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Clean Energy Technologies, Inc. Establishes Joint Venture with Shenzhen Gas with Plans to Acquire Municipal Natural Gas Utility Companies in China
COSTA MESA, Calif., Nov. 29, 2021 (GLOBE NEWSWIRE) -- Clean Energy Technologies, Inc. (OTCQB: CETY) (“the Company” or “CETY”), announces today the initiation
About this update from Clean Energy Technologies, Inc.
[{"type":"text","content":"COSTA MESA, Calif., Nov. 29, 2021 (GLOBE NEWSWIRE) -- Clean Energy Technologies, Inc. (OTCQB: CETY) (“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...