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Past ASX Release
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30 April 2009 QUARTERLY ACTIVITIES SUMMARY - MARCH 2009 Advanced Engine Components Ltd's ("ACE" or "the Company") focus on cash generation and cost reductions is reflected in the following March 2009 quarterly report. Cash received from customers was 80% higher than received in the previous quarter. The net operating cash flow, at A$302,000, was a positive result for only the second time since ACE listed in February 2000. In addition, sales for the 9 months to 30 September 2009 are approximately 85% higher than for the corresponding period in FY 2008. As a result, and with known demand, the Board remain confident that FY 2009 will be ACE's fourth financial year of year on year sales growth. However, the effect of the global financial crisis continues to impact on ACE's customers with ongoing s low demand, delayed payments and deferred deliveries. ACE continues to work on repayment plans with major customers, to systematically reduce the amounts outstanding, and introduce cost reductions where ever possible. Although cash flow remains tight, all major interest bearing and secured debt is provided by related entities. As such, ACE is reasonably protected from unexpected and unrealistic demand for repayment of that debt. During the March 2009 quarter ACE settled the terms of a Strategic Alliance Agreement with Norinco Equipment Co Ltd ("Norinco") of China. Norinco is a subsidiary of China North Industries Group Corporation ("CNGC"). CNGC is a State Owned Enterprise established in 1980 with the approval of the State Council of the People’s Republic of China. CNGC has over 400,000 employees and in excess of A$5 billion in registered capital. Through its 133 domestic and international entities, CNGC combines technology, manufacture and trade businesses with import and export of commodities and technologies including vehicles and mechanical products. Norinco is involved in the development and export of compressed natural gas ("CNG") vehicles and engines. Norinco will utilise its brand and CNGC's extensive domestic and international distribution network to promote CNG trucks, buses, chassis, engines, components and other natural gas related products. Pursuant to the Strategic Alliance, ACE and Norinco will work together in the development of natural gas vehicle applications, facilitate production with CNGC's subsidiary companies and cooperate in the marketing and sale of those products. The Strategic Alliance will benefit ACE through the development of new engines, introduction to new markets and sales of existing engines using ACE’s natural gas vehicle system. March 2009 Quarterly Activities Summary, 30 March 2009 (PDF, 163k)
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