GeoInvesting Research, GeoAlerts, and GeoWire Releases

Asia Carbon Industries (ACRB) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Results

Revenues for the quarter ended March 31, 2012 were $12.6 million, down 6% from $13.4 million for the same period in 2011.
Gross profit was $2.93 million in the quarter ended March 31, 2012, a decrease of 8% from $3.18 million for the same period in 2011.
Net income for the quarter ended March 31, 2012 was $1.81 million, a decrease of 14% from $2.11 million for the same period in 2011.
Earnings per share remained at $0.04 for the quarter ended March 31, 2012 and 2011, respectively.
Tonnage sales of carbon black increased to 12,573 tons in the quarter ended March 31, 2012, up 3.5% from 12,140 tons in the same period in 2011.
Naphthalene oil sales more than doubled to 1,050 tons in the quarter ended March 31, 2012, as compared to 500 tons in the same period of 2011.

Yao Guoyun, Asia Carbon's Chairman of the Board and Chief Executive Officer, commented, "I am pleased with Asia Carbon's performance this quarter. Carbon black unit sales increased 3.5% and naphthalene oil sales more than doubled compared to the same period of 2011. And while our results were affected by depressed carbon black market prices, we believe this trend has reversed and anticipate that prices will shortly return to previous levels."

Ms. Yao further stated, "Carbon black is a critical material for tire manufacturers, and China's tire production continues to increase. This is true for our customers, many of whom are expanding their operations. In order to meet continuing demand for our products, management is evaluating a number of options to build capacity, both organically and through acquisitions. Either alternative would be funded through a combination of operating income and outside sources."

Axesstel (AXST) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Results

Axesstel reported revenues for the first quarter of 2012 of $12.0 million vs revenue of $12.6 in the prior year period.
Net income of $472,000, or $0.02 per diluted share vs a net loss of $539,000, or a loss of $0.02 per share, for the same period in the prior year.

"The first quarter of 2012 marks our third consecutive quarter of profitability since completing the transition of our business in mid-2011," said Clark Hickock, chief executive officer of Axesstel. "The results of that transition were evident this quarter with a swing in profitability of more than $1.0 million compared to the same period last year, despite slightly lower revenues."

In mid-2011, the company completed a two-year initiative to diversify its manufacturing capabilities in China, produce lower cost products, improve gross margins and reduce operating costs. The company also shifted its customer focus to concentrate on servicing major carriers in specific markets and focused its product development initiatives on addressing the unique requirements of those customers. The company reiterated that its operating goal for 2012 is to achieve consistent quarterly profitability and year-over-year revenue growth.

"Revenues for the first quarter were lower than the third and fourth quarter of 2011 primarily as a result of the timing of customer orders," continued Hickock. "A number of our key customers periodically place large orders with us and the timing of shipment materially impacts our quarterly operating results. Looking forward in 2012, we have significant orders for our Sprint terminal product for delivery in both the second and third quarters as a result of Sprint's recently increased marketing efforts for its nationwide 'Sprint Phone Connect' wire-line replacement program. We also anticipate strong revenue from Europe, as two of our primary customers there have launched our new 4G EV-DO Rev. B Wi-Fi gateway with VoIP capability into their markets."

Biostar Pharmaceuticals (BSPM) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 vs. First Quarter 2011

Net sales increased 4.0% to $15,899,541 from $15,288,927;
Gross margin decreased to 68.2% as compared to 69.9%;
Income from operations decreased to $3,187,824, as compared to $3,728,163; and,
Net income decreased to $2,167,415, or $0.23 per diluted share, as compared to $2,723,513, or $0.30 per diluted share.(1)
Net income for first quarter of 2012 included $791,127 in research and development (R&D) expense which was not included in the first quarter of 2011. Excluding that expense, net income for the first quarter of 2012 was $2,958,542, or $0.32 per diluted share.

Ronghua Wang, Biostar's Chief Executive Officer and Chairman commented, "The 4% increase in total net sales for the 2012 first quarter was due to approximately $1.6 million of net sales of products manufactured at the Weinan facility, offset by a slight decrease in sales for Xin Aoxing and all other products manufactured at the Xianyang facility."

Mr. Wang concluded, "Our 2012 goals are to grow our business by:

Continuing to make efforts to increase the market share of our current products, while introducing additional new products as we have a large portfolio of OTC and prescription drugs already approved by SFDA.
Introducing a new OTC product later this year which we believe has the potential to become another flagship product, similar to Xin Aoxing. Based upon our research, this product addresses a large underserved market and we therefore expect it to become a growth catalyst for Biostar.
Continue bidding on new hospital contracts for prescription drugs. We are encouraged by the recently won bid to supply hospitals based in the provinces of Liaoning, Hebei and Shandong with Huangyangning Tablets for up to three years. This win marked an important milestone, as hospital contracts for prescription drugs provide us with a more predictable recurring revenue stream."

China Gengsheng Minerals (CHGS) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Financial Highlights:

Revenue decreased 15.3% year-over-year to approximately $13.7 million.
- Refractories sales were approximately $9.9 million, compared with approximately $9.9 million in the first quarter of 2011.
- Fine precision abrasives product sales were approximately $2.4 million, compared with approximately$819,000 in the first quarter of 2011.
- Fracture proppant sales were approximately $998,000, compared with approximately $5.2 million in the first quarter of 2011.
Gross profit was approximately $2.7 million, or 19.8% of total sales, compared with approximately $4.3 million, or 26.5% of total sales in the same period a year ago.
Total operating expenses increased to approximately $4.4 million, compared with approximately $3.6 millionin the first quarter of 2011.
Net loss attributable to the Company was approximately $2.9 million, or $0.11 per share, compared with net loss of approximately $80,000, or $0.003 per share in the first quarter of 2011.
As of March 31, 2012, the Company had cash and cash equivalents of approximately $2.7 million, total equity of approximately $51.1 million and working capital of approximately $8.4 million.

"We experienced a disappointing quarter as a result of weak sales in fracture proppants segment. The continued slowdown in the steel industry also had an unfavorable impact on us," said Mr. Shunqing Zhang, China GengSheng's Chairman and Chief Executive Officer. "While financing costs and operating expenses weighed on our results for the first quarter of 2012, we continue to work towards increasing sales and improving profitability thus create sustainable value for our shareholders."

China Housing & Land (CHLN) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Highlights for Q1 2012:

Total revenue in the first quarter of 2012 decreased 50.9% to $23.5 million from $47.9 million in the fourth quarter of 2011 and increased 4.2% from $22.6 million in the first quarter of 2011.
Total gross floor area ("GFA") sales were 17,090 sq. meters during the first quarter of 2012, compared to 44,631 sq. meters in the fourth quarter of 2011 and 28,438 sq. meters in the first quarter of 2011.
Average residential selling price ("ASP") in the first quarter of 2012 was RMB 7,407, compared with RMB 6,301 in the fourth quarter of 2011, and RMB 6,115 in the first quarter of 2011.
Gross profit increased 2.1% to $7.0 million from $6.9 million in the fourth quarter of 2011 and increased 22.8% from $5.7 million in the first quarter of 2011. First quarter 2012 gross margin was 29.9% compared to 14.4% in the fourth quarter of 2011 and 25.4% in the first quarter of 2011.
SG&A expenses as a percentage of total revenue increased to 12.9%, compared to 7.0% in the fourth quarter of 2011 and decreased from 15.2% in the first quarter of 2011.
Operating income increased 58.8% to $3.4 million from $2.2 million in the fourth quarter of 2011, and increased 159.8% from $1.3 million in the first quarter of 2011.
Net income attributable to the Company in the first quarter of 2012 was $2.2 million, or $0.06 per diluted share.

Mr. Pingji Lu, China Housing's Chairman, commented, "Despite the expected slowdown in real estate market, our financial results for the first quarter were stronger than expected in a seasonally slower quarter for China Housing. We adjusted our product supply at our Puhua projects in the first quarter making a larger number of lower cost units with lower average GFA available to drive sales. Our three active projects in the first quarter, JunJing III, Puhua Phase I and Puhua Phase II, continued to generate the majority of total revenue. Average selling prices at JunJing III were higher than our prior quarter resulting in gross profit margin above 30%. Our three active projects resulted in GFA sales of 14,994 square meters and average selling price ofRMB 7,074. According to E-House (China) Real Estate Research Institute, total GFA sales inXi'an were 1.8 million sq. meters from 2.5 million sq. meters in the fourth quarter 2011 and the average residential sale price in Xi'an was RMB 7,703 per square meter from RMB 7,903 in the fourth quarter 2011."

"We continue to monitor the property market environment in Xi'an and to adjust our product supply to meet consumer demand. We are currently focusing more of our marketing efforts on first time home buyers who are more consistent buyers during times of market uncertainly and a greater portion of our existing and upcoming development projects are geared toward this group."

"Our projects are progressing as planned and the consumer lending environment is improving. We have four new projects currently scheduled to commence pre-sales in 2012 along with two other projects scheduled for construction in 2013. Although we do not anticipate additional action by the government to reduce speculation in the local market for the remainder of this year, our growth outlook remains uncertain at this point in time. We are hopeful we'll see a gradual improvement in demand in Xi'an as the market environment stabilizes. As this happens, we expect to experience a corresponding level of revenue growth."

2012 Outlook

Total recognized revenue for the 2012 second quarter is expected to reach $20 to $22 million, compared to $20.3 million in the same period of 2011. The Company is reporting contract sales estimates compared to revenue as they are not subject to percentage of completion alterations.

China Modern Agricultural (CMCI) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Financial results for the 2012 fiscal third quarter

Net income increased 149% to $14.0 million or $0.31 per basic and diluted earnings per share.
Revenue for the 2012 fiscal third quarter ended March 31, 2012 totaled $9.4 million, an increase of 38% as compared to $6.8 million for the same period the prior year.
Cost of goods sold for the 2012 fiscal third quarter ended March 31, 2012 was reduced to $3.36 million, which represented a decrease of $66,558 or 2% compared to $3.43 million for the same period of 2011.
Gross profit for the 2012 fiscal third quarter ended March 31, 2012 totaled $6.0 million, an increase of 79% compared to $3.4 million for the quarter ended March 31, 2011.

Mr. Youliang Wang, Chief Executive Officer of China Modern Agricultural Information, commented, "China Modern has been engaged in the breeding of livestock and in the production and sale of fresh milk since January 2005. Driven by the strong demand of raw milk in China, we saw the price of raw milk has kept rising. During the quarter ended March 31, 2012, the sales price of milk was increased by approximate 15% to approximate USD 0.50 per kg comparing with prior quarter. To offset the increasing cost of animal feed, the management team adopted a new business model since June 2011 which has dramatically decreased the operating costs and improved the profit margins. Our acquisition of Yulong Cattle in November 2011 further improved our capacity of milk production, which is an important driver for our revenue growth."

Mr. Wang, continued, "The demand for raw milk in China will stay strong in the next several years, which will be a key driver for our business growth. Combined with our new operating activities in place, I am confident China Modern will keep delivering strong both top-line and bottom-line growth."

China Natural Gas (CHNG) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Results

Revenue in the first quarter of 2012 increased by 33.9% to $32.28 million from $24.11 million in the first quarter of 2011
Gross profit in the first quarter of 2012 increased 16.9% to $11.36 million from $9.72 million in the same period of the prior year.
Gross margin in the first quarter of 2012 was 35.2%, compared to 40.3% a year ago. Gross margin decreased primarily due to the current lower gross margin level of our LNG business, as compared to the gross margins of those business lines making greatest contribution to revenue.
Operating income in the first quarter of 2012 was $3.70 million, an increase of 14.6% year-over-year from $3.23 million
Income tax expense was $0.79 million at an effective tax rate of 28.9%, as compared to $0.96 million at an effective tax rate of 27.8% in the first quarter of 2011.
Net income in the first quarter of 2012 decreased by 21.6% to $1.95 million, or $0.10 per diluted share, from $2.49 million, or $ 0.12 per diluted share, in the first quarter of 2011.

China Pharma Holdings (CPHI) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Highlights

Revenue was $16.1 million, compared to $18.1 million in the prior year period;
Gross profit was $5.3 million, compared to $6.9 million in the prior year period;
Operating income was $3.4 million, compared to $5.3 million in the prior year period;
Net income was $2.8 million, or $0.06 per basic and diluted share, compared to $5.3 million in the prior year period, or $0.12 per basic and diluted share;

"This year we expect to see many new Healthcare Reform policy implementations, most of which are centered around the theme of price control. At the same time we are seeing cost of materials (such as raw chemical materials, APIs, packaging materials as well as logistic costs) rising fast. The Chinese pharmaceutical industry is therefore facing tremendous operating pressure due to falling top line and rising cost of goods sold." Ms. Zhilin Li, China Pharma's Chairman and CEO continued, "With respect to the first quarter, new government pricing policies as well as the general uncertain atmosphere of the industry negatively impacted our short-term results. But we expect gross margin and revenue to benefit from new product launches in the months and quarters ahead."

China Power Equipment (CPQQ) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Highlights:

Net revenues decreased 6.1% to $7.26 million year-over-year
Net income decreased 7.6% to $1.04 million with $0.04 in diluted EPS

"While our first quarter is typically our seasonably weakest of the year, our revenues were also impacted by a decline in the average selling prices for our amorphous alloy cores and transformers," said Mr. Song Yongxing, Chairman, CEO, and President of China Power Equipment. "This was principally due to a decline in the prices of the amorphous alloy strips, a savings which we partly passed on to our customers. Additionally, the sales ramp up at our transformer production facility is proceeding more slowly than anticipated as we are investing a significant amount of time in the recruitment and training of personnel at the facility and in our overall production preparation to ensure the highest standards of quality and reliability of our transformers and to make sure that our facility efficiently manages large orders.

"Improving capacity utilization of our amorphous alloy core production line has been a major objective for this year, increasing 9.8% year over year in the first quarter of 2012. Although revenue from amorphous alloy transformers decreased 5.6% in the first quarter of 2012 compared to the same period of 2011, we produced about 36% of all transformers in-house at our new production facility in the first quarter of 2012. Increased capacity utilization of amorphous alloy cores, improved gross margin on amorphous alloy cores and increased in-house amorphous alloy transformer production are positive developments that are consistent with our Company's long term objectives. Furthermore, our customers recognize the long term cost advantages of using amorphous alloy cores versus traditional steel cores as well as the environmental benefits and we expect continued demand for our energy saving products as China further upgrades its older electric grids and as it expands its energy infrastructure in western China," concluded Mr. Song.

China Shen Zhou Mining (SHZ) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

2012 First Quarter Highlights

Revenues were $1.5 million
Gross margin increased to 42.8% from 35.0% in the first quarter of 2011
Cash and equivalents were $5.1 million
Net property, machinery and mining assets were $83.6 million.

Ms. Xiaojing Yu, the Chairwoman and CEO, commented, "We have further cemented our industry leadership in terms of fluorite extraction and processing capacity after completing our acquisitions of Dongsheng, Meilan and Qianshi. For the rest of the year, we will focus on ramping up the production and sales of fluorite powder and lumps across our strategically located mining sites. Driven by the increasing and diversifying end usages of fluorite in China and other emerging countries, the market prices for fluorite remain at a multi-year high level. We have some of the largest fluorite assets in China whose reserves and mining life have been appraised by a world-leading independent appraisal company - SRK. We believe our proven reserves, established platform and growing economies-of-scale position us well and remain confident on the future prospect of our business."

