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MetroCoal re-affirms Columboola coal Resource yet to be completed

Wed, 08 Sep 2010 03:12:10 +0800

Emerging coal-focused energy company MetroCoal (ASX: MTE) has clarified that it has not completed any resource estimate or report on its Columboola Project area in Queensland's Surat Basin.

This statement is in response to media reports relating to an announcement attributed to China National Coal Group Corp (China Coal) on the Joint Venture between China Coal and MetroCoal on EPC 1165, Columboola.

Mike O'Brien, MetroCoal's chief executive officer, said “the statements attributed to China Coal on resources and projected production tonnages from the Columboola project originated from media in Asia."

“MetroCoal re-affirms that it has not yet estimated a resource compliant with the JORC Code for Columboola," O'Brien said.

“China Coal did review historic and publicly available drill hole information in relation to the Columboola tenement and they have used this data to make their own coal tonnage estimation."

“While it is well known that there are a number of coal seams within EPC 1165, extensive exploration is required before a JORC compliant resource or reserve can be quoted," O'Brien said.

MetroCoal stated in its 2009 Prospectus that it was pursuing an exploration target for the Columboola Project area of between 830Mt to 1,165 Mt thermal coal suited predominantly for underground mining.

MetroCoal said it is very encouraged with China Coal's positive outlook and is looking forward to progressing the exploration towards feasibility and ultimate development under the joint venture agreement.

Under the terms of the agreement, China Coal will acquire a 51% interest in MetroCoal's EPC 1165 Columboola in the Surat Basin for an agreed expenditure commitment of AUD$30 million.

The funds will be used for exploring and evaluating the potential for future commercialisation options within the Columboola tenement and also opens up the opportunity for participation in MetroCoal‟s other tenements.

The Columboola JVA requires a minimum expenditure of $4 million within the first two years of the agreement.

ZAP`s electric truck and vans qualify for 10% federal tax credit

Wed, 08 Sep 2010 03:07:57 +0800

ZAP Jonway`s (OTCBB: ZAAP) electric truck and van ZAPTRUCK XL and ZAPVAN Shuttle qualify for a 10% federal tax credit, up to a maximum of $2,500, determined the IRS.

The truck and van qualify under the American Recovery and Reinvestment Act, if purchased after February 17, 2009 and before January 1, 2012 under Internal Revenue Code Section 30.

"These tax credits make our ZAP electric trucks and vans even more affordable to operate," said ZAP CEO Steve Schneider.

"Combined with lower fueling and maintenance costs, which can be a third of conventional cars, this can be a great incentive for our customers to integrate electric vehicle technology into their fleets."

ZAP's electric trucks and vans are made for fixed route deliveries, utility and material handling applications.

Recently, ZAP sold a small fleet to the City of Riverside in California. The company has also sold vehicles to the U.S. Government, military, Fortune 500 companies, universities, municipalities and small business owners.

Its fleet vehicles can achieve the equivalent of over 100 miles per gallon, at a cost of about two cents per mile.

Santa Rosa, California-based ZAP has delivered over 117,000 of a broad range of vehicles to more than 75 countries since 1994. It supplies electric trucks and vans, as well as electric motorcycles, scooters and ATVs.

The company`s shares were up 3.5% before noon on Tuesday, trading at $0.45 on the OTC Bulletin Board

China North East Petroleum boosts Q2 sales by 144% on new oil services division

Wed, 08 Sep 2010 03:04:30 +0800

Oil producer and oilfield services company China North East Petroleum Holdings (NYSE Amex: NEP) has reported revenues of $27.7 million for the three months ending June 30, 2010 - an increase of 144% from the prior year period due to an increase in sales generated by its new contract oil drilling entity, Tiancheng.

The company had profits of $25.0 million, or $0.81 per diluted share for the second quarter.

No new oil wells were drilled in the company's oilfields during the period, bringing the total number of producing wells to 289.

As a result, total oil production was 198,776 barrels, an 11% decrease from 223,059 barrels in the prior year second quarter period.

Gross profit, however, increased 128.4% to $16.9 million, or 60.9% of revenue, from $7.4 million, or 65.0% of revenue, in the second quarter of 2009, benefiting from rising oil prices.

"The decline in oil production levels were primarily a result of a natural decline in oil production among existing wells, no new wells drilled in the first half of the year due to severe weather conditions in Northern China, and the company's capital expenditure plan to allocate cash reserves for potential oil field lease/acquisition in the near future," said the company in a statement.

"Despite the decline in volume of oil produced, the company benefited from rising oil prices and recorded revenue of $32.0 million from total production of 426,402 barrels of crude oil in the first half of 2010 compared to oil production revenue of $20.3 million and 445,150 barrels of crude oil produced in the prior year period."

In the first six months of 2010, Tiancheng secured contracts to drill 111 wells for PetroChina and other private oil companies for a total drilling depth of 173,237 meters, resulting in revenue of $24.6 million for the first half of 2010.

The revenue from Tiacheng is expected to finance the future drilling and production of crude oil for the company`s oil production division, it said.

As of June 30, 2010, the company had $46.5 million in cash. Total assets were $139.4 million and total liabilities were $36.4 million.

China North East Petroleum currently operates four oilfields in Northern China. The company also recently added an oil service subsidiary through its acquisition of Song Yuan Tiancheng Drilling Engineering Co. Ltd.

Longwei Petroleum increases 2010 sales by 72%, surpassing previous guidance for the year

Wed, 08 Sep 2010 03:02:20 +0800

Chinese petroleum products company Longwei Petroleum (NYSE Amex: LPH) generated roughly $39 million in revenues for the month of June 2010, the final month of its fiscal year, representing a 130% increase over revenues in the same period last year on account of its new Gujiao storage facility.

Total revenues for the year ending June 30, 2010 were $339.4 million, a 72% increase from fiscal 2009 revenues, and 9% above management`s previous 2010 guidance of $310.8 million.

Gross profit for the twelve-month period was $68.5 million, up 119% from fiscal 2009 gross profit of $31.3 million.

The company expects sales in fiscal 2011 to exceed $500 million.

As China`s economic growth becomes increasingly dependent on meeting the growing demand for oil from both domestic supply and foreign imports, Longwei believes it is in the ideal position to capitalize.

Increasing oil demand is attributable not only to greater vehicle use in China, but also to industrial activity in China's fastest-growing provinces, including Shanxi province, where Longwei operates.

"As one of the largest oil and gas distributors in China, Longwei is a direct beneficiary of the long-term upward trend in oil consumption and vehicle use in China. Last year, China became the largest new automobile market in the world, and a recent International Energy Agency report suggests that China may now also be the top global energy consumer as well," said CFO Michael Toups.

Longwei is an energy company engaged in the storage and distribution of oil and gas in the People's Republic of China. Its oil and gas operations consist of transporting, storing, and selling finished petroleum products. The company's headquarters are located in Taiyuan City, Shanxi Province and it has a storage capacity for its products of 120,000 metric tons located at storage facilities in Taiyuan City and Gujiao, Shanxi.

The company looks to earn profits by selling its products at competitive prices to large-scale gas stations, coal plants, other power-supply customers and small, independent gas stations.

Longwei was up 6.4% to $2.16 just after noon on Tuesday.

Green Dragon Gas reports significant growth as China’s thirst for energy continues

Wed, 01 Sep 2010 20:25:02 +0800

China's thirst for energy resources has continued with an increased focus on domestic supplies of gas, Green Dragon Gas chairman Randeep Grewal said today.

In the company's interim results, Green Dragon told investors that it remains on-track to meet its ‘aggressive targets' in 2010, after it increased gross profit by 44% in the first six months. The Chinese CBM (Coal Bed Methane) gas producer increased revenues by 15% to US$21.5m.

