OREANDA-NEWS. April 08, 2011. Keyuan Petrochemicals, Inc. (Nasdaq: KEYP) ("Keyuan or the "Company"), a leading merchant manufacturer of various petrochemical products in China, today announced that it has not completed its 2010 consolidated financial statements by the March 31, 2011 deadline. The Company has applied for an extension with the SEC and is required to file the Annual Report by April 15, 2011.

The Company will reschedule its earnings conference call to align with the revised reporting date. Details regarding the earnings announcement and conference call will be provided at the appropriate time.

Mr. Chungfeng Tao, Chairman and Chief Executive Officer of Keyuan explained, "Keyuan transitioned to a "Big 4" accounting firm as our auditor in January 2011. The Company believes that this is an appropriate and necessary step given our desire to satisfy the heightened expectations of our investors. The internal accounting team has worked diligently to complete all necessary field work in a timely manner, but has not been able to complete preparation of the financial statements, and management therefore has not completed its review of the consolidated financial statements.

In addition, the accounting review conducted to date has identified various concerns that have prompted the Company's Audit Committee to undertake an independent investigation, which must be concluded before the Company will be able to complete its preparation and review of its 2010 consolidated financial statements. The concerns were primarily related to unexplained issues of certain cash transactions and recorded sales.

The audit committee has engaged Pillsbury Winthrop Shaw Pittman LLP as its independent legal counsel, and such counsel will engage a separate independent accounting firm to assist in the investigation. Management is fully cooperating with the audit committee and will furnish all necessary materials. Management believes that this comprehensive review by the independent investigation will solidify our internal reporting processes and provide more confidence to investors and shareholders, and further hopes that the issues raised will be resolved to the satisfaction of both the audit committee and the auditors. However, there can be no assurance that these matters will be satisfactory completed by April 15, 2011, or that we will be able to file the Form 10-K Annual Report by such date. The audit committee is working as quickly as possible to complete the investigation, but at this time we don't know the timing. As soon as the filings are made, a press release and conference will be held.