DANVILLE, Calif., Sept. 28, 2010 (GLOBE NEWSWIRE) -- S3Investment Company, Inc. (Pink Sheets:SIVC) today commented on record financial results recently filed by Boyuan Construction Group, a client of S3's wholly owned Redwood Capital subsidiary. The financial results, which report revenue in excess of $147 million for Boyuan Construction Group in fiscal year 2010, reinforce the quality of the companies that Redwood Capital signs. Due to the success and growing profile of Redwood Capital in the China market, S3 intends to more closely associate itself with the Redwood name through a re-branding e of the public company.
The financial results for Boyuan Construction Group, for which Redwood Capital as the Chinese merchant banking advisor when it became listed on Canada's TSX Venture Exchange, reflect the three- and 12-month periods ended June 30, 2010. Revenue for the 12-month period ended June 30, 2010, was $147.3 million, up almost 45% from $101.7 million for the 2009 fiscal year. Gross profit was up 60% to $25.5 million and gross profit margins grew to more than 17%. Boyuan also exceeded its $12.4 million after tax net income target by more than 7%. Revenue for the three-month period ended June 30, 2010 was $43.7 million, up 6.4% from $41.1 million for the same period in 2009.
"The importance of these financial results for Boyuan Construction Group is two-fold," said S3 Investment Company Chairman and CEO Jim Bickel. "First, as a holder of Boyuan common stock, Redwood Capital benefits from the continued growth of the company, which recently graduated from the TSX Venture Exchange to the TSX Exchange. Additionally, the continued success of Redwood Capital clients, once they have completed the process of going public, demonstrates that Redwood targets very strong companies that will be successful once they have entered the North American public markets. This gives greater confidence to investors who may participate in the financing transaction that go along with the public market listings, and provides an excellent example to private companies in China of how going public in North American can contribute to even greater future success.
"Because Redwood Capital has been so successful, we are currently implementing a plan to rename S3 Investment Company to more closely associate it with our Redwood subsidiaries operating in China. The S3 name came from the company's past operations and is no longer reflective of either its current businesses or its tremendous upside potential. We not only have Redwood Capital and our Redwood Medical subsidiaries, but we are also undertaking an expansion of Redwood's subsidiary operations to include at least two additional Redwood businesses.
"There will be more information on the re-branding and subsidiary expansion in the near future. As a company that is committed to full transparency as it grows, we will continue to report our financial information through the OTC markets system at , where S3 has achieved 'Current Information' status. This is an ongoing assurance to shareholders that up-to-date financial information will remain available for their review and that we welcome the closest scrutiny possible as the public company charts a more ambitious path forward."
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About S3 Investment Company, Inc.
S3 Investment Company, Inc. () 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 . 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.
CONTACT: S3 Investment Company Investor Relations 951-200-4107 email@example.com