Business Outlook

For the second quarter of 2012, net revenues are expected to reach $11.1 million. During the second quarter, China Shen Zhou expects to produce: a) 18,000 metric tons of fluorite powder; b) 11,000 metric tons of fluorite lumps; c) 1,100 metric tons of zinc concentrate; and d) 180 metric tons of copper concentrate.

Cibt Education Group (MBA) - Notable Share Transactions

Tue, 15 May 2012 04:00:00 GMT

VANCOUVER, British Columbia--(BUSINESS WIRE)--CIBT Education Group Inc. (NYSE AMEX: MBA) (TSX: MBA) (“CIBT”) reports that the normal course issuer bid (“NCIB”) announced in its news release dated February 15, 2012 has been amended with the approval of the Toronto Stock Exchange. The maximum number of common shares that CIBT intends to purchase under the NCIB has been increased to 3,000,000, representing approximately 4.2% of the 71,571,844 common shares which were outstanding as at the commencement of the NCIB, subject to a maximum aggregate acquisition cost of $1,000,000. In addition, the maximum number of common shares that CIBT may purchase per day has been increased to 4,566 common shares, representing 25% of the average daily trading volume of 18,264 common shares during the six months ending on April 30, 2012. This limitation does not apply to “block trade purchases”, which are purchases of (1) shares having a purchase price of at least $200,000, (2) at least 5,000 shares having a purchase price of at least $50,000, or (3) at least 27,396 shares.

As at April 30, 2012, 446,500 common shares have been purchased under the NCIB. The NCIB expires on February 20, 2013.

Consumer Capital Group (CCGN) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

CONSUMER CAPITAL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

	For The Three Months Ended March 31,
	2012			2011

Net revenues - ecommerce	$	1,007,756		$	606,791
Net revenues - distribution		562,405			1,340,413
Total revenue		1,570,161			1,947,204
Cost of sales - distribution		545,558			1,326,158
Gross profit		1,024,603			621,046

Operating expenses:
Selling expenses		856,823			503,400
General & administrative expenses		497,353			872,472
Total operating expenses		1,354,176			1,375,872

Operating loss		(329,573	)		(754,826	)

Other income		36,298			80,958
Other (expense)		-			(335,000	)
Total other income (expense)		36,298			(254,042	)

Loss before taxes		(293,275	)		(1,008,868	)

Provision for income taxes		131			56,544

Net loss		(293,406	)		(1,065,412	)
Less: Net income attributable to noncontrolling interest		193			543
Net loss attributable to Consumer Capital Group, Inc.	$	(293,599	)	$	(1,065,955	)

Loss per share - basic and diluted	$	(0.02	)	$	(0.06	)

Weighted average number of common shares outstanding - basic and diluted (1)		19,068,888			18,456,790
Net loss		(293,406	)		(1,065,412	)
Other comprehensive loss, before tax
Foreign currency translation adjustment		(7,707	)		702
Other comprehensive loss, net of tax	$	(7,707	)	$	702

Comprehensive loss, net of tax		(301,113	)		(1,064,710	)
Attribute to:
Non-controlling interest		178			-
Consumer Capital Group, Inc.	$	(300,935	)	$	(1,064,710	)

Cuba Beverage (CUBV) - Deal Flow

Tue, 15 May 2012 04:00:00 GMT

SAN DIEGO, CA--(Marketwire - May 8, 2012) - Cuba Beverage Company (PINKSHEETS: CUBV) today released the following information with respect to recent events regarding its operational activities including financing arrangements and new distribution opportunities as well as recent Company filings.

Cuba Beverage Company is now in compliance with the OTC Markets' Alternative Reporting Standards with the filing of its Company Information and Disclosure Statement on April 30, 2012 and is now listed as OTC Pink current information tier. Cuba Beverage Company will comply with OTC reporting standards required to maintain this status.

Cuba Beverage Company has also commenced raising capital through an equity private placement. The Company hopes to raise $1 million in equity capital through this placement and has already begun to receive executed subscriptions; the offering is set to expire on May 31, 2012. This new investment will allow the Company to initiate the latest production run of its current product offering and resume distribution through its established network of beverage sales channels. These sales channels include Five Star Beverage of Southern California, APSCO and the Army & Air Force Exchange Service.

The Company has recently executed a distribution agreement with Hom's Enterprise for distribution of its products in China. This distributor has forecasted sales of an estimated 20,000 cases of Cuba Beverage products in the Chinese mainland by the end of 2012. Alex Procopio, Cuba Beverage's CEO, stated, "We are pleased to have Hom's Enterprises representing the Company in China. Their strength in that market coupled with strong distribution credentials bodes well for substantial sales in that region of the world."

Entertainment Gaming Asia (EGT) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First quarter ended March 31, 2012

Highlights:

New record-high quarterly net income of $1.0 million for the first quarter of 2012, an increase of 41% compared to the first quarter of 2011.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash charges) was $3.2 million, an increase of 6% from the first quarter of 2011.
Total revenue from gaming operations was a record $5.0 million for the first quarter of 2012, an increase of 19% from the first quarter of 2011.
Average consolidated win per unit per day (WUD) reached a new high of $154 for the first quarter of 2012, an increase of 15% from the first quarter of 2011.
As of March 31, 2012, total installed electronic gaming machine (EGM) seats in operation were 1,560 in eight venues, comprised of three venues in Cambodia with a total of 799 seats and five venues in the Philippines with a total of 761 seats.
Gaming chip and plaque sales were $532,000, more than double that of the first quarter of 2011.
Cash balance was $11.7 million as of March 31, 2012 compared to $12.8 million as of December 31, 2011.
Total debt was $4.7 million as of March 31, 2012 compared to $6.2 million as of December 31, 2011.
On May 3, 2012, the Company completed on target the initial installation of 200 EGM seats on a participation basis in Sokha Hotels and Resort’s new five-star Thansur Bokor Resort and Casino in Cambodia.
On May 9, 2012, the Company successfully opened Dreamworld Pailin in Cambodia, its first casino development project.
On May 10, 2012, the Company held the groundbreaking ceremony for Dreamworld Poipet in Cambodia, which is expected to open before the end of 2012.

Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, “After record-breaking 2011 financial results, I am pleased to report another strong quarter for the first quarter of 2012. Our gaming operations generated a record-high $5.0 million in revenue, driven by significant improvement in both our Cambodia and Philippines operations. Consolidated average daily net wins reached a new high of $154 per seat for the quarter. This strong top-line growth combined with continued focus on cost control resulted in adjusted EBITDA of $3.2 million and a record net profit of nearly $1.0 million for the first quarter of 2012. We have achieved this growth while investing in our strategic growth plans to expand our gaming operations and strengthening our balance sheet. With the successful repositioning of our operations behind us, we look to the future armed with an attractive mix of gaming operations including a solid and growing participation business, exciting casino development plans, and prospects for continued improvement in our gaming chip and plaque business.”

Guanwei Recycling (GPRC) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

GUANWEI RECYCLING CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended
March 31,

2012

2011

Net revenue

16,171,490

14,142,612

Cost of revenue

12,616,104

9,907,512

Gross profit

3,555,386

4,235,100

Operating expenses

Selling and marketing expenses

89,522

88,791

General and administrative expenses

658,870

543,770

Total operating expenses

748,392

632,561

Income from operations

2,806,994

3,602,539

Other income (expenses):

Interest income

14,172

22,970

Interest expenses

(17,435

)

Exchange gain

31,926

71,296

Income before income taxes

2,853,092

3,679,370

Income taxes

787,836

964,088

Net income

2,065,256

2,715,282

Other comprehensive income

- Foreign currency translation adjustments

213,418

217,182

Comprehensive income

2,278,674

2,932,464

Earnings per share attributable to shareholders of Guanwei Recycling Corp.

- basic and diluted

0.10

0.14

Hollysys Automation (HOLI) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Q3 Financial Highlights

Quarterly revenues of $66.1 million, representing an increase of 18.6% compared to $55.8 million year-over-year.
Gross margin at 39.3%, as compared to 40.3% year-over-year, and 38.5% quarter-over-quarter
Non-GAAP net income attributable to Hollysys of $11.6 million, as compared to $9.6 million and a 20.8% increase year-over-year.
Non-GAAP Diluted EPS at $0.21 reported for the quarter, as compared to $0.17 year-over-year
Record-breaking backlog of $401.8 million as of March 31, 2012, a 43.1% increase compared to $280.9 million year-over-year, and 21.0% increase compared to $332.1 million quarter-over-quarter.
Inventory turn-over days of 68 days for this quarter compared to 101 days year-over-year.
Quarterly DSO of 160 days, as compared to 156 days year-over-year.
Generate net cash provided by operating activities of $1.5 million for this quarter.

Dr. Changli Wang, Chairman and CEO of Hollysys, stated: "We are pleased to report another quarter with solid operating and financial results. Here I would like to take this opportunity to discuss some key events that took place in this quarter:

"Industrial automation is continuously growing towards the top position in domestic market and starting to build its brand power globally. We keep seeing strong business demand across all of our products and industry verticals. The significant growth we reported in the quarter clearly validates our dedicated industry expert total solution and sales network expansion strategies. Our established brand recognition, strong track record of customization, quality and service, efficient R&D and implementation together with customer-orientated flexibility give us a significant competitive advantage over domestic and international competitors. We believe Hollysys is in an excellent position as we pursue future growth in industrial automation market.

"In our high-speed rail segment, we successfully won the international bid and signed a contract of approximately US$63.15 million with MTR Corporation Ltd to provide the complete suite of high-speed rail signaling systems to Guangzhou-Shenzhen-Hong Kong Express Rail Hong Kong Section. As the first-ever international contract for our high-speed rail signaling system amid the stiff competition from other world class signaling system providers, this contract is of paramount importance and remarkable milestone in steering our business to the next level in the global arena. On the domestic side, we believe we will continue to benefit from the continuous construction of high-speed rail called by the huge demand for rail transportation across the country. With the successful Safety certification in accordance with International Standards for our Signaling products and system, we will continue to leverage on our strong commitment to Research & Development, quality and service to further explore business opportunities in bothChina and abroad.

"In subway business, in addition to the Hong Kong MTR contract and Beijing Subway Line 14 contract of supplying the integrated surveillance control and data acquisition system (SCADA) we signed last quarter, we are expecting our self-developed proprietary subway signaling system to obtain the European Safety Standard Certification Level 4 (SIL 4) by the end of 2012. We are excited about the subway signaling system because it clearly differentiates Hollysys and will bring us to a higher level in competing with other players to propel our subway business in both Chinese and international market.

"What's more, we made substantial progress in our strategy of international market expansion through our successfully acquired company - Concord. In this quarter Concord successfully signed a retrofit project of USD $14.02 million with Shaw Brothers Limited to supply and provide installation and electrification services for Shaw Centre in Singapore. We are seeing building automation is becoming a lucrative market given the increasing high-end commercial buildings and growing demand for retrofit projects of existing commercial buildings in many markets. Meanwhile, Concord has been actively working on a few international biddings and projects in rail and industrial automation sectors. The acquisition of Concord has been proved to be a good synergy and successful by combining our proprietary technology and Concord's international team, we will continue to leverage the core capabilities to further penetrate into the international arena and build Hollysys into a world leading automation and control technology and products provider."

Outlook for FY 2012

Dr. Wang concluded, "Due to severe slow down of China's high-speed development, as well as overseas projects delayed because of the mixed international environment. We are revising the previous announced FY2012 revenue guidance between $354 million and $356 million, down to between $310 million and $ 320 million; but we are confidently reiterating our FY 2012 net income guidance between $ 57 million and $ 58 million unchanged."

Iec Electronics (IEC) - Deal Flow

Tue, 15 May 2012 04:00:00 GMT

NEWARK, NY--(Marketwire - May 15, 2012) - IEC Electronics Corp. (NYSE Amex: IEC) announced it has reached final agreement with the sellers of Southern California Braiding Inc. (SCB) regarding acquisition-related escrow claims.

When the SCB acquisition was closed in December, 2010, cash and shares of IEC common stock were deposited in escrow with Wells Fargo Bank, N.A. to be released in 2012 to the buyer or sellers dependent upon SCB's achievement of certain post-closing performance metrics during calendar 2011. IEC and the sellers have just concluded an agreement finalizing escrow claims, under which IEC will receive $1.8 million in cash and 68,625 shares of IEC common stock from the escrow. The funds will be applied to IEC debt and the equity will be retired.

W. Barry Gilbert, Chairman and CEO, said, "We were pleased to come to a satisfactory mutual agreement with the sellers of SCB. We will use the funds to continue paying down our debt. As mentioned in our shareholder call on Wednesday of last week, we anticipated paying down our debt by approximately $9 million in fiscal 2012. After the application of these funds, we now envision paying down our debt by approximately $11 million. This is on top of the $12 million we paid down the debt since we purchased SCB last year.

"Although Southern California Braiding has had a challenging start transitioning from a private company to a rapidly growing public company, we believe it will turn out to be one of IEC's best acquisitions. It has started to exhibit the growth we envisioned."

Lifeway Foods (LWAY) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

MORTON GROVE, Ill., May 15, 2012 /PRNewswire/ -- Lifeway Foods, Inc., (Nasdaq: LWAY), a leading supplier of kefir cultured dairy products, today announced an agreement nearly tripling distribution of its kefir line in Target stores as well as adding new Lifeway products to Target's dairy cases. Availability in Target will increase from 170 to 453 locations, with the addition of three flavors of 8-oz. Lifeway Kefir four-packs to Target's offerings. This is the first major expansion with Target in eight years and the new offerings were available to consumers beginning the first week of May.

The distribution expansion covers multiple flavors and sizes of Lifeway Kefir, a probiotic drink similar to drinkable yogurt that is high in calcium and protein and low in fat in calories, as well as Lifeway ProBugs, children's line of Organic Kefir with a no-spill pouch and kid-friendly flavors like Goo Berry Pie. The company plans increased marketing and advertising support to raise awareness with Target customers and promote sales at the retail chain.

"The broader availability of Lifeway Kefir at this major retailer speaks to its growing popularity among consumers and the recognition of the need to offer healthy alternatives to the high-fat, high-calorie foods that fill grocery shelves today," said Julie Smolyansky, Lifeway's President and Chief Executive Officer. "This is a strong indication that distribution of our kefir products will continue to expand to new and existing customers, and contribute to significant increases in our long-term sales growth."

Lifeway's line of kefir products provides a low-fat, low-calorie, high-protein food option that allows consumers to feel fuller longer. All Lifeway products are made from non-GMO, non-hormone milk from grass-fed cows. The plain varieties have no-added-sugar, while the flavored kefir beverages are made with cane juice and less sugar than most other cultured dairy products. Source: PR Newswire (http://s.tt/1bTLt)

Qkl Stores (QKLS) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Financial Results

Revenue in the first quarter of 2012 increased 10.6% to $112.0 million from $101.3 million in the first quarter of 2011.
Gross profit increased 5.3% year over year to $19.1 million, compared to $18.1 million in the prior year period
Operating expenses increased 18.8% to $17.5 million compared to $14.7 million in the prior year period.
First quarter 2012 net income was approximately $0.8 million, or $0.02 per diluted share, compared with $2.6 million, or $0.07 per diluted share, for the same period in 2011.

