XI'AN, China, Sept. 8 /PRNewswire-Asia/ -- China Natural Gas, Inc. ("China Natural Gas" or the "Company") (Nasdaq: CHNG), a leading provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced that the Company signed an agreement on September 6th, 2010 with Ernst & Young (China) Advisory Limited that Ernst & Young will provide assistance to the Company's management in compliance with Section 404 of the Sarbanes-Oxley Act of 2002.
According to the agreement, Ernst & Young will help the Company implement an internal control program. They will assist the Company's management in the recording, testing, and evaluating of internal controls involving entries and processes in financial reporting.
Ernst & Young is an international accountancy and auditing firm and a leader in assurance, tax, transaction, and strategic growth market advisory services. Ernst & Young is one of the "Big Four," the four largest and most respected accountancy and professional services firms in the world. Ernst & Young's clients include well-known blue chip companies such as Citigroup Inc., Google Inc., Coca-Cola Company, FedEx Corp., Target Corp., Lockheed Martin Corp., McDonald's Corp., and the NASDAQ stock exchange.
Mr. Qinan Ji, Chairman and CEO of China Natural Gas, commented, "Considering the recent weaknesses of internal controls over the Company's financial reporting, we are again hiring Ernst & Young to guide us. We believe that with our determined efforts and Ernst & Young's professional guidance, the Company will keep improving in the areas of internal control and corporate governance. The Company is also confident that it will comply with all applicable laws and rules in the future and will fully satisfy the requirements of Section 404 of the Sarbanes-Oxley Act. We appreciate the continued support of our investors as we strive to perfect the Company's internal controls, which we believe will help maximize our stock value and result in greater returns for our shareholders."
About China Natural Gas, Inc.
China Natural Gas transports and sells natural gas to vehicular fueling terminals, as well as commercial, industrial and residential customers through its distribution networks in China's Shaanxi and Henan Provinces. The Company owns approximately 120 km of high-pressure pipelines and operates 28 CNG fueling stations in Shaanxi Province and 12 CNG fueling stations in Henan Province. China Natural Gas' four primary business lines include: (1) the distribution and sale of CNG through Company-owned CNG fueling stations for hybrid (natural gas/gasoline) powered vehicles; (2) the installation, distribution and sale of piped natural gas to residential, commercial and industrial customers through Company-owned pipelines; (3) the distribution and sale of gasoline through Company-owned CNG fueling stations for hybrid (natural gas/gasoline) powered vehicles; and (4) the conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles through its auto conversion division.
Forward-Looking Statements
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. For example, statements about the future plans and goals of the JV with CNPC and its prospects are forward looking and subject to risks. China Natural Gas, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statements on Forms S-1 and S-3, in each case as amended. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
