> If we fail to establish an effective system of internal controls, we
> may be unable to accurately report our
> financial results or prevent fraud, and investor confidence and the
> market price of our ADSs may be
> adversely impacted.
> We are subject to reporting obligations under U.S. securities laws and
> AIM rules. The U.S. Securities and
> Exchange Commission, or the SEC, as required by Section 404 of the
> Sarbanes-Oxley Act of 2002, or the
> Sarbanes-Oxley Act, has adopted rules requiring every public company
> to include a management report on
> such company’s internal control over financial reporting in its annual
> report, which contains management’s
> assessment of the effectiveness of the company’s internal control over
> financial reporting. In addition, an
> independent registered public accounting firm must audit and report on
> the effectiveness of the company’s
> internal control over financial reporting. This requirement first
> applied to this annual report on Form 20-F for
> the fiscal year ending on December 31, 2008. Our reporting obligations
> as a public company have placed, and
> will continue to place, a significant strain on our management,
> operational and financial resources and systems
> for the foreseeable future.
> During the preparation of our consolidated financial statements for
> the year ended December 31, 2007,
> we identified a material weakness and certain deficiencies in our
> internal control over financial reporting, as
> defined in the standards established by the U.S. Public Company
> Accounting Oversight Board. The material
> weakness identified related to our failure to apply, or failure to
> apply in a consistent manner, certain aspects of
> accounting policies and procedure, such as inadequate formal
> documentation of the control procedures on the
> financial reporting of certain subsidiaries and inadequate control
> procedures to identify and apply relevant
> accounting treatment to non-routine transactions. If we had performed
> a thorough assessment of our internal
> control over financial reporting or if our independent registered
> public accounting firm had performed an audit
> of our internal control over financial reporting, additional material
> weaknesses, significant deficiencies or
> control deficiencies might have been identified.
> We have ratified these material weakness and deficiencies, and we have
> concluded that our internal
> control over financial reporting was effective for our fiscal year
> ended December 31, 2008. If we fail to
> maintain the adequacy of our internal controls, our management may
> conclude that our internal control over
> financial reporting is not effective in the future. Moreover,
> effective internal control over financial reporting is
> necessary for us to produce reliable financial reports and to prevent
> fraud. As a result, our failure to achieve
> and maintain effective internal control over financial reporting could
> result in the loss of investor confidence
> in the reliability of our financial statements, which in turn could
> harm our business and negatively impact the
> market price of our ADSs.

> You may face difficulties in protecting your interests, and your
> ability to protect your rights through the
> U.S. federal courts may be limited, because we are incorporated under
> British Virgin Islands law, conduct
> substantially all of our operations in China and most of our officers
> and directors reside outside the United
> States.
> We are incorporated in the British Virgin Islands, and conduct
> substantially all of our operations in China
> through our wholly-owned subsidiary in China. Most of our officers and
> directors reside outside the United
> States, and some or all of the assets of those persons are located
> outside of the United States. As a result, it
> may be difficult or impossible for you to bring an original action
> against us or against these individuals in a
> British Virgin Islands or China court in the event that you believe
> that your rights have been infringed under
> the U.S. federal securities laws or otherwise. Even if you are
> successful in bringing an action of this kind, the
> laws of the British Virgin Islands and of China may render you unable
> to enforce a judgment against our
> assets or the assets of our directors and officers. There is no
> statutory recognition in the British Virgin Islands
> of judgments obtained in the United States, although the courts of the
> British Virgin Islands will generally
> recognize and enforce a non-penal judgment of a foreign court of
> competent jurisdiction without retrial on the
> merits

> With all these announcements, don't be surprised if it opens at 1.50

> On Nov 1, 5:38 pm, f f <sdfso...@gmail.com> wrote:

> > If we fail to establish an effective system of internal controls, we
> > may be unable to accurately report our
> > financial results or prevent fraud, and investor confidence and the
> > market price of our ADSs may be
> > adversely impacted.
> > We are subject to reporting obligations under U.S. securities laws and
> > AIM rules. The U.S. Securities and
> > Exchange Commission, or the SEC, as required by Section 404 of the
> > Sarbanes-Oxley Act of 2002, or the
> > Sarbanes-Oxley Act, has adopted rules requiring every public company
> > to include a management report on
> > such company’s internal control over financial reporting in its annual
> > report, which contains management’s
> > assessment of the effectiveness of the company’s internal control over
> > financial reporting. In addition, an
> > independent registered public accounting firm must audit and report on
> > the effectiveness of the company’s
> > internal control over financial reporting. This requirement first
> > applied to this annual report on Form 20-F for
> > the fiscal year ending on December 31, 2008. Our reporting obligations
> > as a public company have placed, and
> > will continue to place, a significant strain on our management,
> > operational and financial resources and systems
> > for the foreseeable future.
> > During the preparation of our consolidated financial statements for
> > the year ended December 31, 2007,
> > we identified a material weakness and certain deficiencies in our
> > internal control over financial reporting, as
> > defined in the standards established by the U.S. Public Company
> > Accounting Oversight Board. The material
> > weakness identified related to our failure to apply, or failure to
> > apply in a consistent manner, certain aspects of
> > accounting policies and procedure, such as inadequate formal
> > documentation of the control procedures on the
> > financial reporting of certain subsidiaries and inadequate control
> > procedures to identify and apply relevant
> > accounting treatment to non-routine transactions. If we had performed
> > a thorough assessment of our internal
> > control over financial reporting or if our independent registered
> > public accounting firm had performed an audit
> > of our internal control over financial reporting, additional material
> > weaknesses, significant deficiencies or
> > control deficiencies might have been identified.
> > We have ratified these material weakness and deficiencies, and we have
> > concluded that our internal
> > control over financial reporting was effective for our fiscal year
> > ended December 31, 2008. If we fail to
> > maintain the adequacy of our internal controls, our management may
> > conclude that our internal control over
> > financial reporting is not effective in the future. Moreover,
> > effective internal control over financial reporting is
> > necessary for us to produce reliable financial reports and to prevent
> > fraud. As a result, our failure to achieve
> > and maintain effective internal control over financial reporting could
> > result in the loss of investor confidence
> > in the reliability of our financial statements, which in turn could
> > harm our business and negatively impact the
> > market price of our ADSs.

> > You may face difficulties in protecting your interests, and your
> > ability to protect your rights through the
> > U.S. federal courts may be limited, because we are incorporated under
> > British Virgin Islands law, conduct
> > substantially all of our operations in China and most of our officers
> > and directors reside outside the United
> > States.
> > We are incorporated in the British Virgin Islands, and conduct
> > substantially all of our operations in China
> > through our wholly-owned subsidiary in China. Most of our officers and
> > directors reside outside the United
> > States, and some or all of the assets of those persons are located
> > outside of the United States. As a result, it
> > may be difficult or impossible for you to bring an original action
> > against us or against these individuals in a
> > British Virgin Islands or China court in the event that you believe
> > that your rights have been infringed under
> > the U.S. federal securities laws or otherwise. Even if you are
> > successful in bringing an action of this kind, the
> > laws of the British Virgin Islands and of China may render you unable
> > to enforce a judgment against our
> > assets or the assets of our directors and officers. There is no
> > statutory recognition in the British Virgin Islands
> > of judgments obtained in the United States, although the courts of the
> > British Virgin Islands will generally
> > recognize and enforce a non-penal judgment of a foreign court of
> > competent jurisdiction without retrial on the
> > merits