Mr. Zhuangyi Wang, Chairman and CEO, said, "We finished the first quarter operating a total of 53 stores, comprised of 33 supermarkets, 16 hypermarkets and 4 department stores. As our new store opening plan slows for 2012, the new stores are going to open particularly in the second half of the year, we expect our profitability to improve as we benefit from our new store sales, increased same store sales at existing stores and reduced store opening and promotional expenses."

"We were also pleased with the improvement of our operating cash flows in the first quarter due to a reduction in inventory after the peak Chinese New Year season and a decrease in other receivables attributable to cash recovery from our vendors after the busy holiday season. We are pleased with our execution in the first quarter and are setting the stage for increased top and bottom line growth in the coming quarters."

Remark Media (MARK) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Results

Cash balance increased to $4.2 million at the end of the quarter compared to $1.5 million at the end of the prior year.
Company successfully raised $4.25 million in a private placement of common stock with accredited investors.
Brands segment revenue remained relatively flat year over year; expected to increase upon closing of the pending Banks.com merger.
Content and Platform Services segment had no revenues due to new management's shift in strategy and the planned expiration of service agreements with Sharecare and Discovery.
Net loss decreased significantly to $0.2 million in the first quarter versus $1.7 million loss in the same quarter of 2011 due to non-cash gain in the equity investment in Sharecare and reduction in operating expenses.
Earnings per share improved by 87% year over year to $(0.04).

CEO of Remark Media, Carrie Ferman, said: "Our first quarter results reflect the implementation of the strategy we discussed earlier this year. We are focused on developing our new websites in the U.S., while realizing the investment gains from Sharecare - a health information website we co-founded and for which we provided development and design services. Demand is increasing for dynamic online experiences that offer consumers the opportunity to interact with high-quality content, experts and each other. This is evidenced by the success of Sharecare, and other sites we have helped create. We are enthusiastic about our future in the personal finance space, starting with the launch of DimeSpring.com and the assets we expect to acquire through the pending merger with Banks.com."

PRIVATE PLACEMENT

In February 2012, Remark Media completed a private placement of $4.25 million of common stock. In connection with the transaction, the Company issued to investors a total of 944,777 shares of common stock priced at $4.50 per share and warrants to acquire an additional 236,194 shares of common stock at an exercise price of $6.81 per share.

MERGER TRANSACTION

On February 26, 2012, Remark Media entered into an agreement and plan of merger with Banks.com, Inc. (OTC US: BNNX), pursuant to which Banks.com will become a wholly-owned subsidiary of Remark Media. Banks.com is a leading financial services portal operating a unique breadth and depth of financial products and services. Upon the closing of the merger, Remark Media will issue up to 702,784 shares of Common Stock, representing approximately 9.9% percent of our shares issued and outstanding upon consummation of the merger, to the shareholders of Banks.com, plus $300,000 in cash, as consideration for the merger.

OPERATIONS

Remark Media continued development of its personal finance website through the first quarter. The site entered beta testing at the end of the first quarter and is on schedule for continued roll-out throughout 2012. Additionally, the Company reduced operating expenses to $1.5 million in the first quarter of 2012, a 46% decrease as compared to the first quarter of 2011 and a 28% decrease as compared to the fourth quarter of 2011.

Renren (RENN) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Highlights

Total net revenues were US$32.1 million, a 56.1% increase from the corresponding period in 2011.
Online advertising revenues were US$9.3 million, a 14.8% increase from the corresponding period in 2011.
Gaming revenues were US$17.5 million, a 90.7% increase from the corresponding period in 2011.
Gross profit was US$19.6 million, an 18.9% increase from the corresponding period in 2011.
Operating loss was US$20.6 million, compared to an operating loss of US$4.7 million in the corresponding period in 2011.
Net loss attributable to Renren was US$13.6 million, compared to a net loss of US$2.6 million in the corresponding period in 2011.
Adjusted net loss (1) (non-GAAP) was US$11.3 million, compared to an adjusted net loss of US$1.1 million in the corresponding period in 2011.

"We are pleased that our total net revenues this quarter came in above our guidance, with 56% year-on-year growth. Our brand advertising business experienced a challenging quarter due to seasonality and Chinese economy slow-down, resulting in a more cautious approach by new advertisers on our social networking platform. However, our gaming revenue, driven by the popularity of our recently launched games and mobile gaming efforts, outperformed our expectation, offsetting the weakness in advertising. This highlights the benefit of having multiple revenue models on our social networking platform, particularly during the transition to a mobile-centric era,'' commented Joseph Chen, Chairman and Chief Executive Officer.

"In the first quarter, our user base and traffic continued to grow, with total activated users reaching 154.2 million at the quarter-end, an increase of 32.1% year-on-year. Over 39% of the 40.1 million monthly unique log-in users in March accessed their Renren accounts through mobile devices. In addition, smart-phone penetration among our mobile users reached 62%," Mr. Chen continued. "The rapid increase in mobile traffic has led to new opportunities and challenges for us. As mobile is one of the largest evolutionary trends in the internet sector, we are positioning ourselves to take advantage of the most important opportunities."

"Our gaming business helped alleviate the softness in advertising this quarter, as well as introduced monetization capabilities on our growing mobile traffic," added Hui Huang, Renren's Chief Financial Officer. "However, monetization on mobile is still at a nascent stage. We will continue to invest in building the eco-system around our real-name social networking in both PC and mobile mediums, including offering more engaging products, improving targeting technology, upgrading our online video services and optimizing Nuomi's business. With our diversified revenue model and a strong balance sheet, we are dedicated to maximizing the long-term growth of the Company."

Business Outlook

The Company expects to generate revenues in an amount ranging from US$41 million to US$43 million in the second quarter of 2012, representing 35% to 41% year-over-year growth. This forecast reflects Renren's current and preliminary view, which is subject to change.

Sino Clean Energy (SCEI) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Sino Clean Energy Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Other Comprehensive Income

(Unaudited)

	Three months ended March 31,
	2012			2011

Revenue	$	27,831,694		$	33,780,732

Cost of goods sold		(19,298,230	)		(21,281,408	)

Gross profit		8,533,464			12,499,324

Selling expenses		1,212,838			1,527,466
General and administrative expenses		1,290,073			1,031,542

Income from operations		6,030,553			9,940,316

Other income (expense)
Interest income		65,569			44,187
Change in fair value of derivative liabilities		(1,677,336	)		4,010,630

Total other (expense) income		(1,611,767	)		4,054,817

Income before provision for income taxes		4,418,786			13,995,133

Provision for income taxes		1,639,122			1,915,380

Net income		2,779,664			12,079,753

Other comprehensive income
Foreign currency translation adjustment		1,312,935			918,229

Comprehensive income	$	4,092,599		$	12,997,982

Weighted average number of shares
-Basic		23,863,701			23,465,794
-Diluted		23,877,337			25,381,392

Income (loss) per common share
- Basic	$	0.12		$	0.51
- Diluted	$	0.12		$	0.48

Sino-Global Shpping (SINO) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Financial results for third fiscal quarter ended March 31, 2012.

Total revenues increased by 0.49% from $9,065,518 for the three months ended March 31, 2011 to $9,110,006 in the comparable three months in 2012.
Expenses increased by 9.49% from$1,049,933 for the three months ended March 31, 2011 to $1,149,522 for the three months ended March 31
Net Loss- As a result of the foregoing, we had a net loss of $770,155 for the quarter ended March 31, 2012, compared to net loss of $254,387 for the quarter ended March 31, 2011.

Mr. Cao Lei, Sino-Global's Chief Executive Officer, stated, "We continued to face a difficult economic environment in the most recent quarter but have been able to increase the number of ships that we are servicing slightly. However, the number of ships discharging iron ore in Chinese ports has not increased, and we have mitigated that stagnancy by increasing our protective services to a greater number of ships, albeit at significantly lower agency revenues per ship. We will continue to monitor our expenses closely but invest prudently in areas that should lead to future revenue and business growth."

Mr. Cao concluded, "In looking to the future, we continued to emphasize expanding our international marketing effort to position us for strong growth as economies around the world improve. Our position has been strengthened by the actions that we have taken and Sino-Global will continue to seek additional international business from loading ports in Australia, Canada,South Africa and Brazil as well as new international venues."

Sinovac Biotech (SVA) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Financial Highlights (year-over-year comparisons to first quarter 2011)

Sales increased 30.3% to $6.0 million, with Bilive vaccines sales up 92.4%.
Gross margin was 62.2%, which included higher costs due to planned low production level of the animal vaccine facilities in conjunction with its recent launch. Without these costs gross margin would have been 65.1%.
Net loss attributable to common stockholders was $5.6 million, or $0.10 per basic and diluted share.
Cash and cash equivalents totaled $94.5 million as of March 31, 2012, compared to $104.3 million as of December 31, 2011.

Dr. Weidong Yin, Chairman, President and CEO of Sinovac, commented, "The positive vaccine sales trend continued in the first quarter of 2012, which represented a good start for the year as the domestic vaccine market remains favorable. The positive effects of this market can be seen especially in the sales of Bilive, our combined hepatitis A and B vaccine, which increased by 92% year over year. We attribute this increase primarily to our sales and marketing experience and capabilities accumulated and improved in the private sector of the Chinese vaccine market over the past few years. We believe our increased strength in sales and marketing in the private market will also benefit the commercialization of other key products in our pipeline. Additionally, we are pleased to see that approximately 9% of our sales this quarter were generated from international markets. As our international sales team grows and the GMP standard in Chinaimproves, the Company is well positioned to take advantage of the opportunities across international markets. In general, our team will continue executing on its strategies to expand commercialized vaccine product sales."

Dr. Yin continued, "We are committed to advancing the development of our vaccine pipeline, which we believe will contribute to the Company's future growth. In the first quarter of 2012, we have substantially completed the key steps of the Phase III clinical trial for our EV71 vaccine, including the inoculation of, and blood collection from, these volunteers. The HFMD epidemic situation is becoming more serious, which not only indicates how important it is to develop our vaccine, but also allows for collection of sufficient data to evaluate the efficacy of the vaccine candidate in the Phase III study. In parallel with the vaccine development, the preparation of our dedicated EV71 vaccine production plant is underway to ensure that the vaccine is ready for commercial use soon after it is approved. "

Sorl Auto Parts (SORL) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Financial Highlights

Revenues for the first quarter of 2012 were $44.6 million;
China domestic aftermarket sales rose 14.0% year-over-year;
Gross margin was 27.4% in the first quarter of 2012;
Net Income was $2.3 million, or $0.12 per diluted share, in the first quarter of 2012;
Cash flow from operating activities was $4.3 million and free-cash-flow was generated.

Mr. Xiaoping Zhang, SORL's Chief Executive Officer and Chairman, stated, "We experienced severe headwinds from the domestic OEMs to international markets in this quarter. However, we outperformed the heavy duty truck market, as we benefited from our solid performance in our domestic aftermarket segment and through our continued efforts in fostering relations with our distributors and introducing new products to end customers. After the automotive market experienced a weak year in 2011, the sales decline in the Chinese truck OEM market continued to widen during the first quarter of 2012. Higher fuel price and slower construction activities continued to depress downstream customer demand for new trucks. We remain focused to expand our market share with OEMs through our broadened product offerings. As a result, our sales to the bus and construction equipment markets increased. For the first time in many years, our international sales suffered a sequential double-digit decline. While the unstable environment in the Middle East negatively impacted our sales in the region, we see good volume growth inEurope. "

Ms. Jinrui Yu, SORL's Chief Operating Officer, commented, "Our investments in higher- graded production equipment and new product development over the past two years started to generate positive outcomes. In an inflationary environment where labor costs are rising, we are proud to have maintained one of highest gross margins in the industry with our strengthened production efficiency and improved pricing power across all market segments. Our continued positive cash flows resulted from operating activities coupled with reduced capital expenditures, which enabled us to book solid free-cash-flow of nearly $4 million. We have significantly reduced short-term debt with increased receivable collections and expanded customer prepayments. With our improved financial standings, new products and enhanced operational fundamentals, we are well positioned to generate stronger earnings when market regains its growth momentum."

Business Outlook

For the second quarter of fiscal year 2012, management expects net sales to be approximately$225million and net income to be approximately $14.6million. These targets are based on the Company's current views on the operating and market conditions, which are subject to change.

"We will continue to benefit from the opportunities in the Chinese domestic aftermarket where the safety requirement bar has been raised. We are confident to maintain our OEM customer base and market position while penetrating new markets and earning new customers. Internationally, we plan to enhance SORL brand image through attendance of more industry exhibitions. More specifically, we will build a stronger international marketing network focused on exploring high-value foreign markets, and actively marketing to the large automotive chain stores that directly sell to end users," Ms. Yu concluded.

Soufun Holdings (SFUN) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Highlights

Revenues grew 43.4% to US$58.5 million compared to the first quarter of 2011.
Operating income was US$13.7 million, an increase of 131.3% compared to the first quarter of 2011. Non-GAAP operating income was US$15.0 million, an increase of 89.0% compared to the first quarter of 2011.
Net income attributable to shareholders was US$14.5 million, an increase of 152.9% compared to the first quarter of 2011. Non-GAAP net income attributable to shareholders was US$14.2 million, an increase of 83.3% compared to the first quarter of 2011.

We are happy to deliver the 6^th consecutive better than guidance results after IPO, said Vincent Mo, Executive Chairman of SouFun. �SouFun�s strong market leadership and sound fundamental plus its creative innovations made its great performance, even though China�s real estate and home furnishing markets were very dynamic. In addition, we are pleased that SouFun successfully passed its first year SOX 404 audit after IPO and the company will continue its efforts to implement tight internal control.

Business Outlook

We maintain and are confident in our revenue guidance for fiscal year of 2012 to be between US$380.0 million and US$400.0 million, even though uncertainties remain in China�s property market.

Suntech Power Holdings Co (STP) - Contract Awards

Tue, 15 May 2012 04:00:00 GMT

SCHAFFHAUSEN, Switzerland, May 15, 2012 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest producer of solar panels, and Krannich Solar, a leading value added distributor of complete systems, components and pre-packaged systems, announced an agreement for Suntech to supply up to 120 megawatts of solar panels in 2012.

Under the terms of the agreement, Suntech and Krannich Solar will continue to build on their solid relationship, going back to 2007, to provide high quality solar systems for resellers and installers throughout Europe and Australia.

"Over the past few years, we have noticed a clear trend where end-customers are increasingly choosing proven and reliable products to secure their solar investments," said Vedat Guergeli, Vice President Sales and Marketing, Suntech Europe. "We're excited to continue our strong relationship with Krannich Solar as we both share the same dedication to quality and product performance and are focused on building a strong local presence and consumer trust."

Founded in 1995, Krannich Solar is one of the top five PV systems providers in Europe today. Krannich Solar's range of solar products is guided by one key principle: each and every product is put through its paces in terms of testing and quality. Products and components are included only if they are error-free and work perfectly with one another.

"We have always focused on quality - even at the peak of the solar market boom - and this strategy has been successful," said Kurt Krannich, founder of Krannich Solar. "For us, it is of the upmost importance to cooperate with global solar brands, like Suntech, that are renowned for reliability and quality."

