CREG: 40.3 MILLION DOLLARS RECEIVED FOR,TRANSFER,BPRT,&,WGPG,SYSTEMS,TO,DATONG TIANJIAN
DATE:
Jun 4, 2015
XI'AN, China, June 4, 2015 /PRNewswire/ -- China Recycling Energy Corp. (NASDAQ: CREG) ("CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced that Xi'an TCH Energy Technology Co., Ltd.("Xi'an TCH"), its wholly owned subsidiary, recently entered into a Recycling Economy System Repurchase Agreement ("Repurchase Agreement") with Datong Coal Tianjian Iron & Steel Co., Ltd. ("Datong Tianjian"). Under the repurchase agreement, Datong Tianjian will repurchase the two Blast Furnace Power Recovery Turbine ("BPRT") systems and one newly completed Waste Gas Power Generation ("WGPG") system from Xi'an TCH at a total repurchase price of approximately US$40.3 million (RMB250.0 million).
The two BPRT systems were completed in June 2013, which have been leased to Shanxi Datong Coal Group Steel Co., Ltd. ("Datong") that was renamed as Datong Coal Tianjian Iron & Steel Co., Ltd. after it was restructured, and the WGPG system was completed in May 2015. Due to the change of its strategic plan and business restructuring, Datong recently notified Xi'an TCH that it requested the repurchase of the BPRT and WGPG systems (the "Systems") from Xi'an TCH. After negotiations, the Company agreed to an early transfer of the systems for a price of about US$40.3 million, including about US$16.1 million (RMB100.0 million) for the two BPRT systems and about US$24.2 million (RMB150.0 million) for the WGPG system.
Mr. Guohua Ku, Chairman and CEO of CREG commented, "The WGPG system is one of two projects we said would be completed in the second quarter of 2015 and we are pleased to have completed it as scheduled. The second project remains on track for completion before June 30. Taking into consideration the time value of money and the opportunity to deploy the cash to fund some of the numerous projects in our pipeline, we believe that the early termination fee more than compensates the Company for the loss of future income. The market demand for energy recycling remains strong in China given highly supportive government policies. We continue to invest in our R&D efforts to explore new solutions to be used in more energy intensive industries. The additional cash from the early transfer will further strengthen our financial position and spur a new round of business development."
source:
www.marketwatch.com/story/china-recycling-energy-corporation-transfers-bprt-and-wgpg-systems-to-datong-tianjian-for-us403-million-2015-06-04
