Longwei Petroleum (OTC:LPIH)

 Item 4.01
 
Change in Registrant’s Certifying Accountant.
 
On May 30, 2013, Anderson Bradshaw PLLC (“Anderson Bradshaw”) resigned as Longwei Petroleum Investment Holding Limited’s (the “Company”) independent registered public accounting firm.

During the fiscal years ended June 30, 2012 and 2011, Anderson Bradshaw’s reports on the Company's financial statements did not contain an adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles.

During the fiscal years ended June 30, 2012 and 2011 and the subsequent interim period through May 30, (i) there were no disagreements between the Company and Anderson Bradshaw on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure which, if not resolved to the satisfaction of Anderson Bradshaw would have caused Anderson Bradshaw to make reference to the subject matter of the disagreement in connection with its reports on the Company's financial statements; and  (ii) there were no reportable events as described in paragraph (a)(1)(v) of Item 304 of Regulation S-K except that Anderson Bradshaw stated that its resignation was a result of a limitation on the scope of its work imposed on it by the Company.

On June 4, 2013, the Company provided Anderson Bradshaw with a copy of the disclosures it is making in response to Item 4.01 on this Form 8-K, and has requested that Anderson Bradshaw furnish it with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above statements.  A copy of the letter, dated June 4, 2013, is filed as Exhibit 16.1 (which is incorporated by reference herein) to this Current Report on Form 8-K.

Premium alert sent to members on 1/3/2013

Longwei is reportedly engaged in the wholesale distribution of finished petroleum products in the People’s Republic of China (the “PRC”).   LPH’s headquarters are located in Taiyuan, Shanxi Province, adjacent to and overlooking its Taiyuan fuel storage facility.  LPH has a reported fuel storage capacity of 220,000 metric tons located at three storage facilities within Shanxi: Taiyuan, Gujiao and Huajie, which it claims have individual storage capacities of approximately 50,000 metric tons (“mt”), 70,000mt, and 100,000mt, respectively.  Unfortunately for owners of LPH stock, we have determined that the company’s purported business operations are massively overstated and a brazen fraud, on an order of magnitude unmatched before by any China based companies we have seen.  Furthermore, we have no faith in LPH’s auditor, Anderson Bradshaw. This is because the firm’s head of quality control, Russell Anderson, was the audit partner of YUII while he worked at Child, Van, Wagoner & Bradshaw.  Russell failed to detect the massive YUII fraud we uncovered and did not resign until the YUII Chairman admitted fraud 5 days after we exposed them. Our exposé led to YUII’s delisting.  LPH stock in our opinion is virtually worthless, completely un-investable and should be immediately delisted by the New York Stock Exchange (NYSE). We are sending all of our evidence to the NYSE and other securities regulators, just as we have done in prior cases.

Please see entire report here. 

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TAIYUAN CITY, China, November 5, 2012 /PRNewswire-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced that its first fiscal quarter ended September 30, 2012 sales volume increased 17.8% year-over-year.

For the three-month period ended September 30, 2012, Longwei reported its product sales volume increased 17.8% year-over-year to 110,587 metric tons ("mt") compared to 93,862mt for the three-month period ended September 30, 2011. Fuel prices in the PRC increased in both August and September following three consecutive retail price cuts between May and June due to the fluctuation in the international price of crude oil. The current retail price level for gasoline of RMB 9,640/mt is approximately the same price level as May 2012. The Company began to realize higher average sales prices in September and in this current quarter ended December 31, 2012.

Longwei plans to hold a conference call on November 14, 2012 to discuss its financial results for the first fiscal quarter ended September 30, 2012. The Company will file its Form 10-Q on or before the filing date of November 14, 2012.

"We are pleased to see the up-tick in our sales," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "The volume increase, combined with recent sales price increases and our purchase of the Huajie facility, positions us for strong growth in fiscal 2013."

Apparent oil demand in China, the world's second-largest consumer, will increase by 340,000 barrels a day in 2013 as refiners increase output amid "modest" economic recovery, according to Barclays Plc. "Signs of improvement have emerged and China's underlying oil demand may have bottomed out and begun to recover," said Sijin Cheng, a Barclays Singapore-based analyst, in a research note on October 31, 2012. Apparent oil demand is the sum of production output and net imports of oil products, including diesel and gasoline. China Daily (November 1, 2012).

"The Huajie facility nearly doubles our storage capacity to a total of 220,000 metric tons and extends our reach into the fast growing industrial area of northern Shanxi Province," stated Mr. Cai. "Since opening the facility, we have signed contracts with at least nine major regional industrial companies in mining, steel and logistics, and we are in negotiations with several more."

Longwei expects year-over-year revenue growth of approximately 26.6% to $646.3 million, and net income growth of approximately 24.2% to $77.6 million, adjusted for the warrant derivative liability, for the fiscal year ending June 30, 2013. This growth rate does not account for any external financing for inventory, which could accelerate growth. The growth is driven primarily by the ramp-up of the Huajie facility and organic growth at the Company's two existing facilities.

"The northern Shanxi region's growing industrial and vehicle market demand, combined with our proven ramp-up performance of our Gujiao facility since 2010, which has now grown to account for approximately 48% of our total product sales, or US $233.8 million at fiscal year-end 2012, strengthens our confidence that we can quickly ramp-up sales at the Huajie facility," said Michael Toups, Chief Financial Officer of Longwei.

Longwei is scheduling the date of its annual shareholder meeting to be held during December 2012. The Company also plans to host an investor and analyst day to invite shareholders and interested parties to tour its facilities inJanuary 2013. The Company has received strong interest from institutional and private investors in visiting its facilities, including the new Huajie facility. Once plans are finalized, the Company will release additional details.

The Company recently reported revenues of US $510.6 million and net income of US $65.1 million for the fiscal year ended June 30, 2012. At the June 30, 2012 fiscal year-end, the Company reported total assets of US $342.3 millionand a book value per share of $3.31.

TAIYUAN CITY, China, October 1, 2012 /PRNewswire-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today reported its revenues for July and August 2012 were up 11.1% year-over-year to $88.6 million.

For the two-month period ended August 31, 2012, Longwei reported its product sales volume increased 17.9% year-over-year to 74,908 metric tons ("mt") compared to 63,512mt for the two-month period ended August 31, 2011. On a quarter-over-quarter basis, product sales volume increased 6.1% for the first two-month period of the quarter ended September 30, 2012 compared to the first two-month period of the quarter ended June 30, 2012.

"We are pleased to see an up-tick on our sales volume based on the demand growth at our Taiyuan and Gujiao facilities," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "This increase, combined with our closing on the Huajie facility, positions us for strong growth in fiscal 2013."  Full release.

TAIYUAN, China, September 27, 2012 /PRNewswire-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced that it has finalized the US $110.6 million purchase of the assets of Huajie Petroleum Co., Ltd. ("Huajie"), a fuel storage depot in northern Shanxi Province with a 100,000-metric-ton storage capacity.

Longwei has acquired the assets of Huajie for a total purchase price of RMB 700 million (approximately US $110.6 million). The Company has made a final payment of RMB 150 million (approximately US $23.7 million) to the seller and released the previously paid deposit of RMB 550 million (approximately US $86.9 million) to complete the purchase.

"Closing on the Huajie facility allows us to increase our regional presence and attract new customers," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "We are pleased to have closed on the Huajie asset purchase using our own cash resources without dilution to our shareholders." Full release here.

