Bimi International Medical Inc. (NASDAQ:BIMI)

Third Quarter 2018 Financial Results

• Total revenues were $1,102,693 and $1,814,111 for the three and nine months ended September 30, 2018, respectively, as compared to $1,141,920 and $3,855,365 for the corresponding three and nine months in 2017. Total revenues decreased by $39,227 and $2,041,254 for the three and nine months ended September 30, 2018, respectively, as compared to total revenues for the three and nine months ended September 30, 2017.
• The overall gross profit for the Company was $145,999 and $469,227 (13.24% and 25.86% margin) for the three and nine months ended September 30, 2018, respectively, as compared to $41,949 and $461,561 (3.67% and 11.97% margin) for the corresponding three and nine months in 2017, respectively, an increase of $104,050 and $7,666, or 248.04% and 1.66%, compared to the corresponding period in 2017.
• As a result of the factors mentioned above, net loss was $314,891 and $2,471,554 for the three and nine months ended September 30, 2018, respectively, as compared to net loss of $426,915 and $1,112,487 for the corresponding three and nine months in 2017, respectively, a decrease of $112,024 and an increase of $1,359,067, compared to the corresponding period in 2017.
  

2018 Second Quarter 2018 Financial Results

• Total revenues were $564,339 and $711,418 for the three and six months ended June 30, 2018, respectively, as compared to $1,677,404 and $2,713,445 for the corresponding period in 2017.
• The overall gross profit for the Company was $291,791 and 323,228 (51.70% and 45.43% margin) for the three and six months ended June 30, 2018, respectively, as compared to $293,830 and $419,612 (17.51% and 15.46% margin) for the corresponding three and six months in 2017, respectively, a decrease of $2,039 and $96,384, or 0.69% and 22.96%, compared to the corresponding period in 2017.
• As a result of the factors mentioned above, net loss was $1,651,624 and $2,156,663 for the three and six months ended June 30, 2018, respectively, as compared to net loss of $261,333 and $685,572 for the corresponding period in 2017, an increase of $1,390,291 and $1,471,091.

First Quarter 2018 Financial Results

• Total revenues were $147,079 and $1,036,041 for the three month ended March 31, 2018 and 2017, respectively, which decreased by $888,962, or 85.80% if compared total revenues for the three month ended March 31, 2017.
• The net loss was $505,039 and $424,239 for the three month ended March 31, 2018 and 2017, respectively, which increased by $80,800 if compared to net loss for the three month ended March 31, 2017.

The decrease in the total revenues was due to the the delivered inventories in the end of 2017 were recognized without the invoices as the revenues of 2017. As a result, the Company deducted these revenues that have been recognized as the revenues of 2017 when received the invoices in the first quarter of 2018.

SHENYANG, China, March 22, 2018 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that the Company signed a securities purchase agreement with a Chinese investor whose name is Yongquan Bi. According to this agreement, the Company issued 500,000 shares of its Common Stock to him at a purchase price of $1.00 per share. The issuance of the shares was a private placement.

Mr. Yongquan Bi serves for Dalian Boqi Group as the board director.

The purpose of the issuance is to increase the working capital for the Company.

SHENYANG, China, Aug. 17, 2017 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a strategic cooperation agreement with China social welfare foundation water fund.

According to this agreement, NF Energy will actively take part in the projects related to the "one belt and one road" strategy that will be planned and designed by this fund, including earlier stage demonstration, project implementation, project management and tracking services.

China social welfare foundation water fund is a subsidiary of China social welfare foundation, which is governed by the Ministry of Civil Affairs. The water fund is committed to promoting water knowledge and water culture to encourage ecological protection of water resources and reduce environmental pollution so as to make more people participate in public welfare undertakings.

Second Quarter 2017 Financial Results

• Total revenues were $1,677,404 and $2,713,445 for the three and six months ended June 30, 2017, respectively, as compared to $683,754 and $2,244,414 for the corresponding period in 2016. Total revenues increased by $993,650 and $469,031, or 145.32% and 20.90%, for the three and six months ended June 30, 2017, respectively, as compared to total revenues for the three and six months ended June 30, 2016.
• The net loss was $261,333 and $685,572 for the three and six months ended June 30, 201,7 respectively, as compared to net loss of $276,493 and $819,641 for the corresponding period in 2016, a decrease of $15,160 and $134,069, respectively.

Speaking on behalf of the Company, Mr. Gang Li, Chairman and CEO, said, "The increase in both total revenues and gross profit in second quarter 2017 were mainly due to the delivery of the products relating to the construction of the LXB Water Supply Project and the increase in our orders this year, especially our service revenues, which significantly increased as compared with the corresponding period in 2016。However, the net loss is still be an important issue in the second quarter due to a significant increase in our general and administrative expenses."

SHENYANG, China, June 27, 2017 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a $600,000 sales contract with three companies to supply valves. According to the contract, the Company expects to deliver this equipment in the fourth quarter in 2017.

The three companies are China Nuclear Qiqihar Environmental Protection Technology Co. Ltd., for the first phase of an oxidation pond deep processing project; Chongqing Water Turbine Co., Ltd., for the Huangshan Dragon hydropower station renovation project in Vietnam; and Chongqing New Century Electrical Co. Ltd., for the NHESANJEN hydropower station renovation project in Nepal.

In order to attempt to achieve growth of the Company's business, the Company actively excavates the potential of the valve market, on the one hand, the Company plans to attract customers through manufacturing its advanced products, including smart flow control device, on the other hand, it is important to focus on overseas markets, especially the countries surrounding China, such as the two new orders from Chongqing, although the contract parties come from the domestic enterprises, the projects are located in neighboring countries. 

SHENYANG, China, March 31, 2017 /PRNewswire/ -- NF Energy Saving Corporation. (NASDAQ: NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today reported financial results for the fiscal year ended December 31, 2016.

2016 Annual Results Highlight:

• Total revenues were $6,041,261 and $6,714,869 for the years ended December 31, 2016 and 2015, respectively, which decreased by $673,608, or 10.03%, for the year ended December 31, 2016 compared to total revenues for the year ended December 31, 2015.
• The gross profit was 148,769 and $1,177,490 for the years ended December 31, 2016 and 2015, respectively, which decreased by $1,028,721, or 87.3%, for the year ended December 31, 2016 compared to gross profit for the year ended December 31, 2015.
• The net loss was $1,817,579 and $969,442 for the year ended December 31, 2016 and 2015, respectively, which increased by $848,137, or 87.5%, for the year ended December 31, 2016 compared to net loss for the year ended December 31, 2015.

Mr. Gang Li, Chairman and CEO of the Company, said, "2016 was a difficult period of recovery for the global economy. The Chinese domestic economy's downward pressure continued to increase and the downward trend was not reversed which led to a weak demand of investment in fixed assets as well as the lower requirement of valve products. Compared with last year, our revenues decreased and the net loss increased.

With regards to these multiple difficulties, the Company will actively take some measures. In 2017, in order to complete the Company's business development goals, we plan to adhere to the following measures:

Firstly, the Company will continue the valve design, manufacture and sales for its main business, improve the scientific and sustainable technology research and development system, consolidate the dominant position of water conservancy, electric power industry, from a single production sales model to the overall project contracting and engineering general contracting development model transformation, increase the size of the business, increase sales income; take advantage of both the domestic and international markets, and set up the construction of global marketing network system and business layout. At the same time, actively explore new industries by expanding new business platforms, increase the Company's new growth point from the existing business structure toward diversified development so as to become a company with a strong competitive advantage.

On the other hand, the orders related to the oversea markets has increased and the Company set up a new company named by "Nengfa Tiefa I&E Co., Ltd" in order to expand our oversea market based on "one belt one way" development strategy of the Chinese government. As a result, we believe that overseas markets will play a key role in our business in 2017."

Lastly, Gang Li, the Chairman and CEO of the Company said, "I have more confidence for the development of the Company in 2017, which is expected to lead to greater shareholder satisfaction."

SHENYANG, China, March 27, 2017 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that a new company was established recently.

Basing on the "one belt and one way" policy issued by the Chinese government, in order to expand the international market , a new company named "Liaoning Nengfa Tiefa Import&Export Co. Ltd" was set up. The new company will be responsible for all sales in overseas markets. "The product manufactured now is derived from two international contracts, India and Malaysia, which are going to be delivered by our company and thereafter, all orders coming from the international market will be dealt with by this company " Mr. Gonghaibo, the general manager of this company, said.

In recent years, NF Energy has actively expanded the overseas markets in order to increase its market share. Its products are exported to more than 40 countries, such as India , Philippines, Vietnam, Thailand, Russian and Italy etc. The quality of these products sold in these countries were approved by our clients in the local market.

SHENYANG, China, March 7, 2017 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a $220,000 sales contract with JATIGATE hydroelectric station, Indonesia to supply a project with butterfly valves. According to the contract, the Company will deliver this equipment in the first quarter in 2018.

This is the first exported contract signed in 2017 based upon the Chinese government's new developmental strategy. In 2017, except for increasing our market share in domestic market, it is very important to expand our overseas market this year, and even in the future, especially the countries along the route. The demand of those related companies in these countries will be combined with the Company's competitive advantage, not only to focus on the market, but also to innovate new products and technology in order to improve our reputation abroad.

SHENYANG, China, Feb. 28, 2017 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a $340,000 sales contract with Sinkiang Production and Construction Group to supply a project with butterfly valves. According to the contract, the Company will deliver this equipment in the third quarter in 2017.

This is the first contract signed in 2017 based upon China's "one belt and one road" as the developmental strategy in the future. In 2017, the Company intends to provide the growing opportunity for the local region in connection with this strategy. The Company believes the reputation of its brand will be increased along with our local projects. Not only to set up our project , but also to bring the construction maintenance and operation management to the local region in order to expand our market in the countries along the route.

SHENYANG, China, Jan. 19, 2017 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ:NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that recently Mr. Shiva, as the director of Indian Flucon International Co. Ltd., has visited the Company.

Gang Li, the Chairman of the Company, who talked with Mr. Shiva said, "as one of the largest companies devoted to the manufacturing of flow control equipment, NF Energy innovated many advanced flow control equipment in recent years, which led to set up its high reputation in the domestic market. Along with rapid development in China's economy as well as 'one belt and one road' as the new economic policy issued by the Chinese government, this Chinese product is more popular in the world, especially in the developing countries, such as India. Meanwhile, energy saving and emission reduction will play a key role in the global which I believe will increase product demand in the flow control equipment, so it may provide additional opportunity for us".

Mr. Shiva also visited the workshop in the Company's industrial park and the Company's technicians introduced the production line to him.

After his visit, Mr. Shiva said that he is interesting in the large scale butterfly and inlet valves and believes that the two companies could cooperate each other.

Third Quarter 2016 Financial Results

• The total revenues were $1.4 million and $ 3.64 million for the three months.
• Gross loss was $142,664 and $233,171 for the three months and nine month ended September 30, 2016.

At present, our signed contracts have a total value of $4.12 million, an increase when compared with the corresponding period last year, which was disclosed in our public filings. It is anticipated that the products relating to these contracts will be manufactured in the first quarter next year.