"Green Dragon Gas continued its organic growth in the first half of the year with each of the four divisions making solid progress ... As each division develops we are increasingly seeing the real benefits of a vertically integrated business," Grewal commented.

"Each division continues to work with its partners, such as PetroChina and CNPC Kunlun, and each partnership in one segment is yielding synergies for the other segments."

The improved performance has allowed Green Dragon to cut net losses by 20%, to US$6.2m (H109:US$7.8m), and its net loss per share was 35% better off at US$0.045 (H109:US$0.069).

During the period, the company's balance sheet was boosted by an US$8m farm-out payment from ConocoPhillips (NYSE:COP) and a US$50m convertible bond fund raising. At the 30th June, Green Dragon had total Equity of US$576.2m and current assets of US$92.3m, with US$77.6m in cash.

Two years after its inception, Green Dragon's drilling division has continued to drive production growth. The company drilled 13 new wells in the first six months of the year, with 7 vertical wells and 6 horizontal SIS (surface-to-inseam) wells.

Grewal highlighted that the company's drilling success at the GSS block has now defined the standard operating procedures and typical gas extraction process.

"We expect a continuous drilling program with significantly more rigs drilling in GSS next year to conclude this field's development. We expect GSS development to be completed within five years and continue producing gas for at least 20 years and thereafter."

In the six-month period, Green Dragon increased production from the GSS block to 2.3 million cubic feet per day (MMCFPD). The company said it is on target to reach its 1 billion cubic feet (Bcf) target by the end of the year.

At its Midstream Wholesale division Green Dragon increased gas sales by 4.28% to 1.2Bcf in the first half, while the Downstream division upped sales by 7%, selling 5.17Bcf.

Across all its blocks Green Dragon has 25.5 trillion cubic feet (Tcf) of gas-in-place, with a 2.3Tcf 3P (Proven, Probable and Possible) reserve, with a net present value (PV10) of US$9.3bn.

Additionally, the company highlighted that its joint venture business also performed positively.

"Our joint-ventures in gas distribution also continued their profitable growth ... This growth ought to be further enhanced by favorable pricing policies released by the government recently."

Looking ahead, the chairman believes that any ‘remote possibility' of China reducing its dependency on overseas energy supply must entail a material increase in domestic gas production. According to Grewal, this increase will include a significant amount of CBM production.

Grewal emphasised that Green Dragon remains on track to achieve the aggressive targets, and its foundations largely in place to grow CBM production, he expects to see the company develop real momentum in the years ahead.

Green Dragon also noted that its significant organic growth will be complemented by ‘niche acquisitive opportunities'.

Prosperity Minerals completes acquisition of 25% stake in Liaoning Changqing Cement

Wed, 01 Sep 2010 20:21:46 +0800

China-focused iron ore trading business and real estate investor Prosperity Minerals Holdings (LON:PMHL) has received all the necessary approvals for the acquisition of a 25% interest in Liaoning Changqing Cement and the deal was completed today.

The completion of the acquisition was wrapped up with the payment of the consideration of RMB100 million, or about £9.5 million to the vendor Liaoning Yan Zhou Zhu Xing Cement.

Prosperity’s wholly owned subsidiary Sintex International Holdings entered into a conditional agreement to buy the 25% stake in Liaoning Changqing.

Prosperity previously owned a 75% equity stake in Liaoning Changqing - which was disposed of as part of the company’s £385 million asset sale to TCC International Ltd (TCCI). The company said that since the transaction between Prosperity and TCC, the vendor of the 25% stake decided that it did not wish to be part of a joint venture with an unfamiliar party (TCCI).

Not that long ago, Liaoning Changqing completed the construction of a cement and clinker production line, which has a production capacity of 2 million tonnes per annum.

Subsequently, the production line began trial production in March 2010, and the start of normal production is expected in September.

The company believes that it will have the opportunity to sell the 25% interest in Liaoning Changqing, at a higher valuation following commencement of normal production at the Liaoning plant.

The net asset value of Liaoning Changqing, as shown in the unaudited accounts as at 30 April 2010, was RMB 218.5 million (approximately £22.29 million).

Late last month, Prosperity received the final £16.5 million payment from the disposal of it cement businesses
to TCC International Limited.

Since the disposal, Prosperity Minerals has focused on the development of its Chinese iron ore business, and it has also entered the Chinese real estate sector.

The greater emphasis on iron ore, was reflected in the company’s latest result which showed an 80% year-on-year increase in the total tonnage shipped to 7.9m tonnes (FY09: 4.4m tonnes).

According to Prosperity, the PRC’s long term urbanization plan brings increased demand for high-quality housing in China’s cities.

Funtalk China Increases Q1 Profits By 133% Through Acquisitions

Wed, 01 Sep 2010 01:50:44 +0800

Funtalk China Holdings (“Funtalk”)(Nasdaq: FTLK), a China-based retailer and wholesale distributor of mobile phones and other wireless devices, announced for the first quarter of 2010 the company recorded profits of $9.6 million, or $0.19 per diluted share, on revenues of $253 million. The results represented a year-on-year increase in profits and revenues of 133% and 28%, respectively, driven primarily by growth from the company’s retail segment.

The market reacted mildly to the results as Funtalk’s share price edged slightly upwards by 0.75% to trade at $8.00 on the Nasdaq.

Retail revenue increased 77.5% on a year-on-year basis to $122.7 million due to the acquisitions of new retail subsidiaries. At the end of the first quarter, Funtalk had a total of nine retail subsidiaries covering 528 locations compared to six retail subsidiaries covering 198 locations a year ago. The newly acquired subsidiaries contributed $44.7 million to revenues for the retail segment.

The wholesale segment posted revenues of $130.3 million, a 1.3% increase from the first quarter of 2009. The increase in wholesale revenues was attributable to larger sales volume that was offset by lower average prices.

As of June 30, 2010, FunTalk had net assets of approximately $130 million, or $2.5 per outstanding share.

The company also announced that it is now the only wholesale distributor and retailer chosen as a national partner by all three of the mobile carriers in China and the company stands to benefit if Chinese carriers increase subsidies to channels and end-users as expected.

For fiscal 2011, Funtalk expects to earn net income in the range of $40 million to $45 million on revenues between $1.0 billion and $1.2 billion.

Funtalk is a retailer and distributor of wireless communications devices, accessories and content in 30 provinces in China. Funtalk currently has a network 612 mobile phone retail stores in approximately 108 cities.

Cash flows commence in China and Nigeria for Camac Energy

Wed, 01 Sep 2010 00:15:00 +0800

After recently restructuring, junior oil and gas producer Camac Energy (“CAK”)(NYSE:CAK) is looking like a very solid emerging company. The company recently reported its first operating revenues from the Oyo Oilfield, offshore Nigeria and from the commercialization of its Enhanced Oil Recovery and Production (EORP) technology in China. At the same time, Camac benefits from a strong balance sheet, with assets of US$419.5 million, no debt and cash and cash equivalents of US$22 million.

The Oyo Oilfield is currently the major producing asset owned by CAK and was purchased from Camac Energy Holdings Ltd. for a 62.74% interest in the company. This was made up of 89.5 million shares in CAK, plus two cash payments for a total of $38.84 million. Oyo is located 75 miles offshore from Nigeria in 200-500 meter deep water. The Oilfield has two wells that currently produce from 12,000 to 20,000 barrels of oil per day, and gas of 15 MMCF per day and is operated by ENI/Agip, a major worldwide energy company. Oyo uses a floating production storage and offloading vessel rated at 40,000 barrels per day, with storage capacity of 1 million barrels connected to subsea wellheads. The 10 year development plan for the field envisions the drilling of 2 additional production wells.

