HARBIN, CHINA and WALNUT, CA -- (MARKET WIRE) -- 04/10/08 -- Songzai International HoldingGroup, Inc. (the "Company") (OTCBB: SGZH), a coal producer and resellerbased in China, today announced consolidated financial results for thefourth quarter and full year ended December 31, 2007.FY2007 Revenue Increases 222.03% to $12.6 Million as compared to $3.8Million in FY2006
FY2007 Net Income Increases 479.6% to $4.08 Million as compared to $708,000in FY2006
In addition, on April 4, 2008, the Company closed a previously announcedtransaction to acquire a 90% equity stake in two Chinese coal miningcompanies: Heilongjiang Xing An Group Hong Yuan Coal Mining Co., Ltd.("Hong Yuan") and Heilongjiang Xing An Group Sheng Yu Ming Co., Ltd.("Sheng Yu"). Under the terms of the acquisition, Songzai issued 8 millionshares of its common stock and promissory notes totaling $30 million to theowners of Hong Yuan and Sheng Yu. The 8 million shares are held in escrowfor 2 years as security for certain indemnification obligations of theowners of Hong Yuan and Sheng Yu, except for those shares that may be soldunder SEC Rule 144, which will be released from escrow as Rule 144 becomesavailable for their resale. 60% of the principal amount of the promissorynotes are payable 6 months after the closing of the acquisition, and thebalance on the first anniversary of the closing, provided that the entirebalance will be due immediately if Songzai receives financing in excess of$30 million. The owners of Hong Yuan and Sheng Yu also placed the remaining10% of these companies' equity in trust for the benefit of Songzai.
"We are pleased with our year-end results for 2007 and the closing of ouracquisition of Hong Yuan and Sheng Yu," said Hongjun Li, President ofSongzai. "Hong Yuan and Sheng Yu will together add approximately 18 milliontons of coal reserve to our company. We look forward to integrating HongYuan and Sheng Yu into Songzai and in the process, we will seek synergisticefficiencies."
More detailed information about the acquisition of Hong Yuan and Sheng Yu,and Songzai's 2007 financial results may be found in the Company's AnnualReport on Form 10-K filed with the SEC on April 10, 2008.
About Songzai International Holding Group, Inc.
Songzai is a coal producer and reseller based in China. The companydistributes coal to both industrial customers, such as power plants andcement factories, and to individual consumers for home heating.
Forward-looking Statements
This press release contains forward-looking statements. These statementsare made under the ''safe harbor'' provisions of the U.S. PrivateSecurities Litigation Reform Act of 1995. You can identify theseforward-looking statements by terminology such as ''will,'' ''expects,''''believes,'' ''anticipates,'' ''intends,'' ''estimates'' and similarterms. Such statements reflect the current view of the Songzai with respectto future events and are subject to risks, uncertainties, assumptions andother factors relating to the coal mine industry and the operations ofSongzai. Should one or more of these risks or uncertainties materialize, orshould the underlying assumptions prove incorrect, actual results maydiffer significantly from those anticipated, believed, estimated, expected,intended or planned. This forward-looking information should be consideredonly in connection with "Risk Factors" detailed in Songzai's filings withthe Securities and Exchange Commission. Songzai assumes no obligations toupdate any forward-looking statements or information set forth in thispress release.
For more information, please contact:
Will Lu
IR Officer
Tel: (909) 468-2840
Email: Email Contact