BEIJING, March 19 /Xinhua-PRNewswire-FirstCall/ -- Sinoenergy Corporation (OTC Bulletin Board: SNEN) ("Sinoenergy" or the "Company"), a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment and a designer, developer and operator of CNG filling stations in the People’s Republic of China (PRC), today updated the status of the construction and operations of its retail CNG filling stations. The Company currently has three stations that are open and operating, 16 stations that have completed construction and are waiting for final government approvals, and 32 stations that are in the planning or construction phase that are expected to be operating, subject to government approvals, by the end of calendar 2008.
“Revision of our original schedule for constructing and opening retail CNG filling stations is a result of continuing delays in obtaining final government approvals to open many of the stations for which we have completed construction,” said Mr. Bo Huang, CEO of Sinoenergy. “We are pleased with our progress in constructing new stations. However, recently added government regulations on land used for industrial purposes and a limited number of available government inspectors have delayed the process of obtaining government approvals that are necessary for us to open and operate these stations. Construction of retail CNG filling stations was also recently slowed by the worst snowstorm that China experienced in 50 years.”
“We have gained considerable experience in both filling station construction and dealing with local governments which should reduce the time needed to construct stations and obtain government approvals. We have also strengthened our management team to enable us to more effectively manage the development of retail CNG filling stations in diverse locations.”
“Based on our experience, we believe we now have a realistic timetable for the completion and opening of our new retail CNG filling stations in Wuhan, Xuancheng, and Ping Ding Shan. Our updated estimates of the time both when construction will be completed and when government approval can be reasonably obtained are based on our recent experience. While the construction and opening of retail CNG filling stations has been delayed, the exceptional performance of our first station in Wuhan illustrates the very strong underlying demand that exists for CNG as a clean burning alternative fuel for vehicles,” stated Mr. Huang.
CNG Filling Stations Announced Operation
Number
of Time of
Station standard Location Opening Operating Status
Address stations Announcement
Changfeng 1 Wuhan October Operating at 150% of its
City 2007 designed capacity
Baibu 1 Wuhan October Operations are pending
Ting City 2007 (waiting for government
land use permit) and
estimated to start on
April
Xuancheng Xuancheng Middle of In operation as a model
City 1 City November project promoting vehicle
2007 refits in Xuancheng city
Total 3
CNG Filling Stations that have Completed Construction and are Waiting for Government Operating Permits
Station Address Number of Estimated Opening
Standard Location Time
Stations
Yejin Dadao Station 1 Wuhan City March
Jiangdi Zhonglu Station 2 Wuhan City March
Zoujia Wan Station 3 Wuhan City May
Changqinglu Station 3 Wuhan City May
Shilipu Station Station 4 Wuhan City May
Jianxilu Station 1 Ping Ding Shan April
Xuanhulu Station 2 Xuancheng City May
Total 16
CNG Filling Stations that are Planned or Under Construction
Station Address Number of Estimated Completion
Standard Location
Stations
Zhongbeilu Station 3 Wuhan City August
Zhuyeshan Station 2 Wuhan City August
Gufengjichang Station 3 Wuhan City September
Jinganlu Station 3 Wuhan City October
Jianshilu Station 2 Wuhan City October
Huashi Station 3 Wuhan City October
Youyi Dadao Station 2 Wuhan City December
Wugangchang Qian Station 2 Wuhan City December
Yueliangwan Station 2 Wuhan City December
Gongjiao Tingbaochang
Station 5 Wuhan City December
Dawulu Station 1 Ping Ding Shan April
Xinhua Nanlu Station 1 Ping Ding Shan June
Beihuanlu Station 1 Ping Ding Shan July
Gongjiao Station 2 Ping Ding Shan October
Total 32
The estimated completion dates reflect the dates when the Company believes the retail CNG filling stations will be ready for operations, subject to obtaining government permits necessary for the Company to operate the stations.
About Sinoenergy:
Sinoenergy is a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as an operator of retail CNG 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. The Company’s website is http://www.sinoenergycorporation.com .
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, future changes in the wholesale and retail price for CNG for vehicles in China; changes in policy by the national, provincial and municipal government of the PRC regarding CNG prices, the CNG vehicle industry, the construction and operation of retail CNG filling stations and related issues; the Company’s ability to raise additional capital to finance the Company’s activities; the effectiveness, profitability, and the marketability of its products; 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:
Sinoenergy Corporation
Ms. Laby Wu, CFO
Tel: +86-10-8492-8149
Email: labywu@sinoenergycorporation.com
CCG Elite Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