TAIYUAN CITY, China, September 24, 2012 /PRNewswire-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced that it will complete the purchase of the assets of Huajie Petroleum Co., Ltd. ("Huajie"), a fuel storage depot in northern Shanxi Province with a 100,000-metric-ton storage capacity, by the end of this month.

Longwei will acquire the assets of Huajie for a total purchase price of RMB 700 million (approximately US $110.6 million). The Company has agreed with the seller that the final payment of RMB 150 million (approximately US $23.7 million) will be paid on or before September 30, 2012. The Company currently has paid RMB 550 million (approximately US $86.9 million) on deposit for the purchase.

"We are pleased to close on the Huajie asset purchase without dilution to our shareholders," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "We have chosen to move forward at this time to use our own cash to close on the purchase and put our capital to work now at the new facility."

The Huajie assets are located in Xingyuan Township, Fanshi County (south of the main train station) in northern Shanxi Province, PRC. The assets include fuel storage tanks with a 100,000-metric-ton capacity with accessory facilities and equipment, delivery and distribution platforms, including a dedicated rail spur and a vehicle loading and unloading station. The purchase also includes a 3,000-square-meter office building and land use rights for 98 acres of land adjacent to the main regional rail line. The new facility is in a growing industrial and mining region, approximately 200 kilometers to the north of Taiyuan.

"We have been balancing our working capital to take advantage of petroleum pricing opportunities in the market, as well as balancing the funding required to complete the Huajie purchase," said Michael Toups, Chief Financial Officer of Longwei. "Based on our inventory management and first fiscal quarter 2013 cash flow, we are confident to close the Huajie asset purchase at this time. We were exploring financing options available to us, but decided the economics were not right at this time."

Cai Yongjun, Chairman and Chief Executive Officer of Longwei, stated, "This acquisition nearly doubles our storage capacity to a total of 220,000 metric tons and extends our reach into the fast-growing industrial area of northern Shanxi Province. With the addition of the Huajie facility, we have strengthened our lead as the largest non-state-owned fuel storage and distribution business in the province and are better positioned to capitalize on the demand for petroleum products in our regional market."

"The northern Shanxi region's growing industrial and vehicle market demand, combined with our proven ramp-up performance of our Gujiao facility since 2010, which has now grown to account for approximately 48% of our total product sales, or US $233.8 million, strengthens our confidence that we can quickly ramp up sales at the Huajie facility," stated Mr. Toups.

Fiscal 2012 Results

• Revenues increased 6.0% to $510.6 million, compared with $481.6 million.
• Basic EPS increased to $0.65 per share and Diluted EPS was $0.61 per share, compared to $0.64 per Basic EPS and $0.62 per Diluted EPS for the fiscal year ended June 30, 2011.

"We are pleased to deliver another year of record performance," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "With the continued strong demand for petroleum products in Shanxi Province, revenues and net income reached an all-time high. Once the Huajie Petroleum asset acquisition is completed, we are set to quickly ramp operations at the new facility to drive further growth in the new fiscal year."

TAIYUAN CITY, China, August 6, 2012 /PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced it plans to release its fiscal year-end June 30, 2012 earnings on or before its Form 10-K filing deadline of September 13, 2012. The Company expects to report record revenues and net income for fiscal 2012.

Longwei is currently working with its audit firm to complete its fieldwork in the PRC for the Company's annual audit. On August 1, 2012, the Company's audit firm, Child Van Wagoner & Bradshaw, PLLC ("CVB"), announced it had been reorganized. According to a statement released by the firm's partners, "CVB was reorganized in order for its partners to focus on their core competencies and provide enhanced client service."

CVB has been reorganized into three new firms, each with distinct specialties:

1. Anderson Bradshaw PLLC ("AB") will be the Public Company Accounting Oversight Board ("PCAOB") registered successor firm to CVB and will focus on audits of both public and private companies, and tax services for international and domestic businesses and high-wealth individuals.
2. Child, Van Wagoner and Associates, PLLC will focus on audits of private companies and tax clients.
3. FJ & Associates, PLLC will focus on audits of assisted housing, not for profit, and governmental organizations and tax services for businesses and individuals.

According to the statement from the firm's partners, "We believe this change will give you better service by allowing each of us to focus on what we do best. We expect that client communications will be enhanced and that access to partners will be increased, both for clients and employees."

Since CVB was replaced by AB for purposes of PCAOB registration, each of CVB's SEC issuer clients was required to file a Form 8-K under item 4.01 to reflect a Change in Registrant's Certifying Accountant. AB was established as the successor firm to CVB to continue performing audits for SEC reporting companies. As AB is viewed as a separate legal entity, Longwei was required to dismiss CVB and engage AB as its principal accountant for the Company's fiscal year ended June 30, 2012. The Company filed a Form 8-K on August 3, 2012 to reflect this change. The audit team at AB remains the same from the predecessor firm, CVB.

"We are pleased that our fieldwork and audit are led by the same team as previously with CVB," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "We look forward to releasing our audited financial statements on Form 10-K for fiscal year 2012 and announcing the successful completion to this past fiscal year. We remain committed to improving our level of transparency with our shareholders and look forward to upcoming events to grow the Company in fiscal 2013."

TAIYUAN, China, July 17, 2012 /PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today reported its revenues for its fourth quarter ended June 30, 2012 were up approximately 6% year-over-year to $136 million.

For the 12-month period ended June 30, 2012, Longwei reported its unaudited revenues were up approximately 6% year-over-year to over $510 million. During this period, the retail price of gasoline was adjusted by the National Development and Reform Commission ("NDRC"), the PRC's top economic planning organization, six times during a period of fluctuating international crude oil prices. The most recent retail price adjustments of gasoline in the PRC was downward twice during the fourth quarter, with adjustments in both May and June totaling RMB 860 per metric ton ("mt") (approximately US$136 per mt), or down 8.6% during the fourth quarter compared to the third-quarter high.

LPH previously released guidance for FY2012 of $520 million (or 1.9% higher than actual) for the 12-month period ended June 30, 2012. The Company maintains its net earnings guidance of $64 million. "We are pleased that we are on track with our net earnings guidance for the year, despite the international crude oil price fluctuations," stated Michael Toups, CFO of Longwei. "We continue to manage our business to try to maintain our product profit margins. We have also balanced our cash flow while maintaining an $87 million deposit for the Huajie Petroleum asset purchase and managing our inventory position. We estimate an organic growth rate of approximately 7% to 8% for our two existing facilities this year due to the cooling of the international economic environment and its impact on the PRC. We have tried to make a conservative estimate tied to GDP growth. Our real driver for growth in this new fiscal year ending June 30, 2013 will be the ramp-up of the Huajie Petroleum facility."

TAIYUAN CITY, China, July 3, 2012 /PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced it has received the report (the "Tax Reconciliation Report" or the "Report") from Child, Van Wagoner & Bradshaw, PLLC, Certified Public Accountants ("CVB"), commissioned by the Company's Audit Committee. The Tax Reconciliation Report reviewed the Company's management reports compared to taxes paid and financial statements filed in the PRC with the Company's publicly reported filings with the Securities and Exchange Commission (the "SEC"). CVB is the Company's independent Public Company Accounting Oversight Board qualified audit firm.

