China Integrated Energy, Inc. (fka CBEH)

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Press ReleasesEmail AlertsIR ContactsRSS News FeedChina Integrated Energy Announces Lease Termination of Four Gas Stations in Shaanxi Province
XI'AN, China, April 20, 2011 /PRNewswire-Asia/ -- China Integrated Energy, Inc. (Nasdaq: CBEH) (the "Company"), a leading non-state-owned integrated energy company in the People's Republic of China, today announced that four gas station leases entered into in 2008 have been terminated by Shaanxi Highway Service Co., Ltd. ("Shaanxi Highway"), reducing the total number of the Company's gas stations from thirteen to nine. Shaanxi Highway has recalled all of the 32 gas stations that are currently being leased by Shaanxi Highway to third parties, including the four gas stations leased by the Company.

On May 20, 2008, the Company leased four gas stations for operation from Shaanxi Highway. The annual lease payment for each gas station was approximately $437,000 (RMB 3,000,000). The Company was required to make the lease payments for all four gas stations in advance in five-year increments. The first five-year aggregate lease payment of $8,747,631 (RMB 60,000,000) has been paid by the Company to Shaanxi Highway.

Each gas station will be inspected by Shaanxi Highway, and upon its approval, the Company will receive the pro-rated portion of the prepaid lease payment by April 30, 2011. The Company expects the aggregate returned amount to be approximately $3,970,496 (RMB 26,000,000).

"As mentioned in my letter to shareholders on March 23, 2011, since early 2010, the cost of acquiring or leasing retail gas stations has escalated significantly in China, primarily as a result of increased competition to buy gas stations from state-owned petroleum companies working in cooperation with foreign entities," said Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy, Inc. "Given the fierce competition that exists now in the retail gas station market in China, we will continue to evaluate organic and acquisition opportunities in all three of our business segments - biodiesel production, wholesale distribution and retail gas stations - to prudently deploy available resources to achieve the greatest investment return."

Addresses and Maps to Nine Gas Stations

Listed below are the remaining 9 gas stations. The Company has displayed maps to identify the location of each gas station on its website. The link to the maps is:

http://www.chinaintegratedenergy.com/business-units/retail-gas-stations/maps

1
Xinyuan Gas Station
Xinhua Village, Disai Town, Baqiao District, Xi'an, Shaanxi Province, China

2
Lantian Gas Station
Xihou Village, Hongqing Community, Baqiao District, Xi'an, Shaanxi Province, China

3
Fangwei Road Gas Station
Fangwei Road, Xi'an, Shaanxi Province, China

4
Chan'an Lanlian Gas station
Section Weiqubeiyuan, Chang'an South Road, Xi'an, Shaanxi Province, China

5
Andong Gas Station
Liu Village North, Baling Town, Baqiao District, Xi'an, Shaanxi Province, China

6
Jindou Gas Station
Xihu Road, Xi'an, Shaanxi Province, China

7
Huafu Gas Station
Hongguang Road, Xi'an, Shaanxi Province, China

8
Jinzheng Gas Station
Southern section of Changhong Road, Qindu District, Xianyang, Shaanxi Province, China

9
Shenmu Gas Station
Shenmu County, Yulin City, Shaanxi Province ,China





Terminated Four Gas Stations

Northern Gas Station in Yang County Service Stations
Yang County Service Stations, Xihan Expressway, Shaanxi Province, China

Southern Gas Station in Yang County Service Stations
Yang County Service Stations, Xihan Expressway, Shaanxi Province, China

Northern Gas Station in Cheng County Service Stations
Cheng County Service Stations, Xiyu Expressway, Shaanxi Province, China

Southern Gas Station in Cheng County Service Stations
Cheng County Service Stations, Xihan Expressway, Shaanxi Province, China