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Oct. 22, 2012 /PRNewswire-FirstCall/ -- 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 completed an independent appraisal of the assets purchased from Huajie Petroleum Co., Ltd. ("Huajie") and received the official asset ownership registration documents from the local government.
Longwei contracted Shanxi Wan Jia Assets Appraisal LLP ("Shanxi Wan Jia") to inspect and perform an independent valuation report of the Huajie assets purchased on
September 26, 2012. The updated appraisal value of the Huajie assets was
RMB 752,066,600 (approximately
$119.4 million), a 7.5% increase in value over the purchase price. The updated valuation report is also an increase of approximately
$3.5 million from the
February 13, 2011 independent valuation report of
RMB 730,113,500 (approximately
$115.9 million), due to the increase in the real estate value. Shanxi Wan Jia is a certified member of the China Appraisal Society.
"The updated appraisal shows the additional value we received in the Huajie asset purchase," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "We are pleased to have closed on the Huajie asset purchase using our own cash resources without dilution to our shareholders, and we are now fully operational at the facility."
The Huajie facility nearly doubles Longwei's storage capacity to a total of 220,000 metric tons and extends the Company's reach into the fast-growing industrial region of northern
Shanxi Province. The purchased assets include fuel storage tanks with a 100,000-metric-ton capacity with accessory facilities and equipment, delivery and distribution platforms, including a dedicated rail spur, and a vehicle loading and unloading station. The purchase also included a 3,000-square-meter office building and land use rights for 98 acres of land adjacent to the main regional rail line. The Company has posted the updated appraisal report to its corporate website at
http://www.longweipetroleum.com/operations/storage-operations. The document can be seen in the "Operations" section of the website under the description of the Huajie Facility.
"We are committed to continuing to improve our level of transparency and disclosure with our shareholders," stated Mr. Cai. "We have recently achieved several milestones that we hope will be catalysts to boost shareholders' confidence in our Company and lead to an improved earnings multiple that reflects our operating performance.