China Energy Recovery Reports Releasing Escrowed Shares Back to Founding Management As a Result of Outperforming Financial Targe
April 08 2009 - 7:00AM
PR Newswire (US)
SHANGHAI, April 8 /PRNewswire-Asia/ -- China Energy Recovery, Inc.
(OTC:CGYV) (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
released 1,779,180 shares of common stock which have been issued
and outstanding since April 15, 2008 and were immediately deposited
into the escrow account at the closing of the Share Exchange and
the Series A Financing on April 15, 2008 back to the founding
management shareholders. These shares originally belonged to the
founding management shareholders. This share release is the result
of CER's outperforming the financial targets agreed upon between
the founding management shareholders and the investors of the
Company's Series A Financing closed on April 15, 2008. CER has well
exceeded the 2008 financial targets for annual revenue of RMB 150
million (approximately $21.6 million) and gross profit of RMB 30
million (approximately $4.3 million) with actual annual revenue of
RMB 160.8 million (approximately $23.2 million) and gross profit of
RMB 35.2 million (approximately $5.1 million). The US dollar values
are converted based on the annual average exchange rate in 2008.
CER exceeded the revenue target by 7% and the gross profit target
by 17%, respectively. The targets were set and agreed upon by the
Series A investors in January 2008. During the fiscal year ended
December 31, 2008, CER's annual revenue grew by 96%, its gross
profit increased by 138%, and its net income rose by 73%, year over
year. For more details, please refer to CER's Current Report on
Form 8-K for the matter filed with the Securities and Exchange
Commission on April 6, 2009. What is Waste Heat Energy Recovery?
Industrial facilities 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
heat energy or electricity, dramatically lowering energy costs.
Energy recovery systems are also capable of capturing harmful
pollutants that would otherwise be released into the environment.
It is estimated that if energy currently wasted by all the U.S.
industrial facilities could be recovered, it could produce power
equivalent to 20% of U.S. electricity generation capacity without
burning any additional fossil fuel, and could help many industries
to meet stringent environmental regulations. About China Energy
Recovery, Inc. CER is an international leader in designing,
manufacturing and installing waste heat energy recovery systems
which provide facilities with greater energy efficiency. The
company's primary focus is on the Chinese market. CER's 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, Korea, Vietnam and
Malaysia. CER focuses on numerous industries in which a rapid
payback on invested capital is achieved by its customers,
including: chemical, paper manufacturing, refining (including
methanol refining), etc. CER continues to invest in R&D and
plans to build China's 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's 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 CER 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
that CER 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 CER and may
not materialize, including, without limitation, the efficacy and
market acceptance of CER's products and services, CER's ability to
execute on its business plan and strategies and CER's ability to
successfully complete orders and collect revenues therefrom.
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, CER 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 CER's filings with the
Securities and Exchange Commission, including CER's Annual Report
on Form 10-K filed with the Securities and Exchange Commission on
March 30, 2009. For more information, please contact: Media Sean
Mahoney Tel: +1-310-867-0670 Email: Investor Relations Jim Blackman
Tel: +1-713-256-0369 Email: DATASOURCE: China Energy Recovery, Inc.
CONTACT: Media - Sean Mahoney at +1-310-867-0670 or ; Investor
Relations - Jim Blackman at +1-713-256-0369 or Web site:
http://www.chinaenergyrecovery.com/s/Home.asp
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