Zuoan Fashion Limited America (ZA)

[unifin10]

Any updates on the ZA/ Desheng venture?

I hope they will report as XNY did.

Unifin

[taio100]

Guess they miss the april 31 filing date for the annual report that most companies follow.

[unifin10]

Indeed, there is no official bid-ask, but you can trade if you would like to, but set your own price.

Any news on Zuoan in the meantime?

[taio100]

Has anyone been able to buy or sell shares since there is no bid or ask price?

[taio100]

That should be his brother Tianzhen Hong. He's the third one in the picture
http://blog.sina.cn/dpool/blog/s/blog_1540119450102wdo2.html

[kindama]

James Hong front and center in this photo of the Desheng management team



Or maybe his brother looks exactly like him.

I believe Desheng aspires to be a listed company so eventually the value of ZA's investment will be clear.

[taio100]

The market cap is ridiculous at $695,000. The financial statements say they pay GHP Horwath $234000 to audit their books. But at this point it's hard to believe anything they say in their filings. The merger with Deseng is complete I think because they list Hong Tianzhen (brother of James Hong and director and vice general manager of ZA) as one of their partners. It is just a lot of frustrating cow manure at this point.

[RealDutch]

111,276,113 shares / 16 (ADS) * 0.11 = market cap of $765,000

Is that correct?

[IPO$]

I don't know. Chinese police need to be contacted. SEC is useless.

[unifin10]

Are there no IPO investors or China resident investors taking action on this debacle?

[kindama]

XNY news:

http://mt.sohu.com/20160307/n439596096.shtml

http://www.szonline.net/rollnews/20160311/364574.html

[unifin10]

I would have expected that the ZA / Desheng deal would cease after the stock price collapse.

[unifin10]

Do you have a link to the XNY initiative?

[taio100]

If nothing else, their products are still selling online. At least they haven't disappear completely off the planet. Hopefully they will file the annual report in late April or mid May as they did last year.

[kindama]

Here's the Desheng site:
http://dzd.wddcn.com/vshop/index.html?sid=21773&uid=93308

I think it's designed from the start for viewing on phones/tablets.

Funny thing about this strategy is that I think XNY is about to copy it (launch its own multi-brand MLM type mall).

[Kinny]

Would you post the link?

Just curious, would like to take a look at it.

The Desheng website looks quite unprofessional to me.

[unifin10]

Last time I was in contact with Mr. Wang he hinted that they were working on measures to increase stock price (it was September 2015). Don't know whether he is still working for Zuoan.

The Desheng website looks quite unprofessional to me. Wonder whether ZA is still mentioned on it as owner?

[IPO$]

I can't believe our US government was that stupid to allow all these Chinese companies to reverse merge without any due diligence. We have some of the most stupid people in our government

[Kinny]

If you're in China sitting on millions and millions of dollars in a company account and all you have to do is go withdraw the money and label it as some kind of expense or inventory "write down" and their legal system could care less about looking into it. It would be the easiest thing to do. We here in the USA can do nothing about it.

The Chinese don't care about the shares. Just us Americans and we can do nothing.

There's no need for him to pump the shares. Why bother. Just take the money in the bank and just simply.... fade away.

[taio100]

I was hoping they issued the new shares for the acquisition of deseng. It doesn't make any sense that they paid out about $5mil in dividends but tried to raise $3mil with new shares. It sucks that they stop filing quarterly or annual reports. Considering that the CEO owns over 50% of the shares, don't know why management would sit back and do nothing about the share price. Even if the company is a fraud, he could have pumped the share price and dumped it. Confusing and frustrating.

[Kinny]

Dividened - I doubt that will happen again.

My guess is when they issued that dividend last time, the management used that event to clean out the rest of the company bank account. There was no need to issue new shares last year. They had tons of money if the balance sheet was believable. Which I don't think it was. And now they don't file reports .. they don't have to being on the pink sheets or whatever color they are. There is no way of knowing the truth from where we stand.

