So I feel that most of us have some concerns about the accounting at this company. Does anyone know how to access the Balance Sheet and Profit Loss Statements submitted the SAIC, the regulatory authority in China?
All Chinese companies owned by a foreign entity must report their balance sheets and profit loss statements to the SAIC. This would include Zhong He Li Da and other subsidiaries of China Education Alliance. If one of us can get a hold of these and compare the incomes and cash holdings reported there to those reported to the SEC, it would shed some light on the accounting procedures used.
I suggest this after an investigation of CSKI, China Sky One Medical. This company is under investigation for fraud and has used CEU's auditor (Sherb and Co.) in the past. www.waldomushman.com, a website devoted to investigating CSKI, exposes discrepancies between the reported income of CSKI's subsidiaries in the SAIC and SEC documents. The site seems to suggest that if the incomes are reported the same to both the American and Chinese regulatory bodies, the information will be more trustworthy, and I concur. If we can gain find out what ZHLD and other subsidiaries have been reporting, we may be able to figure out once and for all if CEU is the real deal, to be ridden out to huge profits, or if it is a scam, to be dropped now.
The SAIC site is in Chinese, and the English version is only a vague description of its services. Further, I believe the submitted documents may be in Chinese as well. I have e-mailed the SAIC requesting these documents, but I have low confidence as to the result, and I cannot read Chinese. An additional venue for research may be credit reports for the subsidiaries, namely Harbin Zhong He Li Da Education Technology, Inc and Heilongjiang Zhonghe Education Training Center. I have sent an e-mail to firstname.lastname@example.org requesting these. (www.inter-credit.net is where waldomushman.com got its reports on CSKI subsidiaries). These reports are in English.
If any one has any comments on this, please post. I would really like to get to the bottom of this, and I am sure there are many of you who would like to as well.
Chinese microcaps,and reverse merger microcaps in particular,have a universal taint right now. CCME has a top 4 auditor and it can't shake the taint. CHBT has an investor day showing off bank statements etc and it can't shake the taint. And that's not to say that CEU shouldn't hire a top 4 auditor. They should. But right now,investors just don't want to believe.
6 centers @ 300 students per center = 1800 students
WOW! Not to mention that BIG OLE investor YOU have and plan to hold a whopping position of a whole 1300 shares ....... I am TOTALLY UNDERWHELMED by all these positives ......... GEE ..... that more than offsets the risk of having Sherb & Co as accountants