www.nfenergy.com
NF Energy Saving Corporation (the “Company” or “NF Energy”), based in Shenyang, Liaoning Province, is a China-based provider of integrated energy conservation solutions utilizing energy-saving equipment, technical services and energy management re-engineering project operations to provide energy saving services for China’s electric power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries.
NF Energy expects to increase revenue by at least 33% in 2010
Chinese energy conservation specialist NF Energy Saving Corporation (OTC: NFEC) believes it will increase revenues by more than a third in the current year. The company told investors that it expects revenue for the fiscal year ending December 31 2010 to be between US$27 and US$30 million, equating to a 33% to 48% increase over the US$20.3 million achieved in the 2009 fiscal year.
"We expect our business of energy-efficient flow control systems will continue to grow, benefiting from the installed capacity additions in power generation sectors as well as continued municipal constructions,” NF Energy chairman and CEO Mr Li Gang commented.
“Meanwhile, driven by the government's incentive policies to develop an energy saving industry in China, as an experienced energy service company (ESCO), we expect our business of energy saving and emission reduction services and projects is going to enter a fast track and a significant growth is foreseeable," he added
Last week, NF Energy discussed new government proposals in the People’s Republic of China for the energy industry, which the company believes will directly benefit the business.
Essentially the ‘opinion’ of China's State Council Plan, referred to as the ‘Opinion on Accelerating the Implementation of Energy Management Contract to Promote the Development of Energy Service Industry’, outlines development goals, financial subsidies, preferential-tax policies, accounting policies and pilot projects.
"Benefiting from the government incentive policies, there is now a new catalyst for continued growth for energy service industry companies and ESCOs. EMCA estimates that the energy service industry will achieve an output of RMB80 billion in 2010 and maintain a growth rate of 30%-40%”, Gang Li commented.
“NF Energy will continue to expand its exposure in the energy service industry and EMC business by taking advantage of the preferential policies released by the Chinese government”.
Under the EMC model, ESCOs provide a series of services such as energy auditing, financing, and retrofitting to energy consumption companies to reduce their per unit energy consumption and green house gas emissions. Subsequently the ESCO generate returns by sharing energy saving benefits during the contract period.
In terms of the financial incentives, the Chinese government will provide financial subsidies for EMC projects, and ESCOs will benefit from preferential tax policies. Additionally, preferential accounting policies will also apply in relation to EMC expenditures.
Headquartered in Shenyang City, NF Energy provides energy conservation services and products, which utilize its specialist energy-saving equipment and technical services. The company has several proprietary energy saving technologies and patents, including flow control systems and wind turbine components.
