1104904--10/16/2006--XINHUA_CHINA_LTD

related topics
{stock, price, share}
{interest, director, officer}
{competitive, industry, competition}
{capital, credit, financial}
{operation, international, foreign}
{debt, indebtedness, cash}
{property, intellectual, protect}
{regulation, change, law}
{cost, contract, operation}
We have incurred losses and substantial doubt exists about our ability to continue as a going concern. Trading on the OTC Bulletin Board may be sporadic because it is not a stock exchange, and stockholders may have difficulty reselling their shares. We have substantial debt obligations, including certain debt obligations secured by all of our assets. If we are unable to repay such obligations, our business will likely fail. Chinese tax and other laws may negatively impact our business results. Because our common stock is subject to penny stock rules, the liquidity of your investment may be restricted. NASD sales practice requirements may also limit a stockholder s ability to buy and sell our shares of common stock. We will need to restructure our business to maximize our profitability and cash flow. We may be unable to protect our intellectual property, particularly in light of Chinese intellectual property laws. We operate in a competitive industry and our failure to compete effectively may adversely affect our ability to generate revenue We may not be able to enter new markets, which may impair our ability to grow. Exchange rate fluctuations may negatively impact our business. Chinese funds remittance policies may not allow us to maximize our profitability. A decline in the price of our shares of common stock could affect our ability to raise further working capital and adversely impact our operations. If we issue additional shares of common stock in the future this may result in dilution to our existing stockholders. As a result of a majority of our directors and officers being residents of other countries other than the United States, investors may find it difficult to enforce, within the United States, any judgments obtained against our company or our directors and officers.

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