LOS ANGELES and ANHUI, China, March 31, 2008 (PRIME NEWSWIRE) -- China Runji Cement Inc. (OTCBB: CRJI) ("Runji" or "the Company"), a leading cement manufacturing and distribution company headquartered in Anhui Province, in the People's Republic of China ("PRC"), today announced that it has retained CCG Elite Investor Relations ("CCG Elite") to design and execute its investor relations campaign.
Established in December 2003, Runji commenced manufacturing operations in October 2005. Runji's product scope includes several different product lines of cement marketed under the Runji brand name, including P.II52.5 P.O42.5, P.O32.5 and P.C32.5 cements. P.II52S is one of Runji's newer products and is a high grade, high strength cement used in large projects such as large span bridges and beams. The Company's products are highly regarded for quality, durability and strength. The Company has a well-established and sophisticated quality control system and has held ISO 9001 quality system certification since 2006. In the three months ended November 30, 2007, Runji generated revenue of $10.3 million and net income of $1.4 million, up from revenue of $7.4 million and net income of $0.1 million in the same period in 2006.
"We look forward to working with CCG Elite to increase visibility in both the financial media and the investment community as we seek to raise our profile in China's rapidly growing cement industry," said Mr. Shouren Zhao, the Company's CEO. "With key resources, technology and proximity to some of eastern China's most dynamic markets, Runji is well situated to execute our growth plan and expand business significantly over the next several years."
Runji currently has one production line in operation with a daily capacity of 2,500 tons, or one million tons per year. A second production facility is currently under construction and is expected to be completed in October 2008. Furthermore, Runji is in the preliminary planning stages to add several more production lines over the next three years, eventually increasing annual capacity to 6 million tons.
Total cement production is estimated at 2.2 billion tons globally per year with an annual growth rate of roughly 3%. China is currently the largest manufacturer of cement in the world with 44% of total production. The country's high volume of cement production is chiefly fueled by its rapid economic expansion - average economic growth rates of 9% have led to a growth rate within the cement industry of 10%. External demand has contributed to a growth in the cement industry as well, as developed countries with more stringent environmental standards have outsourced production abroad. China's cement industry is still highly fragmented with 5,000 manufacturers with annual revenues exceeding RMB 5 million ($0.7 million).
Of the 170 cement businesses in Anhui province, Runji leads 85% of competitors in output and quality standards. While currently focused on markets within Anhui province, the Company plans to leverage its innovative technology, strong R&D capabilities and its increasing brand presence in the cement industry to increase sales and distribution in neighboring provinces and cities in Eastern China.
"We are excited to be working with such a promising client in an industry which is vital to China's rapid economic development," said Crocker Coulson, President of CCG Elite. "Given the Company's strong management and plans for growth, Runji presents an attractive investment opportunity with the potential to build shareholder value over the long term."
About China Runji Cement, Inc.
Founded in 2003, China Runji Cement, Inc., is one of the leading players in cement production and distribution. In October 2007, the Company became a U.S. public company following the completion of a share exchange transaction with Fitmedia Inc. The Company's certified manufacturing facilities containing cutting-edge technology and advanced equipment and are capable of producing as much as 1 million tons of cement annually. Furthermore, the Company's solid distribution network and customer-orientated services have earned Runji's products a superior reputation among its customers. Headquartered in Anhui Province, the Company has already set up offices in major cities such as Hefei, Nanjing, Liu'an and many other locations. For more information on the Company and its products, please visit http://www.chinarunji.com/index.asp.
About CCG Elite
CCG Elite is uniquely positioned to provide an outsourced, high-level investor relations solution that combines in-depth understanding of Asia's corporate culture and economic scene with a direct pipeline into the leading funds and broker-dealers in the United States. CCG Elite is a global, full-service investor relations agency with corporate headquarters in Los Angeles, and offices in New York, Newport Beach, Dallas, Hong Kong, Beijing and Shanghai. For further information, contact CCG Elite or visit the Company's website at http://www.ccgelite.com.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements" as defined in the Securities Act of 1933, and the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein are "forward-looking statements." Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.