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Keyuan International Group Ltd. (SVPE.OB) Retains HC International as Demand Continues to Outpace Supply

Keyuan International Group Ltd., a leading Chinese petrochemical products producer, announced today that it has retained HC International, a premier China information investor resource, as its strategic investor relations advisor. HC will assist Keyuan in enhancing its corporate communications and visibility in the capital markets, and will advise the company in all facets of corporate and financial communications.

Keyuan is wrestling with a problem common to many Chinese companies, an inability to meet the demands of a rapidly developing economy. Growing product demand, coupled with under-developed domestic production capacity, has led to a persistent supply/demand imbalance for refined petrochemical products such as asphalt. As a result, every month China has been forced to import over 3 million tons of refined petrochemical products.

In response to this growing challenge, Keyuan plans to expand its manufacturing capacity to include a raw material pre-treatment facility, an asphalt production facility, and additional storage. Although the company expects to generate revenue of $461.3 million in fiscal 2010, with net income of $36.3 million, investor capital will remains critical to the newly publicly traded company.

Founder, chairman, and CEO of Keyuan, Mr. Chunfeng Tao, said, “We have selected HC International to provide strategic investor relations counsel and services to broaden our presence in the financial markets while helping investors gain a better understanding of our core business, growth plans and financial attributes. We are confident that HC International, which has a proven track record of representing successful China-based, US-listed companies, will help us to convey effectively our business model, growth strategy and value proposition, while helping us optimize our corporate transparency to our shareholders and the broader investment community.”

President of HC International, Matthew Hayden, also commented on the agreement. “China’s growing demand for petrochemical products, which has surpassed supply in recent years, has led to record contract signings and backlog for Keyuan’s various products. Growing market demand, coupled with the Company’s plans to increase production and storage capacity, should translate to significant growth opportunities for Keyuan. We look forward to working with the Company and its management team to increase investor awareness of Kenyan’s significant growth opportunity as it leverages its capacity to deliver industry leading products for its customers in China.”

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