中國循環能源公布2014年全年財務成果

China RecyclingEnergy Corporation Reports Fourth Quarter and Full Year 2014 FinancialResults

Interest Income on Sales-Type Leases in 2014 Up 36.8%Year-over-Year

XI'AN,China,March 23, 2015 -- China Recycling EnergyCorp. (NASDAQ: CREG) ("CREG" or "the Company"), a leadingindustrial waste-to-energy solution provider inChina, today announced itsfinancial results for the fourth quarter and full year ended December 31, 2014.

Fourth Quarter 2014 Unaudited Financial Highlights

·   Interest income on sales-typeleases increased 24.9% to US$6.98 million from US$5.59 million for the fourthquarter of 2013.

·   Total sales wereUS$0.12 million, comparedwith US$13.20 million for the fourth quarter of 2013 as no powergeneration system was completed and sold in the fourth quarter of 2014.

·   Net income was US$5.33million, up 26.8% from US$4.20 million for the fourthquarter of 2013.

·  Basic and fully dilutedearningsper share (EPS) was US$0.06, as compared with US$0.07 for the fourthquarter of 2013.

Full Year 2014 Audited Financial Highlights

·   Interest income onsales-type leases increased 36.8% to US$26.46 million from US$19.34 million in2013.

·   Total sales wereUS$19.66 million, comparedwith US$63.19 million in 2013.

·   Net income was US$19.81million, up 26.8% fromUS$15.63 million in 2013.

·   Basic and fully diluted earnings per share(EPS) wasUS$0.28, as compared with US$0.29 in 2013.

Summaryof Financial Results:

(US$ in thousands, except for per share data)

Three Months Ended

December 31, 2014

Twelve Months Ended

December 31, 2014


2014

2013

2014

2013

Total Sales (1) + (2)

116

13,201

19,659

63,193

(1) Sales of Systems

0

12,921

18,869

62,013

(2) Contingent Rental  Income

116

280

790

1,180

Gross Profit

104

3,236

5,074

15,346

Interest Income on Sales-Type Leases

6,977

5,587

26,459

19,345

Total Operating Income

7,081

8,823

31,532

34,691

Net Income

5,333

4,205

19,812

15,630

Basic EPS

0.06

0.07

0.28

0.29

Diluted EPS

0.06

0.07

0.28

0.29

Mr. Guohua Ku,Chairman and CEO of CREG commented, “We are very happy to report solid growthin our interest income on sales-type leases and net income for the fourthquarter of 2014. On a yearly basis, interest income on sales-type leases, themajor and consistent regular revenue for the Company, increased 36.8% while netincome increased 26.8%. With six projects under construction for a totalcapacity of 135MW, we look confidently to our future. We expect that a WGPGsystem to Shanxi Datong Coal Group and a CDQ system to Shandong Boxing will becompleted in the second quarter of 2015. These two systems have a totalcapacity of 40MW. Given continued favorable governmentpolicies, more stringent environmental protectionrequirements from the government and rising awareness for energy recovery inenergy-intensive industries, we continue to see strong market demand for ourwaste energy recycling systems.”

FullYear 2014 Audited Financial Results

SALES. Totalsales, including sales of systems and contingent rental income, were US$19.66 million for the full year of 2014, adecrease of US$43.53 million as compared with US$63.19million in 2013, mainly due to fewer systems completed and sold in 2014.

Salesof systems for the full year of 2014 were US$18.87, as comparedwithUS$62.01 million in 2013. In2014, the Yida system wascompleted and sold, while the ShenqiuPhase II system, the Shanxi Datong Phase Isystem, the Pucheng Biomass Phase IIsystem and the Jitie system were completed and sold in 2013.For the full year of 2014, the Companyreceived contingent rental income of US$0.79 million from the usage ofelectricity in addition to the minimum lease payments, compared to US$1.18million in 2013. For sales-type leases, sales and cost of salesarerecorded at the time of the leasecommencement; in additionto systems sales revenue, CREG’s other major source ofrevenues is interest income from sales-type leases.

COST OF SALES. Cost ofsales for the full year of 2014 was US$14.59 million, as compared with US$47.85million in 2013. The decrease was mainly due to fewersystems completed and sold in 2014.

