86.1 million Basic
113.8 million diluted
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.
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.
Link to the company's latest earnings PR for the 1st quarter of Fiscal year 2010: http://finance.yahoo.com/news/Longwei-Petroleum-Announces-prnews-2586701282.html?x=0&.v=19
-- Revenue up 33% Year-over-Year to $59.36 million
-- Net Income up 31% Year-over-Year to $7.21 million, or $0.09 EPS
-- Net Income Excluding Non-Cash Fair Value Adjustments Associated with
Stock Warrants was $8.26 million, or $0.10 EPS
-- Operating Income up 48% Year-over-Year to $11.06 million
Mr. Cai Yongjun, chairman and chief executive officer of Longwei Petroleum Investment Holding Ltd., stated: "I am very pleased with our financial results for the first quarter of fiscal 2010. I can also say that plans to have our Gujiao facility fully operational in January 2010 are on track, and the facility is already fulfilling some small but daily customer orders for us at this time. We look forward to strong growth in both Taiyuan and Gujiao during the next several years to come."
* Longwei owns one state-of-the-art fuel storage facility with 14 storage tanks providing a total capacity of 50,000 metric tons in the Shanxi Province.
• The Company is currently constructing a second fuel storage facility in the industrial city of Gujiao which will add 70,000 metric tons to Longwei’s total capacity. Construction is expected to be completed by the end of 2009.
• Longwei has exhibited average year-over-year revenue growth of 46% and net income growth of 39% over the last five years.
Company website: http://longweipetroleum.com/
Investor Relations: RedChip Companies, Inc. - Dave Gentry (407)644-4256 ext. 104 e-mail: [email protected] http://www.redchip.com/home.aspx
Link to video about Longwei's operations: (Copy & Paste) mms://wm.vitalstreamcdn.com/aurelius_vitalstream_com/RC/podcasts/lpih/LPIH_Promo_8212009.wmv