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Yongye International, AŞ Message Board

  • kvatt2004 kvatt2004 Apr 11, 2011 11:19 PM Flag

    Answers to my questions from Yongye management

    All,
    I tried to get answers for some more questions. Based on the responses copied below, I think management is very serious and going to initiate action very soon (as also highlighted in today's press release).

    I like responses to 7 & 8 below.

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    See answers to your questions from the Company below.

    Thanks so much for responding to my last mail. Could you also please help me with the questions below?

    1. Does Yongye Intl have to pay VAT on their liquid plant nutrient or animal powder nutrients sales to the government?

    We do not have to pay VAT.

    2. The china-yongye.com website has an English option on the main home page, but it's not working. Could you please let me know if that's an error on your website or if there is anything wrong on my browsers?

    It is an error. For Shengmingsu related info in English, please go to www.yongyeintl.com

    3. I understand that Yongye's preference has been to retain cash for growth related initiatives. But with the stock price being manipulated and hammered continuously by the short sellers, a buyback of at least some shares would probably help. My feeling is that it's a tremendous return on capital at the current share prices (and with the projected growth this year and next). I would greatly appreciate if you could please share what the company's thoughts are on this at this point.

    Our board is evaluating different options as mentioned in the last PR.

    4. Most of the long term retail followers of YONG seem to have sold at losses and are just waiting on the sidelines because of this ridiculous manipulation. I have always liked the way you respond immediately with press releases whenever doubts are cast. Could you please let me know if the company is planning to do anything else to take care of this manipulation (like filing a lawsuit etc)?

    Our board is evaluating different options, The management team is also working diligently on potential actions to take.

    5. Any open market purchases of the company stock by the company management (especially Mr. Zishen Wu) would probably send a strong signal that management is aware of how undervalued YONG is willing to support the stock price. I understand most of the top management have been awarded a lot of restricted shares 6 months ago, but buying in the open market is different. What are the company's thoughts on this?

    Our board is evaluating different options, The management team is also working diligently on potential actions to take.

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    Continued in next post

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    • Thanks for your effort to get the truth out in open.

      Can you ask management to invite these analysts or other people who post these allegations to their main office and show all that they need to see and clear all doubts?

      Too many Chinese companies are fraud so it is natural to doubt all until satisfied.

    • 6. The company does not release any provincial distributors names in its filings and cites competitive reasons. Could you please help me understand exactly what the possible issues/problems are if you were to release them? I think this is the main issue/weapon for the short sellers at this point.

      We made our position clear in our earnings call. Also, the allegations that our distributors are related parties are totally false, other than the disclosure we provided in our filings.

      7. It looks like some investors have tried to dig your SAIC, SAT filings and they all seem to match with your SEC filings. I think it would immensely help if the company can release the SAIC filings to the investors publicly as YONG is probably one of those rare companies for which they actually match. Please share your thoughts on this.

      We do file consistently in both China and U.S. since the inception of our operating affiliate in China. We do not believe there is an areas that any investors have any questions on. Even short sellers admit that they cannot claim our filings are different. We will evaluate whether announcing our previous Chinese filing will be effective.

      8. Looking at the current short position and the way the option activity is going on, I think there is a decent amount of "Naked shorting" going on here which is clearly illegal. It has happened with some companies like Overstock.com (OSTK) and Fairfax Financial and they fought against that openly. Is the company aware of any naked shorting going on and what steps (if any) are you going to take to address it? I know it might be a drag on management's focus/execution/time/money, but I think it's a tremendous value considering the trade off and the loss in market capitalization of the company.

      We are taking action on this.

      I have a significant stake and have been a great supporter of YONG over the last year and half. I hope you understand the investor concerns and continuing executing as you always do.



      Thank you for your support of Yongye. We are committed to delivering solid financial results and maintaining highest level of business integrity. You can also trust that we are working diligently to address those short term capital market issues.

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