China Energy Savings Technology Chairman and CEO Speaks Directly to Shareholders
10 May 2005
China Energy Savings Technology, Inc. (Nasdaq: CESV - News) today announced its Chairman and CEO, Mr. Sun Li, spoke directly to shareholders and the investment community in an open letter. Highlights of the letter are below.
"Our ultimate goal," said Mr. Sun, "is to become a large-scale, full- service energy technology conglomerate, and you will see significant accomplishments toward this goal during 2005 and 2006."
Mr. Sun also addressed the current financial situation of the company. "The company continues to do well financially, and we expect to have a record year in terms of revenue and profits. With a 100% stake in Starway Management Limited, the revenue and gross profits through the first two fiscal quarters, (October 1, 2004 through March 31, 2005) were approximately $22.88 million and $13.71 million respectively, based on primary calculations. Net profit was approximately $11.98 million ($12.95 million before amortization of the value of incentive shares). Current shareholder equity is estimated at over $50 million, which is an increase of 278% since the end of 2003. The significant increase in our net assets is due to the substantial increase in net income over the past several quarters. "
The entire letter can be read by visiting the company's website at the following URL: http://www.cesv-inc.com/ir_downloads.html
About China Energy Savings Technology:
The company is a holding company that owns 100% of Starway Management Limited whose subsidiaries are engaged in the manufacturing and sales of advanced technology energy-saving products in the People's Republic of China (PRC). 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 and Shenzhen Academy of Metrology & Quality Inspection issued in December 2002, 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 and small arcades 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: contactus@cesv-inc.com
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Source: China Energy Savings Technology, Inc.
Source: PR Newswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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