The Audit Committee has advised the board that in its view, the findings of the Report further support the integrity of the Company's accounting system and financial reporting in the PRC and the US. The review was detailed, and it is also the view of the board that the Company's processes were shown to be in accordance with good accounting practices.
"We are pleased the findings in the Report confirm our continued efforts to deliver good financial reporting and transparency for our shareholders," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "We look forward to reporting strong fiscal 2012 results and completing the acquisition of the Huajie Petroleum assets as a further catalyst for our growth in fiscal 2013."
The procedures and findings of the Tax Reconciliation Report can be found on the Company's website at www.longweipetroleum.com under the "Investors" section. The report includes the following schedules as exhibits:
- Schedule A - Sales Revenue Compared between PRC SAT (CIT and VAT) filings to SEC filings
- Schedule B - List of Quarterly SAT - CIT Paid, Including Date, Amount, Voucher No. and Invoice No.
- Schedule C - List of Monthly SAT - VAT Paid, Including Date, Amount, Voucher No. and Invoice No.
- Schedule D - Comparison of December 31, 2011 SAIC filings to SEC filings for the same period of Calendar 2011
- Schedule E - Comparison of December 31, 2010 SAIC filings to SEC filings for the same period of Calendar 2010
About Longwei Petroleum Investment Holding Limited
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, storage 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 120,000 metric tons located at storage facilities in Taiyuan and Gujiao, Shanxi. The Company's Taiyuan and Gujiao facilities can store 50,000 metric tons and 70,000 metric tons, 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.