DANVILLE, CA, Apr 24 (MARKET WIRE) --
S3 Investment Company, Inc. (PINKSHEETS: SIVC), a holding company with
two subsidiaries doing business in the China market, today issued its April
2008 investor newsletter, which provides a re-cap of recent news related to
the company, including updated financial information for Dalian Chuming, a
client
of its Redwood Capital subsidiary that was the target of a successfully closed
acquisition transaction with a U.S. public company.
The newsletter also reviews the announcement of a new client for Redwood
Capital,
Shandong Yiteng Chemical Co., Ltd. a leading manufacturer of chemicals in
China, including hydroxypropyl cellulose and polyanionic cellulose.
A PDF version of the April 2008 newsletter can be viewed on the company's
website
at http://www.s3investments.com/media/news/.
S3 Chairman and Chief Executive Officer Jim Bickel recently addressed the
company's focus on reverse merger transactions by its Redwood Capital
subsidiary,
which assists private Chinese companies in accessing the U.S. capital markets
through reverse mergers into U.S. public companies.
In his greeting to shareholders, Mr. Bickel lauded the success of the
Chuming
transaction and stated, "As the news has indicated, the last several months
have been very busy ones for S3 and its operating subsidiaries.
"The highlight of this period would have to be the successful close of the
Dalian Chuming acquisition by Energroup Holdings Corporation, publicly traded
here
in the U.S. Given the value of Dalian Chuming, as evidenced by its recently
disclosed 2007 year-end financials, participating in this transaction was
truly a watershed event in the history of Redwood Capital. Sourcing new deals
becomes much easier after participating in a transaction of that magnitude.
"Management continues to work on the details of the plan to dividend
sharesof the stock of Redwood Capital's reverse merger clients to S3
shareholdersof record at a future date. The company continues to explore all
options
inthis regard with its SEC counsel, and we will discuss the plans to implement
such a dividend as soon as possible. We must ensure that all of the
appropriate steps are followed and that all potential legal and SEC
compliance issues are addressed."
Dalian Chuming is a pork processing company that now trades in the U.S. as
Energroup Holdings Corporation under the symbol ENHD. Energroup Holdings
Corporation, a Nevada corporation, acquired all of the issued and outstanding
capital stock of Precious Sheen Investments Limited ("PSI"), a British
Virgin Islands corporation and parent company of PRC-based Dalian Chuming.
Redwood Capital was issued 428,095 shares of Energroup Holdings
Corporationas the equity portion of its payment for provided advisory services
for
thetransaction. Institutional and accredited investors participated in a
$17.0 million private placement with Energroup Holdings Corporation,
paying$4.40 per share. At the placement price, the value of Redwood Capital's
equity
position would exceed $1.8 million. At the most recent trading price of
Energroup Holdings Corporation's common stock, the value of the equity position
would exceed $2.1 million.
Energroup Holdings Corporation has since reported that revenues for the year
ended December 31, 2007 totaled $124.7 million, a 77% increase over the $70.4
million reported in 2006. Gross profit for 2007 was $20.3 million,
representing a 61% increase from the $12.6 million reported in 2006.
Overall, gross margins were 16.3% in 2007, compared to 17.9% in 2006.
Total operating expenses for 2007 were $6.2 million versus $2.9 million
for2006. Operating income increased 70% to $14.1 million in 2007 versus $9.7
million for 2006, while operating margins were 11.3% compared to 13.8%. After
tax net income for 2007 increased 44% year-over-year to $11.7 million from $8.1
million and earnings per diluted share were $0.67 in 2007 as compared with
$0.47 per share in the prior year, based upon 17.3 million shares outstanding.
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 http://www.s3investments.com/investors/.
About S3 Investment Company
S3 Investment Company, Inc. (http://www.s3investments.com) is a holding
company
with two subsidiaries doing business in the China market. S3 holds a 100%
equity interest in Redwood Capital (http://www.redwoodcapinc.com), which assists
private Chinese
companies in accessing U.S. capital markets by utilizing a network of investment
banking relationships to achieve reverse merger transactions, and a 51% equity
interest in SINO UJE (http://www.sinouje.com), a non-stocking distributor of
medical and industrial high-tech products to markets throughout China.
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.
Contact:
For S3 Investment Company
Gemini Financial Communications, Inc.
A. Beyer
(951) 677-8073
Email Contact
Copyright 2008, Market Wire, All rights reserved.
-0-
