NINGBO, China, April 1, 2011 /PRNewswire-Asia-FirstCall/ --
Keyuan Petrochemicals, Inc. (Nasdaq: KEYP) ("Keyuan or the
"Company"), a leading merchant manufacturer of various
petrochemical products in China,
today announced that it has not completed its 2010 consolidated
financial statements by the March 31,
2011 deadline. The Company has applied for an extension with
the SEC and is required to file the Annual Report by April 15, 2011.
The Company will reschedule its earnings conference call to
align with the revised reporting date. Details regarding the
earnings announcement and conference call will be provided at the
appropriate time.
Mr. Chungfeng Tao, Chairman and Chief Executive Officer of
Keyuan explained, "Keyuan transitioned to a "Big 4" accounting firm
as our auditor in January 2011. The Company believes that
this is an appropriate and necessary step given our desire to
satisfy the heightened expectations of our investors.
The internal accounting team has worked diligently to complete all
necessary field work in a timely manner, but has not been able to
complete preparation of the financial statements, and management
therefore has not completed its review of the consolidated
financial statements.
In addition, the accounting review conducted to date has
identified various concerns that have prompted the Company's Audit
Committee to undertake an independent investigation, which must be
concluded before the Company will be able to complete its
preparation and review of its 2010 consolidated financial
statements. The concerns were primarily related to
unexplained issues of certain cash transactions and recorded sales.
The audit committee has engaged Pillsbury Winthrop Shaw Pittman
LLP as its independent legal counsel, and such counsel will
engage a separate independent accounting firm to assist in the
investigation. Management is fully cooperating with the audit
committee and will furnish all necessary materials. Management
believes that this comprehensive review by the independent
investigation will solidify our internal reporting processes and
provide more confidence to investors and shareholders, and further
hopes that the issues raised will be resolved to the satisfaction
of both the audit committee and the auditors. However, there
can be no assurance that these matters will be satisfactory
completed by April 15, 2011, or that
we will be able to file the Form 10-K Annual Report by such date.
The audit committee is working as quickly as possible to complete
the investigation, but at this time we don't know the timing.
As soon as the filings are made, a press release and conference
will be held. As a result of the delay in the filing and
investigation by the audit committee, the Company requested a
trading halt from NASDAQ."
"The Company would like to reiterate that we will pay our first
quarterly dividend of $0.09 per share
to shareholders of record as of March 1,
2011, with the distribution occurring on April 15, 2011," Mr. Tao concluded.
About Keyuan Petrochemicals, Inc.
Keyuan Petrochemicals, Inc., established in 2007 and operating
through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is
located in Ningbo, China and is a
leading independent manufacturer and supplier of various
petrochemical products. Having commenced production in October 2009, Keyuan's operations include an
annual petrochemical manufacturing design capacity of
550,000 MT for a variety of
petrochemical products, with facilities for the storage and loading
of raw materials and finished goods, and a technology that supports
the manufacturing process with low raw material costs and high
utilization and yields. In order to meet increasing market demand,
Keyuan plans to expand its manufacturing capacity to include a SBS
production facility, additional storage capacity, a raw material
pre-treatment facility, and an asphalt production facility.
Safe Harbor Statement
This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. For
example, statements about the future use of the proceeds are
forward looking and subject to risks. Keyuan Petrochemicals, Inc.
may also make written or oral forward-looking statements in its
periodic reports to the U.S. Securities and Exchange Commission on
forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. A number of important factors
could cause actual results to differ materially from those
contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, risks outlined in
the Company's filings with the U.S. Securities and Exchange
Commission, including its registration statement on Form S-1, as
amended. The Company does not undertake any obligation to update
any forward-looking statement, except as required under applicable
law.
For more information, please
contact:
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Investor Relations:
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HC International, Inc.
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Ted Haberfield
Executive VP
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Tel: +1-760-755-2716
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Email:
thaberfield@hcinternational.net
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Website:
http://www.hcinternational.net
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SOURCE Keyuan Petrochemicals Inc.