New Environmental Energy (HKG:3989) announced that the statements made by its executive director and CEO, Cao Guoxian, on 1 June 2012 upon conclusion of its AGM are forecasts only and such forecasts may or may not materialize.

The statements are: "In this year, we will stay focus on our projects in Beijing and Nanchang. The original planned daily waste treatment capacity of our Beijing project is approximately 650 tonnes. We are hopeful that this will be increased to approximately 900 tonnes in future. Our Nanchang project has a daily waste treatment capacity of approximately 1,200 tonnes. It has been shortlisted as a key implementing project in Nanchang.

"In view of the intensifying competition in waste treatment sector, and in anticipation of more new projects to kick start in the 2-tier cities in Mainland China, the Company will actively participate in tenders for such projects. We intended to identify around 3 to 5 projects every year, each with a daily waste treatment capacity of approximately 1,000 tonnes, and the estimated amount of investment for each project will be approximately RMB500 million.

"Currently, there are about 4 to 5 waste treatment enterprises in Mainland China who have a daily waste treatment capacity of more than 10,000 tonnes. With a daily waste treatment capacity of approximately 4,600 tonnes, the Company is about the top 10 waste treatment enterprises in Mainland. Provided that we can keep up the pace of expansion in future by adding 2 to 3 new projects each year, it is hopeful that we can squeeze into the top 5 list in 3-year time, and ultimately become one of the big 3 players in the arena, the Company have a considerable development in future.

"Capex for this year would be around RMB250 million to RMB300 million, which will be chiefly utilized for development of the Beijing project and Nanchang project. As for financing, the Company will liaise with its bankers and will make borrowing its financial resort only when it deems necessary to.

"The time of loss-making is behind us now. I am confident that when the operations in the Beijing and Nanchang projects duly commence, our business will turnaround."

Source:chinesestock.org