** See<ctes.pk> (NASDAQ:CTES)

BEIJING, Nov. 11, 2011 (GLOBE NEWSWIRE) -- SinoTech Energy Limited (Pink Sheets:CTESY) ("SinoTech" or the "Company"), a provider of enhanced oil recovery ("EOR") services in China, previously announced on September 23, 2011, that certain corporate funds had been transferred to a bank account controlled by Mr. Qingzeng Liu, Chair of the Company's Board of Directors (the "Board"). On September 23, 2011, the Company also announced that Mr. Liu had agreed to re-transfer to the Company all such amounts, and that the Company had received a significant portion of those funds. The Company announced today that re-transfer of the remaining funds to the Company was completed on October 24, 2011.

The Company also announced that it has withdrawn its appeal to the previously announced delisting determination by The Nasdaq Stock Market LLC ("NASDAQ") because, to date, it has been unable to cure the issues identified by NASDAQ and disclosed by the Company on September 21 and October 4, 2011. NASDAQ informed the Company in a letter dated October 28, 2011 that the Company's shares will continue to be suspended from trading, and that NASDAQ will file a Form 25 Notification of Delisting with the U.S. Securities Exchange Commission when all NASDAQ internal appeal periods end.

The Company further announced that the Special Committee of the Board has decided to discontinue the independent investigation into allegations made in a report posted on alfredlittle.com and other matters.

BEIJING, Sept. 22, 2011 (GLOBE NEWSWIRE) -- SinoTech Energy Limited (Nasdaq:CTE) ("SinoTech" or the "Company"), a provider of enhanced oil recovery ("EOR") services in China, today announced that Mr. Boxun Zhang has resigned from his position as the Company's Chief Financial Officer and as a member of the Company's Board of Directors (the "Board") and that Ms. Jing Liu has resigned from her position as a member and Chair of the Company's Audit Committee and a member of the Compensation Committee, although she will remain on the Board as an independent director and as Chair of the Special Committee,conducting an independent investigation into allegations made in a report posted on alfredlittle.com and other matters.

The Company also announced that Ernst & Young Hua Ming ("Ernst & Young") has resigned from its engagement as the Company's Independent Registered Public Accountant. Ernst & Young has further stated that it has withdrawn its opinion with respect to the Company's September 30, 2010 financial statements and that this opinion should no longer be relied upon.

BEIJING, Sept. 21, 2011 (GLOBE NEWSWIRE) -- SinoTech Energy Limited (Nasdaq:CTE) ("SinoTech" or the "Company"), a provider of enhanced oil recovery ("EOR") services in China, today announced that it has received a letter dated September 15, 2011 from The NASDAQ Stock Market LLC ("NASDAQ"), stating that continued listing of the Company's securities on NASDAQ is no longer warranted. NASDAQ staff members, exercising their discretionary authority, have determined to delist the Company's securities based on public interest concerns under NASDAQ Listing Rule 5101 and the Company's failure to provide NASDAQ with certain information requested by NASDAQ on a timely basis, as required by NASDAQ Listing Rule 5250(a). Trading in the Company's stock has been halted by NASDAQ since August 16, 2011. 

Pursuant to the NASDAQ letter, the Company has until September 22, 2011 to request a hearing and appeal NASDAQ's determination. If NASDAQ Hearings Department does not receive such a request from the Company by September 22, 2011, the Company expects that a Form 25-NSE will be filed with the Securities and Exchange Commission ("SEC"), which will remove the Company's securities from listing and registration on NASDAQ. The Company currently intends to request a hearing and appeal NASDAQ's determination before the September 22, 2011 deadline. 

BEIJING, Aug. 17, 2011 (GLOBE NEWSWIRE) -- SinoTech Energy Limited (Nasdaq:CTE) ("SinoTech" or the "Company"), a fast-growing provider of enhanced oil recovery ("EOR") services in China, today responded to allegations made in a report posted on alfredlittle.com.

