China Clean Energy Provides Business Update
FUQING CITY,
Energy Inc. (OTC Bulletin Board: CCGY) (“China Clean Energy”, the “Company”),
a producer of biodiesel fuel and environmentally-friendly specialty chemical
products made from renewable resources in
(“PRC”), today announced that business conditions have improved in the second
quarter 2009, compared to the first quarter, driven by improved demand and
higher average selling prices for its biodiesel and specialty chemical
products. The Company also re-affirmed that the construction of its Jiangyin
plant is expected to be completed in
illustrating progress in the construction of the new plant are available at:
http://www.chinacleanenergyinc.com/Picture.htm .
Upon completion of the new plant, it is expected that China Clean Energy
will consolidate its position as the second largest biodiesel company in
with biodiesel production capacity of 100,000 tons from the new plant and
10,000 from the existing plant for a total of 110,000 tons per year. The new
plant will also have the capability to produce up to 30,000 tons of specialty
chemicals which management believes is critically important to maintain the
Company’s operating flexibility to optimize margins and reduce the business
risk associated with mismatches of feedstock and diesel prices in
the economic cycle.
“We are pleased to re-affirm that the Jiangyin plant is expected to be
operational in the beginning of the fourth quarter 2009,” said Mr. Tai-ming Ou,
China Clean Energy’s Chairman and CEO. “In addition, we are very pleased to
announce that we have experienced improved sales volume and prices for
biodiesel and specialty chemicals in the second quarter as a result of
increased orders from existing customers as well as from new business
development efforts. In the second quarter, two new clients started to place
orders and we look forward to further enhancing our sales force to support the
ramp up of our new plant.”
China Clean Energy management continues to closely evaluate the
developments relating to the recently announced consumption tax on diesel
products in the
Currently, the local tax authority has recommended that biodiesel be exempt
from such tax, but a final decision is pending PRC government approval. Once a
decision is announced by the PRC government, the Company will evaluate any
potential impact on its biodiesel business and make the necessary adjustments
to its business model.
China Clean Energy also wishes to reiterate that the implementation in
vegetable oil has not been finalized. The Company is monitoring the situation
and will proceed to take advantage of this incentive once the provincial
government provides more clarity.
About China Clean Energy:
China Clean Energy, through its wholly-owned subsidiaries, Fujian Zhongde
Technology Co., Ltd. and Fujian Zhongde Energy Co., Ltd, is engaged in the
development, manufacturing, and distribution of biodiesel and specialty
chemical products made from renewable resources. For additional information
please visit: http://www.chinacleanenergyinc.com .
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact in this
announcement are forward-looking statements, including but not limited to, the
Company’s ability to raise additional capital to finance the Company’s
activities; the effectiveness, profitability, and the marketability of its
products; legal and regulatory risks associated with the share exchange; the
future trading of the common stock of the Company; the ability of the Company
to expand its production capacity; the period of time for which its current
liquidity will enable the Company to fund its operations; the Company’s
ability to protect its proprietary information; general economic and business
conditions; the volatility of the Company’s operating results and financial
condition; the Company’s ability to attract or retain qualified senior
management personnel and research and development staff; and other risks
detailed in the Company’s filings with the Securities and Exchange Commission.
These forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations, assumptions, estimates
and projections about the Company and the industry. The Company undertakes no
obligation to update forward-looking statements to reflect subsequent
occurring events or circumstances, or to changes in its expectations, except
as may be required by law. Although the Company believes that the expectations
expressed in these forward looking statements are reasonable, they cannot
assure you that their expectations will turn out to be correct, and investors
are cautioned that actual results may differ materially from the anticipated
results.
For more information, please contact:
China Clean Energy Inc.
Shannon Yan, CFO
Email: shannon.yan@chinacleanenergyinc.com
CCG Investor Relations Inc.
Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Ed Job, CFA
Phone: +1-646-213-1914
Email: ed.job@ccgir.com
SOURCE China Clean Energy Inc.