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The offer is not to buy itself out, in terms of the letter. Company was sold, BOD gives reason for doing so at such a low price as being the "advanced aging and deteriorating condition" of plants. New owner is providing the tender offer.
Anyone who knows the background of this company, including upgrades to modernize, realizes this is a joke.
Malone Bailey didn't ditch CRJI like they did almost all other China clients.
Just goes to show that it doesn't matter if the company is legit, management's intentions rarely are.
The offer to buy out itself is good, but the offer price is a total joke! It looks like that they want to list on Chinese market. The valuation on Chinese market should put it the north of $1 per share easily. Let's waite for a better offer.
So they sold Ren Ji HK for $100k. That was not their main cement production facility Correct? Sounds like they are trying to buy out shares on the cheap.
Anyone have any info on this Novasun Limited, the acquiring company?
Not at 0.065. Need a much better deal than that.
CRJI will be worth of $1 per share if the company is put on sale in Chinese market based on their productio capacity, resource, facility and earning power.
Where did you hear of a buyout offer?
Seems low compared to stated company valuation from 02-28-2011...
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7869540
About 16 cents on the dollar has the appearance of confusing the dollar to juan rate in the company offer...LJ
Anyone taking the buy out offer at .065? It looks like they are willing to pay to cover their BUTT from lawsuits.
Anyone contacted Anhui Province Runji Cement Co., Ltd. recently?...
http://tomwarm528.en.ec21.com/
No one has updated cement prices on this board since this company got a little quieter...LJ
Right and the US promoters making money on the bigger names don't want to see the China gov't step out and start black listing the sham companies...
More of the same leads to volatility...LJ
Sham is the new word in China news reporting relating to alledged companies with questions raised by the short side....
This is one where you might not see any uptick above .10 for a long time. I personally don't sense anything happening for a while. Perhaps a buyout. I'm stuck with my China plays...some I thought were truly legitimate are just frauds...or non-reporting question marks that will play out well in the long-run. But not anytime soon...it's a shame.
CRJI and the cicadas have went silent...LJ
CRJI has no rebuttal for not filing quarterly and annual statements for US shareholders...
Their labor cost is most likely close to 90% less than a US company has to deal with on the cost side...
No way filings expenses can compare to a China company's payroll expense advantage!...
Big flop move by whoever guided the latest decision...IMO, of course...LJ
No problem regarding the questions. I'm happy if I can provide my opinion.
Regarding the listing in HongKong. From what I know the listing requirements are pretty rigorous and there is quite a long waiting time. So far none of the US listed china companies did list over there so it's all just chatter right now. No doubt it would be a confidence boost if they would but I don't see it.
How different are the rules in Hong Kong Exchange? Would it create more legitimacy, and in turn create more transparency for these companies to trade on that exchange, thus giving US investors (whether their intention or not) a way to show they're honest? I know there has been talk about some companies...or at least some investors of these companies to want to get listed on the HKE. What's your take on that? BTW, if you get tired of me asking questions, just feel free to tell me to stop asking questions. I just value your opinion. I always followed you on CGS board, and I respected what you had to say.
In general all quarterly reports are unaudited. Only the 10k's are audited. I don't think that the going dark companies keep their expensive US auditors if they file to go dark. Wouldn't make sense. They probably wanna safe that money. CRJI could be absolutely legit but they now decided that they don't want to play by the US market rules anymore.
Thanks, Traderfan, for your insight. Another question for you, and this might be a stupid one. How many of these "dark" companies hold on to their financial auditor? I understand that financials could be unaudited. I just wondered if most do it in-house, or some still hold on to their CPA firm. I know for some companies, the SOX Act has been the costly part of it. CRJI seems (or seemed) legitimate in that they hired a reputable auditing firm and have been rather profitable.
Thanks again in advance.
The company's direct ownership structure of subsidiary cement operations looks plausible...
But I didn't place high on the member list cut...
And the company execs shouldn't be in the paper business anyway...Should be in the cement business...
And we don't know why the company may be entering a quiet period...
Listing on the China exchange for smaller companies might be better for them now...
Sector watching isn't normally this entertaining...LJ
It's important to realize one thing. If a company goes dark it doesn't matter whether it's a fraud or not. It's not game over for them it's game over for you as a shareholder. No filings in the future means the stock has no value anymore. Literally no value at all. How should anyone determine the value of the company if they don't file anymore? Over time this one will go towards zero. There is only one thing that would prevent this from happening and that's a going private offer for the US shareholders and chances for this are close to zero as we can see with all the other goind dark companies listed here in the US.