The board of directors of SinoTech wishes to state clearly that it is not aware of inaccuracy with respect to material facts or material omission contained in its previous public reports and filings with the United States Securities and Exchange Commission. The Company further believes alfredlittle.com's report to be inaccurate and defamatory. As indicated in its report, alfredlittle.com has taken a short position in the American depositary shares representing Company's ordinary shares and therefore stands to realize significant gains in the event that the Company's share price declines. Alfredlittle.com explicitly states in its report on the Company that it makes no representation as to the accuracy, timeliness or completeness of any information contained in the report. The Company was not contacted by alfredlittle.com in advance of the publication of this report, but did supply a company conducting research on Sinotech, International Financial Research and Analysis Group (IFRA), with clear and extensive evidence refuting the allegations contained in the report.

Sinotech's board of directors has decided to appoint an independent special committee to fully investigate these allegations. The independent committee intends to engage an independent auditor and independent legal counsel to conduct an investigation into these allegations. The findings of the independent special committee's investigation will be disclosed to the investing public as soon as such investigation is completed.

In addition to the responses presented in this announcement, the Company reserves the right to take whatever actions necessary in response to any further efforts to defame the Company and victimize SinoTech's shareholders.

Mr. Guoqiang Xin, chief executive officer of SinoTech commented: "We are outraged by this blatantly self-interested, mercenary attempt to profiteer at the expense of SinoTech and its shareholders. The alfredlittle.com report is riven with inaccuracies, fabrications and unsubstantiated allegations, and its conclusions are utterly without foundation. SinoTech has always been committed to upholding the best interests of our shareholders and we have therefore sought to make public as much information as possible as quickly as possible in order to make clear the fundamental mistruth of these allegations. We stand by the integrity of our company, our operations and our financial statements and are committed to protecting the welfare of our shareholders to any extent necessary."

Third Quarter of Fiscal Year 2011 Financial Highlights

• Sales in the third quarter of fiscal year 2011 were US$29.8 million, an increase of 205.1% from the corresponding period in fiscal year 2010.
• Gross profit in the third quarter of fiscal year 2011 was US$21.2 million, an increase of 187.3% from the corresponding period in fiscal year 2010.
• Net income in the third quarter of fiscal year 2011 was US$13.2 million, compared to a net loss of US$7.4 million in the corresponding period of fiscal year 2010.
• GAAP diluted earnings per ADS were US$0.20 for the third quarter of fiscal year 2011, compared to US$0.17 for the second quarter of fiscal year 2011.
• Adjusted EBITDA (Non-GAAP) ⁽¹⁾ in the third quarter of fiscal year 2011 was US$21.7 million, an increase of 236.0% from the corresponding period in fiscal year 2010.
• Net cash balance was US$93.2 million as of June 30, 2011, compared to US$80.6 million as of March 31, 2011.

Recent Business Highlights

• SinoTech is raising its guidance for sales for fiscal year 2011 to a range from US$108 million to US$112 million. The Company had previously announced that sales for fiscal year 2011 would be in a range from US$100 million to US$105 million.
• On June 23, 2011, the Company announced that its Board of Directors approved a share repurchase program under which SinoTech is authorized to repurchase up to US$20 million worth of its American Depositary Shares ("ADSs"), each representing two ordinary shares of the Company, by December 31, 2011. The share repurchase program went into effect immediately following the announcement.
• On July 29, the Company announced that it had taken delivery of four new lateral hydraulic drilling ("LHD") units which have gone into operation in oilfields in northern and central China in early August. Including these four new units, SinoTech currently has a total of 16 LHD units in operation across China.

"Rapid expansion of our LHD fleet has enabled SinoTech to triple sales in the third quarter of fiscal year of 2011 compared to the same period of the previous fiscal year, and we are confident that continued successful execution on this strategy will drive very robust growth in the coming quarters," said Mr. Guoqiang Xin, Chief Executive Officer of SinoTech. "China's oil producers have a pressing need for effective EOR solutions, and are increasingly recognizing the strength of LHD technology as a proven, cost effective method for enhancing oil output. That faith in our LHD service is reflected in our very healthy demand pipeline, and we continue to build out our LHD fleet to meet that demand. Having added two new LHD units at the end of March, and a further four units in late July, we have already comfortably achieved our target of having 16 units in the field by the end of this fiscal year."

Mr. Boxun Zhang, Chief Financial Officer of SinoTech, noted, "In the third quarter, SinoTech reported excellent results on both the top and bottom lines as we grew sales by 19.4% to $29.8 million, and net income by 21.1% to $13.2 million, compared to last quarter. I'm particularly pleased that we have been able to achieve greater economies of scale as we have expanded our LHD fleet, which has in turn enabled improved net margins. We have also recorded a very healthy increase in our cash balance as a result of robust operating cash flow. Building on these strong operating results, our healthy financial position and our confidence in SinoTech's future business prospects, we have already begun to buy back shares under the share repurchase program we announced in late June."

