Quarter & Activities Update
Melbourne, Jan 30, 2017 AEST (ABN Newswire) - Emefcy Group Limited (
ASX:EMC) is pleased to release the attached ASX Appendix 4C Statement of Cash Flows - December Quarter 2016.
Key achievements since 1 October 2016:
Emefcy made significant progress during the quarter in implementing the strategy to become a major supplier of MABR wastewater treatment solutions to rural villages in China:
Key strategic partnership distribution agreements for China:
- Beijing Sinorichen Environmental Protection Corp. Ltd. ("Sinorichen"), a leading firm specialising in wastewater treatment consulting and engineering services, throughout Beijing Province and Northern China;
- Jiangsu Jinzi Environmental Technology Company, Ltd. ("Jinzi"), a leading environmental protection company focusing on the design, building and operation of wastewater treatment systems for rural communities in the Central and Southern Provinces of China;
- China Gezhouba Group Investment Holding Co.,Ltd, (CGGC INV), a highly regarded global engineering group, is considering the utilisation up to 10,000 Membrane Aerated Biofilm Reactor (MABR) Modules in the Hubei, Hebei, and Guangdong Provinces in rural China in initial projects under negotiation.
These agreements are in addition to the strategic partnership established during the September quarter with Wuxi Municipal Design Institute.
Corporate structure and key appointments:
- A wholly owned subsidiary has been established in Hong Kong: "Emefcy Hong Kong Limited";
- The Company is well advanced in incorporating a Wholly Foreign Owned Entity in mainland China;
- A Technical Director for China has been appointed, undergone extensive training in Israel and is now working in China. A technical team has also been hired.
Manufacturing premises secured
As previously reported, Emefcy has signed an agreement to join the Changzhou Industrial Park in Jiangsu province, located an hour's train journey from Shanghai. The multi-year agreement includes a non-dilutive incentive package from the provincial government.
The lease period is four years commencing on February 10th 2017, to enable staff training and site preparation during the first quarter of calendar 2017 and anticipated arrival of the new China production line in the third quarter of calendar 2017.
The production facility comprises 3,200 square metres of floor space, which when fully set up, is sufficient to accommodate four production lines. The facility will enable Emefcy to rapidly increase production to meet anticipated demand from China and overseas.
The footprint of operating Emefcy MABR wastewater treatment solutions is expanding
The Company now has MABR plants operating in Israel, USVI and China with a further full scale plant to be installed in Ethiopia. Demonstration plants for Sinorichen, Jinzi and CGGC in China are due to be installed in Q1/Q2 2017.
Business update for the quarter
The construction and installation of the first North American Emefcy MABR wastewater treatment plant in the rural community of Bordeaux in St Thomas, US Virgin Islands was completed and commissioning commenced.
The business model for Water Reuse as a Service ("RaaS") has been extensively refined based on market research. California, which has been suffering from drought conditions for an extended period, is seen as an ideal target market for RaaS and lead generation is underway.
Emefcy's R & D program continues with a full scale working model of SUBRE - designed for installation in large existing municipal wastewater treatment facilities - currently undergoing field trials.
Key points to note in relation to the Appendix 4C include:
- Cash and cash equivalents at 31 December were USD 23.0M (30 Sep USD 25.4M).
- Net cash used in operating activities of USD 2.4M was comparable with the September quarter (USD 2.3M) and included increased manufacturing production volumes and China establishment costs.
- Net cash from financing activities of USD 202k was raised from the exercise of all remaining unlisted A$0.06 cent options.
- The ASX Appendix 4C Statement of Cash Flows is provided in link below, with all numbers in USD unless otherwise indicated.
To view the report, please visit:
http://abnnewswire.net/lnk/1CT76J91
About Fluence Corporation Ltd
Fluence Corporation (ASX:FLC) (OTCMKTS:EMFGF) is a leader in the decentralized water, wastewater and reuse treatment markets, with its Smart Products Solutions, including Aspiral, NIROBOX, NIROFLEX and SUBRE. Fluence offers an integrated range of services across the complete water cycle, from early stage evaluation, through design and delivery to ongoing support and optimization of water related assets, as well as Build Own Operate Transfer (BOOT) and other recurring revenue solutions. With established operations in North America, South America, the Middle East, Europe and China, Fluence has experience operating in over 70 countries worldwide and enables businesses and communities worldwide to maximize their water resources.
Further information can be found at https://www.fluencecorp.com/
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