HARBIN, China, Feb. 22, 2011 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (Nasdaq: CSKI), a leading fully integrated pharmaceutical company in the People's Republic of China ("PRC"), today provided an update regarding its progress in amending financial reports previously filed with the State Administration for Industry and Commerce ("SAIC"), the PRC governmental agency responsible for issuing and renewing the Company's business license.
According to the Company, corrected financial reports for 2007, 2008 and 2009 have been submitted to the local SAIC offices in the jurisdictions in which the Company's subsidiaries are located. The Company believes that the financial information included in the amended reports is consistent with the information included in reports filed by the Company with the U.S. Securities and Exchange Commission. As previously reported, the Company believes that, should the SAIC impose a penalty in connection with amending these financial reports, such penalty will not be material.
Liu Yan-qing, the Company's Chief Executive Officer, stated, "We always endeavor to follow all relevant rules and regulations when conducting our business, both in the PRC and abroad. If, on occasion, we become aware that an error was made, we seek advice of professionals to determine the appropriate course of action to correct it, and will continue to do so in the future."
Chairman Liu further stated that, although he believes the chances of imposition of a penalty by the SAIC are remote, he will personally pay any penalties and fines imposed by the SAIC in connection with the Company's amendment of the SAIC filings.
The Company also provided an update with respect to its invitation to shareholders to visit China Sky One Medical's locations in Harbin. "Since we made our offer, we have been contacted by a number of interested shareholders," stated Chairman Liu. "The Company is in the process of planning this year's annual shareholders' meeting and, concurrently with the meeting, intends to host an investor week," he continued. The Company reaffirmed its offer to pay for visitors' Chinese domestic airfare and local accommodations. The Company will provide an update on timing once a schedule has been determined.
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company. The Company engages in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company, Harbin First Bio-Engineering Company Limited, Heilongjiang Tianlong Pharmaceutical, Inc. and Peng Lai Jin Chuang Pharmaceutical Company, the Company manufactures and distributes over-the-counter pharmaceutical products, which make up its major revenue source. For more information, visit http://www.cski.com.cn.
Safe Harbor Statement
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the Company's brand recognition and product quality. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
SOURCE China Sky One Medical, Inc.