InvestorsHub Logo

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Live Updating
profile icon
Investor4income Free
11/06/20 12:13 PM
profile icon
tranle447 Free
10/28/20 4:48 AM
profile icon
Investor4income Free
08/31/20 6:52 PM
profile icon
surfer44 PremiumMember
04/02/16 7:48 PM
profile icon
surfer44 PremiumMember
01/22/15 10:47 PM
profile icon
Renee PremiumMember
12/23/14 11:54 PM
profile icon
bargainhunter65 Free
12/23/14 11:48 PM
profile icon
Renee PremiumMember
12/23/14 11:20 PM
profile icon
bargainhunter65 Free
12/23/14 11:07 PM
profile icon
Roger Addams Free
08/04/14 10:13 PM
profile icon
stocktrademan Free
07/24/14 11:00 AM
profile icon
Renee PremiumMember
06/25/14 8:53 AM
profile icon
Yazterman Free
02/15/14 10:54 AM
profile icon
Yazterman Free
02/15/14 10:49 AM
profile icon
Yazterman Free
02/15/14 10:44 AM
profile icon
Yazterman Free
02/14/14 3:23 PM
profile icon
Yazterman Free
02/14/14 3:22 PM
profile icon
Yazterman Free
02/14/14 3:11 PM
profile icon
ErnieBilco PremiumMember
01/15/14 4:08 PM
profile icon
blowout Free
12/18/13 12:55 PM
profile icon
ErnieBilco PremiumMember
12/14/13 7:40 PM
profile icon
flyondewall Free
12/14/13 6:24 PM
profile icon
Roy London Terminated
12/09/13 6:44 AM
profile icon
ospreyeye Free
12/02/13 2:36 AM
profile icon
Roy London Terminated
12/01/13 6:44 AM
profile icon
ErnieBilco PremiumMember
11/29/13 5:29 PM
profile icon
ErnieBilco PremiumMember
07/04/13 6:40 PM
profile icon
pj McMulligan Free
05/31/13 10:28 AM
profile icon
ErnieBilco PremiumMember
05/21/13 9:25 PM
profile icon
pj McMulligan Free
05/21/13 3:59 PM
profile icon
~S.B.A.~ Free
05/15/13 7:10 PM
profile icon
ErnieBilco PremiumMember
05/15/13 4:41 PM
profile icon
pj McMulligan Free
05/15/13 12:27 PM
profile icon
ErnieBilco PremiumMember
04/20/13 10:37 PM
profile icon
ErnieBilco PremiumMember
01/08/13 11:16 PM
profile icon
mick Grandfathered
12/08/12 10:54 PM
profile icon
ErnieBilco PremiumMember
12/08/12 10:53 PM
profile icon
ErnieBilco PremiumMember
12/08/12 10:52 PM
profile icon
mick Grandfathered
12/08/12 10:44 PM
profile icon
ErnieBilco PremiumMember
12/08/12 10:42 PM
profile icon
mick Grandfathered
12/06/12 5:25 PM
profile icon
ErnieBilco PremiumMember
09/25/12 8:39 PM

China Integrated Energy, Inc. (fka CBEH) RSS Feed

Followers
14
Posters
59
Posts (Today)
0
Posts (Total)
309
Created
03/13/07
Type
Free
Moderators


China Integrated Energy, Inc (CBEH)

http://www.chinaintegratedenergy.com/

China Integrated Energy, Inc. is a leading non-state-owned, integrated energy company in China engaged in three business segments: the wholesale distribution of finished oil and heavy oil products, the production and sale of biodiesel, and the operation of retail gas stations.

Oil Distribution - We are a high-volume distributor, selling primarily gasoline, diesel, and heavy oil in fourteen provinces and municipalities through seven sales offices located in various regions of China. read more

Biodiesel Production and Sales - We operate a 100,000-ton biodiesel production plant located in Tongchuan City, Shaanxi Province and a 50,000-ton plant in Chongqing City, China. We will increase our total production capacity to 200,000 tons by constructing a new 50,000-ton production facility, adjacent to our 100,000-ton plant in Tongchuan City. read more

Retail Gas Stations - We operate seven retail gas stations located in Xi’an City and other areas in Shaanxi Province with plans for expansion. read more


 

