Longwei Petroleum Announces Financial Results for First Quarter of
Fiscal 2013
TAIYUAN CITY, China, Nov. 13, 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"), today announced its financial results for the
first quarter ended September 30,
2012.
First Quarter Fiscal Year 2013 Financial
Highlights: (Year-over-Year, 3-Month Results for Quarters
Ended September 30, 2012 and
2011)
- Product sales volume in metric tons ("mt") increased 17.8% to
110,587mt, compared with 93,862mt.
- Revenues increased 12.4% to $133.4
million, compared with $118.6
million.
- The Company's Taiyuan and Gujiao fuel storage facilities
contributed revenues of approximately $70.6
million and $57.6 million,
respectively. Agency fees contributed $5.2
million to revenues.
- Operating income increased 16.5% to $24.5 million, compared with $21.0 million.
- Non-GAAP net income attributable to common shareholders
increased 16.7% to $18.3 million,
compared to $15.7 million.
- Basic GAAP EPS remained unchanged at $0.18 per share for the three months ended
September 30, 2012 and 2011. The
Company's diluted GAAP EPS increased $0.02 or 13.3% to $0.17 from $0.15
for the three months ended September 30,
2012 and 2011, respectively.
- Tangible book value per share increased approximately 4.8% to
$3.47 per share at September 30, 2012, compared with $3.31 per share at June
30, 2012.
- Total assets increased $17.7
million or 5.2% to $360.0
million at September 30, 2012,
compared with $342.3 million at
June 30, 2012.
"Our fiscal first quarter saw the completion of two very
important initiatives," stated Mr. Cai Yongjun, Chairman and CEO of
Longwei. "First, independent auditors completed a tax
reconciliation of our SAT and SAIC filings with our SEC filings.
The results verified no material differences. Second, we are very
pleased to have completed our cash purchase of the Huajie Petroleum
assets, which have nearly doubled our overall capacity to 220,000
metric tons. Together, we believe these accomplishments position us
for strong shareholder value improvement."
"China's demand for oil is likely to show its largest increase
in two years in the fourth quarter as the country's economic growth
begins to pick up, according to industry experts." China Daily (November
9, 2012). The article continues, "In the fourth
quarter, China is expected to use 9.64 million barrels of oil a
day, which would result in the largest quarterly increase since the
same period of 2010, according to the International Energy Agency
and Sanford C. Bernstein &
Co."
"We continue to capitalize on the growing domestic demand for
petroleum products in China, and
as proven in our first-quarter results, expect strong top-line and
bottom-line results in fiscal 2013," stated Michael Toups, Chief Financial Officer of
Longwei. "Our Huajie facility has come on-line in October and will
be a major catalyst for growth in the quarters ahead."
Summary of First Quarter Results of Operations
Revenues - During the first quarter ended September 30, 2012, Longwei's sales increased
12.4% to $133.4 million, up from
$118.6 million in the first quarter
of fiscal 2012. The Company's Taiyuan and Gujiao fuel storage
facilities contributed revenues of approximately $70.6 million and $57.6
million, respectively, during the first quarter. The sales
increase was primarily due to the increase in product sales volume
of 17.8% year-over-year as a result of improving economic
conditions and regional growth. However, the weighted average sales
price per metric ton ("mt") of petroleum products sold decreased
approximately 3.8% to $1,159/mt from
$1,205/mt for the quarters ended
September 30, 2012 and 2011,
respectively. The Company continues to allocate product sales
between its facilities to better service its customer base.
Longwei's revenues are derived from two segments: direct product
sales and agency fees. For direct product sales, the Company
purchases, takes physical possession of, and sells diesel,
gasoline, fuel oil and solvents. For agency fees, the Company
acts as a purchasing agent, earning a fee or commission by allowing
intermediaries to use its licenses and buying power to purchase
directly from the refineries. During the quarter ended
September 30, 2012, compared to the
year-ago period, Longwei's product sales increased $15.1 million or 13.3% from $113.1 million to $128.2
million, and agency fees decreased $0.3 million or 5.6% from $5.5 million to $5.2
million.
Total sales volume for the three months ended September 30, 2012 increased 17.8% to 110,587mt
from 93,862mt for the three-month period ended September 30, 2011. The increase in volume
was primarily due to improving economic conditions and regional
growth.
The decrease in the price per mt of petroleum products was due
to the average decrease in international crude oil prices and
corresponding price decreases set by the PRC to retail petroleum
prices. During the timeframe from fiscal year end June 30, 2011 through September 30, 2012, the PRC decreased retail
prices four times, but also increased retail prices four times,
most recently in August and September
2012.
