中国循环能源公布2014年全年财务成果Interest Income on Sales-Type Leases in 2014 Up 36.8%Year-over-Year
XI'AN,
Fourth Quarter 2014 Unaudited Financial Highlights · Interest income on sales-typeleases increased 24.9% to US$6.98 million from US$5.59 million for the fourthquarter of 2013. · Total sales wereUS$0.12 million, comparedwith US$13.20 million for the fourth quarter of 2013 as no powergeneration system was completed and sold in the fourth quarter of 2014. · Net income was US$5.33million, up 26.8% from US$4.20 million for the fourthquarter of 2013. · Basic and fully dilutedearningsper share (EPS) was US$0.06, as compared with US$0.07 for the fourthquarter of 2013. Full Year 2014 Audited Financial Highlights · Interest income onsales-type leases increased 36.8% to US$26.46 million from US$19.34 million in2013. · Total sales wereUS$19.66 million, comparedwith US$63.19 million in 2013. · Net income was US$19.81million, up 26.8% fromUS$15.63 million in 2013. · Basic and fully diluted earnings per share(EPS) wasUS$0.28, as compared with US$0.29 in 2013.
Summaryof Financial Results:
Mr. Guohua Ku,Chairman and CEO of CREG commented, “We are very happy to report solid growthin our interest income on sales-type leases and net income for the fourthquarter of 2014. On a yearly basis, interest income on sales-type leases, themajor and consistent regular revenue for the Company, increased 36.8% while netincome increased 26.8%. With six projects under construction for a totalcapacity of 135MW, we look confidently to our future. We expect that a WGPGsystem to Shanxi Datong Coal Group and a CDQ system to Shandong Boxing will becompleted in the second quarter of 2015. These two systems have a totalcapacity of 40MW. Given continued favorable governmentpolicies, more stringent environmental protectionrequirements from the government and rising awareness for energy recovery inenergy-intensive industries, we continue to see strong market demand for ourwaste energy recycling systems.”
FullYear 2014 Audited Financial Results SALES. Totalsales, including sales of systems and contingent rental income, were US$19.66 million for the full year of 2014, adecrease of US$43.53 million as compared with US$63.19million in 2013, mainly due to fewer systems completed and sold in 2014.
Salesof systems for the full year of 2014 were US$18.87, as comparedwithUS$62.01 million in 2013. In2014, the Yida system wascompleted and sold, while the ShenqiuPhase II system, the Shanxi Datong Phase Isystem, the Pucheng Biomass Phase IIsystem and the Jitie system were completed and sold in 2013.For the full year of 2014, the Companyreceived contingent rental income of US$0.79 million from the usage ofelectricity in addition to the minimum lease payments, compared to US$1.18million in 2013. For sales-type leases, sales and cost of salesarerecorded at the time of the leasecommencement; in additionto systems sales revenue, CREG’s other major source ofrevenues is interest income from sales-type leases.
COST OF SALES. Cost ofsales for the full year of 2014 was US$14.59 million, as compared with US$47.85million in 2013. The decrease was mainly due to fewersystems completed and sold in 2014.
GROSS PROFITand GROSS MARGIN. Gross profitwas US$5.07 million for the full year of 2014, as compared with US$15.35 millionin 2013. Blended gross margin for the full year of 2014 was 26%, compared with24% in 2013.
INTEREST INCOME ON SALES TYPE LEASES. Interestincome on sales-type leases, which is a major andconsistent regular revenue for the Company,was US$26.46 million for the full year of 2014, anincrease of 36.8% from US$19.34 million in 2013. In 2014, interest income was derived from sixteen sales-typeleases, including the CHPG system at Jing Yang Shengwei (5yearterm, expired onJune 30, 2014), the TRT system at Zhangzhi (13 yearterm originally but terminated early on September 24, 2014), theBMPG systems at Pucheng Phase I and II (15 year and 11.9 year term,respectively), the BMPG systems at Shenqiu Phase I and II (11 year and 9.5 yearterm, respectively), five power and steam generating systems at Erdos (20 yearterm), the WHPG system at Zhong Gang(9 year term originally but terminated early on December22, 2014), the WHPG systems at Jitie (24year term), two BPRT systems at Datong (30 year term), and the WGPG system atYida (15 years). In comparison, interest income on sales-type leases wasderived from fifteen systems in 2013.
