SEC Goes After SinoTech, Key Executives and Chairman On May 2, 2012, the SEC charged SinoTech Energy Ltd. (formerly Nasdaq: CTE, currently OTC PINKS: CTESY) and two senior officers, SinoTech CEO Guoqiang Xin and former CFO Boxun Zhang, of intentionally misleading investors about the value of its assets and its use . . . → Read More: Newsbriefs, May 14, 2012]]> NEWSBRIEFS

SEC NEWS

SEC Goes After SinoTech, Key Executives and Chairman
On May 2, 2012, the SEC charged SinoTech Energy Ltd. (formerly Nasdaq: CTE, currently OTC PINKS: CTESY) and two senior officers, SinoTech CEO Guoqiang Xin and former CFO Boxun Zhang, of intentionally misleading investors about the value of its assets and its use of $120 million in IPO proceeds. Additionally, the SEC charged company chairman, Qinzeng Liu, in a separate $40 million theft from the company.

According to the SEC Daily Digest, SinoTech Energy Limited allegedly grossly overstated the value of its primary operating assets in financial statements, specifically the lateral hydraulic drilling (LHD) units that are central to its business. The company’s IPO registration statement in November 2010 promised investors it would spend $120 million raised in the IPO to acquire LHD units, but the company’s purchase contracts and other documents otherwise show it acquired far fewer LHD units, lied about the number it acquired, and grossly overstated the value of the units.

Liu is accused of secretly siphoning at least $40 million from a SinoTech bank account in the summer of 2011. According to the SEC Daily Digest, “He then stood silently by as SinoTech – attempting to counter negative Internet reports that the company was potentially fraudulent – falsely assured investors that the company had that money and more in the bank. Liu later admitted his theft to SinoTech’s auditor and board of directors, but he retained his position and investors were not informed of the incident.”

For more on the case, visit: http://www.sec.gov/litigation/admin/2012/34-66906.pdf“>http://www.sec.gov/litigation/admin/2012/34-66906.pdf

SEC Revokes Registration of Deadbeat Asiamart
On April 23, 2012, the SEC announced it was revoking the registration of Hong Kong-based Asiamart Inc. (OTC PINKS: AAMA). The company has not filed with the SEC since August 2009. The company came to the market via a reverse merger in late 2005 with Las Vegas based, Fortune Entertainment Corp. under the original name WT Holdings Corp. It filed a Chapter 7 petition in the U.S. Bankruptcy Court for the District of Delaware, which was still pending as of March 8, 2012. The company operated outlets and discount shopping centers catering primarily to tourists visiting Hong Kong from mainland China. For more visit: http://www.sec.gov/litigation/admin/2012/34-66843.pdf

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MARKET MOVES

Vipshop Announcing Numbers
Vipshop Holdings Limited (NYSE: VIPS) plans to release its first quarter 2012 financial results today (May 14) after market close. It will hold a conference call on Tuesday, May 15, 2012 at 8:00 a.m. Eastern Time to discuss the financial results. Check the company website for call in numbers and I.D.: http://ir.vipshop.com/phoenix.zhtml?c=250900&p=irol-irhome. The company is trading at $5.68 today. Its high since going public in late March 2012, is $6.23. The company had a lackluster IPO, but should get some kudos for debuting during a time when Chinese companies are getting pummeled in the U.S. markets.

China Nutrifruit Spiraling Down
China Nutrifruit Group (Amex: CNGL) seems to be quietly spiraling downward. According to a document filed with the SEC on May 2, 2012, that on April 26, 2012, the company’s counsel received a phone call from NYSE Regulation stating that trading in the company’s common stock had been halted on Amex, effective at 9:00 a.m.on April 26, 2012. On May 4, the company filed an 8-K with the SEC regarding a series of changes in its board, including the resignation as the director and chairman of the audit committee, Chun Wai Chan. Crocker Coulson of CCG IR indicated last week the firm no longer represents the company and it seems the company has not engaged another firm. CCG IR was listed as the IR contact on the company’s last press release on March 2012, 2012.

The events seem to stem from a rash of returns and refunds to customers of its fruit drinks based on having an inordinate amount of sodium. The total amount at the time of the filing was approximately U.S. $28 million. The company expects nearly $5 million in refunds to be paid. CBK made an effort to reach out to China Nutrifruit’s CFO, Coleman Chang, for comment, but received no response.

China GrenTech Goes Private
On April 27, 2012, Shenzhen-based China GrenTech Corp. (Nasdaq: GRRF) completed its merger with Talenthome Management Ltd. It is now a private company, owned by the company’s Chairman, CEO, Yingjie Gao and CFO, Ms. Rong Yu and founder, Ms. Yin Huang. The company is a provider of radio frequency and wireless coverage products and services. The company came to the U.S. markets in March 2006, unwritten by leading investment banks, Piper Jaffray, Bear Sterns, and WR Hambrecht + Co. Its legal counsel was Sidley Austin LLP and Simpson Thacher & Bartlett LLP. It had a successful IPO opening at $18 per ADS, respectably above its forecasted price of $14 – $16. It is not clear why the stock did not hold its value. It was not the target of short selling, so-called “research firms.” It was trading in the mid $2.00′s when the company announced its plans to go public in January 2012.

Universal Travel Begins Trading on the OTC PINK, Under “UTRA”
Late last month investors in Shenzhen-based Universal Travel Group thought they were out of luck when Universal Travel ceased trading on the NYSE (UTA). On May 9, the company announced that it has begun trading on the OTC PINK, under the ticker: “UTRA.”

China Shenghuo to Voluntarily Delist from Amex
On April 20, 2012, Kunming-based China Shenghuo Pharmaceutical Holdings, Inc. (formerly, NYSE Amex LLC: KUN) announced it would voluntarily delist from Amex due to the board’s doubt the company would be able to get back into compliance with Amex in the allotted time period provided. The companies shares ceased trading on May 10, 2012, and it is now trading on the grey markets. After falling out of compliance, Amex demanded the company turn in a plan to regain compliance for review by May 1, 2010. The company came to the U.S. markets via a reverse merger in 2006 and began to trade on Amex in 2007. Founded in 1995, China Shenghuo is a manufacturer of Sanchi-based medicinal and pharmaceutical, nutritional supplements and cosmetic products.

From the company’s press release: “In view of, among other things, the belief of the Board of Directors that under the Company’s current circumstances, it is not reasonably practicable for the Company to establish and implement a plan of compliance that would satisfy AMEX’s continued listing requirements, the substantial financial burden on the Company as a result of its status as a U.S. public company, the Company’s inability to raise capital in the United States and the minimal benefits derived from being a U.S. public company, the Board of Directors of the Company determined on April 19, 2012 that it is in the best interest of the Company to voluntarily delist the Company’s common stock from AMEX and deregister its shares with U.S. Securities & Exchange Commission (the “SEC”).”

China Shengda Packaging Fall Below Minimum Bid Price
Hangzhou-based China Shengda Packaging Goup (Nasdaq: CPGI) received a letter of non-compliance letter from Nasdaq on May 7, 2012, based on its shares trading below the required minimum price of $1.00 per share for 30 consecutive days. The letter has no immediate effect on the trading of its stock.

