China New Energy Announces Acquisition of Fuzhou Flying Dragon Zhongran Gas Inc.
TIANJIN, China, Jan. 12 /PRNewswire-Asia-FirstCall/ -- China New Energy Group Company (OTC Bulletin Board: CNER) ("China New Energy" or the "Company"), a vertically integrated natural gas company engaged in the development of natural gas distribution networks, and the distribution of natural gas to residential, industrial, and commercial users in small- and medium-sized cities in China, announced that on January 5, 2010, Willsky Development, Ltd., the Company's wholly-owned subsidiary, entered into an equity purchase agreement (the "Agreement") to acquire all of the outstanding equity interest of Fuzhou Flying Dragon Zhongran Gas Inc., a PRC company ("Fuzhou Zhongran"), from Flying Dragon Resource Development Limited and Flying Dragon Investment Management Limited, for RMB 26 million (approximately $3.8 million). The purchase price is payable in three installments based on the satisfaction of various mutually agreed upon closing conditions.
On November 11, 2007, Fuzhou Zhongran obtained an exclusive operating license from the Dongxiang County government in Jiangxi Province for the construction and development of a natural gas pipeline network for 30 years.
"Our acquisition of Fuzhou Zhongran is another important step for our growth in Jiangxi Province, since we recently announced two other acquisitions in that province," said Mr. Yangkan Chong, Chief Executive Officer. "There is increasing demand for natural gas from both residential and industrial users in Dongxiang County. In 2010, we plan to connect the Dongxiang regional gas pipeline network to a major national network. In the coming year, we look forward to increasing our revenues from additional construction projects and stronger sales of natural gas."
About China New Energy Group Company
China New Energy Group Company ("China New Energy" or the "Company") is a vertically integrated natural gas company engaged in the development of natural gas distribution networks, and the distribution of natural gas to residential, industrial, and commercial users in small and medium sized cities in China. The Company generates revenues primarily from the connection fees it charges its customers for interconnecting to pipelines in its natural gas distribution networks, and fees for natural gas usage. For more information, please visit http://www.cnegc.com/ .
Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to access natural gas for distribution, and ability to identify and develop operational locations under favorable terms, changes in natural gas pricing mechanism imposed by the Chinese government, changes in the regulatory environment and future national or regional economic and competitive conditions, and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
Company Contact:
Eric Yu, Chief Financial Officer
Email: [email protected]
Web: http://www.cnegc.com
Investor Relations Contact:
CCG Investor Relations
Mr. Athan Dounis, Account Manager
Phone: +1-646-213-1916
Email: [email protected]
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Email: [email protected]
Web: http://www.ccgirasia.com
SOURCE China New Energy Group Company
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