BEIJING, Jan. 23 /Xinhua-PRNewswire-FirstCall/ -- Sino Gas International
Holdings, Inc. (OTC Bulletin Board: SGAS.OB) ("Sino Gas", the "Company"),
through its Beijing Zhong Ran Wei Ye Gas Co., Ltd. ("Beijing Gas") a rapidly
growing developer of natural gas distribution systems in small- and medium-
sized cities, as well as a distributor of natural gas to residential,
commercial and industrial customers in China, announced today that it entered
into a stock purchase agreement to acquire all the capital stock of Beijing
Chenguang Gas Co., Ltd., a privately held natural gas distribution business in
Beijing, China for approximately $3.35 million in cash.
The transaction includes all assets, customer relationships and concession
rights owned by Beijing Chenguang Gas Co., Ltd., including the exclusive
concession rights to build and operates seven gas distribution systems
currently serving 25,202 residential customers, with two of the seven systems
located in Beijing and the remainder in Shijiazhuang, Xinji City and Cheng'an
County in the Hebei Province, as well as four industrial projects with gas
supply of 27,000 to 46,000 cubic meters per day. In 2005, Beijing Chenguang
Gas Co., Ltd. realized revenues of $2.29 million, $1.64 million from gas sales
and $0.59 million from connection fees.
"The acquisition of Beijing Chenguang Gas Co is an important achievement
for Sino Gas, as it gives us exclusive access to attractive gas distribution
markets and helps us significantly accelerate our growth," commented Mr. Liu,
Chairman, CEO and President of Sino Gas. "We are pleased with the execution of
our strategy so far and look forward to continue to grow our business
organically and through acquisitions to reach the goal of becoming a leading
distributor of natural gas in China."
Upon completion of this transaction, Beijing Chenguang Gas Co., Ltd. will
become a wholly owned subsidiary of Beijing Gas. This transaction is expected
to close on or before the 18th of February 2007 and will add 25,202 connected
households to Sino Gas' existing 33,000 as of the end of the third quarter
2006 and be accretive to earnings in 2007.
About Sino Gas International Holdings, Inc.
The Company, through its indirectly wholly-owned subsidiary, Beijing Zhong
Ran Wei Ye Gas Co., Ltd. ("Beijing Gas"), and the subsidiaries of Beijing Gas,
is a leading developer of natural gas distribution systems in small- and
medium-sized cities in China, as well as a distributor of natural gas to
residential, commercial and industrial customers in China. The company owns
and operates 20 natural gas distribution systems serving approximately 33,000
residential and four commercial and industrial customers. Facilities include
approximately 200 kilometers ("km") of pipeline and delivery networks with a
designed daily capacity of approximately 40,000 cubic meters of natural gas
("m3"). The company is currently constructing four additional natural gas
distribution systems and is planning two more natural gas distribution
systems. Beijing Gas Company owns and operates natural gas distribution
systems primarily in Hebei, Jiangsu, and Shandong Provinces. For further
information, visit the Company's website at http://www.sino-gas.com .
About Beijing Chenguang Gas Co., Ltd.
Beijing Chenguang Gas Co., Ltd. ("Chenguang") is a developer of technology
for natural gas purification, compression and transportation, and is also a
developer of natural gas distribution systems, as well as a distributor of
natural gas to residential, commercial and industrial customers in China.
Chenguang owns and operates 7 gas distribution systems with 25,202 connected
households; it also operates 4 industrial locations.
Safe Harbor Statement
This announcement contains "forward-looking statements" within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact in this
announcement are forward-looking statements, including but not limited to, the
Company's ability to raise additional capital to finance the Company's
activities; the effectiveness, profitability, and the marketability of its
products; legal and regulatory risks associated with the Share Exchange; the
future trading of the common stock of the Company; the ability of the Company
to operate as a public company; the period of time for which its current
liquidity will enable the Company to fund its operations; general economic and
business conditions; the volatility of the Company's operating results and
financial condition; and other risks detailed in the company's filings with
the Securities and Exchange Commission. These forward-looking statements
involve known and unknown risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the companies and
the industry. Although the company believes that the expectations expressed
in these forward looking statements are reasonable, they cannot assure you
that their expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the anticipated
results.
All information in this release is as of January 21, 2006. The Company
undertakes no duty to update any forward-looking statements to conform the
release to actual results or changes in its circumstances or expectations
after the date of this release.
Contact:
Sino Gas International Holdings, Inc.
Ms. Fang Chen, Chief Financial Officer,
Phone: +86-10-8260-0042
Email: 0428gg@vip.163.com
CCG Elite Investor Relations
Crocker Coulson, President
Ed Job, Financial Writer
Phone: +1-646-213-1915/1914 (New York)
Email: crocker.coulson@ccgir.com/
ed.job@ccgir.com
