QINGDAO, China, Nov. 6 /Xinhua-PRNewswire-FirstCall/ -- Sinoenergy Corporation (OTC Bulletin Board: SNEN), ("Sinoenergy" or the "Company"), a manufacturer of compressed natural gas (CNG) vehicle equipment and CNG station equipment as well as an operator of CNG stations in China, announced today that Sinogas, a wholly-owned subsidiary of Sinoenergy, has received two significant orders from two natural gas transport companies for 90 natural gas transport trailers. The company also indicated that it can now successfully purchase large seamless steel bottles, a key component to manufacture all transport trailers, from Chinese providers.
"The two orders will greatly enhance our trailer sales volume and our ability to manufacture our own trailer storage cylinders. This will also reduce trailer manufacturing costs, thereby leading to increased profitability, while at the same time adding to our competitive presence in the marketplace," Mr. Bo Huang, CEO of Sinoenergy, said. "In addition, this order will significantly add to both our sales revenue and operating income during the fourth quarter," Mr. Bo Huang said.
The two orders from Wuhan Green Energy Transport Co. Ltd. and Xuancheng Anjie Natural Gas Transport Co. Ltd. on October 15 and November 1, respectively, are considered a significant breakthrough in the production and sale of CNG equipment. Pursuant to the terms of agreements, Sinoenergy will supply 40 gas transportation trailers to Wuhan Green Energy Transport and 50 to Xuancheng Anjie Natural Gas Transport. The agreements call for 45 trailers to be delivered during the fourth quarter of 2007 and the remaining 45 to be delivered during the first quarter of 2008.
With the sales volume of trailers in Sinogas fluctuating between 20 to 25 CNG transport trailers during each of the past five quarters, these recent orders represent a substantial increase in overall demand. Furthermore, with the core material of the CNG trailer now being manufactured domestically, in cooperation with domestic steel and iron companies, Sinoenergy can now realize a 20% reduction in the manufacturing costs.
About Sinoenergy:
Sinoenergy is a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as an operator of CNG filling stations in China. In addition to its CNG related products, the Company also manufactures a wide variety of pressure containers for use in different industries, including the design and manufacture of various types of pressure containers in the petroleum and chemical industries, the metallurgy and electricity generation industries and the food and brewery industries.
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 projected completion of the Sichuan-Shanghai pipeline; 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; the Company’s ability to protect its proprietary information; general economic and business conditions; the volatility of the Company’s operating results and financial condition; the Company’s ability to attract or retain qualified senior management personnel and research and development staff; 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. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. 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.
For more information, please contact:
Ms. Laby Wu, CFO
Sinoenergy Corporation
Tel: +86-10-8492-8149
Email: labywu@sinoenergycorporation.com
Mr. Crocker Coulson, President
CCG Elite Investor Relations Inc.
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
