omniture

China Integrated Energy Recognized as One of the Top High-Tech Research and Development Enterprises by Shaanxi Provincial Government

2010-11-22 14:49 2476

Company to receive tax exempt status for 2011


XI'AN, China, Nov. 22, 2010 /PRNewswire-Asia-FirstCall/ -- China Integrated Energy, Inc. (Nasdaq: CBEH), a leading non-state-owned integrated energy company in the People's Republic of China ("PRC"), today announced that the Company has been recognized as a top provincial High-Tech Research and Development Enterprise by the Shaanxi Provincial Government. As a result of this recognition, the Company's business in Shaanxi Province will have its corporate income tax exemption extended through the end of year 2011.

In Shaanxi Province, only 33 companies are awarded this prestigious designation, which includes tax benefits and other support to help accelerate research and commercialization initiatives. As a leader in the biodiesel industry in China and the only biodiesel manufacturer in Shaanxi Province to receive this designation, China Integrated Energy earned this award as a result of its continuous biodiesel research and development efforts. The Company has demonstrated a high level of expertise in biodiesel production and a strong platform capable of designing and integrating next-generation biodiesel production processes.

This designation will enable the Company to receive monetary incentives from the government to encourage research and development on biodiesel as one of the renewable energy sources. The support includes but is not limited to establishment of research facilities, enhancement of technical research capabilities, and recruitment and training of researchers. China's National Energy Administration (NEA) has formulated a development plan for the clean energy industry, which includes wind, solar, biodiesel and nuclear energy, to receive direct investments totaling $738 billion from 2011 to 2020 to promote the development of clean energy industries in order to meet the carbon emissions reduction targets set by the PRC government by 2020.

"We are honored to receive this recognition from the Shaanxi province," stated Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy, Inc. "This achievement reinforces our commitment and competitive advantages in the burgeoning biodiesel industry and we are pleased with the progress we have made to date. Our proprietary processing technology provides a critical differentiating factor to the most profitable segment of our business. The next-generation biodiesel technology will enable us to drive down production costs while improving both margins and our return on invested capital."

Additionally, the Company has been awarded three patents from the State Intellectual Property Office of China (SIPO) related to the use of multiple feedstock interchangeably in biodiesel production. China Integrated Energy has submitted eight additional patent applications, which cover several different aspects of biodiesel production techniques and equipment utilized. Six have passed the preliminary examination and the other two have been accepted for review.  For more information visit the Company's website: http://www.chinaintegratedenergy.com/operations/intellectual-property.

In addition to the feedstock used in the Company's existing first-generation facility (i.e. non-edible seeds, waste cooking oil, vegetable oil residue), the new second-generation facility will be able to utilize a diverse supply of raw materials, such as crop straw (including wheat straw, corn straw, cotton straw, weed, etc.), agricultural biomass waste (tree branches, tree leaves), as well as other organic waste. This feedstock flexibility affords China Integrated Energy with better input cost controls. Biodiesel produced using the second-generation technology meets Europe IV fuel standards and can be mixed with both diesel and biodiesel produced using the first-generation technology at any ratio. Furthermore, the new technology is able to recycle bio-residual and water used in the production process, meeting the Company's environmental goals while delivering further cost reductions.

The Company expects to commence testing and ramp-up of its newly constructed 50,000-ton biodiesel production facility in December 2010, which is adjacent to the 100,000-ton plant in Tongchuan City, Shaanxi Province. This Company's advanced second-generation production technology is a critical component of the new facility and is estimated to reduce production costs by approximately 20%.

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 located in Tongchuan City, Shaanxi Province and a 50,000-ton plant in Chongqing City, China. By the end of 2010, the Company expects to increase the total biodiesel production capacity to 200,000 tons by constructing a new 50,000-ton production facility adjacent to the 100,000-ton plant in Tongchuan City. The Company utilizes an extensive distribution network to distribute traditional petroleum products, and operates thirteen 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



Source: China Integrated Energy, Inc.
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