CHANGGE, Henan Province, China, May 9 /Xinhua-PRNewswire-FirstCall/ -- Zhongpin Inc. (Nasdaq: HOGS) ("Zhongpin"), a leading meat and food processing company in the People’s Republic of China ("PRC"), today announced that it has entered into a letter of engagement with Horwath Risk Advisory Services Limited ("Horwath"), a member of Horwath International, and Beijing Richen Consultants Co., Ltd. ("Beijing Richen") to assist the Company in reaching compliance with Section 404 of the Sarbanes-Oxley Act of 2002 ("SOX 404").
Horwath and Beijing Richen have worked with Zhongpin since June 2006, following the completion of Zhongpin’s reverse merger and listing on the
Over-the-Counter Bulletin Board. Since that time, Horwath and Beijing Richen have assisted Zhongpin in establishing internal controls in accordance with SOX 404 requirements. This new engagement is a continuation of the consulting and advisory services that have been provided to Zhongpin over the last two years.
Pursuant to the new letter of engagement, Horwath and Beijing Richen will update the internal control records of Zhongpin’s existing factories and create internal control records for the Company’s newly constructed factories. In addition, the consultants will assist Zhongpin in documenting and testing its internal controls and will provide recommendations for the remediation of any material weaknesses identified. As a part of the service package, the consultants will also provide the Company with advice in relation to the management’s internal control evaluations in Zhongpin’s annual report filed on Form 10-K for the fiscal year ending December 31, 2008.
"We look forward to continue working with our consultants in reaching full compliance with SOX 404 by the end of the year," commented by Mr. Xianfu Zhu, Chairman and CEO of Zhongpin. "As a public company listed on the Nasdaq Global Select Market, Zhongpin should have strong internal controls in place, which will instill confidence in our shareholders regarding the quality of our financial reporting and disclosure, and keep Zhongpin on track to achieve our profitability goals and strategic mission."
About Horwath Risk Advisory Services Limited
Horwath Risk Advisory Services Limited is an independent member firm of Horwath International, which specializes in providing risk consulting solutions for businesses. As one of the largest global professional service organizations, Horwath International has more than 110 independent member firms operating from more than 420 offices around the world. The Hong Kong and China offices of Horwath International employ 1,700 people in five locations.
About Beijing Richen Consultants Co., Ltd.
Beijing Richen Consultants Co., Ltd., located in Beijing, provides financial accounting, consulting and risk management advisory services.
About Zhongpin
Zhongpin is a meat and food processing company that specializes in pork and pork products, and fruits and vegetables, in the PRC. Its distribution network in the PRC spans more than 20 provinces and includes over 2,900 retail outlets. Zhongpin’s export markets include the European Union, Eastern Europe, Russia, Hong Kong, Japan and South Korea. For more information, contact CCG Elite directly or go to Zhongpin’s website at http://www.zpfood.com .
Safe Harbor Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements within the meaning of Federal securities laws. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of the company’s management and are subject to risks and uncertainties which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the Company’s ability to meet SOX 404 compliance by year end, unanticipated changes in product demand, interruptions in the supply of live pigs/raw pork, downturns in the Chinese economy, delivery delays, freezer facility malfunctions, poor performance of the retail distribution network, changes in applicable regulations, and other information detailed from time to time in the company’s filings and future filings with the United States Securities and Exchange Commission.
For more information, please contact:
Crocker Coulson, President
CCG Elite
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgelite.com
Yuanmei Ma, Chief Financial Officer
Zhongpin Inc.
Tel: +86-10-82861788