CAK has also executed an agreement to purchase the full interest in OML 120 and OML 121 that surround the Oyo Oilfield and cover a total of 1,803 kms², lie east of the 500 million barrel Erha Field, and have water depths of 150 to 1,000 meters. The vendors of these two lease blocks drilled a shallow well away from the Oyo Oilfield that contained oil in the Upper Miocene interval, and are evaluating the drilling of a deeper well into the Middle Miocene interval, which should be a more productive target. A well was also drilled in OML 121 in 2008, containing 90 feet of net gas pay in two sets of reservoirs. They also completed over 120 kilometers of 3D seismic, identifying 8 new prospects around Oyo that may contain up to 500 million barrels of gross un-risked oil resources and upside gas potential. An independent third party evaluation has commenced. Other prospects and leads are also under review.

CAK has made a major commitment to growing a number of energy assets based in China, with a team that has a lot of experience and contacts within the local energy sector and government. These projects are mostly in the development stage and will require substantial funding commitments. China has had an average GDP growth rate of 9% for ten years and is the world’s second largest oil importer. It has a ravenous appetite for both oil and coal is looking to diversify to cleaner energy sources. CAK is focusing on production of local heavy oil as a substitute for imported oil and CDM gas as a cleaner substitute for coal.

Chinese oilfields have 20 billion barrels of high viscosity and low pour point oil that remain in the ground, and identified 20,000 wells suitable for retreatment and further oil recovery. CAK has set up an entity to develop energy sources utilizing their patented Enhanced Oil Recovery and Production “EORP” technology. EORP has been successfully tested on hundreds of wells, where it reduces the viscosity and pour point of oil, allowing it to flow from a well and increasing production by 50-100%. Focus will be on proven fields with underperforming wells where operations with some cash flow have already commenced in Liaoning and Shandong provinces. CAK plans to conduct operations on several hundred wells over the next few years that will see operations expand across the country. The company is also developing technology and applications to extract oil from wells suffering with water issues.

The Shaogen Project is located at Chifeng City, Inner Mongolia, in a cooperation and joint development contract with Chifeng Zhongtang to acquire 95% share of crude oil production revenues. The project covers an area of 136 square miles.

CAK controls 175,000 acres in the Zijinshan Gas Block located in the Shanxi Province, which hosts the 2nd largest oil and gas basin in China. The property is a prime coal bed methane development project, where China United Coal Bed Methane Company estimates a potential gas resource in excess of 3.8 TCF. Current resources are at 504 BCF in coal beds and 701 BCF in tight sands. The company has the approval of the Chinese Ministry of Commerce for a production sharing contract with Petro China BCM and plans to drill two wells in the current quarter. The Zijinshan leases are located in the eastern section of the Ordos Basin gas fields, and are close to major pipelines running to Beijing and other regional centers.

CAK has signed a Letter of Intent to acquire 45% of Handan Changyuan Gas Company Ltd, and will put the company into downstream sale and distribution of gas. The business buys gas from Sinopec and Petro China and supplies it to 300,000 customers in Handan, which is a fast growing city of 1.4 million people. Other opportunities in both Africa and China continue to be evaluated.

These string of transactions and milestones put Camac Energy in a interesting position. The company has cash flow from off-shore Nigeria, but with ENI as operator, can sharpen its focus on the surrounding prospective area, while also developing an integrated energy company in China.

It is still early days for Camac, but the initial signs are encouraging.

China Gerui Advanced Materials grows second quarter profits by 6%

Wed, 01 Sep 2010 00:11:39 +0800

China Gerui Advanced Materials Group (Nasdaq: CHOP), a steel processing company that produces specialty steel products in China, has reported revenues of $64 million for the second quarter of 2010, a 15.5% increase from the same period last year, while profits grew 5.8% to $12.1 million, or $0.26 per diluted share, driven by increased sales volume.

"During the quarter, we fulfilled large orders for some of our lower margin products. This enabled us to post a double-digit increase in sales as well as higher net income, but also resulted in a decrease in our margins," said chairman and CEO Mr. Mingwang Lu.

"We continue to see strong demand for our products and as our new production lines focused on higher priced, higher margin products commence production later this year, we expect to achieve sustained increases in sales, margins, and earnings performance."

By December next year, the company plans to double its existing production capacity to 500,000 tons per annum, and increase its chromium plating capability to 250,000 tons per annum, covering 50% of its total annual steel production capacity.

Phase I of the expansion plan, for which total capital expenditures is expected to be $42 million, involves the construction of two new cold-rolled, wide-strip steel production lines with 150,000 tons of total annual capacity and a chromium plating line capable of processing 200,000 tons of cold-rolled steel per annum. The two new cold-rolled lines are expected to be completed by October 2010, while the chromium plating line is anticipated to begin production by mid-October this year. Approximately 65% of $42 million has been spent to date.

For phase II of the project, which is expected to cost around $12 million, the company intends to construct a third cold-rolled wide strip steel production line with 100,000 tons of capacity by the end of the third quarter of 2011.

The new facility will allow the company to produce both narrow and wide strip cold-rolled steel for a wider range of applications, it said.

The company`s business outlook remains strong, as the sale of its products is driven by domestic purchasing power in China, which continues to rise, as well as by the import replacement trend in the industry, said Lu.

As of June 30, 2010, the company had $109.9 million in cash and an additional $75.2 million in restricted cash. Working capital was $66.0 million versus $49.3 million at the end of 2009. China Gerui has no long-term debt.

Investors were not impressed by the results, as its share price has gone down 1.73% to $5.12 on the Nasdaq this morning.

China Gerui Advanced Materials produces high-end, high-precision, ultra-thin, high- strength, cold-rolled steel products. Products are tailored to customers' requirements and subsequently incorporated into products manufactured for various applications. The company sells its products to domestic Chinese customers in a diverse range of industries, including the food packaging, telecommunication, electrical appliance, and construction materials industries.

China Pharmaceuticals second quarter net income jumps 208%

Tue, 31 Aug 2010 01:52:10 +0800

Second quarter net income and revenues beat management expectations at over-the-counter pharmaceuticals company China Pharmaceuticals (OTC:CFMI) this morning. The US listed, China focused company reported that second quarter (3 months to 30 June) more than doubled over the same period last year to $10.45 million, while gross profit climbed 89% to $6.08 million and net income surged 208% to $5.37 million. Diluted earnings per share (EPS) hit 19 cents.

“...we continue to be extremely pleased with the company's performance to date and its growth prospects for the future," stated Guozhu Wang, Chairman and CEO of China Pharmaceuticals, "We are focused on continuing to expand our portfolio of high margin products and aggressively expanding our sales and marketing network that will allow us to continue to build sustainable growth in revenues and profits."

The strong second quarter numbers lifted first half revenues 79% higher to $17.5 million, from $9.78 million in the first half of 2009, while gross profits climbed 72% to $10.3 million and net income jumped 69% to $6 million.

As of June 30, 2010, the Company had $6.7 million in cash and total assets of $40 million.

Looking ahead to the rest of 2010, the fast growing over-the counter drug company said it was extremely optimistic about its future prospects and is continuing to weight up both organic and acquisitive growth opportunities.

China Pharmaceuticals its headquartered in Xi'an, Shaanxi Province, China. The company currently markets and distributes 111 prescription drugs representing 84% of sales distributed via 31 sales offices to a network of hospitals and clinics nation-wide..

Sino Green Land second quarter net sales climb 37% as new initiatives take hold

Tue, 31 Aug 2010 01:48:11 +0800

Fruits and vegetable distributer Sino Green Land Corporation (OTCBB:SGLAE) reported better second quarter results as the company started to benefit from recent initiatives designed to improve its security of supply from farmers.

