This alleged "news release" is fake and manufactured to look like an authentic release until you get to the last line. It's not real.
"FUJIAN, China, May 13, 2011 /PRNewswire-Asia/ [FAKE RELEASE]-- China MediaExpress Holdings, Inc. ("CME" or "Company"), China's largest television advertising operator on inter-city and airport express buses, today announced that the Audit Committee of the Board of Directors of the CME, with the assistance of law firm DLA Piper, has concluded that most of the concerns raised by Deloitte Touche Tohmatsu ("DTT") when it resigned as the Company's registered independent accounting firm on March 11, 2011 were without merit. The investigation has confirmed only one area of accounting irregularity, namely that a portion of the $213 million cash balance of the Company had been directly lent out to unrelated corporate clients of its main bank, the Industrial & Commercial Bank of China. A total of $53 million was lent out directly by CCME to 3 different corporate clients of the bank from November 11, 2010 to April 23, 2011. As of April 23rd, 2011, the Audit Committee has found that every such loan has been duly repaid, with interest. While this practice has become an accepted business practice amongst some Chinese companies, the Audit Committee has instructed DLA Piper to help design a strict system of controls and procedure to ensure this type of activity is not possible in the future. [Counterfeit press release] The Company has further hired a cash management specialist reporting to the CFO whose main responsibility will be to invest the company’s cash within the official banking network and according to strict cash management guidelines to be established by the board. The Audit Committee, with the assistance of DLA Piper and PricewaterhouseCoopers, has concluded that all other allegations and areas of concern raised by DTT are without merit. A thorough report with supporting third party proof and documentation will be posted on the company’s website and filed with the SEC today. [Satire]
Separately, the Company hired Ernst & Young Hua Min (“E&Y”) to audit its 2010 financial results on March 23rd 2011. E&Y has completed its audit of the Company’s 2011 financial results and its 10K will be filed with the SEC today. For the fiscal year ended December 31, 2010, the Company generated revenue of $217.6 million and net income of $108.2 million, a growth of 128% and 163%, respectively, over 2009. Gross margin for the year was 72.6%. The Company’s cash as of December 31, 2010 was $166 million excluding $47 million of third party loans outstanding at December 31, 2010, as discussed above.
Mr. Zheng Cheng, CCME's Chairman and Chief Executive Officer, noted, "CME is a thriving company with a profitable business model. The Company has been attacked by unscrupulous short sellers and I will continue to vigorously fight for the truth and for the interests of all of CME’s shareholders. I thank our loyal shareholders for their support and apologize for the turbulent months they have had to endure as a result of these short attacks.”
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended:
The Company's goals and strategies; and
Changes in general economic and business conditions in China; and
Chinese laws, regulation and policies, including those applicable to the advertising industry.
This document is entirely of an engineered nature and should be viewed for its satirical value and should not be relied upon for any investment decision, whether actual or theoretical. Its main objective was to examine alternative realities in regards to CME in an otherwise desolate intelligence environment.
CONTACT: Investor Relations Department of China MediaExpress, +852-2827-6082, ir@ccme.tv"
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I have reposted this with warnings so the satire may withstand censorship, while the post does not mislead anyone as to its authenticity or source.
The originally posted version that began "IS THIS TRUE?!??!" posted by someone else, (was misleading in its presentation and consequently was removed from the Board.
For anyone seeking discussion of the sum and substance of this satire/posted so-called release/ discussion of one possible scenario, see messages 30638 - 30664 (and any replies resulting from this message.
Finally, beware fake releases. Genuine releases go over the news wire. Fake releases may not have Bold warnings within.
-Andrew
In my capacity as Assistant Moderator
AI
