After the close today Harbin Electric (HRBN), a Chinese reverse-merger company that has become a battleground between short-sellers and various touts and promoters, issued a flurry of filings, but only one press release. The press release trumpets the filing of a definitive proxy statement relating to the attempted acquisition of the company by Harbin’s CEO Tian Fu Yang, and gang at Abax (yes, the same moronic Abax that has its own founder on the Board of Directors of halted reverse merger scam China Natural Gas (CHNG)):
HARBIN, China, Sept. 29, 2011 /PRNewswire-Asia-FirstCall/ — Harbin Electric, Inc. (NASDAQ: HRBN), a leading developer and manufacturer of a wide array of electric motors in the People’s Republic of China, announced today that it has filed definitive proxy materials with the Securities and Exchange Commission in connection with the Company’s merger agreement with Tech Full Electric Company Limited (“Tech Full Electric”). The mailing of such proxy materials to shareholders is expected to begin immediately.
What the press release fails to mention is that Harbin also tried to sneak through an amended version of their annual report for 2010. The new filing, a 10K/A is filled with choice nuggets. Here’s one from a brand new paragraph under “Risk Factors” that did not appear in the original version, we find that Harbin is getting ready to,
if when the hammer comes down, throw a certain US-based employee under the bus:
We rely on the services of our SEC reporting manager to assist us in researching and resolving certain US GAAP accounting issues and preparing our consolidated financial statements.
We employ an SEC Reporting Manager who is a Certified Public Accountant in the United States to assist our internal accounting and finance personnel in resolving complex US GAAP accounting issues. From time to time we rely on her to conduct research on complex accounting issues relating to US GAAP and to provide advice to the Company as to how to comply with US GAAP. Although our SEC Reporting Manager is not involved in our day to day operations or the management of our accounting functions, she also assists us in our consolidation process and in preparing our consolidated financial statements and footnotes. If we were to lose the services of our SEC Reporting Manager, we would attempt to hire another similarly qualified person to replace her. The loss of the services of our SEC Reporting Manager, in the absence of a qualified replacement, could adversely impact our ability to accurately prepare our consolidated financial statements on a timely basis.
Is it so outlandish to think that this is a convenient excuse for Harbin executives? “Oh, those SEC filings, that wasn’t us, that was our ‘Reporting Manager’”
More tidbits to come from the most important Harbin filing issued all year.