ZIWO (Lim&Tan)

S$0.22-ZIWO.SI

􀁺 Ziwo, an S-Chip said that their auditor Foo Kon Tan Grant Thornton LLP had on 1 July 2011 given notice of their resignation.

􀁺 In their resignation letter, the auditor said that they do not have sufficient resources to continue to service the company and are not aware of any professional reasons why any new auditor should not accept appointment as auditor of the company.

􀁺 The board of directors confirm that there were no disagreement with their auditor on accounting treatment within the last 12 months up to the date of this announcement and are not aware of any circumstances connected with the change of auditors that should be brought to the attention of the shareholders of the company.

􀁺 The company is currently in the process of seeking for a suitable replacement and the resignation will take place upon the appointment of the new auditor (when approved by the shareholders of the company in an EGM to be held later).

􀁺 Notwithstanding the above reasons given for the resignation of the company’s auditors and the board’s re-affirmation, we believe the market would be concerned about the late disclosure given that the notice of resignation was given on 1 July 2011

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􀁺 Not helping matters is the recent fear gripping mainland China companies globally due to numerous financial scandals in the US, Hong Kong and Singapore.

􀁺 Severe share price weakness has resulted in Yangzijiang (widely considered amongst the better performing and more reputable S-Chip) providing some market confidence via the issue of a statement by the company and share purchase by the Chairman.

􀁺 Ziwo currently at 22 cents is half its Jan 2011 high and not far from its all time low of 19.5 cents.