CVB performed certain agreed-upon procedures as enumerated in the Tax Reconciliation Report with respect to the Company's PRC operating subsidiary corporate income tax ("CIT") and value added tax ("VAT") filings for the periods beginning July 1, 2009 to March 31, 2012 as filed with the State Administration of Taxation ("SAT"), and its State Administration for Industry and Commerce ("SAIC") filings for the years ended December 31, 2010 and 2011. These procedures, which were agreed upon by the Company, were performed by CVB solely to assist the Company in its comparison of the PRC subsidiary tax filings to its reports filed with the SEC in the United States ("US") under US Generally Accepted Accounting Principles ("US GAAP").

Tax Reconciliation Report - Summary Findings:

1. SAT (CIT and VAT) Filings - No variance in revenues reported under US GAAP.
2. SAIC Income Statement Filings - On a consolidated income statement basis, there is no difference in revenues, and net income has a 1.1% or less difference between the US GAAP and the PRC financial statements and tax filings.
3. SAIC Balance Sheet Filings - On a consolidated balance sheet basis, there is a less than 1% difference in total assets, total liabilities and total stockholders' equity between the US GAAP and the PRC financial statements and tax filings.

Generally, CVB's field work involved independently verifying reported tax payments and filings with tax authorities in the PRC, including direct online access to the SAT secure database to verify CIT and VAT payments and an on-site meeting at the provincial capital's SAIC office in Taiyuan City to observe and obtain stamped copies of the SAIC filings.

The Audit Committee has advised the board that in its view, the findings of the Report further support the integrity of the Company's accounting system and financial reporting in the PRC and the US. The review was detailed, and it is also the view of the board that the Company's processes were shown to be in accordance with good accounting practices.

"We are pleased the findings in the Report confirm our continued efforts to deliver good financial reporting and transparency for our shareholders," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "We look forward to reporting strong fiscal 2012 results and completing the acquisition of the Huajie Petroleum assets as a further catalyst for our growth in fiscal 2013."

The procedures and findings of the Tax Reconciliation Report can be found on the Company's website at www.longweipetroleum.com under the "Investors" section. The report includes the following schedules as exhibits:

1. Schedule A - Sales Revenue Compared between PRC SAT (CIT and VAT) filings to SEC filings
2. Schedule B - List of Quarterly SAT - CIT Paid, Including Date, Amount, Voucher No. and Invoice No.
3. Schedule C - List of Monthly SAT - VAT Paid, Including Date, Amount, Voucher No. and Invoice No.
4. Schedule D - Comparison of December 31, 2011 SAIC filings to SEC filings for the same period of Calendar 2011
5. Schedule E - Comparison of December 31, 2010 SAIC filings to SEC filings for the same period of Calendar 2010

TAIYUAN CITY, China, June 26, 2012 /PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today reported its revenues for April and May 2012 were up 4.6% year-over-year to $89.0 million.

For the eleven-month period ended May 31, 2012, Longwei reported its revenues were up 5.6% year-over-year to $463.2 million. During this period the retail price of gasoline was adjusted by the National Development and Reform Commission ("NDRC"), the PRC's top economic planning organization, five times during a period of fluctuating international crude oil prices. The retail price of gasoline in the PRC has been adjusted upward twice and downward three times for different durations of time during the Company's fiscal 2012. While the Company's overall sales price per metric ton has gone up year-over-year because of the longer periods at higher prices, the net effect of the retail price changes is that gasoline prices for the PRC consumer are now 2.8% lower than at June 30, 2011.

Brent crude oil, one of the primary components in the basket of crude oil prices used by the NDRC to determine the retail price of gasoline in the PRC, is currently trading near 18-month lows of approximately US $90 per barrel. Brent crude oil's most recent peak was approximately US $128 per barrel in early March 2012. (Reuters, June 21, 2012, "Oil Falls Below $90 for the First Time Since December 2010.")

The Company continues to use its working capital to increase its inventory position and product availability based on the current changes in the market price. "We are balancing our working capital to take advantage of pricing opportunities, as well as balancing the funding required to complete the acquisition of the Huajie Petroleum assets," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "We look forward to finalizing the Huajie Petroleum asset purchase, which will add another 100,000 metric tons to our storage capacity and solidify our position as one of the largest private fuel distributors in the PRC."

Longwei has also reported that its independent auditor, Child, Van Wagoner & Bradshaw, PLLC, Certified Public Accountants ("CVB"), has completed its field work in Taiyuan City for the tax reconciliation report commissioned by the Company's Audit Committee (the "Tax Reconciliation Report"). CVB is Longwei's Public Company Accounting Oversight Board qualified independent auditor with offices in the U.S. and Hong Kong. As part of the Tax Reconciliation Report, CVB has, among other things, reviewed the Company's management reports and independently obtained information related to income tax and value added tax filings with the PRC's State Administration of Taxation ("SAT"), as well as filings with the PRC's State Administration of Industry and Commerce ("SAIC"). The verification procedures included independent access granted to CVB of the SAT tax system information and a site visit to the local SAIC office in the provincial capital of Taiyuan City to directly obtain Company filings. The Company anticipates receiving the final Tax Reconciliation Report from CVB in July 2012.

Third Quarter Fiscal Year 2012 Financial Highlights:

• Revenues increased 8.1% to $129.2 million, compared with $119.6 million.
• The Company's Taiyuan and Gujiao fuel storage facilities contributed revenues of $60.6 million and $64.3 million, respectively. Agency fees contributed $4.4 million to revenues.
• Current Assets increased $48.2 million or 33.8% to $190.8 million at March 31, 2012, compared with $142.6 million at June 30, 2011. The Company also maintained a deposit of $87.0 million paid in cash generated through operations toward the purchase price of $110.1 million for the assets of Huajie Petroleum.
• Stockholders' Equity increased $54.3 million or 20.1% to $316.0 million at March 31, 2012, compared with$261.7 million at June 30, 2011.

"Our two facilities continue to generate solid sales," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "Although rising fuel prices and the slow reaction of retail price increases implemented by the PRC impacted our margins during the third quarter, our earnings remain strong and we are well positioned for growth. We are working to finalize the Huajie Petroleum asset purchase, which will add another 100,000 metric tons to our storage capacity. As the largest private fuel distributor in Shanxi Province, we will continue to benefit from China's growing demand for petroleum products."

2012 Financial Outlook

Based on slower volume sales and price fluctuations in international crude oil prices, as well as the PRC retail petroleum price fluctuations, the Company has adjusted its fiscal year end revenue and earnings guidance originally set in August 2011. The Company estimates it will generate revenues of approximately $520.0 million and net income of approximately $64.0 million (adjusted net of non-cash warrant derivative liability expenses) for the fiscal year ending June 30, 2012. The annual guidance is 8.0% ahead of last year's audited fiscal year end revenues of $481.6 million and in line with fiscal 2012 net income. Previous fiscal 2012 guidance was set beforeChina's economy started slowing late last year following the PRC government's efforts to cool inflation and deflate a housing boom in the country. During this timeframe the Company also declined certain sales opportunities to maintain its margins during a period of rising inventory costs, as well as carefully managed its cash flow due to the large deposit paid for the Huajie Petroleum assets. The deposit of $87.0 million has been paid in cash generated through operations.