The good thing is that sometimes these stocks don't immediately go down to zero since market makers and shorts are buying back shares at certain points. So maybe you can get out anywhere close to 10 or 12 cents. Look at ENHD to see how usually goind dark stocks fare over time.
Do you think this is just a move to save money or this is literally game over for them? I'm trying to weigh the non-reporting legitimate company from the non-reporting fraud. There are many pinkies that are legitimate, but choose to stay on it to avoid hassle, among other things. Just curious to what your take is. TIA
LOL no, that's exactly why they filed the form15 today. Because they will never ever file again. Like many of the other OTC china RTO's. Unfortunately it's game over here.
Holding but interesting in knowing if the company still has any plans to continue submitting filings...LJ
15-12G filing from CRJI...
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8000818
Holding but interesting in knowing if the company still has any plans to continue submitting filings...LJ
How are cement prices comparing to last quarter?...
April and May?...LJ
Thanks CSP.
Hope you had a good holiday.
Minding
sure- go to the home page and click on the blinking "Risk Analysis" link on the upper left of the page.
Have a nice weekend.
http://geoinvesting.com/
Over half by OTC stocks changed to the pinks earlier this year. Something to do with ordering system
I may be blind, CSP, but I can't find the information at GEO so would you please provide a link. Thanks.
Minding
"Due to the wide range of OTC companies, OTC Markets Group developed the OTC Market Tiers to help bring increased clarity, transparency and disclosure to the OTC Market."
http://www.otcmarkets.com/otcqb/learn/otc-market-tiers
The .pk added to the ticker of so many names accompanying this transition didn't exactly have the desired effect in the case of fully reporting companies.
CRJI doesn't have bloated cash levels showing either...Many growing companies with positive cash flow have to re-invest...
Many of the possibly suspect foreign companies that come under scrutiny picked up cash for shares in their early histories to bloat balance sheets for onlookers...
Some lessons cost to learn from them...LJ
CRJI's SEC and SAIC numbers match according to GEOinvesting.com.
This seems to be quite rare in China small caps and is an indication that the numbers they're paying taxes on in China are very close to the numbers they're reporting to the SEC as a public company. It is one method used to measure fraud risk as many folks are aware.
CRJI may be in a state of managerial transition at the moment but I bought a few shares just to see what happens from here....mostly because of the SAIC/SEC match which I see as being very positive.
They have some issues with bank debt and short term loans, but they do have about $3M in positive cash flow/quarter, and they have $7.4m in accounts receivable which they've been successful to date in collecting in the past. (AR balance decreased by $2m in the mrq).
Just my .02 on a .12 stock.
(I bought a few today to see where they go...I don't usually buy .12 stocks...could get interesting?)
Wonder why CRJI trades in the pinks instead of on the BB status?...company preference?...LJ
financials posted appear up-to-date...
http://finance.yahoo.com/q/is?s=CRJI.PK
I called that number before. That is the actual production facility. They are doing weel, cemenmt price up and currently at full prodcution. But the new managment is loacted in Guangzhou.
That phone # could be near the cement factory website sale area because the address is also similar to that in the company filing...
Anhui Province Runji Cement Co., Ltd....
http://tomwarm528.en.ec21.com/
latest 10Q filing link...
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7869540
CHINA RUNJI CEMENT INC.
(Exact name of Registrant as specified in its charter)
Delaware 98-0533824
(State or other jurisdiction of
incorporation or organization) (IRS Employer
Identification No.)
Xian Zhong Town, Han Shan County
Chao Hu City, An Hui Province, People’s Republic of China
(Address of principal executive offices)
(86) 565 4219871
(Registrant's telephone number)
From the filing:
Registrant’s telephone number, including area code (86) 565 4219871
CRJI probably generates about $3 - 4 million USD cash flow from operation per Q. This should be sufficient to serve the short term debt.
I don't think that it is their web site. I don't have phone number of their new management team. I will contact them if I have.
Did the company get all their short term debt notes which were due at different times in 2011 renewed at satisfactory terms to the company?...
Anhui Province Runji Cement Co., Ltd...
http://tomwarm528.en.ec21.com/
Is this the correct website?...If so, is the phone # still correct?...
The filings show a negative currect asset to current liability ratio which has started to improve in recent quarters...
So the short term debt question seems quite important...LJ
Uh-oh, he may cost 3 times as much to keep if he is bilingual...LJ
Uh-oh, he may cost 3 times as much to keep if he is bilingual...LJ
It looks to me that the new CFO speaks English with his first English name as William. I will call him if I get his phone number.
You know if the company is doing OK then the management and Director changes may be listing related...
The large insider control lets the owners maintain the company direction as they choose...
