China ACM Wins Xi'an High-Speed Railway Concrete Service Contract
26 January 2010 - 1:26AM
PR Newswire (US)
- 12th Portal Concrete Mixing Station for High-Speed Railway
Construction - - Second Quarter Fiscal 2010 Revenues Grew 140% -
BEIJING, Jan. 25 /PRNewswire-FirstCall/ -- China Advanced
Construction Materials Group, Inc. (NASDAQ:CADC), ("China ACM" or
the "Company") a leading provider of ready-mix concrete in China,
today announced that the Company has signed a definitive contract
to provide its ready-mix concrete service to the high-speed railway
project between Xi'an and Ankang, the largest city in southern
Shanxi Province. China ACM will provide technical counseling for
the production of 270,000 cubic meters of ready-mix concrete.
Equipment for the portable mixers has arrived on site and
production will commence in February 2010. Duration of the project
is estimated to be 20 months. Revenues for this contract are an
estimated $3 million with an estimated $800,000 net income. Among
the 10 government-certified green concrete producers in China, only
China ACM is gaining access to high-speed railway projects. The
Company's proprietary technologies and industrial byproduct
recycling lowers cement consumption while providing high-quality,
ready-mix concrete exceeding the industry standard for durability
with greater salt-water resistance for environmentally friendly
infrastructure materials. The Company is currently involved in 11
on-going high-speed railway projects throughout the country
including the highly anticipated high- speed railway from Beijing
to Shanghai. Mr. Xianfu Han, Chairman and Chief Executive Officer
of China ACM, commented, "We believe the high-speed railway
expansion, which enables the Chinese government's plan to build out
infrastructure in the interior of China, represents a $15 billion
addressable market for concrete mixing services alone. 'Green'
concrete products like ours will have sustainable growth,
especially for government-sponsored projects, due to the
government's initiative and support to grow a low-carbon economy.
Our track record in high-speed rail in many key locations and the
signature architectures we have completed in Beijing, provide
endorsements to help China ACM win more contracts in the Chinese
high-speed rail market." The Company also announced that the
preliminary unaudited revenues for the second quarter of fiscal
year 2010, which ended on December 31, 2009, approximated $26
million, a 140% increase compared with the $10.8 million in the
same quarter last year. About China ACM China ACM, founded in 2002
and based in Beijing, China, is a leading producer of advanced
construction materials for large scale commercial, residential, and
infrastructure developments. The company is primarily focused on
producing and supplying a wide range of advanced ready-mix concrete
materials for highly technical, large scale, and environmental
construction projects. The company also aims to develop and produce
new and innovative environmentally conscious construction
materials. China ACM provides materials and services through its
six ready-mix concrete plant network covering Beijing metropolitan
area. China ACM owns one plant, leases three plants and has
technical services and preferred procurement agreements with two
other independently-owned plants. China ACM is ISO 9001 (product
quality), ISO 14001 (environmental safety), and ISO 18001
(employment environment safety) certified. Additional information
about the company is available at http://www.china-acm.com/. This
press release contains "forward-looking statements" within the
meaning of the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve known and
unknown risks, uncertainties and other factors that could cause the
actual results of the Company to differ materially from the results
expressed or implied by such statements, including changes from
anticipated levels of sales, future national or regional economic
and competitive and regulatory conditions, changes in relationships
with customers, access to capital, difficulties in developing and
marketing new products, marketing existing products, customer
acceptance of existing and new products, and other factors.
Additional Information regarding risks can be found in the
Company's Annual Report on Form 10K and in the Company's recent
report on Form 8K filed with the SEC. Accordingly, although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. The
Company has no obligation to update the forward-looking information
contained in this press release. Contact: Kevin Theiss Grayling
646-284-9409 DATASOURCE: China Advanced Construction Materials
Group CONTACT: Kevin Theiss, Grayling, +1-646-284-9409, Web Site:
http://www.china-acm.com/
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