Founded in 1995 and approved by the Ministry of Commerce of the People's Republic of China, Longwei is one of the leading diesel, gasoline, fuel oil and solvent oil distributors/wholesalers in Taiyuan City, Shanxi Province, P.R. China. The Company sells its products mainly to large-scale gas stations, coal plants and power supply companies, and on a smaller scale to small, independent gas stations. Longwei also owns a railway system to transport its products to customers. The Company has 40 employees, including three management personnel.
The Company's third-largest customer base is made up of small independent gas stations. Longwei owns twelve gas stations in Shanxi Province, of which it operates one, with the other eleven being franchised gasoline stations.
"Management believes the Company's stock price has been depressed over the past year due to the alleged fraud in several other U.S.-listed PRC small-cap companies. Collectively holding approximately 67% of the Company's outstanding common shares, the management team is in the same boat as all public shareholders and is extremely frustrated by the current low valuation of the Company's share price," stated Mr. Cai. "Unlike some other small caps, Longwei has a straightforward business model, highly visible assets and ongoing business operations at our storage facilities. Longwei is one of the largest non-state-owned petroleum wholesalers in central China and is regarded as a critical company, operating in a critical industry, for Shanxi Province."
The Company's wholly-owned operating subsidiary, Taiyuan Longwei Economy & Trading Co., Ltd., was one of 15 companies in Taiyuan City and one of only 140 companies in Shanxi Province recognized on February 15, 2012 as a "Provincial Honorable and Credible Enterprise" for 2010. The Company received the award from the Shanxi Administration for Industry and Commerce based on Longwei's reputation as a company that honors its contractual obligations and maintains its credibility with customers. "We have worked hard to build a good reputation for the Company. The management team and all of our employees labor diligently to service our customers and the community for the betterment of our surrounding region," stated Mr. Cai.
"Given the demand for petroleum products in China and rising worldwide petroleum prices, we expect revenue and earnings growth to increase during the second half of our fiscal year. We are working diligently to close on the asset purchase of Huajie Petroleum, and once completed it will provide an additional catalyst for potential growth by nearly doubling our storage capacity and expanding our footprint in central China," stated Mr. Toups. "We believe our strong market position and proven business model will continue to result in long-term revenue and earnings growth. We are also committed to improving transparency and communications with our shareholders."
About Longwei Petroleum Investment Holding Li
The Shanxi Province is growing at 9%-10% a year and is the third largest consumer of petroleum products in China. In fact, the power plants in Shanxi Province provide Beijing — China's second largest city and capital — with 30% of its electricity. Currently, there are 4,692 gas stations servicing approximately four million cars in the province, providing Longwei with an abundant available target market for its products. In addition, Shanxi Province is a highly localized and specialty market, thus Longwei does not compete at the national level.
--------------------------------------------------
Select Historical Financial Data for the Years Ended June 30, 2011 - 2007
§
http://secfilings.nasdaq.com/edgar_conv_html/2011/...tml#FIS_BUSINESS (Amounts in $USD Millions)
§
2011
§
2010
§
2009
§
2008
§
2007
§
Revenues
§ $ 481.6 $ 343.2 $ 196.8 $ 143.8 $ 93.8
Annual Revenue Growth
§ 40 % 74 % 37 % 53 % 1 %
Net Income
§ $ 62.7 $ 50.2 $ 21.8 $ 20.7 $ 12.0
Annual Net Income Growth
§ 25 % 130 % 5 % 73 % (18 %)
Total Assets
§ $ 273.3 $ 187.6 $ 120.1 $ 93.4 $ 60.7
Total Liabilities
§ $ 11.6 $ 9.7 $ 5.2 $ 4.9 $ 3.0
Total Shareholder’s Equity
§ $ 261.7 $ 177.9 $ 114.9 $ 88.5 $ 57.7
--------------------------------------------------
Die neuesten Zahlen für die ersten drei Quartale Ende Dezember 2011 unter :
http://google.brand.edgar-online.com/...u=%2fdefault.aspx%3fsym%3dLPHerhältlich:
http://google.brand.edgar-online.com/...u=%2fdefault.aspx%3fsym%3dLPH