Zhongping Engages Advisors for Going Private Proposal
Beijing-based Zhongpin Inc. (Nasdaq: HOGS) has engaged Barclays Bank PLC as an independent financial advisor for the company’s board of directors regarding the “going private” proposal. Akin Gump Strauss Hauer & Feld LLP has been retained as the Special Committee’s legal counsel.

Wowjoint Holdings
Beijing-based Wowjoint Holdings Ltd. (Nasdaq: BWOW, BWOWW and BWOWU) has transferred the listing of its ordinary shares, warrants and units from the Nasdaq Global Market to the Nasdaq Capital Market has been approved by Nasdaq. In Nov. 2011, the company announced that it received notifications from Nasdaq, notifying it that it was not in compliance with the Minimum Market Value of Publicly Held Shares (MVPHS) of $5,000,000 and the $1.00 Minimum Closing Bid Price requirements. The company was granted until April 30, 2012, to regain compliance with the $5,000,000 MVPHS requirement and until May 2, 2012 to regain compliance with the $1.00 Minimum Closing Bid Price requirement. In anticipation of not meeting the minimum bid price requirement before May 2, 2012, the company requested and received approval from Nasdaq to transfer from the Nasdaq Global Market to the Nasdaq Capital Market.

PEOPLE

China Biologic Names its Chairman as CEO
Beijing-based China Biologic Products Inc. (Nasdaq: CBPO) has appointed its Chairman David Gao to the additional position of CEO. Gao succeeds Colin (Chao Ming) Zhao, who will continue to serve as the President of the company. Gao has resigned from his posts in the company’s Audit Committee, Compensation Committee, and Governance and Nominating Committee, effective May 10, 2012. The company plans to fill the vacancy in the three committees resulting from Gao’s resignation.

Qiao Xing Mobile CFO Resigns
Beijing-based Qiao Xing Mobile Communications Co. Ltd. (NYSE: QXM) announced on May 2, 2012, the resignation of its chief financial officer, Mr. Kok Seong Tan, effectively immediately. The company is currently seeking a replacement. The company manufactures mobile handsets.

PUBLISHER’S NOTES

Dear Friends:

It’s been an exhausting month in regard to U.S./China relations and keeping up with the “China” . . . → Read More: Publisher’s Notes, May 7, 2012]]> [CBK publishes news for subscribers of its “Week in Review” email newsletter prior to publishing to our web site. Sign up for our free newsletter in the top right hand corner of our site.]

PUBLISHER’S NOTES

Dear Friends:

It’s been an exhausting month in regard to U.S./China relations and keeping up with the “China” news in general. Even today The New York Times has a front-page story on Bo Xilai, one of 46 the paper has published on him, only four of them prior to its Feb. 16, 2012, article speculating there was something amiss, “Scandal May Topple Party Official in China.” Of note, it’s curious given the amount of attention he is now getting from the U.S. press that the first time he seems to have been cited  in the Times was just as a mention in the obituary of his father, Bo Yibo, in early 2007. The second time was in Feb. 8, 2012, article about rumors of  Wang Lijun showing up at the U.S. consulate hoping to defect (Wang served as deputy Mayor of Chongqing when Bo was operating the big sweep of organized crime).

The second, and more optimistic, part of civil right’s lawyer Chen Guangcheng’s story is only just beginning. But the timing of his trek to the U.S. Embassy in Beijing, just prior to Secretary Clinton’s visit and his arrival in the U.S., may not hamper trade talks between the U.S. and China, but it might make the table where they sit across from each other just a bit wider.

Working in the sector of China-based/U.S. listed companies all this division seems a bit unreal and unnecessary. During the time all this news has been widely reported, I hosted in my home Yiqing Zhang, of Kunming, my intern from Syracuse University’s S. I. Newhouse School of Public Communications. We walked the south end of Central Park, went to Whole Foods, ate burgers with some kick-ass white cheddar cheese, and talked late into the night. Tomorrow I’m having lunch with a journalist friend who works for a Chinese paper. Mostly when we meet we talk about the same issues I talk about with all my journalism friends in New York—the budget cutting in the press, the prices of housing in the city, where to get good Chinese, uncomfortable situations in the workplace.

Overall, most of the people I know working in this sector have had a similar experience working with their cross-border clients or colleagues. Most are enjoying being able to travel in China and being part of the “story” which will be told in history books about China’s debut (or revival) on the global stage. I bet even the most “dedicated” short sellers focused on “cleaning-up” Wall Street by solely targeting Chinese companies have great Chinese friends, even spouses, and are in awe of China’s history.  I wish both governments would tap this group of people—like those who read this newsletter–to help mitigate what should be a “closing” divide between the two countries, not a festering wound.

Watch for more news this week. Have a good one.

Best,
Janet Stites
Publisher & Editor
China Business Knowledge
jstites @ chinabusinessknowledge.com

MARKET MOVES

China Cord Blood Secures Convertible Debt Deal with KKR Hong Kong-based China Cord Blood Corp. (NYSE: CO) has . . . → Read More: Newbriefs, May 7, 2012]]> [CBK publishes news for subscribers of its “Week in Review” email newsletter prior to publishing to our web site. Sign up for our free newsletter in the top right hand corner of our site.]

MARKET MOVES

China Cord Blood Secures Convertible Debt Deal with KKR
Hong Kong-based China Cord Blood Corp. (NYSE: CO) has closed a U.S. $65 million convertible debt financing with funds affiliated with KKR China Growth Fund L.P. The convertible debt carries a 7 percent interest per annum and inclusive of the interest, a total internal rate of return of 12 percent per annum. With a maturity of five years, the convertible debt holder can convert the convertible debt into ordinary shares of the company at a conversion price of $2.838, subject to customary anti-dilutive adjustments. On a fully converted basis, the total ordinary shares issuable represent approximately 23.8 percent of the enlarged share capital of the company. In conjunction with the deal, Mr. Julian Juul Wolhardt has been appointed as a non-executive independent director. Wolhardt is a Member of KKR and focused on private equity transactions in the Greater China region. Mr. Wolhardt is a Certified Public Accountant and Certified Management Accountant, with a bachelor’s degree in accounting from the University of Illinois at Urbana-Champaign. China Cord Blood Corp. is an umbilical cord blood banking operator in China.

TutorGroup Raises U.S. $15 million from Qiming Ventures
Shanghai-based TutorGroup (parent company of VIPABC.com and TutorABC.com) has raised U.S. $15 million in growth financing from Qiming Venture Partners. Founded in 2004, TutorGroup is an online language institute specializing in English training in Asia and Mandarin Chinese training for global business professionals. The investment will be used for expansion throughout China.

