Providing investors with the
tools to make informed decisions.
Providing investors with the
tools to make informed decisions.
 Tracking 1258 U.S. listed China Stocks and Counting...
 Tracking 3135 U.S. Stocks and Counting...
Created: 01-Jan-2008

Keying in on fundamental differences between the SEC & SAIC

  • Thursday, October 16, 2014, 09:30 AMmore... 
    Orasure Technologies, Inc. (NASDAQ:OSUR) - Target raised at Canaccord Genuity to $12.00 on a report that the company is in talks with government to develop Ebola test.   News that OSUR was approached by the U.S. government to develop an Ebola test was first reported through the internet on 10/14/2014 but not through a major newswire.  This morning, Reuters has picked up this development.  
     
  • Thursday, October 16, 2014, 09:30 AMmore... 
    Ibio (NYSE AMEX:IBIO) issues a press release attempting to clarify its role in fighting Ebola. Yet, it is still unclear to our team if Caliber is using IBIO technology in its Ebola drug development initiatives. 
  • Thursday, October 16, 2014, 09:30 AM 
    Vimicro Intl (NASDAQ:VIMC) announced $39.8 million contract win in Taiyuan City to provide SVAC-compliant video surveillance cameras and system.
  • Thursday, October 16, 2014, 09:30 AM 
    China Automotive Systems (NASDAQ:CAAS) wins multi-year contract with Chrysler. 
  • Thursday, October 16, 2014, 09:30 AMmore... 
    GeoBargain Repro Med Systems Inc (PINK:REPR) reported Q2 2014 results, with increased y-o-y 24.7% increase in revenue to $2.5 million, more than doubled net profit to $203,000, and improved gross margin from 59.8% to 65.3%. We maintain our optimistic view and anticipate continued strong growth for REPR’s flagship products FREEDOM60 and related needle sets.
  • Wednesday, October 15, 2014, 09:30 AMmore... 
    Kandi Technolgies Group (NASDAQ:KNDI): KNDI’s key market, Hangzhou City just announced its new subsidy plan.  Based on this plan, EV’s customer can apply governmental subsidy up to RMB 30,000 per vehicle.
  • Wednesday, October 15, 2014, 09:30 AMmore... 
    Natural Health Trends (PINK:NHTC) announced Q3 2014 revenue estimates of $31.8 million vs $14.2 million in the prior year and $34.2 million in Q2 2014.
  • Wednesday, October 15, 2014, 09:30 AMmore... 
    Montage Tech Group Ltd (NASDAQ:MONT) - After allegations from short sellers alleging financial misrepresentations, the audit committee of the board of directors claim there were no changes to the Company’s previously reported financial results. 
  • Wednesday, October 15, 2014, 09:30 AMmore... 
    Breeze-Eastern (NYSE AMEX:BZC) - VN Capital Fund increased stake in BZC to 12.4% from 9%.  VN Capital believes shares are significantly undervalued.
  • Tuesday, October 14, 2014, 09:30 AMmore... 
    China Finance Online (NASDAQ:JRJC) announced that the company has updated its mobile application based on the previously launched web-based securities trading platform Securities Master, or Zhengquantong.
     
