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China Power Equipment, Inc. Commences Trading

May 21, 2009

NEW YORK, May 21 /PRNewswire-Asia-FirstCall/ — China Power Equipment, Inc.
(“China Power”) today announced that it has begun trading as a public company
under the symbol OTC Bulletin Board: CPQQ.

Through its Xi’an, China-based, wholly-owned subsidiary, Xi’an Amorphous
Zhongxi Co., Ltd., the Company has developed a proprietary, patented
technology to produce a new generation of energy saving transformers and
transformer cores. The Company currently manufactures 55 different models of
transformers in four product series which are sold throughout China.

The Company currently has two patents for the production technology of
amorphous alloy transformers and one patent for equipment for the production
of amorphous alloy cores in China. Leveraging the properties of amorphous
alloy materials and its advanced manufacturing process, China Power’s transformers reduce up to 80% of the no-load loss generated by transformers
with a silicon steel core.

Due to the rapid growth of China’s economy, the drain on the nation’s
existing power grid is substantial. In response to this and the PRC’s
increasing attempts to reduce its impact on the environment, the Chinese
government has issued a series of measures demanding improved efficiency and
decreased emissions from its corporations, thus making it a priority to use
energy-saving products and equipment. Utilizing its patented technology, China
Power’s
amorphous alloy transformers provide utilities with a highly efficient
alternative product line, resulting in utilities being able to increase their
capacity while minimizing their impact on the environment. Not only have China
Power’s
amorphous alloy transformers demonstrated an 80% reduction in the
no-load loss as compared to the loss generated by comparable steel core
products, the Company’s proprietary manufacturing process also requires
significantly less energy than the production process for silicon steel cores.
Amorphous metal can also be recycled, an additional environmental benefit. All
of these qualities mean that China Power’s products provide substantial energy
and monetary savings throughout the life of the transformer.

Yong Xing Song, Chairman of the Board of the Company, stated, “Having our
stock trade on the OTC Bulletin Board is a significant step for China Power
Equipment. We have been working diligently to contribute to China’s efforts to
improve the quality and efficiency of its power infrastructure. This endeavor
will take considerable resources and China Power is ideally suited to
participate in this undertaking. Our amorphous alloy core transformers are
highly efficient, energy saving and environmentally friendly, making our
products the logical selection for power providers looking to improve the
effectiveness of the power grid.”

About China Power Equipment, Inc.

China Power Equipment, Inc., through its wholly-owned subsidiary, Xi’an
Amorphous Zhongxi Co., Ltd., has developed a proprietary, patented technology
to produce a new generation of energy saving transformers and transformer
cores. The Company currently manufactures 55 different models of transformers
in four product series which are sold throughout China. The Company was formed
in 2006 as a U.S. corporation, and in November 2006, formed a Chinese
subsidiary which was granted a license as a privately held, Wholly-Owned
Foreign Enterprise, or “WOFE,” by the Chinese government.

Safe Harbor

Certain statements in this release concerning our future growth prospects
are forward-looking statements, which involve a number of risks and
uncertainties that could cause actual results to differ materially from those
in such forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and uncertainties
regarding the success of our investments, risks and uncertainties regarding
fluctuations in earnings, our ability to sustain our previous levels of
profitability including on account of our ability to manage growth, intense
competition, wage increases in China, our ability to attract and retain highly
skilled professionals, time and cost overruns on fixed-price, fixed-time frame
contracts, client concentration, our ability to successfully complete and
integrate potential acquisitions, withdrawal of governmental fiscal incentives,
political instability and regional conflicts and legal restrictions on raising
capital or acquiring companies outside China. Additional risks that could
affect our future operating results are more fully described in our United
States Securities and Exchange Commission filings, including our Prospectus
dated November 7, 2008, and 10-K filed on March 31, 2009 and our other recent
filings. These filings are available at http://www.sec.gov . We may, from time
to time, make additional written and oral forward-looking statements,
including statements contained in our filings with the Securities and Exchange
Commission and our reports to shareholders. We do not undertake to update any
forward-looking statements that may be made from time to time by or on our
behalf.

SOURCE China Power Equipment, Inc.


Source: newswire



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