General speaking, our products have a competitive advantage in the market considering the weak manufacturing industry in the current economy. As a result, I have more confidence in our Company, meanwhile I hope that everyone also has confidence, including our shareholders".

SHENYANG, China, Nov. 1, 2016 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a total of $1.13 million in sales contracts with two companies in China.

The two companies are 2*660 MW generator project of North China Power Engineering (Beijing) Co., Ltd and the water supply project of one economic-technical development zone located in Inner Mongolia. The amount of the two contracts are $740,000 and $390,000, respectively.

The total order includes electric butterfly valves, hydraulic control butterfly valves, sluice valves and check valves. All products are anticipated to be delivered in the first quarter of 2017.

SHENYANG, China, Sept. 20, 2016 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a $1.7 million sales contract with the Dahufang reservior, Liaoning Province, to supply the phase II project with gate valves . All products are anticipated to be delivered in December, 2016.

The water diversion project relating to the Dahuofang reservior is one of the biggest water project in Liaoning Province. Its purpose is to resolve the water shortage for six cities in the middle of Liaoning Province in China, such as Fushun, Shenyang, Liaoyang, Anshan, Yingkou and Dalian, which are the most developed cities in the province.  The total length is 260 km. The Company delivered valves for the phase I of this project of approximately $4.7 million between 2008 and 2009, The construction of the phase I has been completed and has delivered water for Shenyang city with 1.3 million tons daily. The phase II project plans to resolve the drought in some region, such as Yingkou and Dalian. The Company expects the more contacts will be signed along with the construction of this project in future.

SHENYANG, China, Sept. 7, 2016 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the "Company"), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a total $700,000 of sales contracts with two companies in China.

The two companies are the circulating water system and fluid control slowly-closing device derived from the thermolelectric unit relating to light alloy material project and Guangxi Hualei New Material Co., Ltd and the Yanshan lake retrofit project of Harbin steam turbine Co., Ltd, respectively.

The total order includes the butterfly valves, the check valves and the electric vacuum regulating valves with DN1800 and DN3000, respectively. All products are anticipated to be delivered in November, 2016.

SHENYANG, China, Aug. 25, 2016 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a $670,000 sales contract with Sinkiang Jinlong Electric Power Co. Ltd to supply a project with 6 sets of welded ball valves.

These products are mainly used for a project relating to 2*100 MW back pressure heating transmission unit. According to the contract, the Company will deliver this equipment in October, 2016. 

Second Quarter 2016 Financial Results

• The total revenues were USD0.68 million and USD2.24 million for the three months and six months ended June 30, 2016,
• Gross profit was USD57,668 and (USD90,507) for the three months and six months ended June 30, 2016.

Speaking on behalf of the Company, Mr. Gang Li, Chairman and CEO, said, "The decrease in both total revenue and gross profit in the second quarter of 2016 was mainly due to the construction postponement of the Northwestern Liaoning Water Supply Project, which delayed the delivery of the Company's products. At present, these products are being delivered to our client. According to the revised schedule with the client, delivery will be completed prior to January 2017. Therefore, these products will be accrued to product revenue in following quarters.

SHENYANG, China, Aug. 18, 2016 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a total $600,000 sales contracts with four companies in China.

The four companies are the hydroelectric Retrofit project of Anhui Huangneng Liangting Co., Ltd, the condenser circulating water project of Jiangsu Shenhua Guohua Chengjiagang Co., Ltd, the Zambian exported project of Shandong electric power construction Co., Ltd, and the pipeline reinforcement project of Shenzhen Jinrun construction Co. Ltd.

Among these companies, Anhui Huangneng Liangting Co., Ltd, Jiangsu Shenhua Guohua Chengjiagang Co., Ltd and Shandong electric power construction Co., Ltd are stated-owned companies.

The total order includes electric butterfly valves and hydraulic control butterfly valves with DN400-DN2800. All products are anticipated to be delivered between September and October, 2016.

Second Quarter 2016 Financial Results

• The total revenues were USD0.68 million and USD2.24 million for the three months and six months ended June 30, 2016,
• Gross profit was USD57,668 and (USD90,507) for the three months and six months ended June 30, 2016.

Speaking on behalf of the Company, Mr. Gang Li, Chairman and CEO, said, "The decrease in both total revenue and gross profit in the second quarter of 2016 was mainly due to the construction postponement of the Northwestern Liaoning Water Supply Project, which delayed the delivery of the Company's products. At present, these products are being delivered to our client. According to the revised schedule with the client, delivery will be completed prior toJanuary 2017. Therefore, these products will be accrued to product revenue in following quarters.

SHENYANG, China, August 8, 2016 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company, NASDAQ: NFEC) a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed export sales contracts with five companies located in four countries to supply the Company's flow control devices. The contracts signify that the Company's flow control products and services are competitive in the global market.

The four companies come from three countries, including two Indian companies: BHARA heavy electricals limited and JHAJJAR electricals limited, Turkish KAZAN combined cycle power project and Malaysian Chuah Valves Manufacturing Sdn Bhd.

In 2014, the Company established a special internet marketing department to promote overseas sales and has created a website called "FMYZT.COM" as a global marketing platform for its valve products pertaining to the Company's strategic business development plan. It is hoped that new communication media, such as the website and WeChat, can help enhance the Company's brand name globally.

NF Energy also plans to establish a new business center in Southeast Asia and expand its distribution network in ASEAN countries, such as India, Malaysia and Indonesia, while attempting to penetrate markets in Australia and New Zealand via sales of its competitive butterfly valves. It is expected that this strategic move will help increase the Company's market share in Southeast Asia, while highlighting its brand and competitiveness in the world.

Item 8.01. Other Events

On January 11, 2016, The NASDAQ Stock Market (“Nasdaq”) notified NF Energy Saving Corporation (the “Company”) that for the previous 30 consecutive business days the Company was not in compliance with Rule 5550(a)(2) of the Nasdaq Listing Rules. Rule 5550(a)(2) requires the Company’s common stock to maintain a minimum bid price of $1.00 per share. Therefore, under Nasdaq’s continued listing requirements, a deficiency existed. The notification had no immediate effect on the listing of the Company’s common stock.

Nasdaq Listing Rule 5810(c)(3)(A) provided the Company with an automatic grace period of 180 days, which ended on July 11, 2016, in order to regain compliance with the minimum bid price requirement. On July 13, 2016, Nasdaq notified the Company that while the Company had not regained compliance with the minimum bid price requirement, it was eligible for an additional 180 day grace period, until January 9, 2017, in which to regain compliance with the minimum bid price requirement.

Nasdaq has informed the Company that in the event the Company is unable to regain compliance with the minimum bid price requirement by January 9, 2017, Nasdaq will provide written notification to the Company that its securities will be delisted. At that time, the Company may appeal the delisting determination to a Nasdaq Hearings Panel. The Company will monitor the closing bid price of its common stock and will consider various possible options if it does not appear that it will regain compliance with the minimum bid price requirement by January 9, 2017.

First Quarter 2016 Financial Results

• The total revenues were $1,560,660 for the three months ended March 31, 2016, as compared to $1,181,075 for the corresponding period in 2015, Total revenues increased by $379,585, a 32.14%.
• Gross loss was $148,175 for the three months ended March 31, 2016.

Speaking on behalf of the Company, Mr. Gang Li, Chairman and CEO, said "The increase in total revenues was due to the delivery of the products from the earlier postponed LXB Water Supply Project. However, due to the longer production cycle of the LXB Water Supply Project, uneven material inputs, coupled with the increased depreciation of the property and equipment, the gross margin is lower in the period. We think the situation will improve if production is increased. In 2016, the Company received contracts from 2*600 MW ultra supercritical air coding generating unit relating to "Sinkiang's electric power transmission construction", the 2*660MW project of a subsidiary of State Grid, Shanxin, a 2*660MW low calorific coal power generation project and the Hubei Huanggang cogeneration project. All of those products should be delivered to our customers in the second and third quarters of this year. Thanks to its high quality products and reputable customer service, NF Energy received several new orders lately, despite the current slowing down of China's economy.

SHENYANG, China, April 12, 2016 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed sales contracts for a total amount exceeding $1.82 million with five companies to supply the Company's flow control device.

In March, the Company's newly received orders are from the 2*660MW project of a subsidiary of State Grid, Shanxin, a 2*660MW low calorific coal power generation project and the Hubei Huanggang cogeneration project etc.. All of the products should be delivered to our customers in the second and third quarters of this year. Thanks to its high product quality and reputable customer service, NF Energy received several new orders lately, despite the current slowing down of economy in China.

As of now, the Company has documents prepared to bid in April and March for 16 more new projects.

SHENYANG, Liaoning Province, China, March 30, 2016 /PRNewswire/ -- NF Energy Saving Corporation. (NASDAQ: NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today reported financial results for the fiscal year ended December 31, 2015.

2015 Annual Results Highlights:

• Total revenue was $6.71 million for the fiscal year ended December 31, 2015.
• Gross profit was $1.17 million for the fiscal year ended December 31 2015.

Highlights in the business operations of the Company during 2015 include:

1. The LXB sale contract signed by the Company was completed by the end of 2015 and is being installed according to its schedule. Unfortunately, the part of the product manufacturing for this project cannot be shipped to them, which led to an inability to recognize revenues in 2015 of $3 million due to the schedule related to this project having been changed.
2. There was no defect or complaint with respect to our shipments, the quality of the product was significantly improved in 2015.
3. The dual way sealed butterfly valve and "M type high torque flow control device" manufactured by the Company was very popular in the Chinese domestic market in 2015.
4. Currently, the number of signed contracts increased by 50% when compared with the corresponding period in 2015, and the number of exported contracts also increased. The Company guarantees the product's quality and seeks competitive pricing for our clients. On the other hand, the Company would like to improve the capital turnover so as to ensure the steady operation.

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

On January 11, 2016, The NASDAQ Stock Market (“Nasdaq”) notified NF Energy Saving Corporation (the “Company”) that for the previous 30 consecutive business days, the Company was not in compliance with Rule 5550(a)(2) of the Nasdaq Listing Rules. Rule 5550(a)(2) requires the Company’s common stock to maintain a minimum bid price of $1.00 per share. Therefore, under Nasdaq’s continued listing requirements, a deficiency existed. The notification has no immediate effect on the listing of the Company’s common stock.

Rule 5810(c)(3)(A) of the Nasdaq Listing Rules provides the Company with a grace period of 180 calendar days, ending July 11, 2016, during which it may regain compliance with the minimum bid price requirement. If before July 11, 2016, the closing bid price of the Company’s common stock is at least $1.00 for a minimum of 10 consecutive business days, the Company will return to compliance. If the Company does not achieve compliance by that date, then Nasdaq will notify the Company that its common stock is subject to delisting from the Nasdaq Capital Market.

In the event the Company becomes subject to delisting, Nasdaq may, in its discretion and assuming the Company can meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement, grant the Company an additional 180 days in which to regain compliance, otherwise the Company may appeal the delisting determination to a Nasdaq Hearings Panel. The Company will monitor the closing bid price of its common stock and will consider various possible options if it does not appear that it will return to compliance within the applicable grace period.

SHENYANG, China, Jan. 4, 2016 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it has recently signed a $1.36 million sales contract with Huadong Power Design Institutes Co. Ltd.,to supply 14 sets of flow control equipment for a project.