[taio100]

Has anyone been able to get in touch with management?? It seems they are selling leather belts, wallets and bags online. Any word on the acquistion of deseng? It would be nice if they gave a dividend as they have done in the past.


https://zuoanxb.m.tmall.com/shop/shop_auction_search.htm?spm=a1z5f.7632052.0.0 .

[kindama]

ihub doesn't show chinese characters. Here are google search results for Desheng:

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=%E5%BE%B7%E5%8D%87%E6%97%B6%E8%A3%85

[unifin10]

Thanks, I will try to get it translated.

I don't find anything on the Desheng venture - Any news on that?

Unifin

[IPO$]

They tried I guess.

[kindama]

VIPshop flash sales

Looks like zuoan has had some recent activity:
http://brand.vip.com/ZUOAN/comment/

See also customer feedback on tmall/taobao:

https://rate.taobao.com/user-rate-UvFcWMCQYMGxWMQTT.htm?spm=a1z10.1-b.d4918101.1.ki7pHq

https://rate.taobao.com/user-rate-UOmvbvm8WOFH0.htm?spm=a1z10.1-c.0.0.IsCdVx

[kindama]

Different company? I don't think Zuoan ever did anything with Wellington Shields.

[IPO$]

What did they do with the money they just raised through Wellington Shields? Took off?

[Stockpicks22]

This company is done. Go to their website. They haven't updated their fashion collection since fall/winter 2014. Try to click on their investor relations link and it says "The requested file was not found".

[unifin10]

Great find, thanks! Their telephone numbers are always "busy" - probably unable to answer in English.

[kindama]

Not that I'm aware of. Company continues doing business as before.

Zuoan director Wenxin Zhu is Chairman of a company that has filed to list on China's "New Third Board". On page 29 of the listing document it shows his company affiliations including serving as an independent director of Zuoan Fashion Ltd.
http://file.neeq.com.cn/upload/disclosure/2016/2016-01-27/1453879954_314367.pdf

If Zuoan were considered defunct or disgraced then it would probably not have been mentioned.

[unifin10]

Anything new from Zuoan recently?

Unifin

[RealDutch]

Dark or not, I think they want to leave the US. The first sign was the IR guy that left or was fired (I don't know) a year ago. They also haven't hired a new CFO for over a year. So these are clear signs that they are leaving.

They may very well relist in China somewhere. Perhaps even within a year. So I definitely think there is value here at 0.6% of book. Keep your position below 2% IMO. If you can find 10 companies like these then things could get very interesting in a few years.

[jyyoo]

So what do you think? It's just gone dark, or they have plans?

[kindama]

Solid performance from ZA today

[kindama]

I doubt that it's due to market maker due diligence because there are confirmed frauds with quoted prices (e.g. LIWA).

[RealDutch]

I don't know why they are grey instead of pink. Could simply be lack of interest from market makers.

That was my guess too, but I couldn't believe it. Until I read some more about it today.

The stock was suspended. Usually that is bad news, because there might be fraud involved. So the market makers have to file a Form 211. If they don't do it, the stock will end up on the grey market. And they sometimes don't, if they suspect fraud.

But the SEC didn't suspend the stock. It was NYSE. Because the market cap dropped below $15M. And yet the market makers couldn't be bothered at all.

It still seems fishy to me. How on earth can a company who's market cap drops below $15M lose all its market makers?
Crazy.

[kindama]

"HORMONE BELIEVE ONESELF"

current zuoan ad:

[unifin10]

thanks, but indeed, we do not know what the Desheng relationship means: is it control (to be consolidated) or just some kind of investment as a strategic alliance in order to market the listing status.

Maybe the drop in stock price has undermined the relationship and initial intentions. Last September mr. Wang mailed me that they were working hard on getting a better share price, but it didn't transpire (yet?). At least I would expect them to appoint an English- and IFRS-competent CFO, but that did not happen yet.

Hong probably has a lot of other operating issues getting his designs out, but the total neglect of investor relations is disgraceful.

[kindama]

DeSheng/Zuoan held a joint news conference on June 22 to announce that Zuoan was buying Desheng. I've never seen any details of the transaction. Desheng consistently says that it has 4 shareholders (one of which is Zuoan).