  • Tuesday, October 14, 2014, 09:30 AM 
    Chinanet Online Holdings (NASDAQ:CNET) announced zero down payment loans offering.
  • Tuesday, October 14, 2014, 09:30 AMmore... 
    Lentuo Intl (NYSE:LAS) announced update on new BMW dealership.  Expect the dealership to open during the third quarter of 2015,  and is expected to sell 250 new premium cars and contribute about RMB125 million in revenue in 2015.
  • Tuesday, October 14, 2014, 09:30 AMmore... 
    We will look to short shares of Ibio (NYSE AMEX:IBIO). Yesterday, a short thesis article was published on Seeking Alpha. We agree with the author's sentiment and will likely look to short.
  • Monday, October 13, 2014, 09:30 AM 
    Success Holding Group (OTC BB:SHGT) - Begun tracking SHGT to see if investors will become excited about managements pre tax EPS guidance of $0.40.
  • Monday, October 13, 2014, 09:30 AMmore... 
    Resort Savers (OTC BB:RSSV) - Tracking because it will soon complete a reverse merger transaction. On August 1st 2014 three of the company’s executives sold their shares to 3 Chinese entities. 
  • Monday, October 13, 2014, 09:30 AM 
    Utstarcom Holdings Corp Ordina (NASDAQ:UTSI) announced it expects Q3 2014 revenue to exceed original expectations.
  • Monday, October 13, 2014, 09:30 AMmore... 
    GeoBargain on the radar Supercom Ltd Ordinary Shares (NASDAQ:SPCB) announced that the company starts the implementation of a high-scale National Security e-Government contract for a country with a fast-growing economy.
  • Monday, October 13, 2014, 09:30 AM 
    3 Pea Intl Inc (OTC BB:TPNL) - Will begin tracking due to management forecasting record revenue and net income for 2014.
  • Monday, October 13, 2014, 09:30 AMmore... 
    Ibio (NYSE AMEX:IBIO) - As expected, the hype surrounding the Ebola and Enterorvirus outbreaks in the U.S. will inevitably lead to aggressive share price moves of undeserving stocks. We think IBIO could  be one of these cases, once the hype subsides. Shares of the company have risen 480% to $2.50 (current pre-market price)  since August 1st 2014 when a promotional email was distributed. We are attempting to verify some of the company’s claims.  Please check message board shortly for further update. Short thesis article at Seeking Alpha claiming IBIO is not partner of ZMAPP Ebola drug. 
  • Friday, October 10, 2014, 09:30 AMmore... 
    China Digital Tv Holdings (NYSE:STV) - Yesterday we stated that STV provided further update on its asset restructuring. Tongda Venture has agreed to acquire the 100% equity interest in Beijing Super TV Co., Ltd., a wholly-owned subsidiary of Golden Benefit, for a consideration that has been preliminarily determined to be RMB3.2 billion (RMB 800 million in shares of Tongda Venture and RMB2.4 billion in cash).  The Tongda Venture which STV holds for over 17% after the restructuring started trading (halted before) in the China Mainland A share stock market and went up 10% yesterday (the China A share market has a 10% upside or downside limit, so that's the highest up each day).
more GeoAlerts...
Comming Soon
Comming Soon
Comming Soon
 
Board Tips & Tricks: (View All)
  • After you subscribe to a Board, use the boards drop down menu at top of page to see it listed in your Favorite Boards screen.
  • You can click the number in parentheses next to a username in order to see all GeoInvesting messages posts by that user.
  • In message lists, use the orange arrow at the right to expand the messages for quick reading.
  • You can direct your posts towards certain users in the "Send as Alert to User(s)" field when composing a post. The message will be forwarded to their GEO inbox and real email.
  • Categorize your posts!!! There are 10 different kinds of post types. We will all then be able to filter all message lists by post type.
  • Search the boards by stock symbol, user name, or just in general. You will be given those options when entering text in the search field.
  • Place a $ in front of symbols in your posts. The stock name and exchange will then be included. (example: $CCME) This is also helpful when tweeting the message since aggregators such as stock twits will pick it up.
Zon4Ever 25-Aug-2010 10:07 AM
Post Type: Public Public
Annual Inspection and Income Tax Filing Process in China - Opinion Letter (#3587) 25-Aug-2010 10:07 AM
As part the due diligence process of understanding quality issues in the China Hybrid space, the GeoTeam retained the independent services of an attorney familiar with PRC law.  We asked him to contact different agencies in China, including the SAIC as well as other attorneys before writing the following letter to us.

Re: Annual Inspection and Annual Income Tax Filing Process in China

In China, there is an annual inspection done by the Statement Administration for Industry and Commerce (“SAIC”) for every registered company.  For the companies owned by Chinese individuals and/or entities (Variable Interest Equity ownership structures), except listed companies and/or some special companies, the companies need to file their financial reports to AIC for accomplishing the annual inspection and the audit of the financial statement is not required.  

For the annual income tax filing in the taxation bureau, which is in the beginning of the next financial year, if a company owned by Chinese individuals and/or entities has a big loss (negative net income) in the last financial year and/or claim the rights to make up for losses in the next several financial years, the financial statement with a big loss (negative net income) shall be audited for the purpose of taxation by an independent CPA firm.  If a company only has a small loss (usually the line between big loss and small loss shall be RMB 100,000 and/or RMB 50,000 and the number of the line depends on the different requirements of different taxation bureaus) and does not claim the rights to make up for losses in the next several financial years, the financial statement is not required to be audited.  Accordingly, this company does not pay any income tax.  If a company owned by Chinese individual and/or entities has a positive net income, the company shall pay the income tax based on the standard income tax rate, which is twenty-five percent (25%) of the net income in the last financial year.  Such a financial statement with a positive net income is not required to be audited.

