DANVILLE, CA, Oct 29, 2009 (MARKETWIRE via COMTEX) -- S3 Investment Company,
Inc. (PINKSHEETS: SIVC) today issued comments on recently reported financial
results filed by Boyuan Construction Group, Inc., a client of S3's wholly owned
Redwood Capital subsidiary, in which Boyuan Construction reported significant
revenue increases over previous periods. As a result of Redwood Capital's
participation as the Chinese merchant banking advisor in the reverse takeover
transaction that resulted in Boyuan Construction being listed on the TSX Venture
Exchange, Redwood Capital received shares of Boyuan common stock. Additional
Boyuan shares have been granted to Redwood Capital as Boyuan completed
additional subsequent rounds of funding.
Boyuan Construction Group, a fast-growing construction company in China of
commercial, residential and municipal infrastructure projects, reported that
revenue for the fourth quarter ended June 30, 2009 was $41.1 million, up 134.9%
from $17.5 million for Q4 of FY2008. Revenue for the 12-month period of FY2009
was $101.7 million, an increase of 81% when compared to FY2008. Th e significant
year-over-year growth was primarily attributable to an increase in the number of
successful project bids by Boyuan Construction as well as an increase in demand
for construction and engineering services in the Yangtze River Delta and Sanya
regions, Boyuan's core markets. Higher demand for construction and engineering
services is due to ongoing urban migration and an expansion of China's middle
class, which drive the need for new housing, commercial and public
infrastructure projects.
Gross profit for the fourth quarter of FY2009 was $7.4 million, representing a
margin of 18% on revenue. Gross profit for the same period last year was $3.7
million, representing a margin of 21% on revenue. Gross profit for FY2009
increased 61.6% to $16 million from $9.9 million for FY2008. Income from
operations for the fourth quarter of FY2009 was $5.7 million, up 90% from $3.0
million for Q4 FY2008. Income from operations for FY2009 was $13.5 million, an
increase of 58.8% when compared to FY2008. Net income for the fourth quarter of
FY2009 was $2.3 million, up 27% from $1.8 million for Q4 FY2008. Net income for
FY2009 was $7.9 million, an increase of 27.4% when compared to $6.2 million for
FY2008.
Additional details of the financial results can be found in a press release
issued by Boyuan Construction on October 26, 2009 and the filing itself is
available via SEDAR at www.sedar.com.
"The record revenue reported by Boyuan Construction is further validation of our
work to bring this company to the North American markets," said S3 Chairman and
CEO Jim Bickel. "The continued success of Redwood Capital clients also impacts
the financial performance of S3, since the stock that Redwood Capital receives
as compensation is included as an asset in S3's consolidated financial
statements. In the case of Boyuan Construction, S3 reported the receipt of
798,002 shares of Boyuan stock in its most recent annual report. We expect this
type of compensation to continue to be a major portion of the value on the
company's balance sheet, and we are working to complete additional Redwood
Capital transactions in order to build this value even further."
To sign up to receive information by email directly from S3 Investment Company
when new press releases, investor newsletters, SEC filings or other information
is disclosed, please visit www.s3investments.com/investors/.
About S3 Investment Company, Inc.
S3 Investment Company, Inc. (www.s3investments.com) and its Redwood Group
International subsidiary are focused on facilitating the success of two
subsidiaries operating in the China market. Redwood Capital, Inc. assists
private Chinese companies in accessing the North American capital markets by
utilizing a network of investment banking relationships to achieve reverse
merger transactions. For more information, please visit
www.redwoodcapinc.com. Redwood Medical, Inc. assists companies seeking to
import and distribute Western medical technologies and products into the China
market.
Any statements contained herein related to future events are forward-looking
statements and are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Readers are cautioned not to place
undue reliance on forward-looking statements. S3 Investment Company, Inc.
undertakes no obligation to update any such statements to reflect actual events.
Contacts
For S3 Investment Company
Gemini Financial Communications, Inc.
951-200-4107
Email Contact
SOURCE: S3 Investment Company
CONTACT: www2.marketwire.com/mw/emailprcntct?id=558755168C887777
Copyright 2009 Marketwire, Inc., All rights reserved.