OPERATING EXPENSES. Operating expenses totaled US$3.49million for the full year of 2014, a decrease of 16.0% as compared with US$4.16million in 2013, mainly due to a US$0.59million decrease in consulting expenses compared to 2013. 运营费用。2014年全年的运营费用总额为349万美元，相比于2013年的416万美元减少了16%，这主要是因为相比于2013年有59万美元顾问费用的减少。
NON-OPERATINGINCOME (EXPENSES).Non-operatingexpenses consisted of non-sales-type lease interest income, interest expenses, bank charges and miscellaneous expenses. For the full year of 2014,net non-operating expenses were US$2.20 million, compared with US$7.83 million in 2013. Forthe full year of 2014, the Company had US$3.43million in interest expense on loans, and US$1.02million in other income consisting mainly of US$0.93million in income from the sale of a TRT system to Zhangzhi and US$1.76 million in income from the sale of a WHPG system to Zhong Gang,but offset by US$1.58 million in financialexpenses. In addition, the Company had US$0.19 million in interest income in2014. For the full year of 2013, the Company had US$6.72million in interest expense on loans, a US$1.29million one-time commission to the fund management company for initiating andcompleting a RMB460 million (US$75.0million) financing for the Company, and US$0.23million in interest income. 非营业收入（费用），非营业费用是由非销售型租赁利息收入、利息费用、银行收费、和各种杂项费用构成。2014年全年的非营业费用净值为220万美元，相比于2013年为783万美元。2014年全年，公司的贷款利息费用为343万美元，其他收入102万美元。其他收入主要是93万美元的长治TRT系统回购产生的收入和176万美元中钢WHPG系统回购产生的收入，但是被176万美元财务费用冲抵。此外，公司2014年利息收入有19万美元。而2013年，公司的贷款利息费用为672万美元，用于完成4.6亿元RMB（7500万美元）融资而支付给基金管理公司的一次性佣金129万美元，和23万美元的利息收入。
INCOME TAX EXPENSE. Income taxexpense was US$6.11 million forthe full year of 2014, decreasedby 11.3% as compared withUS$6.89 million in 2013. Thedecrease in income tax expense was mainlydue to a decrease in the consolidatedeffective income tax rate, which was 23.7% in 2014, compared with 30.3% in2013. This is mainly due to the 15% preferential income tax rate of theCompany's wholly owned subsidiary Xi'an TCH in 2014, and income tax rate ofXi'an TCH for the year of 2013 was 25%. In July 2013, Xi'an TCH wasre-approved for high-tech enterprise status and enjoyed a 15% preferentialincome tax rate effective January 1, 2013. 所得税费用。2014年全年的所得税费用为611万美元。相比于2013年689万美元减少了11.3%。减少的主要原因是因为合并的有效所得税税率由2013年30.3%减少至2014年23.7%。这主要是因为CREG全资子公司西安天可华在2014年享受15%的优惠所得税率，而西安天可华在2013年的所得税率为25%。2013年7月，西安天可华重新获得高新企业认证并享受15%优惠所得税税率。
NET INCOME. Net income for the full yearof 2014 was US$19.81 million, an increase of 26.8% ascompared with US$15.63 million in2013. This increase in net income was mainly due to the increased interestincome on sales-type leases and lower non-operating expensesin2014 compared to 2013. 净利润。2014年全年净利润为1981万美元，相比于2013年1563万美元增加了26.8%。净利润的增加主要是由于销售型租赁利息收入的增加和相比于2013年度，在2014年的非营运费用的减少。
For the full year of 2014, basic andfully diluted EPS was US$0.28, compared with US$0.29 in 2013. 2014年全年，基本每股收益和摊薄每股收益均为0.28美元。相比于2013年基本每股收益和摊薄每股收益为0.29美元。
Financial Position as of December 31, 2014 截止2014年12月31日的财务状况 As of December 31, 2014, the Company had cashand cash equivalents of US$35.87 million compared with US$7.70 million as ofDecember 31, 2013. Other current assets were US$9.70 million and currentliabilities were US$26.66 million.Total shareholders' equity was US$207.86 million comparedwith US$154.68 million as of December 31, 2013. The net tangible assetper share was US$2.50 as of December31, 2014. 截止2014年12月31日，公司的现金及现金等价物为3587万美元，相比于2013年度，公司的现金及现金等价物为770万美元。截止2014年12月31日，公司的其他流动资产为970万美元，流动负债为2666万美元。总股东权益为2.0786亿美元，而去年同期为1.5468亿美元。截止2014年12月31日，每股净资产为2.5美元。
Net Investment in Sales-Type Leases as of December31, 2014 截止2014年12月31日销售型租赁的净投资额 Thecomponents of the net investment in sales-type leasesas of December 31, 2014 and December 31, 2013are as follows: 截止2014年12月31日和2013年12月31日销售型租赁的投资净值如下：
As of December 31, 2014, the future minimum rentalsto be received on non-cancelable sales-type leases by years were asfollows: 截止2014年12月31日，公司未来年度可收取的销售型租赁的不可撤销最低租金额为：