Medical Care Technologies Secures $10 Million Flexible Debt
Beijing-based Medical Care Technologies (OTC BB: MDCE) has received Reserve Equity Financing of U.S. $10 million to be used over a four year period from with AGS Capital Group’s Reserve Equity Financing (REF). The unique form of financing allows MDCE to access capital without diluting the value of the stock held by current shareholders. According to material provided by AGS, MDCE has the right, but not the obligation, to raise equity in tranches over a four year period of time. The company may negotiate a floor below which stock cannot be sold, providing a safety net during a downturn. The investor is obligated to buy shares under the agreement regardless of economic environment and MDCE can cancel the REF at any time without additional cost. The flexibility allows MDCE to raise funds in incremental amounts and to increase a company’s shareholder base in a controlled and measured way. The REF was created by Allen Silberstein, founder and chief executive officer of AGS spun out of Visium Asset Management, a three billion dollar private investment fund. AGS has offices in New York, Hong Kong, and India.

MDCE operates a network of children’s health facilities in the larger urban areas throughout China. Services are geared towards the advancing economic middle-class and upper class Chinese families, specializing in the care of children between the ages of 3 to 16. The funds, which can be tapped as the company needs it, will be used for expansion. AGS Capital Group provides flexible equity financing solutions for growth-stage and mid-cap public companies as well as private companies looking to go public.

Feihe Makes Payment to Sequoia Capital in Tranche Redemption
Beijing-based Feihe International Inc. (NYSE: ADY) has paid $16.4 million to Sequoia Capital China Growth Fund I, L.P. and certain of its affiliates in redemption of the final tranche of 656,250 shares pursuant to its redemption agreement with Sequoia. Feihe International, Inc. producers and distributors of premium infant formula, milk powder, soybean, rice, and walnut products in the People’s Republic of China.

China Nepstar Chain Drugstore Announces Special Dividend
Shenzhen-based China Nepstar China Drugstore Ltd. (NYSE: NPD) announced that it has declared a special dividend of U.S. $0.60 per American Depositary Share (ADS), which represents total distribution to shareholders of approximately U.S. $60 million. The special dividend is payable before or around June 7th, 2012 to shareholders of record as of the close of market on May 7, 2012. China Nepstar Chain Drugstore Ltd. (NYSE: NPD) operates a retail drugstore chain. It has 2,395 stores across 74 cities, one headquarter distribution center and 16 regional distribution centers in China.

PEOPLE

CFO of China Biologic Resigns, Company Appoints Interim CFO & Directors
Beijing-based China Biologic Products Inc. (Nasdaq: CBPO) announced the resignation of Chief Financial Officer, Mr. Y. Tristan Kuo, effective May 31, 2012. Kuo will continue to serve as an independent consultant to the company for 12 months. Mr. Ming Yang, the company’s vice president of finance & compliance and treasurer, will serve as interim chief financial officer. In an effort to improve its corporate governance, the company has also appointed two new independent directors to its board, Mr. Zhijun Tong and Ms. Sandy (Han) Zhang.

About Yang: Yang joined the company in March 2012 and has been serving as the company’s vice president of finance and compliance and treasurer in charge of financial management, internal controls, legal and compliance matters, and the implementation of corporate governance rules and policies, and related decisions of the board. He was an audit senior manager at KPMG.
About Tong: Tong has served as the chairman of the board of directors of several companies, including Spain Qifa Corp. Ltd. and Hong Kong Tong’s Group. From 2007 to 2011, Tong served as the president and director of BMP Sunstone Corp., a NASDAQ-listed pharmaceutical corporation. He is 52 years old.
About Zhang: Zhang has served as a consultant at Resources Global Professionals Consulting,Shanghai, since 2006. Zhang also has worked as an associate and senior auditor at Deloitte & Touche Corporate Finance Pte Ltd., Singapore, and as a financial manager at Hypac, a division of Terex Corp. She is 39 years old.

SkyPeople Appoints New CFO
Xi’an-based SkyPeople Fruit Juice Inc. (Nasdaq: SPU) has appointed Mr. Xin Ma as the company’s new chief financial officer, effective April 20, 2012. Ma replaces Ms. Cunxia Xie, who resigned from the chief financial officer position for personal reasons. Ma, 35, joined SkyPeople in December 2011 and had previously served as the company’s vice president, responsible for the financial and accounting management of the company. From March 2011 to December 2011, Ma served as the chief financial officer of Universal Solar Technology, Inc., a U.S. reporting company based in China. From January 2006 to March 2011, Ma served as the vice president of Kiwa Bio-Tech Products Group Corporation, a U.S. reporting company based in China. Ma received a MSc. in Management in 2005 and a MSc. in Finance in 2006 from the University of Leicester in England. There is no family relationship between Ma and any of the company’s directors and officers.

ReneSola Announces CSO Departure
Jiashan-based ReneSola Ltd. (NYSE: SOL) announced its chief strategy officer, Mr. Xiaoshu (Charles) Bai, departed from the company at the end of his contract, effective May 1, 2012. Bai served as CFO beginning May 2006, including when the company went public in January of 2008, from which it raised $700 million. Prior to that, Bai worked for over 16 years with investment banks and multinational companies. From 2003 to 2005, he worked as the chief financial officer of Fenet Software. From 2001 to 2002, he worked as a vice president of Tractebel Asia Co., Ltd., an energy company based in Thailand. From 1997 to 2001, he worked as a finance director of Ogden Energy Asia Pacific Co., Ltd., an energy company based in Hong Kong. At Tractebel and Ogden. He was an associate director of Deutsche Bank in Hong Kong from 1995 to 1997 specializing in project and export finance. Mr. Bai received his bachelor’s degree in economics from China Southwestern University of Finance and Economics in 1983 and his MBA degree from IMD in Switzerland in 1989.

Renren Inc. Appoints Heavy Weight As Independent Director
Beijing-based social networking platform, Renren Inc. (NYSE: RENN), has appointed Stephen Murphy as independent director and member of the Audit Committee and Corporate Governance and Nominating Committee. As a result of this new appointment, Renren’s seven-member Board of Directors is comprised of a majority of independent directors. In addition, the Audit Committee, the Compensation Committee and the Corporate Governance and Nominating Committee of Renren’s board are each entirely comprised of independent directors.

About Murphy: Murphy previously served as the Chief Executive Officer of Virgin Group Holdings Ltd., the holding company for Virgin’s worldwide interests, for six years after having succeeded the founder Sir Richard Branson in 2005. He continues to act as a Special Advisor to the Board of Directors of Virgin. During his 17-year-tenure at Virgin Group, he served as Chairman and executive director of various subsidiaries as well as other senior positions, including six years as Group Finance Director. He also continues to serve as Chairman of the Board and member of the Audit Committee for Virgin Atlantic Ltd. In addition, he is also a non-executive director of the Business Growth Fund in the UK and a partner at Ashcombe Advisers, a corporate finance advisory business. Mr. Murphy received a BA Hons degree from Liverpool John Moores University and is a member of the UK Institute of Certified Management Accountants.
NQ Mobile Appoints Directors; Reconfigures Board

Beijing-based NQ Mobile Inc. (NYSE: NQ), formerly NetQin Mobile Inc., has appointed three executives to its board, Mr. Omar Khan, Mr. William Li and Mr. Xiuming Tao. Mr. Weiguo Zhao will be retiring from the board. The company also announced changes in the composition of the audit committee and compensation committee of its board of directors. Effective as of May 3, 2012, Mr. William Li will serve as a member of the audit committee, replacing Mr. Xu Zhou, who will remain on the board, and Mr. Xiuming Tao will serve as a member of the compensation committee, replacing Mr. Weiguo Zhao, who retired as a director.