Viel Erfolg
muenther
Inc. (PINKSHEETS: SIVC) today issued comments on recently reported financial
results filed by Boyuan Construction Group, Inc., a client of S3's wholly owned
Redwood Capital subsidiary, in which Boyuan Construction reported significant
revenue increases over previous periods. As a result of Redwood Capital's
participation as the Chinese merchant banking advisor in the reverse takeover
transaction that resulted in Boyuan Construction being listed on the TSX Venture
Exchange, Redwood Capital received shares of Boyuan common stock. Additional
Boyuan shares have been granted to Redwood Capital as Boyuan completed
additional subsequent rounds of funding.
Boyuan Construction Group, a fast-growing construction company in China of
commercial, residential and municipal infrastructure projects, reported that
revenue for the fourth quarter ended June 30, 2009 was $41.1 million, up 134.9%
from $17.5 million for Q4 of FY2008. Revenue for the 12-month period of FY2009
was $101.7 million, an increase of 81% when compared to FY2008. Th e significant
year-over-year growth was primarily attributable to an increase in the number of
successful project bids by Boyuan Construction as well as an increase in demand
for construction and engineering services in the Yangtze River Delta and Sanya
regions, Boyuan's core markets. Higher demand for construction and engineering
services is due to ongoing urban migration and an expansion of China's middle
class, which drive the need for new housing, commercial and public
infrastructure projects.
Gross profit for the fourth quarter of FY2009 was $7.4 million, representing a
margin of 18% on revenue. Gross profit for the same period last year was $3.7
million, representing a margin of 21% on revenue. Gross profit for FY2009
increased 61.6% to $16 million from $9.9 million for FY2008. Income from
operations for the fourth quarter of FY2009 was $5.7 million, up 90% from $3.0
million for Q4 FY2008. Income from operations for FY2009 was $13.5 million, an
increase of 58.8% when compared to FY2008. Net income for the fourth quarter of
FY2009 was $2.3 million, up 27% from $1.8 million for Q4 FY2008. Net income for
FY2009 was $7.9 million, an increase of 27.4% when compared to $6.2 million for
FY2008.
Additional details of the financial results can be found in a press release
issued by Boyuan Construction on October 26, 2009 and the filing itself is
available via SEDAR at www.sedar.com.
"The record revenue reported by Boyuan Construction is further validation of our
work to bring this company to the North American markets," said S3 Chairman and
CEO Jim Bickel. "The continued success of Redwood Capital clients also impacts
the financial performance of S3, since the stock that Redwood Capital receives
as compensation is included as an asset in S3's consolidated financial
statements. In the case of Boyuan Construction, S3 reported the receipt of
798,002 shares of Boyuan stock in its most recent annual report. We expect this
type of compensation to continue to be a major portion of the value on the
company's balance sheet, and we are working to complete additional Redwood
Capital transactions in order to build this value even further."
To sign up to receive information by email directly from S3 Investment Company
when new press releases, investor newsletters, SEC filings or other information
is disclosed, please visit www.s3investments.com/investors/.
About S3 Investment Company, Inc.
S3 Investment Company, Inc. (www.s3investments.com) and its Redwood Group
International subsidiary are focused on facilitating the success of two
subsidiaries operating in the China market. Redwood Capital, Inc. assists
private Chinese companies in accessing the North American capital markets by
utilizing a network of investment banking relationships to achieve reverse
merger transactions. For more information, please visit
www.redwoodcapinc.com. Redwood Medical, Inc. assists companies seeking to
import and distribute Western medical technologies and products into the China
market.
Any statements contained herein related to future events are forward-looking
statements and are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Readers are cautioned not to place
undue reliance on forward-looking statements. S3 Investment Company, Inc.
undertakes no obligation to update any such statements to reflect actual events.
Contacts
For S3 Investment Company
Gemini Financial Communications, Inc.
951-200-4107
Email Contact
SOURCE: S3 Investment Company
CONTACT: www2.marketwire.com/mw/emailprcntct?id=558755168C887777
Copyright 2009 Marketwire, Inc., All rights reserved.
Viel Erfolg
muenther