Courtesy of Benzinga.
Longwei Petroleum Investment Holding Ltd. (NYSE: LPH) today provided a corporate update.
“The Company’s operations continue to perform well, and we have had solid first fiscal quarter 2012 results,” said Cai Yongjun, Chairman and CEO of Longwei. “This follows our strong fiscal year 2011 performance, which produced record revenues and earnings. Our revenues increased 40% to $482 million in fiscal 2011, and adjusted net income increased 44% to $68 million or $0.67 earnings per share (adjusted net of non-cash warrant derivative liability expense).”
“We are disappointed with the drop in our share price, which we believe does not correlate to our successful operating results,” stated Mr. Cai. “We continue to move our operations forward and plan to complete the acquisition of the Huajie Petroleum assets during this next quarter using Company cash generated through operations.”
As of June 30, 2011, Longwei had paid a RMB 550 million (approximately $85.1 million USD) deposit toward the total purchase price of RMB 700 million (approximately $108.3 million USD) for the purchase of the assets of Huajie Petroleum, a fuel storage depot in northern Shanxi Province with a 100,000-metric-ton storage capacity.
“Certain U.S.-listed Chinese stocks have been much maligned in the marketplace over accounting and corporate governance issues, which we are not involved in. We have a clean financial audit opinion as of June 30, 2011. Unfortunately, the ongoing volatility in the capital markets and the turmoil in the Chinese small-cap sector have pulled stocks in our sector down considerably,” stated Michael Toups, CFO of Longwei.
Longwei has undergone two reviews of certain of its filings by the Securities and Exchange Commission (“SEC”) with the effectiveness of its S-1 registration statement in March 2010 and S-3 registration statement in February 2011.
