BEIJING, Feb. 5 /Xinhua-PRNewswire-FirstCall/ -- China TransInfo Technology Corp., (OTC Bulletin Board: CTFO), ("China TransInfo" or "the Company"), a leading provider of public transportation information systems technology and comprehensive solutions in the People’s Republic of China, filed two 10-QSB/As on January 31, 2008 to amend the quarterly reports on Form 10-QSB for the six-month period ended June 30, 2007 and the nine-month period ended September 30, 2007, which were filed on August 16, 2007 and November 14, 2007, respectively. As a result of the amendments, the Company recognized $187,495 and $590,273 more in net income for the first six months and first nine months of 2007, respectively. Total net income increased to $1,539,174 for the six-month period ended June 30, 2007 and to $3,604,344 for the nine-month period ended September 30, 2007.
It was necessary to revise these figures on the Company’s financial statements for the following reasons:
-- The Company restated the liabilities and stockholders’ equity sections
on its condensed consolidated balance sheets due to the
reclassification of accrued warrant liabilities from stockholders’
equity and the decreases in fair value of accrued warrant liabilities;
-- The Company restated the other income section on its condensed
consolidated statements of operations and comprehensive income due to
the decrease in fair value of warrant liabilities;
-- The Company restated the amount of net cash used in operating
activities due to a decrease in accrued expenses; and also restated
the amount of net cash provided by investing activities due to the
adjustment of cash acquired from a reverse acquisition on the
condensed consolidated statements of cash flows; and
-- The Company added its condensed consolidated statements of changes in
stockholders’ equity to the Company’ financial statements for the six
months ended June 30, 2007 and the nine months ended September 30,
2007.
“We are pleased to be current with our financial reporting,” said Mr. Shudong Xia, China TransInfo’s CEO. “With the recent addition of our new CFO, Troy Mao, to China TransInfo’s management team, we expect to provide accurate, timely and high quality financial disclosure. In this way, we hope to provide as much transparency as possible to our shareholders as well as the investment community at large.”
About China TransInfo
China TransInfo, through its subsidiary Beijing PKU ChinaFront High Technology Co., Ltd. ("PKU"), is primarily focused on providing transportation information services. The Company aims to become the largest transportation information product and comprehensive solutions provider, as well as the largest integrated transportation information platform and commuter traffic media platform builder and operator in China. China TransInfo is involved in developing multiple applications in transportation, digital city, land and resource filling system based on GIS technologies which is used to serve the public sector. In addition, the Company is also developing its transportation system to include ETC technology. The Company is the co-formulator to several transportation technology national standards and has software copyrights for to 13 software products. China TransInfo has won 3 of 4 model cases sponsored by PRC Ministry of Communications. The Company’s affiliation with Peking University, which currently owns 5% of PKU, provides access to the University’s GeoGIS Research Laboratory, including 30 Ph.D. researchers. As a result, the Company is currently playing a key role in setting the standards for electrified transportation information solutions.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements". These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security.
For more information, please contact:
China TransInfo Technology Corp.
Mr. Troy Mao, CFO
Tel: +86-10-82671299-3026 (Beijing)
Email: troymao@ctfo.com
CCG Elite Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
