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  • Yongye's Recent Filings Raise Various Red Flags [View article]
    manix: When did Ian claim YONG is going into the "bitimous coal mining business?"
    Mar 27 11:23 AM | Likes Like |Link to Comment
  • Yongye's Recent Filings Raise Various Red Flags [View article]
    manix: No, YONG did not explain it. YONG claims to be unaware of the reasons for the variability - it claims that it is due to "variable buying habits" by the distributors and that those habits are the distributors' own business. What happened to managing the well-oiled "distribution network?" And what new product? The plant product has been selling (allegedly) since 2007. KPMG signed off on Lernout & Hauspie too ( www.bizjournals.com/bo... ).
    Mar 27 11:20 AM | Likes Like |Link to Comment
  • Yongye's Recent Filings Raise Various Red Flags [View article]
    manix: I am sorry, but Ian appears correct. Here is what the 2010 10K states ( page 8, sec.gov/Archives/edgar... ): "In 2010, we entered into an agreement with Wuchuan Shuntong Humic Acid Company Ltd (“Wuchuan Shuntong”) to acquire the permit for the rights to explore, develop and produce lignite coal resources (“Mineral Right”) in a certain area of Wuchuan County. The cash consideration of the permit is approximately RMB 240 million or USD $35 million."

    Now, care to explain to us who owns Wuchuan Shuntong Humic Acid Company?
    Mar 25 05:32 PM | Likes Like |Link to Comment
  • Yongye's Recent Filings Raise Various Red Flags [View article]
    jonsjon1223: Here is a company audited by KPMG that turned out to be a fraud.

    www.bizjournals.com/bo...

    Good appetite!
    Mar 25 05:00 PM | 2 Likes Like |Link to Comment
  • Yongye International Response to Blogger's Red Flags Falls Somewhat Short [View article]
    pmcmullen100: Why do we care whether you would be nervous or not? If a stock is worth zero, and it is priced at even 1c, that is still an infinite premium, no? Why would my questions be "ultimately misguided?"
    Mar 25 02:30 PM | Likes Like |Link to Comment
  • Yongye International Response to Blogger's Red Flags Falls Somewhat Short [View article]
    rmartin929: Thank you for that 29% reference. I believe you just uncovered a discrepancy in a YONG's press release. Walk with me here: So, since total revenue was $27,990,543 in the Q4, 29% of it is at least $7,977,305 (28.5%* 27,990,543). Now, the same press release claims that "sales from Hebei increased 333% period over period in the fourth quarter of 2010." We can derive the Hebei sales in Q4 of 2009 from the 2009 10K and the 2009 Q3 10Q disclosures, and the number is $1,774,874 ($29,004,998 - $27,230,124) . Unfortunately, the growth between $1,774,874 and (at least) $7,977,305 is (at least) 349%, which a bit above the 333% number in the press release. What did I do wrong?

    YONG's customers are the province-level distributors and the county-level distributors in Hebei, per the 10K. So, there is no such thing as "6,400 end customers." According to the 8K I referenced ( sec.gov/Archives/edgar... ), the "Customer List is comprised of sub-provincial level distributors who sell the Company’s Shengmingsu plant and animal nutrient products to over 2,700 independently-owned Yongye branded stores located in Hebei Province." Period. YONG's CFO admitted that YONG already knew where those stores were, per Ian's article.

    So, it seems YONG could have sold to the stores directly without paying $25 million. That would have increased margins in the province even more.

    What angle? What evidence do you have that YONG is selling anything? All I have seen is evidence of YONG DONATING the product (i.e, giving it away for free).
    Mar 25 02:20 PM | Likes Like |Link to Comment
  • Yongye International Response to Blogger's Red Flags Falls Somewhat Short [View article]
    rmartin929:

    I don't know what the list is comprised of - I haven't seen it, as it was never disclosed (nor was the actual "purchase" agreement). How do you know what the list is comprised of?

    How much do such lists cost per item? Let's say a list of 2,700 items. Tell us, which other list in the Universe costs more than $9,259 per item? Plus, remember, when Ian "spoke with CFO Sam Yu, he told [him] that the company knew the location of the stores" already!

    Now:

    A. I am not telling you anything like that.
    B. That's what they claim, yes.

    So?

    How did you figure out that the Hebei province represented 29% of sales in the fourth quarter of 2010?

    Thanks for your help.
    Mar 25 01:04 PM | Likes Like |Link to Comment
  • Yongye's Recent Filings Raise Various Red Flags [View article]
    Here's why your beliefs that YONG is legitimate are suspect:

    1. The so-called "Chinese Corporate Integrity Award" was result of a micro-blogging poll among 600 predetermined entities. The "Award" was won by Yongye Group, not by YONG, as can be clearly verified by looking for its logo at the link www.nbd.com.cn/zhuanti... in that press release www.prnewswire.com/new... . Yongye Group, according to the "response" press release www.prnewswire.com/new... , consists of various businesses. So, again, the award was not won by YONG. Sorry.