Recent Business Development 近期业务进展 At theend of December, 2014, the Company transferred its Waste Heat Power GenerationSystem ("WHPG System") system originally leased to Zhong Gang GroupBin Hai Industry Co., Ltd. ("Zhong Gang") to Zhong Gang for a price of aboutUS$9.8 million (RMB60.0 million). Under the original lease contract, CREGwas leasing the WHPG System to Zhong Gang for 9 years from the daythe system became operational in October 2010 until September 2019. Accordingto Company's estimates, thesystem transfer price is fairly close to thediscounted cash flow value of the total principal repayment and interest incomeon sales-type leases of US$11.3 million (RMB69.3 million) receivable by theCompany during the period from January 1, 2015 to September 30, 2019. 2014年12月末，公司将原先租赁给中钢集团滨海实业有限公司（“中钢”）的余热发电系统（“WHPG系统”）以大约980万美元（6000万元RMB）的价格转让给中钢。按照原先的租赁合同，CREG会将该WHPG系统租赁给中钢九年，从2010年10月运营开始到2019年9月到期。根据公司的估算，该系统的转让价格十分接近于公司从2015年1月1日到2019年9月30日销售型租赁应收利息收入及本金偿还总额的现金折现值。
Financial Results Conference Call 财务报告的电话会议 The Company will host a conference call at 8:00 a.m. EST on Tuesday, March 24, 2015, to discuss the Company's fourthquarter and full year 2014 financial results. Mr. Guohua Ku, Chief ExecutiveOfficer, and Mr. David Chong, Chief Financial Officer, will be hosting thecall. 公司将于2015年3月24日周二美国东部时间早上8点召开电话会议讨论公司2014年第四季度和全年的财务业绩。公司CEO库国华先生和CFO张少争先生将主持会议。
Listeners may access the call by dialing: 听众可拨打以下会议号码参会： International: +1-412-902-4272 US Toll Free: 1-888-346-8982 Conference Reference: China Recycling Energy Corp. conference call
A telephone replay will be available shortly after the call until March 31,2015 by dialing the following numbers: 还可拨打以下号码听取该电话会议的重播，该重播有效期至2015年3月31日。
International: +1-412-317-0088 US Toll Free: 1-877-344-7529 Replay Access Code: 10062384
10KFiling 年报归档 For more information regarding China Recycling Energy Corp.'s financialperformance during the full year ended December31, 2014, please refer to the Annual Report on Form 10-K, which was filed withthe Securities and Exchange Commission on March 23, 2015. 关于中国循环能源公司2014财年全年财务业绩的更多信息，请审阅2015年3月23日向SEC申报的10-K报告。
About 关于中国循环能源公司的介绍 China Recycling Energy Corp. (NASDAQ: CREG) ("CREG" or "theCompany") is based in Xi'an,
Safe Harbor Statement This press release may contain certain "forward-lookingstatements" relating to the business of China Recycling Energy Corp. andits subsidiary companies. All statements, other than statements of historicalfact included herein are "forward-looking statements." Theseforward-looking statements are often identified by the use of forward-lookingterminology such as "believes," "expects" or similarexpressions, involve known and unknown risks and uncertainties. Although theCompany believes that the expectations reflected in these forward-lookingstatements are reasonable, they do involve assumptions, risks anduncertainties, and these expectations may prove to be incorrect. Investorsshould not place undue reliance on these forward-looking statements, whichspeak only as of the date of this press release. The Company's actual resultscould differ materially from those anticipated in these forward-lookingstatements as a result of a variety of factors, including those discussed inthe Company's periodic reports that are filed with the Securities and ExchangeCommission and available on its website at http://www.sec.gov.All forward-looking statements attributable to the Company or persons acting onits behalf are expressly qualified in their entirety by these factors. Otherthan as required under the securities laws, the Company does not assume a dutyto update these forward-looking statements.
For more information, please contact: Mr. David Chong, Chief Financial Officer Email: chongscd@creg-cn.com
Christensen
Ms. Xiaoyan Su( Vice President Tel: +86-10-5900-3429 Email: xsu@christensenir.com
Mr. Christian Arnell ( Vice President Phone: +86-10-5900-1548 E-mail: carnell@christensenir.com
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