TAIYUAN CITY, China, Nov. 20 /PRNewswire-Asia-FirstCall/ --

    -- Revenue up 33% Year-over-Year to $59.36 million
    -- Net Income up 31% Year-over-Year to $7.21 million, or $0.09 EPS
    -- Net Income Excluding Non-Cash Fair Value Adjustments Associated with
       Stock Warrants was $8.26 million, or $0.10 EPS
    -- Operating Income up 48% Year-over-Year to $11.06 million

Longwei Petroleum Investment Holding Ltd. (OTC Bulletin Board: LPIH) announced its financial results for the quarterly period ended September 30, 2009.

Mr. Cai Yongjun, chairman and chief executive officer of Longwei Petroleum Investment Holding Ltd., stated: "I am very pleased with our financial results for the first quarter of fiscal 2010. I can also say that plans to have our Gujiao facility fully operational in January 2010 are on track, and the facility is already fulfilling some small but daily customer orders for us at this time. We look forward to strong growth in both Taiyuan and Gujiao during the next several years to come."

The Company reported revenue of $59.36 million for the three-month period ended September 30, 2009, up 33% from $44.48 million for the same three-month period of 2008. The increase was primarily due to certain new customer contracts. The Company continued to expand its customer base, and the pricing of its products continued to follow a trend toward higher, more profitable pricing. The average sales price per metric ton of product the Company sold was $1,142 and $1,014 during the three months ended September 30, 2009 and 2008, respectively.

Costs of sales for the three months ended September 30, 2009 were $47.75 million as compared to $34.84 million for the three months ended September 30, 2008. The increase of $12.92 million, or 37%, was primarily due to the revenue growth resulting from certain new customer contracts. Gross profit was 20% and 22%, respectively, for the three months ended September 30, 2009 and 2008. The average cost basis per metric ton of product the Company sold was $913 and $780 during the three months ended September 30, 2009 and 2008, respectively.

Operating expenses for the three months ended September 30, 2009 amounted to $545,000 as compared to $2.17 million for the three months ended September 30, 2008. The decrease of $1.62 million, or 75%, was primarily due to the curtailing of administrative costs in order to focus resources on the new Gujiao facility's buildout.

Net income grew 31% year-over-year to $7.21 million, or earnings per share of $0.09, up from earnings per share of $0.07 in 2008. Operating income was $11.06 million compared to $7.47 million for 2008, which represents growth of 48% year-over-year.

Chief Financial Officer Jim Crane stated: "We exceeded our internal forecasts for the quarterly reporting period ended September 30, 2009. Revenues were approximately $5.6 million higher than expected due to significant additional sales in August and September, while net income was approximately $600,000 higher than expected. The new facility looks very good and is already active. We are the only licensed non-government operated fuel distributor in Gujiao who also has significant storage capacity. As previously announced, we expect very strong growth in fiscal 2010."

Financial Outlook:

As of September 30, 2009, the Company's current assets were $85.24 million and current liabilities were $7.91 million. Cash and cash equivalents totaled $9.43 million as of September 30, 2009. The Company's shareholders' equity at September 30, 2009 was $121.65 million compared to $114.92 million at June 30, 2009. The Company had cash provided by operating activities for the three months ended September 30, 2009 of $9.57 million compared to cash used in operating activities of $751,000 for the three months ended September 30, 2008. Net cash used in investing activities was $7.64 million for the three months ended September 30, 2009 compared to $0 for the three months ended September 30, 2008. The Company had net cash provided by financing activities of $76,000 for the three months ended September 30, 2009 compared to $0 for the three months ended September 30, 2008.

About Longwei Petroleum Investment Holding Limited

Longwei Petroleum Investment Holding, Limited (the "Company") is an energy company that, through its subsidiaries, engages in oil and gas operations in the People's Republic of China ("PRC"). Oil and gas operations consist of transporting, marketing and selling finished petroleum products. The Company's headquarters and primary facilities are located in Taiyuan City, Shanxi Province ("Shanxi"). The Company's second facility is located in Gujiao, Shanxi. The Company purchases diesel, gasoline, fuel oil and kerosene (the "Products") from various petroleum refineries in the PRC. The Company is 1 of 3 licensed intermediaries in Taiyuan City and the sole licensed intermediary in Gujiao that operates its own large scale storage tanks. The Company has the necessary licenses to operate and sell Products not only in Shanxi but throughout the entire PRC. The Company's storage tanks have the largest storage capacity of any privately operated entity in Shanxi. The Company seeks to earn profits by selling its Products at competitive prices to large-scale gas stations, coal plants, other power-supply customers and small, independent gas stations. The Company also earns revenue by acting as a purchasing agent for other intermediaries in Shanxi and through the sale of diesel and gasoline at gas stations located at each of the Company's facilities. The sales price and the cost basis of the Company's products are largely dependent on the price of crude oil. The price of crude oil is subject to fluctuation due to a variety of factors, all of which are beyond the Company's control. For further information on Longwei Petroleum Investment Holding Limited, please visit http://www.longweipetroleum.com . You may register to receive Longwei Petroleum Investment Holding Limited's future press releases or request to be added to the Company's distribution list by contacting Dave Gentry at info@RedChip.com or 1-800-733-2447, Ext. 104.

Forward-Looking Statements

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Longwei's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Longwei's operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.

