1117057--4/13/2009--American_Lorain

related topics

{operation, international, foreign}

{customer, product, revenue}

{acquisition, growth, future}

{stock, price, share}

{cost, regulation, environmental}

{regulation, change, law}

{product, liability, claim}

{capital, credit, financial}

{condition, economic, financial}

{stock, price, operating}

{tax, income, asset}

{provision, law, control}

{control, financial, internal}

{property, intellectual, protect}

{personnel, key, retain}

{interest, director, officer}

We may not be able to obtain an adequate supply of high quality raw materials. The prices that we have paid for our raw materials recently have experienced significant fluctuation. If these price fluctuations continue, our profit margins may be materially adversely affected. Our sales and reputation may be affected by product liability claims, litigation or, product recalls in relation to our products. We may be unable to manage future rapid growth. Our expansion strategy may not prove successful and could adversely affect our existing business. The acquisition of other businesses could pose risks to our profitability. We are subject to risks of doing business internationally. If the international market does not grow as we expect, our business and financial condition may be adversely affected. A significant amount of our revenues is dependent on a limited number of customers and the loss of any one of our major customers could materially and adversely affect our growth and our revenues. We rely primarily on distributors to sell our products. Any delays in delivery or poor handling by our distributors or third-party transport operators may affect our sales and damage our reputation. Failure of the market to accept our new products, or failure to obtain regulatory approval for our new products, may cause us to lose our competitive position in the food industry. We are dependent on certain key personnel and loss of these key personnel could have a material adverse effect on our research and development, operations and revenue. We face increasing competition from domestic and foreign companies. An increase in the cost of energy could affect our profitability. Our products are subject to counterfeiting or imitation, which could impact our reputation. We rely on an outside contractor to provide a majority of our labor. We are subject to extensive regulations by the Chinese government. Our failure to comply with PRC environmental laws may require us to incur significant costs. Our failure to comply with PRC hygiene laws may require us to incur significant costs. Our operations are cash intensive, and our business could be adversely affected if we fail to maintain sufficient levels of working capital. The current economic and financial crisis may have a material adverse effect on our results. We are subject to credit risk in respect of account receivables. The discontinuation of any preferential tax treatment or other incentives currently available to us in the PRC could materially and adversely affect our business, financial condition and results of operations. We may enter into additional financing agreements which may have a dilutive effect to our earnings per share and the rights of certain stockholders. We may be unable to raise additional capital. We may be exposed to potential risks relating to our internal control over financial reporting and our ability to have such controls attested to by our independent auditors. Risks Related To Doing Business In China Changes in China s political or economic situation could harm us and our operating results. The structure of the Chinese economy may inhibit our ability to expand our business. Our business is largely subject to the uncertain legal environment in China. It may be difficult for our stockholders to affect service of process against our subsidiaries or our officers and directors. Inflation in China may inhibit our ability to conduct business profitably in China. Restrictions on currency exchange may limit our ability to receive and use our revenues effectively. Failure to comply with PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may have negative effects on our company. Our financial condition is affected by the foreign exchange rate between the U.S. dollar and the Renminbi. Risks Related To the Market For Our Stock Certain of our stockholders have the ability to delay or prevent adoption of important business decisions based on their ownership of a significant percentage of our outstanding voting securities. Our common stock is quoted on the OTC Bulletin Board, which may have an unfavorable impact on our stock price and liquidity. We are subject to penny stock regulations and restrictions. Certain provisions of our Certificate of Incorporation may make it more difficult for a third party to effect a change- in-control.

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1117057--4/13/2009--American_Lorain_CORP