About Khan: Mr. Omar Khan has served as co-chief executive officer of NQ Mobile since January 2012 and directs NQ Mobile globally alongside chairman and co-chief executive officer Dr. Henry Lin. In addition, Khan focuses on the global expansion of NQ Mobile into markets such as North America, Latin America, Europe, Japan, Korea and India.

About Li: Li has served as the general manager of Beijing Zhongchuang Telecom Test Co. Ltd., a company listed on Shanghai Stock Exchange, since 2001. Prior to joining Beijing Zhongchuang, he worked for World Capital Market (US) Investment Co., Ltd., during which he set up the Beijing representative office and served as the chief representative. Prior to that he worked at Jardine Fleming Securities Ltd. He holds a bachelor’s degree in engineering from Changchun University of Technology in China, a master’s degree in economics from Renmin University of China, and an MBA degree from the University of Edinburgh.

About Tao: Tao is a founding partner of JunZeJun Law Offices, where he has worked since 1995. Prior to that, Mr. Tao worked for the International Law Department of the Institute of Law of Chinese Academy of Social Sciences from 1992 to 1994 and worked at Tian Ping Law Office from 1989 to 1992. He holds a bachelor’s degree in law from the Law School of Jilin University, a master’s degree in law from the Graduate School of Chinese Academy of Social Sciences. In addition, Mr. Tao received a Ph.D degree from the Law School of University of International Business and Economics in China in 2007.

Jiayuan.com Appoints Independent Directors

Beijing-based Jiayuan.com International Ltd. (Nasdaq: DATE) announced that it had appointed two independent directors, Mr. Xiaochuan Wang and Mr. Paul Keung, Wang will also serve as a member of the audit committee and compensation committee, while Keung will serve as the chair of the Audit Committee and a member of the nominating and corporate governance Committee. The company also announced that Prof. Zhiwu Chen will resign from his position as independent director of Jiayuan, effective May 1, 2012.About Wang: Wang has been the chief executive officer of Sogou.com, a business unit of Nasdaq-listed Sohu.com Inc., since August 2010. Wang also currently serves as chief technology officer at Sohu. Prior to joining Sohu, Wang worked at ChinaRen, which was acquired by Sohu.com. He holds a bachelor’s degree in computer science and a master’s degree in engineering from Tsinghua University.

About Keung: has served as chief financial officer and senior vice president of business development at NYSE-listed Taomee Holdings Ltd.since February 2011. Prior to joining Taomee, Keung was managing director at Oppenheimer Investments Asia from 2008 to 2009, where he oversaw the firm’s Asia research practice. He has also served as the executive director of CIBC World Markets, where he was primarily responsible for coverage of the Internet and media sectors in the U.S. and China. Prior to that he served as chief information officer at Wyndham International, a global hospitality company. Between 1994 and 1998, he held various roles in investment banking and equity research at Deutsche Morgan Grenfell, PaineWebber Securities, and Salomon Brothers. Keung currently serves as an Independent director of Sustainable Forest Holdings Ltd., a forest management company listed on the Hong Kong Stock Exchange. He holds a bachelor’s degree in hotel administration from Cornell University and a master’s degree in real estate from New York University.

SEC Revokes Registration of China Convergent, China Ventures and Chinatek On March 30, 2012, the SEC announced it had revoked the registration of China Convergent Corp. (CVN), China Ventures Ltd. and Chinatek due to the companies’ failure to file timely periodic reports.

MARKET MOVES

Universal Travel Group Announces Its Intent to Voluntarily . . . → Read More: Newsbriefs, April 23, 2012]]> SEC NEWS

SEC Revokes Registration of China Convergent, China Ventures and Chinatek
On March 30, 2012, the SEC announced it had revoked the registration of China Convergent Corp. (CVN), China Ventures Ltd. and Chinatek due to the companies’ failure to file timely periodic reports.

MARKET MOVES

Universal Travel Group Announces Its Intent to Voluntarily Delist Its Common Stock From NYSE and to Continue to Comply With the Securities Exchange Act of 1934

On April 16, 2012, Shenzhen-based Universal Travel Group (NYSE: UTA) announced its intent to voluntarily delist its common stock from the New York Stock Exchange, on or about April 26. The company is voluntarily withdrawing its common stock from listing on the Exchange based on certain correspondence from the Exchange to which the company cannot respond in full within the time frame that the Exchange has demanded. The Exchange has indicated that the company faces the prospect of delisting due to the Exchange’s concerns relating to the issues raised by Windes & McGlaughry Accountancy Corp. when it resigned as the company’s independent public accounting firm in April 2011. It will continue to comply with the Securities Exchange Act of 1934.

Sino-Forest Common Shares to be Delisted from Toronto Stock Exchange

Sino-Forest Corp. (TSX: TRE) announced on April 5, 2012, its shares will be delisted from the Toronto Stock Exchange effective May 9, 2012. The delisting was imposed due to Sino-Forest’s failure to meet the continued listing requirements of the TSX as a result of the commencement of proceedings under the Companies’ Creditors Arrangement Act on March 30, 2012, and for failure to file on a timely basis its interim financial statements for the three and nine months ended Sept. 30, 2011, and its audited annual financial statements for the year ended Dec. 31, 2011. Sino-Forest continues to be subject to a cease trade order of the Ontario Securities Commission which prohibits trading in the company’s securities.

All inquiries regarding the CCAA Proceedings should be directed to the Monitor, FTI Consulting Canada Inc. via email at: sfc@fticonsulting.com, or telephone: (416) 649-8094. Information about the CCAA Proceedings, including copies of all court orders and the Monitor’s reports, are available at the Monitor’s website http://cfcanada.fticonsulting.com/sfc.

The company also announced the resignation of its auditor, Ernst & Young LLP effective April 4. 2012. In its resignation letter to the company, E&Y noted that the company had not prepared Dec. 31, 2011, consolidated financial statements for audit and that, in the company’s March 30, 2012 filing under the Companies’ Creditors Arrangement Act, Sino-Forest said that it remained unable to satisfactorily address outstanding issues in relation to its 2011 annual financial statements.

China Medical Technologies Delisted From Nasdaq
Nasdaq announced on March 14, 2012, it would delist China Medical Technologies, Inc. China Medical Technologies, Inc.’s stock was suspended on Feb. 28, 2012, and has not traded on Nasdaq since that time.

