Matt Berry

Disclosure: I have a short

position in CHBT
Every year Chinese companies must
submit their audited financial statements
to the local branches of the State
Administration for Industry and Commerce
(SAIC). CHBT submitted its 2009
statements to the Shanghai branch
(SHAIC):
SHAIC documents such as the one I present can
be obtained from credit report agencies in
China, one of which is “Inter-credit”
http://www.inter-credit.net/.

I encourage all interested parties to retrieve the

documents for independent confirmation.

Qingdao Inter-Credit Services Pte Co., Ltd.

2306 Parkson International Business Center,44-
60# Zhongshan Road, Qingdao, China 266001
Tel: 86 532 8202 2131
Fax: 86 532 82022810
info@inter-credit.net
 $70,000,000 Off
• Total revenue for 2009 was approximately
$530,000 USD, as claimed in documents retrieved
from SHAIC.

• For the same time period, China-biotics claimed

revenue of over $71,000,000 USD in its SEC
filings.

• This is a difference of more than $70,000,000

dollars.
Based upon the March 2010 10-K, CHBT’s only
revenue generating subsidiary in China for 2009
was Shanghai Shining Biotechnology Co. Ltd: 上海
双金生物科技有限公司 (Shanghai Shining).

We can even remove the issues of “consolidated

statements” and “other subsidiaries.” Sales for
Shanghai Shining’s star brand alone, as claimed in
the USA, exceeds total revenue claimed in
Shanghai Shining’s Chinese filing by a factor of 40
to 1.
“We launched Shining Essence in Shanghai in
April 2001, and it [sic] currently our best-selling
product. Sales of Shining Essence represent
approximately 29% of our total sales for the year
ended March 31, 2010, 40% for the year ended
March 31, 2009, ….” ~ March 2010 10-k
If so, 2009 revenue for Shining Essence
alone would be over $20,000,000 USD, not
even close to the $530,000 USD claimed in
China as total revenue.
Shanghai Shining seal
Currency is RMB
The same financials. This one has the auditor’s seal (QINGDAO ZHENQING
CERTIFIED PUBLIC ACCOUNTANTS, CO., LTD. SHANGHAI BRANCH).
Shanghai Shining’s official web page
Cropped official web page
(foreground) over cropped
financial statement
(background). Note that the
company named on the
statement has the same
Chinese characters as the
company named on the
Shanghai Shining official web
page (which the company
translates into SEC documents
as, “Shanghai Shining
Biotechnology Co. Ltd.“)
To the right, an
official introduction
to the 2009 annual
SHAIC filing and
below, a Google
translation of the
Chinese.
Official web sites for
the Shanghai Branch
of the State
Administration for
Industry and
Commerce (SHAIC): at
the top, in English; in
the middle, Chinese;
and at the bottom, in
blue, the introduction
to the 2009 SHAIC
filings.
Translation: “Income
Statement,” “Total Revenue,”
and “Previous Period.”
The foreground document is the 2009
statement that I received. The background
document is the 2008 statement that Chinese
Company Analyst received, translated, and
presented last year.
His 2008 current year figures match the 2009
previous year figures in the statement I
received.

“current year”
Currency Conversion through xe.com: revenue is only
$530,000 USD. If I use the exchange rate for
December 31, 2009, the amount is even less.
SHAIC statements covered January 1, 2009
to December 31, 2009. I take the same
numbers from the March 2010 10-k.
 $70,000,000 Off
• Total revenue for 2009 as claimed in China
was approximately $530,000 USD.

• For the same time period, China-Biotics

claimed revenue of over $71,000,000 USD in
its SEC filings

• This is a difference of more than $70,000,000

dollars.

China-Biotics, Inc. (CHBT)
CIK#: 0001271057 (see all company
filings)
Mailing Address NO 999 NINGQIAO
ROAD, JINQIAO EXPORT PRO PUDONG
SHANGHAI F4 201206
Business Address NO 999 NINGQIAO
ROAD, JINQIAO EXPORT PRO PUDONG
SHANGHAI F4 201206 86 21 5834 9748
Formerly: OTISH RESOURCES INC
(filings through 2006-01-05)
SIC: 1400 - MINING, QUARRYING OF
NONMETALLIC MINERALS (NO FUELS)
fState location: F4 | State of Inc.: DE |
Fiscal Year End: 0305
(Assistant Director Office No 4)
• SHAIC 2009 and 2008 official documents, made
available for download by myself, Matt Berry:
http://tinyurl.com/chbtShanghai
• SHAIC 2008 and 2007 official documents, with
analysis and English translation, made available
by Chinese Company Analyst
• Independent translation of the 2009 SHAIC
Income Statement:
http://tinyurl.com/chbtIncomeStatement
• Informal Youtube Video Presentation:
http://tinyurl.com/CHBTvideo
• Other links:
• Most CHBT Outlets Never Existed
• CHBT Store Verification Results Start Rolling In
• The China-Biotics Store Verification Website
• Chinese Company Analyst
• Citron Research