Telestone Technologies (TSTC) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First-Quarter 2011 Highlights:

Revenues were $17.1 million, an increase of 18.2% as compared to $14.5 million in the year-ago quarter
Gross profit was $6.5 million, as compared to $6.6 million in the year-ago quarter
Net income was $0.5 million, or $0.03 per diluted share; non-GAAP income was $0.6 million, or $0.05 per diluted share

"We posted solid revenue growth in the first quarter of 2012, which included one full quarter of revenues from Sichuan Ruideng Telecom Corporation that we acquired in November 2011," commented Mr. Daqing Han, Chairman and CEO of Telestone. "We were able to maintain profitability despite some lower-margin business and increased investment in our sales and marketing team. Thus far, 2012 is proving to be challenging year for the telecom-equipment industry, due to a slowdown in 3G investment and a slow start to investment in 4G. Although our business results will be difficult to forecast; we expect business conditions to remain challenging."

Business Outlook

For the full-year 2012, Telestone continues to expect revenues to increase to approximately $117 million.

"Despite a soft start to the year, we remain optimistic regarding continued growth in 2012. We also expect TIPS to begin to play a meaningful role this year. We will continue to invest in the development of innovative new products and services, while diversifying our geographic and customer mix. We continue to expect 2012 to be successful and significant year," concluded Mr. Han.

Tht Heat Transfer (THTI) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Results

Sales revenue decreased by 18.5% year-over-year to US$11.45 million.
Gross profit decreased by 23.8% year-over-year to US$4.61 million.
Gross margin was 40.2%, compared to 43.0% for the first quarter 2011.
Operating income decreased by 74.3% year-over-year to US$0.84 million.
Net income attributable to common stockholders decreased by 79.0% year-over-year to US$0.56 million.
Basic and fully diluted net income per share was US$0.03, a decrease compared with net income per share of US$0.13 for the first quarter 2011.

Chairman and Chief Executive Officer Guohong Zhao commented, "Although demand for our heat exchange solutions was impacted by China's slowing macroeconomic environment during the first quarter 2012, our intensified focus on generating orders and cultivating client relationships allowed us to achieve revenue at the high end of our previously announced guidance range.

"Looking ahead to 2012 as a whole, we continue to expect the HVAC, metallurgical and petrochemical industries to generate steady demand. We remain focused on our four core growth initiatives relating to district heating, nuclear power, air cooled heat exchangers, and spare parts and repair services offerings, and we expect growth to be strongest in the nuclear sector. While we believe demand for our competitively priced, high-quality, customized offerings will drive value in the long term, we remain cautious in view of prevailing macroeconomic conditions, and we therefore anticipate second quarter 2012 revenue to be in the range of US$10 million to US$12 million."

Second Quarter 2012 Guidance

THT expects to generate sales revenue in the range of US$10 million to US$12 million in the second quarter 2012, compared with US$14.18 million in the same period of 2011. This represents the Company's preliminary view, and is subject to change.

Tianli Agritech (OINK) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Financial results for the first quarter of 2012.

Gross profit was $1.7 million in the first quarter of 2012, a 29% decrease from the same period last year.
Selling, general and administrative (SG&A) expenses were $1.1 million in the first quarter of 2012, an increase of approximately $0.3 million from $0.8 million in the first quarter of 2011.
Net income for the three months ended March 31, 2012 was approximately $0.7 million, down 62% from the same period last year.
Earnings per fully diluted share were $0.07 compared to$0.18 last year.

Tianli's Chairwoman and CEO, Ms. Hanying Li, stated, "We continue to see strong demand across each of our businesses. In the first quarter of 2012 we sold 34% more market hogs while our breeder hog sales were negatively impacted by a weak market and the contamination that occurred in December 2011, which resulted in a loss of approximately 500 breeder hogs. I am extremely pleased with the progress of our black hog program, which will become a big contributor to our sales later this year. We anticipate further growth by expanding the number of farms that participate in our program with local cooperatives to raise Enshi black hogs."

Tianyin Pharmaceuticals Co (TPI) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Third Quarter Fiscal Year 2012 Ended March 31, 2012 Financial Highlights:

3Q FY2012 revenue delivered $14.4 million compared with $24.9 million in 3Q FY2011,
Operating income delivered $1.3 million, compared with $5.0 million in 3Q FY2011,
Net Income was $0.9 million compared with $4.1 million in 3Q FY2011,
Earnings per share of $0.03 per basic share, or $0.03 per diluted share, compared with $0.14 per basic share, or $0.14 per diluted share in 3Q FY2011,
Cash and cash equivalents totaled $29.9 million on March 31, 2012,
Operating cash flow for the nine months ended March 31, 2012 was $4.8 million, compared with $12.2 million for the nine months ended March 31, 2011.

Business Development & Outlook

R&D for additional indications of flagship product Gingko Mihuan (GMOL)

Our flagship product Gingko Mihuan Oral Liquid (GMOL, SFDA certification number: H20013079; patent number: 20061007800225) contributes to more than 30% of our total revenue. Clinical application and information gathered from our physicians showed that in addition to our approved indication for the usage of GMOL: cardiovascular disorders, coronary heart disease and cerebral ischemic attack including strokes, Off-label use of GMOL have been indicated in hepatic diseases and ophthalmological diseases. The validity and mechanisms of these observations are being investigated in a number of hospitals.

Under the ongoing healthcare reform policy that favors the sale of EDL drugs in China, the national or provincial EDL listing could substantially support the market development of these products. Recently, GMOL has been selected as an EDL drug in both Henan and Shandong province (with a combined population of approximately 200 million) EDL provincial supplementary lists. The EDL status grants a full insurance coverage or 100% government reimbursement for patients.

Fiscal Year 2012 Financial Guidance

As a result of the current pricing restriction by the healthcare reform policies of the government along with the rippling effect of the highly competitive market environment for our generic portfolio, we revised our fiscal 2012 revenue guidance from $100 million to $66 million and our net income guidance from $10 million to $6.5 million. Our revised estimated projection is based upon several factors including but not limited to the following:

A delay in our JCM revenue ramp up estimated to occur in the second half of 2012;
Reduced generic sales as a result of pricing restrictions and healthcare reform policies recently undertaken by the government that was only partially offset from the steady revenue stream of our flagship product portfolio;
Flat but steady TMT distribution revenue.

Management will continue to evaluate the Company's business outlook and communicate any changes on a quarterly basis or as when appropriate.

Tri-Tech (TRIT) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Performance Highlights in First Quarter of 2012

Revenue from Water Resource Management Systems and Engineering Services increased 281.1% to $6.2 million from $1.6 million in Q1 2011
Revenue from Industrial Pollution Control and Safety increased 51.6% to $4.6 million from $3 million in Q1 2011
Gross profit was $5.2 million, slightly above $5 million in Q1 2011
Gross margin decreased slightly to 27.1%, compared to 28.5% for Q1 2011 but marked the first improvement in a quarter since the quarter ended June 30, 2011
Weighted average number of diluted shares outstanding was 8,317,224 for Q1 2012, compared to 8,155,222 for Q1 2011

The decrease in net income and EPS was due to several factors in the first quarter: relatively sluggish revenue recognition from several of the Company's largest projects such as the expansion phase of the Odors water processing plant and India wastewater system projects; delays between project awards and implementation, and a substantial increase in operating expenses mainly due to continued hiring of staff for business development and project execution to meet aggressive market expansion goals. As occurs each year, the company's revenues, net income and EPS decreased from the fourth quarter of 2011 to the first quarter of 2012, as winter weather and long holiday periods adversely affected sales.

Year 2012 Guidance Reaffirmation

Based on the performance in the first quarter of 2012 and the estimate for the remaining quarters, the Company reaffirms the previously announced guidance for the year 2012. Revenue is expected to be between $103 million to $128 million. Net income will likely be between $9.7 million and $12.1 million. Assuming the number of total shares outstanding remains at 8,317,224, excluding the 21,100 shares held in treasury, we expect our earnings-per-share ("EPS") to range from $1.18 to $1.47. These are the Company's targets, not predictions of actual performance. The foregoing statements regarding targets are forward-looking and actual results may differ materially.

Mr. Warren Zhao, Joint CEO of Tri-Tech Holding commented, "We are pleased to report a quarter with solid revenue growth and operational performance, including stronger-than-expected results from our water resources management business and achievements from our international projects in India, Qatar, Canada and Mexico, despite the challenge of the increased project execution costs and market expansion expenses. We are also excited about the strong order backlog and project pipeline we are pursuing, which make us much more confident with the remaining quarters and feel more comfortable to deliver the projected earnings for 2012. Here I would like to review some recent key business developments:

Vanceinfo Technologies (VIT) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Financial and Operating Highlights

Net revenues for the first quarter of 2012 increased to $86.1 million, up 50.0% from $57.4 million for the first quarter of 2011.
Net revenues from the Consulting and Solutions business increased to $9.8 million, up 109.1% over the same quarter last year.
Diluted earnings per share ("EPS") and non-GAAP diluted EPS(1) were $0.08 and $0.16, respectively, for the first quarter of 2012.
Employees totaled 15,693, including 14,111 billable professionals, as of March 31, 2012.

"We are pleased to report a strong quarter with revenue growth exceeding our expectation," saidChris Chen, Chairman and Chief Executive Officer of VanceInfo. "Demand remains healthy in both domestic and overseas markets. And we are beginning to see encouraging returns on our strategic investment in Consulting and Solutions capabilities, which has strengthened our client engagement model and further enhanced our competitive advantage. With continued growth opportunities ahead, we are confident in our ability to accomplish the financial and operational goals that we have laid out for 2012. "

Outlook for the Second Quarter and Full Year 2012

For the second quarter of 2012, the Company expects:

Second quarter 2012 net revenues to be at least $91 million, representing at least 33% increase from the corresponding period in 2011.
Second quarter 2012 non-GAAP diluted EPS(1)to be between $0.19 and $0.20, based on 44.2 million total ADS-equivalent average shares outstanding.

For the full year of 2012:

The Company raised its guidance and expects 2012 net revenues to be at least $368 million, representing at least 30% increase from 2011.
The Company reaffirms its original 2012 non-GAAP diluted EPS(1) guidance of $0.86 to $0.92, representing an increase of 16.2% to 24.3% from 2011, based on 44.3 million total ADS-equivalent average shares outstanding. The non-GAAP diluted EPS guidance reflects the Company's commitment to investing in and diversifying its business, the continued wage inflation environment in China and higher effective income tax rate in 2012.
The EPS outlook assumes an effective income tax rate of 14% to 16%.

Vipshop Holdings (VIPS) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

First Quarter 2012 Results

Net revenues for the first quarter of 2012 increased by 250.7% year-over-year to US$101.3 million, primarily attributable to a 247.2% increase in the number of active customers(1) to 1.0 million and a 276.4% increase in total orders(2) to 3.1 million.
Gross margin increased to 21.2% from 17.0% in the prior year period and 20.0% in the fourth quarter of 2011.
Net loss was US$8.6 million compared to US$6.7 million in the prior year period. Net loss margin improved to 8.5% from 23.2% in the prior year period and 60.4% in the fourth quarter of 2011.
Non-GAAP loss from operations(3) was US$6.6 million compared to US$4.2 million in the prior year period. Non-GAAP operating loss margin improved to 6.5% from 14.6% in the prior year period and 10.6% in the fourth quarter of 2011.

Mr. Eric Shen, Chairman and CEO of Vipshop, stated, "We are excited to report our first quarter 2012 financial results that reflect our continued strong growth momentum and increasing operational efficiencies. Despite the first quarter typically being our seasonally weakest quarter, we not only grew our net revenue by 250.7% year-over-year, but also expanded gross margin to 21.2%. We believe these results attest to both the sustainability of our model and our superior operational expertise and execution capabilities. By offering our consumers great savings on popular brands and our brand partners an effective means of monetizing excess inventory, we are confident in our ability to deliver strong returns for our shareholders over the long term."

Mr. Donghao Yang, CFO of Vipshop, commented, "In addition to strong top-line growth, we also remain focused on leveraging our brand, scale and market leadership to further enhance our gross and operating margins. Sequentially, we achieved increased operating leverage, as demonstrated by our continued gross and operating margin improvements. In particular, we continued to decrease fulfillment expenses as a percentage of net revenues to 16.7%. This was primarily due to new capacity ramp-up in our four warehouses and a continued shift to lower-cost local couriers from national couriers for order fulfillment. Overall, we are confident that our dual focus on growth and efficiency will lead to stronger shareholder returns as well as customer and brand partner loyalty."

Business Outlook

For the second quarter of 2012, the Company expects its net revenues to be between US$120 million and US$125 million, representing a year-over-year growth rate of approximately 196% to 208%. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which are subject to change.

Yucheng Technologies (YTEC) - Comments & Business Outlook

Tue, 15 May 2012 04:00:00 GMT

Unaudited financial results for the first quarter ended March 31, 2012.

First quarter software & solutions revenues of US$15.0 million, an increase of 56.1% year over year;
First quarter net revenue of US$16.5 million, an increase of 43.7% year over year, and first quarter net revenue (Non-GAAP)(1) of US$16.5 million, an increase of 43.7% year over year;
First quarter operating income of US0.2 million, an increase of 14.5% year over year, and first quarter operating income (Non-GAAP)(4)of US$0.9 million, an increase of 89.6% year over year;
First quarter operating margin of revenue of 1.2%, as compared to 1.6% in the prior year period, and first quarter operating margin of net revenue (Non-GAAP)(5) of 5.2%, as compared to 3.9% in the prior year period;
First quarter net loss of US$0.5 million, or loss of US$0.03 per share, as compared to net income ofUS$27.6 thousand, or US$0.00 per share in the prior year period, and first quarter net income (Non-GAAP)(6) of US$0.1 million, or US$0.01 per share, as compared to US$0.3 million, or US$0.02 per share in the prior year period

"We continued the strong growth in software & solutions revenues at the rate of 56.1% in the quarter, offsetting the negative impact from the declining revenues in platform & maintenance services businesses. On the other hand, increasing costs, notably increasing wages, more subcontracting to strategic partners, and research and development costs, caused declining gross margin compared with last year. We expect this trend to continue in the second quarter and rest of the year," said Mr. Weidong Hong, CEO of Yucheng Technologies. "Although the margin pressure will be persistent in the near term, we are also seeing gradual pricing increase from our customers that will mitigate partially the pressure. As a result, we are still comfortable with our full year guidance. Furthermore, we are optimistic about the long term potential of the company with our leading position in the industry."

Business Outlook

For the quarter ending June 30, 2012, Yucheng expects net revenue (non-GAAP) to be approximately US$19.0 million and net income (non-GAAP) per share of US$0.10.

3 Sbio (SSRX) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

First Quarter 2012 Results

Total net revenues increased by 24.5% over the first quarter of 2011 to RMB147.2 million (US$23.4 million), compared to RMB118.2 million (US$18.1 million) in the first quarter of 2011.
Operating income was RMB35.5 million (US$5.6 million), compared to operating income of RMB25.3 million (US$3.9 million) in the first quarter of 2011.
Net income was RMB32.6 million (US$5.2 million), compared to net income of RMB22.2 million (US$3.4 million) in the first quarter of 2011.
Net income per American Depositary Share ("ADS") on a fully-diluted basis was RMB1.44 (US$0.23) compared to net income per ADS on a fully-diluted basis of RMB0.99 (US$0.15) for the first quarter of 2011.
Cash, cash equivalents, restricted cash and time deposits were RMB790.8 million (US$125.6 million), including restricted cash of RMB0.7 million.