Recon Regains Compliance With Nasdaq
Recon Technology Ltd. (Nasdaq: RCON) has regained compliance with all of Nasdaq’s listing rules. The company had fallen below the $1.00 minimum listing price. CEO Shenping Yin indicated that the company has retained consultants to help it improve its internal controls. Recon Technology, Ltd. is a non-state-owned oil field service company in China. The company has been providing software, equipment and services to increase the efficiency and automation in oil and gas exploration, extraction, production and refinery for Chinese oil and gas fields.

NEP Receives Delisting Notice
Harbin-based China North East Petroleum Holdings Ltd. (NYSE Amex: NEP) received a letter on April 4, 2012, from the NYSE, alleging the company no longer complies with NYSE’s continued listing standards and, therefore, was subject to delisting from NYSE. The company’s stock has been halted since Feb. 29, 2012. The NYSE allegations primarily relate to issues concerning documentation and disclosures for transactions between the company and related parties, including those identified in the John Lees & Associates report to the company, dated July 2010, and the failure of the company to file its Form 10-K for 2011 on time. The company has appealed the decision. Its last trading price was $3.11. Its 52-week-high was $4.55; its low was $1.85.

Winner Medical Announces Receipt of Non-Binding Going Private Proposal
Shenzhen-based Winner Medical Group Inc. (Nasdaq: WWIN) announced it had received a preliminary, non-binding proposal from its chairman and chief executive officer, Mr. Jianquan Li. Li proposes to acquire all of the outstanding shares of the company’s common stock not currently owned by him and his wife, Ms. Ping Tse, at a proposed price of $4.30 per share in cash as part of a going private transaction. Mr. and Mrs. Li currently beneficially own approximately 73.95 percent of the company’s common stock. The board has formed a special committee to consider the offer and other alternatives. The company develops and manufacturers a series of gauze products for medical use such as surgical and wound dressings, eyepads, face masks, sponges. In 2007 it launched a line of products made from pure cotton under its “PurCotton” trademark. The company launched in 1991, listed on the OTC in 2005, moved to Amex in 2009, and debuted on the Nasdaq in March 2010. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel for the Li family. The stock closed on April 5, 2012, at $3.79. Its 52-week-high was $5.30. Its low was $2.53. [Of note, Skadden is also representing Zhongpin Chairman and Chief Executive Officer, Mr. Xianfu Zhu, in his going private offer announced last week on March 27, 2012.]

For a 2010 mini-profile of Winner Medical, visit: http://chinabusinessknowledge.com/industry/newsbriefs-june-11-2010.

Century 21 China Real Estate Changes Ratio of its ADS

IFM Investments Ltd. (NYSE: CTC) (Century 21 China Real Estate) changed its ratio of American Depositary shares to Class A ordinary shares from 1:15 to 1:45, effective April 16, 2012. Pursuant to the Ratio Change, the record holders of the company’s ADS as of the effective date will be entitled to receive one (1) new ADS, each representing forty-five (45) Shares, in exchange for every three (3) ADSs held by them. No new Shares will be issued in connection with the Ratio Change. JPMorgan Chase Bank, N.A. will contact ADS holders and arrange for the exchange of their current ADSs for new ADSs. As a result of this Ratio Change, the ADS price is expected to automatically increase proportionally.

Biostar Pharmaceuticals Effects Reverse Stock Split
The board of Xianyang-based Biostar Pharmaceuticals Inc. (Nasdaq GM: BSPM) has approved a stock reverse split of its common stock at a ratio of 1-for-3, with anticipated trading on the post-split basis on Nasdaq which commenced at the open of the stock market on April 4, 2012. Accordingly, as of the effective date of the reverse split, each 3 shares of issued and outstanding common stock and equivalents was converted into 1 share of common stock. As a result of the reverse stock split, the number of outstanding common shares will be reduced to approximately 9,398,892.

AutoChina International Cancels Three-for-Two Stock Split
FINRA’s Department of Operations has denied Shijiazhuang-based AutoChina International Ltd.’s (OTC: AUTCF) request to process the three-for-two stock split in the form of a stock dividend, which was previously announced on Jan. 27, 2012. As a result, AutoChina has determined not to proceed with the stock split. As of April 2, 2012, AutoChina had 23,538,919 million shares outstanding. FINRA’s denial and the company’s determination to cancel the stock split did not impact the previously announced one-time special cash dividend in the amount of $0.25 per share, which was paid on Feb. 15, 2012, to holders of record as of Feb. 8, 2012. The company was formerly listed on the Nasdaq under the ticker “AUTC,” where it was, for a while, a well-respected company. At one point, it traded near $40 per share. It was delisted in early Oct. 2011, after losing its credibility in regard to its accounting procedures. The company started to trade on the OTC BB on Feb. 28, 2012.

THT Heat Transfer Comments on Unusual Market Activity
Siping-based THT Heat Transfer Technology Inc. (Nasdaq: THTI) suffered unusual market activity in its stock on Wed., April 4, 2012. Its stock climbed over $1.00, from approximately $1.30 per share to approximately $2.30. Nasdaq contacted the company in accordance with its usual practice. The company distributed a press release on April 5, 2012, stating it was not aware of any material corporate developments that could account for the unusual trading activity. THT Heat Transfer Technology, Inc. designs, manufactures and sells plate heat exchangers, shell-and-tube heat exchangers, heat exchanger units and other heat exchanger products with total heat exchange solutions. Its stock is currently trading at approximately $1.60.

PEOPLE

China Biologic’s Board Elects Gao as the New Chairman and Adopts Measure to Enhance Its Governance
China Biologic Products Inc. (Nasdaq: CBPO) has elected David (Xiaoying) Gao Chairman of its board. Of note, in late March he was appointed to the board of the beleaguered ChinaCast Education Corp. (Nasdaq: CAST). Gao succeeds Ms. Siu Ling Chan, who served for more than five years as China Biologic’s Chairwoman. She will remain on the board. Gao was appointed as a Director of China Biologic on Oct. 2, 2011 and was also appointed as a member of the Audit Committee, the Compensation Committee, and the Governance and Nominating Committee, and as the Chairman of the Compensation Committee. As Chairman, Gao will continue to serve on those committees and to chair the Compensation Committee. He served as the chief executive officer and a director of BMP Sunstone, which was a Nasdaq listed company prior to the acquisition by Sanofi in 2011. He served as chairman of the board of directors and CEO of Abacus Investments Ltd, a private wealth management company. He has also served in management positions at Motorola, Inc. He holds a B.S. in mechanical engineering from the Beijing Institute of Technology, an M.S. in mechanical engineering from Hanover University in Germany and an M.B.A. from the Massachusetts Institute of Technology.

Also on March 30, 2012, the Board of Directors appointed Mr. Ming Yang as the Vice President-Finance & Compliance and Treasurer to be in charge of financial management, internal controls, legal and compliance matters, and the implementation of corporate governance rules and policies and related decisions of the board. Yang has six years of financial management experience in corporations and eleven years of audit experience in accounting firms. He has experience in dealing with China’s tax regulations, People’s Republic of China GAAP, IFRS, and internal control matters. He was an audit senior manager at KPMG, where he provided audit services for initial public offerings, rights issues, and merger and acquisition transactions. He also worked on the annual reports of various public companies listed in Hong Kong and mainland China. His clients were Angang Steel, China Shenhua Energy, BOE Technology, and BHP Billiton. Before joining the accounting firms, Mr. Yang worked as an accounting and finance manager for several Chinese companies.

