China Integrated Energy (PINK:CBEH)

XI'AN, China, March 28, 2011 /PRNewswire-Asia/ -- China Integrated Energy, Inc. today denied the allegations published in the article written by an author calling himself "Alfred Little." The Company has previously denied and addressed similar and overlapping allegations raised by an individual using the pseudonym "Sinclair Upton".

In order to provide the highest level of transparency to its shareholders, the Audit Committee of the Board of Directors had previously authorized the conduct of an independent investigation into the issues raised by Sinclair Upton. The Committee will ask the investigators also to consider the Alfred Little allegations. The Company intends to pursue all of its rights against the authors of these reports.

XI'AN, China, March 21, 2011 /PRNewswire-Asia/ -- China Integrated Energy, Inc. (Nasdaq: CBEH), a leading non-state-owned integrated energy company in the People's Republic of China, today announced that its Board of Directors has approved the repurchase by the Company of up to $20 million of its shares of common stock over the next 24 months, subject to the Company's blackout period restrictions.

"This share repurchase program reaffirms our ongoing commitment to enhance shareholder value and our confidence in the long-term growth opportunity of our company," said Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy, Inc. "Our business has continued to generate healthy cash flow and we believe that at current levels, our shares represent a compelling investment opportunity."

Fourth Quarter of 2010 Financial Results

• Sales - Fourth quarter 2010 sales were $118.0 million, an increase of 26.6% from $93.3 million in the fourth quarter of 2009

"Our fourth quarter results demonstrate our ability to continue executing on our growth plans by increasing biodiesel production to drive incremental, high margin revenues," stated Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy, Inc. "Sales growth was driven during the quarter by a combination of increased sales volume and higher average selling prices. Biodiesel sales increased 35.7% for the fourth quarter of 2010, compared to the fourth quarter of 2009, while retail gas station sales increased 144.6% due to 3 newly acquired or leased gas stations in 2010, strong consumer demand across 13 stations, as well as higher fuel prices at the pump."

• Net Income – For the quarter ended December 31, 2010, net income was $15.3 million as compared to $12.0 million in the same period of 2009, an increase of $3.3 million, or 28.0%.
• Diluted earnings per share grew to $0.39 from $0.30 in the fourth quarter of 2009.

Based on the strong results recorded for the full year of 2010, management expects to report sales of $588.1 million and net income of $72.2 million for the year ended December 31, 2011.

SUMMARY FINANCIALS

XI'AN, China, Jan. 31, 2011 /PRNewswire-Asia-FirstCall/ -- China Integrated Energy, Inc. (Nasdaq: CBEH; the "Company"), a leading non-state-owned integrated energy company in the People's Republic of China, today announced that it has completed the construction of a new 50,000-ton biodiesel production facility, adjacent to its existing 100,000-ton biodiesel production facility in Tongchuan City, Shaanxi Province.

The new 50,000-ton production facility will bring the Company's total biodiesel production capacity to 200,000 tons per annum. The company operates a 100,000-ton biodiesel plant in Tongchuan City, Shaanxi Province and a 50,000-ton plant in Chongqing City, China.

The total construction cost of the new biodiesel production facility was approximately $19.3 million. $18.3 million has been paid by the Company to date, and the remaining $1 million will be paid in the first quarter of 2011.

The facility is expected to be operating at 25% - 30% capacity in the first quarter of 2011 and 50% - 60% capacity in the second quarter, ramping to 80% - 90% utilization rate in the third quarter. For the full-year 2011, the new facility is expected to contribute approximately $21 million in revenue and $5.2 million in net income.

XI'AN, China, Jan. 27, 2011 /PRNewswire-FirstCall-Asia/ --- China Integrated Energy, Inc., a leading non-state-owned integrated energy company in the People's Republic of China ("PRC"), today announced an update on its expansion plans.

Management is committed to growing all three of the Company's business segments - the production and sale of biodiesel, the wholesale distribution of finished oil and heavy oil products, and the operation of retail gas stations - to support the Company's long term growth strategy. As of September 30, 2010, the Company had cash and cash equivalents of approximately $79.7 million. Together with strong operating cash flow and net proceeds of approximately $37.4 million from two recent capital raises, the Company believes that it has adequate funds to support its growth plans.  In the fourth quarter of 2010, the Company spent a total of $25.7 million for two separate acquisitions that will generate a combined $44.3 million in revenues in 2011.

1. Shenmu gas station: On October 25, 2010, the Company acquired Shenmu gas station in Yulin City, Shaanxi Province, for $9.2 million in cash. Management estimates the Shenmu gas station will generate approximately $12.3 million in revenue in 2011.

