WEB NEWS Auditor trail
On January 4, 2012, China CGame, Inc. (the “Company”) received a letter from The NASDAQ Stock Market (“NASDAQ”) indicating that NASDAQ has determined to initiate procedures to delist the Company’s securities since the Company has not held its annual meeting within the time frame allowed under the Listing Rules 5620(a) and 5620(b). The Company is going to request an appeal of this determination before Eastern Time January 10, 2012 pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series. A hearing request will stay the suspension of the Company’s securities and the filing of the Form 25-NSE pending the Panel’s decision. On the same day the Company received the letter from NASDAQ,
Samuel H. Wong & Co., LLP resigned as the auditor of China CGame, Inc.
Investor Alert
On August 23, 2011, China CGame, Inc. (the “Company”) received a letter from The NASDAQ Stock Market (“NASDAQ”) indicating that due to the resignation of Ms. Kelly Wong from the Company’s Board of Directors, the Company no longer complies with Nasdaq’s audit committee requirements as set forth in Listing Rule 5605.
However, consistent with Listing Rule 5605(c)(4), Nasdaq will provide the Company a cure period in order to regain compliance
Comments & Business Outlook
CHINA CGAME, INC.
(Stated in US Dollars)
Notes
Years ended December 31,
2010
2009
Contract revenues earned
(12)
$
27,565,254
$
117,190,918
Cost of contract revenues earned
25,654,242
94,721,967
Gross profit
$
1,911,012
$
22,468,951
Selling, general and administrative expenses
16,014,371
21,092,107
Income / (Loss) from operations
$
(14,103,359
)
$
1,376,844
Interest income
10,759
58,425
Interest expense
(7,629,462
)
(6,331,493)
Other income
864,764
176,871
Other expenses
(2,313,538
)
(329,241)
Income / (Loss) before taxation on Continuing Operations
$
(23,170,836
)
$
(5,048,594)
Income tax /(tax benefit)
(13)
24,338
(107,031)
Discontinued Operation Loss, net of tax
(14)
-
1,900,794
Net Earnings/(Loss) including non-controlling interest
$
(23,195,174
)
$
(6,842,357)
Net Loss attributable to non-controlling interest
891,991
33,020
Net Earnings/(Loss) attributable to the Company
$
(22,303,183
)
$
(6,809,337)
Earnings/(Loss) per share:
Basic
$
(1.39
)
$
(0.51)
Diluted
$
(1.39
)
$
(0.51)
Weighted average shares outstanding:
Basic
16,091,958
13,314,825
Diluted
16,091,958
13,314,825
The recent trends in the global economy have had a significant adverse impact on our results of operations and on the commercial construction industry as a whole. The competitive environment in which we operate has become more competitive, increasing the number of re-bid construction projects and amount of time between bidding and award of a project, reducing selling prices, and causing competitors to modify the scope and type of projects on which they bid.
In 2009 and 2010, the spread of the global recession and reduction in the nature and scope of international construction projects have led us to primarily focus our attention on domestic projects in China. Dubai, Doha, Kuwait and other Middle East region have suffered greatly under the impact of the global financial crisis. Our projects have suffered significantly as well. Beginning in 2009, we experienced a significant decrease in the project turnover and an increase in costs and delays in customer payments. This negative trend has continued during fiscal 2010 . Our results of operations have also suffered. For instance, we have experienced significant difficulties with respect to our Dubai and Project, as discussed below under, "Dubai Metro Rail Project". As a result, we ended the orders of the construction of international projects in 2009, and shifted the focus of our business to design and professional consulting services . To develop projects and generate revenue, we have sought to join new projects in the position of design and project consultant and the role of material supplier.
We acquired a 60% equity interest in Shanghai ConnGame Network Ltd. (“ConnGame”) on August 18, 2010. We believe that our acquisition of ConnGame will permit us to refocus our core capabilities and facilitate our planned transformation into a high-end architectural design consultant and service provider, as we intend to leverage ConnGame’s design engines and virtual applications to broaden our service capabilities and scope of architectural collaborations.
ConnGame is a start-up, development-stage company and has not yet generated or realized material revenues from its business operations. We expect to incur significant expenses from ConnGame's operations primarily due to its continued research and development activities, the operations and marketing of its products. Operations expenses related to ConnGame's operations for the year ended December 31, 2010 totaled approximately $3.6 million, with a substantial majority of this amount relating to research and development expenses. ConnGame anticipates that during the next 12 months, it will incur additional expenses towards the operations and marketing of the products.
Investor Alert
As of December 31, 2010, we did not pay make the required payments scheduled under the waivers and was negotiating with the Bondholders for extension of the date of the scheduled payments. If we are required to repurchase all or a portion of the outstanding amount of $28.0 million in bonds and we do not have sufficient cash to make the repurchase, we will be required to obtain third party financing to do so, and there can be no assurances that we will be able to secure financing in a timely manner and on favorable terms, which could have a material adverse effect on our financial performance, results of operations and stock price.