GROSS PROFITand GROSS MARGIN. Gross profitwas US$5.07 million for the full year of 2014, as compared with US$15.35 millionin 2013. Blended gross margin for the full year of 2014 was 26%, compared with24% in 2013.

INTEREST INCOME ON SALES TYPE LEASES. Interestincome on sales-type leases, which is a major andconsistent regular revenue for the Company,was US$26.46 million for the full year of 2014, anincrease of 36.8% from US$19.34 million in 2013. In 2014, interest income was derived from sixteen sales-typeleases, including the CHPG system at Jing Yang Shengwei (5yearterm, expired onJune 30, 2014), the TRT system at Zhangzhi (13 yearterm originally but terminated early on September 24, 2014), theBMPG systems at Pucheng Phase I and II (15 year and 11.9 year term,respectively), the BMPG systems at Shenqiu Phase I and II (11 year and 9.5 yearterm, respectively), five power and steam generating systems at Erdos (20 yearterm), the WHPG system at Zhong Gang(9 year term originally but terminated early on December22, 2014), the WHPG systems at Jitie (24year term), two BPRT systems at Datong (30 year term), and the WGPG system atYida (15 years). In comparison, interest income on sales-type leases wasderived from fifteen systems in 2013.

OPERATING EXPENSES. Operating expenses totaled US$3.49million for the full year of 2014, a decrease of 16.0% as compared with US$4.16million in 2013, mainly due to a US$0.59million decrease in consulting expenses compared to 2013.

運營費用。2014年全年的運營費用總額爲349萬美元,相比于2013年的416萬美元減少了16%,這主要是因爲相比于2013年有59萬美元顧問費用的減少。

NON-OPERATINGINCOME (EXPENSES).Non-operatingexpenses consisted of non-sales-type lease interest income, interest expenses, bank charges and miscellaneous expenses. For the full year of 2014,net non-operating expenses were US$2.20 million, compared with US$7.83 million in 2013. Forthe full year of 2014, the Company had US$3.43million in interest expense on loans, and US$1.02million in other income consisting mainly of US$0.93million in income from the sale of a TRT system to Zhangzhi and US$1.76 million in income from the sale of a WHPG system to Zhong Gang,but offset by US$1.58 million in financialexpenses. In addition, the Company had US$0.19 million in interest income in2014. For the full year of 2013, the Company had US$6.72million in interest expense on loans, a US$1.29million one-time commission to the fund management company for initiating andcompleting a RMB460 million (US$75.0million) financing for the Company, and US$0.23million in interest income.

非營業收入(費用),非營業費用是由非銷售型租賃利息收入、利息費用、銀行收費、和各種雜項費用構成。2014年全年的非營業費用淨值爲220萬美元,相比于2013年爲783萬美元。2014年全年,公司的貸款利息費用爲343萬美元,其他收入102萬美元。其他收入主要是93萬美元的長治TRT系統回購産生的收入和176萬美元中鋼WHPG系統回購産生的收入,但是被176萬美元財務費用沖抵。此外,公司2014年利息收入有19萬美元。而2013年,公司的貸款利息費用爲672萬美元,用于完成4.6億元RMB7500萬美元)融資而支付給基金管理公司的一次性傭金129萬美元,和23萬美元的利息收入。

INCOME TAX EXPENSE. Income taxexpense was US$6.11 million forthe full year of 2014, decreasedby 11.3% as compared withUS$6.89 million in 2013. Thedecrease in income tax expense was mainlydue to a decrease in the consolidatedeffective income tax rate, which was 23.7% in 2014, compared with 30.3% in2013. This is mainly due to the 15% preferential income tax rate of theCompany's wholly owned subsidiary Xi'an TCH in 2014, and income tax rate ofXi'an TCH for the year of 2013 was 25%. In July 2013, Xi'an TCH wasre-approved for high-tech enterprise status and enjoyed a 15% preferentialincome tax rate effective January 1, 2013.

