"Despite a very challenging sales environment caused by a continuation of China's restrictive fiscal policy in 2011, we are encouraged by our fourth quarter results due to our efforts to expand into regional areas of China, the development of our marketing force and our restructuring efforts," said James Jun Wang, the company's chairman and CEO, in a press release issued after Monday's closing bell.
China-based companies with U.S. listings have faced increased skepticism since the emergence of questions about accounting at a number of these companies in 2011.
Investors should be aware that Goldman Kurland & Mohidin LLP, SmartHeat's independent auditor, included an opinion in the company's Form 10-K filed on Monday that SmartHeat has a "material weakness" in the internal controls over its financial reporting.
The weakness in the Form 10-K is listed as a "Lack of technical accounting expertise among financial staff regarding (a) U.S. GAAP
>To contact the writer of this article, click here: Michael Baron.
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