The financing contract in the 10K's Exhibit 10.33 is signed by ZHAO Shijun as the legal representative of Yongye's main subsidiary in China. He is also described as a Director of Yongye's main production subsidiary and as a Senior Manager, Head of Production of Yongye.
In mid 2011, he provided expectations to the Chinese press for annual revenues of about $20 million and profit before tax of about $6 million for Yongye's main production subsidiary. Instead, for 2011 Yongye reported revenues of $390 million and PRC-based earnings before income taxes of $117 million, or about 20x his “guidance.”
Moreover, last year he was quoted in an article distributed widely in Chinese government-sponsored news outlets that since 2009 Yongye has already produced over 15,000 tons of the “breakthrough” product Wujingao (乌金膏), with production to expand to 40,000 tons (or about 3/4 of Yongye's entire current “design” capacity of fulvic-acid based products at its main facility). The article points out the environmental pollution risk and inefficiency of Yongye's current production processes while praising the "new" Wujingao extraction method, citing an IMARSTB official and a university professor, in contrast to the previous glowing official assessment of Shengmingsu. Wujingao's benefits are also prominently featured in a lengthy section of Yongye's latest "use and efficacy" instruction manual for Shengmingsu, which makes it clear that Shengmingsu and Wujingao have been “developed” and are being “marketed” jointly.
But according to the 10K, Wujingao is not a Yongye product. Yongye only makes and distributes crop and animal nutrient products under the trade name Shengmingsu (the two “new” crop products introduced by the company last year have the exact same content and pricing as the “old” crop product). Moreover, Yongye's CFO explicitly stated on an earnings call in March 2011 that Wujingao was not developed (and was not to be marketed ) by Yongye but by a company that belongs to Yongye's Chairman.
Can't sell not trading. Can't buy not trading. Can't believe you are getting paid to put out your gibberish. Nothing to be done till it reopens. Have a great day. Have a hold since that is all we can do.