Chongqing biodiesel production plant: On October 26, 2010, the Company acquired a 50,000-ton biodiesel production facility, located in Chongqing City, from Chongqing Tianrun Energy Development Co., Ltd., for $16.5 million in cash. Management expects this acquisition to add approximately $32 million in revenue in 2011.

Since commencing production in its 100,000 metric ton (MT) biodiesel production facility in October 2007, China Integrated Energy has grown its biodiesel business steadily.  During the third quarter ended September 30, 2010, revenue generated from the Company's production and sale of biodiesel was $20.3 million, or 19.0% of total sales, with gross margins of 29.8%. With the recent acquisition of the 50,000 MT biodiesel production facility in Chongqing City and the upcoming completion of a new 50,000 MT biodiesel production facility in Tongchuan City, the Company will double its biodiesel production capacity to 200,000 MT per annum.

The Company believes that it has five primary competitive advantages that have contributed to higher and more stable margins in its biodiesel business: 1) a national license to distribute both heavy oil and finished oil including gasoline, petro-diesel and biodiesel; 2) a proprietary and patented production process that enables its existing 100,000-ton production plant to mix a variety of feedstock interchangeably at any ratio to achieve a high conversion rate from the feedstock and to produce high-quality biodiesel, resulting in the efficient usage of the least expensive feedstocks; 3) long-term relationships with local suppliers that have resulted in the Company's ability to secure a steady source of raw materials, including non-edible seed oil, waste cooking oil and vegetable oil residue; 4) certified Chinese B-100 grade of biodiesel, which enables the Company to sell its biodiesel near parity with petro-diesel market prices; and 5) economies of scale.

Auditor Selection

The Company and the Board recognize the market's sensitivity to the Company's auditor selection process.  Our Board places exceptional emphasis on high corporate governance standards. We have been actively reviewing our auditor selection process in the near future.  

Financial Outlook for 2010

The Company reaffirms the newly updated 2010 guidance with

• revenue of $435 million
• net income of $53.5 million

representing an increase of 50.2% and 41.2%, respectively, from 2009.

China's National Energy Administration (NEA) has formulated a development plan for the clean energy industry, which includes wind, solar, biodiesel and nuclear energy, to receive direct investments totaling $738 billion from 2011 to 2020 to promote the development of clean energy industries in order to meet the carbon emissions reduction targets set by the PRC government by 2020.

Third Quarter of 2010 Financial Results, from November 4th, 2010

• Sales - For the third quarter of 2010 sales was $106.8 million, increased by 47.5% from $72.4 million in the third quarter of 2009.. The increase was due to strong market demand for finished oil and heavy oil products, an increase in average selling prices, and increased sales by its existing and five new gas stations added from September 30, 2009 to September 30, 2010.  

• Net Income – For the quarter ended September 30, 2010, net income was $13.7 million as compared to $9.9 million in the same period of 2009, an increase of $3.9 million, or 39.2%.  This increase was attributable to economies of scale combined with rapid growth in revenue from wholesale distribution of finished oil and heavy oil products and operation of retail gas stations segments.

• Diluted earnings per share grew to $0.32 from $0.28 in the third quarter of 2009.

Financial Outlook for 2010  

Based on the strong results recorded in the first nine months of 2010, Management expects to report the following for the full year ended December 31, 2010:

• Sales of $435 million
• Net income of $53.5 million

Guidance includes two months of contribution from the newly-acquired 50,000-ton biodiesel production capacity and Shenmu retail gas station, offset by lower-than-expected contribution from the newly-constructed 50,000-ton biodiesel plant due to the delay in the expected completion date.

On October 26, 2010, NDRC increased the retail selling price of gasoline and diesel by RMB 230 or $34.5 per ton or 3.2% and RMB 220 or $33.0 per ton or 3.4%, respectively, when global crude oil price stayed at $82 per barrel.

Business Outlook for 2010

China Integrated Energy, Inc.'s management plans to focus on growing each of its three businesses - biodiesel production, wholesale distribution, and retail gas stations with a focused expansion on biodiesel segment. On the wholesale distribution and retail side, the Company benefits from its advantageous location, well-established supplier relationships as well as an extensive distribution network that has valuable railway access to reach remote parts of China that other distribution companies cannot currently reach. China Integrated Energy is the only non-state-owned integrated biodiesel producer with a distribution license in China. Including the Shenmu retail gas station acquired on October 19, 2010, the Company operates 13 gas stations surrounding Xi'an city.

