Changfeng Energy Inc.

Changfeng Energy Inc.

June 01, 2009 16:00 ET

Changfeng Reports Significant Growth in Q1 Profit and Revenues

TORONTO, ONTARIO--(Marketwire - June 1, 2009) - Changfeng Energy Inc. ("Changfeng" or the "Company")(TSX VENTURE:CFY) today reported financial results for the three months ended on March 31, 2009. All amounts are in Canadian dollars.

During the quarter Changfeng generated total revenues of $4,336,860 compared to $2,966,091 for the same period in 2008 representing a 46.2% increase. The gross profit margin for the period was 66.4% versus 59.5% in the same period last year.

Net income for the first quarter was $622,684 or $0.009 per share (based on 66,025,000 shares) compared to $242,715 or $0.005 per share (based on 46,717,308 shares) for the same period in 2008, representing a 156.5% increase. Cash flow for the quarter was $947,750 compared with $522,181 in the first quarter of 2008.

At the end of Q1 2009 the Company had 39,981 residential customers connected representing a 46% increase over the year and 390 commercial customers connected representing a 31% increase over the 12 month period.

During the quarter the Company commenced construction of a pipeline network connecting the City's newly designed "Sanya Nanshan New Concept Urban Industrial Park" and has completed 2 km of pipeline.

The Company's previously announced CNG project continues to advance. The first 3 of a total of 7 applications for the construction of CNG stations in Changsha are going through the government's final approval process. The Company has secured the required gas supply for the first group of stations (11 MM M3 of CNG).

"For the balance of the year, Changfeng will focus on steady growth in the Sanya region, and an increased effort on mainland development. We will continue to add more customers in Sanya City and increase gas sales in the region. We will continue our efforts to secure additional gas supply for our Yalong Bay, Haitang Bay and Industrial Park projects. Sanya City's estimated annual gas consumption for the entire region will increase to 120 MM M3 (from the current approx. 30 MM M3 level) within the next five years." Said Mr. Huajin Lin, Chairman and CEO of the Company.

About Changfeng Energy Inc.

Changfeng is engaged in the design and construction of natural gas distribution networks and the distribution of natural gas to commercial and residential customers in the greater Sanya City region of Hainan Province, China. The Company is headquartered in Toronto, Ontario and its shares trade on the TSX Venture Exchange.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Changfeng's business are more fully discussed in the Company's disclosure materials, including its information circular and MD&A, filed with the securities regulatory authorities in Canada.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Changfeng Energy Inc.
    Mike Liu
    Changfeng Energy Inc.
    Graham Warren
    Chief Financial Officer