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(May 11, 2012, Beijing, China) – the perfect world limited liability company (NASDAQ: PWRD) (hereinafter referred to as the “Perfect World” or the “Company”), headquartered in China’s leading network game developer and operator, today announced its Audit Committee’s internal findings. January 10, 2012, Perfect World announced that its independent audit committee will investigate anonymous allegations of some Chinese website about January 8, 2012 Perfect World (hereinafter referred to as “anonymous allegations”), and to hire independent legal consultants to assist in the investigation.
the
Audit Committee has hired GreenbergTraurig, LLP, (hereinafter referred to as “Greenberg Traurig,”) law firm anonymous allegations of an independent investigation. Greenberg Traurig, the corresponding consultation with the independent forensic accountants. Greenberg Traurig had no perfect world, and report its findings directly to the Audit Committee.
main findings
Several key allegations against anonymous allegations, the survey results are as follows:
Chi Chu
perfect world paid advertising services and purchase of Chi Chu equity did not higher than a reasonable price.
Mr. Chi Yufeng, CEO of the
Although the company in 2008 to 2010 Chi Chu Network Technology Co., Ltd. (hereinafter referred to as “wisdom beads”) of shareholders provides the interest-free personal loans to support the intellectual beads, so that Chi Chu in a perfect world to invest in a perfect world related parties, but the Board did not find any evidence that a perfect world any service fees paid to the Chi Chu and purchase of the Chi beads 20% of the equity price is higher than a reasonable price.
no evidence that family members of the pool, Mr. unfair from the office building renovation project in the perfect world or benefit in any other way.
Audit Committee did not find any evidence that the pool, family members and office renovation works contractors selected in a perfect world there is no relationship. In addition, the approval process of a perfect world, the selection of contractors is reasonable, and includes an independent third party assessment.
stripped of
· film and television business is normally a reasonable and fair price.
Mr.
pool has been properly disclosed its acquisition of the intent of the film and television business, and peeling of the film and television business in accordance with the requirements of the Special Committee composed of all independent directors of the Board of Directors and the audit and approval of the Special Committee. Sale price to determine fair and reasonable manner, a reasonable assessment and issued a fairness opinion by a reputable third-party professional company.
no evidence that the pool Mr. unfair tax avoidance.
review of tax documents and bank statements, based on the pool, Mr., the Board has confirmed the sale of a perfect world stock trading in the pool Mr. its disclosure and has paid all applicable taxes.
Audit Committee believes that the survey has employed a team of independent professionals to review relevant documents and access to employees and third parties of more than perfect world, the survey is extensive, thorough and complete.
recommended
despite the anonymous allegations have been largely proved to be incorrect, the Audit Committee believe that the perfect world of corporate governance processes to be improved. Accordingly, the Board adopted the following measures to perfect the world’s Board of Directors recommends that companies:
perfect world the next time the Form 20-F form of reporting companies’ annual reports should be complete disclosure involving Chi beads and/or its shareholders, the perfect world and/or the pool, Mr. transaction.
· disinterested members of the Board shall formally waive any actual or potential conflict of interest with Chi Chu transaction.
perfect world should consider hiring a reputable Sarbanes – Oxley consultant, the company involved to identify, assess and monitor the implementation of related internal control policies and procedures related party transactions are reviewed, and consider responsible for providing the necessary training and related internal control and reporting functions of the department’s employees.
Board of Directors has accepted the recommendation of the Audit Committee.
latest development
, according to the company are aware, Li Hong v. Perfect World Co., Ltd., et al. (Case No. 12-Cv-3741) civil cases submitted to the May 10, 2012 Federal District Court , New York Southern District Court. The plaintiffs allege that the Company and Mr. Pool not sold to the disclosure requirements of a transaction carried out by the pool controlled by Mr. Chi Chu transactions and the above film and television business in violation of U.S. federal securities laws. The plaintiff to the court for damages and prohibit the behavior of the complaint. Litigation documents has not been formally served the company or the pool, Mr.. Proceedings is the official launch of the perfect world every effort to safeguard the interests of the company in that case.
Perfect World Co., Ltd. Company Profile (http://www.pwrd.com)
Perfect World Co., Ltd. (NASDAQ: PWRD) is a China-based leading online game developer and operator. Perfect World is mainly based on self-developed game engine and game development platform for developing online games. Perfect world, a strong technical ability and creative game design capabilities, combined with deep understanding and extensive experience in the gaming market, so the company can continue to rapidly introduce the widely popular game in order to meet the changing needs of users and market development. Perfect world is self-developed online games includes massively multiplayer online role-playing game: “Perfect World”, “Wulin”, “Perfect World International”, “Zhu Xian”, “Red Cliff”, “Pocket Journey”, “God the legend of a ghost “,” Fantasy Zhu Xian “,” Forsaken World “,” Dragon Sword “, the” ghost world “and” Heavenly Sword and Dragon Sabre “, an online casual game” Hot Dance Party “, as well as several section web games and social games. Perfect world most of its revenue from China’s domestic market, but also through its subsidiary operations in North America, Europe and Japan games. Perfect World will be game licensed to leading game operators in Asia, Latin America, Australia, New Zealand and the Russian Federation and other Russian regions, countries and regions. Perfect World will continue to develop new business models in an effort to maximize shareholder value.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be some of the wording to identify, for example, “” expects, “” expect, “” future, “” intends, “” plans, “” believes, “” estimates “and similar statements. Such statements involve risks and uncertainties of could cause actual results and forward-looking statements to generate huge difference. Potential risks and uncertainties include, but are not limited to, limited operating history in the perfect world, its development and operation of commercial success of new games, online games market growth in China and elsewhere in their games and game items continued market acceptance of its ability to protect its own intellectual property rights, the ability to respond to competitive pressures, the ability to maintain effective financial reporting internal control system, the regulatory environment changes and the Chinese and/or other parts of the economic slowdown. Further information on these and other risks include In a perfect world with the U.S. Securities and Exchange Commission filings (including annual 20-F). Unless applicable law requires otherwise, the perfect world does not assume the obligation to update any forward-looking statements due to any new information, future events or other reasons.
stocks mentioned in this article: $ Perfect World (PWRD) $