We believe that our existing cash and cash equivalents and future cash flows from operating activities will be sufficient to meet the working capital requirements of our operations for the next 12 months.

We currently anticipate that we will incur capital expenditures in the range of $70 million to $80 million in the fiscal year ending September 30, 2011 including the expenditures for the procurement of new LHD equipment to be added in fiscal year 2011 and the prepayment of additional LHD units to be delivered in fiscal year 2012.

We expect that cash provided from operating activities and equity or debt financings will be sources of liquidity for us.

Second Quarter Results:

• Sales in the second quarter of fiscal year 2011 were US$25.0 million, an increase of 201.5% from the corresponding period in fiscal year 2010
• Gross profit in the second quarter of fiscal year 2011 was US$17.6 million, an increase of 188.0% from the corresponding period in fiscal year 2010
• Net income in the second quarter of fiscal year 2011 was US$10.9 million, compared to a net loss of US$2.6 million in the corresponding period of fiscal year 2010
• GAAP diluted earnings per ADS was US$0.17 for the second quarter of fiscal year 2011
• Adjusted EBITDA (Non-GAAP) in the second quarter of fiscal year 2011 was US$18.3 million, an increase of 306.1% from the corresponding period in fiscal year 2010
• Net cash balance was US$80.6 million as of March 31, 2011

Sales guidance for fiscal year 2011 has been upgraded to a range of US$ 100 million to US$105 million

"Our very strong second quarter results offer a clear indication of both the very exciting growth prospects in China's EOR market and SinoTech's growing ability to take advantage of these opportunities," commented Mr. Guoqiang Xin, Chief Executive Officer of SinoTech. "Successful utilization of our LHD fleet, including two new units delivered in late March this year, has enabled us to meet fast-growing demand for our services from oil producers, and has driven robust growth on both the top and bottom lines. With the rapid pace of economic development in China driving rising demand for energy, the country's oil producers are increasingly reliant upon EOR solutions to improve productivity. SinoTech is ideally positioned to profit from this trend because producers recognize the clear benefits in terms of costs, technology and effectiveness that our LHD and MDF solutions offer. We are confident in our prospects for the year ahead, and that confidence is reflected in our decision last week to update our revenue guidance for the full fiscal year to a range of US$100 million to US$105 million."

For fiscal year 2011, based on the current strong operation of existing LHD units and confirmed equipment supply pipeline, SinoTech has upgraded its guidance and now expects its total sales to be in an estimated range of US$100 million to US$105 million, representing a 120.7% to 131.7% increase from fiscal year 2010. According to its current schedule, the Company intends to add four LHD units to its fleet in fiscal year 2011, bringing the total number of operational LHD units to 16 by the end of fiscal year 2011 and 20 by the end of December 2011. Total capital expenditures related to the procurement of new equipment to be added in fiscal year 2011 and prepayments for additional LHD units to be delivered in 2012 are expected to be in the range of US$70 million to US$80 million.

BEIJING, May 6, 2011 (GLOBE NEWSWIRE) -- SinoTech Energy Limited today released updated outlook for fiscal year 2011 and announced that it will release its unaudited financial results for the second quarter ended March 31, 2011, on May 19, 2011.

Based on current operating and business conditions, the Company expects to report total sales in the range of US$100 million to US$105 million in fiscal year 2011, compared to the previously announced range of US$90 million to US$95 million.Mr. Boxun Zhang, chief financial officer of SinoTech, commented, "We are very pleased with our rapid growth, which is driven by the expansion of our LHD fleet and MDF service coverage as well as our team's effective execution. We believe China's pressing need to enhance oil production combined with our steadily expanding capacity to provide reliable EOR services will lead to sustainable growth for the Company in the coming years.