Economic indicators now show China's economic growth may have recently bottomed out and is starting to bounce back. A government reading on the manufacturing sector has recently shown improvement, as has an Organization for Economic Cooperation and Development ("OECD") forecast of future economic activity. OECD is an index of leading indicators and has estimated that China's economy has "regained momentum." According to UBS economist Tao Wang, "Looking ahead, there are already signs of stabilization and improvement." The Chinese government is now aiming for economic growth of 7.5% in 2012, lower than its goal for last year of about 8%. The World Bank predicts the Chinese economy will slow to an 8.2% growth rate this year but rebound to 8.6% in 2013. (CNNMoney, April 13, 2012).

"The International Energy Agency expects China to account for almost half of the world's oil demand growth over the next five years," stated Michael Toups, Chief Financial Officer of Longwei. "We expect strong long-term revenue and earnings growth as China's increasing industrialization continues to drive demand for fuel products. To meet this demand, we are continuing to work toward the closing of the Huajie asset acquisition. We remain focused on executing our business strategy, and we believe our commitment to achieving strong operational results will result in improved shareholder value."

TAIYUAN CITY, China, April 18, 2012 /PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), has updated its corporate website with current photos and video from its facilities, including the Huajie Petroleum assets that are currently under a purchase contract for acquisition by the Company.

The Company has uploaded new photos of its two existing fuel storage depots in Taiyuan and Gujiao, as well as the Huajie Petroleum facility assets. The Company and the seller are working toward a closing on the new facility, which has 100,000 metric tons of storage capacity and almost doubles the size of the Company's current storage capacity.

In a press release dated March 15, 2012, Longwei announced new shareholder communication initiatives aimed at enhancing the Company's level of transparency with shareholders. As part of that program, the Company has recently updated its corporate website at http://www.longweipetroleum.com. Photos of the three facilities can be seen on the Operations section of the website. These photos include aerial photos and GPS coordinates from Google Maps and the Chinese map site http://www.tianditu.cn. The Company intends to update its corporate website with new photos and videos to reflect any changes to its facilities or business activities.

"We fully stand behind our commitment to improve our level of transparency and communication with shareholders," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "We encourage shareholders who have a strong interest in the Company to schedule a one-on-one meeting with our executives at investors' conferences such as the RedChip Small-Cap New York Conference on Thursday, April 26, 2012 at the Harvard Club of New York City. We also welcome shareholders to make arrangements for an on-site visit of our facilities."

TAIYUAN CITY, China, March 22, 2012 /PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), announced today that it expects to benefit from the gasoline and diesel price increase enacted by China's National Development and Reform Commission ("NDRC") on March 20, 2012. The retail prices for fuel were raised for the second time this year, increasing 6.5% for gasoline and 7% for diesel, amid rising world crude prices and falling domestic inflation.

The increase of RMB 600 (approximately USD $95) per metric ton, the second increase in the past two months, is based on a pricing mechanism that allows the NDRC to adjust fuel prices when the cost of crude oil changes by more than 4 percent over a period of 22 working days. After the price increase, average diesel and 90-octane gasoline prices in the PRC will be approximately $4.62 and $4.43 per gallon, respectively. This compares to average fuel prices in the United States for diesel and mid-grade gasoline of $4.15 and $4.00 per gallon, respectively, according to the American Automobile Association ("AAA").

The PRC, the world's second-largest oil consumer, reported an overseas oil dependence ratio of 56% in 2011, according to the China Daily. "With rampant consumption in the spring ploughing season about to come and [the] volatile situation in the Middle East persisting, adjusting fuel prices in a timely manner was an important way to ensure domestic market supply and national energy security," the NDRC stated in a news release regarding the price increase.

"We have been using our working capital primarily to increase inventory and product availability based on anticipated price increases," stated Cai Yongjun, Chairman and CEO of Longwei. "We have been balancing our working capital to take advantage of pricing opportunities to improve margins, as well as balancing the funding required to complete our acquisition of the Huajie Petroleum assets."

At December 31, 2011 the Company had increased its combined balance of inventory on-hand and advances to suppliers by USD $24.2 million or 22.2% to $133.5 million since its fiscal year-end on June 30, 2011. Based on its inventory on-hand product mix of 58,738 metric tons (approximately 19.4 million gallons) of petroleum, the Company's retail inventory value at December 31, 2011 would have increased by approximately USD $5.6 million considering the recent price increase. Longwei also had USD $74.6 million in advances to suppliers at December 31, 2011, which allows the Company to lock in supply and pricing with refineries so that it can react quickly for purchases based on the timing of international crude oil price fluctuations and the PRC retail pricing adjustments.

"We will continue to operate within our business model, which we believe gives us a competitive advantage. By utilizing our large storage capacity and advances to suppliers, we are able to adjust inventory levels based on the anticipated movement of industry pricing, which acts as a hedge on pricing levels," stated Michael Toups, CFO of Longwei. "Utilizing our excess storage capacity allows us flexibility to take advantage of pricing, supply and demand fluctuations within the marketplace."

"The NDRC's decision will enable us to raise prices of our petroleum products, which we anticipate will have a positive effect on our revenues and profits going forward," stated Mr. Cai. "We also expect to experience a slight gross margin improvement, as our inventory on-hand is recorded on a weighted average basis and will be sold at higher market prices."

TAIYUAN CITY, China, March 15, 2012 PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced shareholder communication initiatives, including a planned reconciliation of its Securities and Exchange Commission ("SEC") filings and PRC tax filings.

"2011 was a challenging year for U.S.-listed PRC small-cap companies, but we continue to stay focused on achieving strong operational results and have positioned the Company for strategic growth within our region in 2012," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "After months of gathering and reviewing questions and suggestions from our investors and analysts, we have decided to implement several communication initiatives to improve our level of transparency with our shareholders. We hope this will be a catalyst to boost shareholders' confidence in our Company and lead to an improved earnings multiple that reflects our operating performance."

First, the Audit Committee has engaged the Company's independent PCAOB audit firm, Child, Van Wagoner & Bradshaw, PLLC, to verify and attest to the accuracy of the reconciliation of the Company's financial statements filed with the SEC to its reports filed with the relevant PRC government tax authorities, including the State Administration of Taxation ("SAT").

The SAT is the ministry-level department within the PRC government responsible for the collection of taxes and enforcement of the PRC's revenue laws. The Company's PRC tax reports are prepared in accordance with PRC accounting rules and policies, and reflect financial information relating to each operating subsidiary on an unconsolidated basis. Accordingly, there are certain intercompany and U.S. GAAP adjustments that are made to the financial statements during the U.S. GAAP consolidation that are appropriately not reflected in the PRC tax filings. These adjustments generally include intercompany sales, costs incurred by offshore holding companies, and U.S. GAAP non-cash adjustments such as entries related to offshore financing transactions, and valuation of related debt, equity and derivative instruments based in the equity of the offshore holding corporations. In summary, there are legitimate, and often material, reconciling items that must be taken into consideration when bridging from PRC tax reports to U.S. GAAP reported financial results.

The Company's subsidiaries make quarterly estimated income tax payments throughout the year based on operating results and then file an income tax return after the calendar year-end (December 31) with the SAT to true-up any amounts owed. The SAT report is a calendar year-end report, while the Company reports its SEC filings on a fiscal year-end basis as of June 30. Based on the Company's preliminary reconciliation results, giving effect to adjustments, management estimates the results contained in Longwei's tax reports are consistent with results reported in the Company's U.S. GAAP audited financial statements as filed with the SEC.

