SOURCE: China Modern Agricultural Information Inc.

July 01, 2013 08:46 ET

Due Diligence Report From an Independent Third Party Demonstrates the Investigated Financial Data of China Modern Is True

HARBIN, CHINA--(Marketwired - Jul 1, 2013) - China Modern Agricultural Information Inc. ("China Modern" or "the Company") (OTCQB: CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk and the sale of organic fertilizer, today announced that, Nova Advisors Inc. ("Nova"), an unrelated independent third party, has issued its opinion on China Modern's financial condition attesting that China Modern's financial statements have complied with United States (the "US") generally accepted accounting principles ("US GAAP") and has no false statements on the financial reports after its investigation. The due diligence opinion is distributed at http://www.hljzhongxian.com/zx/eng_zx/index_news_detail.asp?id=102.

From April 20, 2013 to May 4, 2013, Nova has entrusted Beijing Jingze Law Firm ("Beijing Jingze") to respectively visit the offices and breeding sites of domestic variable interest entities of China Modern, including Heilongjiang Zhongxian Information Co., Ltd. ("Heilongjiang Zhongxian"), and its subsidiaries�Heilongjiang Xinhua Cattle Industry Co., Ltd. ("Xinhua Cattle")�and Shangzhi Yulong Co., Ltd ("Yulong Cattle"). Beijing Jingze and Nova also interviewed the local Administration for Industry and Commerce ("AIC") officials, and independently obtained the audited business financial reports prepared under Chinese accounting standard filed by the above-mentioned entities following the Chinese legal procedures.

Nova also entrusted Wei Wei & Co., LLP ("Wei Wei") to review and compare the Form 10-K and 10-Q that China Modern filed with SEC in 2012, and the financial statements that the Company filed with Administration for Industry and Commerce of PRC ("AIC")

Based on the independent review of the financial reports by Wei Wei and Nova, they reached the conclusion that there is no significant difference between the Form 10-K and 10-Q that China Modern filed with SEC and the financial statements that the Company filed with AIC in 2012 (except the adjustments under different accounting standards). The independent due diligence shows that China Modern has complied with the related regulations on the financial disclosure under US GAAP and all the financial documents investigated in this report are true and correct.

Mr. Youliang Wang, the CEO of the Company, commented: "The due diligence report issued by Nova fully supports that financial data disclosed by the Company to the public is in conformity with regulatory requirements for public companies issued by SEC. In the future, we will seize favorable opportunities from rapid development of Chinese dairy processing industry and continue to adopt active operation management measures, to achieve sustainable growth and higher profit for investors and shareholders.

About China Modern Agricultural Information Inc.

China Modern Agricultural Information, Inc. is a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information. For more information please visit http://www.hljzhongxian.com/zx/eng_zx.

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