China Energy Savings (NASDAQ:CESV)
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China Energy Savings Provides Energy Savings Products to 250
Residential Areas Managed By China Overseas Property Management Limited in
China
Contract Expected to Generate Revenue of approximately $24.6 million over
three years
HONG KONG, July 26 /Xinhua-PRNewswire/ -- China Energy Savings Technology, Inc.
(NASDAQ:CESV), a leading provider of energy management products in China,
announced today that its subsidiary Shenzhen Dicken Technology Development
Limited ("Dicken Technology") signed a three-year agreement, expected to
generate revenue of $24.6 million, with the Shenzhen Branch of the largest
Chinese property management company, China Overseas Property Services Limited
("China Overseas"), to provide energy savings equipment to up to 250
residential dwellings managed by the property company. The Company will begin
to receive revenue upon installation of the equipment at each location. The
initial installations will be in two luxury residential areas in Shenzhen,
namely, Dynasty Court and The Seaview. Under the agreement, China Energy will
receive 70% of the energy savings, while China Overseas will receive 30% of the
electricity savings.
China Overseas maintains extensive parking facilities at its properties. These
facilities consume electricity 24 hours a day, in order to provide adequate
lighting for drivers. Under the agreement, China Overseas is expected to reduce
its annual electrical costs at these facilities by an average of at least 25%
annually as a result of it is share of the energy savings. Due to the high
level of annual savings, the term of the contract is for three years, instead
of five to seven years as is customary for the Company's agreements. After the
initial installation is completed, the parties plan to expand the Company's
energy saving technology to China Overseas' other housing management districts
in China.
"The energy savings equipment will first be installed at these two luxury
residential areas. The average savings in these two areas is above 25% due to
the high-end technology of these products. After the 3-year life of the
contract, all of the energy savings equipment will be owned by our company. We
selected China Energy's products due to the stable performance of Dicken's
products. Our company plans to install the equipments to all our 250 housing
management districts in China, which will be implemented in several phases. Our
competitive ability can be increased in the housing management profession by
reducing the operation cost," said Mr. Dong, the Energy Savings Project Manager
of China Overseas.
Sun Li, the Chairman and CEO of China Energy Savings, said, "We see China
Overseas' usage of our products as recognition of the benefits of our
technology. China Overseas is the largest housing management company, managing
luxury residential areas in China. We are excited to begin aggressively to roll
out our products throughout their organization. We anticipate the installation
for the 250 housing residential areas in China to be completed within 10
months."
About China Energy Savings Technology
China Energy Savings Technology, Inc., through its ownership interest in
Starway Management Limited 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.
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.
Contact Information:
John Roskelley
President
First Global Media
480-902-3110
Website: http://www.cesv-inc.com/
Email:
Ed Lewis
CEOcast, Inc.
212-732-4300
Website: http://www.cesv-inc.com/
Email:
DATASOURCE: China Energy Savings Technology, Inc.
CONTACT: John Roskelley, President, First Global Media, +1-480-902-3110,
; Ed Lewis, CEOcast, Inc., +1-212-732-4300,
Web site: http://www.cesv-inc.com/