The Company recently completed its full-year tax filing for calendar year 2011 and is working with its auditor to independently obtain a certified copy of the tax filing from the SAT. Once the auditor completes a review of the documentation and reconciliation procedures, the Company will publish the reconciliation.

Second Quarter 2012 Results

• Revenues increased 5.2% to $126.4 million, compared with $120.2 million.
• Basic and Diluted Earnings per Share ("EPS") increased to $0.15 per share for the three months ended December 31, 2011, compared to $0.10 per Basic EPS and $0.09 per Diluted EPS for the three months ended December 31, 2010.
• Non-GAAP EPS were flat $0.16.

"We delivered another quarter of solid operating results, highlighted by a 130% increase in net income year-over-year for the six months ended December 31, 2011," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "Given the demand for petroleum products in China, we expect revenue and earnings growth to increase as we enter the second half of our fiscal year. The Huajie Petroleum asset purchase, once completed, will provide an additional catalyst for potential growth by nearly doubling our storage capacity and expanding our footprint in central China. We believe our strong market position and proven business model will result in long-term sales and earnings growth."

2012 Financial Outlook

Based on forecasted volume improvement and expected price increases, the Company maintains its current guidance for fiscal 2012. The Company anticipates revenues of approximately $576 million with net income of approximately $78 million (adjusted net of non-cash warrant derivative liability expense) for the fiscal year ending June 30, 2012. The Company will update its fiscal 2012 guidance to reflect its purchase of the assets of Huajie Petroleum Co., Ltd. once the asset purchase is closed and online.

The assets of Huajie Petroleum Co., Ltd. include commercial licenses, land use rights for 98 acres of land, 100,000-tonnage fuel tanks with accessory facilities and equipment, a special transportation railway line, and a 3,000-square-meter office building. To date Longwei has paid a RMB 550 million (approximately $86.5 million USD) deposit toward the total purchase price of RMB 700 million (approximately $110.1 million USD).

"The Energy Information Administration projects that China's oil-product demand will grow 4.3% this year to reach 9.9 million barrels per day," stated Mr. Toups. "Rising car ownership and industrialization in the PRC continue to drive energy demand growth, creating an ideal climate for us to acquire new customers. The Huajie Petroleum asset purchase remains an important element in our expansion plans, and we are working to finalize the transaction as soon as possible."

First Quarter 2012 Results

• Revenues increased 4.7% to $118.6 million, compared with $113.3 million. 
• GAAP Net Income Attributable to Common Shareholders increased 272.6% to $17.8 million, compared with $4.9 million.
• Basic and Diluted Earnings per Share ("EPS") increased to $0.18 per share for the three months ended September 30, 2011, compared to $0.05 per Basic and Diluted Share for the three months ended September 30, 2010.

Business Update

Fiscal Year 2011 Financial Highlights: (Year-over-Year Results)

• Revenues increased 40% to $481.6 million, compared with $343.2 million.
• Operating Income increased 42% to $91.7 million, compared with $64.4 million.
• Non-GAAP* Net Income Attributable to Common Shareholders increased 44% to $68.0 million, compared to $47.2 million.
• Non-GAAP* Basic Earnings per Share ("EPS") increased to $0.69 per share and Diluted EPS to $0.67 per share, compared to $0.55 per share basic and $0.50 diluted EPS for the fiscal year ended June 30, 2010.
• GAAP Net Income Attributable to Common Shareholders increased 52% to $62.5 million, compared with $41.1 million.
• Basic Earnings per Share ("EPS") increased to $0.64 per share and Diluted EPS to $0.61 per share, compared to $0.48 per share basic and $0.43 diluted EPS for the fiscal year ended June 30, 2010.
• The Company's Taiyuan and Gujiao fuel storage facilities contributed revenues of $269.7 million and $188.3 million, respectively. Agency fees contributed $23.5 million to revenues.
• Stockholders' Equity increased $83.9 million to $261.7 million, compared with $177.8 million

(*Non-GAAP adjustment net of non-cash derivative charge)

"We are pleased to report another year of record financial performance," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "Our operations remain strong, and we once again achieved robust year-over-year top and bottom line growth. Our Gujiao facility contributed nearly 40% of total revenues during fiscal 2011, its first full year of operations. We hope to replicate the success of the Gujiao acquisition with our upcoming Huajie Petroleum asset purchase, which will nearly double our storage capacity upon its completion. We have paid 81% of the total RMB 700 million (approximately $108.3 million USD) purchase price to date and expect to close the transaction during our second fiscal quarter. We firmly believe the Company is well positioned to capitalize on the continued rising demand for oil in China, and the addition of the new facility assets will further accelerate our revenue and earnings growth in fiscal 2012."

2012 Financial Outlook

The Company maintains its current guidance for fiscal 2012. The Company anticipates

• revenues of approximately $576 million
• net income of approximately $78 million (adjusted net of non-cash warrant derivative liability expense) for the fiscal year ending June 30, 2012.

The Company will update its fiscal 2012 guidance to reflect its purchase of the assets of Huajie Petroleum Co., Ltd. once the asset purchase is closed and online, which the Company anticipates during the second fiscal quarter. Longwei expects the facility to contribute approximately $300 million to revenues and $40 million to net income during the first 12 months of operations.

According to a November 2010 report by the U.S. Energy Information Administration, China's oil consumption will continue to rise in 2011 and 2012, with oil demand expected to reach 9.6 million barrels per day in 2011 and almost double to 17 million barrels per day by 2035. The PRC was also named the top global energy consumer in a recent report from the International Energy Agency.  

Michael Toups, CFO of Longwei, stated, "Oil consumption in China is continuing to grow, and the rapid urbanization and burgeoning automobile market remain major growth drivers for our business. In the year ahead, we will continue to focus on expanding our customer base and improving inventory management. We expect both of our existing facilities to continue generating s

TAIYUAN CITY, China, July 8, 2011 /PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced that it has increased its deposit to RMB 550,000,000 (approximately $85.1 million USD) through cash on hand for the purchase of the assets of Huajie Petroleum Co., Ltd. ("Huajie Petroleum" or the "Seller"), a fuel storage depot in northern Shanxi Province with a 100,000-metric-ton storage capacity.

Longwei intends to acquire the assets of Huajie Petroleum for a total of RMB 700 million (approximately $108.3 million USD). The Company and Huajie Petroleum had previously been in discussions to close on the asset purchase by June 30, 2011, at which time Longwei had agreed to pay at least 50% of the total purchase price through cash on hand as a deposit and the Seller would accept a promissory note for the balance of the purchase price. The Parties could not reach a final agreement relating to the terms of the promissory note and have agreed that the Company shall pay the balance of the purchase price, RMB 150,000,000 (approximately$23.2 million USD), by December 31, 2011, at which time the assets will be transferred. As of June 30, 2011, Longwei had paid a RMB 550,000,000 (approximately $85.1 million USD) deposit, or 78.6% of the total purchase price, using cash on hand.

"We did not close on the transfer of ownership of the assets because we believe it is important for the integrity of the transaction to complete the purchase under terms suitable to the Company and our shareholders," stated Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "We intend to close as soon as possible, and we remain committed to not diluting our shareholders in this transaction."

Huajie Petroleum's assets are located in Xingyuan Township, Fanshi County (south of the main train station) in northern Shanxi Province, China. The assets include 100,000-tonnage fuel tanks with accessory facilities and equipment, a special transportation railway line, a 3,000-square-meter office building and land use rights for 98 acres of land adjacent to the main regional rail line. Longwei expects the facility to contribute approximately$300 million to revenues and $40 million to net income during the first 12 months of operations.

