BEIJING, Aug. 8, 2011 /PRNewswire-Asia-FirstCall/ --
Cash Position with Banks
Duoyuan Global Water Inc. (NYSE: DGW) ("Duoyuan" or the
"Company"), is a leading China-based domestic water treatment equipment
supplier. The Company's Special Investigation Committee (the
"Committee") today announced that based on the available bank
account statements, the Company's bank balances were
approximately:
(i) USD$24,362,243 plus
RMB801,756,757 (USD$122,286,126) equal to USD$146,648,369 on March
31, 2011, and
(ii) USD$23,221,331 plus
RMB683,530,316 (USD105,409,872) equal to USD$128,631,203 on May 31,
2011.
The Committee utilized the Company's existing eight (8) online
internet banking facilities for the March
31 and May 31, 2011 RMB
balances, and those internet bank balances were consistent with the
bank statements. Internet banking facilities for the USD accounts
will be established, but were not available to review in connection
with this press release. The cash balance dates selected for the
disclosure above are ones the Committee deemed demonstrative for
the ongoing investigation.
Status of Special Investigation
The Committee has advised that the special investigation is
ongoing and that: (i) the Committee has engaged Baker &
McKenzie and PricewaterhouseCoopers ("Special Counsel") to provide
assistance to the special investigation to address various
allegations made against the Company; (ii) Special Counsel is in
the process of gathering more information and documents, including
but not limited to banking documents and sales records, and
conducting review and verification of documents and the information
received; (iii) verification and review of the financial records,
including the cash balance figures stated above, will be conducted;
(iv) interviews have been conducted with certain key members of the
management team, (v) further interviews will be conducted with
additional members of management and with other relevant third
parties, and (vi) given the ongoing investigation, it is
premature to report any conclusions.
The Special Committee with the assistance of its Special Counsel
is working to conclude the investigation as soon as possible. The
Committee intends to provide updated information from time to time
on the status of its investigation efforts when it deems
appropriate.
Currency Translation
This press release contains translations of certain Renminbi
(RMB) amounts into US dollars at specified rates solely for the
convenience of readers. The translations from Renminbi to US
dollars were made at the following rates: March 31, 2011 RMB6.5564 to USD$1.00 and May 31,
2011 RMB6.4845 to USD$1.00. Duoyuan Global Water makes no
representation that the Renminbi or US dollar amounts referred to
in this press release could have been or could be converted into US
dollars or Renminbi, at any particular rate or at all.
About Duoyuan Global Water Inc.
Duoyuan Global Water Inc. is a leading China-based domestic water treatment equipment
supplier. Duoyuan's product offerings address key steps in the
water treatment process, such as filtration, water softening,
water-sediment separation, aeration, disinfection and reverse
osmosis. Duoyuan offers a comprehensive set of complementary
products across three product categories: water conservation,
including circulating water treatment; water purification; and
water reuse treatment, including wastewater treatment. The Company
has an extensive local distribution network, which provides
proximity to end-user customers and responsiveness to local market
demand. Learn more at www.duoyuan-hq.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including certain plans, expectations, goals, and
projections, which are subject to numerous assumptions, risks, and
uncertainties. These forward-looking statements may include, but
are not limited to, statements containing words such as "may,"
"could," "would," "plan," "anticipate," "believe," "estimate,"
"predict," "potential," "expects," "intends" and "future" or
similar expressions. These forward-looking statements speak only as
of the date of this press release and are subject to change at any
time. These forward-looking statements are based upon management's
current expectations and are subject to a number of risks,
uncertainties and contingencies, many of which are beyond the
Company's control that may cause actual results, levels of
activity, performance or achievements to differ materially from any
future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. The
Company's actual results could differ materially from those
contained in the forward-looking statements due to a number of
factors, including those described under the heading "Item 3. Key
Information — Risk Factors" in the Company's Annual Report on Form
20-F for the year ended December 31,
2009, filed with the Securities and Exchange Commission on
June 18, 2010, and in documents
subsequently filed.
SOURCE Duoyuan Global Water Inc.