所得稅費用。2014年全年的所得稅費用爲611萬美元。相比于2013689萬美元減少了11.3%。減少的主要原因是因爲合並的有效所得稅稅率由201330.3%減少至201423.7%。這主要是因爲CREG全資子公司西安天可華在2014年享受15%的優惠所得稅率,而西安天可華在2013年的所得稅率爲25%20137月,西安天可華重新獲得高新企業認證並享受15%優惠所得稅稅率。

NET INCOME. Net income for the full yearof 2014 was US$19.81 million, an increase of 26.8% ascompared with US$15.63 million in2013. This increase in net income was mainly due to the increased interestincome on sales-type leases and lower non-operating expensesin2014 compared to 2013.

淨利潤。2014年全年淨利潤爲1981萬美元,相比于20131563萬美元增加了26.8%。淨利潤的增加主要是由于銷售型租賃利息收入的增加和相比于2013年度,在2014年的非營運費用的減少。

For the full year of 2014, basic andfully diluted EPS was US$0.28, compared with US$0.29 in 2013.

2014年全年,基本每股收益和攤薄每股收益均爲0.28美元。相比于2013年基本每股收益和攤薄每股收益爲0.29美元。

Financial Position as of December 31, 2014

截止20141231日的財務狀況

As of December 31, 2014, the Company had cashand cash equivalents of US$35.87 million compared with US$7.70 million as ofDecember 31, 2013. Other current assets were US$9.70 million and currentliabilities were US$26.66 million.Total shareholders' equity was US$207.86 million comparedwith US$154.68 million as of December 31, 2013. The net tangible assetper share was US$2.50 as of December31, 2014.

截止20141231日,公司的現金及現金等價物爲3587萬美元,相比于2013年度,公司的現金及現金等價物爲770萬美元。截止20141231日,公司的其他流動資産爲970萬美元,流動負債爲2666萬美元。总股东权益为2.0786億美元,而去年同期爲1.5468億美元。截止20141231日,每股淨資産爲2.5美元。

Net Investment in Sales-Type Leases as of December31, 2014

截止20141231日銷售型租賃的淨投資額

Thecomponents of the net investment in sales-type leasesas of December 31, 2014 and December 31, 2013are as follows:

截止20141231日和20131231日銷售型租賃的投資淨值如下:

(US$)

December 31, 2014

2014

1231

December 31, 2013

2013

1231

Total future minimum  lease payments receivable

應收最低租金總額

583,820,886

560,187,391

Less: executory cost

減:執行成本

(134,771,919)

(134,447,605)

Less: unearned interest  income

減:未獲利息收入

(268,028,368)

(241,234,839)

Net investment in sales  - type leases

銷售型租賃淨投資額

181,020,599

184,504,947

Current portion

當期部分

6,561,984

9,063,386

Noncurrent portion

分當期部分

174,458,615

175,441,561

As of December 31, 2014, the future minimum rentalsto be received on non-cancelable sales-type leases by years were asfollows:

截止20141231日,公司未來年度可收取的銷售型租賃的不可撤銷最低租金額爲:

2015

42,114,725

2016

40,398,758

2017

40,398,758

2018

40,300,703

2019

40,202,647

Thereafter之後

380,405,295

Total總計

US$583,820,886

Recent Business Development

近期業務進展

At theend of December, 2014, the Company transferred its Waste Heat Power GenerationSystem ("WHPG System") system originally leased to Zhong Gang GroupBin Hai Industry Co., Ltd. ("Zhong Gang") to Zhong Gang for a price of aboutUS$9.8 million (RMB60.0 million). Under the original lease contract, CREGwas leasing the WHPG System to Zhong Gang for 9 years from the daythe system became operational in October 2010 until September 2019. Accordingto Company's estimates, thesystem transfer price is fairly close to thediscounted cash flow value of the total principal repayment and interest incomeon sales-type leases of US$11.3 million (RMB69.3 million) receivable by theCompany during the period from January 1, 2015 to September 30, 2019.

