1201135--3/30/2010--CREDIT_ONE_FINANCIAL

related topics

{stock, price, share}

{operation, international, foreign}

{acquisition, growth, future}

{cost, regulation, environmental}

{customer, product, revenue}

{stock, price, operating}

{interest, director, officer}

{condition, economic, financial}

{provision, law, control}

{control, financial, internal}

{personnel, key, retain}

{competitive, industry, competition}

Risks Related to the Company s Business We have not been profitable to date, and we may never be profitable. We might need additional capital to meet our business requirements in the future, which may not be available, thus limiting our growth prospects. If we raise additional capital, such capital raisings could dilute current shareholders ownership interests. An inability to obtain the raw materials could result in lost revenues and reduced margins and damage relationships with customers. Our future operating results may be affected by fluctuations in raw material prices. We may not be able to pass on cost increases to customers. We might not be able to successfully overcome growth obstacles and establish our products in any additional markets The demand for our products is affected by industrial and economic conditions. Downturns in the economy may reduce demand for our products and our revenues could decline. A material disruption at our processing and packaging facility could prevent us from meeting customer demand, reduce our sales, and/or negatively affect our net income. We face strong competition in our markets. We are subject to environmental regulation and other potential environmental liabilities. Our operating results may fluctuate significantly, which make our future results difficult to predict and could cause our operating results to fall below expectations. Loss of key management personnel or our inability to attract and retain new qualified personnel could hurt our ability to operate and grow successfully. Risks Related to Doing Business in China Our business operations may be adversely affected by the changing political and economic policies in China. Our assets, officers and directors are located outside of the U.S. It is difficult to effect service of process and enforcement of legal judgments upon us and our officers and directors. Government control of currency conversion may affect our ability to pay dividends declared, if any, in foreign currencies. Fluctuations in the exchange rate between the Chinese currency and the United States dollar may bring down our operating income. Risks Related to the Company s Securities Management exercises significant control over matters requiring shareholder approval which may result in the delay or prevention of a change in our control. Our stock price has been extremely volatile and may continue to fluctuate significantly, which may make it more difficult for you to resell shares when you want at prices you find attractive. Our common stock is subject to the penny stock restrictions which will create a lack of liquidity and make trading difficult or impossible. We may never pay any dividends to shareholders.

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1201135--3/30/2010--CREDIT_ONE_FINANCIAL_INC