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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 20-F/A
Amendment No. 1
  o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE
SECURITIES EXCHANGE ACT OF 1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 FOR THE FISCAL YEAR ENDED  DECEMBER 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 FOR THE TRANSITION PERIOD FROM TO
 OR
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 Date of event requiring this  shell company report
 For the transaction period from to
 COMMISSION FILE NUMBER: 000-51839
 CHINA GRENTECH CORPORATION LIMITED
  
 Cayman Islands
 
 15th Floor, Block A, Guoren Building
Keji Central 3rd Road
Hi-Tech Park, Nanshan District
Shenzhen 518057, Peoples Republic of China
 
  Name of Each ExchangeTitle of Each Class
    
    On Which RegisteredAmerican Depositary Shares, each representing      25 ordinary shares of par value US$0.00002 per share
    
    The Nasdaq Global Select MarketOrdinary shares of par value US$0.00002 per  share*
    
    The Nasdaq Global Select Market *
 
 *
    
    Not for trading, but only in connection with the registration of American Depositary Shares.  None
  None
  As of December 31, 2007, 614,064,000 ordinary  shares, par value US$0.00002 per share.
  o þ
  o þ
   þ o
  Large accelerated filer o
Accelerated filer þ
Non-accelerated filer  o  U.S. GAAP þ
    
    International Financial Reporting Standards as issued
by the International Accounting Standards Board o
    
    Other o
  o o
  o þ






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EXPLANATORY NOTE
   TABLE OF CONTENTS
  
 PART II
    
    
    
    
    
    
    1ITEM 15.
    
    CONTROLS AND PROCEDURES
    
    
    1PART III
    
    
    
    
    
    
    3ITEM 19.
    
    EXHIBITS
    
    
    3SIGNATUREEX-12.1EX-12.2EX-13.1EX-99.1EX-99.2




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PART II
 
 ITEM 15. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
   Managements Report on Internal Control over Financial Reporting
 Internal Control  Integrated Framework
 Internal Control  Integrated Framework
 
    
    Inadequate level of review of the basis and assumptions used for classification of trade receivables into short-term and long-term categoriesThe basis and assumptions used for classification of short- and long-term trade receivables
were established in accordance with our accounting policy, however, we did not review and
update them on a timely basis in order to reflect the most recent repayment patterns. As a
result, adjustments were recorded to reclassify receivable balances from short-term to
long-term and to adjust the discounting effect of the long-term receivable balances. These
adjustments are reflected in our consolidated financial statements for the year ended
December 31, 2007.
    
    Ineffective controls over monitoring of the level and the status of inventory pending for installation located at the sites of our customersWe had certain amounts of inventory awaiting installation which were stored at our
customers sites as of December 31, 2007. We have ineffective controls over monitoring the
level and the status of such inventory. This material weakness also affects the controls
over physical inventories and lower of cost or market valuation which are not effective.
The status of certain inventory awaiting installation was not updated in a timely manner,
resulting in an understatement of cost of revenues in our companys unaudited management
accounts. This material weakness led to corrective adjustments to the consolidated
financial statements for the year ended December 31, 2007.
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
    
    Inadequate level of management review of critical manual Excel spreadsheet containing trade receivable aging informationWe relied on the manual Excel spreadsheet for trade receivable ageing analysis and revenue
recognition for U.S. GAAP compliance purposes. There was documentary evidence of the Excel
spreadsheet being reviewed, but inaccurate entries of information to the Excel spreadsheet
were identified. As a result, we had to re-assess the adequacy of provision for doubtful
debts, resulting in an adjustment of allowance for doubtful debts in our consolidated
financial statements for the year ended December 31, 2007.
    
    Insufficient knowledge, experience and training of our accounting personnel in the application of the generally accepted accounting principlesThe foregoing material weaknesses and other control deficiencies identified by management
arose mainly as a result of an insufficient knowledge, experience and training of our
accounting personnel in the application of the generally accepted accounting principles
commensurate with our financial reporting requirements.
  Remediation Plan
  
    
    Establish policies and procedures for classifying short- and long-term trade receivables in
order to properly assess the reasonableness of the balance of trade receivables. The policies
and procedures would include performance of reasonableness assessment at least annually with
consideration to the receivable collection plans prepared by each representative office,
payment history of customers and market forecast. At the end of each year, our finance
department would utilize the current year collection data to ensure classification of trade
receivables into short-term and long-term categories, with the discounting effect to be
reflected accurately in the consolidated financial statements.
    
    Enhance control and monitoring of inventory awaiting installation by establishing formal
inventory count procedures for such inventory. Branches are also responsible for regular
inventory count and the counting results should be reviewed and confirmed by the appropriate
personnel of the branches, and reported to the finance department for recording and filing.
    
    Establish Excel spreadsheet review procedures for ensuring adequate review of critical
information shown in the Excel spreadsheet. The review personnel would include appropriate
management personnel, and the financial controllers review would also be required to monitor
the risk of error. In addition, we would establish requirements for relevant documents such as
a review form being maintained for documenting the review status, and maintaining review
procedures for accuracy and completeness of source data, correctness and reasonableness of
formula and the reconciliation between batch sums. The responsible reviewers would endorse the Excel spreadsheet as documentary evidence of their reviews.
    
    Engage qualified entities to arrange training for financial and accounting personnel on a
periodic basis to furnish them with adequate knowledge of U.S. GAAP and SEC rules and related
disclosure requirements.
    
    Recruit accounting personnel familiar with U.S. GAAP and SEC rules and related disclosure
requirements, and ideally a member of American Institute of Certified Public Accountants, who
will be responsible for the review and compilation of the consolidated financial statements in
accordance with U.S. GAAP and SEC rules and related disclosure and reporting requirements.
  Changes in Internal Control over Financial Reporting
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PART III
 
 ITEM 19. EXHIBITS
 ExhibitNo.
    
    Description of Exhibit12.1
    
    CEO certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200212.2
    
    CFO certification pursuant to Section 302 of the Sarbanes-Oxley Act of 200213.1
    
    CEO and CFO certification pursuant to Section 906 of the Sarbanes-Oxley
Act of 200299.1
    
    Report of Independent Registered Public Accounting Firm99.2
    
    Attestation Report of Independent Registered Public Accounting Firm
Regarding Internal Control Over Financial Reporting
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SIGNATURE
  China GrenTech Corporation Limited/s/ Rong YuName:
    Rong YuTitle:
    Chief Financial OfficerDate: October 28, 2008


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