A-Power Energy Generation Sys (MM) (NASDAQ:APWRU)
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From Jun 2019 to Jun 2024
A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR) (NASDAQ:
APWRW) (NASDAQ: APWRU) (“A-Power”)
announced today that its acquisition candidate, Liaoning International
Construction & Engineering Group (“LICEG”),
has signed two phase 1 construction contracts with Beijing Shougang Co.,
Ltd. (SSE:000959) worth a total of $11 million. Beijing Shougang,
founded in 1919, is the fourth largest steel producer in China and is
working closely with the PRC government to relocate all of its heavy
polluting steel factories out of Beijing into neighboring provinces
prior to the Olympic Games.
Mr. Jinxiang Lu, A-Power’s Chairman and CEO,
commented, “We are looking forward to
completing the acquisition of Liaoning International Construction &
Engineering Group. The acquisition of LICEG will be a strategic addition
and extension of our design, construction, installation and project
management capabilities and will expand our business domestically while
simultaneously accelerating our entry into the international markets.
LICEG reported 2007 revenue of $93 million (unaudited) and net income of
approximately $3 million (unaudited). By grafting our processes and
control systems onto their contracts we expect to be able to bring their
profit margins up to ours over time.
“Following the acquisition of LICEG and
through its initial contracts with Beijing Shougang, we believe that we
will be the only non state-owned company involved in the relocation of
large factories from Beijing to neighboring provinces. With the upcoming
Olympic Games and the new Clean Air Act, many companies, including
Beijing Shougang, are receiving government support to close down and
relocate to areas outside of Beijing. We expect these initial contracts
to be the beginning of our co-operation with Beijing Shougang and its
massive $5 billion relocation process.”
About A-Power
A-Power Energy Generation Systems, Ltd., formerly Chardan South China
Acquisition Corp., through its PRC operating subsidiary, Liaoning GaoKe
Energy Group Co., Ltd., is the largest provider of distributed power
generation systems in China and will enter into China’s
wind energy market in 2008. The Company is also focused on developing
and commercializing additional renewable energy technologies and has
strategic relationships with both Tsinghua University and the China
Sciences Academy in Guangzhou.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 about
A-Power and GaoKe. Forward-looking statements are statements that are
not historical facts, including statements relating to the contemplated
acquisition and new contracts. Such forward-looking statements, based
upon the current beliefs and expectations of A-Power’s
and GaoKe’s management, are subject to risks
and uncertainties, which could cause actual results to differ from the
forward-looking statements. The following factors, among others, could
cause actual results to differ from those set forth in the
forward-looking statements: business conditions in China; continued
compliance with government regulations; legislation or regulatory
environments, requirements or changes adversely affecting the businesses
in which GaoKe is engaged; cessation or changes in government incentive
programs; fluctuations in customer demand; management of rapid growth
and transitions to new markets; intensity of competition from or
introduction of new and superior products by other providers of
distributed power generation and other energy generation technology;
timing, approval and market acceptance of new product introductions;
general economic conditions; geopolitical events and regulatory changes;
as well as other relevant risks detailed in A-Power’s
filings with the Securities and Exchange Commission. The information set
forth herein should be read in light of such risks. Neither A-Power nor
GaoKe assumes any obligation to update the information contained in this
press release.