But it looks like they were also showing loan transactions to the company and they may have been questioned...And also questioned as allowing them to qualify as independent outside Director status...
Could be a necessary reason for the most recent management changes IF things are OK in the business...
Within a few months another quarterly filing may help answer some questions...LJ
Here is a board link for China stocks outside the cement sector...
http://investorshub.advfn.com/boards/board.aspx?board_id=21005
Not saying they have the underlying demand support with Japan in an official recession now like the cement sector in China may have but good for discussions...LJ
LIWA, ya there is a lot to like about LIWA. Just needs some news to jump start it again. If they announce that they are buying back shares it might bounce for a few days and get back to the 9 to 10 dollar range. Just being patient. I also own QPSA and consider it a potential life changing stock. Joe
Well cheit, it ain't like the new CEO and CFO just gradeated from college and came in and said that they can run a cement company...They have been high value managers running the cement plants...
Its in the 8-K though...
The management leaving may have been offered cushy gub't jobs for less money and a lot less hours to work for all anyone knows yet...
Sometimes the kitchen can just get old looking even when the food smells good...LJ
I like LIWA a lot and am still buying. LIWA and LLEN are my top 5 positions.
LIWA, I agree that LIWA is a money making stock. Surprised it has stayed down this long after the sell off in the china stocks. One of the few real stocks worth buying out of the china arena. They are likely buying back their shares since announcing earnings, my guess is we see another press release to that affect. Holding this one, it will break the 13 dollar mark this year. Joe
Another to bear in mind, any this Chinese OTC company can go dark including CRJI.
Nobody knows for sure. The problem is that you cannot sell after this news, the bid is now 7 cents.
One major concern I have, not only for CRJJ, but also for all Chinese OTC BB listed stocks, can they file 10K and 10Q on time?
If anything can go wrong for CRJI, it is that they may not file 10Q on time or at all after this news. This is the only worry.
If that's the case, which I hope it is, I would think the investment community deserves a PR. I know it won't be a bash-fest on the former officers, but he should somehow explain the move. It's doubtful we'll get a response/clarification/update anytime soon...let's hope what you say proves to be true.
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China Runji Cement, Inc.(CRJI.OB)
Company Overview
Presently, the Company is one of the largest cement producers and distributors in the north Changjiang region of Anhui, with a 12% market share within a 100 mile radius of its facility. The Company is the only producer of PII52.5 cement (the highest quality cement) in the north Changjiang region of Anhui and Jiangsu Provinces, with 70% market share within a 100 miles radius of its facility. The Company’s main market is in Hefei and Pukou (Nanjing), with total sales of 600,000 tons in the area, representing 60% of our total annual production of one million tons. An additional 30% of total annual production is sold in the cities surrounding Hefei and Pukou, with another 10% being sold in Liu’an and Dingyuan in Anhui and Jiangsu.
Company owns a limestone mine located .5 kilometers from the its production facilities, holding approximately 87 million tons of limestone to be extracted. Runji’s total current limestone reserves could supply two dry process production lines of cement with a daily output of 2,500 tons for 40 years.
The Company produces cement through the advanced dry production process, an energy efficient and environmentally friendly cement production technique, as only 60% of the total output in the region is produced by dry process. The Company has a rigorous quality control system and received ISO9001 quality system certification and international accreditation in March 2006. In addition, our Company passed the national GB/T 19001-2000 standard authentication. The Company’s pollution control exceeds the national standard and received “green building material” certification in 2007.
Products
PII52.5 have specialty in high strength and good adaptability. Mainly used in super high intensive concrete on huge project.
PO42.5 have specialty in high strength and fast harden. Mainly used in normal concrete project, such as high building, motorway etc.
PO32.5 have low heat of hydration and good durability. Mainly used in low intensive concrete project.
PC32.5 have low heat of hydration and high mineral content. Mainly used in low intensive concrete project.
Message from CEO
"Our current cement output is 2,500 tons per day in full capacity currently, and our newly constructed second cement clinker production line with 2,500 tons per day output had been put into production in October 2008," said Mr. Zhao. "We will build up a new waste heat power generator in 2009, which will generate electricity of around 63 million KW annually and further reduce our production costs and increasing margins. We will maintain our best status to fulfill the strong cement market demand in coming years."
