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8-K - China Integrated Energy, Inc. | v200719_8k.htm |
EX-10.2 - China Integrated Energy, Inc. | v200719_ex10-2.htm |
EX-10.1 - China Integrated Energy, Inc. | v200719_ex10-1.htm |
EX-99.1 - China Integrated Energy, Inc. | v200719_ex99-1.htm |
Exhibit
99.2
China
Integrated Energy Completes Acquisition of a 50,000-ton Biodiesel Production
Facility in Chongqing City, China
Company
on Track to Meet Its 2010 Goal of Doubling Biodiesel Production
Capacity
XI'AN, China, Oct. 26 /PRNewswire-Asia-FirstCall/ -- China
Integrated Energy, Inc. (Nasdaq:CBEH), a leading non-state-owned integrated
energy company in the
People's Republic of China,
today announced that it has closed the acquisition of a 50,000 metric
ton biodiesel production
facility located in Chongqing City, China from Chongqing Tianrun Energy
Development Co., Ltd. The Company expects to ramp up production and distribution
of biodiesel product from this facility immediately after the
acquisition.
The acquired facility uses first generation
biodiesel production technology, similar to the production process used in the
Company's current 100,000-ton production plant. The Company's expertise in
biodiesel production and its established distribution network should allow the acquired facility to
achieve gross margins of approximately 30%. The Company is the only non-state
owned biodiesel producer with a nationwide distribution
license.
"This acquisition will be accretive to
our revenue and net income immediately," said Mr. Gao Xincheng, Chief
Executive Officer of China Integrated Energy, Inc. "With our newly-constructed
50,000-ton biodiesel production facility, which will come on line later this
year, we will double our biodiesel production capacity to 200,000 tons this year. With continued government
support for renewable energy sources such as biodiesel and strong domestic
demand for energy, we are confident in generating strong earnings and cash flows
over the next several years."
The Company is paying approximately $16.5 million in cash for the Chongqing Tianrun
biodiesel production facility. Management expects the acquisition to add
approximately $32
million in revenue and
$8 million in pretax income in 2011. The Chongqing
Tianrun biodiesel plant is subject to 15% corporate income tax rate. The
Company will fund the acquisition with cash on hand, which was approximately
$58.7 million as of June 30, 2010.
The completion of the newly-constructed
50,000-ton biodiesel production facility has been slightly delayed, due to recent inclement weather and
a holdup on equipment clearance by customs. However, the Company expects
to commence testing and ramp-up of the newly constructed biodiesel production
facility in December
2010. The new production
facility is adjacent to the
Company's existing 100,000-ton biodiesel production facility in Tongchuan City,
Shaanxi
Province, China. The company reaffirms its 2010
financial guidance of revenue of $425 million to $430 million, and net income of $52 million to $52.5 million.
About China Integrated Energy,
Inc.
China Integrated Energy, Inc. is a
leading non-state-owned integrated energy company in China engaged in three business segments: the
production and sale of biodiesel, the wholesale distribution of finished oil and
heavy oil products, and the
operation of retail gas stations. The Company operates a 100,000-ton biodiesel
production plant with a goal of doubling capacity to 200,000 tons in 2010
through both internal expansion and an acquisition. The Company utilizes an
extensive distribution network to
distribute traditional petroleum products, and operates thirteen retail gas
stations in China. For additional information on the
Company please visit http://www.chinaintegratedenergy.com.
An online investor kit including a
company presentation, press
releases, current price quotes, stock charts and other valuable information for
investors is available at http://www.chinaintegratedenergy.com. To subscribe to
future releases via e-mail alert, visit
http://www.chinaintegratedenergy.com/alerts.
Safe Harbor
Statement
This press release includes statements
that may constitute forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. For example, statements about the future use
of the proceeds are forward looking and subject to risks. China Integrated Energy, Inc. may also
make written or oral forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in its
annual report to shareholders, in press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties. Statements that
are not historical facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking statements involve inherent risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements. A number of important factors could cause actual
results to differ materially from those contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, risks outlined in the Company's
filings with the U.S. Securities and Exchange Commission. The Company does not
undertake any obligation to update any forward-looking statement, except as required under
applicable law.
For more
information, please contact:
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China Integrated
Energy, Inc.
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Susan
Zhou
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Vice President,
Investor Relations
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Tel:
+1-305-393-5536
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Email:
susan.zhou@cbeh.net.cn
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Web:
http://www.chinaintegratedenergy.com
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HC International,
Inc.
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Ted
Haberfield, Executive VP
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Tel:
+1-760-755-2716
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Email:
thaberfield@hcinternational.net
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Web:
http://www.hcinternational.net
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