The New York listed, China focused group reported a 36.7% gain in second quarter sales of US$29.8 million, while gross profits climbed 28.5% to US$2.8 million. The increase in sales was due to higher volumes and higher prices.

Adjusted net income came in at US$2.2 million, or 1 cent per diluted shares, and the company ended the quarter with US$4.1 million in cash and no long-term debt, partially thanks to a US$3.4 million private placement that was completed during the quarter.

" We attribute this [second quarter] success to a number of initiatives. Most importantly, we leased additional land and acquired first priority purchase rights from new farming cooperatives earlier this year. These land leases allow us to lock in a guaranteed supply of produce from farmers across China and, in return, provide them a stable outlet for their produce,” Anson Fong, Chairman of Sino Green Land, commented.

Sino Green Land distributes various produce including Fuji apples, emperor bananas and tangerine oranges.

Looking ahead, Fong added that the construction of a new green food hub, the first to be built in China, will further boost the company’s quality control and allow the company to grow at ‘double digit rates for the foreseeable future’

China Gold International acquires polymetallic mine in Tibet from largest shareholder

Tue, 31 Aug 2010 01:44:51 +0800

China Gold International Resources (TSX:CGG) has entered into an agreement to acquire the Jiama copper polymetallic property for approximately US$42.3 million. The property is currently held by CGG's largest shareholder China National Gold Group, and Rapid Result Investments.

CGG will pay for the transaction through the issuance of 170.25 million shares at a deemed price of C$4.36 per share. Shares in the company fell 6.5% to 4.60 per share on the size of the discount of the deemed price compared to the current share price.

The Jiama property is located in Tibet, and hosts a copper-polymetallic deposit being developed as an open pit and underground mine. The development will include two pits plus an underground mine that will accessed from two shafts that will support a 12,000 tonnes per day operation for approximately three decades.

Production will consist of copper concentrate, molybdenum concentrate and lead concentrate. Gold and silver will be separated and smelted in downstream processing.

The mine is expected to produce revenues of US$200-300 million per annum once at full production, and average annualised after tax cash flow of $100 million per year.

BD Asia calculated the after tax net present value of the discounted cash flow at US$777 million.
China Gold International Resources principal property is the CSH Gold Mine.

China National Gold Group Corporation, a Chinese state-owned enterprise owns approximately 39% of China Gold International Resources.

Specialist Energy Group announces new contract in China.

Fri, 27 Aug 2010 21:52:50 +0800

Specialist Energy Group (LON:SEGR) today announced a new contract in China for its wholly owned subsidiary, Hayward Tyler Group. The niche engineering and manufacturing group said that the order was for the delivery of two new 520kW glandless motor pumps for a conventional power station in Shentou, Shanxi Province, China.

The Hayward Tyler pumps will be used in two 600MW Advanced Supercritical Once-Through boilers which achieve a significant reduction in CO2 emissions compared to traditional coal powered stations, said the company.

The company now has over 500 installed pumps in China and the Far East which are serviced via its local service facility in Kunshan, near Shanghai.

Meanwhile, Specialist Energy also told investors that it had successfully completed a £2.5m contract in the USA - announced on 8 July 2010.

This was for the delivery of synthetic gasification cooler pumps for use in one of the largest Syngas projects in the world.

The contract was a first in the area of synthetic gasification for Hayward Tyler and signifies an important step for Hayward Tyler as it looks to position itself at the forefront of upgrading clean coal power plants through the use of its technology within Integrated Gasification Combined Cycle Power Plants ("IGCC").

Using the IGCC technology, coal is converted into synthetic gas, which is then processed to remove sulphur, mercury, ash and carbon dioxide.

The gas then goes to a traditional combined cycle power plant using a combustion and steam turbine to efficiently produce electricity.

SEG chief executive Ewan Lloyd-Baker said: "As an export-led business heavily focused on the energy sector, it is critical that our technology is at the forefront of the clean energy drive - whether it be improving the efficiency of traditional coal based energy production or being a part of new initiatives.

"We are delighted that our activities in the US and the Far East reflect both of these aspects."

Prophecy Resources` mine preparation for Ulaan Ovoo project on track

Fri, 27 Aug 2010 21:50:00 +0800

Prophecy Resource`s (TSX VENTURE: PCY) (OTCQX: PRPCF) mine services agreeement with Leighton Asia Limited is on track to execute mining operations at Prophecy`s Ulaan Ovoo Coal Project in northern Mangolia, as Leighton has established the required infrastructure and deployed all necessary equipment and manpower on schedule.

Ulaan Ovoo site establishment began on July 13 of this year to ensure that the commissioning of the 250,000 tonnes starter pit will take place as planned in September 2010, with 57,500 tonnes in the first month ramping up to 100,000 tonnes per month by December 2010.

To date, Leighton has removed and stockpiled approximately 30,696 BCM of topsoil and 209,095 BCM of overburden, which is approximately some 28,089 BCM of overburden ahead of schedule in preparation for mining.

Operational equipment deployed by Leighton includes three 773C Cat dump trucks; one 385D Cat excavator; one D8R Cat dozer; one 160H Cat grader; one 928G Cat loader; two 10,000lt water tankers; one 3,000lt fuel truck; two CD150 dewatering pumps; three Allmand portable lighting plants; and four diesel generators of varying capacity.

The design of the concrete bridges that will replace all existing wooden bridges along the haul road has been completed, and the foundation slabs are currently being poured, the company said.

Russian and Mongolian governments have also agreed to open the Zeltura border crossing on a permanent basis, which could present a significant reduction on the transportation cost, as Zeltura port is 15km by road from Ulaan Ovoo mine site.

The company is working with Wardrop to clarify taxation, royalty, and off take pricing; the release of Wardrop's final report is expected in September of this year. Prophecy is also currently in discussions with parties who have expressed interest to procure coal directly at the mine site.

Leighton Asia engages in mine development, operation and management, resource optimisation, mine planning and more.

Prophecy Resource is engaged in developing energy, nickel and platinum group metals projects. The company controls over 1.4 billion tons of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated).

Prophecy has 100% interest in the 208.8 million tonne Ulaan Ovoo project that features Bituminous (5,204 kcal/kg), low ash (12.46%), low sulphur (0.40%) thermal coal suitable for export markets. The deposit features single massive coal seam 45-80 m thick with an average strip ratio of 2:1. The project is 120km (75 miles) east of the Central Mongolian Railroad linking the project to the vast coal markets of Russia and Asia.

In Canada, the company owns Lynn Lake Nickel Project, a 10% equity stake in Victory Nickel and agreed to merge with Northern Platinum (TSX-V: NTH) on June 15, 2010.

Prophecy`s stock was up 2.1% on the news to $0.48 on the TSX Venture Exchange today as of 1pm ET.

Icon Energy grants China LNG sales agreement extension

Fri, 27 Aug 2010 21:42:04 +0800

Queensland based oil and gas company Icon Energy (ASX: ICN) has agreed to extend the time for the signing of the China LNG Gas Sales Agreement (GSA) to 31 December, 2010, as requested by Shenzhen SinoGas.

Icon said that it was appropriate for the company to agree to the request to enable Shenzhen SinoGas to obtain all necessary approvals for the GSA.

Ray James, Icon's managing director, said “this was a specific request made by Shenzhen SinoGas, who also stated that they believed the additional four months would allow adequate time for the companies to complete their negotiations and execute the GSA.”

Icon announced in April that it had entered into an MOU with a subsidiary of Chinese firm, Shenzhen SinoGas, for a 20 year gas sales contract.

“This remains an exciting growth project for the company. While Shenzhen SinoGas proceeds with its approval processes in China, Icon Energy will continue with its focus on securing the necessary reserves to meet its commitments under the GSA."

