1429426--3/31/2010--Pacific_Bepure_Industry

related topics

{customer, product, revenue}

{operation, international, foreign}

{regulation, change, law}

{debt, indebtedness, cash}

{property, intellectual, protect}

{stock, price, share}

{condition, economic, financial}

{control, financial, internal}

{tax, income, asset}

{product, market, service}

{stock, price, operating}

{interest, director, officer}

{personnel, key, retain}

{cost, operation, labor}

{product, candidate, development}

{acquisition, growth, future}

{competitive, industry, competition}

{gas, price, oil}

{capital, credit, financial}

OUR BAOPIAO BRANDED PRODUCTS HAVE A LIMITED HISTORY IN THE BRANDED FOOTWEAR INDUSTRY AND FAILURE TO EFFECTIVELY PROMOTE OR MAINTAIN OUR BAOPIAO BRAND MAY ADVERSELY AFFECT OUR PERFORMANCE AND SALES. WE RELY ON A SMALL NUMBER OF SUPPLIERS FOR A LARGE PORTION OF OUR RAW MATERIAL AND PRODUCT SUPPLY AND ANY INTERRUPTION OF SUPPLY FROM THESE SUPPLIERS WOULD AFFECT OUR RESULTS OF OPERATIONS. WE MAINLY RELY ON DISTRIBUTORS FOR THE SALES OF OUR PRODUCTS AND ANY FAILURE BY US TO MAINTAIN GOOD RELATIONSHIPS WITH THEM MAY ADVERSELY AFFECT OUR BUSINESS. A DISTRIBUTORS' FAILURE TO PERFORM ITS OBLIGATIONS UNDER ITS DISTRIBUTORSHIP AGREEMENT WITH US COULD MATERIALLY AND ADVERSELY AFFECT OUR BUSINESS IN A GEOGRAPHIC AREA IN THE PRC. BECAUSE WE DEPEND ON THE THIRD PARTY TO MARKET OUR PRODUCTS IN THE INTERNATIONAL MARKET, ANY PROBLEMS ENCOUNTERED BY SUCH PARTY COULD AFFECT OUR SALES. OUR NEW SALES MODELS HAVE A LIMITED OPERATING HISTORY. OUR SALES VOLUME AND OPERATING RESULTS ARE SENSITIVE TO SEASONALITY. WE MAY BE UNABLE TO MANAGE FUTURE RAPID GROWTH. 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 ARE SUBJECT TO CREDIT RISK IN RESPECT OF ACCOUNT RECEIVABLES. WE FACE INCREASING COMPETITION FROM BOTH DOMESTIC AND FOREIGN COMPANIES, WHICH MAY AFFECT OUR MARKET SHARE AND PROFIT MARGINS. OUR BUSINESS COULD BE ADVERSELY AFFECTED BY INTELLECTUAL PROPERTY RIGHTS DISPUTES OR PROCEEDINGS WITH THIRD PARTIES FOR POSSIBLE INFRINGEMENT OF THEIR INTELLECTUAL PROPERTY RIGHTS. OUR BUSINESS COULD BE MATERIALLY AND ADVERSELY AFFECTED BY CLAIMS OF THIRD PARTIES FOR POSSIBLE INFRINGEMENT OF THEIR INTELLECTUAL PROPERTY RIGHTS. OUR BORROWING LEVELS AND SIGNIFICANT INTEREST PAYMENT OBLIGATIONS COULD LIMIT THE FUNDS WE HAVE AVAILABLE FOR VARIOUS BUSINESS PURPOSES. THE REGISTERED CAPITAL OF BAOPIAO SHOES HAS NOT YET BEEN FULLY CONTRIBUTED. 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. INCREASE IN LABOR COSTS IN CHINA MAY ADVERSELY AFFECT OUR BUSINESS AND OUR PROFITABILITY. WE MAY FAIL TO ANTICIPATE OR RESPOND TO CHANGES IN CONSUMER TASTES AND FASHION TRENDS IN THE FOOTWEAR INDUSTRY IN A TIMELY MANNER. WE ARE A HOLDING COMPANY THAT HEAVILY RELIES ON DIVIDENDS AND OTHER DISTRIBUTIONS PAID BY OUR SUBSIDIARIES TO FUND FUTURE CASH AND FINANCING REQUIREMENTS. ALL OF OUR ASSETS ARE LOCATED IN THE PRC AND ANY ADVERSE CHANGES IN PRC ECONOMIC AND POLITICAL POLICIES COULD HAVE A MATERIAL ADVERSE EFFECT ON THE OVERALL ECONOMIC GROWTH OF CHINA, WHICH COULD REDUCE THE DEMAND FOR OUR PRODUCTS AND HARM OUR RESULTS OF OPERATIONS. A DOWNTURN IN THE ECONOMY OF CHINA MAY SLOW OUR GROWTH AND PROFITABILITY. OUR BUSINESS IS LARGELY SUBJECT TO THE UNCERTAIN LEGAL ENVIRONMENT IN CHINA AND LEGAL PROTECTION COULD BE LIMITED TO YOU AND US. IT IS DIFFICULT TO ACQUIRE JURISDICTION AND ENFORCE LIABILITIES AGAINST OUR OFFICERS, DIRECTORS AND ASSETS BASED IN CHINA. PRICE INFLATION IN CHINA COULD NEGATIVELY AFFECT OUR COMPETITIVE ADVANTAGES AND OUR RESULTS OF OPERATIONS. RESTRICTIONS ON CURRENCY EXCHANGE MAY LIMIT OUR ABILITY TO RECEIVE AND USE OUR REVENUES EFFECTIVELY AND LIMIT THE ABILITY OF OUR CHINESE SUBSIDIARIES TO OBTAIN FINANCING. FAILURE TO COMPLY WITH CHINESE REGISTRATION REQUIREMENTS RELATING TO THE ESTABLISHMENT OF OFFSHORE SPECIAL PURPOSE COMPANIES BY THE PRC RESIDENT SHAREHOLDER MAY ADVERSELY AFFECT US. RECENT PRC REGULATIONS RELATING TO CROSS-BORDER MERGERS AND ACQUISITIONS MAY IMPACT US. WE ARE SUBJECT TO RISKS PRESENTED BY THE FOREIGN EXCHANGE RATE BETWEEN U.S. 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. CHINESE CORPORATE INCOME TAX LAW COULD ADVERSELY AFFECT OUR BUSINESS AND OUR NET INCOME. OUR COMMON STOCK IS QUOTED ON THE OTC BULLETIN BOARD WHICH MAY HAVE AN UNFAVORABLE IMPACT ON OUR STOCK PRICE AND LIQUIDITY. OUR PRINCIPAL STOCKHOLDER HAS THE POWER TO CONTROL OUR BUSINESS. WE ARE SUBJECT TO PENNY STOCK REGULATIONS AND RESTRICTIONS. STANDARDS FOR COMPLIANCE WITH SECTION 404 OF THE SARBANES-OXLEY ACT OF 2002 ARE UNCERTAIN, AND IF WE FAIL TO COMPLY IN A TIMELY MANNER, OUR BUSINESS COULD BE HARMED AND OUR STOCK PRICE COULD DECLINE.

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1429426--3/31/2010--Pacific_Bepure_Industry_Inc