8-K dated May 31, 2016).
|
|
|
|
|
|
4.1
|
|
Common Stock Specimen (filed as Exhibit 4.1 to the Company’s Registration Statement on Form SB-2 dated November 12, 2004; 1934 Act File No. 333-120431).
|
|
|
|
|
|
5.1
|
|
Opinion of Garvey Schubert Barer.**
|
|
|
|
|
|
10.1
|
|
Asset Transfer Agreement, dated June 28, 2014, by and between Xi’an TCH Energy Technology Co., Ltd. and Qitaihe City Boli Yida Coal Selection Co., Ltd. (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed July 3, 2014.
|
|
|
|
|
|
10.2
|
|
Share Purchase Agreement, dated August 27, 2014, by and between the Company and Mr. Guohua Ku (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed August 27, 2014).
|
|
|
|
|
|
23.1
|
|
Consent of Independent Registered Public Accounting Firm.**
|
|
|
|
|
|
23.2
|
|
Consent of Garvey Schubert Barer (included in legal opinion filed as Exhibit 5.1).
|
|
|
|
|
|
24.1
|
|
Powers of Attorney (included on signature page).
|
** Filed herewith
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