Cost of Sales - Costs of sales increased by $11.3 million or 11.7% to $108.0 million for the three months ended
September 30, 2012 from $96.6 million for the three months ended
September 30, 2011. As a percentage
of total revenues, total cost of sales between the periods
decreased by 0.5% to 80.9% from 81.4%. The decrease in cost of
sales as a percentage of revenue was primarily due to the lower
weighted average inventory costs from inventory purchased in the
prior quarter during a period of declining international prices and
a current period of rising retail petroleum prices implemented by
the PRC in August and September
2012.
We pay market prices to our refinery suppliers and carefully
manage our inventory levels to adjust to pricing fluctuations. The
three-month weighted average cost basis per metric ton of petroleum
product we sold decreased by $53/mt
or 5.2% to $976mt from $1,029/mt
during the three months ended September 30,
2012 and 2011, respectively. During the three month period
ended September 30, 2012, the
Company's gross profit margin on product sales increased 8.2% to
15.8% from 14.6% during the three month period ended September 30, 2011, because of lower average
inventory costs due to prior decreases in international crude oil
prices. International crude oil prices have subsequently increased,
but the PRC has also increased the retail price of petroleum to
more accurately reflect the fluctuations in worldwide crude oil
prices.
The Company also experienced a drop in agency fee revenues of
$0.3 or 5.6% to $5.2 million during the three months ended
September 30, 2012 compared to
$5.5 million during the three months
ended September 30, 2011. When the
Company earns higher agency fees, the net effect lowers the
percentage of total cost of sales because there are no costs
associated with the agency fees.
Operating Expenses - Operating expenses for the first
quarter totaled $0.9 million as
compared to $1.0 million for the
first quarter of fiscal 2012. As a percentage of revenues,
operating expenses decreased to 0.7% for the quarter ended
September 30, 2012 from 0.8% for the
quarter ended September 30, 2011. The
decrease was primarily due to lower professional fees paid during
the period.
Operating Income - Operating income for the three months
ended September 30, 2012 increased
$3.5 million or 16.5% to $24.5 million from $21.0
million for the three months ended September 30, 2011, due to the increase in
product sales volume of 17.8% year-over-year as a result of
improving economic conditions and regional growth and the increase
in overall gross profit margin of 0.5% due to lower average
inventory costs.
Net Income - Net income attributable to common
shareholders decreased by approximately $0.1
million or 0.4% to $17.8
million for the three months ended September 30, 2012 from $17.9 million for the three months ended
September 30, 2011.
The non-cash expense for the change in the fair value of the
warrant derivative liability for the first quarter of 2012 was
$0.6 million, compared to the
non-cash income reported for the change in the warrant derivative
liability of $2.1 million in the
first quarter of fiscal 2012. Non-GAAP net income attributable
to common shareholders adjusted for the non-cash warrant derivative
liability charge increased by $2.6
million or 16.7% to $18.3
million for the three months ended September 30, 2012 from $15.7 million for the three months ended
September 30, 2011.
EPS - The Company's basic GAAP earnings per share
remained unchanged at $0.18 for the
three months ended September 30, 2012
and 2011. The Company's diluted earnings per share increased
$0.02 or 13.3% to $0.17 from $0.15
for the three months ended September 30,
2012 and 2011, respectively.
Liquidity and Capital Resources
Cash and cash equivalents totaled $14.4
million at September 30, 2012.
As of September 30, 2012, the
Company's current assets decreased $5.2
million or 2.5% to $202.8
million from $208.0 million at
year end June 30, 2012, primarily due
to the use of cash on-hand and conversion of working capital assets
during the quarter for the payment of $23.7
million for the balance of the Huajie Petroleum assets.
The Company's current ratio is approximately 22:1 (current
assets to current liabilities). Total assets, including the Huajie
Petroleum assets, as of September 30,
2012 were $360.0 million. The
Company had no long-term debt as of September 30, 2012.
The average age of inventory decreased to 42 days from 55 days
during the three months ended September 30,
2012 compared to the three-month period ended September 30, 2011. The Company turned on-hand
inventory more quickly, but held more inventory through advances to
suppliers by locking in petroleum pricing in the prior quarter when
prices were at lower levels. At September
30, 2012, the Company's advances to suppliers were
$109.6 million compared to
$64.5 million at September 30, 2011.
