EX-99.1
3
f8k081809ex99i_chinavalve.htm
PRESS RELEASE DATED AUGUST 18, 2009
f8k081809ex99i_chinavalve.htm
Exhibit
99.1
FOR IMMEDIATE
RELEASE
China
Valves Technology, Inc.
CCG
Investor Relations
Ray
Chen, VP of Investor Relations
Crocker
Coulson, President
Tel: +1-650-281-8375
Tel:
+1-646-213-1915
+86-13925279478
E-mail:
crocker.coulson@ccgir.com
E-mail:
raychen@cvalve.net
http://www.ccgirasia.com
http://www.cvalve.com
China
Valves Technology, Inc. Acquires Valve Lock
Manufacturing
Company
KAIFENG,
China, Aug. 18 /PRNewswire-Asia-FirstCall/ -- China Valves Technology, Inc. (OTC
Bulletin Board:
CVVZ
-
News
;
"China Valves" or the
"Company"), a leading metal valve manufacturer with operations in the People's
Republic of China (the "PRC"), today announced that its has acquired 100% equity
ownership of Yangzhou Rock Valve Lock Technology Co., Ltd. ("Yangzhou Rock") for
$7.3 million in cash.
Formed in
July 2006 and located in Yangzhou, Jiangsu Province, the PRC, Yangzhou Rock
designs, manufactures and distributes interlock valves, valve lock devices,
magnetic lock valves, and mechanical interlock machines that are widely used by
manufacturing companies in the petrochemical, chemical, natural gas, thermal
power station and metallurgy industries, including SINOPEC and some of its
subsidiaries. Interlock valves and machines are primarily used to eliminate
human errors during operation by ensuring that potentially hazardous valve
operations are performed in the correct sequence.
Yangzhou
Rock's annual designed production capacity is 15,000 units of mechanical
interlock machines using a production facility of over 10,000 square meters
(approximately 108,000 square feet) equipped with advanced Computer Numerical
Controlled, or CNC, equipment. Yangzhou Rock is the only manufacturer that is
able to produce interlock valves and machines using proprietary technologies,
and the products have higher than the average gross margin of China Valves'
existing products. China Valves expects to utilize Yangzhou Rock's distribution
channels and customer base after the acquisition.
In
consideration of 100% equity interest in Yangzhou Rock, China Valve will pay
$7.3 million in cash and expects the acquisition to close before the end of
August, 2009. The acquisition will also include all patents that were applied by
Yangzhou Rock before July 31, 2009, including a patent for a 90 degree rotating
valve lock device, a patent for a key management control device and a patent for
a type of mechanical valve interlock. Yangzhou Rock has limited working capital
requirements and China Valves expects its acquisition of Yangzhou Rock to add
approximately $2.9 million in revenue and $1.0 million in net income to the
Company for 2009 and approximately $8.6 million in revenue and $3.0 million in
net income for 2010. After the acquisition, Yangzhou Rock will cease to exist
and will instead become a wholly-owned subsidiary of China Valves. However,
China Valves will keep the name and brand of Yangzhou Rock.
"We are
pleased to complete the acquisition of this interlock valve and mechanical
interlock system manufacturing company at what we believe is an attractive
valuation. This acquisition complements our product lines, which diversifies our
revenue stream, improves our competitive position and facilitates our
penetration into the high-end segment of prominent end-user markets, especially
the petrochemical and metallurgy industries", commented Mr. Siping Fang,
Chairman and Chief Executive Officer of China Valves. "Yangzhou Rock high margin
product offerings should serve to enhance our profitability in the
future."
About
China Valves Technology, Inc.
China
Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co,
Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., and Tai Zhou Tai De Valve
Co., Ltd. is engaged in development, manufacture and sale of high-quality metal
valves for the electricity, petroleum, chemical, water, gas and metallurgy
industries. The Company has one of the best known brand names in China's valve
industry, and its history can be traced back to 1959 when it was formed as a
state-owned enterprise. The Company develops valve products by extensive
research and development and owns a number of patents. It enjoys significant
domestic market shares and exports to Asia and Europe. For more information,
visit
http://www.cvalve.com
Safe
Harbor Statements
Any
statements set forth above that are not historical facts are forward-looking
statements that involve risks and uncertainties that could cause actual results
to differ materially from those in the forward-looking statements. Such factors
include, but are not limited to, anticipated financial performance of
acquisitions, the Company's ability to develop and market new products, the
ability to access capital for expansion, the ability to acquire other companies,
changes from anticipated levels of sales, changes in national or regional
economic and competitive conditions, changes in relationships with customers,
changes in principal product profits and other factors detailed from time to
time in the Company's filings with the United States Securities and Exchange
Commission and other regulatory authorities. The Company undertakes no
obligation to update or revise to the public any forward-looking statements,
whether as a result of new information, future events or otherwise. This press
release was developed by China Valves, and is intended solely for informational
purposes and is not to be construed as an offer or solicitation of an offer to
buy or sell the Company's stock. This press release is based upon information
available to the public, as well as other information from sources which
management believes to be reliable, but it is not guaranteed by China Valves to
be accurate, nor does China Valves purport it to be complete. Opinions expressed
herein are those of management as of the date of publication and are subject to
change without notice.