Coporate Video









http://a.eqcdn.com/chinaintegratedenergyinc/files/pages/business-units/biodiesel-production-sales/50k-tongchuan-city-biodiesel-facility/IMG_3307.JPG


http://a.eqcdn.com/chinaintegratedenergyinc/files/pages/business-units/biodiesel-production-sales/50k-tongchuan-city-biodiesel-facility/IMG_3298.JPG


image description


 


http://a.eqcdn.com/chinaintegratedenergyinc/files/pages/business-units/biodiesel-production-sales/100k-tongchuan-city-biodiesel-facility/biodiesel2.jpg

 
 

 

Wholesale Distribution of Finished Oil and Heavy Oil Products

Oil Distribution

We wholesale a variety of oil products including gasoline, diesel, and heavy oil.  Gasoline and diesel represent the majority of oil products consumed in China due to automobile and truck usage.  Diesel is also used in agricultural farming machines and power generation. Heavy oil is for further refinery into finished oil products, and also broadly used as fuel for ship boilers, industrial furnaces and heating purposes.  Wholesale distribution of finished oil and heavy oil products accounted for approximately 67.6% of our total sales in 2009, and approximately 66.3% of our total sales in 2008.

We purchased approximately 65.5% of our gasoline and diesel oil products from our top five suppliers in 2009. During 2009, we purchased approximately 30.8% of our gasoline and diesel oil products from Shaanxi Yanchang Group, the fourth largest oil company in China, with whom we have had a strong long-term relationship. While Shaanxi Yanchang Group supplies most of our gasoline and oil, we are actively seeking other sources as well.

Wholesale Oil Distribution Photo Gallery

Click the image below to view photos.

Wholesale Oil Distribution



Oil Storage

We use four oil storage depots, which in the aggregate have the capacity to store approximately 59,000 m3 of oil products.  Two of the state-owned depots are located on railways that provide us convenient access for distributing our products.  We also have access to a 2.65-kilometer railway track connecting the oil storage depots located within our biodiesel production facility to the main railway in Tongchuan City, Shaanxi Province.

Oil Sales and Marketing

We have developed a stable sales network for our products in fourteen provinces and municipalities.  We now employ thirty-six full-time salespersons, and as our business grows, we intend to further expand our network and develop more sales channels.  For our wholesale distribution of finished and heavy oil, we will distribute to two additional provinces in the next eighteen months, adding additional salespersons and establishing more regional sales offices.  We plan to increase our sales volume through enhancing our distribution footprint, and further penetrating our existing customer base and business territories.

Our Customers

We currently sell our finished oil and heavy oil products to regional distributors in China that supply to retail service stations, and directly to end users through our retail gas stations.  We have adopted different terms for payment based upon the financial strength of the customer.  For example, we have entered into agreements with PetroChina, SINOPEC, and other state-owned enterprises whereby we deliver products to agreed-upon locations, and these customers agree to pay us after delivery.  However, we require partial pre-payment  and cash on delivery from our customers that operate distributorships, or own and operate private gas stations, typically 10% to 15% of the total purchase price.  We have not experienced any uncollectible accounts receivable or bad debt write-offs during the past three years.

In 2008 and 2009, our top five customers purchased approximately $49.3 million and $113.2 million of our products, representing approximately 22.8% and 39.1% of our sales during that period, respectively.  China Petroleum and Chemical Corporation Chuanyu Trading Co., Ltd., our largest customer, accounted for approximately 26.6% of our sales in 2009.

Production and Sales of Biodiesel

Biodiesel Production

In 2006, we built a 10,000 square meter biodiesel production facility with an annual design capacity of 100,000 tons in Tongchuan City, Shaanxi Province.  Our achievable utilization rate, after taking into account national holidays and required periodic maintenance, is 90%.  In October 2010, we acquired a 50,000-ton plant in Chongqing City, China. By the end of 2010, we will increase our total production capacity to 200,000 tons by constructing a new 50,000-ton production facility, adjacent to our 100,000-ton plant in Tongchuan City.

Biodiesel Facilities Photo Galleries

Click the images below to view photos of our biodiesel facilities.

100,000-ton Biodiesel Facility
Tongchuan City
50,000-ton Biodiesel Facility
Tongchuan City
50,000-ton Biodiesel Facility
Chongqing City
Potential Acquisition
   
Hainan Lin Gao Chemical Co., to build a 300,000-ton biodiesel plant at this facility.