    For more information, please contact:

    Investor Relations:
    RedChip Companies, Inc.
     Dave Gentry
     Tel:   +1-407-644-4256 x104
     Email: Dave@redchip.com
     Web:   http://www.RedChip.com

    Longwei Petroleum Investment Holding Ltd.
     Jim Crane, Chief Financial Officer
     U.S.:   +1-617-699-6325
     P.R.C.: +86-186-0125-0891
     Web:    http://www.longweipetroleum.com




          Longwei Petroleum Investment Holding Limited and Subsidiaries
                      Condensed Consolidated Balance Sheets

                                        September 30, 2009     June 30, 2009
    Assets                                  (In Thousands, Except Share Data)
    Current Assets:

        Cash                                        $9,432            $7,308
        Accounts Receivable, Net of
         Allowance for Doubtful Accounts
         of $0 as of September 30, 2009
         and $0 as of June 30, 2008                 27,407            26,796
        Inventories                                 14,178            13,976
        Advances to Suppliers                       34,227            35,317

        Total Current Assets                        85,244            83,397
     Property, Plant and Equipment, Net             44,312            36,745

        Total Assets                              $129,556          $120,142

    Liabilities and Shareholders' Equity
    Current Liabilities:
        Accounts Payable                            $1,626            $2,275
        Convertible Notes Payable, Net of
         Discount of $0 and $595                       282               800
        Warrant Derivative Liability                 2,310                --
        Taxes Payable                                3,691             2,144

        Total Current Liabilities                    7,909             5,219


     Total Liabilities                               7,909             5,219

    Commitments and Contingencies
    Shareholders' Equity:
     Preferred Stock, No Par Value,
      100,000,000 Shares Authorized, 0
      Issued and Outstanding as of June
      30, 2009 and 2008                                 --                --
     Common Stock, No Par Value;
      500,000,000 Shares Authorized;
      83,011,527 and 81,852,831 Issued
      and Outstanding as of September 30,
      2009 and June 30, 2009                        11,371            11,949
    Shares to be Issued                                 25               126
    Stock Subscription Receivable                       --               (76)
    Deferred Stock Based Compensation                   --               (25)
    Additional Paid-in Capital                          --             2,540
    Retained Earnings                              100,234            90,519
    Other Comprehensive Income                      10,017             9,890

        Total Shareholders' Equity                 121,647           114,923

        Total Liabilities and
         Shareholders' Equity                     $129,556          $120,142




          Longwei Petroleum Investment Holding Limited and Subsidiaries
       Unaudited Condensed Consolidated Statements of Operations and Other
                              Comprehensive Income

                                                 For the Three Months Ended
                                                          September 30,
                                                    2009              2008
                                         (In Thousands, Except Per Share Data)

    Net Sales                                      $59,361           $44,475
    Cost of Sales                                   47,752            34,835

        Gross Profit                                11,609             9,640
    Operating Expenses
     General and Administrative Expenses               545             2,167
     Total Operating Expenses                          545             2,167

        Operating Income                            11,064             7,473
     Change in Fair Value of Derivatives            (1,056)               --
     Interest Income                                     5                 4
     Interest Expense                                  (31)              (22)

        Income Before Income Tax Expense             9,982             7,455
     Income Tax Expense                             (2,777)           (1,965)

        Net Income                                   7,205             5,490
     Foreign Currency Translation
      Adjustment                                       127             1,071

        Comprehensive Income                        $7,331            $6,561

    Earnings per Common Share:
        Basic                                        $0.09             $0.07

        Diluted                                      $0.08             $0.07

    Weighted Average Common Shares
     Outstanding:
        Basic                                   82,321,110        76,205,000

        Diluted                                 85,465,029        80,705,000




          Longwei Petroleum Investment Holding Limited and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows

                                                  For the Three Months Ended
                                                          September 30,
                                                     2009              2008
                                                         (In Thousands)
    Cash Flows From Operating Activities:
        Net Income                                  $7,205            $5,490

        Adjustments to Reconcile Net
         Income to Net Cash Provided by
         (Used in) Operating Activities --
        Depreciation and Amortization                   77                96
        Stock Based Compensation                        25                --
        Change in Fair Value of
         Derivatives                                 1,056                --
        Accretion of Debt Discount                      --               382
        (Increase) Decrease in Assets --
        Accounts Receivable                           (611)           (7,453)
        Inventories                                   (202)            5,420
        Advances to Suppliers                        1,090            (6,176)
        Increase (Decrease) in
         Liabilities - Liabilities --
        Accounts Payable                              (622)              (83)
        Taxes Payable                                1,547             1,560
        Other Current Liabilities                       --                13

        Net Cash Provided By (Used in)
         Operating activities                        9,565              (751)

    Cash Flows From Investing Activities:
        Land Improvements                           (7,644)               --

        Net Cash Used in Investing
         Activities                                 (7,644)               --

    Cash Flows From Financing Activities:
        Proceeds From Issuance of Common
         Stock                                          76                --

        Net Cash Provided By Financing
         activities                                     76                --

        Effect of Exchange Rate Changes
         in Cash                                       127               129
        Increase (Decrease) in Cash                  2,124              (622)
        Cash, Beginning of Period                    7,308             8,633

        Cash, End of Period                         $9,432            $8,011

    Supplemental Cash Flow Information:
        Cash Paid During the Year for
        Interest                                       $76               $--
        Income taxes                                $1,230            $1,723
    Supplemental Schedule of Noncash
     Investing and Financing activities:
        None                                           $--               $--


    This information is intended to be reviewed in conjunction with the
    Company's filings with the Securities and Exchange Commission.

SOURCE Longwei Petroleum Investment Holding Ltd.

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http://www.longweipetroleum.com