Boston, MA 03/26/2014 (wallstreetpr) – China Recycling Energy Corp. (NASDAQ:CREG) a leading industrial waste recycling company through its subsidiary Xian TCH Energy Technology Co Ltd has signed an EMC contract. The contract with Tangshan Baoliyuan Cooking Co., will see the company invest in a Coke Dry Quenching, a waste heat generating power plant.
Value and Capacity of the Project
Xian TCH has already confirmed that it will be constructing the coke dry quenching system as well as a heat power generating plant with a 25MW waste capacity, based on Baoliyuan’s industrial flow. The new project will be used for generating electricity through the recycling of waste heat during the manufacturing process.
The project has been valued at $32.6 million with Xian TCh expected to provide the funds as well as construction equipment. The operation term of the electricity plant will be 20 years and expected to generate annual net income of $7.63 million with a payback period of 4 years.
China Recycling Energy Net Income up by 359%
The commissioning of the new project comes at the back of China Recycling Energy Corp. (NASDAQ:CREG) reporting a 359% increase in annual net income in 2013. The increase in net income has been attributed to the expansion of the company’s waste to energy portfolio with the acquisition of Pucheng phase II, which is a Biomass generating system.
China Recycling Energy currently runs 15 waste to energy systems operating in full capacity with four other projects under construction. The completion of the new projects will see the company increase its income from sales, with type leases also expected to grow.
China Recycling Energy Corp. (NASDAQ:CREG) net income for the quarter clocked a high of $4.21 million after rallying by a high of 169%, compared to an income of $1.57 million reported for the same period in 2012. Full year net income on the other hand grew by 359% coming in at $15.63% compared to lows of $3.41 million reported in 2012.
China Recycling Energy Cash Balance
The massive increment in net income for the year was as a result of growth in sales and interest income on sales type leases. China Recycling Energy Corp. (NASDAQ:CREG) closed 2013 fiscal year with cash and cash equivalent of $7 million with current assets worth $15.80 million and current liabilities of $31.8 million.