China Energy Savings Announces Reasons of Trading Halt
March 22 2006 - 8:30AM
PR Newswire (US)
HONG KONG, March 22 /Xinhua-PRNewswire/ -- As previously announced
by Nasdaq, trading in shares of China Energy Savings Technology,
Inc.'s (NASDAQ: CESV) common stock was halted on February 15, 2006,
and would remain halted until the Company had satisfied Nasdaq's
request for additional information. At Nasdaq's request, China
Energy Savings Technology is providing this update as to the status
of Nasdaq's inquiry. Nasdaq's request for information involves the
facts and circumstances regarding the underlying transactions
related to the rescission of certain Rule 144 legal opinions by the
Company's prior securities counsel who resigned in February 2006,
as well as certain other matters related to the company's issuance
of securities. The Company has retained new securities counsel and
is cooperating with Nasdaq in an effort to resolve any questions or
issues raised by Nasdaq in order to resume trading as soon as
possible. About China Energy Savings Technology China Energy
Savings Technology, Inc., through its ownership interest in Starway
Management Limited engages in the development, manufacture, sale,
and distribution of energy-saving products for use in commercial
and industrial settings in the People's Republic of China.
According to test reports by various PRC authorities including the
National Center of Supervision & Inspection on Electric Light
Source Quality (Shanghai) issued in September 2002, Shenzhen
Academy of Metrology & Quality Inspection issued in December
2002 and approved by the State Quality Supervision Inspection
Department, the energy saving products of Starway's subsidiaries
may provide energy saving rates ranging from approximately 25% to
45%. The energy saving projects conducted by Starway's subsidiaries
mostly relate to public or street lighting systems, government
administration units, shopping malls, supermarkets, restaurants,
factories and oil fields, etc. There are small and large-scaled
projects: the small-scaled projects relate to restaurants, shops,
small arcades, offices and households through the sale of
equipment, and the large- scaled projects relate to large shopping
malls, supermarkets, factories and public bodies through the
provision and installation of equipment over a term usually
extended for years. Safe Harbor Statement As a cautionary note to
investors, certain matters discussed in this press release may be
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such matters involve
risks and uncertainties that may cause actual results to differ
materially, including the following: changes in economic
conditions; general competitive factors; the Company's ability to
execute its business model and strategic plans; and the risks
described from time to time in the Company's SEC filings.
DATASOURCE: China Energy Savings Technology, Inc. CONTACT: China
Energy Savings Technology, Inc., +852-2588-1228, or
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