China Armco Updates Recycling Business on New Qualification and Orders - China Armco Metals becomes Demonstration Base for Steel Scrap Processing and Distribution in China and may receive tax benefits
SAN MATEO, Calif., Feb. 6, 2013 /PRNewswire/ -- China Armco Metals, Inc. (NYSE MKT: CNAM) ("China Armco" or the "Company"), a distributor of imported metal ore and metal recycler with a new state-of-the-art scrap metal recycling facility in China, today announced that Armco (Lianyungang) Renewable Metals, Inc. ("Armco Lianyungang"), the Company's wholly owned subsidiary, has been certified as a Demonstration Base for Steel Scrap Processing and Distribution by the China Steel Scrap Industrial Associations, and therefore could benefit from a 50% value added tax (VAT) refund in 2013 according to the upcoming policy of the Chinese government.
Armco Lianyungang was selected among steel scrap companies in China upon assessment in respect of scale, equipment conditions, quality and environmental management systems and credit rating etc., pursuant to regulations promulgated by the Ministry of Industry and Information Technology of China in October 2012.
In addition, the Company has so far received orders amounted to approximately 360,000 metric tons of scrap steel for the year of 2013, which accounts for 60% of the Company's annual sales goal for 2013.
"We are confident that we will benefit from the certification as well as the possible tax refund. The tax refund when effective could lower our costs and increase our profits by a large margin, which may ease our capital stress and improve our competitive edge. Also, with the certification we are allowed to act as procurement agency for other uncertified companies, which could boost our domestic purchases and total sales," said Mr. Kexuan Yao, Chairman and CEO of China Armco. "In addition, we had a very good start for 2013 compared to previous years. So far the orders we have received for 2013 are significantly more than the same period of previous years. We believe that we will have a significant increase in sales in 2013."
ABOUT CHINA ARMCO METALS, INC.
China Armco is engaged in the sale and distribution of metal ore and non-ferrous metals and the recycling business in China. China Armco's customers include some of the fastest growing steel producing mills and foundries throughout China. Raw materials are acquired from a group of global suppliers located in various countries, including, but not limited to, Brazil, India, Indonesia, Ukraine and the United States. China Armco has product lines of ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore, steel billet and recycled scrap metals. For more information about China Armco, please visit http://www.armcometals.com.
SAFE HARBOR STATEMENT
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco, is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding our revenues and production related to our scrap metal recycling operations, pricing and demand for our product lines and the extent of government imposed energy and monetary policy restrictions and resulting blackouts and associated impact on our trading and recycling operations.
We caution that actual results could differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. This press release is qualified in its entirety by the following, including, but not limited to, any expectations with respect to the Company's revenues and operations, institution of governmental regulations relating to our businesses and the international economic climate, and the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2011, and our Quarterly Filings on Form 10-Q for the periods ended March 31, 2012, June 30, 2012 and September 30, 2012, respectively.
SOURCE China Armco Metals, Inc.