Wuhan Blower won a bid from the Wuhan Metro Group to supply blowers for the subway systems for a contract price of $0.67 million. The Company believes this initial order opens the door for additional opportunities from Wuhan Metro and is actively bidding for orders. "After passing the type inspection for subway systems in 2010, we finally won our first contract for subway systems. Following this milestone, we believe we have more opportunities to approach larger projects related to the construction of subway systems in Wuhan and in other emerging cities across China."
For the remainder of the year, the Company expects demand for both blowers and turbines to remain solid as supported by the replacement cycle of the steel industry and new development within the hydropower industry. Based on the management's observation for the current competitive market and smaller revenue contribution of Wuhan Sungreen, the Company expects to achieve approximately 15% revenue growth for the year 2010.
"We are satisfied with the current outlook for our business as demonstrated by our backlog of approximately $32 million for Wuhan Blower and approximately $22 million for Wuhan Generating of which we expect to realize approximately $36 million in revenue for 2010. In light of the growing backlog and our firm, albeit slow, progress in collection of accounts receivable, we are optimistic about our performance as we move to the next year. While we recognize that challenges remain for our business to resume its former performance, we remain optimistic about our future prospects. We believe that our dedication to service and ability to deliver customized solutions will help us win a wider range of projects and obtain a broader customer base."
For the three months ended September 30, 2010, the Company expects to report total unaudited net revenue of $28.8 million, compared with $24.7 million in the third quarter 2009, and unaudited net income of $1.8 million, or $0.05 per diluted share, compared with $3.0 million, or $0.08 per diluted share for the same period last year.