The total order includes 6 sets of DN2400 butterfly valves, with energy storage tank type hydraulic control, and 8 sets of DN2800 electric butterfly valves. According to the contract, the Company will deliver the equipment in two shipments on August 25, 2016 andOctober 1, 2016 respectively.

This equipment will mainly be operated in desulfurization relating to 2*1000MW power facilities in Guangxi Shenhua Guohua Beihai Power Plant, a subsidiary of Huadong Power Institutes Co.Ltd.

SHENYANG, China, November 17, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or "the Company"), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced today on the new contracts signed.

The Company is ready to complete its final delivery between November and December as planned for the previously announced $15 million order from the LXB Water Supply Project, the largest single one in value the Company has received in recent years, as reported in NF Energy's news release on June 5, 2014 and May 27, 2015, respectively. Thanks to the quality of its products and reputable customer service, NF Energy received several new orders, despite the current slowing down of China's economy.

With a total contract value of approximately $2.86 million, the Company's newly received orders are from Hohhot Jianshan Power Plant, Singkiang Production & Construction Corp., Fujian Putian Drainage Co. Ltd., Shanxi Jinneng Debao Thermal Power Co., China Water Resource and Hydropower Engineering Co. Ltd., and Henan Puyang Yuneng Development Co. Ltd., plus the TENCEDIL Inc. of Italy and the Piping Market Center of Saudi Arabia. In addition, the Company has documents prepared to bid in December, 2015 for 10 more new projects.

• Total revenues were $1,309,729 and $2,490,804 for the three and six months ended June 30, 2015, respectively. However, the net profit improved as compared with the corresponding period in 2014, the net loss decreased by more than 50% for the three and six months ended June 30, 2015 as compared to the prior period.
• The overall gross profit for the Company was $346,630 and $633,178 for the three and six months ended June 30, 2015, respectively, compared to $105,074 and $510,835 for the corresponding three and six months in 2014, respectively, an increase of $241,556 and $122,343, or 229.89% and 23.95%, compared to the corresponding period in 2014. The main reason was due to a greater mix in sales of products with high margin ratios. 

General speaking, the overall financial results of the second quarter has improved if compared with the same period last year. The decrease in total revenues was due to the postponed progress of construction from one of our main clients, which result in delayed shipments and a corresponding  decrease in product revenues. However, these product revenues will be recognized in the third quarter.

SHENYANG, China, August 14, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today reported financial results for the three and six months ended June 30, 2015.

2015 Second Quarter Results Highlights:

• Total revenues were $1,309,729 and $2,490,804 for the three and six months ended June 30, 2015, respectively. However, the net profit improved as compared with the corresponding period in 2014, the net loss decreased by more than 50% for the three and six months ended June 30, 2015 as compared to the prior period.
• The overall gross profit for the Company was $346,630 and $633,178 for the three and six months ended June 30, 2015, respectively, compared to $105,074 and $510,835 for the corresponding three and six months in 2014, respectively, an increase of $241,556 and $122,343, or 229.89% and 23.95%, compared to the corresponding period in 2014. The main reason was due to a greater mix in sales of products with high margin ratios.
• As far as the accounts receivable is concerned, up to July 30 2015, the Company has subsequently recovered approximately 16% of accounts receivable and retention receivables, as of June 30, 2015, increased by more than 100% as compared with 7% for the same period last year. The main reason was due to the enhanced collection of accounts receivable.

General speaking, the overall financial results of the second quarter has improved if compared with the same period last year. The decrease in total revenues was due to the postponed progress of construction from one of our main clients, which result in delayed shipments and a corresponding decrease in product revenues. However, these product revenues will be recognized in the third quarter.

Disclosure: GeoInvesting is providing this information for your edification and in no way has any affiliation with any promoters and/or newsletters disseminating information on NFEC, nor is GeoInvesting being paid to post this information. At times, the GeoTeam may trade P&D's on a long or short basis, depending on how we feel the momentum of the stocks will be affected by the efforts of stock promoters and any ensuing dumps.  

SHENYANG, China, May 27, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, announced today that the first shipment of valve products for the LXB water supply project has been delivered. Local government officials and representatives of LXB were present at a Product Delivery Celebration Ceremony on May 22, 2015.

As previously disclosed, the contract, which was signed with LXB in 2014 and has a total contract value of approximately $14.4 million, is for the Company's large diameter alloy steel valves between the DN3200 and DN3800 models, each of which weighs more than 70 tons on average. 7 electric butterfly valves have been delivered so far. NF Energy has applied new technologies in the manufacturing of these valve products which has led to three patents. The delivered products completely passed the acceptance test.

First Quarter 2015 Financial Results

• The total revenues were $1.18 million for the three months ended March 31, 2015,
• Gross profit was $0.28 million for the three months ended March 31, 2015.

Speaking on behalf of the Company, Mr. Gang Li, Chairman and CEO, said "The decrease in both total revenues and gross profit in first quarter 2015 were mainly due to the postponement in construction of the LXB Water Supply Project, which delayed the delivery of the Company's products. However, it is expected that the Company's overall gross profit will improve in following second and third quarter along with deliveries of products to the LXB Water Supply Project after communicating with our client."

Item 1.01 — Entry into a Material Definitive Agreement

 
On May 7, 2015, NF Energy Saving Corporation (the “Company”) entered into an Exchange Agreement with Cloverbay International Ltd. (“Cloverbay”), a company controlled by Gang Li, the Company’s Chairman and Chief Executive Officer, and Lihua Wang, the Company’s Chief Financial Officer, to convert an aggregate of $1,718,333.33 of principal amount of debt plus accrued and unpaid interest thereon into 834,142 shares of the Company’s common stock at a conversion rate of $2.06 per share. The debt was represented by a promissory note issued by the Company to Cloverbay in March 2011.

SHENYANG, China, April 21, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced today that on 14 April, 2015, the Company signed a $420,000 sales contract in Shangrao City, Jiangxi Province, China, to provide flow control equipment to the city's drinking water supply system relocation project. This is the first contract the Company entered in 2015 for municipal water pipeline network construction business.

"Construction of underground municipal infrastructure", says Mr. Gang Li, Chairman of the Company, "will be an important field of investment in China. Therefore, the potential demand for valves, a key element for the underground construction engineering, is really huge."

It was reported that at a recent meeting on the economy of the northeast region of China, a key government official said, the central government will support local governments to launch some major infrastructure projects and increase investment in urban traffic systems, waterworks and underground pipelines etc. to improve municipal infrastructure and public services.  Some projects planned for development between 2016-2020, can be kicked off ahead of schedule if conditions are ready and immediate services are demanded.

Under a policy of China's State Council announced last year, urban underground piping networks are expected to be improved nationwide within ten years. Shenyang, the home city of NF Energy, was selected by the Ministry of Construction as a pilot city of this plan. As a well-known manufacturer and supplier of large-diameter flow control devices in northeast China, we are striving actively on this opportunity for business development of our Company.

SHENYANG, China, April 9, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced today that it has recently signed a $98,000 sales contract with the Chifeng Xincheng Thermal Power Corp., a subsidiary of China Power Investment Corporation (CPIC), in connection with a new 2 x 300 MW power plant.

The sold equipment includes 2 sets of DK943X-25C electric vacuum butterfly valves. The order is anticipated to be delivered in July this year.

CPIC is one of the top five electricity producers in China. Since its establishment in 2006, the Company has supplied its flow control products to major thermal power plants and hydraulic power facilities of the top five electricity producers.

The Company plans to further penetrate into the traditional power generation facility retrofit market as well as new power plants with cutting edge technologies. The first quarter of 2015 has seen the Company enter into contracts of $0.5 million with power producer clients including Jinghai Coal Gangue Power Co. Ltd, Jilin Baicheng Power Co. and Wuhu Electric Power Company.

SHENYANG, China, April 9, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced today that it has recently signed a $98,000 sales contract with the Chifeng Xincheng Thermal Power Corp., a subsidiary of China Power Investment Corporation (CPIC), in connection with a new 2 x 300 MW power plant.

The sold equipment includes 2 sets of DK943X-25C electric vacuum butterfly valves. The order is anticipated to be delivered in July this year.

CPIC is one of the top five electricity producers in China. Since its establishment in 2006, the Company has supplied its flow control products to major thermal power plants and hydraulic power facilities of the top five electricity producers.

The Company plans to further penetrate into the traditional power generation facility retrofit market as well as new power plants with cutting edge technologies. The first quarter of 2015 has seen the Company enter into contracts of $0.5 million with power producer clients including Jinghai Coal Gangue Power Co. Ltd, Jilin Baicheng Power Co. and Wuhu Electric Power Company.

SHENYANG, China, March 27, 2015 /PRNewswire/ - NF Energy Saving Corporation. (NASDAQ: NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today reported financial results for the fiscal year ended December 31, 2014.

2014 Annual Results Highlight:

• Total revenues were $9.98 million for the fiscal year ended December 31, 2014, an increased of 75.88% from 2013.
• Total product revenue was $9.74 million for the fiscal year ended December 31, 2014, an increase of 107.58% from 2013.
• Gross profit decreased to $1.48 million or 4% compared with the last fiscal year.
• Net loss was $0.61 million for the fiscal year ended December 31, 2014.

The increase of revenue was due to substantial growth of product sales compared with 2013. In 2014, we signed supply contract with the Chinese Aviation Company for their desulfurization, denitration and dust removal systems of 660T/h boiler room. This contract alone contributed over $2 million sales in 2014. We expect to sign more contracts in the saving energy area next year.

The decrease of gross profit in fiscal year 2014 was primarily due to: 1) Most of the energy saving products were new products, so the cost of R&D and other expenses were incurred in this fiscal year. 2) As the Strategy of the Company was to expand energy saving market share in 2014, we reduced the gross margin of our products. We expect the gross margin will grow quickly as the LXB Water Supply Project starts to manufacture and supply in 2015. At the same time, we will continue to explore more opportunities in the energy saving market that focus on desulfurization and denitration areas, and to increase the influence of the company in the energy saving industry. The Company expects that the gross margin of such products will increase in next year.

Mr.Gang Li, Chairman of the Company said, "We are very glad that revenue increased sharply in fiscal year 2014. Though the cost of R&D and some one-time expenses hedged profits, we obtained corresponding market share in the energy saving industry. With our progress on technology and market development, energy saving products and services of our Company will be more competitive and profitable in the future."

SHENYANG, China, March 3, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a $135,200 sales contract with Harbin Runhe Technology Co. Ltd., to supply a project with 13 sets of flow control equipment.

The total order includes 4 sets of DK961X-2.5CD DN2200 electric vacuum butterfly valves, 4 sets of D963H-16c DN200 condensing electric butterfly valves, 4 sets of D963H-16c DN200 electric vacuum butterfly valves and 1 set of D963H-16c DN350 electric butterfly valves. Delivery is expected on or about 20 March, 2015.

SHENYANG, China, Jan. 30, 2015 /PRNewswire/ -- (Clarifying press release on January 27, 2015) NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced that it recently signed a $1.12 million sales contract with Gansu Coal Group, to supply a project with 23 sets of flow control equipment including electric butterfly valves and shutoff valves, sluice valves check valves, and steam trap valves, and more before the end of 2015.