201412月末,公司將原先租賃給中鋼集團濱海實業有限公司(“中鋼”)的余熱發電系統(“WHPG系統”)以大約980萬美元(6000萬元RMB)的價格轉讓給中鋼。按照原先的租賃合同,CREG會將該WHPG系統租賃給中鋼九年,從201010月運營開始到20199月到期。根據公司的估算,該系統的轉讓價格十分接近于公司從201511日到2019930日銷售型租賃應收利息收入及本金償還總額的現金折現值。

Financial Results Conference Call

財務報告的電話會議

The Company will host a conference call at 8:00 a.m. EST on Tuesday, March 24, 2015, to discuss the Company's fourthquarter and full year 2014 financial results. Mr. Guohua Ku, Chief ExecutiveOfficer, and Mr. David Chong, Chief Financial Officer, will be hosting thecall.

公司將于2015324日周二美國東部時間早上8點召開電話會議討論公司2014年第四季度和全年的財務業績。公司CEO庫國華先生和CFO張少爭先生將主持會議。

Listeners may access the call by dialing:

聽衆可撥打以下會議號碼參會:

International: +1-412-902-4272

US Toll Free: 1-888-346-8982

China Toll Free:4001-201203

Conference Reference: China Recycling Energy Corp. conference call

A telephone replay will be available shortly after the call until March 31,2015 by dialing the following numbers:

還可撥打以下號碼聽取該電話會議的重播,該重播有效期至2015331日。

International: +1-412-317-0088

US Toll Free: 1-877-344-7529

Replay Access Code: 10062384

10KFiling

年報歸檔

For more information regarding China Recycling Energy Corp.'s financialperformance during the full year ended December31, 2014, please refer to the Annual Report on Form 10-K, which was filed withthe Securities and Exchange Commission on March 23, 2015.

關于中國循環能源公司2014財年全年財務業績的更多信息,請審閱2015323日向SEC申報的10-K報告。

AboutChinaRecycling Energy Corp.

關于中國循環能源公司的介绍

China Recycling Energy Corp. (NASDAQ: CREG) ("CREG" or "theCompany") is based in Xi'an,Chinaand providesenvironmentally friendly waste-to-energy technologies to recycle industrialbyproducts for steel mills, cement factories and coke plants inChina. Byproductsinclude heat, steam, pressure, and exhaust to generate large amounts oflower-cost electricity and reduce the need for outside electrical sources. TheChinese government has adopted policies to encourage the use of recyclingtechnologies to optimize resource allocation and reduce pollution. Currently,recycled energy represents only an estimated 1 percent of total energyconsumption and this renewable energy resource is viewed as a growth market dueto intensified environmental concerns and rising energy costs as the Chineseeconomy continues to expand. The management and engineering teams have over 20years of experience in industrial energy recovery inChina. For more information aboutCREG, please visit .

Safe Harbor Statement

This press release may contain certain "forward-lookingstatements" relating to the business of China Recycling Energy Corp. andits subsidiary companies. All statements, other than statements of historicalfact included herein are "forward-looking statements." Theseforward-looking statements are often identified by the use of forward-lookingterminology such as "believes," "expects" or similarexpressions, involve known and unknown risks and uncertainties. Although theCompany believes that the expectations reflected in these forward-lookingstatements are reasonable, they do involve assumptions, risks anduncertainties, and these expectations may prove to be incorrect. Investorsshould not place undue reliance on these forward-looking statements, whichspeak only as of the date of this press release. The Company's actual resultscould differ materially from those anticipated in these forward-lookingstatements as a result of a variety of factors, including those discussed inthe Company's periodic reports that are filed with the Securities and ExchangeCommission and available on its website at http://www.sec.gov.All forward-looking statements attributable to the Company or persons acting onits behalf are expressly qualified in their entirety by these factors. Otherthan as required under the securities laws, the Company does not assume a dutyto update these forward-looking statements.

For more information, please contact:

Mr. David Chong, Chief Financial Officer
ChinaRecycling Energy Corp.
Tel: +86-1370-1813139; +65-9721 6163

Email: chongscd@creg-cn.com

Christensen

Ms. Xiaoyan Su(China)

Vice President

Tel: +86-10-5900-3429

Email: xsu@christensenir.com

Mr. Christian Arnell (China)

Vice President

Phone: +86-10-5900-1548

E-mail: carnell@christensenir.com