Longwei Petroleum Responds to Blog Post Allegations
TAIYUAN CITY, China, Jan. 4, 2013 /PRNewswire/ -- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), has been informed of the allegations made by a group called Geo Investing in a report dated January 3, 2013, and will consider and decide on the necessary and appropriate course of action in response to the allegations. The Company believes that the Geo Investing report contains numerous errors of facts, misleading speculations and malicious interpretations of events.
Longwei and its legal counsel in the U.S. and the PRC, as well as its auditor are currently looking into the alleged claims made in the blog post. The Company will take further action and intends to defend itself. These types of allegations appear to be consistent with similar attacks against other Chinese companies by noted short sellers, which have later been proven to be inaccurate.
The Company will release additional information concerning the allegations in due course. Longwei is committed to providing full and accurate disclosure to investors and to rebutting any false claims that attempt to undermine confidence in the Company.
About Longwei Petroleum Investment Holding Limited (LPH)
Longwei Petroleum Investment Holding Limited is an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China. The Company's oil and gas operations consist of transporting, storing and selling finished petroleum products, entirely in the PRC. The Company's headquarters are located in Taiyuan City, Shanxi Province. The Company has a storage capacity for its products of 220,000 metric tons ("mt") located at three storage facilities within Shanxi: Taiyuan, Gujiao and Huajie, which have an individual storage capacity of approximately 50,000mt, 70,000mt, and 100,000mt, respectively. The Company has the necessary licenses to operate and sell petroleum products not only in Shanxi, but throughout the entire PRC. The Company's storage tanks have the largest storage capacity of any non-government operated entity in Shanxi.
The Company seeks to earn profits by selling its products at competitive prices with timely delivery to transportation companies, coal mining operations, power supply customers, large-scale gas stations and small, independent gas stations. The Company also earns revenue from agency fees by acting as a purchasing agent for other intermediaries in Shanxi, and through limited sales of diesel and gasoline at two retail gas stations, each located at the Company's Taiyuan and Gujiao facilities. The Company seeks to continue to expand its customer base and distribution platform through the utilization of its large storage capacity, which allows the Company the flexibility to take advantage of pricing, supply and demand fluctuations in the marketplace.
Longwei was recently named to the Forbes list of "Asia's 200 Best Under a Billion" from a universe of 15,000 companies. Forbes ranked the companies based on sales growth, earnings growth and return on equity in the past 12 months and over three years. As was reported, Longwei's three-year track record is 45% sales growth, 28% earnings per share growth and 28% return on equity. The Forbes article can be found at: http://www.forbes.com/sites/christinasettimi/2012/07/25/asias-200-best-under-a-billion
For further information on Longwei, please visit http://www.longweipetroleum.com. You may register to receive the Company's future press releases on the website under 'Email Alert.'
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Longwei's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Longwei's operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
Contact:
At the Company:
Michael Toups, Chief Financial Officer
Tel: U.S. Office +1-727-641-1357
Email: mtoups@longweipetroleum.com
Web: http://www.longweipetroleum.com
Investor Relations:
Tina Xiao
Weitian Group LLC
Tel: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
Web: http://www.weitian-ir.com
SOURCE Longwei Petroleum Investment Holding Ltd.
Lack of any form of denial suggests the Geo article is true. Grat job Geo--keep up the good work, there are many more fraudulent Chinese companies out there to profit from.
I think it is because they believe he is corrupt because he said he likes to bribe to get things done ahem corruption... you dont actually admit that in interviews .... so he doesn't think that is bad at all then... thus not good which is why higher % of his side of things has problems.
ming zhao is also another indicator as such.
geo investing has been getting most of their's right by following those 2.
now what did the china shorts get wrong?
Alfred little relied on his insider info from rodman and renshaw because he had high investment account status so could manipulate things from the side.
hence he got rino and scei easily. but wendy fu in scei was an indicator as well. these are the frauds
deer had ben wey killing them. still they do in fact sell products but they might not be making much money but never the less not exactly a complete fraud. hence it is 75-80% fraud most likely
alfred little : Jon Carnes then accused svm his most recent one that lasted a full 1.5 years and he still can't do anything on svm.
you know why? because the first time he got it 99% wrong
refer to metal agumentor svm analysis where even alfred little: Jon Carnes Praises
metalaugmentor.com/ana...
and
http://bit.ly/pYWbmx
thus proving 99% of his arguments wrong
svm did in fact come out guns blazing and out right proving themselves innocent after all.
But one thing Alfred little is still gloating about everything instead of admitting he is flat out wrong.
after he is ny court let him go to protect his 1st amendment rights even though his company is now canada not usa, wasting the chance to admit he made a mistake and he is sorry.
he later published 2 more hit pieces that turned out to be flat out wrong AGAIN.
read the commentary section and you would know.
he screwed up big time and him going to gloat and not admitting he was wrong made it even worse for him.
He thinks others are stupid now and will let it go and say he is correct but no he is not.
He needs to man up and admit his group got it flat out wrong and apologize to a Canadian not Chinese company.
his wife is Chinese anyway she must hate herself somehow.
you can do a search on seeking alpha for alfred little that got it wrong on svm but wont admit it and keeps sending people to harass the company instead.
thus now he is trying hard to frame svm some way some how to make himself look better.
except svm has officially became an international miner with their
tagish lake mine owned by nux.to their sub company based in Canada.
too bad Jon you had your chance, now he doesn't want to give up and wants them dead still.
sorry the lot of these shorts are criminals
geoinvesting I hope are better
maybe citron as well but not likely they most likely got it wrong on
kaifu lee companies kaifu lee was a manager at microsoft and google that later gone to form his own company.
sorry citron yes you likely got it wrong and need to apologize.
just a question to China shorts why when these so called gurus and messiahs get it FLAT OUT WRONG no one calls them out and
forces them to apologize.
yes they are NOT 100%
and they need to apologize at least when wrong instead of being douche bags like Jon Carnes.
Like I stated on the other blog; if LPH did not come out today with guns blazing on hard solid facts about their sales and revenue (if anything to ease investor worries) then its most likely going to be a 1/2hass lame statement sometime next week.
Further more; I do not know why this article bothered listing the investor relation contact numbers since LPH is not answering any calls in their US based offices. I tried calling 3x. First two calls went to voice mail and the third call someone picked up and hung up the phone.
I was 50/50 with Geo's article yesterday now I am 100% confident in Geo's findings / allegations. Oh well, that's what I get for trying to day trade a jack knife play. My brother told me it's gonna bite me in the tush some day, but at least I knew better than to long term invest in these Chinese scamola, crapola, companies.
Can any of you recommend any good books/ sites that could help improve my body of knowledge? I go to this site and Bloomberg every day and have read "The Only Investment Guide You'll Ever Need," but that's the extent of my knowledge. I'd like to get to the point where I'm comfortable trading. Right now I use Scottrade and am working with about $10,000 in funds. You got to start somewhere.