This combined-heating-&-power (CHP) project has two units of 350 MW coal-fired, air-cooling power generation and heat supply system, in an area of 470,000 square meters. Employeeing advanced technologies for significant water and energy saving, this project will generate, upon commencement, 38.1 billion kWh of power yearly, replacing more than 180 units of small low-efficiency coal fired boilers, and to supply heating to 10 million squares of buildings. The total investment of this environment-friendly project is 3 billion Chinese yuan, of which the Company's valves comprise a part.

SHENYANG, China, January 27, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, today announced that it has recently signed a sales contract with Gansu Coal Group, to supply a project with 23 sets of flow control equipment including electric butterfly valves and shutoff valves, sluice valves check valves, and steam trap valves, ect. before the end of 2015.

This combined-heating-&-power (CHP) project has 2 units of 350 MW coal-fired, air-cooling power generation and heat supply system, in an area of 470,000 square meters. Employeeing advanced technologies for significant water and energy saving, this project will generate, upon commencement, 38.1 billion kWh of power yearly, replacing more than 180 units of small low-efficiency coal fired boilers, and to supply heating to 10 million squares of buildings. The total investment of this environment-friendly project is 3 billion Chinese yuan.

SHENYANG, China, January 21, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, announced today that the Company has recently entered into a sales contract to supply its DN2600 butterfly valves to TECNEDIL INTERNATIONAL SRL, an Italian company. This is the first export contract of NFEC in 2015. Despite its small amount of 187k Euros, the Company believes that this contract will lead to expanded sales of the Company's products in the world's first tier market.

"In 2014, the Company established a special internet marketing department to promote overseas sales and has created a website called 'FMYZT.COM' as a global marketing platform for its valve products pertaining to the Company's strategic business development plan. It is hoped that new communication media, such as the website and WeChat, can help enhance the Company's brand name globally. NFEC also plans to establish a new business center in Southeast Asia and expand its distribution network in ASEAN countries, while attempting to penetrate new markets in Australia and New Zealand. It is expected that this strategic move will help increase the Company's market share in Southeast Asia, while highlighting its brand and competitiveness in the world", said Mr.Li Gang, CEO of the Company .

SHENYANG, China, January 15, 2015 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving solutions and service provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced today that its first clean air boiler retrofit project for an aircraft manufacturer in Xi'an per an early 2014 contract, has been qualified by the local EPA.

According to a comprehensive test by the Xi'an Municipal EPA in December, 2014, the two units of defitration, dust removal and desulfurization systems installed to the aircraft plant's 2x100 ton space heating coal fired boilers proved to be running in good condition. The system's dust removal efficiency, denitration efficiency and desulfurization are 99.99%, 99% and 90% respectively.

• Total revenue for the third quarter grew 120.3% to $2.94 million from $1.33 million in the third quarter last year.
• Net income for the third quarter was $327,684, or $0.06 per fully diluted share, demonstrated a very positive business improvement from a net loss of $25,262, or -$0.005 per fully diluted share from the third quarter of 2013.

Mr.Gang Li, Chairman of the Company commented, "for the three months ended September 30, 2014, we were glad to see that both revenue and profit were significantly increased by 120% and 290% respectively as compared with the corresponding period of last year. This is mainly due to our patented product ( dual-way sealed curtains device) , which kept expanding. The two projects from North-West and Beijing are about to complete in the fourth quarter. Meanwhile, we anticipate that our environmental products will also be able to contribute profit in the next quarter. Thus, we believe our revenue and profit will increase with a higher growth rate in the fourth quarter and grow dramatically for the whole year as well. " 

SHENYANG, China, October 29, 2014 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today announced that the Company established the new marketing channel.

On 19, October 2014, NF Energy held a brand promoting activity with seven manufacturers related to the valve industry in Xian City, China, including Lanzhou High Pressure Valve Group, Tianjin Weisen Co. Ltd. and German Krombacher etc. The activity was overseen by the new general manager appointed by NF Energy and the famous emcee coming from the local television station. The main purpose of this activity is to enhance cooperation with the other manufacturers in this field as well as brand promoting and achieving development in the northwestern market through resource sharing and complementary advantages. Meanwhile, NF Energy will also change its traditional marketing model and the new marketing model would be formed through dominated power supply , water supply , gas supply. At the same time, NF Energy also plans to take joint bids with the other manufacturers in this field so as to obtain a bigger share of the market.

SHENYANG, China, September 25, 2014 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today announced that it recently signed a RMB 3.64 million (equivalent to $0.6 million) contract to supply flow control systems to Shanxi Xinyou Group's 2 x 660 MW power plant in Qitai County of Xinjiang Autonomous Region in Western China.

This power plant is a part of the coal-lime-electricity integration project invested by the Shanxi Jinyou Group as an endeavor for a circular economy.

Upon its completion, this project will not only satisfy the local people and enterprises' demand for electricity, but can also enhance the sustainable development of the local economy and significantly reduce pollution by optimizing utilization of local resources and integrating the production of coal, lime and electricity in one modern facility. This project is considered in China as a best practice of energy saving among regional industries.

SHENYANG, China, September 16, 2014 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today announced that the Company has established a special internet marketing department to promote overseas sales and has set up a website called "FMYZT.COM" as a global valve trade service platform as part of its strategic development plan.

With a variety of technologies such as Linux, apach, tomcat, php, java, mysql and phpmyadmin integrated into its E-commerce platform, the Company can now have its valves sold overseas via personal computers and mobile phones. In addition, the Company has cooperated with various business networks platforms such as the Thomas.com in USA and ECPLAZA in South Korea, to effectively develop the overseas markets.

To date, the Company has delivered its hydraulic control butterfly valves to many projects in different countries, including the Jambi-LPPPI TG28 project in Indonesia; the 2 x 660 MW Jiajia Coal-fired Power Plant in India; the 2 x 150 MW Maamba coal-fired power plant in Zambia; and the 1 x 300 MW coal-fired power plant in Stanari, Bosnia. In 2014, the Company has recorded a total of $1.5 million from export sales.

Mr. Gang Li, CEO of NFEC said, "We hope that internet, WeChat and other new E-marketing tools can help broaden our sales networks, enhance the reputation of our products, promote the brand name, and help boost our export business as quickly as we expect."

SHENYANG, China, September 4, 2014 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today announced that the Company won three heat supply retrofit contracts.

Recently, the Company won three contacts from the North United Power Co. Ltd (NUP) to sell its products to heat supply retrofit projects at NUP's subsidiaries of the Huhehot Thermal Power Plant and Baotou Thermal Power Plant. The contracts' total value is close to $1 million.

Located in Huhehot City, Inner Mongolia, NUP is a large-scale energy enterprise jointly owned by Inner Mongolia Electric Power Investment Co. Ltd, Huaneng Group China, Shenhua Group and Hong Kong CITIC Pacific Company. With power generation and supply of heat, gas and coal as its main business, NUP produces electricity for Inner Mongolia and the Beijing-Tianjin-Tangshan triangle region, and also supplies heat to urban communities and gas to industrial clients in major cities of Inner Mongolia.

SHENYANG, China, Aug. 27, 2014 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today announced that the Company has developed a new solution to the disposal of landfill leachate. It has entered a new market in environmental protection.

Leachate Concentration Harmless Dryer, invented by the Company, is a device to dry leachate in a sealed environment and discharge dehydrated sludge by auger conveyor. Compared with normal leachate dryer devices, it takes tail gas to recompress and return to the device as a heat source. The methods used by our device will not only save energy and expense, but also won't cause any additional pollution to the environment in the whole process.

A recent test of our Leachate Concentration Harmless Dryer at a landfill site in Jilin Province indicates that the patent-pending device has achieved high scores in all performance requirements.

Containing a variety of toxic and harmful ingredients, landfill leachate is a major source of contaminates in soil and underground water. During the long history of China's environmental protection industry, this problem has not been solved. Now, the issue of leachate pollution can be effectively resolved by NFEC's solution with its Leachate Concentration Harmless Dryer.

According to estimates from a Dalian environmental protection company, the provincial capitals in China alone already need at least 500 sets of the device per year. In fact, the remaining cities in China have the same requirement. At the current price of US$0.3 million a set, the potential demand represents more than US$500 million per year in China.

NFEC plans to commence production of 30 sets of the device and will fulfill a US$9 million order with separate deliveries before the end of 2015. It is expected that the 30 sets will be deployed at 10 landfill sites in the country.

"The disposal of garbage is a large market and industry," says Mr. Gang Li, Chairman of NFEC, "We have entered this market with new products and innovative technologies. This will surely broaden business opportunities for our company."

NF ENERGY SAVING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF

OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

Management Discussion and Analysis

Revenues

Total revenues were $1,597,473 and $3,346,399 for the three and six months ended June 30, 2014 respectively, as compared to $1,475,416 and $2,774,029 for the corresponding period in 2013. Total revenues increased by $122,057 and $572,370, an increase of 8.27% and 20.63% for the three and six months ended June 30, 2014, respectively, as compared to total revenues for the three and six months ended June 30, 2013. The increase in total revenue was due to the increase in product revenue.

Net (loss) Income

As a result of the factors mentioned above, net loss was $374,736 and $484,470 for the three and six months ended June 30, 2014 respectively, as compared to net income of $52,017 and $61,782 for the corresponding period in 2013, a decrease of $426,753 and $546,252, or 820.41% and 884.16%. The decrease is primarily due to the increase in cost of products and the increase of operating expense.

Item 3.02. Unregistered Sales of Equity Securities

 
On July 21, 2014, NF Energy Saving Corporation (“Company”) entered into a two-month agreement with ONM Group, Inc., an New York corporation, by which the Company will receive investor relations services. The Company has agreed to issue 50,000 shares of common stock in full payment of the services. The service provider has represented that it is an accredited investor, and the stock will be issued as restricted shares. The Company has granted limited piggy-back rights with respect to the restricted shares. The issuance of the shares was a private placement, made in reliance on Section 4(2).

SHENYANG, China, July 10, 2014 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, announced today that it has recently signed a $0.28 million contract with Guangxi Baise Baikuang Power Co., Ltd. to supply its valve products to the supercritical thermal power generation unit located in Xinshan Aluminum Industrial Park. Delivery is expected to begin in November 2014.

The client is a subsidiary of Guangxi Baise Baikuang Group, a state-owned enterprise in diversified mining and related business including coal, manganese ore, bauxite, power generation, electrolytic aluminum, electrolytic manganese, coal mining machine building, logistics and coal mine engineering technical services. The client invested in late 2013 to develop the Xinshan aluminum industrial demonstration park centering on the coal-power-aluminum integration project to answer the government's call for energy conservation and emissions reduction. Equipped with advanced supercritical electricity generating technology, it is expect that the power plant will provide electricity to produce 300,000 tons of molten aluminum per year upon commencement.

Although the order represents a small percentage in the project investment, says Mr. Gang Li, CEO of NFEC, this contract has opened a strategic new market for our Company in future. Our Company will continue to expand its market share in the off-grid electricity-for-self-use power plant construction business owned by China's large state-owned industrial enterprises, in order to lay a solid foundation for the future development of the Company.