Dr. Jing Lou, chief executive officer of 3SBio, commented:

"We are on budget for the first quarter and reiterate our full year guidance of US$99-108 million. While we are concerned about government-mandated price cuts, we are confident that our economies of scale, recognized product quality and reputation for innovative research and development will enable us to continue to adapt to China's evolving health care reforms. We continue to focus on the implementation of the our business objectives for 2012, including continued focus on developing our pipeline products, new business initiatives in the dialysis service segment, seeking international partners to develop Uricase-PEG 20, and leveraging our world-class manufacturing capability to obtain approvals in countries where we can be among the first to introduce quality biosimilars at competitive prices."

Airmedia Group (AMCN) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

First Quarter 2012 Results

Total revenues increased by 10.1% year-over-year to US$67.5 million.
Net loss attributable to AirMedia's shareholders was US$7.3 million. Basic and diluted net loss attributable to AirMedia's shareholders per American Depositary Share ("ADS") were both US$0.12.
Adjusted net loss attributable to AirMedia's shareholders (non-GAAP), which is net loss attributable to AirMedia's shareholders excluding share-based compensation expenses, amortization of acquired intangible assets, impairment of goodwill and impairment of intangible assets, was US$5.4 million. Adjusted basic and diluted net loss attributable to AirMedia's shareholders per ADS (non-GAAP) were both US$0.09.

"Although we had a relatively weak first quarter due to the usual seasonality as well as advertisers' caution and delay of advertising spending, we haven't changed our expectation of a strong second half of the year. We are working hard to continue to strengthen our market position and to make our media assets more valuable," commented Herman Guo, chairman and chief executive officer of AirMedia.

"Despite the year-over-year decline of advertising revenues from automobile advertisers in the first quarter of this year, strong growth from many other sectors was more than enough to offset the shortfall from the automobile sector. We plan to continue to diversify our revenue sources and expect more robust growth when automobile advertising revenues resume strong growth," Ping Sun, AirMedia's chief financial officer, commented.

ADS Repurchases

On March 21, 2011, AirMedia's board of directors authorized AirMedia to repurchase up to US$20 million of its own outstanding ADSs within two years from March 21, 2011. As of May 6, 2012, AirMedia had repurchased an aggregate of 3,397,915 ADSs on the open market for a total consideration of US$11.1 million.

Business Outlook

AirMedia currently expects its total revenues for the second quarter of 2012 to range from US$68.0 million to US$70.0 million, representing a year-over-year increase of 16.2% to 19.6% from the same period in 2011.

AirMedia currently expects its concession fees to be approximately US$45.5 million in the second quarter of 2012. The quarter-over-quarter increase from the first quarter of 2012 will be primarily due to the concession fee commitments under concession rights contracts that were newly signed or renewed or are expected to be signed or renewed.

Baoshinn Corp (BHNN) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

BAOSHINN CORPORATION

CONSOLIDATED STATEMENT OF INCOME

(Stated in US Dollars)


	*Three Months Ended* *31 Mar, 2012*	*Three Months Ended* *31 Mar, 2011*
	$	$

Retail and Corporate revenue	9,709,094	8,501,752
Commission from travel booking services	13,960	32,218
Incentive commissions	111,372	74,303

Net sales	9,834,426	8,608,273
Cost of sales	(9,531,714)	(8,259,363)

Gross profit	302,712	348,910
Other operating income – Note 5	6,091	9,302
Depreciation	(5,218)	(5,438)
Administrative and other operating expenses	(354,720)	(321,771)

(Loss)/Income from operations	(51,135)	31,003
Other non-operating income - Note 6	973	1,486
Interest expenses – Note 7	(15)	-

(Loss)/Income before income taxes	(50,177)	32,489
Income taxes - Note 8	-	-

Net (Loss)/Income	(50,177)	32,489
Non-controlling interest	377	(4,028)

Net Income (Loss) attributable to the Company	(49,800)	28,461

Earnings per share of common stock – Note 4
- Basic	(2.33) cents	1.33 cents*
- Diluted	(2.33) cents	1.33 cents*

Weighted average number of common stock – Note 4
- Basic	2,140,000	2,140,000*
- Diluted	2,140,000	2,140,000*

See notes to consolidated financial statements

*As the number of common shares outstanding decreased as a result of a reverse stock split during year ended December 31, 2011, the computations of basic and diluted EPS shall be adjusted retroactively for all periods presented to reflect that change in capital structure.

Bona Film Group (BONA) - Notable Share Transactions

Mon, 14 May 2012 04:00:00 GMT

BEIJING, May 13, 2012 (GLOBE NEWSWIRE) -- Bona Film Group Limited (Nasdaq:BONA), a leading film distributor and vertically integrated film company in China, today announced that the Company has secured a strategic investment from News Corporation.

Under the investment agreement, News Corporation will acquire a 19.9% equity stake in Bona directly from the Company's Founder, Chairman and CEO, Mr. Dong Yu.

Mr. Yu has entered into separate agreements to acquire 1,000,000 Bona ordinary shares from SIG China Investments One, Ltd., 1,000,000 Bona ordinary shares from Matrix Partners China Funds and 1,500,000 Bona ordinary shares from the Sequoia Funds, at an average price of $11.40 per share, or $5.70 per American Depositary Share.

"We are thrilled to receive this strategic investment from News Corporation," said Dong Yu, Founder, Chairman and CEO of Bona Film Group Limited. "As one of the leading film distributors in China, we are committed to bringing the best quality Chinese films to broad audiences around the world. News Corporation's extensive global reach, investment and distribution will help accelerate our strategy to expand our global footprint.

"Since our IPO in 2010, we have developed our business significantly and we believe now is the time to diversify our ownership structure by introducing select strategic investors. This is an exciting period of growth for China's film industry, and we look forward to exploring the international commercial opportunities for Chinese films with our new partner," Mr. Yu concluded.

"One of Bona's unique advantages is its vertically-integrated business model, which differentiates the Company from other film distributors in China," said Dr. Jack Gao, SVP, News Corporation & CEO, News Corporation China Investments. "China's film market is growing at a rapid pace, positioning the country to be the second largest film market following the United States, and Bona's market leadership, compelling value proposition and tremendous growth potential make this an attractive opportunity for News Corporation."

Following the close of these transactions, Mr. Yu's ownership will be reduced to 8,210,803 ordinary shares (not including options to purchase 545,615 ordinary shares), representing approximately 27.0% of the Company's ordinary shares outstanding. These transactions are expected to close in the next 15 days and are subject to customary closing conditions.

China Ceramics Co (CCCL) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

First Quarter 2012 Reuslts

Revenue was RMB 372.3 million (US$ 59.1 million), up 20.9% from the first quarter of 2011;
Gross profit was RMB 113.0 million (US$ 18.0 million), up 18.6% from the first quarter of 2011;
Gross profit margin was 30.4%, down 60 basis points from the first quarter of 2011;
Net profit was RMB 71.7 million (US$ 11.4 million), up 32.8% from the first quarter of 2011;
On a quarter-to-quarter sequential basis, revenue was down 8.0%, gross profit was down 18.9% and net profit was down 22.2%;
Non-GAAP net profit, which excludes share-based compensation expenses, was RMB 73.4 million (US$ 11.7 million), up 20.1% from RMB 61.1 million (US$ 9.3 million) in the first quarter of 2011;
Non Gaap Earnings per fully diluted share were $0.57 vs. $0.51 in prior year period.

"We are pleased to report strong first quarter revenues and profits as the demand for our wide array of ceramic tile offerings drove solid sales volume to begin the year 2012," said Mr. Jiadong Huang, CEO of China Ceramics. "Our annual production capacity of ceramic tiles is currently 56 million square meters, which includes an additional four million square million meters of newly productive capacity at our Hengdali facility. As business conditions and market demand dictate, we will plan to phase in an additional 16 million square meters of capacity at Hengdali through the year which would increase our annual production capacity to 72 million square meters of ceramic tiles."

CEO Mr. Huang continued, "Our focus on Tier II and Tier III cities in China helped us to develop a leadership position in our industry as we continue to capitalize upon China's economic growth and urbanization trends. Going forward, we plan upon widening our distribution capabilities and bolstering our direct sales and marketing efforts to large property developers as a means to effectively reach the market. We are confident that our strong brand name recognition and wide spectrum of high quality ceramic tile products will help us to retain our competitive edge."

Business Outlook

China Ceramics has experienced strong year-to-year sales comparisons over the last two years due to its strong brand name, operating effectiveness and the successful execution of its capacity expansion plan. The Company's production capacity increased to 56 million square meters in 2011 from 38 million square meters in December of 2010. In 2012, the Company deems it possible that it will increase its annual capacity from its current 56 million square meters to a total of 72 million square meters of production capacity depending on the business outlook and as determined by market demand. We note that the Company's year-to-year comparisons going forward may be somewhat less than that experienced in past periods due to the Company's previously more rapid capacity expansion. However, though there is likely to be fluctuations from time to time, the Company expects to maintain strong gross margins as its customers are continuing to transition from lower margin ceramic tile products to higher margin, more advanced and better performing ceramic tiles.

While capacity has increased significantly, the utilization of capacity for the Company's facilities is currently 95.7%, which signifies continued healthy customer demand. In addition to plant capacity, the pricing of the Company's products is the other key factor in assessing revenues. The Company's average selling prices of its products has risen over time, though the effects of seasonality have resulted in somewhat flatter sequential quarter-to-quarter results.

The Company's backlog of orders for delivery in the second quarter of 2012 is approximately RMB 440.6 million (US$ 70.0 million), representing a year-over-year growth rate of 18.3% compared to the second quarter of 2011. This year-over-year growth rate is lower than that of previous quarters, reflective of the impact of somewhat slower customer demand. The Company estimates that its sales volume of ceramic tiles in the second quarter of 2012 will be approximately 12.9 million square meters.

China Education (CEII) - Share Structure

Mon, 14 May 2012 04:00:00 GMT

On May 8, 2012, China Education International, Inc. (the “Company”) filed a Certificate of Change (the “Certificate”) with the State of Nevada to effect a stock split of its outstanding and authorized shares of common stock at a ratio of 2.5 for 1 (the “Stock Split”). The Stock Split was approved by the board of directors of the Company. A copy of the Certificate of Change filed with the Nevada Secretary of State is attached hereto as Exhibit 3.1 and is incorporated herein by reference.

As a result of the Stock Split, the Company’s authorized shares were increased from 75,000,000 to 187,500,000 shares of common stock. Upon the effectiveness of the Stock Split, our issued and outstanding shares of common stock will be increased from 29,259,194 to 73,147,985 shares of common stock, all with a par value of $0.001. Fractional shares resulting from the Stock Split will be rounded up to the next whole number. The record date of the Stock Split was May 7, 2012 and the effective date of the Stock Split is May 14, 2012.

China Transinfo Tech (CTFO) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

First Quarter 2012 Results

Revenues decreased 20.7% year over year to $28.9 million
Net income was $2.4 million, or $0.10 per diluted share
Adjusted net income was $2.7 million, or $0.11 per diluted share vs $0.13 in prior year period
Backlog increased to approximately $194 million

"Although first-quarter revenues declined year-over-year, this was primarily due to the timing of contract progress and execution, and we won nearly $58 million in new contracts in the quarter versus $13 million a year ago. Moreover, our backlog increased by 12% to approximately $194 million, indicating a stronger book of business for China TransInfo," commented Mr. Shudong Xia. "On the bottom line, we maintained solid profitability despite the lower revenue level and a higher tax rate. We remain committed to growing our business alongside the favorable dynamics of China's transportation market."

Business Outlook

China TransInfo has successfully developed a first-generation commercial vehicle monitoring and control platform for the Ministry of Transport. To date, the Company has recorded more than 1.39 million vehicles registered on the platform and approximately 491,000 active users. In addition, the Company's variable interest entity, Beijing Zhangcheng Science and Technology Co., Ltd. officially released its new pedestrian navigation product named "PalmGo" on April 26, 2012. PalmGo is an application for Android-based smartphones which guides users to reach their destination via various public transportation options including buses, subways, and by walking. Moreover, PalmGo provides public transport information, such as estimated arrival times for selected transport connections and also provides walking navigation, voice navigation, point-of-interest (POI) location, among other features.

Mr. Xia continued, "At the end of the first quarter, our sales backlog was approximately $194 million, compared to $173 million at the end of 2011. We signed roughly $57.85 million in contracts during the first quarter. For 2012, we continue to expect revenues of approximately $170 million and adjusted net income of approximately $14 million, excluding non-cash, stock-based compensation expense and amortization expense of intangibles from acquisitions."

China Yuchai (CYD) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

First Quarter 2012 Results

Net revenue was RMB 3.7 billion (US$ 585.0 million) compared with RMB 4.2 billion in the first quarter of 2011;
Gross profit was RMB 779.4 million (US$ 123.8 million), a 21.2% gross margin compared with RMB 944.1 million in the first quarter of 2011, a 22.3% gross margin;
Operating profit was RMB 347.2 million (US$ 55.2 million) compared with RMB 428.5 million in the same quarter a year ago;
Net earnings attributable to China Yuchai's shareholders were RMB 167.9 million (US$ 26.7 million) versus RMB 230.5 million in the same quarter in 2011;
Earnings per share were RMB 4.50 (US$ 0.72) compared with RMB 6.18 for the same period in 2011.

Mr. Benny H Goh, President of China Yuchai, commented, "The weak market conditions continued into the first quarter of 2012 and were exacerbated by higher fuel costs as well as sluggish demand from the OEMs despite a decrease in their inventory levels. The Chinese truck and diesel engine markets continue to stagnate as construction activity across China slowed down. While we are still encountering strong headwinds due to the continued softening in the commercial vehicle market, we are attempting to mitigate the impact through our diversification strategy of being in different industries and offering diesel engines of different sizes. The bright spot in the current market is the bus segment which has continued to show growth. Our development of new products such as our high horse power marine and power generator engines and suite of natural gas engines will help us when the market recovers. "

Fuer International Inc. (FRXT) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

FUER INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATION AND COMPHREHENSIVE INCOME

(UNAUDITED)

	For the Three Months Ended March 31,
	2012			2011
Sales	$	24,536,281		$	22,856,848
Cost of goods sold		17,329,762			14,426,216
Gross profit		7,206,519			8,430,632

Operating and administrative expense:
Sales and marketing		765,977			1,005,820
General and administrative		640,209			491,668
Total operating expense		1,406,186			1,497,488
Income from operations		5,800,333			6,933,144

Other income (expense):
Interest income		908			2,890
Interest expense		(78	)		(67,812	)
Non operating Income (expense)		(101	)		60,303
Other income (expense), total		729			(4,619	)

Income before income tax		5,801,062			6,928,525
Income tax expense		1,459,492			1,093,358
Net income		4,341,570			5,835,167

Other comprehensive income:
Foreign currency translation adjustments		(91,183	)		(130,113	)
Comprehensive income	$	4,250,387		$	5,705,054

Earnings per share
Basic	$	0.34		$	0.45
Diluted	$	0.32		$	0.43

Weighted average number of shares issued and outstanding
Basic		12,958,031			12,958,031
Diluted		13,473,947			13,473,947

Kongzhong (KONG) - Joint Venture

Mon, 14 May 2012 04:00:00 GMT

BEIJING, May 14, 2012 /PRNewswire-Asia/ -- KongZhong Corporation (NASDAQ: KONG), a leading provider of digital entertainment services for consumers in the PRC, today announced that it has entered into a series of agreements with Wargaming.net to create a strategic partnership for all of Wargaming.net's existing and future games in the mainland China market, including but not limited to World of Tanks, World of Warplanes and World of Battleships.

