Keyuan Petrochemicals asked delist its shares by NASDAQ

Keyuan Petrochemicals asked to delist its shares by NASDAQ

2:33 PM, 13th July 2011
Keyuan Petrochemicals asked to delist its shares by NASDAQ

  • Interim independent investigation completed. Results favourable: Company accounted for revenue properly.
  • Secured new auditor - GHP Horwath; will be compliant with regulatory filings as soon as possible.
  • Unaudited revenues of $292 million for the first six months ending June 30, 2011, representing 17 per cent Y-O-Y growth.
  • Production and sales volume expected to increase in 2H 2011 

NINGBO, CHINA: Keyuan Petrochemicals Inc (Nasdaq: KEYP), a leading merchant manufacturer of various petrochemical products in China, has received a letter from NASDAQ regarding a delisting of its stock based on the NASDAQ staff’s review of the company and pursuant to NASDAQ Listing Rule 5101 and Listing Rule 5250 (c)(1).

Keyuan has requested a hearing to appeal this decision and management is working diligently with all relevant authorities to regain compliance with its regulatory requirements.

Chungfeng Tao, Chairman and CEO, Keyuan Petrochemicals informed: “We apologize to our shareholders for the challenges we have experienced over the past few months. While these issues have taken longer to resolve than we originally anticipated, I assure you that the entire board of directors and senior management team is co-operating with all parties, including NASDAQ, to come to an expeditious resolution. I am especially proud of our employees and operations managers, who have continued to do an excellent job running our business throughout this process.”

“Demand for our products remains strong and we continue to sign new customers. I look forward to resolving all pending issues as soon as possible. In the meantime, we welcome all investors to come visit our facilities to witness the tremendous progress we are making,” concluded Tao.

On April 1, 2011, Keyuan filed for an extension of its 2010 10-K filing with the SEC after issues were raised by the independent auditor primarily related to certain cash transactions and recorded sales. NASDAQ’s notification to delist the company’s stock from the exchange is based primarily on the company’s inability to file audited financial statements on a timely basis, as well as issues raised by KPMG.

In the event that the stay to delist is not granted, the company’s shares will continue to be listed on NASDAQ but trade on the OTC Pink beginning July 26, 2011 until the decision of the appeal is released.

Management has fully co-operated with Pillsbury, Deloitte and King &Wood to provide the information they have requested. The interim report of the Keyuan’s unaudited sales to certain customers in fiscal year 2010 provided by the investigative team found that the sales were accounted for appropriately. Once the full investigation is completed, the company is confident that it will be able to regain compliance with the applicable securities laws. 

On July 5, Keyuan engaged GHP Horwath to be the company’s new auditor. GHP Horwath will begin to audit the company’s 2010 financial results immediately.

© WOC News





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