Sinoenergy Corporation Reports Going Concern Qualification in Auditor's Report; Loss of $13.1 Million for the Year Ended Septemb
21 Janeiro 2010 - 12:25AM
PR Newswire (US)
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: DATASOURCE: Sinoenergy Corporation
CONTACT: Selina Tang, IR Manager, Sinoenergy Corporation at
+86-10-8492-7035 x832 or Web site:
http://www.sinoenergycorporation.com/
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