BEIJING, Jan. 20 /PRNewswire-Asia-FirstCall/ -- Sinoenergy Corporation
(Nasdaq: SNEN) (the "Company") announced today that its independent registered
public accounting firm has included a going concern qualification in its
report on the Company's financial statements for the year ended September 30,
2009. For the year ended September 30, 2009, the Company incurred a
substantial operating and net loss, and, as of September 30, 2009, the Company
had negative working capital of approximately $9.1 million. Furthermore, the
Company has incurred a substantial amount of bank debt and other term debt
that it is contractually obligated to pay in the near term, and the Company's
ability to meet these obligations is dependent upon certain factors outside of
the Company's control. The Company has limited financial resources to obtain
and sustain profitability and positive cash flows. Historically, the Company
has been highly dependent on external debt sources to fund its business growth
and operations. Achievement of its objectives will be dependent upon continued
external financing, as to which there is no guarantee. Achievement of the
Company's objectives will also be dependent upon its ability to obtain a
larger and more stable customer base, penetrating greater into markets for its
higher margin products, continuing to expand its CNG station operations to
achieve economies of scale in greater volume sales, and increasing profit
margins and achieving other benefits from the future operations of the new
PetroChina pipeline. The Company believes that it has borrowing capacity and
will be able to borrow from major banks in China to finance its working
capital deficit and fund its daily operations and other working capital needs.
Management is pursuing a number of activities to address the Company's
immediate liquidity needs, including the discussions with its banks for the
restructuring or refinancing of loans, discussions with other debt or equity
sources, cutting costs and seeking other means to improve operating
efficiencies.
For the year ended September 30, 2009, the Company sustained a net loss of
$13.1 million, of $0.82 per share (basic and diluted) on net sales of $41.8
million, as compared with net income of $16.1 million or $1.02 per share
(basic) and $0.98 per share (diluted) for the year ended September 30, 2008.
About Sinoenergy
Sinoenergy is a developer and operator of retail CNG stations as well as a
manufacturer of CNG transport truck trailers, CNG station equipment, and
natural gas fuel conversion kits for automobiles, in China. In addition to its
CNG related products and services, the Company designs and manufactures a wide
variety of customized pressure containers for use in the petroleum and
chemical industries. The Company's website is
http://www.sinoenergycorporation.com . Information on the Company's website or
any other website does not constitute a portion of this press release.
Forward-Looking Statements
This release contains certain "forward-looking statements" relating to the
business of the Company and its subsidiaries. These forward looking statements
are often identified by the use of forward-looking terminology such as
"believes," "expects" or similar expressions. Such forward looking statements
involve known and unknown risks and uncertainties that may cause actual
results to be materially different from those described herein as anticipated,
believed, estimated or expected. Investors should not place undue reliance on
these forward-looking statements, which speak only as of the date of this
press release. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic reports that are
filed with the Securities and Exchange Commission and available on its website
( http://www.sec.gov ). All forward-looking statements attributable to the
Company or to persons acting on its behalf are expressly qualified in their
entirety by these factors other than as required under the securities laws.
The Company does not assume a duty to update these forward-looking statements.
For further information, please contact:
Selina Tang
IR Manager
Sinoenergy Corporation
Tel: +86-10-8492-7035 x832
Email: tys@sinoenergycorporation.com
SOURCE Sinoenergy Corporation