Longwei completed the purchase of the assets of Huajie Petroleum
Co., Ltd. ("Huajie") on September 26,
2012, pursuant to an Asset Purchase
Agreement. The Company acquired the assets of Huajie, a
fuel storage depot in northern Shanxi
Province (located in Xingyuan, Shanxi) including fuel tanks with a
100,000-metric-ton storage capacity. The Company paid RMB 700 million (approximately USD $110.6 million) for the assets. The assets
included land use rights for 98 acres of land, 100,000-tonnage fuel
tanks with accessory facilities and equipment, a special
transportation railway line, and a 3,000-square-meter office
building. The Company engaged a third-party, independent
valuation firm for the appraisal of the fair market value of the
assets acquired, which exceeded the purchase price. The
Company used its cash on hand and conversion of working capital
assets to finance the acquisition.
2013 Financial Outlook
Longwei expects revenue growth of approximately 26.6% to
$646.3 million, and net income growth
of approximately 24.2% to $77.6
million, adjusted for the warrant derivative liability, for
the fiscal year ending June 30,
2013. This growth rate does not account for any external
financing for inventory, which could accelerate growth. The
growth is driven primarily by the ramp-up of the Huajie facility
and organic growth at the Company's two existing
facilities. The Company forecasts it can maintain
profitability within the range-band of its historical margins, as
proven by its track record during times of volatile fluctuations in
the price of international crude oil.
The GDP growth rate for Shanxi
Province during 2011 was 13%, according to China Daily (March
13, 2012), and it is expected to be approximately 10% for
2012, which outpaces the general economic growth estimates of 7.5%
in the PRC. The provincial government has estimated the fixed-asset
investment in Shanxi to be
RMB 5 trillion (approximately
$790 billion) over the next five
years, according to China
Daily (September 13,
2011). The provincial government also recently announced an
additional RMB 1 trillion
(approximately $158 billion) in local
development projects as part of the region's industrial stimulus
plan, according to China Securities News (August 23, 2012). The Company believes its
locations within Shanxi Province
are advantageous to the growth of its business model.
The financial guidance for fiscal year 2013 reflects the
Company's current estimates based on the conditions and trends
known to the Company as of the date of this release. Results
are subject to change based upon further review by management and
future changes in market and operating conditions.
Conference Call and Webcast
Management will host a conference call to discuss these
financial results on Wednesday, November 14,
2012 at 10:00 a.m. EST
(7:00 a.m. PST).
To participate in the call, please dial (888) 397-5352, or (719)
325-2402 for international calls, approximately 10 minutes prior to
the scheduled start time. Interested parties can also listen via a
live Internet webcast, which can be found via the Company's website
at http://www.longweipetroleum.com, or alternately at
http://ViaVid.net.
A replay of the call will be available for two weeks from
1:00 p.m. EST on November 14, 2012, until 11:59 p.m. EST on November
28, 2012. The number for the replay is (877) 870-5176, or
(858) 384-5517 for international calls; the passcode for the replay
is 4109586. In addition, a recording of the call will be available
via the Company's website at http://www.longweipetroleum.com for
one year.
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, storing 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 220,000 metric tons located at three storage facilities
within Shanxi: Taiyuan, Gujiao and
Huajie, which have an individual storage capacity of approximately
50,000 metric tons ("mt"), 70,000mt, and 100,000mt,
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.
The Company seeks to earn profits by selling its products at
competitive prices with timely delivery to transportation
companies, coal mining operations, power supply customers,
large-scale gas stations and small, independent gas stations. The
Company also earns revenue from agency fees by acting as a
purchasing agent for other intermediaries in Shanxi, and through limited sales of diesel
and gasoline at two retail gas stations, each located at the
Company's Taiyuan and Gujiao facilities. The Company seeks to
continue to expand its customer base and distribution platform
through the utilization of its large storage capacity, which allows
the Company the flexibility to take advantage of pricing, supply
and demand fluctuations in the marketplace.
Longwei was recently named to the Forbes list of
"Asia's 200 Best Under a Billion"
from a universe of 15,000 companies. Forbes ranked the
companies based on sales growth, earnings growth and return on
equity in the past 12 months and over three years. As was
reported, Longwei's three-year track record is 45% sales growth,
28% earnings per share growth and 28% return on equity. The
Forbes article can be found at:
http://www.forbes.com/sites/christinasettimi/2012/07/25/asias-200-best-under-a-billion
For further information on Longwei Petroleum Investment Holding
Limited, please visit http://www.longweipetroleum.com. You may
register to receive Longwei Petroleum Investment Holding Limited's
future press releases or request to be added to the Company's
distribution list by contacting Dave
Gentry at info@redchip.com.
