Docstoc

Ableauctions Acquires Coal and Coke Producer SinoCoking

Document Sample
Ableauctions Acquires Coal and Coke Producer SinoCoking Powered By Docstoc
					Ableauctions Acquires Coal and Coke Producer
SinoCoking
February 04, 2010 09:23 PM Eastern Time  

BURNABY, British Columbia--(EON: Enhanced Online News)--Ableauctions.com Inc. (AMEX:AAC) (the
“Company”) released a statement today about its acquisition of SinoCoking, a coal and coke producer based in
central China.

“We are pleased to announce our acquisition of SinoCoking, a coal and coke producer based in the Henan Province
in the People’s Republic of China,” said Abdul Ladha, Chief Executive Officer of Ableauctions.com, Inc. The
closing of the acquisition is scheduled to occur at the close of business on February 5, 2010. Mr. Ladha further
added “this acquisition has provided our shareholders with a unique opportunity to participate as equity holders in
what we believe to be a company that has good fundamentals and growth potential as a supplier of products of vital
economic importance within China’s fast-growing economy. Moreover, the transaction allows our pre-acquisition
shareholders to receive the full liquidation value of our pre-acquisition business assets in addition to a 3% aggregate
stake in the reorganized company to be renamed SinoCoking Coal and Coke Chemical Industries, Inc. We are
excited about the potential of SinoCoking to grow and build shareholder value.” 

Mr. Ladha, who has served as Chief Executive Officer of Ableauctions since 1999, will step down as CEO on
February 5, and will be succeeded by Mr. Jianhua Lv, who is an initial founder and current President of SinoCoking.
In addition, on February 5, 2010, the current board of directors of Ableauctions will step down and be succeeded
by seven new directors designated by SinoCoking.

Mr. Jianhua Lv, the incoming CEO of the Company stated “As a coal producer and coke manufacturer, SinoCoking
has been a significant supplier of the vital commodities of thermal and metallurgical coal and coke to industrial
customers such as power plants, steel mills and other industrial buyers in China since 1996. SinoCoking is a
vertically-integrated processor that uses coal from both its own mines and that of third-party mines to provide basic
and value-added coal products to its client base. SinoCoking currently holds mining rights for approximately 2.5
million tons of coal from mines located in central China. SinoCoking began producing metallurgical coke in 2002,
and since then has expanded its production to become an important supplier to regional steel producers in central
China. Coke, which is an essential ingredient in steel-making, is manufactured in SinoCoking’s on-site facilities by
heating selected coal with certain thermal and chemical properties at extremely high temperatures in an oxygen-free
environment. For the year ending June 30, 2009, SinoCoking produced and sold 154,631 tons of coke, 55,360
tons of washed coal, and 72,923 tons of raw coal, and generated $51 million in revenue from sales consisting
primarily of these products. During its 2009 fiscal year, SinoCoking had audited net income of approximately $17
million on a GAAP basis.” 

Mr. Lv went on to say “We produce essential products that power the industrial growth of China – coal and coke,
and we see this moment as only the beginning of a long-term secular expansion. Currently, the demand from our
customers significantly exceeds our current production capacity, and we think that demand from Chinese industrial
purchasers will continue to increase. We are investing heavily in building our production capacity, and since we are a
larger producer that utilizes advanced manufacturing processes with less impact on the environment, we enjoy strong
support from the Henan provincial and local governments.

Although the Chinese government has recently taken steps to slow its rapid economic expansion, the Chinese
economy is nonetheless expected to grow at an annual rate of approximately 9% per year for the next five years,
according to government sources. Domestic steel demand is expected to grow at 10% per year over the same
period. China’s demand for coke is expected to be approximately 4.5 billion tons per year in the following years,
and as a nation it is now the largest producer and consumer of coking coal in the world. As a source of fuel,
approximately 70% of China’s energy consumption is derived from coal, and as such it is regarded as key element of
China’s energy policy and strategy. The Chinese government has also engaged in a policy of promoting consolidation
within the coal mining industry, as larger operators have been determined to operate more efficiently, with
consistently higher safety records and less environmental impact.” 

