FUZHOU, China, Aug. 11 /PRNewswire-Asia-FirstCall/ -- China Yida Holding Company (Nasdaq: CNYD) ("China Yida" or the "Company"), a leading diversified entertainment enterprise in China, today announced the appointment of Friedman LLP ("Friedman") as its new independent auditors to replace BDO China Li Xin Da Hua CPA Co., Ltd ("BDO Li Xin Da Hua") effective August 9, 2010.
The Company will work with Friedman to complete and file its Form 10-Q on or before August 23, 2010.
BDO Li Xin Da Hua was appointed as independent auditors on May 20, 2010. BDO Li Xin Da Hua did not issue any audit report on the Company's financial statements from the appointment date of May 20, 2010 to the resignation date of August 8, 2010.
BDO Li Xin Da Hua recommended that the Company strengthen its internal controls, such as improving documentation for certain transactions and hiring competent and well trained personnel to prepare US GAAP based reporting documents.
"China Yida takes its responsibility to provide high quality financial disclosures very seriously and we deeply regret the delays in providing relevant documentation that led to BDO Li Xin Da Hua's decision," said Dr. Minhua Chen, China Yida's Chairman and CEO. "We have already begun work with Friedman on the review of our second quarter financial statements and will make every effort to complete this process within the extension period. We intend to take several important steps to strengthen our financial reporting processes. This includes maintaining effective communication with our new independent auditors to establish a detailed understanding of their working procedures to mitigate any discrepancies that can potentially arise with the change of independent auditors. We plan to strengthen our finance team with additional qualified personnel and training in US GAAP reporting requirements. And we will develop a comprehensive plan and engage the required resources to further strengthen our internal controls to ensure that we meet our obligations as a U.S. listed public company."
Based upon its currently available financial information, China Yida expects to report revenues for the second quarter in the range of $15.5-16.5 million dollars and net income in the range of $7.5-8.5 million dollars. These figures are subject to change based upon the completion of its second quarter financial statements with its independent auditor.
"The fundamentals of our business remain very solid. On July 19th, 2010 we were able to reopen partial operations and Great Golden Lake following two successive periods of flooding, and our renewal of our contract to operate the Fujian Educational Television Channel (FETV) for an additional five years provides us with improved revenue visibility for the future," concluded Dr. Chen.
About China Yida
China Yida is a leading diversified entertainment enterprise focused on China's fast-growing media and tourism industries and headquartered in Fuzhou City, Fujian province of China. The Company's media business provides operations management services; including channel, column and advertisement management for television station, presently the Fujian Education Television Station ("FETV", a top-rated provincial education television channel), and "Journey through China on the Train" (an advertisement-embedded travel program, currently the only on-board media program from third party authorized by Ministry of Railways). Additionally, the Company provides tourism management services, and specializes in the development, management and operation of natural, cultural and historic scenic sites. China Yida currently operates the Great Golden Lake tourist destination (Global Geopark, including Golden Lake, Shangqing River, Zhuanyuan Rock, Luohan Mountain and Taining Old Town.), Hua'An Tulou tourist destination (World Culture Heritage, including Dadi Tulou cluster and the Shangping Tulou cluster), China Yunding tourist destination (National Park, including Colorful Rock Valley, Yunding Paradise, Yunding Waterfall, South Heavenly Mountain, and Seven Star Lake), the Ming Dynasty Entertainment World, China Yang-sheng (Nourishing Life) Paradise and the City of Caves. The Company's operating scenic sites are over 300 square kilometers in the area. For further information, please contact the Company directly, or visit its Web site at http://www.yidacn.net.
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate, "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of China Yida Holding Co., Inc. (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement; (ii) the Company's ability to build and maintain the management and human resources and infrastructure necessary to support the anticipated growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov.
For more information, please contact: China Yida Holding Company George Wung, CFO Phone: +1-909-843-6358 Email: firstname.lastname@example.org CCG Investor Relations Crocker Coulson, President Phone: +1-646-213-1915 Ed Job, CFA Phone: +86-21-3133-5075 Email: email@example.com
SOURCE China Yida Holding Company