Earnings Recap:

2011 fiscal first quarter EPS of $0.19 came in way ahead of $0.06 estimate, driven by revenues of $22.8 million vs. $25.8 million estimate. However, CTE kept full year guidance unchanged at around $93 million, up about 100% from fiscal 2010. We would have liked to have seen an increase in revenue guidance. Using current net margins of 50% and share count, 2011 implied EPS is $0.78. We are working on calculating prior year EPS numbers. The stock has piqued our curiosity. (IPO)

See Outlook

See earnings review of all ChinaHybrids on our Blog.

First Quarter Results:

• Total sales in the first quarter of fiscal year 2011 were US$22.8 million, an increase of 207.5% from the corresponding period in fiscal year 2010 
• Gross profit in the first quarter of fiscal year 2011 was US$16.3 million, an increase of 191.0% from the corresponding period in fiscal year 2010 
• Adjusted net income (Non-GAAP) in the first quarter of fiscal year 2011 was US$ 11.4 million, an increase of 165.8% from the corresponding period in fiscal year 2010 
• Non-GAAP earning per ADS were US$ 0.19 for the first quarter of fiscal year 2011 
• Adjusted EBITDA (Non-GAAP) in the first quarter of fiscal year 2011 was US$16.5 million, an increase of 212.5 % from the corresponding period in fiscal year 2010

"We are pleased to report another quarter of robust results, reflecting strong and growing industry demand for our high-efficiency cost-effective EOR solutions," commented Mr. Guoqiang Xin, chief executive officer of SinoTech. "To keep pace with rising demand for our LHD services, we signed an agreement in the last quarter that will significantly expand our capacity for our core LHD service. By the end of December 2011, we expect to have 20 LHD units in the field, double the number we currently have in operation. With China's oil and natural gas producers increasingly reliant on EOR services to maximize output from their wells, we also see very healthy growth in demand for our MDF services."

For fiscal year 2011, based on current operating and business conditions, SinoTech currently still expects its total sales to be in an estimated range of US$90 million to US$95 million, representing a 98.6% to 109.7% increase from fiscal year 2010

BEIJING, March 2, 2011 (GLOBE NEWSWIRE) -- SinoTech Energy Limited today announced that it has appointed Ernst & Young as its independent auditor, and that it will release its unaudited financial results for the first quarter ended December 31, 2010, on March 10, 2011.

SinoTech Energy Limited plans for Initial Public Offering

Company Snapshot:

Provider of enhanced oil recovery, or EOR, services in China.

Industry Snapshot:

Global energy demand has been growing rapidly in recent years, while the growth of oil and gas production has been slowing. China in particular has been a key driver of the growth in global energy demand. At the same time, China is experiencing a steadily increasing shortfall in domestic supply of oil and gas. As this shortfall increases, the pressure to stem the decline in domestic productivity, and thereby decrease reliance on foreign imports, will increase. In order to maintain or increase production at oil and gas fields experiencing production declines, CNPC and Sinopec, the oil majors operating the majority of China's oil and gas fields, will require new EOR technologies to meet their domestic development and production goals. As older EOR technologies reach the limits of their usefulness, newer, more advanced technologies will be required. In addition, China has begun development and production of CBM to meet domestic energy needs. Independent oil field service providers that can provide leading-edge EOR technologies and CBM recovery capabilities to the Chinese oil majors will benefit from these long-term trends in the Chinese oil and gas industry.

Use Of proceeds:

We expect to receive net proceeds from this offering of approximately $120.7 million. We anticipate using the net proceeds of this offering for the following purposes:

• approximately $69.7 million for LHD equipment-related capital expenditures
• approximately $51.0 million to repay the principal amount plus all accrued and unpaid interest of our outstanding loan under our facility agreement with Deutsche Bank AG, Hong Kong Branch in full.

Underwriter:

• UBS Investment
• Bank Citi
• Lazard Capital Markets

Proposed offering price: $7.50 and $9.50

Post IPO Share Calculation: (Using a 2 to 1 Ordinary to ADS conversion ratio).

• 50,000,000: Pre IPO fully diluted share count used in EPS calculation.
• 19,736,842: Newly issued ADS shares (15,789,474 shares from the company and 3,947,368 from selling shareholders).
•   2,072,368: Underwriter Over-allotment  shares (888,158 shares from the company and 2,072,368 from selling shareholders). 

GeoTeam® best effort calculation of total post IPO ADS count to be used in EPS calculations, assuming full conversions and a Ordinary to ADS conversion ratio of 2 to 1: 66,677,632.