China Recycling Energy Corp. reports diminished activity in 2019

Xi’an, China-based China Recycling Energy Corp., a provider of industrial waste-to-energy technologies, says it lost $8.77 million in 2019, reducing its losses by 86.7 percent compared to a $76 million deficit in 2018.

“We have accomplished significant cost cutting throughout our entire organization,” says Ku Guohua, chairman and CEO of the company.  “We are executing what we believe is a clear plan to manage our business efficiently and effectively through the coronavirus pandemic, prioritizing the health and safety of our customers and teams.”

Looking forward, Ku states, “We believe our financial position and contingency plans will allow us to retain the financial flexibility to pursue the fast-growing smart power sector. We feel we are back on track to continue evaluating several exciting strategic opportunities to reinvest in innovative growth initiatives that we expect will reposition our energy sustainability business in direct relation to smart power integrated solutions to vastly improve climate change efficiency in China.”

The company’s net sales in 2019, however, were just $700,000 compared to $4.89 million in 2018. China Recycling Energy Corp. says one of its largest customers, Erdos TCH Energy Saving Development Co. Ltd., ceased its operations in May 2019 “due to renovations and furnace safety upgrades.”

As well, interest income on sales-type leases for 2019 checked in at $170,000, a decrease from approximately $3.14 million in 2018. China Recycling Energy Corp. says its Pucheng Phase I and II systems in place in 2018 “were suspended due to strict environmental protection policies and lack of supply of biomass waste raw materials” in 2019.

China Recycling Energy Corp. says its waste-to-energy technologies are designed to recycle industrial byproducts for steel mills, cement factories and coking plants in China.