On March 31, 2016, a member of the Audit Committee of the Board of Directors of Skystar Bio-pharmaceutical Company (the “Company”) received a letter from Crowe Horwath (HK) CPA Limited (“Crowe”) terminating its relationship with the Company (the “March 31 Letter”).

The audit report of Crowe on the financial statements of the Company for the years ended December 31, 2012 and 2013 did not contain any adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope or accounting principles.  

Except as disclosed in Item 4.02 if this Current Report on Form 8-K and the letter attached hereto as Exhibit 7.1, for the two years ended December 31, 2013 and the subsequent period through March 31, 2016, there were no disagreements between the Company and Crowe on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Crowe would have caused Crowe to make reference to the subject matter of the disagreements in connection with its reports.

Except as disclosed in Item 4.02 if this Current Report on Form 8-K and the letter attached hereto as Exhibit 7.1, for the two years ended December 31, 2013 and the subsequent period through March 31, 2016, there were no “reportable events” (defined below) requiring disclosure pursuant to Item 304(a)(1)(v) of Regulation S-K. As used herein, the term “reportable event” means any of the items listed in paragraphs (a)(1)(v)(A)-(D) of Item 304 of Regulation S-K.

The Company has provided Crowe with a copy of the foregoing disclosures and has requested that Crowe review such disclosures and provide a letter addressed to the Securities and Exchange Commission (“SEC”) as specified by Item 304(a)(3) of Regulation S-K. When available, the Company will file as Exhibit 16.1 a copy of Crowe’s letter addressed to the SEC relating to the statements made by the Company in this Current Report on Form 8-K.

On April 6, 2016, the Company engaged Wei Wei & Co., LLP (“Wei”) as its principal accountant. During the two years ended December 31, 2013 and the subsequent period through March 31, 2016, neither the Company nor anyone on its behalf consulted Wei regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s consolidated financial statements, and neither a written report nor oral advice was provided to the Company that Wei concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K) or a reportable event.