China Growth Stocks

[white_tiger]

Traderfan,

I have not probed into this company much. YHGG share structure is generally off my radar. Seems like they also have wide fluctuations in depreciation expense which can be used to inflate net income, but there may be valid reasons for this. The question i had was how will a company of YHGG size be able to grow? Seems like they answered the question with this quarter. I Will be curious to read the filing and see how much of the increase in net income came from change in depreciation expense. Too bad the company is not listed.

Liquidity seems sufficient, but you never know:

Investors may assume that YHGG may need to tap the financial markets for funding purposes:

"Expansion of our capacity is needed to satisfy increased demand for our products. In order to increase production in a meaningful way capital investment will be needed to build additional capacity to satisfy the projected demand of our products."

Although, current verbiage clearly indicates that the company has enough internal funds to accomplish this task:

"We believe that our cash on hand and cash flows from operations, together with the net proceeds from the private offering referenced above and anticipated additional cash resources, will meet our expected capital expenditure and working capital for the next 12 months."

http://geoinvesting.com/companies/yhgg_yasheng_group/research/research/0025825