Harbin Electric (NASDAQ:HRBN)

HARBIN, China, Sept. 6, 2011 /PRNewswire/ -- Harbin Electric, Inc. ("Harbin Electric" or the "Company"; NASDAQ: HRBN, a leading developer and manufacturer of a wide array of electric motors in the People's Republic of China ("China"), today issued a statement regarding an anonymous blog posting, which includes a report with contributions made by persons that have a short interest in Harbin Electric.

"Harbin Electric categorically denies the latest baseless accusations made in an anonymous report posted on a blog earlier today, which includes contributions by short sellers.  Regarding the land purchase referenced in the report, the Company stands by the statements as disclosed in its 10-Q dated August 9, 2011.  Harbin Electric confirms that the land purchase was done in full compliance with various relevant Chinese government entities and notes this transaction structure is a common practice in China."

The Company cautions shareholders to disregard and not be distracted by these and all previous accusations raised by short sellers.  The $24.00 per share all cash going private transaction was reaffirmed today by the purchasing group, including Mr. Tianfu Yang, Chairman and Chief Executive Officer of Harbin Electric, and Abax Global Capital ("Abax").  The China Development Bank Corporation also today reaffirmed its commitment to provide financing for the going private transaction.

HARBIN, China, Aug. 24, 2011 /PRNewswire-Asia-FirstCall/ -- Harbin Electric, Inc. ("Harbin Electric" or the "Company") (NASDAQ: HRBN) today responded to allegations made by a blog posting today (the "Report").

"As I have mentioned before, we fully expected that die-hard short sellers would continue to try and create opportunities to make money for themselves to the detriment of the large community of loyal shareholders of the Company as we get closer to the expected completion of the pending going private transaction," said Mr. Yang Tianfu, Chairman and CEO.

"I am happy to reiterate emphatically that we stand by the accuracy of our filings with the SEC. As disclosed in the Company's recent filings of the preliminary proxy statement in connection with the pending going private transaction, the Company was subject to extensive due diligence conducted by third parties and provided all requested materials, including its relevant PRC tax filings.

"At this stage, I believe that our loyal shareholders fully understand the motivations behind this type of 'research work' and are clearly focused on their opportunity to finally speak with their votes and be rewarded accordingly. I am happy to leave it at that."

The Company reserves the right to bring legal actions against the author(s) of the Report for their unfounded allegations.

HARBIN, China, June 17, 2011 /PRNewswire-Asia-FirstCall/ -- Harbin Electric, Inc. ("Harbin Electric" or the "Company") (NASDAQ: HRBN) today responded to allegations made by Citron Research in a posting on CitronResearch.com dated June 16, 2011 as yet another attempt to drive its stock price down that is based on factually incorrect as well as out-of- context information.

Mr. Yang Tianfu's brother, Mr. Yang Tianli is not, and has never been, a member of the Board of Directors of Harbin Electric.

There has never been a Civil Settlement. The case was settled privately approximately 10 years after the alleged facts with no admission of guilt by Mr. Yang Tianfu or Mr. Yang Tianli. The sole involvement of Mr. Yang Tianfu, in the referenced settlement agreement was to provide financial assistance to his brother, Yang Tianli, to settle a dispute to which neither Mr. Yang Tianfu himself nor Harbin Electric was a party.

Mr. Yang Tianfu and the Company reserve the right to bring legal actions against Citron Research for these erroneous allegations.

As to the comparison between the Company's financial statements in the filings with the PRC State Administration for Industry and Commerce (SAIC) and the SEC filings, the Company's SAIC filings may not precisely match its SEC filings because of a number of reasons.  First, there are significant differences between PRC accounting standards, which are used for the Company's financial statements in SAIC filings, and the U.S. GAAP, which are used for the Company's financial statements filed with the SEC.  Second, SAIC filings are not made on the Company's consolidated basis and each subsidiary often includes inter-company transactions between the Company's different subsidiaries. Therefore, financial reports based on the SAIC filing are not an accurate reflection of the Company's consolidated financial statements, and should not be relied upon as accurate and fair presentation of the Company's financial position. The Company has recently reconciled its PRC tax filings with its financial statements reported in the SEC filings for fiscal year 2009 and has not found any inconsistency in any material respect, and stands by the accuracy of its historical filings with the SEC.

Finally, through discussions with China Development Bank Corporation Hong Kong Branch ("CDB") held on June 17, 2011 in Hong Kong, CDB confirmed that it would abide the Facility Agreement dated as of June 9, 2011 to provide a $400 million term loan to fund the proposed purchase of all of the outstanding shares of Common Stock of Harbin Electric by Mr. Yang Tianfu, Abax and their respective affiliates, subject to certain conditions.  

The special committee of independent directors formed by Harbin Electric's Board of Directors (the "Special Committee") to consider and evaluate this proposal is continuing its work with the assistance of its financial and legal advisors. There can be no assurance that any definitive agreement will be executed with respect to this proposal or that this or any other transaction will be approved or consummated.

A copy of the Facility Agreement between Tech Full and CDB was filed with the SEC in an SC 13D/A Form on June 9, 2011.

HARBIN, China, May 27, 2011 /PRNewswire-Asia-FirstCall/ -- Harbin Electric, Inc. a leading developer and manufacturer of a wide array of electric motors in the People's Republic of China, has received telephone calls and emails from a number of investment professionals inquiring about rumors concerning its Chairman and Chief Executive Officer, Mr. Tianfu Yang ("Mr. Yang") and its Chief Financial Officer, Mr. Zedong Xu ("Mr. Xu"), including that Mr. Yang and Mr. Xu have gone missing.

The Company, Mr. Tianfu Yang and Mr. Zedong Xu categorically deny such rumors. The Company is happy to report that the entire management team of the Company including Mr. Yang and Mr. Xu have been and are at work and are fully performing their respective corporate duties.