Management expects $195.4 million of revenues and $35.5 of net income
for fiscal year ending March 31, 2012
BEIJING, April 6, 2011 /PRNewswire-Asia/ --LianDi Clean Technology
Inc. (OTC Bulletin Board: LNDT), ("LianDi" or the "Company"), a leading provider
of clean technology, downstream flow equipment, engineering services and
software to China's leading petroleum and petrochemical companies, today
provided preliminary financial projections for the fiscal year ending March 31,
2012.
(Unaudited) FY2011 Guidance FY2012 Guidance YOY % Growth
Revenue $130 million $195.4 million 50.3%
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Net Income $25 million $35.5 million 42%
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Management made the following assumptions to arrive at its preliminary
forecasts:
Business Projected Revenue Projected Gross Margin
Equipment and services $130 million 20%-23%
Software $14 million 60%-65%
Chemicals $48 million 8%-10%
Tank Cleaning $3.4 million 40%-50%
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Total $195.4 million 20%-23%
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"We expect strong organic growth across each of our businesses in fiscal 2012,
driven by strong demand from our two largest customers, Sinopec and China
National Petroleum," began Mr. Jianzhong Zuo, Chairman, Chief Executive Officer
and President of LianDi. "By meeting key infrastructure needs of the largest oil
and gas producers in China, we anticipate our core equipment and software
businesses to be key growth conduits. We believe the addition of the sludge
treatment services through our partnership with System Kikou will leverage new
government mandates to provide incremental, high margin revenue. We are also
excited about the long-term growth prospects for our specialty chemicals
business, Anhui Jucheng, which expands our product portfolio to another market
vertical. We will continue to evaluate ways to expand our product and service
portfolio as we move through 2011."
The Company's software business has expanded from what was initially a
proprietary system to now include broad based applications with enhanced
functionality. In order to meet customer requirements, LianDi has incorporated
other developers' software modules into the system architecture and the cost
associated will impact margins. Management's goal is to consistently grow this
business during the next three years.
The Company's fiscal 2011 year ended on March 31, 2011. LianDi's fiscal 2011
financials will be reported before June 30, 2011.
About LianDi Clean Technology Inc.
LianDi was established in July 2004 to serve the largest Chinese petroleum and
petrochemical companies. Through its five operating subsidiaries, Hua Shen
Trading (International) Ltd., Petrochemical Engineering Ltd., Bright Flow
Control Ltd., Beijing JianXin Petrochemical Engineering Ltd., and Anhui Jucheng
Fine Chemicals Co., Ltd., the Company distributes a wide range of customized
valves and equipment and provides associated value-added technical and
integration service. The Company also develops and markets proprietary
optimization software for the polymerization process. In addition, LianDi is
focused on the large, rapidly growing, clean technology market for oil
refineries, projected to reach over $1 billion in the next 10 years. This market
is expected to benefit from favorable Chinese government policies, including tax
benefits and other incentives. Through the acquisition of a 51% interest in
Anhui Jucheng Fine Chemicals Co., Ltd. in July 2010, the Company manufactures
and sells organic and inorganic chemicals to industrial and petrochemicals
customers.
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements" relating to
the business of LianDi and its subsidiary companies. All statements, other than
statements of historical fact included herein are "forward-looking statements"
including statements regarding: the impact of the proceeds from the private
placement on the Company's short term business and operations; the general
ability of the Company to achieve its commercial objectives, including the
ability of the Company to sustain growth; the business strategy, plans and
objectives of the Company and its subsidiaries; and any other statements of
non-historical information. These forward-looking statements are often
identified by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks and
uncertainties. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic reports that are
filed with the Securities and Exchange Commission and available on its website
(http://www.sec.gov )
For more information, please contact:
Investor Relations:
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
Source: LianDi Clean Technology Inc.
