LPIH is another typical little known China stock with numbers that are astounding. As they are now the PE would be about 6, but they have 140% Growth coming on stream and its already paid for, plus a railroad ownership. There is another one, CHBT, expecting this one to be the major Yogurt brand in China and Probiotics supplier for other China companies. China has just started to gain interest in dairy products and now Probiotics, CHBT is the leader.


The new facility will more than double the company's storage capacity to 120,000 metric tons from the current 50 tons. Longwei has already allocated approximately $23.8 million toward construction of the facility, a 140% Increase

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.

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.
Longwei Fast Facts

* Longwei has been granted a Finish Oil Wholesale license, which allows them to engage in the wholesale business of gasoline, fuel oil, and diesel oil. This license is granted by the central government of the People's Republic of China. The license has no expiration date and is very difficult to obtain. In addition, Longwei also has a special license for Dangerous Chemical Products Businesses which allows the Company to handle or transport gasoline and diesel oil.
* Longwei has been in the fuel oil and petroleum product distribution wholesale business since 1995. The Company has earned a reputation for excellent customer service and a stable distribution capability at competitive prices.
* China's rapidly growing economy will drive energy demand growth rates of four to five percent annually through 2015. Production and distribution of energy will be one of China's greatest challenges in the coming years.
* Shanxi Province, where Longwei operates, has no oil fields or oil refineries and thus provides a unique market space for fuel oil and petroleum products. Shanxi Province's demand for fuel oil has experienced double-digit growth in the past several years.
* Longwei owns one state-of-the-art fuel storage facility and fourteen storage tanks with a total capacity of 50,000 metric tons at Taiyuan City, in Shanxi Province. Longwei is planning to expand its operations to Gujiao City and is adding 70,000 metric tons of storage capacity to service customers in Gujiao and surrounding areas. Gujiao is a major energy center of China.
* Longwei owns its own railroad system and has exclusive usage rights. This, coupled with Longwei's Finish Oil Wholesale license agreement, means that Longwei can reliably meet the needs of its customers.
* Longwei's fiscal year ends June 30th.