China Energy Corp. (fka CHGY)

[v80alue]

Very solid quarter, bolds well for 2011. 10cents EPS.
1) Even with loss of 3 weeks of production from coal group, Coal trading made up lost revenue. Gross margin are impoving in both groups. Heat is expanding in reasonable pace.
2) Notes receivable of 11m is returned. no worry there
3) More bank loans 11m+ are obtained.
4) Aquisition is still in strategic play.
5) "red" disclosure of tax amount 3+m and interest on loans.
6) Some efforts to improve internal control.

"During Q1 2011, our management had internal training on corporate governance and U.S. GAAP reporting to our accounting department. We were also actively recruiting qualified personnel to strengthen our accounting team. "