Asian Accounting Fraud Case: Hongwei Technologies

1. HONGWEI TECHNOLOGIES LIMITED
(Incorporated in Bermuda)
(Company Registration Number: 36568)
AUDIT ISSUES
The Board of Directors of Hongwei Technologies Limited (the “Company”) wishes to
announce that the Board has received information from its auditors, Messrs. Ernst & Young
LLP, regarding issues pertaining to the cash and bank balances confirmation in its subsidiary
company in China, namely Shuangli (Xiamen) Polyester Co., Ltd. The Company’s Audit
Committee has immediately commenced a fact-finding process to address the auditors’
concerns.
To this end, the Company has appointed the auditors to carry out an expanded scope audit.
The Company’s Audit Committee is currently working to resolve these audit issues and will be
taking necessary measures to safeguard the Company's assets. The full Board (save for the
Executive Chairman, Mr Lin Jimiao and Mdm Zhuang Xinxin) has been in discussion. The
Audit Committee is also working to obtain the full co-operation from the Executive Chairman,
Mr Lin Jimiao (who is also the Legal Representative of the Subsidiaries) in this regard. The
Company is unable to comment on the matter at present. Nonetheless, the Company will
continue to keep shareholders updated of any further development.
The Company will also apply to the Singapore Exchange Securities Trading Ltd (“SGX-ST”)
for an extension of time in relation to Rule 705(1) of the Listing Manual which relates to the
requirement of the Company to announce its full financial year results for the year ended 31
December 2010 (“FY2010”) no later than 1 March 2011.
The Company will make further announcements promptly as and when there are material
developments.
Trading of shares in the Company has been halted on 24 February 2011. Meanwhile, the
Company has requested for the trading halt to be converted into a suspension of trading of
the Company’s shares on SGX-ST.
BY ORDER OF THE BOARD
Gui Kim Young @ Gui Kim Gan
Independent Director
26 February 2011