YaSheng Group (HERB)

[grantastic]

"Hope" is not a strategy.

Allegations are being made of fake assets. a quick skim of the last 10q is concerning: a single shareholder has 83% of the shares. This means common shareholders are powerless.

When a single owner has majority control, they don't "have" to do anything. they can take the company dark, delist it, and stop reporting anything to anyone, and suck all the assets out leaving nothing but a useless corporate shell.

Looking at the latest 10q, i see all of the "profit" is being poured into buying "intangible assets". These intangible assets have fishy written all over them.

(k) Intangible assets

Intangible assets consist of 30 years use right of Fruit vegetable franchise base and are recorded at cost. The cost of fruit vegetable franchise base use right was amortized over 20 years using the straight-line method.

the book value of intangible assets started the 2022 year at $123m. This means they should depreciate *AT LEAST* $6.2m (5%) ... and even more if they've already depreciated previous years from a higher cost basis. yet, the entire depreciation (tangible + intangible) for the 2022 year is only $300k.

The first 6 months of 2023 indicate only $70k depreciation, while another $5m of these "intangible assets" were added.

So questions investors should ask:

- What/where exactly are these "use rights"? Who is the counterparty?
- How do they know the price being paid is fair?
- Why are they not being depreciated on the books?

I am still holding onto hope here. They are going to have to do something eventually IMO. Even if they don't, the company is profitable and way undervalued at current prices.