"Given the recent investor concerns about acquisitions and asset purchases by Chinese companies, we believed, based on advice from our U.S. counsel and auditor, that it was in the Company's best interest to reach a final agreement on the transfer of assets with a clear transfer of title at closing," stated Michael Toups, Chief Financial Officer of Longwei. "We remain committed to the asset purchase as part of our growth strategy for fiscal 2012 and advanced RMB 335,000,000 (approximately $51.8 million USD) during the quarter endedJune 30, 2011 toward the purchase price."

Cai Yongjun, Chairman and Chief Executive Officer of Longwei, stated, "This acquisition will nearly double our storage capacity to a total of 220,000 metric tons and extend our reach into the fast-growing industrial area of northern Shanxi Province. With the addition of the Huajie facility, we will strengthen our lead as the largest non-state-owned fuel storage and distribution business in the province and will be better positioned to capitalize on the rising demand for petroleum products in our regional market."

Mr. Cai continued, "We will continue to seek accretive acquisitions with the potential to enhance our regional presence and attract new customers. Our distribution model has proven successful, and as we build upon the strong foundation we have established, we remain committed to increasing value for our shareholders."

Rodman and Renshaw on LPH                   7/08/2011

LPH: Acquisition Delayed.

Longwei Petroleum Investment Holding Ltd (LPH) announced today that it has increased the deposit for the purchase of Haujie Petroleum Co., Ltd assets to RMB 550 million ($85.1 million) or 78.6% of the total purchase price. We remind that on March 14, 2011 Longwei signed a letter of intent with Shangxi Jiangtong Chemicals Co., Ltd to acquire the assets of Jiangtong's wholly owned subsidiary Haujie Petroleum Co., Ltd. including 100,000 MT storage tanks, a special transportation railway line, a 3,000-square-meter office building and land use rights for 98 acres of land adjacent to the main regional rail line for RMB 700 million or $108.3 million at the current exchange rate. According to the original agreement, Shangxi Jiangtong Chemicals Co., Ltd would transfer the ownership of the assets upon receiving a cash deposit equivalent to at least 50% of the total purchase price and a promissory note for the outstanding amount. As the two parties could not reach a mutually satisfactory agreement on the terms of the promissory note, the transfer of assets will now be postponed until the time (no later than December 31, 2011) when Longwei pays the remaining balance of RMB 150 million ($23.2 million).

Longwei remains committed to the acquisition of Haujie Petroleum Co. Ltd. assets and plans to use cash on hand or bank financing to complete the acquisition in a timely manner. The delay does not affect our FY11 and FY12 projections which exclude the potential impact from Haujie acquisition. We forecast revenues and adjusted net income (excluding non-cash items) of $500.0 million and $70.0 million or $0.62 per fully diluted share for FY11 (ending June 30, 2011) and $627.2 million and $85.0 million or $0.75 per fully diluted share for FY12, in line with management guidance of, respectively, $500 million and $70 million in FY11 and $625 million and $85 million in FY12.

We continue to view Longwei’s valuation as compelling and reiterate our Market Outperform rating and a $6 price target based on the shares attaining a relatively conservative P/E level of 8x our FY12 fully diluted EPS estimate of $0.75. The stock is currently trading at 2.5x our FY11 fully diluted EPS estimate of $0.62 and 2.0x our FY12 fully diluted EPS estimate of $0.75 and at 1.2x and 1.0x FY11 and FY12 EV/EBITDA multiples compared to respective oil & gas distributors peer group P/E multiples of 18.2x and 13.7x and EV/EBITDA multiples of 10.2x and 9.1x.

Risks: (1) Macroeconomic risk (2) Market risk (3) Commodity risk (4) Execution risk (5) Government regulations.

Notice Regarding Privacy and Confidentiality:

Rodman & Renshaw, LLC reserves the right to monitor and review the content of all e-mail communications sent and/or received by its employees.

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member SIPC.
Member FINRA.

Rodman and Renshaw on LPH                              6/16/2011

A Compelling Value Proposition; Initiating with a Market Outperform Rating and a $6 Price Target

We are initiating coverage of Longwei Petroleum Investment Holding Ltd. (LPH) with a Market Outperform/Speculative Risk rating and a price target of $6 based on the shares attaining a P/E level of 8x our FY12 fully diluted EPS estimate of $0.75. Longwei is a licensed wholesale distributor of gasoline, diesel and other petroleum products with a mature operating infrastructure, the largest storage capacity among privately owned distributors in Shanxi, on-premises railway access and established supplier-client relationships with large mining operations, industrial companies and retail gas stations in the Shanxi province in China. In our opinion, the company presents an exceptional opportunity for value investors looking to get exposure to China’s booming fuel market. We recommend investors purchase the shares at current levels based on: (1) attractive valuation (2) straight-forward business model (3) strong growth potential fueled by the demand for petroleum products and potential strategic acquisitions.

We forecast revenues and adjusted net income (excluding non-cash items) of $500.0 million and $70.0 million or $0.62 per fully diluted share for FY11 (ending June 30, 2011) and $627.2 million and $85.0 million or $0.75 per fully diluted share for FY12, in line with management guidance of, respectively, $500.0 million and $70 million in FY11 and $625 million and $85 million in FY12. There is a potential upside to our forecasts from the announced but yet uncompleted acquisition of Haujie Petroleum Co., Ltd. that could add $300 million the company’s top line and $40 million to the bottom line in FY12 if closed before the current fiscal year end.

Valuation

At 2.1x and 1.8x times our FY11 and FY12 fully diluted adjusted EPS estimates, relative to the oil & gas distributors peer group averages of 18x and 14x, respectively, we consider Longwei valuation compelling even in the currently depressed market for U.S.-listed Chinese companies. We believe Longwei presents an attractive investment opportunity for value players with a long-term time horizon. We are assigning LPH a price target of $6 based on the shares attaining a relatively conservative P/E level of 8x our FY12 fully diluted EPS estimate of $0.75, implying a FY12 EV/EBITDA multiple of 5x.

Risks
(1) Macroeconomic risk (2) Market risk (3) Commodity risk (4) Execution risk (5) Government regulations.


Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

TAIYUAN CITY, China, June 7, 2011 /PRNewswire-Asia/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced the availability of a video tour of Longwei's Taiyuan City and Gujiao operations and an interview with the Company's Chief Executive Officer, Mr. Cai Yongjun, and its Chief Financial Officer, Mr. Michael Toups. The video tour and interview were conducted by Dave Gentry, President of RedChip Companies, Inc., during his recent visit to China.

Highlights of the interview include comments from Mr. Yongjun and Mr. Toups regarding the anticipated acquisition of the assets of Haujie Petroleum Co., Ltd. and discussion of the Company's competitive position, growth strategy and government licenses for the transportation and storage of finished petroleum products. Additionally, Mr. Toups reconfirmed the Company's previously stated guidance for the fiscal year ending June 30, 2011, of $500 million in revenues and $70 million in net income (adjusted for non-cash warrant derivative liability charges).

