NINGBO, China, June 1 /PRNewswire-Asia-FirstCall/ -- Keyuan Petrochemicals, Inc. (OTC Bulletin Board: KYNP; formerly OTC Bulletin Board: SVPE), ("Keyuan" or "the Company"), a leading independent manufacturer and supplier of various petrochemical products in China, today announced that it changed its name from Silver Pearl Enterprises, Inc. to Keyuan Petrochemicals, Inc. effective May 17, 2010. In connection with this name change, as of the open of business on June 2, 2010, the Company has the following new trading symbol: "KYNP."
The purpose of the name change is to better reflect Keyuan's significant growth opportunities as a leading independent manufacturer and supplier of various petrochemical products in China, and as it expands its production and storage capacity to capitalize on China's growing demand for refined petrochemical products. This growing demand, which has surpassed supply in recent years, has led to record contract signings and backlog for Keyuan's various products.
"Our new corporate name reinforces our focus on serving the needs of our many valued customers as we increase our production and storage capacity to meet China's growing demand for refined petrochemical products," stated Mr. Chunfeng Tao, founder, chairman and chief executive officer of the Company. "With our expanded facilities, which will include manufacturing technologies that enable us to achieve above-industry-average margins by reducing raw material costs and increasing utilization rates and yields, we believe we are well-positioned to drive significant revenue and earnings growth as we continue to build on being a leading producer of refined petrochemical products in China."
Growing demand driven by China's robust economic growth, coupled with under-developed domestic production capacity, has led to an imbalance in supply and demand for refined petrochemical products that is likely to persist for many years. As a result of this imbalance, China was forced to import an average of 3.1 million tons of refined petrochemical products per month in 2009. Additionally, China's demand for asphalt has outpaced supply for five consecutive years with total imports of 3.3 million metric tons (MT) in 2008.
Due to these market conditions, Keyuan's customer orders for 2010 have exceeded the Company's current annual production capacity. To meet increasing market demand and to grow the Company, Keyuan plans to expand its petrochemical manufacturing capacity to 600,000 MT this year. The Company also plans to double its storage capacity to 200,000 MT by the end of 2011, and to add a new raw material pre-treatment facility and an asphalt production facility in 2012. For fiscal year 2010, Keyuan expects to generate revenue of approximately $461.3 million and net income of approximately $36.3 million, excluding public company expenses. In 2010, gross margins are expected to improve to 12%, with net margins expected to improve to 8.0%.
About Keyuan Petrochemicals, Inc.
Keyuan Petrochemicals, Inc., established in 2007 and operating through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo, China and is a leading independent manufacturer and supplier of various petrochemical products. Having commenced production in October 2009, Keyuan's operations include an annual petrochemical manufacturing capacity of 550,000 MT of a variety of petrochemical products, with facilities for the storage and loading of raw materials and finished goods, and a technology that supports the manufacturing process with low raw material costs and high utilization and yields. In order to meet increasing market demand, Keyuan plans to expand its manufacturing capacity to include a raw material pre-treatment facility, additional storage capacity and an asphalt production facility.
Cautionary Statement Regarding Forward-Looking Information
This press release may contain certain "forward-looking statements" relating to the business of Keyuan Petrochemicals, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the impact of the proceeds from the private placement on the Company's short term business and operations, the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward looking statements.
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SOURCE Keyuan Petrochemicals, Inc.