Replies to post #9695 on China Unlimited

[RealDutch]

Here are the exact numbers, of how much of it is in the VIE

Orient Paper has no direct equity interest in Orient Paper HB. However, through the Contractual Agreements described above Orient Paper is found to be the primary beneficiary of Orient Paper HB and is deemed to have the effective control over Orient Paper HB’s activities that most significantly affect its economic performance, resulting in Orient Paper HB being treated as a controlled variable interest entity of Orient Paper in accordance with Topic 810 - Consolidation of the Accounting Standards Codification (the “ASC”) issued by the Financial Accounting Standard Board (the “FASB”). The revenue of the Company generated from Orient Paper HB for the years ended December 31, 2016, 2015 and 2014 were 99.51%, 99.72% and 96.48%, respectively. Orient Paper HB also accounted for 86.23% and 85.96% of the total assets of the Company as at December 31, 2016 and 2015 respectively.

To answer your question, it has to be someone (or a group) from China. You should look for the contractual agreements in the exhibits in the 10-K.

00.6 Call Option Agreement, dated June 24, 2009, by and between Orient Paper HB, Orient Paper Shengde, and the shareholders of Orient Paper HB, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on June 30, 2009
10.7 Share Pledge Agreement, dated June 24, 2009, by and between Orient Paper HB, Orient Paper Shengde, and the shareholders of Orient Paper HB, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on June 30, 2009

Etc.

So now we have to go back to June 30, 2009 in the filings.

https://www.sec.gov/Archives/edgar/data/1358190/000114544309001637/d25065.htm

Apparently it's HBOP (Hebei Baoding Orient Paper Milling Company Limited). Who is HBOP? That's actually the VIE itself, Orient Paper HB. Who are the owners?

The loan agreement, entered into by and between Baoding Shengde and Zhenyong Liu, Shuangxi Zhao, and Xiaodong Liu, the shareholders of HBOP,

Zhenyong Liu is the CEO. No surprise there.