HARBIN, China, Dec. 21, 2010 /PRNewswire-Asia-FirstCall/ -- China Botanic Pharmaceutical Inc. (AMEX: CBP) ("China Botanic" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM"), today announced that the Company has made considerable progress in its efforts to comply with the requirements of Article 404 of the Sarbanes-Oxley Act ("SOX 404") for fiscal year 2010.
As announced earlier on May 27, 2010, China Botanic engaged PricewaterhouseCoopers ("PwC") to review its internal controls and to provide the corresponding recommendations for gaps/issues noted for fiscal year 2010. Since then, the Company has undergone four rounds of testing and improvements of its internal controls based on PwC's recommendations. Additional details on this ongoing process and the interim results of the initiative will be published in the Company's annual report for its fiscal year ended on October 31, 2010.
"We are committed to good corporate governance, and our SOX 404 compliance program is an important element in strengthening internal controls," said Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic. "To-date, all noted deficiencies are being remediated. Additional details on the internal control remedial actions will be published in the Company's annual report for its fiscal year ending on October 31, 2010. Management has established the necessary procedures to further enhance the relevant areas, and it is our goal to be fully compliant by the end of our fiscal 2011 as required by regulation. "
ABOUT CHINA BOTANIC PHARMACEUTICAL INC.
China Botanic Pharmaceutical Inc. is engaged in the research, development, manufacturing, and distribution of botanical products, bio-pharmaceutical products, and traditional Chinese medicines ("TCM"), in the People's Republic of China. All of the Company's products are produced at its three GMP-certified production facilities in Ah City, Dongfanghong and Qingyang. The Company distributes its botanical anti-depression and nerve-regulation products, biopharmaceutical products, and botanical antibiotic and OTC TCMs through its network of over 3,000 distributors and over 70 sales centers across 24 provinces in China.
Safe Harbor Statement
This press release contains certain statements that may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's beliefs, assumptions and expectations of the Company's future operations and economic performance, taking into account the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known that may cause actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial condition expressed or implied in any forward-looking statements. These forward-looking statements are based on current plans and expectations and are subject to a number of uncertainties including, but not limited to the Company's ability to manage expansion of its operations effectively, and other factors detailed in the Company's annual report on Form 10-K and other filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein.
China Botanic Pharmaceutical Inc.
Ms. Portia Tan, IR Contact
CCG Investor Relations:
Mr. Mark Collinson, Partner
Phone: +1-310-954-1343 (Los Angeles)
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
SOURCE China Botanic Pharmaceutical Inc.