Ann: ASX Letter to XPD, page-8

The Australian directors put out a notice recently, the audit work in China has began on 11th June.

They'd probably haven't pay Wayne Reid, and those directors that abruptly resign last year.

From my research of the legal notice in relation to Henan YuanLong. The company does exist, and seems the be in the shoes manufacturing business. However, of the 4 partners. The other 3 looks like they might want out of the project. Have a look at the litigation against the projects.

Zhang Shaohua the chairman for Henan YuanLong is a relative of Zhang Jiameng, maybe a cousin or uncle. This guy Shaohua also operate many other businesses worth quite a bit of money.... i don't think they would make up all these litigation fake worth millions of dollar. Just so they can scam 6 mil from Australian shareholders.. but then anything is possible..

I have a feeling, maybe they are reserving cash in case they needed it to buy out Henan Yuanlong from the other partners... however, it still does not explain why they would put put 160 mil shares as collateral ???