Liquidity Requirements
As of December 31, 2010,
we did not pay make the required payments scheduled under the waivers and was negotiating with the Bondholders for extension of the date of the scheduled payments. If we are required to repurchase all or a portion of the outstanding amount of $28.0 million in bonds and we do not have sufficient cash to make the repurchase, we will be required to obtain third party financing to do so, and there can be no assurances that we will be able to secure financing in a timely manner and on favorable terms, which could have a material adverse effect on our financial performance, results of operations and stock price.
Corporate Governance
CHANGZHOU, China, Feb. 23, 2011 /PRNewswire-Asia / -- China Architectural Engineering, Inc. today announced that it has appointed Mr. Steven Zhixin Xing as Chief Executive Officer and as a member of the Company's Board of Directors.
Investor Alert
CHANGZHOU, China, January 10, 2011-- China Architectural Engineering, Inc. today announced that it has been informed by NASDAQ that the Company is in compliance with all NASDAQ listing standards, including the minimum price bid requirement. As required under NASDAQ’s Listing Rules, the Company's common stock was required to maintain a closing bid price of $1.00 or more per share for at least ten consecutive trading days
CFO Trail
On September 12, 2010, the following resignations of China Architectural Engineering, Inc. occurred, with such resignations of being effective immediately and not being due to any disagreement with the Company:
Luo Ken Yi resigned as the Chief Executive Officer and Mr. Luo maintained his position as President of the Company and a member of the Board of Directors of the Company.
Gene Michael Bennett resigned as the Company’s Chief Financial Officer
Zheng Jin Feng and Zhao Bao Jiang each resigned as a director.
On September 12, 2010, the Company’s Board appointed:
Wing Lun (Alan) Leung to serve as the Chief Executive Officer and director of the
Company. Qin (Andy) Lu as the Acting Chief Financial Officer and Corporate Secretary, who will serve as the Company searches for a permanent replacement for the Chief Financial Officer position.
Comments & Business Outlook
Mr. Ken Yi Luo, the Company's chief executive officer and chairman, commented , "Despite the recent trends in the global economy that had a significant adverse impact on the commercial construction industry as a whole, we are working diligently to concentrate our resources and capital in the domestic market. During this quarter, we made progress on several domestic projects and continued our efforts to leverage our patented technology, high quality design and extensive experience to provide technical consulting and advisory services. During this quarter, our shareholders also approved the acquisition of the majority interest of Shanghai ConnGame Network. We intend to keep our investors up-to-date and will make further announcements once the acquisition is complete. Furthermore, we remain confident
Comments & Business Outlook
Mr. Luo continues, 'Despite the difficult global economic environment, we are encouraged by the opportunities in our domestic market . The Chinese government's stimulus plan and new loans have had a strong effect on the macro economy. Economists believe the recovery is happening even faster than the market had expected, and unsurprisingly, we have already begun to see a rise in bidding activities in our government and commercial sectors . In fact, we have won two new municipal projects in China since the beginning of the third quarter. We believe we are well positioned to capture revenue opportunities created by the improving market conditions and growing domestic demand and to strengthen our sources of revenue, increase our high-quality assets, secure long-term profitability, reduce operating risk and maintain steady gross margins. Correspondingly, we are concentrating our resources and capital in the domestic market and leveraging our patented technology, high quality design and extensive experience to further expand our market leadership.'
Source: PR Newswire (August 17, 2009)
Comments & Business Outlook
CAE Chairman and CEO Ken Li Luo commented, “The latest quarter was extremely challenging for most businesses, especially those involved in large-scale construction. However, despite this environment, I am gratified that the Company was able to grow its revenues sharply and maintain profitability despite a deep worldwide recession. It is also notable that CAE was able to continue its aggressive global expansion efforts. In the near term, this aspect of CAE’s growth strategy impacts profits by increasing the Company’s operating costs. But in the longer term it can be expected to produce a sharp rise in revenues, with rising gross margins and international diversification that makes us less vulnerable to demand volatility in CAE’s home market, China.”
In the latest of its periodic backlog updates, CAE today also reported that the total value of projects expected to produce revenue as of March 31, 2009 stood at $136 million . CAE defines backlog as the total anticipated revenue from projects already begun and upcoming projects for which contracts have been signed or awarded and pending signing. CAE views backlog as an important statistic in evaluating its level of sales activity and short-term sales trends in its business. It also cautions that backlog is only one indicator and not necessarily the most effective indicator of the ultimate profitability of its revenues.
Source: Business Wire (May 14, 2009)
Comments & Business Outlook
The Company reported that the global recession has affected its activities in all markets, including China, the U.S., Southeast Asia and the Middle East, where it is active in Dubai and Qatar. It has reduced its projected scope of contracted work to reflect a substantially more severe downturn than expected when it last revised its revenue and net income guidance on December 15, 2008 .
Source: Business Wire (March 18, 2009 )
