Sino Gas International Holdings, Inc. Establishes New Subsidiary in Northeastern China
July 24 2007 - 7:00AM
PR Newswire (US)
BEIJING, July 24 /Xinhua-PRNewswire-FirstCall/ -- Sino Gas
International Holdings, Inc. (OTC:SGAS.OB) (BULLETIN BOARD:
SGAS.OB) ("Sino Gas", the "Company") and its subsidiary Beijing
Zhong Ran Wei Ye Gas Co., Ltd. ("Beijing Gas") announced the
establishment of Baishan Zhong Ran We Ye Gas Co., Ltd. ("Baishan
Gas") and the acquisition of all of the operating assets of Baishan
Gas Co., Ltd. ("Baishan"), a privately held natural gas
distribution business, in Jilin Province of China on July 9, 2007
for approximately $5.0 million in cash and assumed debt. Sino Gas,
through Beijing Gas, signed an agreement with Baishan municipal
government in Jilin Province to form the new subsidiary company,
effective July 12, 2007. The new company was granted a 30-year
exclusive gas operation license by the Baishan municipal
government. With registered capital at $2.0 million, the new
company used $921,000 to purchase all the operating assets of
Baishan. Beijing Gas is also responsible for paying the outstanding
debts of Baishan, which total $4.0 million. In total, Beijing Gas
acquired the operations of Baishan for a purchase price of
approximately $5.0 million, which will be paid in cash installments
beginning in 2007, the majority of which is due in December 2030.
Baishan Gas will be a regional natural gas distributor and a
developer of gas distribution networks in Jilin Province. The new
company's current distribution network includes 8,000 connected
households and one gas station. The Company estimates a total of
30,000 households will be connected in the next three years, with
6,000 households connected in 2007, 10,000 households in 2008 and
14,000 households in 2009. In terms of revenues, the Company
expects to generate $9.0 million from connection fees and $5.0
million from recurring gas sales over the three-year period. "We
are extremely happy to announce this new addition to our growing
portfolio of subsidiary companies," commented Mr. Yu-chuan Liu,
Chairman, CEO and President of Sino Gas. "The size of Baishan Gas
will greatly boost our revenues and net income. In particular, this
acquisition signifies the expansion of our distribution network in
the Northeastern region of China, which reinforces our capabilities
as we strive to become a leading distributor of natural gas in
China." 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 25
natural gas distribution systems serving approximately 75,000
residential and six commercial and industrial customers. Facilities
include over 700 kilometers ("km") of pipeline and delivery
networks with a daily capacity of approximately 70,000 cubic meters
of natural gas. The company is currently constructing four
additional natural gas distribution systems, and it has two more in
the planning stages. Beijing Gas owns and operates natural gas
distribution systems primarily in Hebei, Jiangsu, Anhui and
Shandong Provinces. For further information, visit the Company's
website at http://www.sino-gas.com/ . Safe Harbor Statement This
announcement contains "forward-looking statements" within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including but not limited to, 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 July 24, 2007. 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: Sino Gas
International Holdings, Inc. Ms. Fang Chen, Chief Financial Officer
Tel: +86-10-8260-0527 Email: CCG Elite Investor Relations Crocker
Coulson, President Tel: +1-646-213-1915/1914 (New York) Email:
DATASOURCE: Sino Gas International Holdings, Inc. CONTACT: Ms. Fang
Chen, Chief Financial Officer, Sino Gas International Holdings,
Inc., +86-10-8260-0527, or ; Crocker Coulson, President of CCG
Elite Investor Relations, +1-646-213-1915/1914 , or , for Sino Gas
Web site: http://www.sino-gas.com/
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