XI’AN, China, Aug. 18 /Xinhua-PRNewswire-FirstCall/ -- China Bio Energy Holding Group (OTC Bulletin Board: CBEH), ("China Bio Energy" or the "Company"), an energy company engaged in the distribution of heavy oil and finished oil products and the production and distribution of bio-diesel fuel, today announced that it has added four retail gas stations to its operations. China Bio Energy now operates five retail gas stations. These acquisitions are part of China Bio Energy’s strategy to leverage and strengthen its distribution network by expanding into the retail distribution of fuel.
The stations, previously operated by the Shaanxi Highway Service Company and equipped to sell gasoline and diesel fuel, are all located along major highways in Shaanxi Province. CBEH will operate the stations under long-term leases for which the initial duration is 15 years. The Company expects that annual revenue per station will average at least $8 million and anticipates net margins of 10% or more.
"We are very pleased to have expanded our retail business," stated Gao Xincheng, Chief Executive Officer of China Bio Energy. "We believe that these acquisitions are another excellent example of the value of our distribution network. Demand for fuel is high in China and often outstrips supply. As such, retailers are frequently unable to secure enough supply to sustain operations. Because we regularly distribute large amounts of gasoline and diesel fuel it is relatively easy for us to secure supply. This gives us a considerable advantage versus other retail gas station operators, which is why we decided to enter the retail business. In our bio-diesel business our ability to utilize our existing fuel distribution network to facilitate sales has allowed us to grow rapidly without having to invest significant time and capital into developing a new customer base. Like the bio-diesel market we consider the retail business to be an attractive source of growth for the Company and expect to add to our number of stations in the future. We will continue to look for ways to utilize all of our assets, including our distribution network, as we strive to deliver maximum growth and profitability for our shareholders."
About China Bio Energy Holdings Group
CBEH is a distributor of petroleum related products and a manufacturer and distributor of bio-diesel fuel. CBEH sells a variety of related products including gasoline, diesel fuel, and various kinds of heavy oil. CBEH’s bio-diesel fuel is made at its 100,000-ton capacity facility in Shaanxi province. Feedstock consists of naturally growing non-edible seeds and waste oil from restaurants. CBEH’s bio-diesel can be used as a complete substitute for petro-diesel and can be blended with petro-diesel at any ratio. The Company’s products are sold via its own distribution network, which includes four fuel depots in Shaanxi that have both road and rail access.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 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 ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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