The Company is also doubling its current biodiesel production capacity of 100,000 tons to 200,000 tons once the newly-constructed 50,000-ton biodiesel production facility in Tongchuan City, Shaanxi Province commences testing and ramp-up of production in December 2010. The Company anticipates spending approximately $15 million in capital expenditures to accomplish this goal. The Company has secured enough raw materials to supply 150,000 tons of capacity in Tongchuan City, but will also continue to work towards securing more long-term sources of raw materials and new technology in the bio-energy field. On October 22, 2010, the Company executed a definitive agreement to acquire Chongqing Tianrun Energy Development Co., Ltd., a biodiesel production facility with 50,000 tons of biodiesel production capacity. The Company believes that profit margins of the acquired company are similar to its current biodiesel production. The acquisition costs approximately $16.5 million. The Company continues pursuing strategic acquisitions that will quickly provide financial benefits to us. Furthermore, the Company continues to invest in developing new biodiesel production technology to further increase the flexibility in feedstock for its plants and to reduce raw materials costs.

"We are executing well on all phases of the growth strategy we have communicated to shareholders. Through the first nine months of 2010, we have witnessed broad-based growth in each of our three business segments. Our strong balance sheet and cash flows afford us the ability to augment organic growth with timely acquisitions such as the Shenmu retail gas station and Tianrun biodiesel plant. We will continue to gain market share by further penetrating our existing footprint and methodically expanding into new territories with China. With clear competitive advantages, a focused growth strategy, and an experienced management team, China Integrated Energy is well positioned to capture additional growth in the Chinese domestic energy market." Concluded by Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy, Inc.

The foundation of China Integrated Energy's future growth strategy includes expanding and diversifying the Company's base of customers and suppliers for finished oil and heavy oil products, expanding its wholesale and retail distribution network through organic growth and potential acquisitions, while further increasing and enhancing its higher margin biodiesel production capacity.

The Company plans to expand its current biodiesel production capacity of 100,000 tons to 200,000 tons by bringing a new 50,000 ton biodiesel production facility in Tongchuan City online by the end of third quarter and completing an acquisition for 50,000 tons of biodiesel production capacity, which is anticipated to close before or on September 30, 2010. The Company anticipates spending approximately $31.5 million in capital expenditures to accomplish this goal. China Integrated Energy has secured adequate raw materials to accommodate this new capacity, including new feedstocks, and will continue to work towards securing more long-term sources of raw materials.

"We are witnessing the benefits of our strategic growth strategy gain momentum. Our wholesale distribution business continues to benefit from higher demand for all types of oil. By steadily growing sales from existing customers and expanding our distribution network beyond the geographic footprint which encompasses more than 640 million people we reach today, we are poised to gain additional market share. We are currently operating at full capacity with our current 100,000-ton biodiesel production plant and expect to drive incremental growth by adding 100,000 tons of capacity for this high margin, high return business. We will leverage our proprietary biodiesel manufacturing process and new technologies to further improve operating efficiencies and drive margins higher. Our retail gas stations, which historically have benefited from higher retail gas prices set by the NDRC, will maintain a structural cost advantage to our competitors, regardless of where prices are in the future. In conclusion, we are very confident in our ability to successfully execute our growth plan in the short and long term."

Financial Outlook for 2010

For the full year ending December 31, 2010, management now expects revenues of $425 million to $430 million, and net income of $52.0 million to $52.5 million, representing an increase of 46.8% to 48.5% and 37.2% to 38.5% respectively from 2009. Guidance includes an additional 50,000 tons of annual biodiesel manufacturing capacity expected to come online during the fourth quarter of 2010 and the lease of three additional retail gas stations. Management reserves the right to revise guidance in the future.

'We are pleased with our results for the second quarter which was driven by strong growth in our distribution segment and sales from our retail gas stations,' stated Mr. Gao Xincheng, Chief Executive Officer of China Bio Energy Holdings Group. 'We believe that several fundamental factors, including increasing demand for commercial and passenger vehicles and a shortage of domestic oil resources, will continue to drive future revenue and earnings growth for our Company.

Management has reaffirmed 2009 guidance.

Source: PR Newswire (August 11, 2009)

'We are very pleased with our results for the first quarter which was the culmination of strong growth across all three business segments,' stated Mr. Gao Xincheng, Chief Executive Officer of China Bio Energy Holdings Group. 'Despite a current environment of lower oil prices in China and worldwide, we believe that several fundamental factors are firmly in place which will drive future revenue and earnings growth for our Company. These include China's increasing demand for energy to accommodate future organic domestic growth, which will benefit directly from the stimulus plan, an increase in utilization of both consumer and commercial vehicles, a shortage of domestic oil resources and dependence on foreign sources, in addition to government initiatives to increase the utilization rate for alternative fuel while decreasing pollution emissions.'

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b Non-GAAP EPS figures generally exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

^c China Bio Energy did not provide earnings per share guidance. The GeoTeam calculated an implied EPS figure based on a fully diluted share count of 36 million.

^d Guidance includes the addition of 50,000 tons of incremental bio-diesel production capacity expected to come online during Q3 2009 and includes the planned acquisition or lease of additional retail services stations.