China Recycling Energy Corporation reported earnings results for the fourth quarter and full year of 2012. For the quarter, the company reported net income of USD 1.566 million compared to USD 4.537 million a year ago. Adjusted net income was USD 1.269 million compared to USD 0.023 million a year ago. Adjusted EPS in non-GAAP was USD 0.03 compared to USD 0.00 a year ago. For the year, the company reported total sales of USD 1.246 million compared to USD 31.198 million a year ago. Total operating income was USD 19.480 million compared to USD 30.380 million a year ago. Net income was USD 3.407 million compared to USD 21.450 million a year ago. Diluted EPS was USD 0.07 compared to USD 0.39 a year ago. Adjusted EPS in non-GAAP was USD 0.12 compared to USD 0.35 a year ago. Full year 2012 financial results showed large decrease in net income, this is mostly caused by the decrease in system sales as the company did not complete any new projects during the year 2012. Adjusted net income was USD 5.509 million compared to USD 15.005 million a year ago. Adjusted EPS in non-GAAP was USD 0.12 compared to USD 0.35 a year ago. The company provided financial guidance for the year 2013. The project commenced in October 25, 2012 and is expected to be completed by the end of the first quarter of 2013. The company is more confident in continued growth in 2013 and is in full swing rolling out efforts to fulfill the engagement in various phases for all projects with all partners.

On December 20, 2012, China Recycling Energy Corporation received a written notification from the NASDAQ Stock Market Listing Qualifications Staff indicating that the Company has regained compliance with the $1.00 minimum bid price requirement for continued listing on the NASDAQ Global Market pursuant to NASDAQ Listing Rule 5550(a)(2) and that the matter is now closed. The closing bid price of the Company’s common stock has been at $1.00 per share or greater for at least 10 consecutive business days. Accordingly, the Company has regained compliance with the Minimum Bid Price Requirement.

On November 21, 2012, China Recycling Energy Corporation received written notice from the NASDAQ Stock Market (NASDAQ) stating that the Company is not in compliance with the $1.00 minimum bid price requirement for continued listing on the NASDAQ Global Market, as set forth in NASDAQ Listing Rule 5450(a)(1). The notice has no immediate effect on the listing of the Company's common stock, and its common stock will continue to trade on the NASDAQ Global Market under the symbol “CREG” at this time. In accordance with NASDAQ Listing Rule 5810(c)(3)(A), the Company has a grace period of 180 calendar days, or until May 20, 2013, to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company's common stock must meet or exceed $1.00 per share for at least ten consecutive business days during this 180-day grace period. If the Company does not regain compliance with the minimum bid price requirement by May 20, 2013, NASDAQ may provide written notification to the Company that its securities will be subject to delisting. At that time, the Company may have alternatives to obtain an extension and/or avoid a delisting, including an appeal of NASDAQ’s delisting determination to the NASDAQ Listing Qualifications Panel, or, alternatively, an additional grace period of 180 days in connection with a listing transfer to the NASDAQ Capital Market. The Company intends to monitor the bid price for its common stock between now and May 20, 2013 and will consider the various available options available to the Company if its common stock does not trade at a level that is likely to regain compliance.