“This is a pleasing further confirmation of Shenzhen SinoGas’ commitment to completing the Gas Sales Agreement,” James said.

West China Cement`s Hong Kong IPO values company at US$895 million

Sat, 21 Aug 2010 20:35:02 +0800

Cement manufacturer West China Cement (LON:WCC) has announced offer price and the results of the allocations for the Hong public offer. The offer price has been set at HK$1.69 per share, implying a market capitalisation of HK$6,955 million, or US$895 million.

Based on this price, the total net proceeds received by the company from the global offer will amount to HK$1,280 million or US$164 million.

About 44% of the proceeds will be used to fund capacity expansion, including HK323 million equalling US$41.5 million to install residual heat recovery systems, half of which is expected to be incurred in 2010 and the remaining half in 2011. Another HK$239 million, or US$31 million, will be used for future acquisitions, including the acquisition of Jianghua Cement.

West China will repay its loans and related interests with 46% of the proceeds, which will include covering the ICBCI facility of US$50 million and US$25 million of the ICBC facility promptly after listing.

The balance of 10% will be used for working capital purposes.

Due to what the company said was very significant oversubscription in the Hong Kong offer, more than 329 million shares were reallocated from the international placing to the Hong Kong public offer, taking the number of shares available under the Hong Kong offer to 411.5 million representing 50% of the total number of the shares initially available under the global offering.

“We are delighted by the investor support and interest we have had during the Global Offering. Today's announcement represents the start of a new and exciting stage in the Company's development. Our leading position in the Shaanxi market, along with our strong financial track record gives us confidence for the future. We look forward to keeping our both new and existing shareholders updated on our progress in implementing our growth strategy,” said Chairman of West China Cement Zhang Jimin.

Immediately following the completion of the global offering, approximately 49.12% of the total share capital will be held by the public.

There has been an over-allocation of 123 million Shares in the international placing. Over allotment option has not yet been exercised.

The company will to delist from AIM on 23 August, when it will start trading in Hong Kong.

Prosperity Minerals receives final payment from disposal of cement business

Sat, 21 Aug 2010 20:31:41 +0800

Prosperity Minerals (LON:PMHL) has received the final £16.5m (HK$200m) payment from the disposal of it cement businesses to TCC International Limited. Earlier this year, the company sold most of its cement related assets to TCC in a deal worth approximately £313.5m (HK$3.8bn).

Today, the company also received an increase in the Shareholder Loan Balance of US$49.6m (£31.7m) from the disposal.

Since the disposal, Prosperity Minerals has focussed on the development of its Chinese iron ore business, and it has also entered the Chinese real estate sector.

The greater emphasis on iron ore, was reflected in the company’s latest result which showed an 80% year-on-year increase in the total tonnage shipped to 7.9m tonnes (FY09: 4.4m tonnes).

Prosperity Minerals recently agreed a significant new iron ore master off-take agreement with Grace Wise Pte Ltd, to purchase ore from Malaysia. The three-year off-take deal sees maximum trading volumes capped at 1.5m metric tonnes in FY11, 2.5m metric tonnes in FY12 and 4m metric tonnes in FY13.

With its first steps into the Chinese real estate development sector, Prosperity entered into agreements for two separate property investments - in the Fujian Province in south-east China and in Guangzhou City - in June.

According to Prosperity, the PRC’s long term urbanization plan brings increased demand for high-quality housing in China’s cities. Furthermore, the PRC real estate market has recently entered a down-cycle, offering an opportune time to enter the PRC real estate market.

Additionally, the company has also returned value to shareholder via on-market share buy-backs.

CNOOC production rises 40% in first half, net profits jumps 109%

Fri, 20 Aug 2010 19:16:35 +0800

China oil and gas heavyweight CNOOC (NYSE:CEO, HK:00883) reported a near 41% increase in first half production to 149 million barrels of oil equivalent, while net profit surged approximately 110% to RMB 26 billion (approximately US$3.827 billion).

Earnings per share came in at RMB 0.58 and CNOOC confirmed that it would pay an interim dividend of HK$0.21 per share.

"The production growth of the first half of 2010 was mainly driven by new projects brought on stream in 2009 and first half of this year and the outstanding performance of major producing fields. Up to now, 6 new projects have been announced to come on stream, 4 of which in the first half year," stated CNOOC.

CNOOC also benefited from higher oil prices, with the average realized price for its product increasing 55% year-on-year to US$76.59 per barrel. Operating cost per barrel of oil fell 15% to US$6.08, while all in costs were US$23.85 per barrel.

During the first half of 2010, CNOOC chalked up nine new discoveries and completed seven appraisals. The most significant exploration discovery was the Penglai Field, offshore China.

"In the first half of 2010, we have harvested extraordinary results. New projects were brought on stream as planned and record production growth was achieved, laying a solid base for realizing the full year production target.

In addition, we have successfully completed several M&A projects which will further fuel the development of the Company," Yang Hua, President of CNOOC said.

Yingli Green Energy to second quarter profit

Fri, 20 Aug 2010 19:12:52 +0800

Solar energy company Yingli Green Energy (NYSE: YGE) has announced its second quarter results, posting net revenues of USD $398.1 million, an 80.1% year-over-year increase, and profits of $32.1 million, compared to a net loss of approximately $579.5 million in the second quarter of 2009. The company has benefited from a mid teen growth rate in its PV module shipment volume quarter over quarter, it said.

The company`s gross profit was $133.5 million, up 205.4% from last year, representing a record high gross margin of 33.5%, compared to 19.8% in the second quarter of 2009, due largely to the better than expected average selling price and continuous decline in the blended cost of polysilicon, decreasing polysilicon usage per watt and continuous reduction in non-polysilicon cost.

Yingli saw many developments during the quarter. The company completed its 2010 FIFA World Cup sponsorship project, which boosted its brand both within and outside the conventional solar community and lead to increasing demand, said Yingli.

The company also commenced initial production of 300 MW PANDA high efficiency solar cells in July. It managed to enhance the PANDA cell conversion efficiency rate to 19% on the pilot line, and has kicked off collaboration with Innovalight to boost the average efficiency of its multicrystalline silicon based solar cells.

In addition, Fine Silicone, the company`s polysilicon manufacturing facility designed with an annual production capacity of 3,000 metric tons, began commercial operations earlier this month.

"In Europe, we are fully stretched to satisfy our existing customer base and to continue to attract new customers in high growth emerging markets such as France, Italy, Czech Republic, Greece and the United Kingdom. In North America, our sales network has expanded into 18 states in the U.S., as well as Canada and the Caribbean, and we have become the leading supplier of PV modules in New Jersey and California," said chairman and CEO Mr. Liansheng Miao.

Indeed, the company has reaffirmed its PV module shipment target to be in the estimated range of 950 MW to 1 GW for fiscal year 2010, which represents an increase of 80.8% to 90.4% compared to fiscal year 2009. Based on the strong gross margin performance in the first half of 2010 and other factors, the solar company has actually raised its gross margin target to the estimated range of 28% to 30% from the previous estimated range of 27% to 29% for fiscal year 2010.

Yingli is not the only solar company that is encouraged by its results, as yesterday major solar player Suntech decided to increase its target PV cell production capacity to achieve 1.8GW by the end of this year. It also raised its 2010 annual shipment target from 1.3GW to 1.5GW. The US government`s recent $2 billion commitment to the sector has also helped the solar market overall.

The company`s diluted earnings per ordinary share and per ADS was $0.21 for Q2 2010 versus a diluted loss of 0.45 in Q2 2009. As of June 30, 2010, Yingli had $601.5 million in cash, restricted cash and long-term restricted cash and working capital $89.9 million.

Yingli`s stock was down 2.8% to $10.93 by noon trading today in the midst of a wider market sell-off.