For the foreign invested companies, including Sino-foreign joint venture enterprises and wholly foreign owned enterprises, the annual financial report submitted to the AIC is required to be audited by an independent CPA firmThe same report will also be filed to the taxation bureau and several other government authorizations, such as State Administration for Foreign Exchange, for the issues of foreign exchange administration and others.  If a company has a negative income in the audited financial report, the company does not pay income tax and the company may claim the rights to make up for losses in the next several financial years.  If the companies have positive net incomes, the companies shall pay income tax based on the standard income tax rate, which is 25% of the net income in the last financial year.  

In the real life, for the purpose of avoiding income tax, some companies in China claim that there is a loss (negative net income) in the last financial year.  For the companies owned by Chinese individuals and/or entities, they may claim a small loss (for example, a loss lower than RMB 50,000 and/or RMB 100,000) but not claim to make up for losses in the next several financial years. Therefore, the financial report in the last financial year is not required to be audited by an independent CPA firms.  For the foreign invested enterprises, they may purchase a forged audited financial report which states a loss from a small CPA firm to avoid the possible income tax.

Chinese government controls the possible taxation fraud through the taxation inspection which conducts by the taxation bureau.  For conducting the taxation inspection, the taxation bureau may inspect and review the financial statement and materials of the companies in details from time to time.  However, as the taxation bureau only has limited number of officers and resources.  It is impossible for the taxation bureau to inspect the financial statements and materials of all companies in each financial year.  At the same time, the AIC does not review the financial statements and materials of a company, except in some administrative investigation process.  

If a company with a forged financial report (whether it is audited or not) is chosen for taxation inspection and the fraud is found out by the taxation bureau, this company may be fined and be required to make up the tax which the company shall pay.  The responsible people within the company may also bear the criminal and/or administrative liability. However, to one specific company, as the chance for the taxation inspection is very low, the fine is also comparatively low and criminal liability is not always applied in the real life, some companies dare to take this risk to make a forged financial report for avoiding the income tax.  At the same time, there are also seldom cases that CPA firms which provided forged audit reports are fined and/or bear criminal and/or administrative liability in these situations.
 
In practice, for the taxation purpose, each company has a specific taxation officer which is the taxation officer to cover the district which the company lies in.  The officer in the company usually an accountant, directly deals with the taxation officer to file the taxation monthly through on line system and/or personally.  At the beginning of the next financial year, the annual income tax filing of the last financial year will also be reported to the same taxation officer.  After each monthly (annually for the income tax) payment of tax (VAT, business tax, personal income tax and company income tax, etc.), the taxation officer will issue a taxation certificate to the accountant to state the amount and types of tax paid on behalf of the taxation bureau.  This taxation information (including the amount of the tax) is not open to any third party except the court, prosecutor and/or police for the reasons of litigation and/or criminal/administrative investigation.  

NOTE: This opinion letter is wholly based on the current effective laws and regulations of P.R. China, and the real annual inspection and income tax filing practice in China.  In different cities and/or provinces of P.R. China, the practice of annual inspection and income tax filing might be slightly different from this opinion letter.  Furthermore, this opinion letter is only for Geoinvesting LLC to understand the process of annual inspection and income tax filing in P.R. China.  This opinion letter shall not be regarded as a formal legal opinion letter based on the laws and regulations of P.R. China.


You agree that you shall not republish or redistribute in any medium any information on the GeoInvesting website without our express written authorization. You acknowledge that GeoInvesting is not registered as an exchange, broker-dealer or investment advisor under any federal or state securities laws, and that GeoInvesting has not provided you with any individualized investment advice or information. Nothing in the website should be construed to be an offer or sale of any security. You should consult your financial advisor before making any investment decision or engaging in any securities transaction as investing in any securities mentioned in the website may or may not be suitable to you or for your particular circumstances.
   Reply  |  Private Reply
Related Stocks
Post Type 
    
View As :  Threaded |  Simple