    2. What is the price of a regular foliar fertilizer (a 200g/L NPK base with 10g/L micronutrients) per liter (or kg)? It is 100x less than the price of YONG's product.

    3. Motley Fool did not compare the effect of the product with the effect of a regular cheap NPK fertilizer.

    4. Please provide your evidence that SEC doesn't think YONG is violating SEC Regulation S-K on two counts. The argument might be, actually, that SEC has simply not read YONG's 10K yet.

    Yes, I am not here to save anybody. I am here to get an answer to my questions. Specifically, what are the names of YONG's significant customers in years 2008, 2009, and 2010 and the identity of YONG's beneficial owner? That information is supposed to be public anyway, per SEC Regulation S-K.
    Mar 25 12:35 PM | Likes Like |Link to Comment
  • Yongye International Response to Blogger's Red Flags Falls Somewhat Short [View article]
    rmartin929: YONG did pay $25 million for a list. Part of that $25 million was the 3.6 million shares grant, which created YONG's obligation to disclose the name of the recipient per Regulation S-K.

    Here is what the 8K filed August 3rd states ( sec.gov/Archives/edgar... ):

    "On July 29, 2010, pursuant to certain asset acquisition agreement which was entered into in June 2010 by and between Yongye Nongfeng Biotechnology Co., Ltd.(the "YNFB"), a 95% owned subsidiary of Yongye International, Inc. (the “Company”), and the Company’s provincial level distributor in Hebei Province, the People’s Republic of China (the “Seller”), YNFB completed its acquisition of the Shengmingsu brand products distribution network from the Seller which is solely comprised of a customer list (the “Customer List”)."

    To repeat, what was acquired was solely a customer list. There has been no amendment to that 8K, so what was said there must still be true. Where are you getting your "sales relationship with the downstream customer" from?

    Why would anybody need to buy anything, if all the revenues come from related parties?
    Mar 25 12:10 PM | Likes Like |Link to Comment
  • Yongye International Response to Blogger's Red Flags Falls Somewhat Short [View article]
    EriKarju:

    1. SEC Regulation S-K, Item 403, does not require the identity of the distributor to be known to the auditor. It requires a PUBLIC DISCLOSURE of the identity of the beneficial owner by YONG (not by the beneficial owner), if that beneficial owner is known to YONG, which it is, since YONG gave it $25 million for a list.

    2. If you try to derive the quarterly sales to Hebei, you will see that the variability has been going on since Q1 of 2008. Ian's article mentioned similar issues with Inner Mongolia and Xinjiang. And I thought YONG worked very closely and productively with its distribution network - what happened? So your made-up reason is bogus. Why won't YONG disclose the name of the former Hebei distributor?

    3. True, if those operations exist.

    SEC Regulations 13D-13G (there is no SEC regulation SCH 13-G) deal with the obligation of the beneficial owner, who, unfortunately, is likely a Chinese national, so the beneficial owner can violate the Regulation all he or she wants. However, SEC Regulation S-K Item 403 spells out the obligation of YONG, the Issuer, to publicly disclose the identity of the beneficial owner, if that beneficial owner is known to YONG, which it is, as YONG gave it $25 million for a list. Usually that obligation is fulfilled either explicitly or by reference just where Item 12 is on page 75 in the 2010 10K.

    If the existence of YONG's major clients (that are not related parties) is otherwise made clear, please name a couple!
    Mar 25 12:00 PM | Likes Like |Link to Comment
  • Yongye International Response to Blogger's Red Flags Falls Somewhat Short [View article]
    If you try to visit a HQ, make sure you visit YONG's HQ and not Yongye Group's HQ. And ask about those names!
    Mar 25 11:39 AM | Likes Like |Link to Comment
  • Yongye International Response to Blogger's Red Flags Falls Somewhat Short [View article]
    If YONG were "the very best Chinese Ag of today and future," YONG should have no problem complying with SEC Regulation S-K by disclosing the names of its significant customers and the identity of its beneficial owner.
    Mar 25 11:37 AM | Likes Like |Link to Comment
  • Yongye International Response to Blogger's Red Flags Falls Somewhat Short [View article]
    mcmullen100: You have no doubt even though you still haven't heard back on the "customer" issue? But, thank you for your suggestion.
    Mar 25 11:36 AM | Likes Like |Link to Comment
  • Yongye's Recent Filings Raise Various Red Flags [View article]
    john795806: Thank you for your suggestion.
    Mar 25 11:33 AM | Likes Like |Link to Comment
  • Yongye International Response to Blogger's Red Flags Falls Somewhat Short [View article]
    pmcmullen100: Thank you for your information and advice. I am sure you are not a deaf-mute, so you could make an inquiry with the SEC yourself, if you cared.
    Mar 25 09:39 AM | Likes Like |Link to Comment
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