HENYANG, China, June 19, 2014 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the Company), a leading energy saving service solutions provider for China's power, petrochemical, coal, metallurgy, construction and municipal infrastructure development industries, today announced that it has recently signed a $1.08 million contract with Shandong Luneng International Trading Co. to supply its valve products to the 2 x 1000 MW ultra super critical coal fired power generation project at the Lixin Power Plant of the State Investment Co. Execution of the contract is expected to conclude by the first half of 2015.

This contract, said Mr. Gang Li, CEO of NFEC, is one of the major valve product orders the Company has entered into this year. Up to date, the total contracted orders for the Company's valve products have exceeded RMB100 million or $16 million. And, the Company's 2014 revenue is expected to be much better than that of last year.

Item 8.01 Other Events

On June 19, 2014, NF Energy Saving Corporation (the “Company”) announced that Liaoning Nengfa Weiye Energy Technology Ltd. (“Nengfa”), a 100% owned subsidiary of the Company, had recently signed a $1.08 million contract with Shandong Luneng International Trading Co. to supply its valve products to the 2 x 1000 MW ultra super critical coal fired power generation project at the Lixin Power Plant of the State Investment Co.

SHENYANG, China, June 12, 2014 /PRNewswire/ -- NF Energy Saving Corporation (NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today announced that it has recently signed a RMB22 million (or $3.38 million) contract with an environmental protection company in Beijing for a major retrofit project over the industrial coal fired boilers owned by a Chinese aircraft manufacturing company.

According to the contract, NF Energy will provide and install boiler denitration, dust removal and desulfurization systems two sets of equipment at the project for sulfur dioxide and nitrogen oxide emissions reduction and dust removal. The Company's services include system design, equipment fabrication, supply and installation, as well as start up adjustment . 

Mr. Gang Li, Chairman, said , "as a result of the large emission of sulfur dioxide and nitrogen oxide from China's thermal power plants, industrial and space heating boilers, which are primarily fired with coal, the country has been faced with the increasing challenge of poor air quality and environmental pollution, including the heavy smog which has hit vast areas in China recently. It has been mandated in China's Energy Conservation and Emission Reduction Program for the 12^th 5 year Plan Period that energy efficiency enhancements and dust removal retrofits shall be conducted on coal fired industrial boilers and emission intensive industries such as iron, steel and cement making. Therefore, the Company hopes that this project contract will be one of many opportunities ".   

Item 8.01 Other Events

As previously disclosed in the Form 10-Q of NF Energy Saving Corporation (the “Company”), filed with the Securities and Exchange Commission on May 13, 2014, Liaoning Nengfa Weiye Energy Technology Ltd. (“Nengfa”), a 100% owned subsidiary of the Company, entered into two contract agreements on March 12, 2014 (the “North-West Contracts”), with Liaoning North-West Water Supply Ltd., a company established under the laws of the People’s Republic of China (“North-West”). Nengfa also entered into an arrangement for the supply and installation of a boiler retrofit (“Long Sheng Contracts”) with Beijing Long Sheng Jing Ying Environmental Protection Technology Ltd., a company established under the laws of the People’s Republic of China (“Long Sheng”), consisting of two contracts which were entered into on March 26, 2014 and April 1, 2014.

North-West Contracts

The North-West Contracts were awarded to Nengfa in a bidding competition in connection with the Liaoning North-West Water Supply Project (the “Project”). Under the North-West Contracts, Nengfa will design, manufacture and deliver for the Project approximately 71 hydraulic controlled butterfly valves, accessories, spare parts and other related items. Nengfa also will be responsible for providing mechanical drawings, technical guidance, installation supervision and other after-sales services to assure proper installation, commissioning, and testing of the delivered valves and items. The delivery of the valves will commence at the beginning of the third fiscal quarter of 2014 and will continue through the first fiscal quarter of 2015, assuming there are no delays in the performance by Nengfa or in the timetable for the Project. The total contract value for the North-West Contracts is approximately USD $14,388,000. Revenues from these contracts will be recorded in accordance with US GAAP, as products are delivered, related services are performed, commissioning and acceptance is achieved, and warranty periods are satisfied. Revenues are expected to be recognized commencing in the second half of fiscal 2014 and continue through the next fiscal periods as product is delivered, services are performed and contract requirements are satisfied. As the Project is a multifaceted public works project, with many contractors and complicated construction schedules, there is always the risk of a change in delivery, installation, testing and commissioning schedules, which may be beyond the control of Nengfa. These changes may require changes in the performance requirements, contract time table, and pricing and delay payments to Nengfa.

Long Sheng Contracts

The Long Sheng Contracts further the Company efforts in its business to promote energy efficiencies in industrial situations within the PRC. Under the Long Sheng Contracts Nengfa will supply and install boiler denitration, dust removal and desulfurization systems and related monitoring systems (the “Products”) for Long Sheng in connection with a boiler retrofit project being undertaken by Long Sheng. The Products will be delivered and installed during the second half of the 2014 fiscal year. The total contract value of the Long Sheng Contracts is approximately USD $3,381,000. The payments will be on an installment basis, including a 20% deposit and installments on the basis of Product deliveries and performance of installation services, with a portion of the contract consideration to be held back until one year after the installation of the Products.

SHENYANG, China, June 3, 2014 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, today announced that in March 2014, the Company signed two contracts with the Water Diversion Project for the buyer's water transferring infrastructure systems among provinces in northern China.

According to the contracts, the Company is to supply the client with $15 million of butterfly valve flow control equipment. Speaking on behalf of the company, the orders will be delivered between July, 2014 and March, 2015. Mr. Gang Li, Chairman, said, "Aiming to improve the water supply for industrial and residential needs in cities and rural communities of the target regions, the Water Diversion Project is a major water works project under national planning, strategically important to regional economic development and the betterment of people's life in northern China."

NF ENERGY SAVING CORPORATION

CALCULATION OF REGISTRATION FEE

2014 First Quarter Financial  Results:

• The total revenues were $1.74 million for the three months ended March 31, 2014, as compared to $1.29 million for the corresponding period in 2013. Total revenues increased by 34.68%.

• Net loss was $0.02 for the three months ended March 31, 2014 vs. last years quater of $0.00.

The Company anticipates that total revenues will increase in the following quarters due to a series of high-quality contracts that were successfully signed with clients this year.

Fourth Quarter 2013 Results

• The company reported revenue of approximately $600,000 compared to apporximately the same amount in the same quarter 2012.
• The company reported a loss of $0.04 per share compared to $0.02 for the same quarter 2012.

2013 Third Quarter Financial Results

• Total revenues were $1.33 million and $4.11 million for the three and nine months ended September 30, 2013, respectively.
• Net (loss) income per share: was $0.00 the same as last years quarter.

The Company terminated two export contracts derived from South Korea customers because of their low profit margins due to the fluctuations in the market and the Company also terminated other contracts with lower profit margins in order to improve the financial condition of the Company. Revenues for the quarter decreased as compared with the corresponding period in 2012, but the Company increased sales of its large diameter electric butterfly product, which have a higher profit margin than the Company's other products. Therefore, gross profit increased as compared with the corresponding period in 2012.

Along with attention given to the Energy conservation and environmental protection industry by the Chinese government, the Company enhanced and expanded sales efforts in certain industrial fields, including electric power, metallurgy, petrochemical, building materials etc. Currently, the Company secured three projects from Shenyang Forging Industry Ltd., including a cement grinding slag & dust collector project and a coal mill dust collector pre-heater bag dust collector retrofitting project. Meanwhile, in order to generate additional revenues, the Company is looking for the strategic parties that could cooperate with or form a joint venture with the Company in an overseas project.

SHENYANG, China, Oct. 9, 2013 /PRNewswire/ -- NF Energy Saving Corporation (NASDAQ: NFEC) ("NF Energy" or the "Company"), is a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries.

Recently, the Company signed a contract with Chuangshi Energy Ltd., Beijing for the supply of valves derived from the Keling thermoelectric project, Inner Mongolia; Yaochi thermoelectric project Shanxin Province and Pucheng thermoelectric project. The Company will provide DN600-2000 electric butterfly valves and corollary equipment according to the contract. The Company has signed five contracts with Chuangshi Energy Ltd., Beijing since the second half of this year, which should benefit the Company as the main channel provider of the Northwest market in China.

SHENYANG, China, August 27, 2013 /PRNewswire/ -- NF Energy Saving Corporation. (NASDAQ: NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries.

The Company signed a valve contract with ST Energy Engineering Company for a pumping station construction project����Sam Lae Raw Water Pumping Station No. 4 and Bang Khen Raw Water Pumping Station No. 2.

The Company will provide the project with 3 sets of 1500mm-2000mm diameter valves and accessories with electric or hydraulic butterfly controls. The order will be delivered in two shipments at the end of the 3^rd quarter of 2013 and the 1^st quarter of 2014, with all technical requirements satisfied.

The Company's low pressure and large diameter valve products are exported to more than 40 countries and regions. Recent years have seen the NF brand large diameter butterfly valves installed in many hydropower stations globally, with high praise regarding their engineering quality from the foreign clients. The Company will continue to serve its clients, both domestic and foreign, with a wide array of smart valve products of the highest quality.

SHENYANG, China, August 20, 2013 /PRNewswire/ -- NF Energy Saving Corporation. (NASDAQ: NFEC) ("NF Energy" or the "Company"), a leading energy saving services and solutions provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries.

On August 13, 2013, the Guangdong division of the Company's wholly owned subsidiary Liaoning NF Energy signed an energy efficiency service contract with Dongguan Xianjia Plastic Products Company, a Xianhao International Group company, to retrofit 58 units of the client's injection molding machines (IMM). The project is expected to save energy by up to 40%. In addition, more than 60 units of IMM equipment are lined up for energy service at Xinhao Mold Plastic (Shenzhen) Co., Ltd. For the contracted project, NF Energy will apply its own technologies and many years of experience in motor-drive energy efficiency improvements. A test was conducted by both parties prior to the signing of the contract and the Company's solution was found to be very effective. With the kickoff of this energy saving project, the Company expects energy service projects like this one in the plastic industry to become a new source of revenue.

2013 First Quarter Financial Results

• Total revenues were $1.47 million vs last years same quarter of $3.3 million.
• Gross profit was $0.43 million vs 2012 first quarter of $0.50 million
• Net income per share: Basic and Diluted $0.01vs.last years $0.00.

First Quarter 2013 Financial Results

• For the three months ended March 31, 2013, the total revenues were $1.29 million.
• Gross profit was $0.41 million for the three months ended March 31, 2013.
• Net income was $9,765 for the three months ended March 31, 2013.

The increase in revenues and profit of the first quarter as compared with the corresponding period last year was primarily was due to the increase in production capacity as the new manufacturing facility approached completion. The Company anticipates that both revenue and profit will continue to increase in the future as a result of both the gradual increase of orders and the resumption of normal production.

2012 Annual Results Highlight:

• Total revenues were $9.27 million.
• Gross profit was $1.84 million for the fiscal year ended December 31, 2012.
• Net income was $0.08 million for the fiscal year ended December 31, 2012.
• Net Income per share was the same as last year $0.00.

