TAIYUAN CITY, China,
Dec. 3, 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"), announced that 10,654,837 warrants outstanding associated
with its October 29, 2009 financing
(the "Warrants") have expired.
Longwei previously completed a private placement financing,
principally with institutional investors, on October 29, 2009. At the time of the
financing, the Company issued a total of 14.8 million Warrants
exercisable at $2.255 per
share. These investors have subsequently exercised
approximately 4.1 million Warrants in total, of which 977,415
Warrants have been exercised in the past 60 days. A total of
approximately 10.7 million Warrants have expired. The Company
now has no warrants or stock options outstanding in its capital
structure.
"We are pleased to have cleaned-up our capital structure and
remain committed to building a strong company and creating value
for our shareholders," said Cai Yongjun, Chairman and Chief
Executive Officer of Longwei. "We are also honored to have
been selected as the "Editor's Pick" for Global Investing on
Seeking Alpha for the independent article entitled, 'Simply
Put, Longwei Petroleum Worth $6 or
More Per Share,' by Kevin Chen
(November 29, 2012).
The complete article can be found on the Seeking Alpha
website:
http://seekingalpha.com/article/1036491-simply-put-longwei-petroleum-worth-6-or-more-per-share?source=email_global_markets&ifp=0
The Company believes it is well-positioned in the market and
economic indicators in the PRC continue to improve. Standard
& Poor's Rating Services ("S&P") on Thursday, November 28, 2012, affirmed the
long-term credit rating of the PRC at "AA-" with a stable
outlook. S&P said in its release that its PRC rating
assessment was based on, "Strong economic growth potential, robust
external position, and the government's relatively healthy fiscal
position." Despite the conservative nature of the PRC's new
Politburo Standing Committee, S&P credit analyst Kim Eng Tan said, "Efforts toward deepening
structural and fiscal reforms are likely to continue."
MarketWatch (November 29,
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 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, please visit
http://www.longweipetroleum.com. You may register to receive the
Company's future press releases on the website under 'Email
Alert.'
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.
Contacts:
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
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.