The video can be viewed at the following link: http://redchip.com/visibility/investor.asp?symbol=lph

Third Quarter Fiscal Year 2011 Financial Highlights: (Year-over-Year, 3-Month Results)

• Revenues increased 23.4% to $119.6 million, compared with $96.9 million.
• Operating Income increased 27.1% to $23.0 million, compared with $18.1 million.
• GAAP Net Income Attributable to Common Shareholders increased 122.0% to $26.4 million, compared to $11.9 million.
• Basic EPS increased to $0.26 per share and diluted EPS to $0.26 per share, compared to $0.14 per share basic and $0.12 diluted EPS for the three months ended March 31, 2010.
• Non-GAAP* Net Income Attributable to Common Shareholders increased to $17.2 million, compared to $7.9 million or EPS of $0.17 vs $0.08.
• Working capital, net of the non-cash warrant derivative liability, increased 39.6%, or $46.2 million, to $163.0 million.  The Company has no long-term debt.
• Tangible book value was $235.8 million, or $2.35 per share, as of March 31, 2011.
• The Company's Taiyuan and Gujiao fuel storage facilities contributed revenues of $63.1 million and $51.3 million, respectively. Agency fees contributed $5.2 million to revenues.

"Our business continues to produce strong year-over-year top and bottom line growth," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "To meet the constant growth in demand for fuel in China, we are in the process of nearly doubling our capacity through the acquisition of the assets of Haujie Petroleum. As of the end of the third quarter our deposit paid has reached $32.8 million, and as previously disclosed, we intend to pay the remaining balance of the purchase price using a combination of cash on hand, bank and other financing, and working capital. If we are unable to secure favorable terms for debt or equity financing, we will complete the purchase using cash on hand.We are very excited about the growth prospects moving forward and fully expect to meet our previous guidance of at least

• $500 million in revenues
• $70 million in net income (adjusted for non-cash warrant derivative liability charges) for the 2011 fiscal year."

TAIYUAN CITY, China, April 27, 2011 /PRNewswire-Asia-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. announced its plan for financing the acquisition of the assets of Haujie Petroleum Co., Ltd. ("Haujie"). The Company has entered into a letter of intent to acquire the assets of a fuel storage depot, with a 100,000 metric ton storage capacity, in northern Shanxi Province for RMB 700 million (approximately US $106.5 million). The Company expects the facility to contribute approximately $300 million to revenues and $40 million to net income during the fiscal year ending June 30, 2012.

Longwei has previously stated that it intends to finance the asset acquisition using a combination of cash on hand, bank and other financing, and working capital assets. To further clarify its plans, the Company has announced that it has increased its deposit paid from approximately US $20 million to US $32.8 million as of March 31, 2011 and will finance at least 50% of the asset acquisition through cash on hand. The balance of the 50% purchase price will be financed through either debt or equity financing. The Company has stated it will not use its common stock to finance more than US $25 million of the asset acquisition price at a per-share price of no less than US $3.00. If the Company cannot establish suitable terms for debt or equity financing, it will complete the purchase price using cash generated through operations.  Longwei intends to close the asset purchase on or before June 30, 2011.

"We are confident in our financing plans and will only issue equity on suitable terms for the Company, creating real value for our shareholders," stated Cai Yongjun, Chairman and Chief Executive Officer of Longwei.  

The Company signed a letter of intent with Shangxi Jiangtong Chemicals Co., Ltd. ("Jiangtong") to acquire the assets of Haujie, Jiangtong's wholly-owned subsidiary, for RMB 700 million (approximately US $106.5 million). The assets of Haujie include land use rights for 98 acres of land, 100,000-tonnage fuel tanks with accessory facilities and equipment, a special transportation railway line, and a 3,000-square-meter office building. The assets are located in Xingyuan Township, Fanshi County (south of the main train station) in northern Shanxi Province, China.

Based on an anticipated 25% minimum annual growth rate in its organic business due to increasing demand and rising prices for finished petroleum products, the Company anticipates that its Taiyuan and Gujiao facilities will contribute $625 million to revenues and $85 million to net income on an adjusted basis for the fiscal year ending June 30, 2012. On a combined basis with the newly acquired assets, total revenues for the fiscal year ending June 30, 2012 are anticipated to be approximately $925 million and net income to be $125 million, adjusted net of non-cash warrant derivative liability expense.

"We are staying in line with our business model to expand capacity and become a dominant player in the market," statedMichael Toups, Chief Financial Officer of Longwei. "The acquisition of the assets of Haujie Petroleum nearly doubles our current storage capacity to a total of 220,000 metric tons and solidifies our footprint in the region. We are looking to replicate the success of our 2009 acquisition of the Gujiao facility, which now accounts for approximately 40% of our total revenues.

Longwei confirms it will not issue equity at current PPS level

TAIYUAN CITY, China, April 15, 2011 /PRNewswire-Asia/ -- Longwei Petroleum Investment Holding Ltd.  today announced that its Chief Financial Officer, Michael Toups, was interviewed by Dave Gentry, President and CEO of RedChip Companies,Inc.

Below is the full transcript of the interview:

Q: Do you think LPH is currently undervalued?

A: We think that any investor that does their homework will find that we are not only trading below our current book value of $1.81 per share, but based on our fiscal year-end June 30, 2011 forecasted adjusted earnings of $0.62 per share, we are also trading at a multiple of approximately 2.75 times our TTM earnings on a fully diluted basis.

Q: Investors are concerned about the potential dilution in a future financing needed to complete the acquisition of the assets of Haujie Petroleum. Please comment.

A: The Chairman has stated the Company will not participate in an equity financing at current price per share levels. As you know, Mr. Cai is the largest shareholder and understands the value of the stock. As previously stated we intend to use cash on hand, bank and other financing, and working capital assets to finance the acquisition.

Q: Is there a deadline for when you need to complete your financing to make the acquisition of the assets of Haujie Petroleum?

A: There is no definitive due date at this time to deliver the balance of the purchase price. We have paid a $20 million USD deposit on the approximately $106.5 million USD purchase price. For this reason the owner of the asset acquisition target has been accommodating and understands that current market conditions are not conducive to an equity financing. Our final agreement is subject to board approval.

Q: Do you think you will get the acquisition done this year?

A: We are very hopeful to get it done this fiscal year. We think the volatility of the stock is temporary. We believe our stock price will recover and trade at a fair market value, which we estimate to be well above the current stock price level.

Q: Do you stand by your previous press release, on March 14, 2011, that states the acquisition will contribute approximately $300 million in revenue and $40 million in net income in fiscal 2012?

A: Yes, if we can complete the acquisition before fiscal year-end June 30, 2011, we are confident in this guidance. In our opinion, investors need to take the long view on Longwei, excuse the pun. This acquisition will be a game-changer in all respects. With this acquisition, we almost double our capacity and are on our way to becoming a $1 billion revenue company. We believe patient investors will do quite well in the long term and are hopeful that in the short term we will see the stock recover to previous levels quickly.

Q: With slower growth anticipated for China, will this reduce demand for your products?

A: The Shanxi Province is one of the fastest developing industrial areas in the country and is growing faster than China's GDP. Overall, China is still the fastest growing major economy in the world and is now the second largest globally. Its appetite for fuel to power factories and to fuel automobiles will only increase. According to the U.S. Energy Information Administration, China is expected to consume approximately 9.6 million barrels of oil per day in 2011 and expects this figure to increase 77% as anticipated consumption grows to 17 million barrels of oil per day by 2035. China is now also the largest new automobile market in the world and added 18 million new vehicles in 2010, up 32% from 13.6 million in 2009.