Concord Medical posts 38% Q2 revenue growth on addition of new centres

Thu, 19 Aug 2010 22:38:12 +0800

Concord Medical Services Holdings Limited (NYSE: CCM), the operator of the largest network of radiotherapy and diagnostic imaging centers in China, has announced its second quarter results, recording a 38.3% increase in revenues to $14.7 million from the corresponding period in 2009, largely due to a rise in the number of patients on account of the company`s recent expansion. Adjusted net income was up 5.8% to $5.1 million, while adjusted earnings on both a basic and diluted basis, were $0.10 per American Depositary Share (ADS).

The company added eleven centres during the quarter, bringing the total number of centers in operation to 100 across 39 cities in China, as of June 30, 2010. Concord Medical has also entered into agreements to establish 31 new centres.

Unsurprisingly, the number of treatment patient cases and diagnostic patient cases was 8,548 and 35,786 during the second quarter of 2010, an increase of 26.6% and 47.6%, respectively.

"We saw another quarter of solid growth driven by healthy revenue increases in both existing and newly added centers," said Dr. Jianyu Yang, director, president and chief executive officer of Concord Medical.

"With a healthy acquisition pipeline and existing contracts for the opening of new centers, we remain confident to meet our target of adding 34 to 39 centers in 2010."

The company continues to build its brand through marketing and academic activities, it said, having recently hosted the largest cancer treatment and diagnosis forum in its history in June, attracting more than 350 professionals.

In July, the company also entered into a joint venture agreement with Chang`An Hospital for the preliminary operation of the hospital`s cancer treatment facilities in preparation for the future Chang`An CMS International Cancer Center.

The diagnostic imaging centre operator has re-affirmed that its estimated range of total net revenues for 2010 is RMB367 million to RMB398 million, which would represent a 25.5% to 36.1% increase from 2009. It has also said that it expects to add 34 to 39 radiotherapy and diagnostic imaging centres in 2010.

As of June 30, 2010, the company had total fixed assets with a net book value of $99.9 million and cash of $127.3 million. It also has credit line totalling $297.9 million.

The company`s share price has gone up nearly 2.5% since the news to $6.21.

Apparel Designer VLOV Posts 27% Sales Growth For the Second Quarter

Thu, 19 Aug 2010 22:33:54 +0800

VLOV Inc. (OTC: VLOV), a China-based designer of men`s apparel, announced it recorded adjusted profits, which excludes a non-cash gain associated with warrants, of US$2.3 million on sales of US$17.9 million.

Adjusted profits remained unchanged from the same period in the prior year, while sales increased 27%.

Diluted adjusted profits per share was US$0.13 for the period, down 8% from the second quarter of 2009. GAAP net income increased 93% to US$4.4 million from US$2.3 million for the second quarter of 2009.

Increased marketing efforts in Liaoning and Shandong, China was primarily responsible for the company’s sales growth for the quarter. New sales from Sichuan, China resulting from expansion of its distribution channel also contributed to sales growth.

"We are executing on our strategy to upscale our brand image amongst our target demographic by working with our distributors to move towards operating stand alone stores and store-in-stores and away from counters and concessions which lessen the value of our brand. Our distributors are presently operating 519 points of sale and plan to open between 30 and 40 high

-end stand alone store locations by the end of 2010,”said Qingqing Wu, the CEO of VLOV.

VLOV`s net current assets totalled $26.4 million, or $1.57 per share, at the end of the second quarter. As of August 13, 2010, the company had a cash balance of $9.5 million.

VLOV designs and markets its own brand apparel targeted at middle-class Chinese men. VLOV products are sold through 519 points of sale across northern, central and southern China.

Sancon Resources Recovery revenues rise 12%

Thu, 19 Aug 2010 22:25:00 +0800

Waste material recycling specialist Sancon Resources Recovery (OTC:SRRY) reported an improvement in second quarter revenues and gross profit as it maintained strong gross margins and addition of a paper and cardboards business in June.

The US listed, Australia and China focused business chalked up a 12% increase in second quarter revenues to US$3.07 million, while gross profits climbed 5% to US$1.49 million and EBITDA (earnings before interest, tax, depreciation and amortization) climbed 2% to US$0.6 million. Net income came in at US$0.537 million, or 2 cents per share, similar to the second quarter in 2009.

Gross margins were maintained at a very healthy 50%.

Geographically, Sancon reported an 8% increase in revenues from its operations in China to $2.38 million and a 28% increase in revenues in Australia to $0.638 million.

“The increase in revenue in China operation is partially because of acquisition of the newly started waste paper and cardboards collection business in June 2010,” Sancon noted to investors. “Although exports are still suffering from the global economic crisis, our Australia operation business is gradually recovering.”

For the first six months of 2010, Sancon reported total revenues of US$6.14 million, a 15% increase on the corresponding period in 2009, while net income was US$1.1 million, or 5 cents basic and diluted earnings per share.

As the end of June, Sancon had cash and cash equivalents of US$4.8 million, up from $3.7 million six months earlier.

Jack Chen, CEO of Sancon said that the company was continuing to seek acquisition opportunities to further consolidate its position in the waste recycling sector. Sancon specializes in the collection, processing, and selling of the reprocessed waste material (plastic, metal, paper, cardboard, glass) which are then used to make new products including building materials, outdoor furniture and packaging materials.

Keyuan Petrochemicals reports rise in revenues, but drop in profits

Wed, 18 Aug 2010 20:45:58 +0800

Having recently commenced production in October 2009, Keyuan Petrochemicals Inc. (OTC Bulletin Board: KYNP), a manufacturer and supplier of various petrochemical products in China, has released its results for its second revenue-making quarter today, recording revenue of $132 million for Q2 2010, based on the sale of 155,955 metric tons (MT) of petrochemical products, up 12% versus the first quarter of this year.

Though due to lower market pricing, the company decided to hold 24,000 MT of product in inventory, which it anticipates selling in the third quarter at a higher price, it said. It also held over 27,400 tons of production as a result of a 15-day production shutdown due to a power grid upgrade by a local utility agency. Total production was 169,386 MT in the second quarter. Net income for the period was $4.9 million, compared to $5.7 million in the previous quarter.

The company saw a decrease in gross margins for the second quarter at 6.6% compared to 7.5% in Q1, due to lower market prices caused by the European debt crisis, production start up carry over expenses, and a temporary mandated plant shutdown. Gross margin is, however, expected to improve in H2 of this year due to improved production yields and favorable product mix. The company expects it to average 10% for the full year of 2010.

"Our performance during the second quarter of 2010 reflects continued strong demand for our products," said founder, chairman and CEO Chunfeng Tao.

The company intends to double its storage capacity from 100,000 tons to 200,000 tons by the end of 2011, as well as build a raw material pre-treatment facility and an asphalt production facility in order to meet growing customer demand in 2012, it said. Keyuan hopes to fund the expansion with cash on hand, bank loans, cash flows generated by its business and potential equity financing.

The new facilities are expected to reduce raw material costs, improve production yield and maximize profits from all stages of production, as well as increase cash flows and profits.

For the first six months of 2010, the company generated $14.4 million in cash flow from operations. For the full year of 2010, Keyuan expects to record revenue of approximately $550 million, with net income of $36.3 million assuming average annual sales volume of 660,000 MT of petrochemical products.

Keyuan Petrochemicals was established in 2007 and operates through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd. Located in Ningbo, China, Keyuan's operations include a designed annual petrochemical manufacturing capacity of 550,000 MT of a variety of petrochemical products, with facilities for the storage and loading of raw materials and finished goods, and a technology that supports the manufacturing process with low raw material costs and high utilization and yields.

