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Past ASX Release
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29 January 2010 QUARTERLY ACTIVITIES SUMMARY - DECEMBER 2009 Throughout the second quarter of FY2010, with limited funds available, Advanced Engine Components Ltd ("ACE" or "the Company") has concentrated on cost control, new equity and debt restructure. These efforts have culminated in a second quarter of positive net operating cash flows, together with the 28 January 2010 announcement of an agreed equity raising and debt restructure. The equity injection and debt restructure will enable ACE to more aggressively pursue known sales opportunities for the remainder of FY2010. Other significant developments either during, or subsequent to, the December 2009 quarter include: ACE's strategic alliance with Norinco Equipment Co Ltd ("Norinco") has
continued to progress positively. Joint marketing between Norinco and ACE
has lead to negotiations at draft documentation stage in Egypt, Thailand and
Pakistan. Should any one of these opportunities progress to final documentation
it will lead to substantial sales for FY2010 and beyond. ACE's development of the Tata Motors Limited ("TML") 497 and 697
naturally aspirated compressed natural gas engines have progressed in line
with pre agreed development milestones. The engines have been internally
tested to required emission levels and will be externally tested by ARIA
in coming weeks. ACE expects TML to place the first commercial order once
formal emission certification is received. During the December 2009 quarter, Deutz Dalian Engine ("DDE") sold 100
hybrid gas electric system engines, incorporating the ACE NGVS, in Changchun,
China. Further sales are expected within this city and successful trials have
been completed in other Chinese cities. ACE received its first orders for Isuzu 295 LNG NGVS kits for Australia.
The order followed a successful on road trial exceeding 25,000 km. Further
orders are expected before 30 June 2010. 200 pre-production fifth generation ACE ECU's (Euro IV) have been built
and are available for final trials and commercial sales. In addition, ACE has
designed a specific ACE LNG injector system that overcomes high wearing
observed in injectors on LNG vehicles, enabling significant extended life
of injectors. ACE has settled its outstanding claim for collection of A$173,000 from
CRMT of France. ACE will recover approximately 70% of the outstanding debt
which had been fully provided for as a doubtful debt in past financial statements. Negotiations for collection of the amount owing to ACE by Weichai Peterson
Gas Company continued through the December quarter. ACE has put forward a proposal
which ACE expects will enable the matter to be settled before 30 June 2010. December 2009 Quarterly Activities Summary, 29 January 2010 (PDF, 92k)
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