BEIJING, Dec. 28 /Xinhua-PRNewswire/ -- Sino Gas International Holdings, Inc. (OTC Bulletin Board: SGAS) (“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, today announced the acquisition of Yuxian Jinli Gas Co., Ltd. and Xiahuayuan Jinli Gas Co., Ltd., two privately held natural gas distribution businesses in the Hebei Province of China for approximately $1.5 million in cash.
This acquisition includes all the assets, customer relationships and the concession rights to be the exclusive gas distributor in the Yuxian and Xiahuayuan regions for a period of 25 years. Yuxian Jinli Gas Co., Ltd. has 4,268 connected households with annual revenues of approximately $195 thousand from recurring gas sales. Xiahuayuan Jinli Gas Co., Ltd. has 532 connected households with annual revenues of approximately $2.4 thousand from recurring gas sales. The proposed new projects in these regions will add 4,900 households in Yuxian and 2,900 households in Xiahuayuan and are expected to generate $2.6 million in revenue from connection fees for Sino Gas during 2007 to 2008.
“We are very pleased to announce the addition of these two new subsidiaries to our group,” commented Mr. Liu, Chairman, CEO and President of Sino Gas. “These acquisitions will help accelerate our growth in 2007 and bring us one step closer to our goal of becoming a leading distributor of natural gas in China.”
The transaction was completed December 26, 2006 and will add 4,800 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.bjgas.cn .
About Yuxian Jinli Gas Co., Ltd.
Yuxian Jinli Gas Co., Ltd. is a developer of natural gas distribution systems as well as a distributor of natural gas to residential, commercial and industrial customers in the Yuxian County, in the Hebei Province of China.
About Xiahuayuan Jinli Gas Co., Ltd.,
Xiahuayuan Jinli Gas Co., Ltd. is a developer of natural gas distribution systems as well as a distributor of natural gas to residential, commercial and industrial customers in the Xiahuayuan County, in the Hebei Province of China.
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 December 27, 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.
For more information, please contact:
Ms. Fang Chen,
Chief Financial Officer,
Sino Gas International Holdings, Inc.
Tel: +86-10-8260-0042
Email: 0428gg@vip.163.com
Crocker Coulson, President / Ed Job, Financial Writer
CCG Elite Investor Relations
Tel: +1-646-213-1915/1914 (New York)
Email: crocker.coulson@ccgir.com / ed.job@ccgir.com