“Coal and coke are fundamentally important products to the growth of China. We believe that SinoCoking can mine,
produce, market and fulfill these products more effectively than many of our competitors. We also believe that right
now, there is no better market in the world to operate and grow our business than China,” said Mr. Lv. “On behalf
of SinoCoking, we are proud to complete this business combination with a U.S. publicly-traded company. Being a
U.S. public company will put us in a position to attract the capital that our company needs to expand our operations,
and create value for our shareholders.” 

About SinoCoking

Top Favour Limited, a British Virgin Islands holding company (“Top Favour”), through its wholly owned subsidiary 
Pingdingshan Hongyuan Energy Science and Technology Development Co., Ltd. (“Hongyuan”), controls Henan
Province Pingdingshan Hongli Coal & Coke Co., Ltd. (“Hongli”), a coal and coal-coke producer in Henan Province
in the central region of the People’s Republic of China (“PRC” or “China”). Hongli produces coke, coal, coal
byproducts and electricity through its branch operation, Baofeng Coking Factory, and its wholly owned subsidiaries,
Baofeng Hongchang Coal Co., Ltd. and Baofeng Hongguang Environment Protection Electricity Generating Co.,
Ltd. (collectively referred to as “SinoCoking”).

For further information about SinoCoking, please refer to the Definitive Proxy Statement of Ableauctions.com, Inc.
filed on Schedule 14A with the Securities and Exchange Commission on November 27, 2009.

For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com.For more
information, contact Investor Relations at investorrelations@ableauctions.com

This press release contains forward-looking statements, particularly as related to, among other things, the business
plans of the Company, statements relating to goals, plans and projections regarding the Company's financial position,
the Company's business strategy, the Company’s real estate development project, including the business of
SinoCoking. The words or phrases “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 global
recession, the performance of our staff and management, our ability to obtain financing, competition, general
economic conditions and other factors that are detailed in our Annual Report on Form 10-K and on documents we
file from time-to-time with the Securities and Exchange Commission. Factors that could cause our real estate
development results to differ materials from anticipated results include delay experienced during any phase of the
project development (such as in obtaining permits) or unforeseen problems (such as labor disputes, increasing
materials costs, or an inability to obtain adequate financing). Even if we are able to build the project, the market for
the units we build could decline. We cannot guarantee you that our building projects will be successful or that we will
be able to recover the money we put into them. If our building projects are unsuccessful, our business and our cash
flow will be materially adversely affected. Price changes may occur in the market as a whole, or they may occur in
only a particular company, industry, or sector of the market. Real estate values and mortgage loans can be seriously
affected by factors such as interest rate fluctuations, bank liquidity, the availability of financing, and by factors such as
a zoning change or an increase in property taxes. Since the majority of our investments are held in Canadian funds,
currency fluctuations may affect the value of our portfolio significantly. There can be no assurance that the securities
and other assets in which we have invested will increase, or even maintain, their value. Statements made herein are as
of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions
readers not to place undue reliance on such statements. The Company does not undertake, 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. Actual results may differ materially from the
Company's expectations and estimates.

Contacts
Ableauctions.com
Vid Wadhwani, 604-293-3933
investorrelations@ableauctions.com
www.ableauctions.com

Permalink: http://eon.businesswire.com/news/eon/20100204007054/en

				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:11
posted:2/5/2010
language:English
pages:3
Description: BURNABY, British Columbia--(EON: Enhanced Online News)--Ableauctions.com Inc. (AMEX:AAC) (the “Company”) released a statement today about its acquisition of SinoCoking, a coal and coke producer based in central China. “We are pleased to announce our acquisition of SinoCoking, a coal and coke producer based in the Henan Province in the People’s Republic of China,” said Abdul Ladha, Chief Executive Officer of Ableauctions.com, Inc. The closing of the acquisition is scheduled to occur at the close a style='font-size: 10px; color: maro
EON: Enhanced Online News EON: Enhanced Online News http://eon.businesswire.com
About At EON: Enhanced Online News, we show you how to make your online press release thrive. If you want to drive traffic to your website, generate sales leads, make an announcement, or promote a new product, EON: Enhanced Online News delivers the online visibility that you need. EON: Enhanced Online News powered by Business Wire.