Forward-Looking Statements
Certain statements contained herein constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current expectations, estimates and
projections about Longwei's industry, management's beliefs and
certain assumptions made by management. Readers are cautioned that
any such forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Because such statements
involve risks and uncertainties, the actual results and performance
of the Company may differ materially from the results expressed or
implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Longwei's operations are conducted
in the PRC and, accordingly, are subject to special considerations
and significant risks not typically associated with companies in
North America and Western Europe. These include risks associated
with, among others, the political, economic and legal environment
and foreign currency exchange. The Company's results may be
adversely affected by changes in the political and social
conditions in the PRC and by changes in governmental policies with
respect to laws and regulations, anti-inflationary measures,
currency conversion, remittances abroad, and rates and methods of
taxation. Other potential risks and uncertainties include but are
not limited to the ability to procure, properly price, retain and
successfully complete projects, and changes in products and
competition. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions
to the forward-looking statements made here. Readers should review
carefully reports or documents the Company files periodically with
the Securities and Exchange Commission.
Contact:
At the Company:
Michael Toups, Chief Financial
Officer
Tel: U.S. Office +1-727-641-1357
Email: mtoups@longweipetroleum.com
Web: http://www.longweipetroleum.com
Investor Relations:
Mike Bowdoin
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 110
Email: mike@redchip.com
Web: http://www.redchip.com
Tina Xiao
Weitian Group LLC
Tel: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
Web: http://www.weitian-ir.com
Longwei Petroleum
Investment Holding Limited and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
September 30, 2012
|
|
|
June
30, 2012
|
Assets
|
|
(In Thousands)
|
Current
Assets:
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
Cash
|
|
$
|
14,413
|
|
|
$
|
11,578
|
Accounts Receivable, Net of
Allowance for Doubtful Accounts of $0
as of September 30, 2012 and
June 30, 2012
|
|
|
30,775
|
|
|
|
33,935
|
Inventories
|
|
|
48,072
|
|
|
|
52,619
|
Advances to
Suppliers
|
|
|
109,578
|
|
|
|
109,865
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
202,838
|
|
|
|
207,997
|
|
|
|
|
|
|
|
|
Property, Plant and
Equipment, Net
|
|
|
132,937
|
|
|
|
47,202
|
Land Use Rights,
Net
|
|
|
24,262
|
|
|
|
-
|
Deposit
Paid for Long-Term Assets
|
|
|
-
|
|
|
|
87,103
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
360,037
|
|
|
$
|
342,302
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
$
|
926
|
|
|
$
|
750
|
Warrant Derivative
|
|
|
895
|
|
|
|
320
|
Taxes
Payable
|
|
|
7,558
|
|
|
|
7,687
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
9,379
|
|
|
|
8,757
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
9,379
|
|
|
|
8,757
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock, No Par Value;
100,000,000 Shares Authorized; 814,643 and 914,643
Issued
and Outstanding as of
September 30, 2012 and June 30, 2012
|
|
|
373
|
|
|
|
418
|
Common Stock, No Par Value;
500,000,000 Shares Authorized; 100,989,966 and
100,889,966
Issued and Outstanding as of
September 30, 2012 and June 30, 2012
|
|
|
31,713
|
|
|
|
31,667
|
Additional Paid-in
Capital
|
|
|
7,992
|
|
|
|
7,992
|
Retained Earnings
|
|
|
279,454
|
|
|
|
261,696
|
Other
Comprehensive Income
|
|
|
31,126
|
|
|
|
31,772
|
|
|
|
|
|
|
|
|
Total
Stockholders' Equity
|
|
|
350,658
|
|
|
|
333,545
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
360,037
|
|
|
$
|
342,302
|
|
The notes to
consolidated financial statements, available in the Company's Form
10-Q filed with the SEC on November 13, 2012, are an integral part
of these financial statements.