Biodiesel Proprietary Production Technology

First Generation Technology

We have been awarded three patents relating to the use of multiple feedstock interchangeably in biodiesel production. Our biodiesel feedstock includes non-edible seed oil, waste cooking oil and vegetable oil residue, most of which have limited alternative uses. We have submitted eight additional patent applications, of which six have passed the preliminary examination and the other two have been accepted for review.

We maintain a flexible procurement model in which we adjust the relative quantities of each type of raw material we purchase, depending on their respective purchase prices, to minimize our raw material costs. In 2009, non-edible seed oil, vegetable oil residue and waste cooking oil accounted for approximately 40%, 43% and 17% of our raw material costs relating to our biodiesel production, respectively.

Our first-generation biodiesel meets the Chinese Biodiesel Standard B100. Our biodiesel can be blended with regular petro-diesel and used by existing diesel engines with no change in engine performance.

Second Generation Technology

The new 50,000-ton second-generation biodiesel production facility, adjacent to our 100,000-ton first-generation production facility, is estimated to reduce production costs by 20%. In addition to the feedstock used in the first-generation facility (i.e. non-edible seeds, waste cooking oil, vegetable oil residue), the new second-generation facility can utilize a diverse supply of raw materials, such as crop straw (wheat straw, corn straw, cotton straw, weed, etc.), agricultural waste (tree branches, tree leaves), as well as organic waste, providing us with better input cost controls while ensuring optimal capacity utilization.

Furthermore, the new technology is able to recycle unused feedstock and water used in the production process, meeting our environmental goals while delivering further cost reductions. China currently produces 1.3 billion tons in organic waste annually.

Our second-generation biodiesel meets Europe IV fuel standards and can be mixed with both diesel and first-generation biodiesel at any ratio.

Biodiesel Raw Material Supply

We have access to a range of biodiesel raw materials.   Besides non-edible seed oil, we can also use waste cooking oil and vegetable oil residue for biodiesel production.  We have signed raw material purchasing contracts with local associations, some of which are governmental entities.  These associations organize local farmers to plant and harvest oil plants.  The purchasing contracts obligate most of the associations to first offer to sell the feedstock to us.

Shaanxi Province is one of the largest cultivators of Chinese prickly ash, an oil plant, in China.  Together, the local farmers in Shaanxi Province have planted approximately 240,000 acres of Chinese prickly ash, 857,000 acres of cornel, and 10,000 acres of Chinese pistache.  Although we could satisfy all of our current feedstock demands solely with Chinese prickly ash, we continue to diversify our feedstock supply to lower input costs.  The abundant supply of feedstock currently available in Shaanxi Province is sufficient for our current needs, and should  be sufficient for our expanded demands for raw material once we expand our biodiesel production facility or acquire a new facility.

Biodiesel Sales and Marketing

We are the only non-state owned biodiesel producer with a nationwide distribution license.  We continue to leverage our distribution infrastructure to sell our biodiesel to existing customers and to acquire new ones.  The main advantages of biodiesel over petro-diesel are pricing, efficiency, safety (due to a higher flash point), and the fact that biodiesel is environmentally friendly.  Our targeted markets are power plants, marine transportation companies, seaport operations, and other industrial customers which consume large volumes of diesel fuel.



http://a.eqcdn.com/chinaintegratedenergyinc/files/pages/business-units/biodiesel-production-sales/potential-acquisition/pa3.jpg
 

Retail Gas Stations

Operation of Retail Gas Stations

We sell all grades of gasoline and diesel at our seven retail gas stations.  Our customers include automobile, bus, and truck drivers. 

Our advantages are:

  1. As a well-established finished oil distributor, we have a stable and sufficient oil supply to support our retail gas station operations at a high margin.  
  2. We sell blended diesel with a blending ratio of 15.0% of biodiesel and 85.0% of petro-diesel to end customers at the same price as petro-diesel, which provides us additional profitability from our retail gas station operations. 
  3. We maintain competitive pricing to attract customers.  We plan to continue to expand our retail gas station portfolio.

Retail Gas Station Photo Gallery

Click the images below to view photos of our retail gas stations.

Jinzheng Gas Station
Shenmu Gas Station





 

Share Statistics

Outstanding: 44.5M
(as of January 7, 2014)

Float: 11.9M

Institutions Holding Shares: 46

Percent Held By Institutions: 21.54%

Board Info
Posts Today
0
Posts (Total)
309
Posters
59
Moderators
New Post