"With the relocation ended in August, 2012, the Company has brought the whole production line back for regular operation. According to the contracts received and under negotiation as well as progress in production financing, the Company's manufacturing capacity and sales level should reach the normal level before relocation," said Mr. Gang Li, Chairman of the Company.

Second Quarter 2012 Results

• For the three and six months ended June 30, 2012, the total revenues were $3,302,624 and $4,500,995, respectively.
• For the three and six months ended June 30, 2012, gross profit was $509,758 and $930,289, respectively.
• For the three and six months ended June 30, 2012, net income was $18,854 and $18,965, respectively.

Speaking on behalf of the Company, Mr. Gang Li, the Company's Chairman and Chief Executive Officer, said, "Compared with the first quarter of this year, the increase of total revenues was due to the increase of production because the move to the new manufacturing facility was completed and the facility was partly operational in the second quarter. Also, Phase II of the project is expected to be fully completed in October, 2012. As a result, we believe that the production and the revenues will continue to increase in both the third quarter and fourth quarter, as compared to the first and second quarters of this year." Mr. Li went on to say that, "The annual shareholders meeting will be held in November in Tieling city, Liaoning province, PRC. As the Chairman of the Company, I invite every shareholder who can to visit our new manufacturing facility; we will try our best to grow our business and bring greater value to our shareholders through greater profitability."

First Quarter 2012 Results

• For the three months ended March 31, 2012, the total revenues were $1.2 million.
• Gross profit was $0.42 million for the three months ended March 31, 2012.
• Net income was $111 for the three months ended March 31, 2012.

Speaking on behalf of the Company, Mr. Gang Li, Chairman and CEO, said, "The decrease of revenues from the prior period was primarily due to the decline of production impacted by the moving to the new manufacturing facility. However, in connection with the construction of third and fourth phases of the plant, which are expected to be completed by May 30, 2012 and June 30, 2012, respectively, five new workshops should be coming into service. With this, the state of the Company's business should be improving over the course of the year. Furthermore, the Company's annual shareholders meeting will be held around the end of third quarter/beginning of the fourth quarter in Tieling city, Liaoning province, PRC. As the chairman and CEO of the Company, I invite every shareholder to attend and visit our new business and industrial park; we will put in our best efforts to grow our business for the benefit of our shareholders."

2011 Year End Results

• Total revenues were $14.93 million for the fiscal year ended December 31, 2011.
• Gross profit was $4.17 million for the fiscal year ended December 31, 2011.
• Net income was $2.05 million for the fiscal year ended December 31, 2011.
• Fourth quarter 2011 EPS of $0.22 vs $0.09 in prior year.

Speaking on behalf of the company, Mr. Gang Li, Chairman, said "The 2011 fiscal year was marked by a profitable year and continued construction of its new manufacturing facilities, phase one of which was completed during the year. These achievements were despite the difficulties the company encountered in raising additional financing to pursue its expansion and development efforts and the expense and down-time of transitioning to the new facility. We have confidence that in 2012 we will be able to continue to improve our business development into our identified areas of expansion, and we believe we will be able to bring greater shareholder value through improved revenues and higher profitability during the fiscal year."

Third Quarter 2011 Highlights

• Revenue was $2.6 million 
• Gross profit was $0.5 million, representing a gross margin of 19.18%
• Net income was $0.071 million.
• YOY EPS was $0.01 vs. $0.38

Adjustment of forecast result of fiscal year 2011

In early 2011, based upon the assumption that the Company would obtain $15 million in financing, the Company projected that total revenue and the net profit in 2011 would be between $30 million to $32 million and $6 million to $6.5 million, respectively.

However, the Company now expects that annual revenue for 2011 will be approximately $15 million and net income will be approximately $2 million, which is a decrease of approximately 40% and 50% compared to 2010, respectively.

The main reason for adjusting the financial forecast for 2011 is primarily due to (i) the delay of financing that caused a delay in completing construction of the new manufacturing facility and as a result, the Company has to subcontracting part of the manufacturing process to third parties which lead to a decrease in product revenue and net income; and (ii). the agreements for the Gaizhou Biomass Energy Project and Petrol-chemical System Pipeline Project did not receive the anticipated consents due to lack of resource and as a result the expected project revenue was not generated.

Second Quarter 2011 Results

• Total revenue of $4.9 million for the three months ended June 30, 2011, decreased 32.3% from $7.2 million in the same period of 2010. This decrease is mainly due to a decrease in product and service revenue, in turn due to the move to the Company's new factory being incomplete during the quarter.
• Income from operations was $0.7 million for the three months ended June 30, 2011, as compared to $1.8 million for the same period of 2010, a decrease of $1.1million or approximately 62.5%. This decrease is primarily due to lower revenue and gross margin and the increase in operating expenses.
• Net income for the second quarter was $0.5 million, or $0.09 per diluted share compared to net income of $1.4 million or $0.26 per diluted share in the same period of 2010.

"We continue to make progress in moving our operations to our new factory. However progress has been slower than originally expected due to the difficulty in obtaining the necessary financing. The rate of growth of operations and financial results going forward will depend to a great degree on the amount of additional financing we can obtain and when we can obtain it. With the capital markets in turmoil financing visibility is low. We will therefore no longer give guidance with respect to our 2011 full year results. We will keep investors informed of our progress and we remain very positive about the market for our products and the growth opportunities ahead," said Mr. Gang Li, the Company's Chief Executive Officer.

First Quarter Results:

• Revenues decreased 7.9% year-over-year to $2.6 million
• Gross profit increased 17.7% year-over-year to $0.8 million, representing a gross margin of 30.6%
• Net income was $0.3 million or $0.05 per diluted share, representing a net margin of 11.2%
• The Company's move to its new factory and development of the facilities on target for completion during the second quarter

"The first quarter is our slowest of the year and this year we used some capacity at our partially-completed facilities to manufacture profitable components for Shenyang's underground railway project, in addition to working on our core energy-saving flow control equipment.  As we near completion of the new factory during the second quarter we expect to be ready to begin work on the bulk of our core product orders in the third and fourth quarters.  We are on schedule with our 2011 plan and our outlook for the full year remains unchanged," said Mr. Gang Li, the Company's Chief Executive Officer.

NF Energy reiterates its guidance for the full fiscal year 2011 revenue to be in the range of $30 million to $32 million and net income to be in the range of $6.0 million to $6.5 million. Guidance excludes any possible additional expenses for potential future financing activities.

Fourth Quarter Results:

• Revenues increased 42.0% year-over-year to $7.3 million
• Gross profit declined 24.4% year-over-year to $1.3 million, representing a gross margin of 17.7%
• Net income was $0.5 million or $0.09 per diluted share, representing a net margin of 6.8%

"Looking at NF Energy's performance for the year as a whole we are satisfied with the Company's operations and the results that we have achieved," commented Mr. Gang Li, Chief Executive Officer of the Company. "Although the Company's total revenue and profitability for the second half of the year was adversely affected by our move to our new facility and this financial result was a disappointment to us, we weigh this against the potential of our new facility that has the ability to eventually triple our production capacity to 20,000 tons per year."

NF Energy reiterates its guidance for the full fiscal year 2011 revenue to be in the range of $30 million to $32 million and net income to be in the range of $6.0 million to $6.5 million. Guidance excludes any possible additional expenses for potential future financing activities.

SHENYANG, China, March 3, 2011 /PRNewswire-Asia/ -- NF Energy Saving Corp., today announced unaudited preliminary results for the fiscal year ended December 31, 2010. The Company will release full financial results on or before March 25, 2011.

• Total unaudited revenue for the fiscal year ended December 31, 2010 was approximately $25.3 million, an increase of 24.8% from the year ended December 31, 2009.
• Full year 2010 operating income increased 2% to $5.6 million.
• Full year 2010 unaudited net income was approximately $4.3 million, down 9.9% for the year ended December 31, 2009 due to a one-time non-cash, non-operating accounting charge related to convertible securities issued by the Company in 2010.  
• Although fourth quarter revenues were $7.3 million, an increase of 42.0% compared to the fourth quarter of 2009, net income dropped to $0.5 million compared with $1.3 million in the fourth quarter of 2009.  This was primarily due to a decline of gross margin from 33% in the fourth quarter of 2009 to 18% in the fourth quarter of 2010 that was caused by the Company transitioning production from its old facility to its newly constructed facility.

All the foregoing results are preliminary and subject to revision based upon review by the Company's independent auditor.

"We are happy with our overall performance in 2010," said Mr. Gang Li, Chairman and Chief Executive of the Company. He added "Our new facilities, to which we moved production in late 2010, will more than triple our available capacity and allow us to expand more rapidly in future years. In 2011, we expect continued strong revenue growth and a return to growth in profitability, driven by increased market demand for both our energy management services and our intelligent flow control systems."

The Company is providing initial guidance for fiscal year 2011 of revenues of between $30 million and $32 million and net income of between $6 million and $6.5 million.

As previously reported, on February 24, 2010 and March 4, 2010, NF Energy Saving Corporation  sold, through a private placement to two accredited investors, convertible promissory notes in the aggregate principal amount of $960,000 and warrants to purchase 160,000 (64,000 post reverse stock split) shares of the Company’s common stock.

The maturity date of each Note has been extended, as of February 24, 2011, to February 24, 2012. Furthermore, the investors have relinquished all of their claims in and to the Warrants and the shares of common stock underlying the Warrants.

SHENYANG, China, March 2, 2011 /PRNewswire-Asia/ -- NF Energy Saving Corporation today announced that it has filed a universal shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission ("SEC") for potential future financing.

"We do not have any immediate plans to offer or sell our securities under the registration statement," said Mr. Gang Li, Chairman and Chief Executive Officer of NF Energy. "However, the Board of Directors agreed that having a shelf registration in place was valuable for financial flexibility, given the opportunities for potentially high return capital projects that may be presented to us, including capacity expansion, development of low-carbon technologies and co-investments in energy-saving projects."

The shelf registration statement, when declared effective by the SEC, would give NFEC the ability to offer and sell up to $6,000,000 of its securities consisting of common stock, preferred stock, warrants, units or a combination thereof. The terms of any offering under the shelf registration statement would be established at the time of such offering and will be described in a prospectus supplement filed with the SEC prior to completion of any offering.

Rodman & Renshaw on Nf Energy Saving

Site Visit:We visited NFEC in Shenyang on October 15, 2010. We started the day at their new offices in down town Shenyang and then proceeded to their current and upcoming facilities located in Tieling City in Liaoning Province. The company’s existing facility manufactures energy-saving flow control equipment for China’s South-North Water Diversion Project and coal-fired power plants. We also saw finished and semi-finished products, primarily large industrial valves, ready to be shipped to Russia, India and Turkey. Mr. Jianwei Cui, general manager of Liaoning Nengfa Weiye Energy Technology, the Chinese subsidiary of NFEC, has been in charge of the daily valve manufacturing operation in the current facility. He gave us a brief tour of the factory and walked us through the production process for 3.6m, 4.3m, and 4.8m diameter energy saving valves. Mr. Cui also indicated that the company will expand on its manufacturing of high precision / automated energy saving equipment in the new facility in Tieling City’s new industrial zone. 

Tieling City’s new industrial zone appears to be a part of a new development plan and is being built from scratch. There are numerous factories coming up in this area and most of them are in late stages of completion. 

