1107564--5/3/2007--NEW_FIBER_CLOTH_TECHNOLOGY

related topics

{operation, international, foreign}

{stock, price, share}

{personnel, key, retain}

{stock, price, operating}

{control, financial, internal}

{regulation, change, law}

{cost, regulation, environmental}

{customer, product, revenue}

{interest, director, officer}

{property, intellectual, protect}

{operation, natural, condition}

{competitive, industry, competition}

{product, market, service}

{capital, credit, financial}

{cost, contract, operation}

Fluctuations in the price of raw materials or shortages of supply could adversely affect our business. We have a limited operating history. One stockholder s immediate family has majority control over our Company's voting stock, which will allow him to influence the outcome of matters submitted to stockholders for approval. We rely on skilled labor. We rely on key management and officers. We rely on production facilities in China. Our industry is highly competitive and our success depends on our ability to compete effectively. We have several customers that account for a large portion of our net sales. The loss of, or significant decline in our sales to, any of our large customers could adversely affect our business. If we are unable to fund our capital expenditure requirements, we may fail to remain competitive. If we fail to identify fashion trends, we could lose market position and our financial performance could be negatively impacted. Infringement of our trademark may adversely affect us. The war in Iraq and any future armed conflict or terrorist activities may adversely affect the U.S. economy and our business. Our business is subject to significant political and economic uncertainties and may be adversely affected by political, economic and social developments in China. If relations between the United States and China worsen, our stock price may decrease and we may have difficulty accessing U.S. capital markets. It may be difficult to serve us with legal process or enforce judgments against our management or DeYi. The Chinese legal system is not fully developed and has inherent uncertainties that could limit the legal protections available to you. We may experience lengthy delays in resolution of legal disputes. Any adverse changes in China s tax legislation may effect our profitability. We rely, to a certain extent, on the Chinese market Currency conversion in China and fluctuations in exchange rates pose a risk to our business. We may be adversely affected by changes in China s legal, political, economic, and social landscape. We must comply with numerous environmental laws and regulations, which could involve substantial costs. If we fail to comply, we may have to pay large penalties. China s Admission into the WTO may make it difficult for our products to compete effectively against overseas competitors. Future problems or strains in China s Trade Relations with the European Union and the United States may impact our sales and profitability. New legislation, including the Sarbanes-Oxley Act of 2002, may make it difficult for us to retain or attract officers and directors. While we believe we have adequate internal control over financial reporting, we are required to evaluate our internal controls under Section 404 of the Sarbanes-Oxley Act of 2002. Any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on the price of our shares of Common Stock. You may lose your entire investment in our shares. There is no trading market for our securities. Our officers and directors beneficially own approximately 59.28% of our issued and outstanding Common Stock, which may limit your ability to influence corporate matters. Broker-dealers may be discouraged from effecting transactions in our Common Shares because they are considered a penny stock and are subject to the penny stock rules. In the event that your investment in our shares is for the purpose of deriving dividend income or in expectation of an increase in market price of our shares from the declaration and payment of dividends, your investment will be compromised because we do not intend to pay dividends.

Full 10-K form ▸

1107564--5/3/2007--NEW_FIBER_CLOTH_TECHNOLOGY_INC