XI'AN, China, Sept. 13 /PRNewswire-Asia-FirstCall/ -- China Integrated Energy, Inc. (Nasdaq: CBEH), a leading non-state-owned integrated energy company in China, today announced a shareholder update on improvement of corporate governance.
China Integrated Energy completed a reverse merger in October 2007 and since such time has filed U.S. GAAP compliant financial statements with the SEC on a timely basis. The Company's common stock began trading on the Nasdaq Capital Market on June 26, 2009. In May 2009, the Company engaged one of the four largest and most respected auditing and professional services firms in the world to assist the Company to further strengthen its internal controls, as required by Sarbanes-Oxley Act (Sarbox). To date, the Company has completed the phases of (1) Planning & Scoping the Evaluation; (2) Documenting internal control over financial reporting; (3) Evaluating Design & Operating Effectiveness of internal controls over financial reporting; and is now in the last phase of improvement, which involves Identifying & Correcting Deficiencies. The Company expects to complete all phases by the end of the third quarter of 2010.
In light of recent shareholder inquiries, which appear to be the result of recently published articles relating to perceived negative images of promoters of reverse mergers and the integrity of China based companies that became publicly listed in the U.S. through a reverse merger, the Company would like to clarify the following:
1. Ms. Mary Xia is not currently a director, officer, employee of, or consultant to, the Company. From February 14, 2007 through February 13, 2008, Ms. Xia, a principal of Princeton Capital, served as a consultant and assisted the Company in its reverse merger, which was consummated in October 2007. During that time she was not involved in any operational, business or strategic decisions made by China Integrated Energy.
2. China Integrated Energy's Chairman and Chief Executive Officer, Mr. Gao Xincheng, currently owns 21,937,345 shares of common stock in the Company through Redsky Group Ltd., an entity which he solely controls. This represents approximately 64.8% of the total basic shares outstanding.
3. After the October 2007 reverse merger, China Integrated Energy never had any association, formal or informal, with Marty Sumichrast, who was an investor of the shell company, International Imaging Systems, Inc.
Neither Ms. Xia, nor Mr. Sumichrast, ever played any role in the management or operations of the Company. In addition, neither of these individuals have any current relationship with the Company and, to the extent they did previously, in the case of Ms. Xia, such relationship was very limited.
The Company reported strong earnings on August 4, 2010, for the first half of 2010, with sales increasing 73%, net income growing 55% compared to the same period in 2009, and $6.8 million of cash flows from operations. Management has demonstrated a high level of confidence in the Company's long term fundamentals and strong cash position with increases in sales volume from both wholesale distribution of finished oil and heavy oil products segment and retail gas station segment, and a goal of doubling biodiesel production capacity from 100,000 tons to 200,000 tons in 2010 through both internal expansion and an acquisition. The Company reaffirms the newly updated 2010 guidance with revenue of $425 million and net income of $52 million representing an increase of 46.8% and 37.2%, respectively, from 2009.
"We hope that this statement puts any concerns to rest. We consider the reputation and integrity of China Integrated Energy to be of utmost importance to our future success, both from an operational and a public Company perspective. The Company intends to continue to demonstrate tremendous growth opportunities in all three business segments supported by China economic stimulation and favorable alternative energy policies, and provides a measurable investment return to our shareholders," stated Mr. Gao Xincheng, the Company's Chairman and CEO.
About China Integrated Energy, Inc.
China Integrated Energy, Inc. is a leading non-state-owned integrated energy company in China engaged in three business segments: the production and sale of biodiesel, the wholesale distribution of finished oil and heavy oil products, and the operation of retail gas stations. The Company operates a 100,000-ton biodiesel production plant with a goal of doubling capacity to 200,000 tons in 2010 through both internal expansion and an acquisition. The Company utilizes an extensive distribution network to distribute traditional petroleum products, and operates twelve retail gas stations in China. For additional information on the Company please visit http://www.chinaintegratedenergy.com
An online investor kit including a company presentation, press releases, current price quotes, stock charts and other valuable information for investors is available at http://www.chinaintegratedenergy.com . To subscribe to future releases via e-mail alert, visit http://www.chinaintegratedenergy.com/alerts .
Safe Harbor Statement
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. For example, statements about the future use of the proceeds are forward looking and subject to risks. China Integrated Energy, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For more information, please contact:
China Integrated Energy, Inc.
Susan Zhou
Vice President, Investor Relations
Tel: +1-305-393-5536
Email: susan.zhou@cbeh.net.cn
Web: http://www.chinaintegratedenergy.com
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
Web: http://www.hcinternational.net
