$60mm market cap for a company operating NG business across three provinces at a number of cities in central China is definitely a bargain. Without digging deep into financials, common sense tells me the licenses to operate in these cities may be worth more than its market cap, given how hard it is to obtain such a license in China. There is no doubt the company is in a profitable business as this sector normally is dominated by state-owned giants such as PetroChina and Sinopec. That said, it might be a potential takeover target for Petro-China KunLun Gas, which is a platform of Petro-china in city gas business. As to the accounting scandals related to some Chinese companies, comparatively CHNG is better positioned than many of the other Chinese firms in that it is audited by E&Y. If there is any overkill in the current attack on Chinese companies listed in the US through reverse mergers, CHNG might be the one.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTC:CHNG over the next 72 hours.