Q: Have you had discussions about upgrading to a Big Four or Big Six auditor?

A: Yes, this is an issue under review by our board of directors, particularly given the current environment surrounding China small-caps. In fact, we have had preliminary discussions with all of these audit firms.

Q: Do you believe you will meet your revenue and earnings guidance for fiscal 2011?

 A: Yes, with less than three months remaining in our fiscal year, we believe we will exceed our target numbers. We projected $500 million in revenues and $70 million in net income [adjusted net of the warrant derivative liability, which is a non-cash expense]. Our improved outlook is based on the fact that China recently announced a 500 RMB increase per metric ton in petroleum prices, which drives up our top and bottom lines. The increase also adds over $2.5 million USD in value to our current inventory.

TAIYUAN CITY, China, Feb. 23, 2011 /PRNewswire-Asia/ -- Longwei Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced that its S-3 Registration Statement, which was filed with the SEC on December 13, 2010, has been declared effective as of February 18, 2011. The S-3 Registration Statement included the registration of all outstanding warrants and a $50 million shelf registration.

The effective registration of the Company's warrants associated with its October 2009 financing guarantees that the remaining outstanding warrants will be exercised "for cash" rather than on a cashless basis, which will provide the Company with an additional $26 million in cash when the warrants are fully exercised.

Mr. Cai Yongjun, Chairman and CEO of Longwei, commented, "Rising fuel prices and growing demand continue to confirm our business model. We are looking to significantly expand our footprint in the region, which would drive top-line revenue growth and earnings. The registration of the warrants is for the underlying shares already included in our diluted EPS, which will provide capital for expansion when exercised. The shelf registration included in the S-3 allows us to fulfill the registration-related requirements in advance for up to an additional $50 million so that we are prepared to react quickly to accretive expansion opportunities. We expect any future financing to be under more favorable conditions when compared to our earlier round of financing in October 2009."

Based on our current operations, we do not anticipate the purchase or sale of any significant equipment or expect any significant additions to the number of our employees.

We expect to continue to expand our customer base utilizing our existing distribution platform.  Our strategy is to leverage our customer and supplier relationships to develop additional business.  We may also look for opportunities to expand our business that we consider accretive to earnings.

We will continue to operate within our business model, which allows us a competitive advantage by utilizing our large storage capacity to adjust inventory levels based on the anticipated movement of industry pricing and acts as a hedge on pricing levels.  Utilizing our excess storage capacity allows us flexibility to take advantage of pricing, supply and demand fluctuations within the marketplace.  Our supplier advance balance with refineries allows us to lock-in supply so that we can react quickly to purchases based on the timing of the PRC pricing levels adjustments

Second Quarter Fiscal Year 2011 Financial Highlights:  (Year-over-Year, 3-Month Results)

• Revenues increased 69% to $120.2 million, compared with $71.2 million.

• Operating Income increased 69% to $22.1 million, compared with $13.1 million.

• GAAP Net Income Attributable to Common Shareholders increased to $14.1 million, compared to a net loss of $12.4 million.

• Basic EPS increased to $0.15 per share and diluted EPS to $0.12 per share, compared to a loss of $0.15 per share (basic and diluted EPS) for the three months ended December 31, 2009.

• Non-GAAP* Net Income Attributable to Common Shareholders increased to $16.3 million, compared to $0.85 million.

"Our business has never been stronger, as demonstrated by our record revenue and earnings results," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "Revenues for the quarter were at an all-time high, and both our top and bottom lines showed very strong growth year-over-year. We recently renewed our supply contracts with fifteen major customers, and we plan to increase our storage capacity in the current calendar year to meet the constant growth in demand for fuel in China. We are very excited about the growth prospects in our regional market and fully expect to meet our previous guidance of at least:

• $500 million in revenues
• $70 million in net income (adjusted for non-cash warrant derivative liability charges) for the 2011 fiscal year."

During the first two months of the fiscal second quarter ended December 31, 2010, Longwei generated $79.7 million in revenues, a year-over-year increase of 69% from $47.1 million for the same period in 2009. The table below provides highlights (in USD millions) for the comparative two-month periods:

"We are very pleased with our financial performance this quarter as our customers' demand for petroleum products continues to grow," said Cai Yongjun, President and CEO of Longwei. "We are now enjoying the benefits of having our Gujiao facility open for a year. The advantage of our large storage capacity and proximity to our customers allows us to better serve their needs. We have established a reputation for having product on-hand, and we can deliver on a timely basis to support our customers' growth."

• Revenues for the fiscal year ended June 30, 2010 totaled $343 million, a 72% increase from fiscal 2009 revenues of $197 million.
• The Company has forecasted revenues exceeding $500 million for the fiscal year ended June 30, 2011, a 46% increase from fiscal 2010.
• Revenues for the first five months of fiscal 2011 increased 81% year-over-year to $193.0 million, up from $106.6 million for the first five months of fiscal 2010. The increase is primarily due to the contribution of the Gujiao facility and strong customer demand.

"The outlook for our industry and the economic environment is promising, as both the industrial and vehicle markets grow in our region," said Michael Toups, CFO of Longwei. "We are actively exploring strategic opportunities to take advantage of this growth in the marketplace. Our last acquisition has proven to be very successful, and we want to be well-positioned to expand our distribution base to support the growing demand."

First Quarter Fiscal Year 2011 Financial Highlights:

• Revenues increased 91% to $113.3 million, compared with $59.4 million

• Operating Income increased 86% to $20.5 million, compared with $11.1 million

• Adjusted* Net Income increased 84% to $15.2 million, compared to $8.3 million

• Adjusted* Basic EPS increased to $0.16 per share and Diluted EPS to $0.13 per share, compared to $0.10 per share (Basic and Diluted EPS) for the three months ended September 30 2010

"We experienced another record quarter of revenue growth and operating profits. The non-cash charge for the change in the warrant derivative liability related to our October 2009 financing and has no impact on our operations," stated Michael Toups, CFO of Longwei. "We have continued to improve our working capital management to enhance our inventory level flexibility and purchasing capability to react to changes in market prices. We are experiencing strong demand from our growing customer base."

"We continue to post very strong operating results," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "Our performance remains on-track as we continue to add new customers, as well as the organic growth of our existing customer base due to the strong domestic petroleum demand from both industrial and consumer customers. We expect fiscal 2011 to be another record year as we continue to penetrate the market for our products and experience the benefits of a full year of revenue generation from our new Gujiao facility."

Fiscal Year 2010 Financial Highlights:  (Year-over-Year Results)

• Revenues increased 74% to $343.2 million.
  
• Net Income increased 131% to $50.2 million.
  
• EPS increased 39% to $0.39 per Fully Diluted Share.
  
• Adjust EPS increased 61% to $0.45 per Fully Diluted Share. (Adjusted net of derivative and financing expenses)

"I am very pleased with our results for the 2010 fiscal year, especially the quick ramp-up of sales at our Gujiao facility in its first six months of operations," stated Mr. Cai Yongjun, Chairman and CEO of Longwei. "We exceeded our overall revenue guidance of $310.8 million by over 10%, and we generated $50.2 million in net income. We look forward to continued strong demand from both the industrial sector in our region, as well as strong consumer demand from the rapid rise in private automobile usage in China as a whole. We expect fiscal 2011 to be another record year as we continue to penetrate the market for our products and experience the benefits of a full year of revenue generation from the Gujiao facility."