COSTA MESA, Calif., Nov. 29, 2021 (GLOBE NEWSWIRE) -- Clean Energy Technologies, Inc. (OTCQB: CE T Y ) ("the Company" or "CETY"), announces today the initiation of a joint venture with Shenzhen Gas with plans to acquire profit-generating municipal natural gas utility companies in China, which is expected to drive significant growth to CETY's top line and bottom line. The new venture follows CETY's recently announced acquisition of Leading Wave Limited, holding company of Jiangsu Huanya Jieneng New Energy Co., now a wholly owned subsidiary. The new venture follows CETY's recently announced acquisition of Jiangsu Huanya Jieneng New Energy Co., now a wholly owned subsidiary. Shenzhen Gas is listed on the A-share market in China with a market capitalization of roughly USD 3 billion and owns assets of about USD 780 million in the clean energy sector. The joint venture is expected to contribute approximately USD 12 million in net income annually to CETY by 2024, with the Company owning a 49% stake in the joint venture.
The objective of the joint venture is to acquire natural gas utility companies and reach RMB 300 million (USD 47 million) in annual net profit within 3 years. Shenzhen Gas is expected to provide a line of credit to the joint venture to fully cover the acquisition cost at an annual interest rate of below 5%.
CETY is already in discussions and conducting due diligence on two target companies that have a combined valuation of approximately RMB 700 million (USD 110 million) and have a combined annual net profit of approximately RMB 70 million (USD 11 million). Based on these two targets, CETY expects the joint venture to contribute approximately USD 2.9 million of net income to CETY in 2022.
The partnership with Shenzhen Gas is also expected to provide cross selling opportunities for CETY's heat-to-power product as Shenzhen Gas operates many waste to power facilities in China.
"This joint venture represents a significant opportunity for CETY, as it very rapidly brings additional revenue to the Company while positioning us to create multiple opportunities in multiple verticals in the Chinese energy market. We believe that this multi-faceted, global approach that incorporates conventional fuel sources like natural gas and alternative energy opportunities like heat-to-power provides prospects for increased penetration in a global market that is anxious for the applied utilization of renewable resources while maintaining a strategic approach to the conventional fuel market," commented Kam Mahdi, CETY's CEO.
About Clean Energy Technologies, Inc. (CETY)
Headquartered in Costa Mesa, California, Clean Energy Technologies (CETY) a low carbon energy company delivers power from heat and biomass with zero emission and low cost. CETY designs, produces, and markets clean energy products & solutions focused on energy efficiency and renewable energy. The Company's principal product is the Clean Cycle ™ magnetic bearing heat recovery generator, offered by CETY's subsidiary Clean Energy HRS, or Heat Recovery Solutions.
The Clean Cycle ™ system captures waste heat from a variety of sources and turns it into electricity that can be used or sold back to the grid. CETY's proven, reliable technology allows municipal, commercial, and industrial users with heat sources, such as from biomass, industrial processes, or energy production, to boost their overall energy efficiency with no additional fuel, no pollutants, and little ongoing maintenance. CETY's common stock is currently traded on the OTC Market under the symbol CETY.
This news release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.
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SOURCE Clean Energy Technologies, Inc.