 |
 |
 |
 |
 |
 |
 |
 |
|
Latest ASX Release 30 July 2010 APPENDIX 4C June 2010 Quarterly Activities Summary. During the June 2010 Quarter Advanced Engine Components Limited ("ACE"): Completed the 1 for 3 rights issue raising $1.8m. The $1.8m is inclusive
of $1.1m from 698 Capital International. The $1.1m was offset against accrued
interest owing on their convertible notes which expired on 31 December 2009. Received settlement of the insurance claim arising from the disputed
amount owing by Weichai Peterson Gas Engine Co Ltd ("WPGE"). ACE's total bad
debt write off, for the June 2010 financial year, will be less than $100,000. The WPGE dispute arose from claims that the ACE NGVS had lead to high oil
consumption of WPGE natural gas engines using the ACE NGVS. ACE disputed the
claim. During the June 2010 quarter ACE became aware of WPGE documents advising
of changes to base engine components designed to reduce abnormal oil consumption. Supplied over 70 prototype and pre-production NGVS kits to India for
testing, validation and certification. In July 2010 ACE commenced serial
production and supply of its fifth generation electronic control unit ("ECU")
and injectors to India. Components for 2,200 NGVS kits are scheduled to be
delivered by 31 December 2010. All Australian staff returned to a five day
week to meet the ongoing demand. Signed a co-operation agreement with Norinco Equipment Co Ltd ("Norinco
Equipment") of China. The co-operation agreement provides for ACE to receive
a royalty on Norinco Equipment's gross sales revenue from sales of natural
gas vehicles and engines arising from the Norinco Equipment / ACE strategic
alliance agreement. The royalty is in addition to ACE sales of natural gas
vehicle components, at normal commercial rates, to Norinco Equipment; related
parties; and customers. Signed an agreement, with Lixun Automotive Electronic Co Ltd ("Lixun") of
China, to develop and supply components for a Dong Feng 4 cylinder natural gas
engine. Lixun will prepay ACE for the development cost. Receipts from customers were 100% from sales of spares and services. This
reflects the dominance of sales of spares and services throughout FY2010.
Total ACE revenue for FY2010 will be the lowest in five years. Sales of NGVS
kits were only 6% of total sales, sales of engines represented 31% and sales
of spares 63%. The majority of cash outflow related to purchase of long lead time
components; capitalised research and development; and production, all relating
to the India supply arrangements. These cash outflows will continue into the
new financial year with related cash inflows not commencing until 60 days
after each delivery date. Appendix 4C, 30 July 2010 (PDF, 61k)
For further information please contact:
|