APRIL 23, 2012 VOL. 3, ISSUE 19 Dear Friends: I’ve been a bit M.I.A. due to holiday and family travel. But the news did not take a holiday. So watch for multiple news-oriented mailings from CBK this week as we catch up. And please forgive us if our newsbriefs are . . . → Read More: PUBLISHER’S NOTES, April 23, 2012]]> WEEK IN REVIEW

APRIL 23, 2012 VOL. 3, ISSUE 19
Dear Friends: I’ve been a bit M.I.A. due to holiday and family travel. But the news did not take a holiday. So watch for multiple news-oriented mailings from CBK this week as we catch up. And please forgive us if our newsbriefs are a bit dated.

Universal Travel’s voluntarily delisting and ChinaCast’s stock halted and continued infighting top this issue’s news. ChinaCast’s situation seems too convoluted to unwind as an outsider looking in. In turn, it is a sad time in the sector when a company decides to voluntarily delist, as Universal Travel has, leaving the investor who have supported them over the years, or more recently as their stock priced tanked, no recourse to salvage any of their investments. It makes the companies proceeding with “going private” offers look downright noble.

Universal Travel was one of the first companies brought to my attention when I first worked in the sector in 2008. It seemed like a promising company. It was often talked about in the sector of small U.S. investors trading Chinese stocks. When the stock first began its decline one individual investor in New York shared with me he thought it was a good time to buy. He continued to support the company, even when they did not make their filings. He watched as the stock drop while the Chinese government formerly honored the company, which is a sign to him that the Chinese government is not going to crack-down on delinquent companies trading on the U.S. markets. If the “brave” and “long-on-China” investors are not going to invest in Chinese companies trading on the U.S. stock markets, it begs the question who is?

See more below on UTA and CAST.

Please watch your inbox this week for more news from CBK.

Best,

Janet Stites
Publisher & Editor
China Business Knowledge
jstites @ chinabusinessknowledge.com

In turn, Ron Chan, ex-Chairman and CEO, resigned from the board on April 2, 2012, . . . → Read More: SPECIAL REPORT: ChinaCast Situation Becomes Toxic, Receives Letter of Non-compliance from Nasdaq; Trading Halted on March 30]]> Nasdaq sent Beijing-based ChinaCast Education a letter of non-compliance because it had not filed its Annual Report for the fiscal year ended Dec. 31, 2011, and subsequently halted its trading on March 30, at a price of $4.24.

In turn, Ron Chan, ex-Chairman and CEO, resigned from the board on April 2, 2012, and issued a letter to the shareholders, reprinted, in full, below:

I have resigned from the Board of ChinaCast Education Corp. today. I have come to this decision because of serious disagreements that I have with the group of directors who recently has come to control the Board and the Company.

After the election of Ned Sherwood’s slate of directors at the annual meeting in January of this year, Mr. Sherwood, and persons acting in concert with him, which I believe to include Daniel Tseung, Derek Fang, funds managed by Fir Tree Partners, and other shareholders, acting in concert and in furtherance of a pre-existing plan, sought to and did take control of the Company. They then acted to promote their own interests at the expense of the Company and its other shareholders.

For example, Mr. Sherwood’s group pushed the Company for a settlement of $2.3 million with Ned Sherwood on his bogus claims against the management and the Company. When Michael Santos and I strongly objected to this settlement, we were essentially pushed out of the Company, notwithstanding our years of loyal and valuable service. Although I remained on the Board, important decisions were made without any prior communication with me or with the senior management. Without any proper authorization, Mr. Sherwood, purporting to represent the Board, instructed PRC management to take instruction directly from the Board (i.e. from Mr. Sherwood) and not from the executives (i.e. me). Without proper authorization, Derek Feng announced the removal of Mr. XY Jiang as President, China. Mr. Jiang has been with the Company for 11 years and has been a trusted employee and a partner holding 40% of the VIE company, CCLX. I have been told that new Company management has been threatening Company employees and creating a hostile and terrifying atmosphere, rendering the Company largely dysfunctional.

In addition, I have personally been threatened by Mr. Sherwood’s group with threats of bogus lawsuits, claiming that I have stolen Company property, have sabotaged efforts to complete the Company’s filings in a timely manner, and have engaged in insider trading.

Not only are all of these allegations untrue, those who make them know they are untrue and they are doing so, I believe, to distract attention from their own conduct that is severely hurting the Company. I have retained no Company property; I have done nothing to interfere with the filings; I have always acted in the best interests of the Company and will continue to do so; I have not sold a share of stock of the Company; and I have revealed no non-public information about the Company to anyone. These heavy handed tactics, based on nothing but falsehoods and apparent desires to promote self-interests, however, seem, unfortunately, to be the way the new Board conducts its business.

This is not the Company that I worked hard to create and grow. I fear that the direction the Sherwood-led Board is going in will ruin the Company. Simply put, the current Board and the new executives do not have the experience to run the business. For those reasons, I am resigning from the Board.

Sincerely,

Ron Chan

SEC NEWS The SEC Revokes Registration of “Ghost” Stock, China Yingxia (CYXI) On March 7, 2012, the SEC revoked the . . . → Read More: Newsbriefs, March 30, 2012]]> CBK publishes news for subscribers of its “Week in Review” email newsletter prior to publishing to our web site. Sign up for our free newsletter in the top right hand corner of our site.

SEC NEWS

The SEC Revokes Registration of “Ghost” Stock, China Yingxia (CYXI)
On March 7, 2012, the SEC revoked the registration of China Yingxia International Inc. (CYXI) reporting it had failed to comply with Section 13(a) of the Exchange Act and Exchange Act Rules 13a-1 and 13a-13 by failing to file required periodic reports with the Securities and Exchange Commission. The nutraceutical company was founded by a former nurse, Ms. Yingxia Jiao. It completed a reverse merger in May 2006 and began to trade on the OTC BB under the ticker “CYXI”. In Dec. 2010, Yingxia Jiao, along with other company executives, was convicted of fraud. Yingxia was sentenced to death.

The SEC instituted administrative proceedings against CYXI in Feb. of this year. For a summary from the SEC doc: (http://www.sec.gov/litigation/admin/2012/34-66304.pdf).

“China Yingxia International, Inc. (“CYXI”) 1 (CIK No. 1113546) is a dissolved Florida corporation located in Harbin, Heilongjiang, China with a class of securities registered with the Commission pursuant to Section 12(g) of the Exchange Act. CYXI is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10-Q on November 14, 2008 for the period ended September 30, 2008. As of January 31, 2012, the common stock of CYXI was quoted on OTC Link (formerly “Pink Sheets”) operated by OTC Markets Group Inc., had eight market makers, and was eligible for the “piggyback” exception of Exchange Act Rule 15c2-11(f)(3).”

