Thank you for the information, but as already said, as a shareholder of HERB I expect that Herb is publishing its reports on its website like any other serious company would do.
But the management of Herb is obviously not serious, as they didn't publish it.The question is: why ?
I have looked into :
10-K/A Documents [Amend] Annual report [Section 13 and 15(d), not S-K Item 405]
Acc-no: 0001654954-16-001882 (34 Act) Size: 1 MB 2016-08-30 000-31899
161860221
There are several questions concerning this filing:
1) It has been amended. What has been amended ? There is no indication about that.
2) In this filing is noticed:
"ITEM 1 - BUSINESS
Introduction
Our principal shareholders holding 90.17% of our voting power have taken action by consent without a meeting approving the swap of all of the agricultural management rights of our wholly-owned subsidiary, Gansu Asia-America Trade Co., Ltd. (“GAAT”) in return for the long-term lease management rights to the agricultural properties of our sister company, Gansu Yasheng Agro-Industrial and Commerce Group Co., Ltd. (“GY”). The swap was implemented pursuant to a Swap Agreement between GAAT and GY. Under the terms of the Swap Agreement, GAAT has transferred to GY its right to manage and operate seven companies which have the agricultural management rights, and GAAT received the agricultural long-term lease management rights held by GY referred to as the “Swap”.
So that's the strange swap, leading to the following figures:
"Results of Operations
Year Ended December 31, 2015 December 31, 2014
in Dollars
----------------------
page 48:
"Net cash provided by operating activities
(2015) (2014)
$321,031,922 (2015) $68,077,311
Net cash used in investing activities
(324,337,031) (61,920,730)
Net cash used in financing activities
2,068,428 (5,900,285)
Cash and cash equivalents at beginning of the period
11,907,242 11,337,958
Cash and cash equivalents at end of period
1,397,324 11,907,242
Net cash provided by operating activities was $321,031,922 for fiscal year 2015 as compared to $68,077,311 for fiscal year 2014. Net cash provided by operating activities was higher during the current year in relation to the prior year principally because of increases in net sales and reductions in the amount of account receivables outstanding. Net cash used in investing activities was $-324,337,031 for fiscal year 2015 as compared to $-61,920,730 in fiscal year 2014. The increase was attributed to assets purchase. Net cash used in financing activities was $2,068,428 for calendar year 2015 compared with $-5,900,285 for calendar year 2014. The increase was attributed to more debt repayment during the current year as compared to the previous year."
These figures raise questions:
1) Which assets did they buy for 324,337,031 Dollars ? They didn't
publish it.
2) If they really purchased assets for 324,337,031 Dollars, how can it be that they pubished "total assets" are only 258,325,745
Dollars in 2015,( compared to 2,480,030,368 Dollars in 2014 ?)
Fact 1) The swap lead to a decrease of 2,221,704,623 Dollars in
total assets means a d e c r e a s e of 8 9,5 8 % of
total assets.
YASHENG GROUP
CONSOLIDATED BALANCE SHEETS
page F-2
2015 2014 2013
Total Assets
258,325,745 2,480,030,368 2,350,835,925
Total Liabilities
45,766,030 58,249,587 68,536,050
Let us calculate the current ratio, an indicator of financial strength of the company defined as: total assets divided by total liabilities:
2015 2014 2013
Total Assets
258,325,745 2,480,030,368 2,350,835,925
Total Liabilities
45,766,030 58,249,587 68,536,050
Current ratio:
2015 2014 2013
5,64 42,57 34,3
Fact 2) The asset swap (and the business) led to a decrease of
86,75% of current ratio.
Fact3) This swap wasn't profitable for the shareholders and
assets of 2,221,704,623 Dollars have disappeared.