We visited NFEC’s new facility during the second half of the day. The new factory will comprise of two buildings that approximately will have 10,000 sq. mt. floor space each. Mr. Zhao, the site manager showed us two newly purchased high precision automated processing machines, totaling RMB 30 MM~40 MM. It appeared some of this equipment were still being tested. This equipment should allow NFEC to be one of very few in Northeast China capable of producing/processing high precision energy saving flow control equipment. To finish the construction of the new facility, NFEC needs to invest additional $4 MM ~$5 MM. 

Key Takeaways: We met with the company’s management, including Mr. Gang Li, Chairman & CEO and Jessica Yang, VP of Finance. The key takeaways from the visit are (1) Construction in the new facility seems to be well underway (2) Opportunity from overseas remains promising (3) Management has a clear growth strategy. However, it will have to demonstrate its ability to execute (4) the company is also taking initiatives to comply with SOX 404 to improve internal control and potentially upgrading its auditor. 

3Q10 Preview: Management indicated that during 3Q10 they experienced a slight delay in product delivery to one customer from Russia due to postponed testing. Therefore revenue from this contract may be pushed to 4Q10. We are making adjustments to our financial model accordingly. We are now projecting revenue and net income of $8.1 MM and $2.0 MM, with diluted EPS of $0.38 compared to $9.8 MM, $2.0 MM, and $0.38 earlier. For full year FY10, we are maintaining our estimates of $28.6 MM, $5.6 MM, and $1.03 per share, respectively. Our FY11 estimates are unchanged at $35.7 MM, $7.5 MM, and $1.25.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Rodman & Renshaw on NFEC

Overview: We are initiating coverage on NF Energy Saving Corp. (NFEC) with a Market Outperform / Speculative Risk rating and a 12-month price target of $5.00. NFEC is a specialized energy saving solutions provider. The company’s senior management team led one of the pilot projects in China’s ESCO space when the World Bank jump started this industry in China in 1998. Since then the company has grown into manufacturing energy saving valves and flow systems in addition to providing energy efficiency related consulting services to industrial entities. 

Highlighting An Overlooked Opportunity: We view NFEC as an overlooked opportunity participating in a very relevant investment theme. China’s need for environmental remediation, we believe, is well documented and understood. Efficient energy and water consumption is one approach to arriving at a possible solution. Though the company came public in 2006 through a reverse merger, meaningful trading in the stock only began in mid 2009. The stock benefited from the market rally last year and touched a high of $7.75 at a time when other Chinese water plays and environmental remediation names were also outperforming. Since then the stock has suffered from an overall pull-back in small / micro cap China names and as a result liquidity has dried up. However, during this period the company has continued to demonstrate revenue and earnings growth (pls. see financial model). Lack of institutional ownership, absence of analyst coverage and an OTC BB listing has kept the story from being noticed by investors. We believe management is going to be pro-active in setting performance expectations and delivering on them as part of an effort to drive institutional interest in the story. 

We believe NFEC is still in the early stages of its growth strategy but has demonstrated its ability to maintain profitability. As a domestic energy services solution provider, we believe the company is already benefiting from highly favorable macro policies. We expect the upcoming Twelfth Five Year Plan to continue government policy and funding support for the energy efficiency and environmental remediation industry in China. The company’s existing partnerships and collaborations with major global players should allow it access to relevant technology to continue winning contracts.

Valuation: At current levels NFEC is trading at P/E multiples of ~6.3x and ~5.2x to our FY10 and FY11 earnings estimates. These multiples are well below industry averages of 14x and 12x. We are comfortable assigning NFEC a $5.00 price target, which translates into P/E multiples of 12x and 10x to our estimates for FY10 and FY11. We believe these are reasonable multiples given that historically clean technology and environmental remediation companies have traded within a range of 8x to 25x on a P/E basis. 

Investment Risks: (1) Revenue Collection & Accounts Receivable Issue (2) Customer Concentration (3) Volatility In Raw Material Cost (4) Highly Competitive Industry (5) Risks Associated With International Relationship


This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Second Quarter 2010 Highlights

• Revenues increased 38.3% year-over-year to $7.2 million.
  
• Gross profit rose 32.7% year-over-year to $2.0 million, representing a gross margin of 28.0% compared to 29.2% in the year ago period.
  
• Operating income grew 89.3% year-over-year to $1.8 million.
  
• GAAP net income increased 69.4% year-over-year to $1.4 million, representing a net margin of 19.0% compared to 15.5% a year ago.
  
•  Net income per diluted share was $0.10 compared to $0.06 in the same period last year

"We are pleased to report a strong second quarter performance for 2010, which we believe will continue through the remainder of this year," commented Mr. Gang Li, Chief Executive Officer of NF Energy Saving Corporation. "In addition to the strong financial performance, we have begun the expansion of our new manufacturing facility which we anticipate will be completed in September, 2010, increasing annual capacity to 20,000 tons of flow control equipment from our current capacity of 6,000 tons. We have also begun to achieve a change in our business mix towards energy conservation service projects, growing this segment's top line by 440.2% compared to the prior year period. We expect that with the increase in production capacity, coupled with steadily growing market demand, we are well positioned to gain market share, further strengthening the Company's leadership in the PRC intelligent energy efficient flow control market."

Guidance and Business Outlook

NF Energy expects full fiscal year 2010

• Revenue to be in the range of $28 million to $30 million.
  
• Net income to be in the range of $5.6 million to $6.0 million. The estimate does not include any possible additional expenses arising from the Company's upgrade to a major exchange or financing expense.

The Company's performance is expected to follow its typical pattern of a stronger third and fourth quarter due to favorable weather conditions at many of its customer sites, absence of holidays and stronger seasonal customer ordering patterns. In order to meet the expected increase in demand for energy efficiency as a result of the passage of China's Energy Conservation Law, NF Energy plans to increase capacity to 20,000 tons of flow control equipment per year by completing the construction of its new energy manufacturing facility in September 2010. Successful on time completion is also assumed in the aforementioned financial guidance.

"A series of policies related to energy conservation projects and tax benefits issued by the Chinese government associated with those projects indicate that low carbon emission and clean energy targets will be a new impetus for economic development, driving construction of innovative industrial systems," commented Mr. Gang Li, Chief Executive Officer of NF Energy. "In order to capitalize on these trends, NF Energy will further develop energy conservation projects to significantly grow all of its lines of business for the remainder of 2010."

Added to the GeoSpecial list on July 28, 2009 @ 3.30 adjusted for a 1 for 3 reverse split.
 
Catalyst: Hot sector; Appeared to be on the verge of an EPS break out; Significant contract wins;
Peak performance: Reached a high of $20.00 on August 26, 2009.
Current Price: $2.50

Current road block:  The company did not live up to our EPS expectations during the 2010 first quarter; First quarter EPS was flat which the company attributed to a non-cash expense, when in reality this only accounted for a reduction in EPS of $0.004; Margins have not improved with increases in revenue; Did not reiterate guidance in its 2010 first quarter release; Delay in the installation and operational testing of a number of products; Needs to raise more money to meet revenue targets, which could lead to dilution.

Removing from the GeoSpecial list.  Placed  on GeoSpecial on the Radar list. This is a stock we will not be purchasing anytime soon, unless we see a better margin showing in future quarters and/or we gain more clarity on financing needs. Although Revenue guidance is still bullish, the fact that the company has not issued net income guidance may leave investors, including us, in limbo.  

Nf Energy Saving cotempates enacting a reverse split:

To our Stockholders:

Enclosed please find an information statement providing information to you regarding an action taken by some of our stockholders to authorize a reverse stock split of NF Energy Saving Corporation’s outstanding common stock at a ratio resulting in a reduction of the aggregate number of shares of outstanding common stock from anywhere between 10% (i.e. 10:9) to 500% (i.e. 5:1), as decided by the Board of Directors of NF Energy Saving Corporation in its discretion, to take effect at such time within three months of the date hereof as determined by the Board of Directors in its discretion. These actions were approved by written consent in lieu of a meeting of stockholders by those stockholders holding a majority of our issued and outstanding common stock entitled to vote on the record date.

the Company expects revenue for the fiscal year ending December 31, 2010 to be in the range of $27-30 million, a 33%-48% increase over revenue of $20.3 million for the fiscal year ended December 31, 2009.

Source: PR Newswire (April 20, 2010)

Valuation Scenarios

Added to GeoSpecial list on the radar list on July 28, 2009. ($1.10). 

Data Inputs:

Fiscal Year Ends in December

^a NFES is not paying a full U.S. tax rate.  Therefore, all EPS numbers have been adjusted by the GeoTeam® to reflect a tax rate of 36%.

^b EPS figures are non-GAAP. Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time,  differ from company supplied figures.

^c Data adjusted for 1 for 3 reverse stock split

Short-Term Valuation Scenarios

Harbinger Research Report

On July 28, 2009, the GeoTeam coded Nf Energy Saving Corp America (OTCBB:NFES) as a GeoSpecial at $1.10. The Nf Energy Saving Corp America story is easy to understand supported by industry fundamentals that should drive growth into the foreseeable future. We are particularly impressed with the information provided in the company's 10K filings which thoroughly address the various product/service lines as they relate to ever-changing industry dynamics.  It ultimately remains to be seen if Nf Energy will rise to the challenge posed by China's increased emphasis on clean/efficient energy solutions. We urge interested parties to peruse the company's filings and website to gain a taste of the opportunities present for Nf Energy Saving Corp America.

Understanding Nf Energy Saving Corp:  NF Energy Saving Corp of America is a China-based provider of integrated energy conservation solutions. 

Nf Energy's products address some fundamental deficiencies present in China's aging industrial infrastructure.  Seventy percent of the Company's sales revenues come from it's major customers involved with large-scale electricity generation and commodity supply, industry's that need efficient processes when producing and distributing their products and services. 

The country's energy saving goals can be solved by a Nf Energy's capabilities to address energy conservation and emissions through the modernization of industrial boilers and furnaces, steam thermal systems, motor drive systems, lighting lamps, wind power equipment components, heat recovery systems and flow control systems.  Each component of the Company's focus plays an integral part in contributing to a large picture of optimizing the output of various systems and supporting the idea of sustainable energy as China enters an industrial boom.  In breaking down Nf Energy as a company, it can be categorized into four major business directions, all of which provide the company market opportunity.

• Energy Saving Reconstruction Projects
• Production and sales of energy-saving valves, intelligent valves and flow control equipment
• Comprehensive energy conservation and emission reduction services for municipalities
• Equipment Manufacturing for Wind Power Plants

I Energy Saving Reconstruction Project

• Refurbishing of industrial energy producing systems
• Installation of new modern energy efficient systems
• Other initiatives to renew and recover various forms of energy

Industrial Boilers 

The source of heat for a boiler is combustion of any of several fuels, such as wood, coal, oil, or natural gas.  In the case of China, 95% of the total burners in the country are coal-fired.  Boilers have many applications. They can be used in stationary applications to provide heat, hot water, or steam for domestic use, or in generators and they can be used in mobile applications to provide steam for locomotion in applications such as trains, ships, and boats. Using a boiler is a way to transfer stored energy from the fuel source to the water in the boiler, and then finally to the point of end use. (Source:Wikipedia:boiler) Furnaces, explained later, are sometimes a component of boilers that supply the heat needed to maintain a constantly flowing process.

