DGAP-News: KINGHERO AG: dismissal of the Chairman

KINGHERO AG / Key word(s): Miscellaneous 30.10.2013 19:59 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Munich, 30 October 2013. At today's meeting, the Supervisory Board of KINGHERO AG has decided to dismiss the Chairman of the Management Board, Mr. Zhang Yu, with immediate effect. Therefore, Dr. Harald Zender and Mrs He Xiuming will be representing KINGHERO AG as directors. The reasons for the dismissal are amongst others, the delay of the audit of the individual and group financial statement 2012 as well as a lack of evidence of the financial and liquidity situation of the individual entities in China. The auditor of KINGHERO AG, Warth & Klein Grant Thornton AG Wirtschaftsprüfungsgesellschaft ('Grant Thornton') has informed KINGHERO that until today the operating entities in China have not provided financial statements for 2012 which are suitable to be audited. Furthermore, Grant Thornton remarked that the revenues and costs of goods sold disclosed in the financial statements of the Chinese subsidiaries could not be verified and do not appear plausible within the framework of audit procedures. The same applies to the disclosed cash and cash equivalents and their availability. In addition, requested evidence on assets, long-term prepayments and expenses for renovations of the Chinese subsidiaries have not been provided. Grant Thornton points out that if KINGHERO AG does not eliminate the audit constrains in the near future, the audit will be concluded with an adverse opinion. The Management Board member Dr. Zender and Supervisory Board have endeavored in vain to gain a comprehensive insight into the liquidity situation of the operating entities in China. This results in serious doubts regarding the liquidity of KINGHERO AG. Dr. Zender and the Supervisory Board will determine promptly further measures regarding the availability of the financial resources and inform the capital market. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: For further information please contact: Kirchhoff Consult AG Dr. Kay Baden Phone: +49 (0)40 60 91 86 0 baden@kirchhoff.de KINGHERO AG Gustav-Heinemann-Ring 44 D-81739 Munich Phone: +49(0)89 6734 6884 Fax: +49(0)89 6734 6887 â?? Disclaimer concerning prognoses This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect KINGHERO's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of KINGHERO's forward-looking statements are proving to be incorrect, KINGHERO's actual results may be materially different from those expressed or implied by such forward-looking statements. KINGHERO does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. 30.10.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: KINGHERO AG Gustav-Heinemann-Ring 44 81739 München Germany Phone: 089 - 6734 6884 Fax: 089 - 6734 6887 E-mail: contact@kinghero.de Internet: www.kinghero.de ISIN: DE000A0XFMW8 WKN: A0XFMW Listed: Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart; Frankfurt in Open Market (Entry Standard) End of Announcement DGAP News-Service ---------------------------------------------------------------------------