China Growth Stocks

[viking86]

GFRE: is Shandong Haoyuan Chemical Industry, the guys who are heavily involved in the Daying WW plant project, part of GFRE? Probably not, see below. That's why they will probably keep quiet on this IMO.

The most exciting project of all is the project invested by Shandong Hao Yuan Chemical Industry Co., Ltd. The company plans to use the rich brine mineral resources in Daying county as an advantage to build an effective industrial chain to produce multiple fine chemical products.

Acc. to GFRE's rebuttal letter of April 28, Shandong Haoyuan Group holds about 11.9% equity ownership in GFRE but has no direct ownership of GFRE's 2 main subsidiaries. So it appears Shandong Haoyuan is directly involved in the Daying project and GFRE only indirectly through Shandong Haoyuan's 11.9% equity ownership:

Shouguang City Haoyuan Chemical Company Limited ("SCHC") and Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"), Gulf Resources' two wholly-owned operating subsidiaries, were previously owned by Shandong Haoyuan Industry Group Ltd. ("Haoyuan Group"), of which Mr. Ming Yang, the Chairman of Gulf Resources, is the majority owner. In December 2006, Gulf Resources acquired SCHC in a reverse merger transaction. On February 5, 2007, SCHC acquired SYCI from the stockholders of SYCI. Haoyuan Group holds a significant equity interest in Gulf Resources (approximately 11.9%), but has no direct ownership of SCHC and SYCI. The corporate structure charts displayed on Haoyuan Group's website (www.haoyuangroup.cn) are outdated and Haoyuan Group intends to update the website to remove any misleading references. Ming Yang and his affiliates are the largest shareholders of Gulf Resources and have never pledged or sold any shares.

http://www.quote.com/news/story.action?id=EUR118x8189