China Growth Stocks

[derek2000]

YHGG - Intangible assets

YHGG's intangible assets are actually very tangible. They consists of the land use rights for 250K acres of arable land.

Anybody who have been in China knows that the land use right is a very valuable commodity in China, and can be transferred with significant premium over the "cost".

According to 10K, Page F8:

"k)Intangible assets

Intangible assets consist of land use rights and are recorded at cost. Under PRC’s current property rights regime, use rights for specified periods (e.g., 40 to 70 years) can be obtained from the state through the up-front payment of land use fees. The fees are determined by the location, type and density of the proposed development. This separation of land ownership and use rights allows the trading of land use rights while maintaining state ownership of land. The Company has over 250,000 acres of arable land that are utilized for grazing, cultivation, and reclamation, of which 50,000 acres are under cultivation using the latest scientific technologies to produce a wide variety of agricultural products."