|
Longwei Petroleum
Investment Holding Limited and Subsidiaries
|
Unaudited Condensed
Consolidated Statements of Operations and Other Comprehensive
Income
|
|
|
|
For the Three Months
Ended
September
30,
|
|
|
2012
|
|
|
2011
|
|
|
(In
Thousands, Except Per Share
Data)
|
|
|
|
Net
Sales
|
|
$
|
133,385
|
|
|
$
|
118,631
|
|
|
|
|
|
|
|
|
Cost of
Sales
|
|
|
107,954
|
|
|
|
96,614
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
25,431
|
|
|
|
22,017
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
918
|
|
|
|
973
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
24,513
|
|
|
|
21,044
|
|
|
|
|
|
|
|
|
Derivative Income
(Expense)
|
|
|
(575)
|
|
|
|
2,127
|
Interest
Income
|
|
|
5
|
|
|
|
4
|
|
|
|
|
|
|
|
|
Income Before Income Tax
Expense
|
|
|
23,943
|
|
|
|
23,175
|
|
|
|
|
|
|
|
|
Income Tax
Expense
|
|
|
(6,170)
|
|
|
|
(5,324)
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
17,773
|
|
|
|
17,851
|
|
|
|
|
|
|
|
|
Foreign Currency
Translation Adjustment
|
|
|
(646)
|
|
|
|
2,856
|
|
|
|
|
|
|
|
|
Comprehensive
Income
|
|
$
|
17,127
|
|
|
$
|
20,707
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
17,773
|
|
|
$
|
17,851
|
Preferred Stock
Dividends Paid in Cash
|
|
|
(15)
|
|
|
|
(15)
|
|
|
|
|
|
|
|
|
Net Income Attributable
to Common Stockholders
|
|
$
|
17,758
|
|
|
$
|
17,836
|
|
|
|
|
|
|
|
|
Earnings per Common
Share:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.18
|
|
|
$
|
.018
|
|
|
|
|
|
|
|
|
Diluted (September 30,
2011 – Restated)
|
|
$
|
0.17
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
Weighted Average Common
Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
100,961
|
|
|
|
100,752
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
101,814
|
|
|
|
101,701
|
|
The notes to
consolidated financial statements, available in the Company's Form
10-Q filed with the SEC on November 13, 2012, are an integral part
of these financial statements.
|
Longwei Petroleum
Investment Holding Limited and Subsidiaries
|
Unaudited Condensed
Consolidated Statements of Cash Flows
|
|
|
|
For the Three Months
Ended
September
30,
|
|
|
2012
|
|
2011
|
|
|
(In Thousands)
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Net Income
|
|
$
|
17,773
|
|
$
|
17,851
|
|
|
|
|
|
|
|
Adjustments to Reconcile
Net Income to Net Cash Provided by (Used in) Operating
Activities:
|
|
|
|
|
|
|
Depreciation
and Amortization
|
|
|
557
|
|
|
515
|
Stock
Based Compensation
|
|
|
17
|
|
|
17
|
Changes
in Warrant Derivative Liability
|
|
|
575
|
|
|
(2,127)
|
(Increases)
Decreases in Assets:
|
|
|
|
|
|
|
Accounts
Receivable
|
|
|
3,095
|
|
|
(203)
|
Inventories
|
|
|
4,446
|
|
|
(13,935)
|
Advances
to Suppliers
|
|
|
75
|
|
|
(6,149)
|
Increases
(Decreases) in Liabilities:
|
|
|
|
|
|
|
Accounts
Payable
|
|
|
(28)
|
|
|
25
|
Taxes
Payable
|
|
|
74
|
|
|
(2,620)
|
Net Cash Provided By
(Used in) Operating activities
|
|
|
26,584
|
|
|
(6,626)
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
Purchase
and Improvements to Land and Fixed Assets
|
|
|
(23,710)
|
|
|
-
|
Net Cash Provided By
(Used in) Investing Activities
|
|
|
(23,710)
|
|
|
-
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
Payment
of Dividends
|
|
|
(15)
|
|
|
(15)
|
Net Cash Provided By
(Used in) Financing Activities
|
|
|
(15)
|
|
|
(15)
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes in Cash
|
|
|
(24)
|
|
|
131
|
|
|
|
|
|
|
|
(Decrease) Increase
in Cash
|
|
|
2,835
|
|
|
(6,510)
|
|
|
|
|
|
|
|
Cash, Beginning of
Period
|
|
|
11,578
|
|
|
9,422
|
|
|
|
|
|
|
|
Cash, End of
Period
|
|
$
|
14,413
|
|
$
|
2,912
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
|
|
Cash
Paid During the Year for:
|
|
|
|
|
|
|
Income
Taxes
|
|
$
|
5,585
|
|
$
|
6,956
|
|
|
|
|
|
|
|
Supplemental Schedule
of Noncash Investing and Financing Activities:
|
|
|
|
|
|
|
Conversion
of Preferred Stock into Common Stock
|
|
$
|
-
|
|
$
|
-
|
Deposits-Long
Term Assets for Fixed Assets
|
|
$
|
87,103
|
|
$
|
-
|
|
The notes to
consolidated financial statements, available in the Company's Form
10-Q filed with the SEC on November 13, 2012, are an integral part
of these financial statements.
|
SOURCE Longwei Petroleum Investment Holding Ltd.