Despite a recent slowdown in economic activity, excess demand for refined petrochemical products persists in China. As a result, China imported 3.1 million tons of petrochemical products per month in 2009. As more companies build more factories and open new offices in China as the Chinese economy expands, the demand for petrochemical products will grow.

Investors were not encouraged by the company`s results, however, as its share price fell 9.3% today to $4.80 since the release.

Heli Electronics shares jump 26% on 226% growth in revenue and profits

Wed, 18 Aug 2010 20:43:20 +0800

Heli Electronics Corp. (OTCBB:HELI), a marketing, distribution and after-sales service company for audio-visual (AV) products in China, has today released its second quarter 2010 financial results, reporting revenue of $24.9 million - a whopping 226% increase over its Q2 2009 revenue due to increased business in the AV industry.

The company has seen its share price soar since the release of its news by more than 25% to $0.083. Its net income also saw a significant increase of 226% to approximately $2.0 million compared to the same period last year.

"It is clear from Heli's second quarter 2010 financial results how far the company has come in such a short period of time. In just two years, our company has grown to become one of the premier marketing and distribution agencies in China, as well as the primary sales, marketing, and logistics agency of China's top brand name in electronics and certainly AV products, Haier Electronics," said president and CEO of Heli Mr. Xin Qiu, in a statement.

The company continues to look for new partnerships and venture into other areas of electronics, it said. It also anticipates its business with Haier Electronics to grow significantly, well into 2011.

Heli's assets increased from the end of 2009, with total assets of $17.3 million as at June 30, 2010, an increase of 253.4% over the last six months.

Heli Electronics is based in Guangzhou, China and was founded in March 2008. It is the primary marketing, promotion, logistics, and after-sales service agency of audio and visual products for Haier Group.

The company seeks to establish a broad network in China to provide after-sales service, brand establishment, brand promotion, distribution, and logistics management of a wide array of electronics and electrical appliances.

China TMK Battery Systems sees 29% second quarter profit growth

Wed, 18 Aug 2010 20:40:06 +0800

China TMK Battery Systems Inc. (OTC Bulletin Board: DFEL), a Chinese manufacturer and distributor of customized rechargeable battery solutions to the global consumer products industry, has announced its 2010 second quarter results, recording an increase in revenue of 47.3% at $16.8 million and a gain in net income of 28.9% at $2.3 million on account of rising demand for the company`s products and its expanded sales and marketing efforts, it said.

Total cost of sales increased $4.8 million, or 56%, to $13.4 million for Q2 2010. The company`s gross profit rose 21.2% to $3.4 million in the period compared to $2.8 million in the second quarter of 2009, with gross margin of 20.2% and 24.5% in each respective period.

"We continued our strong growth in the second quarter, with increasing demand for consumer products which utilize environmentally friendly rechargeable batteries, and our push into new end markets," said chairman and president Henian Wu.

The quarter also marked a major step for the company, as it signed a five-year exclusive distribution agreement with Nevada-based Alexis Power Supply Inc, part of TMK`s strategy to become a major supplier of nickel metal hydride-based (Ni-MH) power systems.

The company recently began commercial production of its Ni-MH battery packs, which will be used as back-up power supply sources for multiple industrial applications, including telecommunications, solar, railroad and traffic control systems.

The first shipment is due in October, at which time Alexis will market and distribute TMK`s products in the US and internationally.

Sales for the first six months of this year totalled $30.0 million compared to $21.3 million in the same period in 2009, an increase of 41.1%, mainly driven by growth in the company`s battery sales. Net income for the company in H1 2010, however, was approximately $0.8 million, a decrease of 74.0% from the same period last year, primarily due to a one-time merger cost.

In July, TMK began supplying AA/AAA products to Batteries Plus, Inc. a battery retailer in the US with more than 400 retail stores located in 43 states. The Company expects to generate approximately $1.5 to $3.0 million of revenues in 2011 through this relationship as it rolls out more products to all of Batteries Plus' more than 400 retail locations.

TMK is currently doubling its production capacity to accomodate customer orders and to increase its market share, added Wu.

Cash and cash equivalents as of June 30, 2010 totaled $0.9 million.

Investors were not impressed with the company`s results, however, as its share price dropped 6.25% in the first hour of trading to $1.35.

Founded in 1999, TMK manufactures and distributes high rate discharge Nickel Metal Hydride multi-cell batteries in its manufacturing facility located in Shenzhen, China.

The company works with its clients throughout the product design cycle to develop and integrate reliable and long-lasting rechargeable power solutions for widely used consumer products, which include home appliances, cordless power tools, medical devices, multiple personal communication devices and electric bicycles segments. It is also focused on becoming a supplier of back-up power solutions to the telecommunications industry and for traffic lighting applications.

Lihua International secures first customer contract for copper anode product with major Chinese copper and metal conglomerate

Tue, 17 Aug 2010 22:46:45 +0800

Chinese manufacturer of alternative copper products Lihua International Inc. (Nasdaq: LIWA) has signed its first customer contract for its new copper anode product with one of the world's largest copper and metal conglomerates based in China, whose annual revenue totals approximately $6 billion.

Under the terms of the supply agreement, Lihua will supply a minimum of 1,000 metric tons of copper anode to this customer on a monthly basis.

Lihua launched production of copper anode from its newly built second smelter in July 2010, doubling its manufacturing capacity to 50,000 tons per year. It is due to fulfill this customer's supply orders starting this month and pricing will be determined upon delivery at the prevailing market price.

Copper anode is the fundamental building block for almost all pure copper products, and holds a wide range of potential uses.

Lihua expects profitability for its copper anode product to be similar to that of its copper rod product, it said.

"This supply contract represents a significant endorsement of our newest pure copper product from one of the largest copper conglomerates in both China and the world," said chairman and CEO Jianhua Zhu.

"We are currently working to optimize the allocation of our copper anode output to a few select customers to ensure that we are diversifying our customer base for this new product line, while quickly securing an elite group of customers with healthy demand. We are very excited to have forged our first partnership with this industry leader. "

The company expects copper anode products to provide meaningful contributions to both its top and bottom line beginning in the third quarter, with its second smelter beginning to operate at full capacity in September of this year, it said.

As previously announced, Lihua expects full year 2010 gross profit to increase by 46-53% over 2009, to $52.9 to $55.7 million, and adjusted net income to grow by 48-57% to $38.1 million to $40.3 million.

Lihua, through its two wholly-owned subsidiaries, Lihua Electron and Lihua Copper, is a manufacturer of copper replacement products for China's rapidly growing copper wire and copper replacement product market.

Current product offerings include CCA and copper wire, copper rod and copper anode. Its products are sold in China either directly to manufacturers or through distributors in the wire and cable industries and manufacturers in either the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. The company is based in Danyang, Jiangsu Province.

China Recycling Energy`s profits up 56% on multi-million dollar biomass contract

Tue, 17 Aug 2010 21:44:20 +0800

China Recycling Energy Corp. (Nasdaq: CREG), an industrial waste-to-energy solution provider in China, has announced its second quarter 2010 results, posting revenue growth of 102% for the period to $22.54 million versus the same time last year, on the back of a multi-million dollar biomass renewable energy agreeement. Net income grew 56% from $3.32 million in Q2 2009 to $5.04 million for the second quarter 2010, while on a fully diluted basis, earnings per share totalled $0.10 for Q2 2010, growing 43% from last year. The news has sent the company`s shares up 6.6% today to $3.25.

China Recycling expanded its company during the quarter, acquiring biomass power generation systems (BPGS), a renewable energy resource and one of the main strategic energy alternatives to conventional energy sources. To this extent, the company has entered into a new contract with Pucheng Biomass Power Generation Company, which will allow China Recycling Corp. to have a minimum of $3.3 million per year in cash inflow for the next 15 years.