The last press release the company published seems to be from 2009, with CEO Jiao acknowledging she was in disputes with investors in China regarding payments on loans they provided to the company. The release states that the disputes had adversely affected the normal operations of Harbin Yingxia (http://www.prnewswire.com/news-releases/china-yingxia-international-incs-chairwoman-and-ceo-is-in-talks-with-investors-in-china-61767547.html).

The company sold nutritional foods, which include soybean products, millet products and rice products and produces dietary supplements, which include herbal-based pills and capsules; and raw cactus plants.
__________________________________________________________

SEC Teams with Cayman Island and European Security Authorities to Beef-up Oversight of Companies Operating Across Borders

Earlier this week, the SEC announced it has established comprehensive arrangements with the Cayman Islands Monetary Authority (CIMA) and the European Securities and Markets Authority (ESMA) as part of a long-term strategy to improve the oversight of regulated entities that operate across national borders.

“Supervisory cooperation arrangements help the SEC build closer relationships with its counterparts to cooperate and consult on each other’s oversight activities in ways that may help prevent fraud in the long term or lessen the chances of future financial crises,” said Ethiopis Tafara, Director of the SEC’s Office of International Affairs (from the SEC Digest).

Per the SEC, the two “memoranda of understanding (MOUs), come on the heels of similar arrangements with the Quebec Autorité des marchés financiers and the Ontario Securities Commission in 2010 and expanded to include the Alberta Securities Commission and the British Columbia Securities Commission last September.

___________________________________________________

NEWSBRIEFS

MARKET MOVES

Jingwei International Ltd. Completes Going Private Transaction
Shenzhen-based Jingwei International Ltd. (Nasdaq: JNGW) announced the completion of its “going private” transaction on March 30, 2012. The company began trading on the Nasdaq on May 20, 2012. Prior to that it traded on the OTC BB.

Following suspension of trading in Jingwei’s common stock on the Nasdaq, the company effected a 1 for 20,000 reverse stock split, with the result that all shareholders owning less than 20,000 shares as of 7:00 a.m. (EDT) on March 30, 2012 will receive a cash payment of $2.20 per shares from a fund established by Jingwei with the exchange agent for the transaction. Immediately following the reverse stock split, the company effected a 20,000 for 1 forward stock split, with the result that all shareholders owning more than 20,000 shares as of 7:01am (EDT) on March 30, 2012 will continue to hold the same number of shares as they did prior to both stock splits.

Following the filing of its Annual Report on Form 10-K for the year ended Dec, 31, 2011, the company plans to file a Form 15 to suspend its duty to file reports under Section 15(d) of the Securities Exchange Act of 1934. It will be eligible to suspend such duty because it has fewer than 300 record holders following the reverse stock split. Upon filing of the Form 15, the company’s obligation to file certain reports with the SEC, including Forms 10-K, 10-Q and 8-K, will immediately be suspended.

The company announced the “going private” offer from Chairman and CEO, George (Jianguo) Du, Chairman, in early January of this year. The following week it announced the resignation of its CFO, Mr. Yong Xu. It announced a $2.0 share repurchase program in June of 2011. In May of 2011, western-educated and seasoned executive, CEO Rick Luk, resigned. He was replaced by Chairman Du (Oddly, CBK could find no record of an announcement about Luk’s resignation among the company’s press releases on its website). Jingwei International is a provider of data mining, interactive marketing and software services in China.

Zhongpin Receives Going Private Proposal from Chairman
The board of directors of Changge and Beijing-based Zhongpin Inc. (Nasdaq: HOGS) have received a going private proposal from company Chairman and CEO, Mr. Xianfu Zhu. Zhu intends to acquire all of the outstanding shares of the company’s common stock not currently owned by him in a going private transaction at a proposed price of $13.50 per share in cash. Zhu currently beneficially owns approximately 17.5 percent of the company’s common stock. The board intends to form a special committee of independent directors to consider this proposal.

China Shen Zhou Raises $5 Million
Beijing-based China Shen Zhou Mining & Resources Inc. (NYSE Amex: SHZ) has completed the initial closing of its Series A Convertible Preferred Stock, with gross proceeds of $5.0 million. At the initial closing, the company issued 5,000 shares of Series A Convertible Preferred Stock and warrants to purchase 1,960,785 shares of common stock of the company. The company also issued a warrant to purchase 392,157 shares of common stock of the company to the placement agent. China Shen Zhou Mining & Resources, Inc., is engaged in the exploration, development, mining, and processing of fluorite, barite and nonferrous metals such as zinc, lead and copper in China.

Sino Payments and Tap to Merge
Sino Payments (OTCQB: SNPY), a U.S. public company with offices in Hong Kong., is in the process of merging with TAP. Sino Payments focuses on providing IP credit and debit card processing services to large retail chains, including supermarket chains and large regional multinational retailers, in China and throughout Asia. Based in Hong Kong, TAP provides Point-of-Sales/Point-of-Interaction (POS/POI) and retail CRM solutions. The merger is expected to close this spring.

General Steel Announces Share Repurchase Program
Beijing-based General Steel Holdings Inc. (NYSE: GSI) has announced a share repurchase program. Under the terms of the newly authorized repurchase program, General Steel may repurchase up to an aggregate of 2,000,000 shares of the company’s common stock. The repurchases may be made from time to time in the open market or in privately negotiated transactions in accordance with applicable federal securities laws. The program does not have an expiration date. The timing of the repurchases and the exact number of shares of common stock to be purchased will be determined by the management of the company, in their discretion, and will depend upon market conditions and other factors. General Steel plans to fund repurchases made under this program from its available cash balance. General Steel Holdings produces steel products and aggregators of domestic steel companies.

Wowjoint Announces Commencement of Exchange Offer for Outstanding Warrants
Beijing-based Wowjoint Holdings Ltd. (Nasdaq: BWOW) has commenced an exchange offer for 7,700,642 outstanding warrants. In connection with the offer, the company will exchange one ordinary share for every 15.9 Warrants tendered. The offer will be open for at least twenty business days starting on March 22, 2012, and is scheduled to expire on April 19, 2012, at 5:00 p.m. EST. The terms and conditions of the offer are set forth in the documentation to be distributed to holders of the warrants. To participate in the offer, holders must tender their warrants in accordance with the instructions included in the offer materials, no later than 5:00 p.m. EST on April 18, 2012.

China Sunergy Signs Deal with Dupont
Nanjing-based China Sunergy Co. Ltd. (Nasdaq: CSUN) in conjunction with China Electric Equipment Group has signed a Letter of Intent with DuPont China Holdings for strategic collaboration relating to photovoltaic (solar) technologies & materials, power transformer, insulation and aircraft composite materials over a three-year period.

ChinaCast Makes Major Management Changes
Beijing-based ChinaCast Education Corp. (Nasdaq: CAST) has made a number of changes to is executive team and board:

The board has initiated a search for permanent CEO and CFO.

