China New Energy Ltd Contract Wins in China (6263G)
May 31 2017 - 1:00AM
UK Regulatory
TIDMCNEL
RNS Number : 6263G
China New Energy Ltd
31 May 2017
31 May 2017
China New Energy Limited
("CNE" or "the Company")
Contract Wins in China
The Board of CNE (AIM:CNEL), the AIM quoted engineering and
technology solutions provider to the bioenergy sector, is pleased
to provide an update regarding a number of recent contract wins
with customers in north and west China to expand their existing
capacity and to modernise their ethanol production lines.
Since the start of 2017, the Company has won a total of seven
contracts in the north and west of China to design, supply and
install ethanol processing equipment and to commission the upgraded
plants. Four contracts represent a significant increase in activity
with existing customers which have, between them, a total new
production capacity of 529,000 tonnes of ethanol per year. The
increase in ethanol production capability will primarily be for use
in the food industry. The Company attributes the increase in its
activity to the recent change to Chinese legislation that
restricted the use of food products, particularly corn, for the
production of ethanol and to its increased marketing efforts in
north China.
The total value of the seven contracts to CNE is, in aggregate,
approximately RMB 115 million, (approximately GBP GBP12.8 m) which
will be received over the terms of the contracts in accordance with
agreed milestones. A number of the contracts have commenced with
initial milestone payments of approximately RMB24 million (GBP2.7
million) having been received. All of the contracts are expected to
commence in Q2 2017 and be commissioned in 2018.
Mr Yu, Chairman of CNE commented, "We are delighted to win these
contracts with Yinshan Hongzhan Industry Co., Ltd, Inner Mongolia
Liniu Biochemical Co., Ltd, Jilin Boda Biochemical Co. Ltd and
Heilongjiang Weikete Biotechnology Co., Ltd. These confirmed
orders, when added to our previously announced contracts with COFCO
and Supercare Group comprise a significant order book for 2017 into
2018 and, on the current timetable, we anticipate being able to
recognise much of that revenue this year. The board is very pleased
that our decision to intensify the marketing of our products and
services to the north Chinese markets following the modification of
Chinese legislation to relax restrictions on the use of corn as a
feedstock for ethanol production."
The information contained within this announcement constitutes
inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014.
For further information, please visit www.chinanewenergy.co.uk
or contact:
China New Energy Limited
Nick Brooks Tel: +44 7920 060218
nick.brooks@hotmail.co.uk
Richard Bennett Tel: +44 7966 388 374
rbennett@zkty.com.cn
Ivy Xu xuhj@zkty.com.cn
Tel: +86 20 8705 9371
Cairn Financial Advisers LLP (Nomad)
Jo Turner / Sandy Jamieson Tel: +44 20 7213 0880
Daniel Stewart and Company (Broker)
David Lawman Tel: +44 20 7776 6550
This information is provided by RNS
The company news service from the London Stock Exchange
END
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