TORONTO, Oct. 26, 2020 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”, together with its subsidiaries, the “Group”), a new energy service provider in the People’s Republic of China (the ”PRC” or “China”), announces the following business updates:
Sanya Natural Gas Distribution Business Update
The Company is pleased to report that due to the lightening of travel restrictions and the relative stability of the COVID-19 pandemic within the PRC, tourism travel to Sanya, Hainan Province has returned to previous levels. During the Chinese National Holidays of October 1 to October 7, 2020, the Group’s natural gas distribution volume in Sanya increased by 5.95% compared to the same period in 2019. This is consistent with the return to normal level of natural gas distribution in September this year, where the distribution volume increased by 5% compared to the same period in 2019. Due to the COVID-19 restrictions in Q1 and Q2 2020, some of the Company’s connection works were delayed. However, as the market opens up, connection works increased in Q3 and we expect such momentum will continue in Q4 2020.
Meishan Project Business Update
The Company’s Meishan subsidiary has achieved the new milestone of securing natural gas for its steam powered heat distribution network in the Meishan New Economic Development Zone. A one-year liquefied natural gas (“LNG”) supply contract was signed with the Meishan natural gas subsidiary of China National Petroleum Corporation (“CNPC”) to provide the Company network with LNG for the use of industrial steam powered heating. The Meishan project construction progress had suffered delays due to the COVID-19 pandemic, and the construction of the energy station is expected to be completed by the end of this year. A letter of intent was also signed with CNPC to supply the Group’s energy distribution network with pipeline gas once its pipeline is completed, which is expected by July 2021. Pipeline gas will replace the more expensive LNG, and help reduce the overall cost of gas supplied, which is expected to encourage more customers to tap into the Company’s system.
Haitang Bay Integrated Smart Energy Project Business Update
Despite the COVID-19 pandemic resulting in slowing construction progress on the Haitang Bay project, by the end of September 2020, 36% of construction on the first energy station had been completed. Further, over 11,916m of pipeline has been welded and laid for the integrated smart energy network (6000m of pipeline laid through land reclamation bypassing a river), accounting for 83% of the total expected pipeline required for the network.
EV Battery Swap Station Business Update
The Company’s first EV battery swap station in Sanya is now fully operational. The Group is preparing for the construction of a second EV battery swap station in Sanya and expects to have two operational battery swap stations in Zhuhai, Guangdong by the end of 2020. The initial phase of the EV battery swap station business is aimed to identify and resolve and issues in the operating process and implement the Company’s business model as planned.
New Credit Facility
The Company has secured a three-year credit facility for an aggregate amount of RMB 20 million (apprioximately $3.94 million) with the Industrial and Commercial Bank of China at an annual interest rate of 3.95%. This credit facility provides additional working capital to the Group.
“I’m very pleased with the focus of our board and management on execution of the Company’s business growth plan. The Chinese government is promoting carbon neutral policies and our business is in a well-positioned to take advantage of this significant opportunity for growth.” Ann Lin, the Chair and CEO of the Company said, “To increase the Company’s value has always been our focus. Our team will continue its efforts to build the Company and improve our competitiveness in the energy industry.”
About CF Energy Corp. (Previously known as: Changfeng Energy Inc.)
CF Energy Corp. is a Canadian public company currently traded on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC.
CONTACT INFORMATION
Corporate Investment Relations
Investor.relations@changfengenergy.cn
Charles Wang
Executive Assistant to CEO & Chair of the Board
Zhaoyu.wang@changfengenergy.cn
Frederick Wong
Director of the Board
fred.wong@changfengenergy.cn
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements and forward-looking information (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact, included or incorporated by reference in this document are Forward-Looking Statements, including statements regarding activities, events or developments that the Company expects or anticipates may occur in the future, including statements in respect of: expected increase in connection works in Q4 2020; the supply of the Group’s energy distribution network by CNPC with pipeline gas and resulting reduction in the Company’s overall cost of gas; increase in customers using the Company’s system; construction and implementation of additional EV battery swap stations; increase in the Company’s value; and improvement of the Company’s competitiveness. These Forward-Looking Statements can be identified by the use of forward-looking words such as “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue” or similar words or the negative thereof. No assurance can be given that the plans, intentions or expectations or assumptions upon which these Forward-Looking Statements are based will prove to be correct and such Forward-Looking Statements included in this news release should not be unduly relied upon. Although management believes that the expectations represented in such Forward-Looking Statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such Forward-Looking Statements are not a guarantee of performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such Forward-Looking Statements. These factors include, without limitation, no significant and continuing adverse changes in general economic conditions or conditions in the financial markets. Readers are cautioned that all Forward-Looking Statements involve risks and uncertainties, including those risks and uncertainties detailed in the Corporation’s filings with applicable Canadian securities regulatory authorities, copies of which are available at www.sedar.com. The Company urges readers to carefully consider those factors. The Forward-Looking Statements included in this news release are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such.
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.
