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c/o American Union Securities
100 Wall Street
New York, NY 10005
Jilin Huaren commenced its marketing operations in March of 2005. The growth of our business continued to the end of 2005, then came to a halt. During the winter of 2005, the government of China required that enterprises engaged in multi-level product distribution substantially revise the arrangements they had with their distribution network. Therefore, during the first quarter of fiscal 2006, we had revenues of only $103,309 – as we spent the quarter rebuilding our distribution network to achieve compliance with China’s regulations. We completed that rebuilding process in time to return to an almost-full marketing effort by mid-year, and reported third quarter and annual revenues of $492,815 and $2,188,146, respectively, in 2006.
Our supply-to-distribution system continues to experience inefficiencies, however. In the Spring of both 2006 and 2007 we found ourselves with large inventories of perishable goods that we were unable to sell before their expiration dates. So at both times we transferred the goods to another distributor at cost. The transaction in 2007 involved a sale to Yushu Wanli Co., Ltd. of foodstuffs for $5,380,185 (equivalent to RMB 40,312,786) (including tax) under a contract that calls for payments to begin in cash in May 2007. During the quarter ended June 30, we received $667,305 (equivalent to RMB 5 million) from this client. In the quarter ended September 30, 2007, payments from Yushu Wanli fell to $266,922 (equivalent to RMB 2 million). This transaction relieved us of the problem of perishable inventory. But the results were that (a) we have a large receivable that will not be paid promptly and (b) we realized no gross profit on a sale that represented 74% of our revenue to date.
Fiscal Year End
Estimated Market Cap
11,320,000 as of Apr 9, 2008
14,699,853 as of Apr 9, 2008
Number of Share Holders of Record
178 as of Apr 17, 2007
American Stock Transfer & Trust Company,
59 Maiden Lane
New York, NY 10038
Chinese tax authorities have permitted us to delay payment of taxes on our operations, resulting in a $533,768 increase in our taxes payable. (Source: www.sec.gov)
Low trading volume
On many trading days there is a wide spread between the bid and ask on this equity which can hamper investor liquidity.
Delayed audited 2007 annual report