YaSheng Group (HERB)

[RealDutch]

Answers related to the swap agreement you can find in here.

https://www.sec.gov/Archives/edgar/data/1123312/000119983515000565/yasheng_defm14c-16686.htm



They can't book the value of the swapped in management rights. They have to book them AT COST. The result is that gross margin could be as high as 70% (Almost no depreciation).

The management rights were acquired a long time ago (before the swap). They have less value today as a result of depreciation.

Ms. Wu was mistakenly removed from the BOD in the 10-K. That was all the 10-K/A amendment was about.

As to what the company is up to, I think a little imagination can go a long way in solving that mystery. Currently, HERB can't transfer a single penny to parent without giving the minority shareholders their fair share. And they used to do it all the time (every penny) before the asset swap. So they have to get rid of us. Going dark is not an option IMO, as the cash position will go up by roughly $150M every year. All free cash flow.