Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced that its first fiscal quarter ended September 30, 2012 sales volume increased 17.8% year-over-year.

For the three-month period ended September 30, 2012, Longwei reported its product sales volume increased 17.8% year-over-year to 110,587 metric tons ("mt") compared to 93,862mt for the three-month period ended September 30, 2011. Fuel prices in the PRC increased in both August and September following three consecutive retail price cuts between May and June due to the fluctuation in the international price of crude oil. The current retail price level for gasoline of RMB 9,640/mt is approximately the same price level as May 2012. The Company began to realize higher average sales prices in September and in this current quarter ended December 31, 2012.

Longwei plans to hold a conference call on November 14, 2012 to discuss its financial results for the first fiscal quarter ended September 30, 2012. The Company will file its Form 10-Q on or before the filing date of November 14, 2012.  

"We are pleased to see the up-tick in our sales," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "The volume increase, combined with recent sales price increases and our purchase of the Huajie facility, positions us for strong growth in fiscal 2013." 

Apparent oil demand in China, the world's second-largest consumer, will increase by 340,000 barrels a day in 2013 as refiners increase output amid "modest" economic recovery, according to Barclays Plc. "Signs of improvement have emerged and China's underlying oil demand may have bottomed out and begun to recover," said Sijin Cheng, a Barclays Singapore-based analyst, in a research note on October 31, 2012. Apparent oil demand is the sum of production output and net imports of oil products, including diesel and gasoline.  China Daily (November 1, 2012).

"The Huajie facility nearly doubles our storage capacity to a total of 220,000 metric tons and extends our reach into the fast growing industrial area of northern Shanxi Province," stated Mr. Cai. "Since opening the facility, we have signed contracts with at least nine major regional industrial companies in mining, steel and logistics, and we are in negotiations with several more."

Longwei expects year-over-year revenue growth of approximately 26.6% to $646.3 million, and net income growth of approximately 24.2% to $77.6 million, adjusted for the warrant derivative liability, for the fiscal year ending June 30, 2013. This growth rate does not account for any external financing for inventory, which could accelerate growth. The growth is driven primarily by the ramp-up of the Huajie facility and organic growth at the Company's two existing facilities.

"The northern Shanxi region's growing industrial and vehicle market demand, combined with our proven ramp-up performance of our Gujiao facility since 2010, which has now grown to account for approximately 48% of our total product sales, or US $233.8 million at fiscal year-end 2012, strengthens our confidence that we can quickly ramp-up sales at the Huajie facility," said Michael Toups, Chief Financial Officer of Longwei.

Longwei is scheduling the date of its annual shareholder meeting to be held during December 2012. The Company also plans to host an investor and analyst day to invite shareholders and interested parties to tour its facilities in January 2013. The Company has received strong interest from institutional and private investors in visiting its facilities, including the new Huajie facility. Once plans are finalized, the Company will release additional details.

The Company recently reported revenues of US $510.6 million and net income of US $65.1 million for the fiscal year ended June 30, 2012. At the June 30, 2012 fiscal year-end, the Company reported total assets of US $342.3 million and a book value per share of $3.31.