Replies to post #33501 on China MediaExpress Holdings, Inc. (fka CCME)

[rru2s]

JGBO is about to get delisted and has pulled the same type of noncooperative stunts. Interesting that JGBO and CCME shared a BOD member George Zhou:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=65494620&txt2find=JGBO

POSTED BY RAMES ON I-HUB CHINA GROWTH STOCKS:

"JGBO - some enjoyable reading for the weekend

I was doing some research and stumbled upon Michael Marks's 22-page account of the internal investigation that was opened by JGBO's audit committee. Even if you are just remotely interested in the happenings with U.S.-listed China stocks you should take the time and read the whole thing:

http://www.sec.gov/Archives/edgar/data/1091164/000114420411034429/v225152_ex99-4.htm

Read between the lines and you can learn a lot about "the Chinese way" and many of the issues raised in there are certainly not just limited to Jiangbo but a general problem when dealing with those overly powerful head honchos at Chinese companies.

Here is the snippet about JGBO I wrote today in a post about Chinese stock fatalities in the first half of the year:

The Securities and Exchange Commission subpoenaed the company on March 26 and Jiangbo's audit committee started an internal investigation of the issues raised by the SEC. Elsa Sung, Jiangbo's CFO, resigned on March 31. On June 6, the independent members of the Audit Committee jointly resigned, stating that JGBO's "chairman and members of his management team have exhibited repeatedly their unwillingness to cooperate in even the most basic requests," and - among other things - the investigation "raised serious concerns regarding the veracity or correctness of banking information provided by the company."

Michael Marks, former independent director and Chairman of JGBO's Audit Committee filed a very long (22 pages) and detailed account of the internal investigation with the SEC. If you are interested in the troubles of U.S.-listed Chinese companies, you should take the time to read the full letter. You will find real gems in there, such as the manager of Jiangbo's materials department refused to leave the employee wash room in order to avoid answering Ernst & Young's questions. Or that the law firm's fee was paid from a personal account of an individual who turned out to be Jiangbo's cashier - via internet banking - when Jiangbo previously told Ernst & Young that the company did not use and did not have access to internet banking.

The stock remains halted on Nasdaq and will likely get delisted soon. Anyone out there who still believes this company has almost $150 million cash on the bank?

http://china.fixyou.co.uk/2011/07/china-stock-obituary-2011.html

[bullmarkets]

Thanks.