SHENYANG, China, March 27, 2015 /PRNewswire/ – NF Energy Saving Corporation. (NASDAQ: NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China’s power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today reported financial results for the fiscal year ended December 31, 2014.
2014 Annual Results Highlight:
- Total revenues were $9.98 million for the fiscal year ended December 31, 2014, an increased of 75.88% from 2013.
- Total product revenue was $9.74 million for the fiscal year ended December 31, 2014, an increase of 107.58% from 2013.
- Gross profit decreased to $1.48 million or 4% compared with the last fiscal year.
- Net loss was $0.61 million for the fiscal year ended December 31, 2014.
The increase of revenue was due to substantial growth of product sales compared with 2013. In 2014, we signed supply contract with the Chinese Aviation Company for their desulfurization, denitration and dust removal systems of 660T/h boiler room. This contract alone contributed over $2 million sales in 2014. We expect to sign more contracts in the saving energy area next year.
The decrease of gross profit in fiscal year 2014 was primarily due to: 1) Most of the energy saving products were new products, so the cost of R&D and other expenses were incurred in this fiscal year. 2) As the Strategy of the Company was to expand energy saving market share in 2014, we reduced the gross margin of our products. We expect the gross margin will grow quickly as the LXB Water Supply Project starts to manufacture and supply in 2015. At the same time, we will continue to explore more opportunities in the energy saving market that focus on desulfurization and denitration areas, and to increase the influence of the company in the energy saving industry. The Company expects that the gross margin of such products will increase in next year.
Mr.Gang Li, Chairman of the Company said, "We are very glad that revenue increased sharply in fiscal year 2014. Though the cost of R&D and some one-time expenses hedged profits, we obtained corresponding market share in the energy saving industry. With our progress on technology and market development, energy saving products and services of our Company will be more competitive and profitable in the future."
About NF Energy Saving Corporation
NF Energy Saving Corporation (NASDAQ: NFEC) is a China-based provider of integrated energy conservation solutions utilizing energy-saving equipment, technical services and energy management re-engineering project operations to provide energy saving services to clients. The Company’s customers are mainly concentrated in the electrical generation (large-scale thermal power generation, hydroelectric power, and nuclear power), water supply, and heat supply industries. The majority of revenues are from energy efficient flow control solutions including equipment and energy efficiency project services. For more information, visit http://www.nfenergy.com.
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