On 4 January 2012, the Municipal Government of Shuyang County, Jiangsu Province served a notice of termination to ITAD Biotechnology Limited and Xinhua News Media (HKG:0309) to terminate Xinhua News Media's acquisition of a waste-treatment business from ITAD Biotechnology, which was completed on 16 December 2008, Xinhua News Media announced.

Xinhua News Media said that, given limited information presently available, it was in the process of evaluating the situation including contacting the Shuyang Municipal Government to obtain further information and at the same time, would seek an independent legal advice in respect of the legal effect of the termination notice.