BIOS:

Derek Feng: Feng has served on the company’s board of directors since Jan. 2012. At the time of his appointment, he was a private investor and an advisor to education companies. From 2006 to 2011, he was the Executive Vice President, Strategy, Planning and Operations at Knowledge Universe. Prior to joining Knowledge Universe, he held several executive positions at General Electric. He graduated from Tsinghua University in China in 1989 with a B.S. in Industrial Automation and earned an M.B.A. from UCLA in 1992.

Doug Woodrum: Woodrum, now a private investor, is somewhat of a historical heavy-weight in finance, having served as the CFO for the well-respected early “dot com” company CNET Network, Inc. from 1998 to 2005. The company, which was early to the dot com party, was founded in 1992. When it went public in 1996, it was dubbed the first Internet “content provider” to do so. In fact, its founders Halsey Minor and Shelby Bonnie, were considered some of the earliest dot com “millionaires.” (Shelby later resigned after allegations of having received backdated stock options). The company was able to weather the dot com bust. It was plagued by shareholder lawsuits and threats of hostile takeovers, but ultimately was sold to CBS for $1.8 billion, which is a huge accomplishment for that era (Woodrum left for other opportunities in 2005). From 2006 to 2009, Woodrum served as a research analyst for Jayhawk Capital Management, a private equity firm focused on investing in small and medium-sized businesses operating in China. Woodrum has served on ChinaCast’s board since Jan. 2012. He received his B.B.A. in finance and accounting from the University of Iowa.

David Xiaoying Gao: Gao currently serves as an independent director for China Nuokang Bio-Pharmaceutical Inc. and China Biologic Products Inc. He served as the chief executive officer and a director of BMP Sunstone, which was a Nasdaq listed company prior to the acquisition by Sanofi in 2011. He served as chairman of the board of directors and CEO of Abacus Investments Ltd, a private wealth management company. He has also served in management positions at Motorola, Inc. He holds a B.S. in mechanical engineering from the Beijing Institute of Technology, an M.S. in mechanical engineering from Hanover University in Germany and an M.B.A. from the Massachusetts Institute of Technology.

7 Days Group CEO to Hand Over Day-to-Day to COO

Guangzhou-based 7 Days Group Holdings Ltd. (NYSE: SVN) has made management changes as a part of a “strategic realignment” of its senior management team. The board has appointed CEO Mr. Alex Nanyan Zheng, CEO as Co-Chairman of the board. Mr. Zheng will remain as CEO until June 30, 2012, at which point he will be succeeded by Mr. Yuezhou Lin, 7 Days’ Chief Operating Officer (COO). The move is to allow Mr. Zheng to focus his attention on the development of the company’s new strategic initiatives while handing the day-to-day leadership of the company to Mr. Lin, including the launch of a new hotel subsidiary in the high-end brand segment, and the development of opportunities to further leverage the company’s industry leading e-Commerce platform and value-added member services. Mr. Lin joined 7 Days in 2004 as a Senior Vice President and Chief Information Officer (CIO) responsible for the company’s sales, IT and customer service teams. From 2006 to 2008, he served as the head of the construction department, and was responsible for overseeing development projects on a nationwide basis. During this period, Mr. Lin also held senior business development positions and led the development of the Company’s 7 Days Club, an integrated proprietary IT system, and e-Commerce platform. From 2010 to 2011, in addition to his roles as Senior Vice President and CIO, Lin oversaw the company’s legal department and later, the supply chain and asset management departments. Lin was promoted to COO in March, 2012.

ReneSolar Appoints President for China Division
Jiashan-based ReneSola Ltd. (NYSE: SOL) has appointed Mr. Xiaoliang Liang as president of the company’s China division, where he will head sales and systems development across China. It is a new position created to take advantage of the growing market in China for solar panels. Prior to joining ReneSola, Liang was the director of project development at AES China, where he led its wind power project development business and worked on hydro and thermal power project developments in China, from 2010 to 2011. From 2006 to 2010, he served as a business director at Gamesa Energy, where he led a team in developing more than 2 GW of wind farms in northern and eastern China. He also worked as an engineer at China International Water and Electric Corporation from 2003 to 2006. He holds a master’s degree from North China University of Water Resources and Electric Power and a bachelor’s degree from Tsinghua University.

Dear Friends: For those weary of short sellers disguising themselves as legitimate independent research firms, here is some good news:

Last week CBK reported that Fujian-based Exceed Company Ltd. (Nasdaq: EDS) had retained the law firm of Winston & Strawn LLP to issue . . . → Read More: Publisher’s Notes, March 30, 2012]]> (Originally published in CBK’s weekly email newsletter on March 30, 2012.)

Dear Friends: For those weary of short sellers disguising themselves as legitimate independent research firms, here is some good news:

Last week CBK reported that Fujian-based Exceed Company Ltd. (Nasdaq: EDS) had retained the law firm of Winston & Strawn LLP to issue a cease and desist letter to D.B. Research, based in Chesapeake, Virginia. This week CBK can report that the two parties have come to an agreement.

Michael Joseph Ritinski, principal of D.B. Research, has agreed to remove the two reports it published about Exceed from its website and to “undertake its best efforts” to remove the reports from third-party websites. D.B. Research has further agreed to relinquish any positions it has relative to Exceed and that it will not assist others in the future in taking short positions in the Company’s stock. As a condition of settlement, neither D.B. Research nor Mr. Ritinski admit to any liability or wrongdoing.

CBK could find no professional information about Ritinski via an Internet search, sans finding that name affiliated with some comments on a Google finance group, several of which were about Chinese RTOs. He is not listed on LinkedIn.

CBK did not publish the link to D.B. Research last week (which is not to be confused with that of Deutsche Bank’s “DB Research” division and website), because we choose to not fuel the fire, or be pawns for the work of short sellers. However, the only reports which were on what is a “blog” platform were the two on Exceed. Ritinski does not identify himself on the site at all. Now the site is devoid of any research at all. See for yourself: http://www.d-b-research.com.

Ritinski will have to make his fortune the old-fashioned way, either through really hard work or running out this afternoon to buy a few Mega Millions Lotto tickets–like the rest of us.

Cheers! Have a great weekend.

Janet Stites
Publisher & Editor
China Business Knowledge
jstites @ chinabusinessknowledge.com

A fiscally brave Chinese company called VIPShop Holding Ltd., debuted today on the New York Stock Exchange . . . → Read More: Publisher’s Notes, March 23, 2012]]> Dear Friends: Time is not on my side this week, so I am keeping my Publisher’s Notes brief. Of note, there is some historically good news today, with regard to the sector of China-based/U.S. listed companies.

A fiscally brave Chinese company called VIPShop Holding Ltd., debuted today on the New York Stock Exchange under the ticker symbol “VIPS”. The bad news is, its shares floundered, opening at $6.00, down from its IPO price of $6.50.

That said, as executives at YouKu.com can attest to, one’s opening day price is not a marker of things to come. Hype is not all it’s hyped up to be.

Have a great weekend.

Janet Stites

Publisher & Editor
China Business Knowledge
jstites @ chinabusinessknowledge.com