BAODING, China, 16 July 2010 -- /PRNewswire/ -- Orient Paper, Inc. (AMEX:ONP.a - News), a manufacturer and distributor of diversified paper products in Hebei, China, today announced that to provide the highest level of transparency to its shareholders, the company's board of directors has decided to retain Loeb & Loeb LLP, who plans to work with the company's audit committee to retain a Big Four audit firm, to conduct an independent investigation into issues raised by Muddy Waters, LLC.
"The audit committee of the board of directors of Orient Paper firmly believes that the allegations made by Muddy Waters are categorically false and without merit," stated Drew Bernstein, independent director and audit committee chair. "We have decided to take the exceptional step of retaining a top-tier international law firm and a Big Four audit firm to conduct an independent third-party investigation into these accusations in order to further reassure our investors of the integrity of our financial statements, business operations, customer and supplier relationships, and the use of proceeds from our capital markets activities."
Zhenyong Liu, Chief Executive Officer, added, "We are confident that this investigation will vindicate the company's financial disclosures to be accurate in all material respects."
Earlier in the month, Orient Paper provided an additional response to the allegations made by Muddy Waters LLC in their reports of 28 June 2010, and 01 July 2010. The full announcement and financial information is available at http://finance.yahoo.com/news/Orient-Paper-Further-Responds-prnews-4256390971.html?x=0&.v=92.
Orient Paper, Inc., through its wholly owned subsidiaries, Shengde Holdings, Inc., controls and operates Baoding Shengde Paper Co., Ltd., and Hebei Baoding Orient Paper Milling Co., Ltd (HBOP). Founded in 1996, HBOP is engaged in the production and distribution of products such as corrugating medium paper, offset printing paper, writing paper, and other paper and packaging-related products in China. The company uses recycled paper as its primary raw material. Baoding Shengde, founded in June 2009 and located in Baoding, is engaged in the production and distribution of digital photo paper. As one of the largest paper producers in Hebei Province, China, HBOP is strategically located in Baoding, a city near to Beijing, where the majority of publishing houses are based. Orient Paper is led by an experienced management team committed to diversifying the company's product offering and delivering tailored services to its customers. For more information, visit http://www.orientalpapercorporation.com.