VANCOUVER, May 9 /CNW/ - China Keli Electric Company Ltd. (TSXV: ZKL)
("China Keli" or the "Company") is pleased to announce it has signed a
comprehensive sales agreement with Guang Da Electric ("Guang Da"), a
subsidiary of the Zhuhai Power Supply Bureau. Under this agreement,
which extends through Dec.31st, 2011, Guang Da will purchase equipment
and components from China Keli with a minimum value of RMB 12 million
(~CAD$1.75 million based on current exchange rates).
Under the first phase of this agreement, Guang Da has purchased 24kV
switchgear equipment valued at RMB 715,000 (~CAD$105,000). The
equipment and other components will be used for renewable energy and
infrastructure construction in the Zhuhai Hengqin Island development.
Zhuhai Hengqin Island is a Special Economic Zone linked to Macau and
Zhuhai. The Zone is slated for massive development, with the current
RMB 70 billion (~CAD$10.3 billion) budget expected to grow rapidly as
mandated by China's recent 12th 5 Year Plan.
"It's nice to secure another significant sales order, in this case for a
massive development in our own backyard. This agreement is directly
with a national government power subsidiary", said Lou Meng Cheong,
China Keli's CEO, "Over the term of the agreement the equipment
purchases will be used for power distribution, renewable energy and
other new market applications as part of Zhuhai's continuing major
infrastructure build-out. Revenues under the contract will contribute
to our current year's financial performance".
"We're pleased to play our part in the modernization and urbanization of
China, and to see the growing demand for our products in green
technology applications", said Madame Wong, Chairperson of China Keli.
About China Keli Electric Company Ltd.
China Keli is a hi-tech company that develops, manufactures and installs
hi-voltage electrical components and equipment, including preassembled
mini-substations, electrical controllers, pressurized/vacuumed
switchgears and circuit breakers in the People's Republic of China.
China Keli's markets include electrical transmission and distribution
systems, Smart Grid, transportation (railways, subways, street
lighting, etc.), and the "Cleantech" sector (renewable energy, solid
waste processing, waste water, etc).
ON BEHALF OF THE BOARD OF DIRECTORS
Mr. Lou Meng Cheong
Neither the 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 of this release.
Legal Notice Regarding Forward Looking Statements: Certain statements in this news release are forward-looking statements,
which reflect the expectations of management regarding the Company's
ability to close the Offering. Forward-looking statements consist of
statements that are not purely historical, including any statements
regarding beliefs, plans, expectations or intentions regarding the
future, and in this news release include: (i) Guang Da will purchase a
minimum of RMB 12 million of equipment from the Company before December
31, 2011. Such statements are subject to risks and uncertainties that
may cause actual results, performance or developments to differ
materially from those contained in the statements. No assurance can be
given that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the Company
will obtain from them. These forward-looking statements reflect
management's current views and are based on certain expectations,
estimates and assumptions which may prove to be incorrect, wholly or
partially. A number of risks and uncertainties could cause our actual
results to differ materially from those expressed or implied by the
forward-looking statements, including: (1) the inability or
unwillingness of Guang Da to fulfill their obligations under the
contract, or on the terms set out above or at all, (2) a downturn in
general economic conditions in China or internationally, (3) inability
to manufacture the products as demanded by Guang Da; and (4)
fluctuation in the exchange rate between Canadian dollar and Renminbi.
These forward-looking statements are made as of the date of this news
release and, except as required by law, the Company assumes no
obligation to update these forward-looking statements, or to update the
reasons why actual results differed from those projected in the
forward-looking statements. Additional information about these and
other assumptions, risks and uncertainties are set out in the "Risks
and Uncertainties" section in the Company's MD&A filed with Canadian
SOURCE China Keli Electric Company Ltd.
For further information:
Scott Koyich, President
Brisco Capital Partners
EVP Finance and Corporate Development