Problem - Boiler Inefficiency

• Due to the mechanism of operation, 60% of boilers in China are below current efficiency standards.
• The use of old and inefficient boiler equipment and associated components leads to small capacities and incompatible coal use. 
• The reliance of higher grade/expensive coal to operate boilers.
• Loss of potential energy due to inefficient systems.

Nf Energy Solutions to Boiler Inefficiency

• Retrofit old boilers with modern equipment and improve the efficiency of the boiler operating mechanism.
• Constructing new efficient boilers for its customers, further limiting energy loss.

Opportunity within the Boiler Market

• In light of boilers not meeting efficiency standards, the opportunity for Nf Energy is immense as companies race to meet code. 
• Companies that contract with Nf Energy Saving Corp to improve boiler operating systems will be able to refurbish old boilers or construct new boilers that will meet new standards. Added benefits to these companies will be increased margins through the use of cheaper coal, less energy loss and the ability to capture lost heat/energy that occurs in the combustion process.

Industrial Furnaces

China's industrial furnaces are mainly used in high energy consumption industries, accounting for 10% of China's total energy use.  An industrial furnace or direct-fired heater, is a piece of equipment used to provide heat for processes such as those used in the iron and steel, metallurgy, building materials, machinery manufacturing and chemical industries. Furnace designs vary with the intended function, heating duty, type of fuel and method of introducing combustion air. However, most process furnaces have common features. Source:(Wikipedia:furnace)

Problem - Archaic Furnace Design

• Equipped with backward technology
• Outdated equipment
• Experiencing serious waste of energy.

Nf Energy Solution to Archaic Furnace Design

• Use existing technology to reconstruct furnace structure, its heat source system, combustion system and control system.

Opportunity within the Furnace Market

• Half of the enterprises that utilize furnaces experience problems.

Steam Thermal Systems

The main goal of steam thermal systems is to transfer heat resulting in the energy needed to drive a process.  The flow of heat from point to point in a thermal system is usually related to the temperatures at various locations within the system.    When the energy is extracted from the steam, the steam condenses into a low-temperature reservoir, where it can be reused as feed water to make more steam.

Problem - Inefficient Steam Thermal Systems

• Inefficient systems lead to energy leakage

Nf Energy Solution to Steam Thermal System Inefficiency

• Reconstruct thermal systems
• Eliminate leakage losses
• Recovery condensed water to be used as energy.

Opportunity with Steam Thermal Systems

• Companies can benefit from efficient steam trap designs and other components that help to make the systems more self sufficient.  Their bottom lines will be positively affected as a result of the containment of reusable resources.

Motor Drive Systems

A motor drive system is comprised of an electric motor and other parts of a mechanical system for operating a machine or machines.

Problem - Excessive Power Consumption

• China's motor drive system power consumption accounts for 2/3 of total electricity consumption of the country.

Nf Energy Solution

• Reconstruct an efficient  motor drive system with modern equipment.

Opportunity with Motor Drive Systems

• Companies will view the NFES solution as a way to consume less energy when powering machinery.

Green Lighting Project

Funded by the China State Economic and Trade Commission (SETC) and the Global Environment Facility, the China Green Lights Project began its expanded implementation in September 2001. The primary objective of the project is to, by 2010, reduce lighting energy use in China by ~10%.  This involves the optimization of power distribution and how it is used by the overall system.

Problem - Overload on Lighting

One of the fastest growing sectors of electricity growth is in lighting energy consumption.

• Annual growth in electrical consumption by lighting was 15% for much of the 1990s.
• Lighting currently accounts for approximately 12% of lighting energy use in China.

Nf Energy Solution

Given the predominant reliance on coal as a generation fuel, serious health and environmental problems can be reduced if the use of coal is curtailed by way of smart processes and higher quality products.

• The Company accommodates the project through the manufacture of energy efficient green light products, renewing the lighting power supply, rational distribution of lamps, improving the quality of power supply and on-demand control.

Green Lighting Project Opportunity

The project will set minimum efficiency standards for lighting products and designs.

• Those who supply the most efficient products will rise to the top.
• Companies can outsource product manufacturing to NFES.
• As the government continues to implement its green light project demand for related products should increase.
• Because the project is in its infancy, NFES can garner a favorable reputation as one of the original contributors if the project's goals are met.
• NFES is the only commercial distributor of energy efficient lighting lamps in Liaoning Province where the provincial government is targeting 2.5 million bulb installations for 2009.

Recovery of Residual Heat

Problem - Lost Energy

In the various industries that Nf Energy serves, residual heat is created during energy creation and can be considered a source of lost energy.

Nf Energy Solution

The company has developed reliable methods to recover and utilize residual heat from a variety of different sources.

Residual Heat Opportunity

• There is the potential for Nf Energy to generate contracts with companies that see the Company's recovery methods as a competitive advantage.

II Production and Sales of Energy Flow Control Equipment

Complex Valves and flow control system equipment regulate the transportation of water, oil, heat and gas within the pipeline infrastructure network beneath the cities.  The valves installed within the pipeline are integral to the system's proper function and are considered to be the most important component of the network. This has been the Company's main product line.

Problem-  Inefficient Pipeline Systems

Inefficient pipeline systems can result in less than desirable commodity flows within the infrastructure network within what is referred to as the energy highway.

Nf Energy Solution

• Nf Energy state-of-the-art flow control equipment will reduce energy consumption by 20%. Valve and flow control equipment is the key to energy efficiency and conservation in the pipeline transportation of commodities.

Flow Control Equipment Opportunity

• Nf Energy can capitalize on its 10 years of solid reputation to maintain its leading market share position in related flow control markets.
• Its technology was awarded "Number One Energy Saving Value of China" by the Chinese Energy Conservation Association.
• Again, companies that wish to increase margins will value the 20% reduction in energy consumption through the application of NFES products.
• It is widely used in the fields of electric power, water power, petroleum, natural gas and etc.
• An insignificant amount or revenues is generated from outside China.

III Comprehensive Energy Conservation & Emission Reduction Services for Municipalities

The China State Council, in its 11th Five-Year Plan for 2005 to 2010, has set energy conservation and emission reduction targets to be achieved by local governments and industries. The Central government has set aside 7 billion RMB to support the top 10 key energy saving projects.

Problem - Standards Must Be Met

• In the scramble to meet standards and share in 7 billion RMB to support the top 10 key energy saving projects, municipalities require project management help from reputable firms.

Nf Energy Solution

• The Company's municipal comprehensive energy conservation and emission reduction projects focus on comprehensive energy conservation and emission reduction planning and project implementation for an entire city.
• The goals of these plans are to reduce per unit energy consumption and green house gas emission.

Opportunity in Emission Reduction Services

• NFES has embarked on developing project management initiatives and will offer this new service to municipalities in 2009.
• Project management will serve as a new source of revenue.

IV Equipment Manufacturing for Wind Power Plants

Problem - Equipment Shortages

• China's tremendous demand for wind power generation has led to a global shortage of wind power equipment components.

Nf Energy Solution

• Those manufacturers that are well capitalized, have sufficient capacity, offer cutting-edge technology and are able to provide superior service should enjoy a tremendous growth in China.

Wind Power Opportunity

• Government in its 11th Five Year Plan of 2006 emphasized the development of wind power among energy resource development. The backlog of orders will not be filled until 2012 and presents a predictable and growing source of potential revenue for NFES. At the present time, the demand greatly exceeds the supply in the wind power equipment components market.

As stated in Nf Energy's July 8, 2009 press release:

'We have seen tremendous customer demand for wind equipment since last year,' commented Mr. Li Gang, Chairman and CEO of NF Energy. 'NF Energy will speed up its development of wind power capacity to capitalize on this fast growing market. We have started construction of a new energy base in Tieling City of Liaoning province in Q1 of 2009, which will dramatically expand the Company's manufacturing capacity for wind power equipment to meet growing domestic demand.' Total wind power generating capacity in China is currently 12GW but the country, which is growing at the fastest rate among all the economies in the world, wants to raise it to 20GW by 2010. China expects to have an annual wind power growth rate of 20 percent. In May 2009, China increased its goal for wind power generation capacity by 2020 to 100GW, from the original 30GW that the Chinese government set in 2007. China is currently the fourth largest producer of wind energy in the world, after the United States, Germany and Spain and is aiming to have 40 percent of all its energy originate from renewable energy sources by 2050. According to the Global Wind Energy Council, China will become the biggest growth market for wind power generating capacity this year, ahead of the United States.'

In a nutshell, Nf Energy participates in an industry with favorable growth trends due to traditional demand/supply factors and government regulation. China's energy consumption is currently growing at 5 % a year, with the consumption of electricity slated to grow even more rapidly well into the future.  Even if regulation is put aside, Nf Energy's products and services can give its client companies a competitive advantage while at the same time increase their profit margins. The Company's participation in the wind and green projects should give it an avenue of margin-friendly revenues. Additionally, the Company's long standing  position in the valve technology market and its involvement with municipal projects that require continual oversight provides it with  a reliable revenue stream.

NFES shares have risen sharply from $0.20 to its current levels. As many of our readers may know by now, the GeoTeam® prefers to construct valuation scenarios on a fully taxed basis. Doing so yields potential valuation scenarios that may still offer upside to NFES shares.

However, we feel that the dynamics of China's industrial efficiency goals along with Nf Energy's reputation and projected manufacturing capacity provides the company with an excellent chance to exceed street expectations and attain P/E multiples higher than we portrayed in our potential valuation scenarios.  In fact, since May 28, 2009, when Nf Energy announced a 2009 revenue backlog figure of $21.5 million, the Company has already approximately booked an additional $11.0 million in contracts.  At current margins this would equate to a pre-tax earnings per share figure of $0.21 ($0.13 fully taxed). 

Harbinger analyst estimates: 
Revenue estimate:  $22.1 million,
Earnings per share:  $0.127 (~ $0.08 fully taxed).

Current Catalyst Financial Resources estimates:
Revenue estimate:  $27.6 million,
Earnings per share:  $0.16 (~ $0.10 fully taxed).

Note: Nf Energy plans on affecting a reverse split in the near future.

Nf Energy liquidity needs:

"We anticipate we will need additional working capital in 2009 and in the future to fund our company’s new business plans to help the company to establish a manufacturing base for new energy equipment, to develop comprehensive energy saving infrastructure projects for municipalities, and to maintain our lead position in flow control equipment manufacturing. We may decide to pursue additional investments or debt financing to obtain additional cash resources to fund our company’s new business and other future developments."

Nf Energy is also being placed on the GeoBargain on the Radar list.  

The GeoTeam® will delve into the NFES story more diligently in the coming weeks.

Source: GeoInvesting.com

We anticipate we will need additional working capital in 2009 and in the future to fund our company’s new business plans to help the company to establish a manufacturing base for new energy equipment, to develop comprehensive energy saving infrastructure projects for municipalities, and to maintain our lead position in flow control equipment manufacturing. We may decide to pursue additional investments or debt financing to obtain additional cash resources to fund our company’s new business and other future developments.

Source: SEC Filing 10Q ( For the Quarterly Period Ended March 31, 2009, page 30)