SAN MATEO, Calif., June 29, 2015 (GLOBE NEWSWIRE) -- Armco Metals Holdings, Inc. ("Armco Metals Holdings" or "the Company") (NYSE MKT:AMCO), a distributor of imported metal ores and a steel recycler in China, today announced that its Armco (Lianyungang) Renewable Metals, Inc. subsidiary ("Armco Renewable Metals") will benefit substantially from the new incentive policy that renewable resources industry is set for value-added tax ("VAT") rebate effective on July 1, 2015, ranging from 30% to 100% depending upon the commodity, among which rebate for ferrous scrap is 30%, according to a statement from Ministry of Finance of P.R.C on Thursday, June 25, 2015.
The VAT rebate policy was once implemented in year 2009 and 2010 but ceased in year 2011 due to consideration for industry rectification and environmental protection. The policy effective on July 1, 2015 mainly applies to qualified processing recyclers rather than upstream scattered collectors and downstream steel mill. Armco Renewable Metals received approval for operation according to the "Standards of Entering the Scrap Steel Processing Industry" in the middle of 2014 and has been certified as a Demonstration Base for Steel Scrap Processing and Distribution by the China Steel Scrap Industrial Associations in early 2013, and thus is qualified for the favorable policy.
Armco Metals Holdings will benefit directly and substantially from the new VAT rebate policy. Effective on July 1, 2015, the Company's main products ferrous scrap and waste plastics will have a 30% and 50% of VAT rebate, respectively. The Company's revenue from selling ferrous scrap and waste plastics in the first quarter of 2015 amounted $15 million.
"It is a long-expected policy for the Company and our shareholders, tax rebate means a cut in costs , an expected approximately 5% or so raise in gross profit per metric ton for the related products for us, an encourage to steel scrap utilization for steel mill and support for qualified players in the industry." Commenting on the announcement, Kexuan Yao, Chairman and CEO of Armco Metals Holdings, stated, "In addition, China is likely to expand a pilot reform to replace business tax with value-added tax (VAT) to the construction and real estate sectors in year 2015 according to the media reports. Given that more effective control on management and authentication for VAT than business tax, we believe we will gain more competitive power in a more regulated and fair competition market environment."
ABOUT ARMCO METALS HOLDINGS, INC.
Armco Metals Holdings, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout China and is in the recycling business in China. Armco Metals' customers include some of the fastest growing steel producing mills and foundries throughout China. Raw materials are acquired from a global group of suppliers located in various countries, including, but not limited to, Brazil, India, Indonesia, Ukraine and the United States. Armco Metals' product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore, steel billet, recycled scrap metals, raw wood and barley. For more information about Armco Metals, please visit http://www.armcometals.com.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Armco Metals Holdings, Inc., is hereby providing cautionary statements identifying certain important factors that could cause our actual results to differ materially from those projected in forward-looking statements. Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") are forward-looking and involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding the ability to benefit from the changes in the tax laws in the PRC, our net revenues and production related to our scrap metal recycling operations, including our ability to operate the facility efficiently and profitability, the sufficiency of our working capital, pricing and volatile demand for our product lines, the extent of government imposed energy and monetary policy restrictions and resulting blackouts and associated impact on our trading and recycling operations. We caution that investors should not place undue reliance on any forward-looking statements herein. Further, any forward-looking statement speaks only as of the date on which such statement is made. We qualify all of our forward-looking statements in this press release by these cautionary statements including those made in Part II, Item 1A. Risk Factors appearing in our Quarterly Report on Form 10-Q for the period ended March 31, 2015, as well as in Part I. Item 1A. Risk Factors appearing in our Annual Report on Form 10-K for the year ended December 31, 2014 and our other filings with the Securities and Exchange Commission. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.