EX - 99 . 1 3 f8k081809ex99i _ chinavalve . htm PRESS RELEASE DATED AUGUST 18 , 2009 f8k081809ex99i _ chinavalve . htm Exhibit 99 . 1 FOR IMMEDIATE RELEASE China Valves Technology , Inc . CCG Investor Relations Ray Chen , VP of Investor Relations Crocker Coulson , President Tel : + 1 - 650 - 281 - 8375 Tel : + 1 - 646 - 213 - 1915 + 86 - 13925279478 E - mail : crocker.coulson@ccgir.com E - mail : raychen@cvalve.net http://www.ccgirasia.com http://www.cvalve.com China Valves Technology , Inc . Acquires Valve Lock Manufacturing Company KAIFENG , China , Aug. 18 / PRNewswire - Asia - FirstCall / -- China Valves Technology , Inc . ( OTC Bulletin Board : CVVZ - News ; " China Valves " or the " Company " ) , a leading metal valve manufacturer with operations in the People 's Republic of China ( the " PRC " ) , today announced that its has acquired 100 % equity ownership of Yangzhou Rock Valve Lock Technology Co . , Ltd . ( " Yangzhou Rock " ) for $ 7.3 million in cash . Formed in July 2006 and located in Yangzhou , Jiangsu Province , the PRC , Yangzhou Rock designs , manufactures and distributes interlock valves , valve lock devices , magnetic lock valves , and mechanical interlock machines that are widely used by manufacturing companies in the petrochemical , chemical , natural gas , thermal power station and metallurgy industries , including SINOPEC and some of its subsidiaries . Interlock valves and machines are primarily used to eliminate human errors during operation by ensuring that potentially hazardous valve operations are performed in the correct sequence . Yangzhou Rock 's annual designed production capacity is 15,000 units of mechanical interlock machines using a production facility of over 10,000 square meters ( approximately 108,000 square feet ) equipped with advanced Computer Numerical Controlled , or CNC , equipment . Yangzhou Rock is the only manufacturer that is able to produce interlock valves and machines using proprietary technologies , and the products have higher than the average gross margin of China Valves ' existing products . China Valves expects to utilize Yangzhou Rock 's distribution channels and customer base after the acquisition . In consideration of 100 % equity interest in Yangzhou Rock , China Valve will pay $ 7.3 million in cash and expects the acquisition to close before the end of August , 2009 . The acquisition will also include all patents that were applied by Yangzhou Rock before July 31 , 2009 , including a patent for a 90 degree rotating valve lock device , a patent for a key management control device and a patent for a type of mechanical valve interlock . Yangzhou Rock has limited working capital requirements and China Valves expects its acquisition of Yangzhou Rock to add approximately $ 2.9 million in revenue and $ 1.0 million in net income to the Company for 2009 and approximately $ 8.6 million in revenue and $ 3.0 million in net income for 2010 . After the acquisition , Yangzhou Rock will cease to exist and will instead become a wholly - owned subsidiary of China Valves . However , China Valves will keep the name and brand of Yangzhou Rock . " We are pleased to complete the acquisition of this interlock valve and mechanical interlock system manufacturing company at what we believe is an attractive valuation . This acquisition complements our product lines , which diversifies our revenue stream , improves our competitive position and facilitates our penetration into the high - end segment of prominent end - user markets , especially the petrochemical and metallurgy industries " , commented Mr . Siping Fang , Chairman and Chief Executive Officer of China Valves . " Yangzhou Rock high margin product offerings should serve to enhance our profitability in the future . " About China Valves Technology , Inc . China Valves Technology , Inc . through its subsidiaries , Zhengzhou Zhengdie Valve Co , Ltd . , Henan Kaifeng High Pressure Valve Co . , Ltd . , and Tai Zhou Tai De Valve Co . , Ltd . is engaged in development , manufacture and sale of high - quality metal valves for the electricity , petroleum , chemical , water , gas and metallurgy industries . The Company has one of the best known brand names in China 's valve industry , and its history can be traced back to 1959 when it was formed as a state - owned enterprise . The Company develops valve products by extensive research and development and owns a number of patents . It enjoys significant domestic market shares and exports to Asia and Europe . For more information , visit http://www.cvalve.com Safe Harbor Statements Any statements set forth above that are not historical facts are forward - looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward - looking statements . Such factors include , but are not limited to , anticipated financial performance of acquisitions , the Company 's ability to develop and market new products , the ability to access capital for expansion , the ability to acquire other companies , changes from anticipated levels of sales , changes in national or regional economic and competitive conditions , changes in relationships with customers , changes in principal product profits and other factors detailed from time to time in the Company 's filings with the United States Securities and Exchange Commission and other regulatory authorities . The Company undertakes no obligation to update or revise to the public any forward - looking statements , whether as a result of new information , future events or otherwise . This press release was developed by China Valves , and is intended solely for informational purposes and is not to be construed as an offer or solicitation of an offer to buy or sell the Company 's stock . This press release is based upon information available to the public , as well as other information from sources which management believes to be reliable , but it is not guaranteed by China Valves to be accurate , nor does China Valves purport it to be complete . Opinions expressed herein are those of management as of the date of publication and are subject to change without notice .