Wowjoint Holdings Limited Entered Into Six New Contracts With A Total Value Of $6.2 Million
BEIJING, Sept. 24, 2013 (GLOBE NEWSWIRE) -- Wowjoint Holdings Limited ("Wowjoint" or the "Company") (OTC:BWOWF), China's innovative infrastructure solutions provider of customized heavy duty lifting and carrying machinery, today announced that it has entered into six new contracts for projects and services. The contracts are for projects in China and Malaysia with a total value of approximately $6.2 million. The contracts consist of two sales contracts and four technical service contracts, with approximately 50% of the contract value expected to be recognized in 2013.
"We're very pleased with our recent orders from China and Malaysia," stated Mr. Yabin Liu, Chief Executive Officer of Wowjoint. "These contracts demonstrate Wowjoint's continued pursuit of diversifying its revenue stream with the technical service sales and additional sales internationally. We are also happy to see an improvement in the domestic Chinese market and anticipate this trend will continue as infrastructure spending in China returns. We believe our world-class products and services, strong client relationships and our ability to provide unique solutions to our customers will result in continued growth both in China and international markets."
The first contract Wowjoint entered into is a sales contract with BBE Solutions Sdn. Bhd ("BBE") to provide one overhead launching gantry for the Klang Valley Mass Rapid Transit project in Malaysia. Production on the equipment began in July 2013 and delivery is expected to occur by December 2013. The value of the contract is $935,000 and is expected to be recognized as revenue in 2013. This is Wowjoint's second project in Malaysia, following the successful completion of a highway bridge construction project in 2012.Wowjoint also entered into a technical service contract with a subsidiary of China Railway Group, No. 1 Engineering Co., Ltd. of China Railway Group 25 th Bureau. The contract is to redesign Wowjoint's proprietary 900-ton special launching carrier to enable it to transport railway beams passing through the tunnel with a very small radius and a unique bridge erection curve radius. Production began in July 2013, with completion of delivery and installation of the product expected by December 2013. The value of the contract is approximately $389,000 and is expected to be recognized as revenue in 2013. The third contract Wowjoint entered into was a technical service contract with a subsidiary of China Railway Group, Haqi High-speed Rail Project Department 2 nd Branch, of China Railway Group 16 th Bureau. Wowjoint will provide the disassembly, maintenance, and transportation to a new jobsite and then reassembling a 900-ton special carrier and a 900-ton beam carrier. Service commenced in July 2013 and is expected to be completed by the end of September 2013. The total value of the contract is approximately $514,000 and will be recognized as revenue in 2013. In September 2013, Wowjoint entered into a sales contract with Hainan Huarun Shimei Bay Tourism Development Co., Ltd., a subsidiary of one of the largest state-owned enterprises in China, China Resources (Holdings) Co., Ltd. for an 80-ton marine hoist. The Company commenced production and delivery and installation is expected by the end of December 2013. The contract value is approximately $453,000 and is expected to be recognized as revenue in 2013.
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