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  • Yongye's Recent Filings Raise Various Red Flags [View article]
    the sales and service and service teams run a distributor through a couple stores and let them do the rest, its common practice.
    Mar 23 11:00 AM | 1 Like Like |Link to Comment
  • Yongye's Recent Filings Raise Various Red Flags [View article]
    you realize yong uses distribution networks. The people running the stores are not yongye employees but rather employees that work for these distributions networks.

    Do you not know how a distribution network works? jesus christ.
    Mar 23 10:38 AM | 3 Likes Like |Link to Comment
  • Yongye International (YONG): Is Their Story Too Good To Be True? [View instapost]
    I think you would benefit greatly from actually visiting the country.
    Jan 12 02:10 PM | 3 Likes Like |Link to Comment
  • Yongye International (YONG): Is Their Story Too Good To Be True? [View instapost]
    It's written right on their 10k:

    Unique and scalable distribution model. We sell our products in China through an effective distribution model comprised of provincial distributors who purchase our products and sell them through a chain of local distributors.. Our provincial level distributors are our direct customers. We do not receive any payments from the retail stores selling our products, including the branded stores, and the stores may sell our competitors' products."

    The operate in Inner Mongolia - many shops in large Chinese cities are poor and hard to find a telephone # for. It's not going to be published on the web or anything - the retail stores are probably individual, small, family owned and probably don't have a phone for their business, let alone publish their phone # on the web, or however else you are trying to find a phone #
    Jan 10 12:28 AM | 1 Like Like |Link to Comment
  • Yongye International (YONG): Is Their Story Too Good To Be True? [View instapost]
    They use distribution networks and get the revenue from these large distribution chain customers. I'm sure they each have a lot more than 300 workers working for them. This definitely explains the growth.
    Jan 5 10:54 AM | 1 Like Like |Link to Comment
  • Yongye International (YONG): Is Their Story Too Good To Be True? [View instapost]
    I've been doing some research on this company as well. Here's some points I have that may be able to shed some light on your worries

    around 50% of Chinese are farmers. that puts 700 million, 600,000 villages isn't that far of a stretch. I'd say there's even more. A regular farming village is about a couple hundred people at most - they aren't that big. my father was a farmer in china for 2-3 years during the cultural revolution

    chinese farmers are the most thrifty consumers you can find anywhere - you are correct about this - but they trust & love the media. Yong has an incredible relationship with CCTV-7. Their current spokesperson is a very famous chinese actor with parents that were both farmers. Having him push the product both on television and on ads across stores etc. Yong's VP of marketing is one of the top 10 marketers in all of China. The growth isn't that unbelievable.

    52 stores a day is incredibly doable - its not hard to convince a store - especially an independent owned store - to carry a trustworthy product and have placement with a little money incentive. I don't know if you've ever been to China, but almost every person in the city has a shop underneath their home - this is how shopping is done - they aren't the huge supermarkets, etc. Also what if Yong had a deal with a major supermarket to sell their product? this would increase their stores by a lot - i remember reading in their report about the increased expenditures in acquiring someone's customer list + marketing expenses.

    For the auditors - an easy explanation would be that they are changing auditors because they are serious - they want to be audited by a world renowned firm (KPMG audits it now), but maybe before they didn't have enough money? Public audits are extremely expensive and it is one of the major cruxes for small businesses. Maybe they had a less renowned auditor audit then as they grew, were able to pay for better, more renowned audits - a positive sign.

    I have to dig a little more on your other points, which I will. Let me know what you think about what I said, maybe you have other insight. I'll continue explain some things as I find them out. much of this was on the top of my head from the research I did about a month or two ago.
    Dec 24 09:22 PM | 4 Likes Like |Link to Comment