BPGS will play an important role in the company`s revenue growth as well as expand its existing waste-to-energy business model to inclue agriculture waste-to-energy, said chairman and CEO Guohua Ku.

Net sales were approximately $22.54 million compared to net sales of $11.14 million in Q2 2009, primarily attributed to the sales of the Pucheng BPGS. The company also recorded a contingent rental income of $0.74 million from actual usage of the electricity that was in addition to the minimum lease payments from previous projects.

"Our company continues to deliver superior financial and operating results on every level. I am very pleased to report tremendous growth on both our top and bottom line results. All of our projects are at or ahead of schedule, including Phase II and III of the Erdos Power Generation Project, which is expected to be completed in 2010," said Ku.

Gross profit was approximately $5.74 million for Q2 2010 compared to $2.69 million for the same period in 2009, representing a gross margin of approximately 25% and 24% for the second quarter of 2010 and 2009, respectively. The increase in gross profit was mainly from the profit of the sales-type leases of Pucheng BPGS and additional contingent rental income.

As of June 30, 2010, the company had cash and cash equivalents of $5.09 million.

The company has also reaffirmed its guidance that revenue for 2010 will be in the range of $68 million to $72 million, with net income, excluding non-cash charges, of $18 million to $20 million.

China Recycling Energy is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources.

Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is therefore viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand.

Biostar Pharmaceuticals' Q2 revenues grow 46% as sales of flagship Hep B drug increase

Tue, 17 Aug 2010 21:37:29 +0800

Biostar Pharmaceuticals, Inc. (Nasdaq: BSPM), a Xianyang-based manufacturer of the over-the-counter Hepatitis B medicine Xin Aoxing Oleanolic Acid Capsules as well as a variety of pharmaceutical products, posted revenue growth of 46.4% for the second quarter of 2010 , reaching revenues of $19.4 million, due largely to the sale of its Hepatitis B flagship product. Net income also rose 44.7% to $5.6 million compared to Q2 2009, while diluted earnings per share were $0.20 versus $0.16 last year.

Sales of Xin Aoxing capsules increased by 41.7% to $12.7 million with a gross margin of 85.0%, compared to $8.9 million in the second quarter of 2009. During the period, sales of Xin Aoxing represented 65.4% of total revenues and benefited from $1.7 million in sales from the Beijing, Tianjing and Shanghai markets, which were launched in the first quarter of 2010, in addition to $1.6 million from four new provincial markets including Jiangsu, Jiangxi, Chongqing and Hebei province.

Biostar`s Gan Wang Compound Paracetamol capsules helped as well, as its sales grew 42%, benefitting from unusually cold weather during Q2 in Shaanxi province, the company said. It also continued its expansion into rural communities in China, with products now being sold at 7,000 locations : 4.0 million in revenues were generated through this sales channel during the second quarter, up 58.8% from the year ago period. The quarter also saw the company launch health supplement products.

"We are seeing dividends from the resources allocated to expand brand recognition and awareness for our Xin Aoxing Capsules as a preferred medical treatment for Hepatitis B in China," said chairman and CEO Ronghua Wang.
"The addition of new rural network locations and our nutritional supplement product line is anticipated to generate incremental revenues for the balance of 2010. Collectively, our growth plan gives us confidence in meeting our 2010 guidance."

Indeed, the company re-iterated its guidance for the year, expecting revenues to reach between $80 million to $82 million and net income to total between $18 million and $20 million.

Biostar expects to receive the final approval to produce its Zushima Analgesic Spray in October. With $30 million in anticipated capacity, it expects to generate $3 million in revenue for fiscal 2011 and to grow at least 50% for the coming years, added Wang.

As at June 30, cash and cash equivalents totaled $9.7 million.

Biostar Pharmaceuticals develops, manufactures and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The company's most popular product is its Xin Ao Xing Oleanolic Acid Capsule, an over-the-counter (OTC) medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. In addition to its hepatitis product, it currently manufactures two broad-based OTC products, two prescription-based pharmaceuticals, one medical device and five health supplements.

Wuhan General Group revenues climb robustly, but margins suffer

Mon, 16 Aug 2010 23:45:00 +0800

Wuhan General Group (NASDAQ: WUHN)("Wuhan") a manufacturer of industrial blowers and turbines for power plants reported second quarter (three months ended June 30th, 2010) revenues of US$22.7 million, up 32% from the corresponding quarter in 2009.

Wuhan attributed the solid revenue growth to stronger sales into China's hydropower segment; during the quarter the company secured a US$4.7 million contract to supply blowers to Qinghai Huanghe Hydropower Development.

The strong lift in second quarter revenues helped the group report net income of US$0.4 million compared to just US$0.018 million in Q2 2009. Earnings per diluted share swung from a loss of 1 cent in Q2 2009 to a profit of 1 cent in Q2 2010.

" We are particularly pleased with the performance of our hydropower segment, which accounted for more than 60% of all turbine sales. Moreover, tighter control over selling and general and administrative expenses also helped improve our profitability year-over-year," said Ruilong Qi, the CEO of Wuhan General.

The numbers from Wuhan were not all rosy however, the company also reported that gross margins declined as it witnessed faster growth from lower margin products and continued to see strong competition for business. Gross margin was 21.3%, down 2.5 percentage points from 23.8% for the same period in 2009.

For the six months ended June 30, 2010, total revenue was US$40.6 million, up 15.4% from $35.2 million in the same period of 2009. Earnings per diluted share were 7 cents for the six months ended June 30, 2010 compared with 3 cents per diluted share for the corresponding period in 2009.

As of June 30, 2010, Wuhan General had $24.6 million in cash and $54.2 million in accounts receivable compared to $0.4 million and $54.0 million respectively as of December 31, 2009.

Looking ahead to the second half of 2010, Wuhan said it expected demand for blowers and turbines to stabilize as steel mills continue invest in upgrading their operations and China's hydropower industry maintains its expansion.

China Wind Systems firms after second quarter net revenue climbs nearly 40%

Mon, 16 Aug 2010 23:38:15 +0800

Shares in China Wind Systems (NASDAQ:CWS) firmed in early deals after the company reported a near 40% increase in second quarter net revenue to US$19 million.

The supplier of forged components and other industrial equipment to China's textile and wind power industries benefited from strong growth for its wind power products; the company reported a 152% increase in sales exclusively to the wind power industry to US$9.2 million, or nearly 49% of net revenue.

Overall, revenues for forged products to all industries represented 72.5% of total group sales, and grew by 40.5% year over year. Revenue from the Company's dyeing and finishing equipment segment increased 37.6% to $5.2 million, or 27.5% of net revenues, compared to $3.8 million, or 28% of net revenue, for the second quarter of 2009

Group operating income jumped 59.4% to US$4 million, while EBITDA (earnings before interest, taxes, depreciation and amortization) rose 46.4% to US$4.7 million. Net income climbed an impressive 69.8% to US$3 million, or 12 cents per diluted share. Gross margin increased 3.3 percentage points to 26.2%, compared to 22.9% for the same period in 2009.

"During the quarter, our forged products continued to experience strong growth, led by a significant increase in demand from our wind power customers," commented Jianhua Wu, Chairman and CEO of China Wind Systems.

As of June 30, 2010, China Wind Systems held cash and cash equivalents of $1.4 million, accounts receivable of $6.6 million, and working capital of $4.9 million.

Looking ahead, the components provider said it was planning to add an additional production line to its current forging facility to meet order flow. China Wind Systems maintained its full year guidance of revenues between US$76.5 million and S$85 million and net income between $15.5 million and $16.3 million.

"The Company anticipates stronger demand for both its traditional forged products and ESR forged products in 2010, as management expects stronger sales of precision forged products used in large wind turbines," it added.