As part of this partnership, KONG's board of directors has approved the grant of warrants for the issuance of issue up to 5.0 million American Depositary Shares ("ADSs') representing ordinary shares of KONG to Wargaming.net with an exercise price of US$ 5.94 per ADS. The warrants have a duration ranging from 1 to 6 years, and the exercise of the warrant is subject to various conditions, including the commercial launch of Wargaming.net's future games in the mainland China market.

Moreover, as part of this strategic partnership, Wargaming.net has granted to KONG (i) exclusive and long-term operating rights for World of Tanks, World of Warplanes, World of Battleships in mainland China and (ii) the right of first offer over the operating rights of any future Wargaming.net game (including mobile games) in mainland China.

The Company's Chief Financial Officer and Board Member, Jay Chang said, "We are excited to have Wargaming.net as a strategic partner of KONG. Through this partnership, we have fully aligned our long-term interests to maximize the success of all of Wargaming.net's games in the China market for many years to come."

Victor Kislyi, CEO of Wargaming.net said, "After a year of close cooperation and success with World of Tanks in China, we believe KONG is the ideal partner to support the growth and development of all of Wargaming.net's existing and future games for the China market and we are proud to be a strategic partner with KONG."

Neostem (NBS) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

NEOSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended March 31,
	2012			2011
Revenues	$	22,056,768		$	19,590,958
Cost of revenues		16,321,520			14,276,501
Gross profit		5,735,248			5,314,457

Research and development		2,714,507			2,755,192
Selling, general, and administrative		9,452,200			9,634,895
Operating Expenses		12,166,707			12,390,087

Operating loss		(6,431,459	)		(7,075,630	)

Other income (expense):
Other income (expense), net		166,703			(250,437	)
Interest expense		(1,096,133	)		(852,243	)
		(929,430	)		(1,102,680	)

Loss from continuing operations before provision for
income taxes and noncontrolling interests		(7,360,889	)		(8,178,310	)
Provision for income taxes		122,261			592,648
Net loss from continuing operations		(7,483,150	)		(8,770,958	)

Loss from discontinued operations - net		(1,723,718	)		(928,800	)
Net loss		(9,206,868	)		(9,699,758	)

Less - net income attributable to noncontrolling interests		141,265			473,233
Net loss attributable to NeoStem, Inc.		(9,348,133	)		(10,172,991	)

Preferred dividends		107,844			186,633
Net loss attributable to NeoStem, Inc. common shareholders	$	(9,455,977	)	$	(10,359,624	)

Basic and diluted (loss) per share attributable to:
Continuing operations	$	(0.07	)	$	(0.12	)
Discontinued operations	$	(0.02	)	$	(0.01	)
NeoStem, Inc. common shareholders	$	(0.08	)	$	(0.14	)

Weighted average common shares outstanding		111,806,949			73,654,165

Nq Mobile (NQ) - Notable Share Transactions

Mon, 14 May 2012 04:00:00 GMT

NetQin files to sell 6 million ADS. The company has not released a press release on this issue yet.

Omphalos (OMPS) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

OMPHALOS, CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011

(UNAUDITED)

		March 31,			March 31,
		2012			2011

Sales, net	$	42,494		$	243,215
Cost of sales		11,271			137,638
Gross profit		31,223			105,577

Selling, general and administrative expenses		218,079			248,281

Loss from operations		(186,856	)		(142,704	)

Other income (expenses)
Interest income		446			250
Gain (loss) on foreign currency exchange		(13,477	)		17,208
Total other income (expenses)		(13,031	)		17,458
Loss before provision for income taxes		(199,887	)		(125,246	)

Provision for income taxes		-			-

Net loss	$	(199,887	)	$	(125,246	)

Weighted average number of common shares:
Basic and diluted		30,063,759			30,063,759

Net loss per share:
Basic and diluted	$	(0.01	)	$	(0.00	)

Other Comprehensive (Loss) Income:
Net loss	$	(199,887	)	$	(125,246	)
Foreign currency translation adjustment, net of tax		53,712			(31,730	)
Comprehensive loss	$	(146,175	)	$	(156,976	)

Perfect World Co (PWRD) - Company Rebuttal

Mon, 14 May 2012 04:00:00 GMT

BEIJING, May 12, 2012 /PRNewswire-Asia/ -- Perfect World Co., Ltd. (NASDAQ: PWRD) ("Perfect World" or the "Company"), a leading online game developer and operator based in China, today announced the findings of the Audit Committee based on the results of an internal investigation. On January 10, 2012, Perfect World announced that its independent Audit Committee planned to thoroughly review the anonymous allegations posted on certain Chinese language websites on or around January 8, 2012 (the "Allegations") and would engage independent legal counsel to assist with the review.

The Audit Committee engaged the law firm of Greenberg Traurig, LLP ("Greenberg Traurig") to conduct an independent investigation into the Allegations. In turn, Greenberg Traurig consulted with independent forensic accountants. Greenberg Traurig had no prior relationship with the Company. Greenberg Traurig reported its findings directly to the Audit Committee.

Summary of Major Findings Click Here

Physical Property (PPYH) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

PHYSICAL PROPERTY HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

2011

2012

HK$’000

US$’000

Operating Revenues

Rental income

193

231

Total operating revenues

193

231

Operating Expenses

Rent and related expenses

(22

)

(25

)

Depreciation

(86

)

(86

)

(11

)

Other selling and administrative expenses

(184

)

&n...

Reconstruction Tech (RCON) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

Third Quarter 2012 Results

Total revenues in the three months ended March 31, 2012 increased significantly to RMB13.02 million ($2.06 million) from RMB8.76 million in the three months ended March 31, 2011. New clients contributed to most of the increase. Total revenues in the nine months ended March 31, 2012 decreased to RMB48.81 million ($7.72 million) from RMB62.74 million in the nine months ended March 31, 2011, mainly due to the deconsolidation of one variable interest entity ("VIE") in 2010.
Gross profit for the three months ended March 31, 2012 increased 332.69% to RMB6.23 million ($0.99 million) from RMB1.44 million in the same period of 2011. This increase was mainly due to higher margin of our new products based on horizontal well fracturing technology.
Net income attributable to ordinary shareholders for the third quarter of fiscal year 2012 was RMB119,000 ($19,000), compared to a net loss attributable to ordinary shareholders of RMB2.01 million in the same quarter last year. Net loss attributable to ordinary shareholders improved from RMB21.85 million for the nine months ended March 31, 2011 to RMB1.89 million ($0.3 million) for the nine months ended March 31, 2012.
Adjusted EBITDA was RMB989,000 ($156,000) for the three months ended March 31, 2012, up 142.78% compared to a loss of RMB2.31 million in the same quarter in 2011. Adjusted EBITDA was RMB320,000 ($51,000) for the nine months ended March 31, 2012, an increase of 103.32% compared to a loss of RMB9.65 million in the same period last year.
Diluted net income per share was RMB0.03 ($0.00) for the three months ended March 31, 2012 and diluted net loss per share was RMB0.48 ($0.08) for the nine months ended March 31, 2012, compared to diluted net loss per share of RMB0.51 and RMB5.53 for the three- and nine-month periods ended March 31, 2011.

"We believe that Recon should act as a professional integrator of products and services, rather than simply acting as an equipment supplier," said Mr. Yin Shenping, CEO of Recon, "To achieve this goal, we have dedicated time and resources to optimize our operations and to improve our business model. Recently, we have mainly focused on introducing the most suitable products and technologies from the U.S. and Canada to domestic oilfield companies. We have made tremendous progress in this aspect by cooperating with international industry leaders such as Emerson and Baker Hughes. There are also many smaller foreign companies that possess expertise in one product in certain segmented areas of the oilfield service industry. We are actively seeking opportunities to cooperate with these companies as well."

Mr. Yin continued, "We have also devoted substantial resources to R&D as part of our long term strategy. Through such investment, we have combined our years of experience with advanced technologies to provide the best solutions to our clients. These efforts promote our competitiveness and encourage long-term profitability. We believe our business will remain strong in the coming years."

Shengkai Innovations (VALV) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

FY2012 Third Quarter Highlights

Revenues were approximately $5.7 million compared with approximately $26.6 million in the third quarter of fiscal year of 2011 ("FY2011");
Revenues from the electric power segment were approximately $1.3 million compared with approximately $15.5 million in the third quarter of FY2011;
Revenues from the petrochemical and chemical segment were approximately $4.0 million compared with approximately $8.5 million in the third quarter of FY2011; and
Gross profit was approximately $2.6 million with a gross margin of 46.2%, compared with approximately $15.2 million and 57.0% in the third quarter of FY2011.
Non-GAAP earnings were $0.05 per diluted share compared with $0.54 per diluted share in the third quarter of FY2011.

Business Outlook

In response to the business disruptions and changes in the application of ceramic in the valve industry, Shengkai management has decided to gradually phase out its less profitable domestic market segments including the electric power market and focus on expanding the Company's presence in the more profitable domestic and foreign oil and chemical industries where ceramic valve products typically command higher prices than the domestic Chinese market. Successful penetration into the international oil and chemical markets, however, would require the Company to obtain various industry-wide certifications, including but not limited to ISO14000 and OHSAS18000 and other firm-specific supplier qualifications, which will take time to go through various application procedures, efforts in new product development and investment in additional or different equipment.

As such, the Company expects that in the immediately following quarter ended June 30, 2012, revenue from the electric power industry would continue to drop, and major contribution to our sales would be from the petrochemical and chemical industry. Such decrease may persist until our marketing and sales efforts to some new customers and projects pay off, and the expansion in the international market picks up meaningfully.

Sinovac Biotech (SVA) - CFO Trail

Mon, 14 May 2012 04:00:00 GMT

BEIJING, May 14, 2012 /PRNewswire-Asia/ -- Sinovac Biotech Ltd. (Nasdaq: SVA), a leading provider of biopharmaceutical products in China, has appointed Mr. Danny Chung as Chief Financial Officer, effective immediately. Ms. Nan Wang, who has served as interim Chief Financial Officer since August 2011, will continue as the Company's Vice President.

"Mr. Chung possesses the relevant experiences and credentials, which meet the Company's needs," said Dr. Weidong Yin, Chairman and CEO. "Beyond his audit and accounting expertise, Mr. Chung has proven adept in the financial management of Chinese divisions of multinational companies. We are pleased to welcome him to Sinovac."

Mr. Chung has joined the Company since November 2011 as Sinovac Beijing's finance director, who brings to Sinovac over 20 years of experience in audit and financial management including healthcare industry. Mr. Chung graduated in 1983 from the Hong Kong Polytechnic and obtained a Professional Diploma in Accountancy. He has held professional membership in the U.S. Institute of Certified Public Accountants since 1990.

Sky-Mobi (MOBI) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

Fourth Quarter 2012 Results

Total revenues increased 0.9% to RMB179.0 million (US$28.4 million) in fourth quarter 2012 compared to the fiscal fourth quarter ended March 31, 2011 ("fourth quarter 2011"). Revenues collected from third party channels (i.e., revenues not collected through mobile network operators) represented 17.1% of total revenues
Profit from operations was RMB9.0 million (US$1.4 million) in fourth quarter 2012, down 37.4% from fourth quarter 2011
Non-IFRS¹profit from operations was RMB17.0 million (US$2.7 million) in fourth quarter 2012, down 38.1% from fourth quarter 2011
Net profit was RMB12.0 million (US$1.9 million) in fourth quarter 2012, up 170.9% compared to fourth quarter 2011
Non-IFRS net profit was RMB20.0 million (US$3.2 million) in fourth quarter 2012, up 14.2% from fourth quarter 2011
Basic and diluted earnings per common share ("EPS") were RMB0.05 (US$0.01). Non-IFRS basic and diluted EPS were RMB0.08 (US$0.01)
Basic and diluted earnings per ADS² were RMB0.37 (US$0.06). Non-IFRS basic and diluted earnings per ADS were RMB0.61 (US$0.10)

Commenting on the Company's results, Michael Tao Song, Chairman and Chief Executive Officer of Sky-mobi, remarked: "We are pleased to have completed the quarter and full fiscal year with revenues ahead of our most recent guidance. The Chinese feature phone industry in the March quarter experienced minor growth from the December quarter mainly due to the Chinese New Year Holidays. The strong performance in revenue was the direct result of our continued focus on intensifying our monetization efforts in order to stabilize revenues as the domestic market transitions from feature phones to low cost smart phones."

"We formally announced at the Global Mobile Internet Conference last week the launch of our smart phone series of products we have been working on for the last six months, including the Android application store and PC suite, Android social gaming platform, and Android payment solution for developers. We are excited to see these products reach commercial readiness at this critical time, as local Chinese manufacturers begin to launch their sub RMB1,000 Android devices in volume," Mr. Song continued.

"With a portfolio of commercially competitive products for Android that have real monetization capabilities compared to the competition, we look forward to garnering solid support from our current network of Chinese handset manufacturers and developers. Our solid cash flow from feature phone operations and highly competitive, new products for low cost smart phones make us one of the best positioned mobile internet companies in China," Mr. Song concluded.

Commenting on the Company's results, Carl Yeung, Chief Financial Officer of Sky-mobi, said: "In addition to the pickup in feature phone sales during the March quarter, we began direct operation of China Mobile's reading and gaming base, which more than offset the systematic deterioration in the service provider billing industry. We expect the service provider billing sector to continue to deteriorate as operators place tighter controls on the use of mobile billing codes. However, our increased use of third-party payment providers and ability to regulate more revenue traffic directly to the carriers should largely offset this decline."

"Our non-IFRS net profit of RMB20 million is higher than that of any of the previous eight quarters, due to higher margins from our direct cooperation with China Mobile and prudent cost management designed to maximize cash flow from our feature phone operations. The cash flow will provide for a solid base for further development of smart phone programs and operations."

"Despite the stronger than previously expected fourth quarter and full year fiscal 2012, we want to be conservative in our approach to guidance and look to over achieve when smart phone products begin to monetize," concluded Mr. Yeung.

Business Outlook

For the fiscal first quarter 2013 ending June 30, 2012, Sky-mobi expects total revenues to be between RMB155 million to RMB165 million.

For the fiscal year 2013 ending March 31, 2013, Sky-mobi expects total revenues to be between RMB545 million to RMB560 million.

These are Sky-mobi's current projections, which are subject to change. You are cautioned that operating results in fourth quarter 2012 and fiscal year 2012 are not necessarily indicative of operating results for any future periods.

Skypeople Fruit Juice (SPU) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

First Quarter 2012 Summary:

Total revenue was $15.0 million, a decrease of 23% year-over-year
Sales revenue of concentrated kiwi juice and kiwi puree increased 26% to $3.8 million
Sales revenue of concentrated pear juice increased 19% to $4.8 million
Cash generated from operations was $14.8 million
Cash and cash equivalents were $76.7 million as of March 31, 2012

Yongke Xue, Chief Executive Officer of SkyPeople, commented, "We continue to be challenged by unpredictable market conditions and rising raw material costs due to the volatile pricing of fresh fruits. We understand that these factors are beyond our control, and have been working to further diversify our segment mix to offset, to the extent possible, the effect of seasonality. Nonetheless, we were able to generate healthy margins in two key product lines. We are also pleased to report solid cash flows generated from operating activities, further strengthening our cash position which enables us to execute our comprehensive growth strategy."

