Changfeng Received a $714,000 Tax Free Government Subsidy and a Long-Term Government Scheme for its Sanya Operation, Hainan P...

Changfeng Energy Inc., (TSX VENTURE:CFY) ("Changfeng" or the "Company"), is
pleased to announce that the Company has received a $714,000 (RMB 4.5 million)
one-time tax free subsidy from the municipal government of Sanya City, Hainan
Province, China. 


This subsidy was granted to the Company as compensation for the negative effects
of the higher purchasing price that the Company paid for in additional volume of
natural gas beyond its annual 24 million M3 (approximately 847.2 million ft3)
Gas Quota for the fiscal year 2011. 


Currently, the Company has an annual 24 million M3 Gas Quota ("Gas Quota") which
was originally granted in 2006 and will expire in 2015. Since 2010, the demand
for natural gas in the Sanya region has exceeded the Company's Gas Quota. As a
result, the Company started to purchase additional volume of gas in the form of
Liquefied Natural Gas ("LNG") and/or Compressed Natural Gas ("CNG")
(collectively, the "Other Gas") at a higher market price to meet its increasing
demand for natural gas. 


Going forward, the Sanya municipal government agreed to implement a long term
scheme to address the gas shortage issue. The scheme includes (a) a long term
subsidy plan for the Company. The annual subsidy will be based on the Company's
actual purchase cost for natural gas beyond the Gas Quota for residential
customers' uses. The subsidy will be included in the municipal government's
annual fiscal budget; (b) the sales price for commercial customers can be
adjusted according to the cost of natural gas beyond the Company's Gas Quota.
The Company's proposal to raise the sale price is pending final approval by the
Hainan Provincial Pricing Bureau. 


"We are very pleased with the government subsidy for 2011 and the progress we
made to address the gas shortage issue in our operation in the Sanya region,"
Mr. Huajun Lin, the Chairman and CEO of the Company stated. "It reflects the
collective efforts by both the Company and the local government to address this
issue. We believe that this government subsidy and the Gas & Electricity
Exchange Program that we announced on February 22, 2012, together with other
long-term solutions, will enable us to keep pace with the increasing demand for
natural gas in the Sanya region."


About Changfeng Energy Inc.

Changfeng Energy Inc., is a natural gas service provider with operations located
throughout the People's Republic of China. The company services industrial,
commercial and residential customers, providing them with natural gas for
heating purposes and fuel for transportation. The Company has developed a
significant natural gas pipeline network as well as urban gas delivery networks,
stations, substations and gas pressure regulating stations in Sanya City &
Haitang Bay. Through its network of pipelines, the company provides safe and
reliable delivery of natural gas to both homes and businesses. The Company is
headquartered in Toronto, Ontario and its shares trade on the Toronto Venture
Exchange under the trading symbol "CFY". For more information, please visit the
company website at www.changfengenergy.com.


Forward-Looking Statements 

Information set forth in this news release may involve forward-looking
statements under applicable securities laws. The forward-looking statements
contained herein are expressly qualified in their entirety by this cautionary
statement. The forward-looking statements included in this document 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. 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. 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.

CF Energy (TSXV:CFY)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024