TAIYUAN CITY, China,
Nov. 28, 2012 /PRNewswire-FirstCall/
-- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH)
("Longwei" or the "Company"), an energy company engaged in the
storage and distribution of finished petroleum products in
the People's Republic of China
("PRC"), today announced that it has retained the Weitian Group LLC
("Weitian") for investor relations and corporate communications to
augment its current services with RedChip Companies and to expand
its outreach with institutional investors and analysts.
Weitian is uniquely positioned based on its knowledge of the
U.S. capital markets and Chinese corporate culture. Weitian
has bilingual professionals to provide around-the-clock investor
relations services to clients and investors with its offices in
New York and Beijing.
Weitian's founder, Tony Tian, CFA,
was formerly an Executive Director and Senior Research Analyst
covering China Industrials at Oppenheimer & Co. Prior to
joining Oppenheimer, Mr. Tian was a Vice President and Senior
Research Analyst at Ladenburg Thalmann & Co. and spearheaded
the company's China equity
research effort.
"We are pleased to work with Tony and his team at Weitian," said
Cai Yongjun, Chairman and Chief Executive Officer of Longwei.
"We have added Weitian as a resource to reach out to institutional
investors and analysts as we try to raise our profile in the public
marketplace."
Longwei has filed its Definitive Proxy Statement, Schedule 14A,
with the SEC for its annual shareholder meeting, which will be held
on Thursday, December 20, 2012 at
9:00 a.m. local time at the Company's
offices, located at No. 30 Dajingyu Street, Xiaojingyu Xiang, Wan
Bailin District, Taiyuan City 030024. Longwei separately
plans to host an "investor and analyst day" next quarter to invite
shareholders and interested parties to tour its facilities.
The Company has received strong interest from institutional and
private investors in visiting its facilities, including the new
Huajie facility. Once plans are finalized, the Company will
release additional details.
Longwei recently announced its product revenue increased 32.8%
to $53.1 million for the month ended
October 31, 2012, compared to
$40.0 million for the month ended
October 31, 2011. Longwei's
product sales volume increased 20.2% year-over-year to 41,811.4
metric tons ("mt"), compared to 34,780.0mt for the month ended
October 31, 2011. The increase
in revenues was primarily attributable to the increase in the
average sales price of petroleum and the volume growth of the new
Huajie facility, which contributed $9.2
million in product revenues during its first month in
operation.
Bloomberg News (November 27, 2012)
reported that profits at PRC industrial companies jumped 20.5%
year-over-year in October to RMB 500B
(US $80.4B), with growth accelerating
from a 7.8% rise in September and providing further evidence that
the economy is rebounding. "The improved industrial profitability
further confirms that the Chinese economy is stabilizing and
gaining growth momentum," said Ding Shuang, senior economist for
the PRC at Citigroup Inc. in Hong
Kong, who previously worked at the country's central bank.
Citigroup raised its 2013 GDP growth forecast for China to 7.8 percent from a previous estimate
of 7.6 percent, according to a research report released
November 26, 2012.
Longwei expects year-over-year revenue growth of approximately
26.6% to $646.3 million, and net
income growth of approximately 24.2% to $77.6 million, adjusted for the warrant
derivative liability, for the fiscal year ending June 30, 2013. This growth rate does not account
for any external financing for inventory, which could accelerate
growth. The growth is driven primarily by the ramp-up of the Huajie
facility and organic growth at the Company's two existing
facilities.
Longwei recently reported revenues of US $133.4 million and non-GAAP net income of
$18.3 million or $0.18 per share, adjusted for the non-cash
warrant derivative liability charge, for the first fiscal quarter
ended September 30, 2012. The
Company's product sales volume increased 17.8% year-over-year to
110,587 metric tons during the quarter. As of September 30, 2012, the Company reported total
assets of US $360.0 million and book
value per share of $3.47.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy
company engaged in the storage and distribution of finished
petroleum products in the People's
Republic of China. The Company's oil and gas operations
consist of transporting, storing and selling finished petroleum
products, entirely in the PRC. The Company's headquarters are
located in Taiyuan City, Shanxi
Province. The Company has a storage capacity for its
products of 220,000 metric tons located at three storage facilities
within Shanxi: Taiyuan, Gujiao and
Huajie, which have an individual storage capacity of approximately
50,000 metric tons ("mt"), 70,000mt, and 100,000mt,
respectively. The Company has the necessary licenses to
operate and sell petroleum products not only in Shanxi, but throughout the entire PRC. The
Company's storage tanks have the largest storage capacity of any
non-government operated entity in Shanxi.
The Company seeks to earn profits by selling its products at
competitive prices with timely delivery to transportation
companies, coal mining operations, power supply customers,
large-scale gas stations and small, independent gas stations. The
Company also earns revenue from agency fees by acting as a
purchasing agent for other intermediaries in Shanxi, and through limited sales of diesel
and gasoline at two retail gas stations, each located at the
Company's Taiyuan and Gujiao facilities. The Company seeks to
continue to expand its customer base and distribution platform
through the utilization of its large storage capacity, which allows
the Company the flexibility to take advantage of pricing, supply
and demand fluctuations in the marketplace.
Longwei was recently named to the Forbes list of
"Asia's 200 Best Under a Billion"
from a universe of 15,000 companies. Forbes ranked the
companies based on sales growth, earnings growth and return on
equity in the past 12 months and over three years. As was
reported, Longwei's three-year track record is 45% sales growth,
28% earnings per share growth and 28% return on equity. The
Forbes article can be found at:
http://www.forbes.com/sites/christinasettimi/2012/07/25/asias-200-best-under-a-billion.
For further information on Longwei Petroleum Investment Holding
Limited, please visit http://www.longweipetroleum.com. You may
register to receive Longwei Petroleum Investment Holding Limited's
future press releases or request to be added to the Company's
distribution list by contacting Dave
Gentry at info@redchip.com.
Forward-Looking Statements
Certain statements contained herein constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current expectations, estimates and
projections about Longwei's industry, management's beliefs and
certain assumptions made by management. Readers are cautioned that
any such forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Because such statements
involve risks and uncertainties, the actual results and performance
of the Company may differ materially from the results expressed or
implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Longwei's operations are conducted
in the PRC and, accordingly, are subject to special considerations
and significant risks not typically associated with companies in
North America and Western Europe. These include risks associated
with, among others, the political, economic and legal environment
and foreign currency exchange. The Company's results may be
adversely affected by changes in the political and social
conditions in the PRC and by changes in governmental policies with
respect to laws and regulations, anti-inflationary measures,
currency conversion, remittances abroad, and rates and methods of
taxation. Other potential risks and uncertainties include but are
not limited to the ability to procure, properly price, retain and
successfully complete projects, and changes in products and
competition. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions
to the forward-looking statements made here. Readers should review
carefully reports or documents the Company files periodically with
the Securities and Exchange Commission.
Contact:
At the Company:
Michael Toups, Chief Financial
Officer
Tel: U.S. Office +1-727-641-1357
Email: mtoups@longweipetroleum.com
Web: http://www.longweipetroleum.com
Investor Relations:
Mike
Bowdoin
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 110
Email: mike@redchip.com
Web: http://www.redchip.com
Tina Xiao
Weitian Group LLC
Tel: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
Web: http://www.weitian-ir.com
SOURCE Longwei Petroleum Investment Holding Ltd.