YaSheng Group (HERB)

[RealDutch]

You still don't seem to get it Snow. SIAF is a lot more fraud sensitive than HERB.

1) Solomon and his self-chosen CFO can make up any number they want. When Solomon isn't the CFO himself, that is. Because he is most of the time.

HERB's CFO has been working for the government almost his entire life. They will hang him if he fudges the numbers.

2) There is no way we can verify how many fish SIAF is growing etc. They do hide certain info from us in the filings. They don't tell us the truth about certain loans etc.

HERB's ingoing and outgoing assets heve been appraised in 2015 during the asset swap.

Did you know how they picked the appraisal firms, Snow? The SEC asked them. They also asked the names. So they disclosed it in the DEFM14C.

YaSheng hired two assets appraisal firms, Beijing Northern Yashi Assets Appraisal Co., LTD for the swap in and JinChang Niedu Joint Assets Appraisal Firm for the swap out of the assets.

The two firms were selected randomly from the list, issued by China Appraisal Society, of several institutions with good reputations and selected through competitive negotiations. Neither YaSheng nor any affiliates had any business transaction with these firms in the past two years.

The costs of the appraisal was 1.6 million Yuan (about $250,000) for each appraisal, and the fee was paid when the appraisal reports were completed.

Beijing Northern Yashi Assets Appraisal Co., LTD, founded in 1993, with the qualification of evaluating the securities and futures, is qualified by China Securities Regulatory Commission and the Ministry of Finance, and JinChang Niedu Joint Assets Appraisal Firm (special ordinary partnership) has the appraisal qualification issued by the Department of Finance of Gansu province.

Summary of appraisal by Beijing Northern Yashi Assets Appraisal Co. Ltd.: The appraisal is based on fair value of the assets as of December 31, 2014 of the long term lease management rights in the five to be acquired by Yasheng’s wholly-owned subsidiary, GAAT. The appraisal took into account the capitalized value of the land eases, the location of the properties, the utmost utilization of the land, the supply and demand of similar properties, the profits that can be generated from farming the land and other factors. Based on these factors, the appraisal of the lease management rights to be swapped in was $USD 2,308,149,500.

Summary of appraisal by JinChang Niedu Joint Assets Appraisal Firm: The appraisal is based on fair market value and includes all the net assets related to seven companies which hold the land use farming rights to the agricultural properties currently held by GAAT. The appraisal included the total assets and liabilities. The appraiser utilized the market approach, the cost approach, and the income approach and concluded the swapped out assets as of December 31, 2014 were worth $USD 2,262,478,200.

Based on appraisals we have received, copies of which are attached as exhibits to this Information Statement, we believe that the value of the agricultural lease management rights being swapped in exceeds the value of the agricultural lease management rights being swapped out:

All that said, it is rather obvious that we are dealing with amateurs, in certain ways at least. But that ony increases our chances that they end up going private, which will maximize shareholder value.

Let me ask you this though. Why do you think risk is so high if the company spent half a million dollars on appraisals, above and beyond the standard audits?