More Info from Huaan

Dear WK,

Good day.

Sorry to reply you late.

The decision to discontinue with Deloitte & Touche was primarily due to the fact that their fees was deemed to be on the high side. For the audit on the FY2007, we were charged approximately RM1 million, notwithstanding the fact that we have only 1 active company (ie Linyi Yehua Coking Co. Ltd) and the number of transactions are not voluminous. One of the shareholders, during the AGM, even spoke out highlighting that the audit fee that we paid was exceptionally high.



The reason for deciding on Anuarul Azizan Chew & Co. as the new replacement auditor is due to the fact that they are the member firm

of an international accounting firm called Morison International. Morison International was the firm that was involved in the re-audit of Linyi Yehua Coking Co. Ltd (our only active company in China) to ensure that the audit then was IFRS compliant for the purposes of submission to the Securities Commission for the IPO of Sino Hua-An. Premised on that rationale, we feel that the team from Morison International (Hong Kong office) are already familiar and well-versed with the Company (Linyi Yehua Coking Co Ltd and PIPO Overseas Ltd), the Coking business, our operating environment, etc and should be able to very quickly pick up where Deloitte has left off, rather than a totally new audit firm who will then need to take time to first try to understand our company, the business, the industry, etc. We take cognizance of your “concern” that Anuarul Azizan Chew & Co. is not one of the renown Big 4 Accounting firm, a similar point was also highlighted and deliberated at length by our audit committee. However, it was felt that since our active company, namely Linyi Yehua Coking Co. Ltd is the only company that our entire business operations are located at and that it is the only company that generates business revenue and profit for the Sino Hua-An Group, if we need to change auditors, we should choose one that has the competencies to perform audit on China companies and familiar with our business operations whilst meeting our objective of a lower fee structure.



Morison International (Hong Kong)’s PLC clienteles are as follows:



中國B股客戶

PRC Shenzhen B shares

- 深圳市飛亞達(集團)股份有限公司Shenzhen Fiyta Holdings Limited

- 合肥美菱股份有限公司 Hefei Meiling Company Limited

- 深圳本魯克斯股份有限公司Shenzhen Benelux Enterprise Company Limited

- 深圳方大集团股份有限公司 China Fangda Group Company Limited



中國B股客戶

PRC Shanghai B shares

- 上海華源凱馬股份有限公司 Kama Company Limited

- 上海華源股份有限公司 Shanghai Worldbest Company Limited



香港上市公司審計師

Hong Kong listed company

- 哈爾濱動力設備股份有限公司 Harbin Power Equipment Company Limited

- 普鈉集團有限公司 Plus Holdings Company Limited

- 艾克國際控股有限公司 Akup International Company Limited

- 百威國際控股有限公司 Bestway International Holdings Limited

- 新怡環球控股有限公司Sunny Global Holdings Limited

- 老虎科技(控股)有限公司Tiger Tech Holdings Limited



重大交易事項的申報會計師

Substantial transaction reporting to HKSE

- 南京熊猫电子股份有限公司 Nanjing Panda Electronics Company Limited

- 榮盛科技國際控股有限公司 Solartech International Holdings Limited

- 和記電訊國際有限公司 Hutchison Telecom International Company Limited

(上市招股書印度業務的申報會計師)



內部監控評核

Internal control review

宇陽控股(集團)有限公司 Eyang Holding (Group) Company Limited

利君國際醫藥(控股)有限公司 Lijun International Pharmaceutical (Holding) Company Limited



OTCBB US

- Home System Group Inc

- Gulf Resources Inc



馬來西亞主板上市公司

Malaysian listed company

- Sino Hua-An International Berhad



上市公司秘書

Company Secretary Services

- 中國人壽保險股份有限公司 China Life Insurance Company Limited

- 吉之島(香港)有限公司 Aeon Stores (HK) Company Limited





As for Anuarul Azizan Chew & Co. (which you are “concerned” of for their seemingly lack of public visibility), they will only be doing the audit on Sino Hua-An (company level) and consolidate the audited figures that generated out from Morison International, their member firm. We are dealing with Mr Patrick Chew (the managing partner of Anuarul Azizan Chew) directly and he will be assisted by Mr Declan Yong (a Principal in the firm, whom I believe is slated for partnership soon). Anuarul Azizan Chew’s list of PLC clientele are as follows:



· Tradewinds (M) Berhad (audit)

· Magna Prima Berhad (audit, tax)

· Prinsiptek Corporation Berhad (audit)

· GHL Systems Berhad (audit, tax)

· N2N Connect Berhad (audit, tax)

· LBI Capital Berhad (audit)

· Weng Zheng Resources Berhad (audit, tax)

· Nepline (M) Berhad (audit, tax)

· LBS Bina Group Berhad (audit, tax)

· Aturmaju Resources Berhad (audit, tax)

· Paragon Union Berhad (tax)

· My E.G. Services Berhad (tax)

· TSR Capital Berhad (internal audit)

· Komarkcorp Berhad (internal audit).



Thks & rgds,

Bernard Tan















Th



T





----- Original Message -----
From: y wk
To: Bernard Tan
Sent: Sunday, September 21, 2008 12:11 PM
Subject: Re: Sino Hua-An International Berhad: Aseambankers & Kenanga Research report dated 25 August 2008 (2Q08)


Dear Bernard,

With reference to your announcement to Bursa dated 20/05/08, what are the reasons in regards the change of the previous auditors from Deloitte & Touche to a smaller & unknown auditor named Anuaral Azizan Chew & Co.? Which listed company are they (Anuaral Azizan Chew) engaged as an auditors for their firm? Will the new appointment be as reliable as the previous?

Thank you

Regards

WK