ZHENGZHOU, China, Dec. 27, 2010 /PRNewswire-Asia-FirstCall/ -- China Valves Technology, Inc. (Nasdaq: CVVT) ("China Valves" or the "Company"), a leading Chinese metal valve manufacturer, today announced it has approved to replace Frazer Frost LLP with one of Big Four audit firms as its new independent auditor. Frazer Frost LLP continues to serve as the Company's auditor until Form 10-K for the fiscal year 2010 is filed.
The decision to change the Company's independent auditor was recommended, authorized and approved by China Valves' board of directors on December 27, 2010. In addition to making progress with the shift to one of Big Four audit firms, the Company has committed to improving its internal controls by strengthening its internal audit and financial reporting function by hiring two qualified financial personnel with Big Four auditing background.
The Company has met and received proposals from select Big Four audit firms, and is in advanced stages of negotiation with one of them. Both parties are proceeding with signing the letter of engagement in due course.
"We are committed to establishing the highest standards of financial transparency and believe that a transition to a Big Four audit firm is a required next step for us," said Mr. Jianbao Wang, the Chief Executive Officer of China Valves. "We fully appreciate the professional services rendered by the audit team of Frazer Frost LLP in the past."
"'We are pleased a Big Four audit firm will be engaged as our new independent auditor and look forward to working with them in the future," commented Mr. Siping Fang, the Chairman of China Valves. "As disclosed before, we just hired a new CFO with rich experience in overseas listed companies. I believe Dr. Wei will make a great contribution to the communication with the new audit firm to improve our transparency in the investing community."
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co., Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., Tai Zhou Taide Valve Co., Ltd., Yangzhou Rock Valve Lock Technology Co., Ltd., China Valve Technology (Changsha) Valve Co., Ltd. and Shanghai Pudong Hanwei Valve Co., Ltd., is engaged in the development, manufacturing and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries. The Company has one of the best known brand names in China's valve industry, and its history can be traced back to 1959 when it was formed as a state-owned enterprise. The Company develops valve products through extensive research and development and owns a number of patents. It enjoys significant domestic market share and exports to Asia and Europe. For more information, visit http://www.cvalve.com
Safe Harbor Statements
Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to access capital for expansion, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in principal product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. This press release is based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by China Valves to be accurate, nor does China Valves purport it to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.
China Valves Technology, Inc.
Gang Wei, CFO
CCG Investor Relations
Linda Salo, Account Manager
Crocker Coulson, President
SOURCE China Valves Technology, Inc.