News for Zuoan and Desheng
http://www.baidu.com/s?wd=%E5%B7%A6%E5%B2%B8%20%E5%BE%B7%E5%8D%87%E6%97%B6%E8%A3%85&rsv_spt=1&rsv_iqid=0xa6ce8293000037c6&issp=1&f=3&rsv_bp=1&rsv_idx=2&ie=utf-8&tn=baiduhome_pg&rsv_enter=1&rsv_t=c347cxXVpUWlLHQMNWpoIglMZ7OmXtBRmMjdK2FftGfTC%2B9OkzGBtgXgOBMqWGw1ZEAD&oq=%E5%B7%A6%E5%B2%B8%E6%9C%8D%E9%A5%B0%E6%B4%AA%E9%87%91%E5%B1%B1&rsv_sug1=4&rsv_pq=93bdd60c00003c00&rsv_sug3=4&rsv_sug2=1&prefixsug=%E5%B7%A6%E5%B2%B8%20&rsp=0&inputT=18674&rsv_sug4=18674&rsv_sug=1

Desheng's business requires members of the public to spend 898 RMB to open a Desheng "store". A lot of Desheng's marketing is based on trying to build an image of credibility and reliability so that people will make this upfront investment. It always cites the Zuoan connection as one of the reasons it can be trusted. If you are a Zuoan shareholder this seems quite ironic. But if nothing else, I think it creates a heavy barrier to Zuoan completely screwing its investors because that would undermine the public trust essential for Desheng's success.

The Zuoan brand continues to operate as one of many brands available on the Desheng platform, also via other platforms (Taobao/Tmall/Yintai/JD), and through its traditional retail network.

Desheng is basically a competitor of Taobao/Tmall. The idea is that once people have joined the platform and set up their "stores" they will be strongly motivated to market through their own personal networks (similar to MLM).

The Zuoan corporate website hasn't been updated in about two years.

All of this information is based on third party sources and any investment in Zuoan is high risk without official confirmation of the details of the Desheng relationship.

One of the frustrating things is that this might be a really brilliant idea.

[unifin10]

Hi, don't see any dynamic link between the De Sheng site and Zuoan. The advertising sites that you refer to are Tmall and Taobao, but they are not related to Desheng are they?

[kindama]

Certainly in limbo. Unfortunately, requirements for unlisted foreign companies are very light.

I don't know why they are grey instead of pink. Could simply be lack of interest from market makers.

In this situation I think it's very valuable to see that the business is still active. That's quite different from VLOV which is trading even though I don't see any evidence that the company is still operating.

I think Zuoan must resolve the status of its listing in order to move Desheng forward so I don't think the stock will just sit here for three years.

[RealDutch]

Do you know why they ended up on the grey market instead of Pink?
Also, they didn't report quarterly earnings this year. I know they don't have to, as a foreign company, but it doesn't bode well for the 20-F. Also, no shareholder meeting apparently. And all because they were delisted?

Those are some of the negatives. Perhaps we should assess the situation asif they were dark already. And then it's not a screaming buy. LOL.

[kindama]

Holiday Promotion

https://zuoanxb.tmall.com/

[kindama]

1212 Shopping Carnival:
https://zuoan1973.taobao.com/?spm=a1z0b.7.0.0.ZZwxdS

[kindama]

Curious pickup in volume. 132,820 shares today. 80,457 last Thursday.

[kindama]

Various Desheng videos:

http://www.soku.com/search_video/q_%E5%BE%B7%E5%8D%87%E6%97%B6%E8%A3%85?_rp=1449500006819QEUrVf

[unifin10]

The acquisition seems to have occurred when they were fully listen though.

[kindama]

Unfortunately reporting requirements for unlisted foreign stocks are very limited. Have to file a 20-F. beyond that, I think they have to file in accordance with their home country regulation. In this case that means Cayman Islands. So I think they should have reported the acquisition while they were listed, but may not be required to report it now that they are OTC.

[unifin10]

Something is moving for the Zuoan look-alike XNY.