Company Overview

Longwei Petroleum is one of the leading diesel, gasoline, fuel oiland solvent oil distributors and wholesalers in Taiyuan City, Shanxi Province, P.R. China. The company sells its products mainly to large-scale gas stations, coal plants and power supply companies, and on a smaller scale to small, independent gas stations.

Longwei also owns a railway system to efficiently transport its products to customers, along with storage capacity that it soon plans on expanding to 120,000 metric tons.

Investment Highlights

• Longwei has been granted a Finish Oil Wholesale license by China, which allows them to engage in the wholesale business of fuels, and is extremely difficult to obtain for competition.
  
  
• Longwei recently raised more than $14 million to expand its capacity and increase its operating income in 2010 and beyond in the growing Shanxi Province of China.
  
  
• Longwei is well-established in the fuel distribution wholesale business, having existed since 1995. Over time, the company has earned an excellent reputation for customer service.
  
  
• Shanxi, where Longwei operates, has seen demand for fuel experience double-digit growth in the past several years.

Recent Developments

• October 2009 - Longwei closed a $14.8 million private placement to provide funding for the completion of its Gujiao Oil Depot facility located in Gujiao City, Shanxi Province, China. the company intends to use the proceeds to purchase inventory and ancillary equipment for the facility that is expected to generate $40 million in revenues and $6 million net in 2010.
  
  
• October 2009 - Longwei announced record revenues that increased 37% to $196.8 million and net income that increased 28% to $26.55 million. Meanwhile, book value increased to $1.50 per share and shareholder equity increased 30% to $114.92 million for fiscal 2009.

Investor Relations Contact

Investors interested in learning more should complete the form at the top-right of this page, and may also contact the company's investor relations at the location below:

Dave Gentry
RedChip Companies, Inc.

Phone: 407-644-4256 x104

Email: dave [at] redchip [dot] com