Management Team:
Mr. Shouren Zhao, Director & Chief Executive Officer – Mr. Zhao began his career at Zhejiang Zhuji Architecture and Construction Co., Ltd. in 1980, and was appointed as the vice general manager of the company and the chief officer in the Shanghai representative office in 1987. From 1992 to 1996, Mr. Zhao established Dajiangnan Cement Plant in Hainan province where he was the general manager. From 1997 to 2002, Mr. Zhao founded Jiangxi Hengtong Real Estate Development Co., Ltd. and Nanjing Jinbo Real Estate Development Co., Ltd., where he was general manager. Since 2003, Mr. Zhao has also established Nanjing Hongren Real Estate Development Co., Ltd. and Anhui Runji Cement Co., Ltd. Mr. Zhao holds a BA from Zhejiang Architecture Material College.
Ms. Xiangfei Zeng, Chief Financial Officer –Ms. Zeng has over 15 years of financial and accounting experience. Before joining Runji, Ms. Zeng had been the financial controller for China World Trade Corporation since November 2004. From 2002 to 2004, Ms. Zeng was the CFO of Fenet Software Co., Ltd. and from 1999 to 2002, Ms. Zeng worked as a financial analysis manager at Zhuhai Oplink Communication Inc. From 1993 to 1999, Mr. Zeng worked as an accountant and financial manager in a China listed company. Ms. Zeng holds a bachelor's degree in Economics from Sun Yat-Sen University and is a China Certified Accountant.
Mr. Qiuchang Wu, General Manager - Up until 2005, Mr. Wu held senior positions in top Chinese financial institutions such as The Industrial and Commercial Bank and China Huarong Asset Management Corporation, giving him an extensive financial management background. In March 2005, he joined Runji as General Manager.
Mr. Xuanjun Yang, Director - Mr. Yang is a Senior Engineer with over 30 years of experience in construction, engineering and real estate development. From 1973 to 1980, Mr. Yang performed engineering work for Zhejiang Zhuji Wuxie Handicraft Community. From 1980 to 1993, he was the team leader of Construction Brigade in Zhuji Third Building Engineering Co., Ltd. From 1993 to 1997, Mr. Yang was the manager of Zhuji City Caota Supply and Marketing Cooperative Building Engineering Company. From 1997 to 2003, Mr. Yang was an investor in Jiangxi Hengtong Real Estate Development Co., Ltd. and Nanjing Jinbo Real Estate Development Co., Ltd. Since 2003, Mr. Zhao has been a founding investor Nanjing Hongren Real Estate Development Co., Ltd. and Anhui Province Runji Cement Co., Ltd.
Mr. Liming Bi, Director - From 1989 to 1992, Mr. Bi worked at Zhejiang Zhuji Cement Plant where he was the laboratory director and raw materials workshop director. In 1993, he joined Zhuji Bafang Cement Plant where he was in charge of cement craftwork design. In 1993 Mr. Bi joined Hainan Tongshen Dajiangnan Cement Plant where he was responsible for the laboratory and production. From 2002 to 2003, Mr. Bi held the position of technology manager in Zhejiang Zhaoshan Cement Plant and since 2003 has been the vice general manager in charge of production at Anhui Province Runji Cement Co., Ltd. Mr. Bi holds a BS from Shanghai University of Science & Technology.
Corporate information
Share Structure
Authorized Shares : 200,000,000
Outstanding Shares : 78,832,064 (as of January 14, 2009)
Public Float : uncertain (About 10,260,064)
As a result of the two transactions, Shouren Zhao acquired 73,500,000 of the 78,832,064 issued and outstanding shares of common stock of the Company, representing 93.2% of the issued and outstanding shares.
No other directors or officers of the Company acquired any shares of common stock in these transactions. Shouren Zhao was also appointed the Chairman, Chief Executive Officer and President of the Company.
On January 23, 2008, Shouren Zhao transferred 55,000,000 shares of common stock to twenty-one investors in a Regulation S distribution at a purchase price of $.50 per share, including a director, his wife and their two children. Shares were also transferred to members of Zhao’s family at no consideration. The beneficial ownership table set forth in Item 12 of this Annual Report, provides information on the individuals who became beneficial owners as a result of these transfers. Their Schedule 13D’s are a matter of record.
Insider Holdings
Chairman and CEO of China Runji, Mr. Shouren Zhao owns 18,500,000 shares of common stock.
His wife Wei Chu Meng owns 7,500,000 shares of common stock,
his daughter Min Yan Zhao owns 7,000,000 shares
and his son Ting Zhao owns 7,700,000 shares.
Director of China Runji, Mr. Xuanjun Yang owns 9,000,000 shares of common stock.
His wife Cai Ying Jiang owns 6,800,000 share of common stock,
his daughter Jing Yang owns 6,072,000 shares
and his daughter Qiong Yang owns 6,000,000 shares.
_______________________________________________________________________________
Total insider holdings = 68,572,000 shares of common stock.
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