SINOENERGY (NASDAQ:SNEN)

WEB NEWS

Sunday, August 23, 2009

Investor Alert

At June 30, 2009, we were not in compliance with the financial covenants in the indentures relating to our 12% senior notes due 2012 in the principal amount of $16,000,000 and 3.0% senior convertible notes due 2012 in the principal amount of $14,000,000, as discussed below. These covenants had been amended on May 19, 2009. Although the noteholders waived compliance with the covenants at June 30, 2009 and for the period then ended, the waiver was limited to June 30, 2009. As a result of

(i) our failure to be in compliance at June 30, 2009 with covenants that were amended in May 2009,
(ii) the limited nature of the waiver,
(iii) the likelihood that the Company will not be in compliance at September 30, 2009 and
(iv) the uncertainty that the noteholders will grant a further waiver,

the notes have been classified as current liabilities at June 30, 2009. As a result, the Company has, at June 30, 2009, a working capital deficiency of $11,866,000.

Further, our principal current asset is our accounts receivable, which were $29,144,000 at September 30, 2009, and the accounts receivable, along with other receivables, totaled approximately $40,000,000. At September 30, 2008, the Company’s accounts receivable were outstanding for an average of 124 days, and at June 30, 2009, the Company’s accounts receivable were outstanding for an average of 229 days. A significant amount of receivables that were outstanding at September 30, 2008 remained outstanding on June 30, 2009. In addition, at September 30, 2009, we had a note receivable of $2,636,000 resulting from the termination of a sublease for which no payments had been made by the tenant. As of August 10, 2009, no payments had been made on account of that note. Our failure to restructure or refinance our obligations under our notes or obtain a long-term waiver or to collect our receivables in the normal course of business could impair our ability to continue in business.

Source: SEC Form 10Q ( FOR THE QUARTERLY PERIOD ENDED June 30, 2009, page 25)


Monday, June 22, 2009

Investor Alert

"Our facility lessee, Mingcheng, has been adversely affected by the downturn in the real estate market in China. We are very disappointed with Mingcheng's lack of progress on the rental payments. We understand that there are serious problems with Mingcheng's operations and investments in the current tough real estate market. The Company will be monitoring Mingcheng's condition very closely in our efforts to recover overdue rental payments. While this loss is not from Sinoenergy's operating businesses, the loss nevertheless significantly impacts our net income'. Bo Huang, CEO of Sinoenergy said, 'While we are striving to improve our operations, and hoping for an upturn after the challenging second quarter, but as the Mingcheng case illustrates, the Company is subject to domestic and even global economic conditions that are beyond our control.''

Source: PR Newswire (March 26, 2009)


Friday, December 26, 2008

Comments & Business Outlook

GeoInvesting Third Quarter Guidance Report

Outlook for Fiscal Year 2009:

As of September 30, 2008, Sinoenergy has a total of 16 standard stations over 9 locations opened and operating, in which 11 are located in Wuhan, 2 are located in Ping Ding Shan and 3 are located in Xuancheng. 3 Additional stations are in the commissioning process currently in Wuhan and should begin operations shortly. By the end of 2009, 24 new standard filling stations will be opened, of which 22 will be located in Wuhan and 2 will be located in Ping Ding Shan. A total of 43 standard filling stations are projected to be opened by the end of 2009.

Source: PR Newswire (December 24, 2008)

GeoNote®:

On October 10th 2008 the company had issued 2009 EPS Guidance.  However, their is  no reference to these numbers in the current Fourth Quarter report.  The GeoTeam®believes that it may be prudent to investigate why this is the case before making an investment decision.