Keyuan Petrochemicals Inc. Files Extension for Third Quarter 2011 Form 10-Q Filing

NINGBO, China, Nov. 15, 2011 /PRNewswire-Asia-FirstCall/ -- Keyuan Petrochemicals Inc. (OTC: KEYP), ("Keyuan" or "the Company"), a leading manufacturer and supplier of various petrochemical products in China, today announced that it will be filing Form 12b-25 with the Securities and Exchange Commission on November 15, 2011 to extend the filing of the Company's Form 10-Q for the nine months ended September 30, 2011, for up to an additional five calendar days.  

The Company is filing for an extension due to delays in compiling the required information for the preparation of the financial statements. The extension grants the Company until November 21, 2011 to file its Form 10-Q. Complying with this deadline deems the Form 10-Q to be timely filed.

Preliminary Results for Third Quarter 2011

The company expects to report approximately $168 million in revenue for three months ended September 30, 2011. Furthermore, the Company expects to report a net loss due to the higher cost of sales and the increase in legal, consulting and investigation expenses, in addition to a 19 day suspension of production caused by the upgrade of the local power grid. The higher cost of sales was mainly caused by the timing of the Company's procurement of raw materials.

Further details will be available in the Form 12b-25. Additional information will also be included in the Form 10Q and accompanying press release for the third quarter 2011. Management fully expects to be able to file within the additional time allowed by the Form 12b-25.

Please note that the foregoing results are subject to change and adjustment in the Company's Form 10-Q for the period ended September 30, 2011.

About Keyuan Petrochemicals, Inc.

Keyuan Petrochemicals, Inc., established in 2007 and operating through its wholly-owned subsidiaries, Ningbo Keyuan Plastics, Co. Ltd. and Ningbo Keyuan Petrochemicals 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 design capacity of 720,000 MT for 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 SBS production facility, additional storage capacity, a raw material pre-treatment facility, 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.

SOURCE Keyuan Petrochemicals, Inc.