Date: October 23, 2008
They explained in detail the steps that the independent Directors had taken since the sudden disappearance of the Chief Executive Officer (“CEO”) and Deputy CEO Mr Tao Shoulong and Madam Yan Qi, including their visit last week to the factory of CPD’s only wholly-owned operating subsidiary, Zhejiang Jianglong Textile Printing & Dyeing Co., Ltd (“ZJJL”) in Shaoxing County, their meeting with Shaoxing County officials, and the work presently being done to ascertain the position of the assets and liabilities of ZJJL.
The independent Directors assured me that what can feasibly be done within CPD’s limited resources to preserve the remaining value for shareholders is being done.
On behalf of minority shareholders of the company, I recommended to the Directors of CPD to consider all solutions with a view to achieving the best possible outcome for shareholders in the circumstances. The independent Directors of CPD assured me that they will continue to examine all options in the interests of shareholders, but they added that, as stated in the 20 October 2008 announcement, they were not hopeful that ZJJL can continue as a going concern, and CPD is a pure investment holding company with ZJJL as its only operating subsidiary.
SIAS is encouraged by the efforts of the independent Directors, who have taken timely and pro-active measures in the interests of the shareholders of CPD. The problem appears to have been caused by a serious and unexpected failure of integrity on the part of the CEO and the Deputy CEO. SIAS will continue to keep in close touch with the independent Directors of CPD on the matter. On their part, shareholders need to temper their expectations of a favourable outcome given this serious and unexpected turn of events.
The independent Directors of CPD have given SIAS their assurance that they will continue to issue announcements as and when material information comes to light, to keep investors updated on the situation.
David Gerald J.
President / CEO
SIAS
