China Energy Savings (NASDAQ:CESV)
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China Energy Savings Announces 3rd Quarter Preliminary Financial
Results For Its Subsidiary
Quarterly Profits Reach $7.35 Million
HONG KONG, July 12 /Xinhua-PRNewswire/ -- China Energy Savings Technology,
Inc., (NASDAQ:CESV) today announced the preliminary 3rd Quarter Revenue figure
(unaudited) of its subsidiary, Starway Management Limited ('Starway') for the
quarter ended June 30, 2005 is approximately $12.17 million. Net Income in the
Quarter reached approximately $7.35 million and the Earnings Per Share for the
3rd Quarter reached $0.30, which is a record high. Final figures are subject to
the filing of Form 10QSB.
As China heads into the summer peak energy season, the company's revenue was up
8% versus last quarter, while net income rose an impressive 14% compared to
last quarter. The Company expects it energy savings project to bring an annual
profit of at least $27 million for the year 2005 (October 1, 2004 to September
30, 2005) or Earnings Per Share of over $1.10. PE ratio at the time of this
press release is 7.46x.
'With the heat of summer upon us, and the demand for electricity growing, we
continue to strongly promote energy conservation not only in China, but
worldwide,' said Mr. Sun Li, Chairman and CEO of China Energy Savings
Technology.
Last week China's Prime Minister Wen Jiabao and China's State Council appealed
to the Chinese public by calling for a drive 'to build a resources- saving
society' by focusing on conservation and renewable resources.
Wen's Monday appeal was followed by a blueprint for a comprehensive plan that
would make greater efforts to conserve energy across the entire economy, from
heavy industry to farms to homes.
'Changing people's notion of energy saving in their daily life is very
important as the first step in promoting a resources-saving society," said Yang
Chunping, director of the National Development and Reform Commission's
Management Research Centre. Mr Yang stressed that the government's aim was to
reduce energy consumption, promote energy conservation and boost sustainable
energy development.
'Our quarterly revenue and profit figures show that we're not only growing as
a company, but as a country our efforts to conserve energy are starting to
show. As a country we have a long road ahead. As a company we'll continue to
be there every step of the way, promoting conservation of the resources we
currently have to carry us into a prosperous future,' concluded Mr. Sun.
About China Energy Savings Technology:
China Energy Savings Technology, Inc., through its subsidiary, Starway
Management Limited which in turn holds 100% interest of its energy savings
subsidiary in China, engages in the development, manufacture, sale, and
distribution of energy-saving products for use in commercial and industrial
settings in the People's Republic of China. According to test reports by
various PRC authorities including the National Center of Supervision &
Inspection on Electric Light Source Quality (Shanghai) issued in September
2002, Shenzhen Academy of Metrology & Quality Inspection issued in December
2002 and approved by the State Quality Supervision Inspection Department, the
energy saving products of Starway's subsidiaries may provide energy saving
rates ranging from approximately 25% to 45%. The energy saving projects
conducted by Starway's subsidiaries mostly relate to public or street lighting
systems, government administration units, shopping malls, supermarkets,
restaurants, factories and oil fields, etc. There are small and large-scaled
projects: the small-scaled projects relate to restaurants, shops, small
arcades, offices and households through the sale of equipment, and the large-
scaled projects relate to large shopping malls, supermarkets, factories and
public bodies through the provision and installation of equipment over a term
usually extended for years. With the world's energy crisis as the backdrop, and
global oil prices breaking record highs, China's own crisis is growing not only
in size, but in concern as well. Coal prices and energy consumption in China
are also at all-time highs. For these reasons, the company's products are
widely used and highly recommended in China because of the huge energy market
and the excellent prospect of energy savings.
Safe Harbor Statement
As a cautionary note to investors, certain matters discussed in this press
release may be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such matters involve risks and
uncertainties that may cause actual results to differ materially, including the
following: changes in economic conditions; general competitive factors; the
Company's ability to execute its business model and strategic plans; and the
risks described from time to time in the Company's SEC filings.
For more information, please contact:
John Roskelley, President
First Global Media
Tel: +1-480-902-3110
Website: http://www.cesv-inc.com/
Email:
DATASOURCE: China Energy Savings Technology, Inc.
CONTACT: John Roskelley, of First Global Media, +1-480-902-3110,
Web site: http://www.dicjenhitech.com/
http://www.cesv-inc.com/