"During the quarter we achieved the following important developments which I would like to highlight. First of all, our cash balances had been independently verified, which substantiated our integrity and reassured investors as to our credibility. Secondly, we had commenced operation of a new fruit juice beverage production line in our Huludao Wonder subsidiary, which was expected to help us take advantage of economies of scale and focus on producing high margin fruit juice beverages. Thirdly, we appointed Mr. Xin Ma as our new Chief Financial Officer with confidence that his experience with U.S. publicly traded Chinese companies is an excellent fit to our needs. These developments reflected our management's commitment to focus on enhanced financial transparency, sound investor communications and an operational focus on high margin products. Our top priority continues to be generating solid returns on our investment so as to create long-term value for our shareholders," CEO Xue stated.

Versar (VSR) - Comments & Business Outlook

Mon, 14 May 2012 04:00:00 GMT

Third Quarter 2012 Results

Revenue for the third quarter of fiscal year 2012 was $25.7 million, a decrease of 18% compared to revenue of $31.5 million reported in the same quarter of fiscal year 2011. The decrease in revenue was primarily attributable to reduced activity from our projects in Iraq and lower revenue from our Environmental Services business segment.
Versar recorded net income of $1.0 million, or $0.10 per basic and diluted share for the third quarter of fiscal year 2012, compared to net income of $0.6 million, or $0.07 per basic and diluted share, in the third quarter of fiscal 2011.

Versar closed the third quarter of fiscal year 2012 with funded backlog of $97 million, an increase of 37% compared to approximately $71 million at April 1, 2011. This increase reflected the award of several large long term contracts and was indicative of the high quality proposals that were developed as a result of proposal preparation staff training and business development investments earlier this fiscal year.

Tony Otten, CEO of Versar said, “I’m very pleased with the results of our third quarter and our focus on profitable growth. The consistent improvement in our gross profit, operating income and earnings per share clearly shows we can perform in a challenging budget environment and the growth in funded backlog, in light of our investment during the year, bodes well for our future. Furthermore, the acquisition agreement announced last week to acquire Charron, a strategically attractive construction management company, will allow us to leverage our tremendous capability in International Title II Engineering stateside and will fold nicely into our business. Finally, our balance sheet remains a tremendous asset and provides a strong platform for future organic and M&A growth.”

American Lorain Corp (ALN) - Investor Alert

Sun, 13 May 2012 04:00:00 GMT

This Amendment No. 1 (“Amendment No. 1”) on Form 10-K/A amends the Annual Report on Form 10-K for the fiscal year ended December 31, 2011, originally filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2012 (the “Original Filing”). We are filing this Amendment No. 1 for the purpose of revising Item 9A of the Original Filing, Controls and Procedures, in response to comments received from the SEC staff by a letter dated April 25, 2012.

Amico Games (AMCG) - Investor Alert

Sun, 13 May 2012 04:00:00 GMT

On March 27, 2012 Vodafun Limited, the wholly owned subsidiary of Amico Games Corp. (“we”, “us”, “our”) terminated a number of agreements with Galaxy Software (Guangzhou) Limited which terminated our VIE relationship with Galaxy. Vodafun had a variable interest entity (“VIE”) relationship with Galaxy Software (Guangzhou) Limited (“Galaxy”), a company incorporated under the laws of China. Galaxy operates a number of mobile phone games on networks in China.

In September of 2011, an internal report was cited, reportedly produced by the China Securities Regulatory Commission (“CSRC”), which asked China’s State Council, or the cabinet of the PRC, to take action against VIE structures. The report describes VIE structures as a “threat”. Our management believes that the PRC government has expressed increasing concern over foreign investors gaining substantial control over strategically important PRC companies without any governmental approval. Our management believes that it is in the best interest of our company to terminate the VIE with Galaxy and search out a new acquisition target which we can acquire as a wholly owned subsidiary. We cannot do this with Galaxy as telecommunication services are protected from foreign ownership under Chinese law.

Cleantech Solutions (CLNT) - Share Structure

Sun, 13 May 2012 04:00:00 GMT

On May 4, 2012, the Company’s board of directors approved a previously negotiated agreement with Barron Partners LP, pursuant to which Barron, as the holder of warrants to purchase 55,160 shares of common stock at $12.00 per share and 165,000 shares of common stock at $16.98 per share, agreed to exchange or convert such warrants into (i) shares of the Company’s series A preferred stock which are convertible into 73,386 shares of common stock, and (ii) warrants to purchase 73,386 shares of this Corporation’s common stock at $2.70 per share, which was the market price of the common stock on the date the terms of the exchange were negotiated in February 2012. The number of shares and exercise prices reflect the one-for-ten reverse split effective March 6, 2012.

Mount Knowledge Holdings (MKHD) - CFO Trail

Sun, 13 May 2012 04:00:00 GMT

On March 31, 2012, Daniel A. Carr resigned as Chairman of the Board, President, Chief Executive Officer, Chief Financial Officer, Treasurer, and Secretary of the Corporation, effective immediately. The resignation of Mr. Carr was not a result of any disagreements relating to the Company’s operations, policies or practices.

Narnia Corp. (CFEC) - Reverse Merger Activity

Sun, 13 May 2012 04:00:00 GMT

On February 24, 2012, Narnia Corp., (the “Company”, “we”, “us”) entered into a letter of intent (the “LOI”) with Hangzhou Xuerun Education & Technology, Ltd., a People’s Republic of China corporation (“Xuerun”), pursuant to which we will acquire 100% beneficial ownership of Xuerun in exchange for 103,271,000 shares of the Company’s common stock.

Natural Health Trends (NHTC) - Comments & Business Outlook

Sun, 13 May 2012 04:00:00 GMT

NATURAL HEALTH TRENDS CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In Thousands, Except Per Share Data)

Three Months Ended March 31,

2011

2012

Net sales

5,175

9,090

Cost of sales

1,529

2,399

Gross profit

3,646

6,691

Operating expenses:

Distributor commissions

1,762

3,691

Selling, general and administrative expenses (including stock-based compensation expense of $14 and $20 during the three months ended March 31, 2011 and 2012, respectively)

2,030

2,437

Depreciation and amortization

232

Total operating expenses

4,024

6,140

Income (loss) from operations

(378

)

551

Other expense, net

(95

)

(63

)

Income (loss) before income taxes

(473

)

488

Income tax provision (benefit)

(19

)

Orient Paper (ONP) - Investor Alert

Sun, 13 May 2012 04:00:00 GMT

Since the spring of 2010 we have been trying to acquire approximately 667,000 square meters of land that is right across the street from our current facilities and is already approved by the government for our capacity expansion plan. However, since the acquisition process started we have met significant opposition by some local residents over the price that we offered for their land. We have finally completed on April 13, 2012 a partial closing on some 58,566 square meters of land with street frontage with local residents and secured all land use right permits. For the 58,566 square meters, we were refunded approximately $3.1 million of the purchase price on April 2, 2012 from the $7.3 million security deposit that we had paid as of March 31, 2012. Subsequently, we paid another $3.3 million in various compensation, taxes and recording fees to the sellers and the government to close out the acquisition on April 13, 2012. The area we acquired as of April 13, 2012 is not large enough to build major tissue paper production facilities, as we originally planned. However, because we have run out of space to house new employees and management hired since the construction of the 360,000 tonnes per year corrugating medium paper line, we plan to first build new offices and employee living quarters on the 58,566 square meters new land across the street. We estimate that the construction of these buildings may take up one third of the space of the new land. We will carefully evaluate the use of the rest of the new land, including making every effort to acquire more adjacent land in the rest of this year and in 2013 to allow the construction of new tissue paper plant.

Pacific Bepure Industry (PBEP) - Investor Alert

Sun, 13 May 2012 04:00:00 GMT

JINJIANG CITY, CHINA--(Marketwire – March 30, 2012) - Pacific Bepure Industry Inc. (OTC.BB:PBEP - News), one of China’s leading casual and sports footwear companies whose products are sold under the Baopiao (or “Bepure”) label -- which is synonymous throughout China for comfort and value -- announced today that it intends to remove its common stock from quotation on the OTC Bulletin Board as a consequence of the filing of a Form 15 with the Securities and Exchange Commission (“SEC”) on March 30, 2012. The Company also announced that because its common stock is currently held by less than 300 holders of record and was held by less than 300 holders of record as of the first day of the Company’s 2012 fiscal year, it expects to terminate the registration of its common stock under Section 12(g) and Rule 12g-4 thereunder and to suspend its reporting obligations under Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 12h-3 thereunder by filing of the Form 15 with the SEC.

The Company does not currently plan to continue to issue audited financial statements for the foreseeable future.

Sky Digital Stores (SKYC) - CFO Trail

Sun, 13 May 2012 04:00:00 GMT

On April 9, 2012, Mr. Johnny Chan tendered his resignation as Chief Financial Officer (“CFO”) of SKY Digital Stores Corp. (the “Company”) due to personal reasons. There were no disagreements between Mr. Chan and the Company or any officer or director of the Company which led to Mr. Chan’s resignation.

On April 9, 2012, the board of directors (the “Board”) appointed Mr. Nan “Harry” Zhang to fill in the vacancy created by the resignation of Mr. Chan.

Tht Heat Transfer (THTI) - Liquidity Requirements

Sun, 13 May 2012 04:00:00 GMT

We anticipate that cash on hand, and borrowing capacity under our bank loans will be sufficient to satisfy our ongoing obligations.

Transakt (TAKD) - Acquisition Activity

Sun, 13 May 2012 04:00:00 GMT

On May 3, 2012, we entered into a definitive agreement under which TransAKT will acquire substantially all assets of Vegfab Agricultural Technology Co. Ltd. (“Vegfab”, the “Seller”), a Taiwanese company, for the sum of US$5,500,000 pursuant to an Asset Purchase and Sale Agreement (the “Purchase Agreement”) with the Seller.

Vegfab is a manufacturer of highly innovative agricultural equipment used to grow a large variety of vegetables and fruit using simulated sunlight from LED lamps in proprietary a hydroponic system. Vegfab’s product line includes systems for commercial production, and a home growing system which allows families to grow safe, clean vegetables and fruit in their own homes.

Wonhe High-Tech (WHHT) - Reverse Merger Activity

Sun, 13 May 2012 04:00:00 GMT

The registrant anticipates that it may enter into a business combination with an operating manufacturer of high-tech information technology products business located in China. No agreements have been reached on terms of any such possible combination and no contracts nor other documents have been executed. Such high-tech information technology products manufacturing business was founded in 2010 by the President, Secretary and Treasurer of the registrant and it is in the process of obtaining audited financial statements. The registrant will not make a decision on any such possible combination until it receives the financial report of such possible target company and management has the opportunity to review and evaluate the report.

Worldwide Energy (WEMU) - Going Private News

Sun, 13 May 2012 04:00:00 GMT

The Company is evaluating strategic alternatives in order to satisfy its creditors and to provide working capital for ongoing operations. These strategic alternatives include the sale or closure of some or all of the Company’s business units and/or business divisions. The Company is in discussions with the management of its Nantong Joint Venture, Worldwide Energy and Manufacturing (Nantong) Co., Ltd. (the “Nantong JV”) regarding the future operations and ownership of the Nantong JV. The Company has also commenced a process to solicit and consider offers from interested parties for some of the Company’s business units. At this time, the Company has made no determination with respect to the future operations and ownership of the Nantong JV or the sale of any business unit.

Ziyang Ceramics (CAAHD) - Shareholder Letters

Sun, 13 May 2012 04:00:00 GMT

April 19, 2012

Dear Fellow Shareholders,

2011 was a pivotal year of transition for our company as we entered a new chapter in our corporate history through the acquisition and repositioning of our company as Ziyang Ceramics. We have now emerged as a leader among the manufacturers and distributors of ceramic porcelain tile products in Northern China, with distribution channels servicing major second and third tier cities across 10 provinces. We believe our new public presence in the United States will help us to open additional sales channels as we plan to expand and export our products into Central and South America. We hope to continue to build on our solid foundation as we continue to develop new products that will fuel our top line and bottom line growth as we enter 2012.

Since the inception of Ziyang Ceramics in 2006, we have built our organization into one of the largest porcelain tile producers in Northern China. In August 2011 we added approximately 81 million square feet of annual production capacity for a new production line of interior wall tiles. We now operate three ceramic porcelain tile production lines with an annual production capacity of approximately 200 million square feet of tile. Sales from these new wall tiles have exceeded our initial expectations and represented approximately 10% of our total revenues for 2011. We have also continued our efforts to streamline our operations in 2011 through the building of a fully automated packaging line and the upgrade of our warehousing and logistics systems. This has helped to significantly improve our operating efficiency and reduce our overall labor costs. As a result of the efforts of our whole team and the shift in our sales mix towards our higher priced polycrystalline line of tiles, we saw strong revenue and earnings growth in 2011. Revenues reached $43.1 million, up 38.7% from 2010 and net income reached $10.8 million, up 49.1% from 2010.We believe that China’s urbanization, the growth of the second, third tier cities, as well as government sponsored housing programs provide us with unique growth opportunities. We will seek to continue to capitalize on this opportunity as we actively increase the visibility of our brands and promote our new high-end products. We remain focused on the development of exciting new products, and increasing our distribution presence in major second and third tier cities. We have also continued to invest in raw materials to build our competitive advantage for the future. We now have rights to approximately 20 million metric tons of white clay deposits in close proximity to our facility. By controlling our own clay supply we are able to better control and minimize our raw material costs as well as receive preferential tax treatment from the provincial government due to the comprehensive utilization of resources. As a result, we currently receive an exemption from the 17% value added tax as well as a deduction from income tax equal to 10% of our revenue. We believe this gives us an extra competitive edge to enable us to thrive in our business.

We believe 2012 will be another record year for us. With our strong balance sheet and our new US presence we are poised to further expand our market share and expand into new markets internationally. We are proud to see our products being adopted for use in busy shopping malls, banks, and residential households. We are excited to continue to produce new stylish and durable tiles to further fuel our market penetration and growth. Our entire team of dedicated employees is driven to achieve our goals and achieve another year of record performance for our company. I want to thank each and every one of our shareholders for your support as we work diligently to maximize the value of Ziyang Ceramics for years to come.
Sincerely,

Mr. Lingbo Chi
Chairman of the Board and CEO

Feihe Intl (ADY) - Resolution of Legal Issues

Sat, 12 May 2012 04:00:00 GMT

Given our strong growth, we are very confident in our business going forward. In addition, we completed the redemption of all of Sequoia's redeemable common stock in April 2012.

