INGSHAN, China, April 6, 2015 (GLOBE NEWSWIRE) -- SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq:SCOK), a vertically integrated producer of clean energy products located in Henan Province, today confirmed that its second aboveground facility for the production of syngas has been completed on schedule and will begin testing and calibration of systems on April 10. Located at the site of the company's first commercial syngas production facility in Pingdingshan, this second facility is expected to start deliveries to customers in May and reach full capacity of 25,000 cubic meters of syngas per hour by the end of June 2015.
The company noted that these two facilities, with a combined output of 50,000 cubic meters per hour, would rank among China's largest syngas aboveground production sites, in addition to being the only one that combines coking and producing syngas in parallel. Additionally, they are among the first aboveground syngas facilities in China that can recycle carbon dioxide output to produce usable chemical compounds.
Based on the current selling price of $0.10 per cubic meter for syngas, the gross revenue generated per day by both aboveground facilities operating at full capacity would be about $120,000 USD.
SinoCoking also said that its Underground Coal Gasification (UCG) project, originally scheduled for completion by March 30, 2015, will be completed soon and ready to begin testing on April 15. This short delay, according to the company, was not caused by any technology issues, but rather by a slowdown in worker activities occurring during the Chinese New Year break. At full capacity, expected to be achieved by June 30, 2015, the UCG facility will add 60,000 cubic meters per hour to SinoCoking's total syngas output and generate close to $144,000 USD in daily gross revenue.
Gross profit margin on syngas production is expected to be around 40% for the aboveground facilities, and 30% for the UCG facility. The lower UCG project profit margin results from higher production costs than for the aboveground project.
"With the successful launch of our UCG facility," said SinoCoking Chairman and CEO Mr. Jianhua Lv, "we will achieve a major milestone for the company. As part of the national initiative to produce and utilize clean energy like syngas as an alternative to burning coal, SinoCoking is demonstrating that it can be done profitably and on a large scale. We hope our success will lead to an expansion of this technology geographically to benefit other coal producing regions both within China and abroad."
For additional information on SinoCoking, please go to http://scokchina.com or refer to the company's periodic reports filed with the Securities and Exchange Commission (http://www.scokchina.com/sec-filings.html). Investors wishing to receive SinoCoking's corporate communications as they become available may go to the company's Investor Relations site (http://www.scokchina.com/corporate-overview.html) and register under Email Alerts.
Also, investors may submit questions directly to Mr. Lv and his staff to receive non-confidential information about the company's operations and products at the company's "Ask Management" blog (http://www.scokchina.com/ask-management.html).
SinoCoking Coal and Coke Chemical Industries, Inc. (www.scokchina.com), a Florida corporation, is an emerging producer of clean energy products located in Pingdingshan, Henan Province, China. The company has historically been a vertically-integrated coal and coke processor of basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking also produces and supplies thermal coal to its customers in central China. SinoCoking currently owns its assets and conducts its operations through its subsidiaries, Top Favour Limited and Pingdingshan Hongyuan Energy Science and Technology Development Co., Ltd., and its affiliated companies, Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd., Baofeng Coking Factory, Baofeng Hongchang Coal Co., Ltd., Baofeng Hongguang Environment Protection Electricity Generating Co., Ltd., Zhonghong Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering Technology Co., Ltd., Baofeng Shuangri Coal Mining Co., Ltd., and Baofeng Xingsheng Coal Mining Co., Ltd.
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, and statements relating to goals, plans and projections regarding the Company's financial position and business strategy. The words or phrases "plans," "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "think," "considers" or similar expressions are intended to identify "forward-looking statements." These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of local, regional, and global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.
CONTACT: SinoCoking Song Lv, Chief Financial Officer + 86-375-2882-999 firstname.lastname@example.org http://www.scokchina.com/ Investor Relations Counsel: Jimmy Caplan, Asia IR-PR +1-512-329-9505 email@example.com http://asia-irpr.com/Source:SinoCoking Coal and Coke Chemical Industries. Inc.