Sino Gas International Holdings, Inc. Announces Acquisition of Yuxian Jinli Gas Co., Ltd. and Xiahuayuan Jinli Gas Co., Ltd.
January 11 2007 - 9:08AM
PR Newswire (US)
BEIJING, Dec. 28 /Xinhua-PRNewswire/ -- Sino Gas International
Holdings, Inc. (OTC:SGAS) (BULLETIN BOARD: SGAS) ("Sino Gas", the
"Company"), through its Beijing Zhong Ran Wei Ye Gas Co., Ltd.
("Beijing Gas"), a rapidly growing developer of natural gas
distribution systems in small- and medium-sized cities, as well as
a distributor of natural gas to residential, commercial and
industrial customers in China, today announced the acquisition of
Yuxian Jinli Gas Co., Ltd. and Xiahuayuan Jinli Gas Co., Ltd., two
privately held natural gas distribution businesses in the Hebei
Province of China for approximately $1.5 million in cash. This
acquisition includes all the assets, customer relationships and the
concession rights to be the exclusive gas distributor in the Yuxian
and Xiahuayuan regions for a period of 25 years. Yuxian Jinli Gas
Co., Ltd. has 4,268 connected households with annual revenues of
approximately $195 thousand from recurring gas sales. Xiahuayuan
Jinli Gas Co., Ltd. has 532 connected households with annual
revenues of approximately $2.4 thousand from recurring gas sales.
The proposed new projects in these regions will add 4,900
households in Yuxian and 2,900 households in Xiahuayuan and are
expected to generate $2.6 million in revenue from connection fees
for Sino Gas during 2007 to 2008. "We are very pleased to announce
the addition of these two new subsidiaries to our group," commented
Mr. Liu, Chairman, CEO and President of Sino Gas. "These
acquisitions will help accelerate our growth in 2007 and bring us
one step closer to our goal of becoming a leading distributor of
natural gas in China." The transaction was completed December 26,
2006 and will add 4,800 connected households to Sino Gas existing
33,000 as of the end of the third quarter 2006, and be accretive to
earnings in 2007. About Sino Gas International Holdings, Inc. The
Company, through its indirectly wholly-owned subsidiary, Beijing
Zhong Ran Wei Ye Gas Co., Ltd. ("Beijing Gas"), and the
subsidiaries of Beijing Gas, is a leading developer of natural gas
distribution systems in small- and medium-sized cities in China, as
well as a distributor of natural gas to residential, commercial and
industrial customers in China. The company owns and operates 20
natural gas distribution systems serving approximately 33,000
residential and four commercial and industrial customers.
Facilities include approximately 200 kilometers ("km") of pipeline
and delivery networks with a designed daily capacity of
approximately 40,000 cubic meters of natural gas ("m3"). The
company is currently constructing four additional natural gas
distribution systems and is planning two more natural gas
distribution systems. Beijing Gas Company owns and operates natural
gas distribution systems primarily in Hebei, Jiangsu, and Shandong
Provinces. For further information, visit the Company's website at
http://www.bjgas.cn/ . About Yuxian Jinli Gas Co., Ltd. Yuxian
Jinli Gas Co., Ltd. is a developer of natural gas distribution
systems as well as a distributor of natural gas to residential,
commercial and industrial customers in the Yuxian County, in the
Hebei Province of China. About Xiahuayuan Jinli Gas Co., Ltd.,
Xiahuayuan Jinli Gas Co., Ltd. is a developer of natural gas
distribution systems as well as a distributor of natural gas to
residential, commercial and industrial customers in the Xiahuayuan
County, in the Hebei Province of China. Safe Harbor Statement This
announcement contains "forward-looking statements" within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including but not limited to, the Company's ability to
raise additional capital to finance the Company's activities; the
effectiveness, profitability, and the marketability of its
products; legal and regulatory risks associated with the Share
Exchange; the future trading of the common stock of the Company;
the ability of the Company to operate as a public company; the
period of time for which its current liquidity will enable the
Company to fund its operations; general economic and business
conditions; the volatility of the Company's operating results and
financial condition; 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.
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. All information in this release is as
of December 27, 2006. The Company undertakes no duty to update any
forward-looking statements to conform the release to actual results
or changes in its circumstances or expectations after the date of
this release. For more information, please contact: Ms. Fang Chen,
Chief Financial Officer, Sino Gas International Holdings, Inc. Tel:
+86-10-8260-0042 Email: Crocker Coulson, President / Ed Job,
Financial Writer CCG Elite Investor Relations Tel:
+1-646-213-1915/1914 (New York) Email: / DATASOURCE: Sino Gas
International Holdings, Inc. CONTACT: Ms. Fang Chen, Chief
Financial Officer of Sino Gas International Holdings, Inc.,
+86-10-8260-0042, or ; or Crocker Coulson, President, or Ed Job,
Financial Writer of CCG Elite Investor Relations,
+1-646-213-1315/1914 (New York), or or , for Sino Gas
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