Huiheng Medical (HHGM) - Investor Alert

Sat, 12 May 2012 04:00:00 GMT

The delay in receipt of customer payments places pressure on our working capital requirements. In particular, our two major customers (“Customer A” and “Customer B”) collectively accounted for 100% and 100% of our accounts receivable as of December 31, 2011 and 2010

Lifeway Foods (NASDAQ:LWAY) announces major retail expansion

Tue, 15 May 2012 18:22:00 GMT

Lifeway Foods (NASDAQ:LWAY) announces major retail expansion

Guanwei Recycling (NASDAQ:GPRC) shares fall hard on release of form 10Q

Tue, 15 May 2012 16:55:00 GMT

Guanwei Recycling (NASDAQ:GPRC) shares fall hard on release of form 10Q

Negative Seeking Alpha article on Qihoo 360 (NYSE:QIHU)

Tue, 15 May 2012 15:53:00 GMT

Negative Seeking Alpha article on Qihoo 360 (NYSE:QIHU)

GeoBargain on the radar Otc Markets Group (PINK:OTCM) reports strong first quarter 2012 results. ...

Tue, 15 May 2012 13:13:00 GMT

GeoBargain on the radar Otc Markets Group (PINK:OTCM) reports strong first quarter 2012 results. Please see our U.S. earnings beats/misses blog for more details.

SEC Euthanizes 397 "Dormant" Shells, Including Cray Computer, LA Gear

Fri, 04 May 2012 15:20:00 GMT

by Daniel Fisher, Forbes Staff

The SEC announced today it has ordered a halt to trading in 379 dormant shell companies to prevent them from being hijacked by fraudsters and used in pump-and-dump schemes.

Among them are some of the best-known names of the 1980s and 1990s including Cray Computer, LA Gear, and Dunes Hotels & Casinos. The list also includes a stock whose name alone should serve as a warning to anybody clueless enough to invest in it: Miniscribe, the Texas disk-drive manufacturer that imploded in 1989 accounting scandal that provided an early taste of the Enron, Worldcom and Adelphia accounting frauds.

The SEC said it suspended trading to tamp down the well-worn scamster trick of buying publicly traded shells, launching them on an eye-catching new trajectory like green energy or social networking with a blizzard of press releases, and dumping millions of shares of stock on mullet investors before closing up shop.

pump-and-dump schemers what guns are to bank robbers the tools by which they ply their illegal trade, said Robert Khuzami, Director of the SEC s Division of Enforcement.

Some of the stocks have highly recognizable names, although most stopped reporting financials to the SEC years ago. Cray Computer, an offshoot of the pioneering supercomputer company Cray Research founded by Seymour Cray in Chippewa Falls, Wis. in 1972, went bankrupt in 1995.

Cray Research was sold to Silicon Graphics, was subsequently spun out as Cray Inc. and trades on Nasdaq with a $386 million market cap. Cray Computer, which filed its last report with the SEC in 1997, was still listed on Pink Sheets with a flatlined stock price.

LA Gear, which blasted its way into public consciousness on the feet of a moonwalking Michael Jackson in 1989, faded in the late 1990s and went bankrupt in January 1998. A company with the same name still sells shoes, although the original still had a ticker on the Pink Sheets.

Other faded but familiar names in the SEC s role of death included Dunes Hotels & Casinos, which despite the name was in the grain-processing business as of its last SEC filing in 2002; Freuhof Trailer Corp.; NetObjects; and Smith Corona Corp.

Then there are the neverwuzzes who should have had their moment in the stock-market sun, but failed to achieve greatness. My favorites are Electro Brain and Ben Ezra, Weinstein Co. This last one I wrote about back when I was with Bloomberg in the 1990s. It was a company that was going to develop software to make it easier to go public.

...

A Fraud Went Undetected, Although Easy to Spot

Thu, 23 Feb 2012 22:00:00 GMT

by Floyd Norris, Chief Financial Correspondent of The New York Times

Without a rule of law, investing is an extraordinarily hazardous undertaking.

The latest charges of fraud in a Chinese company traded in the United States were filed this week by theSecurities and Exchange Commission against two former executives of a Chinese coal company who the commission says stole and sold the company s assets before they raised more than $100 million from public investors in the United States.

A mine in Shanxi Province owned by Puda Coal, which got millions from American investors.

In some ways, the theft was not the most audacious part of the strange case of Puda Coal, which traded on the NYSE Amex stock exchange in New York. The attempted cover-up, involving a forged letter from a Chinese state-owned entity and a fake takeover offer, were even more brazen.

But what is most amazing is how easy it turned out to be to discover the fraud. It was basically spelled out in documents that were publicly available in China months before American and Canadian investment banks, advised by major law firms, raised the money from investors. But it appears no one bothered to look not the underwriters and not the auditors.

They charge a lot for due diligence, says the man who uncovered the fraud, Dan David, a 43-year-old money manager from Skippack, Pa. But they don t do it.

At the same time Americans were investing money in the company, Citic Trust, a Chinese state-owned company, was selling investments in the same asset to Chinese investors, saying evidently correctly that it controlled the asset.

What the documents showed was laid out this week by the S.E.C. as it filed charges of civil fraud against Ming Zhao, Puda s chairman, and Liping Zhu, the company s former chief executive. Puda s principal asset was a coal mining company, Shanxi Puda Coal. But in 2009, the chairman transferred that interest from Puda to himself. The next year, he sold a controlling interest in it to Citic.

Puda, which had gone public in the United States through a merger with a shell company in 2005, did not disclose those crucial facts when, in February 2010, it raised $12.8 million selling stock to American investors, in an offering underwritten by Brean Murray, Carret & Company of New York and Newbridge Securities of Fort Lauderdale, Fla. In December 2010 , a $100 million share sale was underwritten by Macquarie Capital, a Canadian firm, and Brean Murray. Investors in that offering paid $12 a share for stock that now trades for about 25 cents.

All told, the underwriters collected fees of $6.5 million, but they seem not to have acquired the documents that Mr. David said cost him $500. A spokeswoman for Macquarie declined this week to comment, and officials of the other firms did not respond to inquiries.

The fraud blew up last spring. On Friday, April 8, Mr. David posted his analysis on his Web site, GeoInvesting, and a similar analysis was posted on the Web site of Alfred Little, a firm that had a reputation for spotting Chinese frauds. That analysis was unsigned, but it was written by Andrew Wong, the head of the IFRA Group, a Hong Kong research firm.

In contrast to most of the other Chinese frauds, where the business was not real, this was a profitable company that the chairman just stole, Mr. Wong said in an interview this week. He said he had looked into the company after Mr. David asked him to review his own research.

Incredibly, Mr. Wong wrote in his report, Puda s auditor, Moore Stephens, failed to catch this theft of an entire company that is clearly documented in government ownership filings that any lawyer can obtain directly from the source.

The stock plunged to $6 by the time the New York Stock Exchange suspended its trading on the following Monday. It would not trade again until it traded over the counter for two days in August, after it was delisted from the N.Y.S.E. The S.E.C. suspended it again. It trades now on the over-the-counter market.

The company s audit committee investigated the allegations, and eventually concluded they were accurate. But there was excitement along the way. In April, Mr. Zhao produced a letter, ostensibly from Citic, saying that it had not purchased the company, and sought to reassure investors by saying he was considering taking the company private at $12 a share. Eventually, Citic said the letter was false, and the company said Mr. Zhao had admitted forging it.

In July, Moore Stephens quit as the company s auditor and said its previous audits could not be relied on. It did not respond to requests for comment for this column.

In most Chinese fraud cases, the allegations are made by short-sellers, who have bet that the stock will decline. Mr. David, however, is a manager who owned Chinese companies and believed in them. He set out to prove the shorts were wrong.

We hired our own Chinese team to discredit the short-sellers, because I did not believe what they were saying, Mr. David told me. What came back to me was that the short-sellers were right. He asked the investigators to look at companies in which he had invested or was considering buying. Puda was one of the latter.

The readily available documents were filed with China s State Administration for Industry and Commerce, known as S.A.I.C., showing transactions affecting the filing companies. Chinese companies must publish lists of all their subsidiaries, and it is necessary to check filings by all the subsidiaries. The forms are in Chinese, of course, but for the money that investment banks charge, you would think they could afford a few translators.

The two men charged by the S.E.C. are evidently in China and have no intention of coming to the United States to face the allegations. There is probably nothing the commission can do.

The Chinese authorities appear thus far to have shown no interest in bringing charges against the men named by the S.E.C., but that does not mean the government has ignored what is happening.

Mr. David said the Chinese government was restricting access to some S.A.I.C. filings and asking why people were interested in a certain company. He said the government was telling companies who was asking questions, a fact that has scared some investigators, who fear reprisals.

A basic requirement of investment markets is for investors to have a reasonable confidence that they are not being defrauded, and if it turns out they are that the government will seek to punish those responsible. Those who invest in Chinese companies today have reason to worry.

You might be surprised to learn that you are one of those people. I know I was. Through an employee plan, I own shares in a number of Vanguard mutual funds. It turns out that Vanguard bought more than a half-million shares in Puda, some of them for a fund in which I have an investment. Vanguard sold those shares after the scandal broke, no doubt at a loss.

Source: NY Times (permalink)

PhillyDeals: Stocks, gas prices, and the November election

Wed, 22 Feb 2012 08:01:00 GMT

Maybe what the stock market lacks is a motivated seller. Will President Obama fill that role this election year?

"Obama's doing what he can to save his job, and that means his people are hard at work" trying to make things look better by November, which could be good for stocks, cracked Adam Sherman, head of FirstTrust Financial Resources, a bank-owned Center City firm that invests $700 million in client funds.

We talked as the Dow Jones industrial average traded around 13,000 points Tuesday, its highest since 2008.

There have been some encouraging signs: lower unemployment, a recovery in plastered financial stocks like Bank of America, higher sales at big industrial companies like DuPont.

But it may be tough to believe the government is aiding the public, I noted, when gasoline prices are also approaching 2008 highs.

"I don't think ExxonMobil's trying to help the president very much," agreed Sherman.

It's not likely "that the market is moving up just because of what's happening inside the Beltway," said Terry Siman, a former head of the national Institute of Certified Financial Planners, who last year sold his $170 million-asset Philadelphia planning business to United Capital Financial Advisors.

Rather, the "huge amounts of cash on the sidelines" from profitable companies and restless investors are finally, slowly, being put to work, and the Dow Jones' rise reflects the expectation of a creeping recovery, Siman says.

New loan

Owners of Northeast Philadelphia's Grant Plaza shopping development, listed by Morningstar Credit Ratings L.L.C. last month among the many commercial real estate properties with loans facing liquidation, has attracted new financing and new tenants, and is "96 percent" leased, says Isaac D. Massry of Wharton Realty Group, Eatontown, N.J., Grant Plaza's owner since 2005.

Morningstar raised concerns about loan payments and leasing income. Massry says the former loan, whose balloon payments were to come due this month after an extension, was refinanced with Beneficial Bank and previous lenders paid in full.

Former tenant Eckerd Drugs' replacement, a Dollar Tree, pays "similar rent" to the drugstore chain, he added. The space left by video chain Blockbuster was filled by a Sleepys "within a few days," and a Supreme China Buffet will take a vacant 11,000-square-foot space "within a month or two."

So no sale for Grant Plaza, Massry concluded: "We plan on holding on to this asset for the long term."

Document wars

I wrote Tuesday about Skippack-based GeoInvesting, which has gone from investing in U.S.-traded China companies and accepting cash for "clarifying" their financial statements for U.S. investors to criticizing and short-selling some of the same China companies, such as coal-mine operator L&L Energy Inc., on whether they actually own the assets they claim.

Mark Jensen, portfolio manager at New York-based T-Squared Partners L.L.C., the largest institutional holder of L&L Energy, says that people working with his firm have visited the mines "more than a dozen times" and verified sale documents and that confirmed sale information has been filed with the Securities and Exchange Commission.

The company filed a translation of a sale agreement with the SEC in 2010. Jensen questioned the accuracy of conflicting mine-ownership documents posted by GeoInvesting, noting they were notarized on a Sunday, when China government notaries are closed.

GeoInvesting's Dan David vouched for his documents, and sent me reports from two other critics who join with his firm in questioning L&L's value and its public filings.

Whom to trust? A U.S. investor might have a tough time judging without going to China. And even then.

PhillyDeals: Manayunk Paper Mill Faces a New Reorganization

Tue, 21 Feb 2012 08:01:00 GMT

The paper mill on flood-prone Flat Rock Road in Manayunk, one of the oldest industrial sites in Philadelphia, has changed owners at least half a dozen times since the 1970s. It's facing yet another reorganization.

Current owner Sun Capital Partners Inc., the Florida-based buyout firm coheaded by Marc Leder, one of the new owners of the Philadelphia 76ers, in 2008 made Manayunk its corporate headquarters for a reorganized group of paperboard and packaging plants called Paperworks Industries Inc.

Boss Thomas Garland said last year he expected the company would keep growing, under Sun's ownership and with financing from PNC Bank, for three to five years at least.

But Garland left Paperworks last month. On Feb. 7 Standard & Poor's cut Paperworks' credit rating from B to B- and warned of further cuts and bond defaults due to "sluggish demand" and "weaker-than-previously-expected" cash flow after Sun refinanced the company's debt last year.

Temporary boss Richard F. LeBlanc announced last week that Paperworks was being split into separate paperboard (including Philadelphia) and packaging divisions, to "improve efficiency and streamline service." LeBlanc and a spokeswoman did not return calls. The plant employs around 150, down from 800 in the 1970s.

Here to China

A couple of Skippack-based investors say they're finding big, ugly holes in the stories China-based companies tell U.S. shareholders.

Majid Souedian, a Temple graduate who learned portfolio management at Vanguard Group before setting up his own investment firm, started talking foreign stocks with Dan David, a store-chain jewelry operations manager, a decade ago when they met playing flag football in a Lansdale league.

By 2006, they had set up what is now GeoInvesting, which hires researchers to check out China stocks.

They say they were looking for winners. But "what we found was shocking," David said. Information in Securities and Exchange Commission filings by mid-market China companies was often outdated, "wrong, or lying, take your pick." U.S. brokers and analysts seemed to have little interest in exposing problems.

The pair's conclusion, David said: "Most of the short sellers" who bet against particular China stocks "are right."

Last week, GeoInvesting issued a second report amplifying its January accusations that Seattle-based L&L Energy, a Nasdaq-traded company that counts Goldman Sachs, BlackRock, and the TIAA-CREF college pension fund as investors, and former Bush and Clinton administration officials among its officers, does not own a coal-mine complex in China's Yunnan province that it claimed as an asset.

GeoInvesting's new report identifies businessmen Hu Shiwei and Zhang Baoguo as the mine's controlling owners, posts local-government mine inspection and licensing documents and English translations it says prove the men's ownership, and links a video of Hu denouncing L&L's claims.

L&L answered the first report with a statement that a subsidiary of a subsidiary had agreed to buy the mine. Last week, I asked spokesman Sean Morishige about the documents in GeoInvesting's detailed second report. He promised the company would respond. It hasn't. L&L shares have fallen from above $7 a year ago to below $2.50.

GeoInvesting has also posted reports critical of China Natural Gas Inc., Lotus Pharmaceuticals, and chicken breeder Yuhe International, each of whose share prices have since fallen below $1.

"Investors still have no idea that their mutual funds hold these," David told me. He said China does little to punish fraud against U.S. investors. "I still believe China is the future - but until they have the same liability as U.S. companies, corruption and fraud" will be common there.

Wrong

Buyout firm TGP (Texas Pacific Group) is not the new owner of Cardone Industries Inc. of Northeast Philadelphia, as I wrongly stated in print editions of Sunday's column. The sale, announced last fall, was canceled, as The Inquirer noted Jan. 21.