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Orient Paper, Inc. Message Board

no_silencio_asensio 196 posts  |  Last Activity: Jun 24, 2016 2:05 PM Member since: Apr 13, 2012
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  • no_silencio_asensio no_silencio_asensio Jun 24, 2016 2:05 PM Flag

    It is instructive to look at how the assets are allocated, between HBOP and ONP. From the 2015 10-k, p. F-28, we can see that on 31 December 2015:

    HBOP owns $205 million in Total Assets
    Enterprise-wide, there are $239 million in Total Assets

    Thus, HBOP owns 86% of Total Assets

    Discussions on ONP book values must exclude the HBOP book value. ONP does not own HBOP. This is a fact proven within the SEC filings and it has been detailed within this thread.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 24, 2016 1:48 PM Flag

    Liu's conflict of interest, which broke@40 refuses to acknowledge. Fortunately, the rest of the world doesn't follow that moron.
    2015 10-k under Item 1A. Risk Factors, p. 14...

    The shareholders of Orient Paper HB may have potential conflicts of interests with us, which may adversely affect our business.

    We operate most of our businesses through Orient Paper HB. Our Chairman, Chief Exertive Officer and 25.79% shareholder, Zhenyong Liu owns 93.26% of the equity interest in Orient Paper HB. Conflicts of interests between his duties to us and to Orient Paper HB may arise. We cannot assure you that when conflicts of interest arise, he will act in the best interests of our Companyor that any conflict of interest will be resolved in our favor. These conflicts may result in management decisions that could negatively affect our operations and potentially result in the loss of opportunities.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 10:44 PM Flag

    The 2009 10k proves the transfer of assets from ONP shareholders to Chairman Liu and his insiders occurred. The shareholders did not vote on this. Liu paid nothing for this. Instead he agreed to provide ONP with 80% of HBOP's net profits.

    From the 2009 10k, page 4:

    Effective June 24, 2009 Baoding Shengde entered into a number of contractual arrangements with HBOP and the original shareholders of HBOP, which were amended on February 10, 2010...

    (i)

    Exclusive Technical Service and Business Consulting Agreement

    The exclusive technical service and business consulting agreements, entered into by and between Baoding Shengde and HBOP, provides that Baoding Shengde shall provide exclusive technical, business and management consulting services to HBOP, in exchange for service fees including a fee equivalent to 80% of HBOP’s total annual net profits. The agreement is terminable upon mutual written agreement

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 5:47 PM Flag

    The OP proves ONP had 100% equity ownership of HBOP. This had also been reported in previously filed 10ks with the SEC. ONP had been a 100% equity owner of HBOP beginning 29 October 2007. On 24 June 2009, Liu restructured the assets, transferring HBOP to himself and a couple of other insiders as a VIE, providing only 80% of net income to ONP and keeping 20% for the HBOP owners. From the 2009 10k, pages 3-4:

    On October 29, 2007, Orient Paper entered into an agreement and plan of merger (the “Merger Agreement”) with (i) its own wholly owned subsidiary, CARZ Merger Sub, Inc., (ii) Dongfang Holding and (iii) each of Dongfang Holding shareholders (Zhenyong Liu, Xiaodong Liu, Chen Li, Ning Liu, Jie Liu, Shenzhen Huayin Guaranty & Investment Company Limited, Top Good International Limited, Total Giant Group Limited, Total Shine Group Limited, Victory High Investment Limited, Think Big Trading Limited, Huge Step Enterprises Limited, and Sure Believe Enterprise Limited) (the “Dongfang Holding Shareholders”)....

    As a result of the merger transaction, Dongfang Holding became a wholly owned subsidiary of Orient Paper, which, in turn, made Orient Paper the indirect owner of Dongfang Holding’s operating company subsidiary, HBOP. HBOP, the entity through which we operate our business currently has no subsidiaries, either wholly or partially-owned.

    Due to Dongfang Holding’s inability, as the 100% owner of HBOP, to complete the registration of HBOP’s capital under its name within the proper time limits set forth under PRC law, it was not recorded as the registered owner of HBOP in PRC. As such, Dongfang Holding’s ownership of HBOP was deemed to be held in trust by Zhenyong Liu, Xiaodong Liu, and Shuangxi Zhao. In connection with the consummation of the restructuring transactions described below, Dongfang Holding directed its trustees to return its shares in HBOP to their original shareholders...

    Obviously, this is an important follow up on the original post. Research!!!!

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 1:35 PM Flag

    Update!

    Congratulations to anyone that sat around holding their pecker in their hand during Q1 2016 instead of buying ONP like the 3 new and foolish institutional buyers stupidly decided to do. The lowest prices for each of the three months of that quarter are:

    January - $1.20/sh
    February - $1.17/sh
    March - $1.18/sh

    The mrt is at $1.04/sh. Those doing nothing with respect to ONP aside from holding their peckers in their hands while participating on the ONP YMB are better off by at leas t11% in just 3 months. This is phenomenal! Congratulations!

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 1:26 PM Flag

    Operating cash flows belong to the equity owners. Are you going to invest in company A because of company B's operating cash flows? Only if company B's operating cash flow, flows through to company A's investing cash flows. If you spend all day, every day talking about company B's operating cash flows and they never appear in company A's investing cash flows... then you are talking nonsense.

    Company A = ONP
    Company B = HBOP

    Sentiment: Strong Sell

  • Chairman Liu signed all of these audited documents. You call these lies, calling both the chairman and the auditing firm liars. So... once again...

    From the 2009 10-k, pages 3-4:

    On October 29, 2007, Orient Paper entered into an agreement and plan of merger (the "Merger Agreement") with (i) its own wholly owned subsidiary, CARZ Merger Sub, Inc., (ii) Dongfang Zhiye Holding Limited ("Dongfang Holding") and (iii) each of Dongfang Holding shareholders (Zhenyong Liu, Xiaodong Liu, Chen Li, Ning Liu, Jie Liu, Shenzhen Huayin Guaranty & Investment Company Limited, Top Good International Limited, Total Giant Group Limited, Total Shine Group Limited, Victory High Investment Limited, Think Big Trading Limited, Huge Step Enterprises Limited, and Sure Believe Enterprise Limited) (the "Dongfang Holding Shareholders").

    Dongfang Holding is a holding corporation with no operations and was formed on November 13, 2006, under the laws of the British Virgin Islands (“BVI”). Dongfang Holding owns all of the issued and outstanding stock and ownership of HBOP.
    ...

    As a result of the Merger Transaction, Dongfang Holding became a wholly-owned subsidiary of Orient Paper, which, in turn, made Orient Paper the indirect owner of Dongfang Holding's operating company subsidiary, HBOP. HBOP, the entity through which we operate our business currently has no subsidiaries, either wholly- or partially-owned.

    The following diagram sets forth the current corporate structure of Orient Paper:

    Orient Paper, Inc.
    (Nevada company)

    100% ownership

    Dongfang Zhiye Holding Limited
    (BVI company)

    100% ownership

    Hebei Baoding Orient Paper Milling Company Limited
    (PRC company)

    Neither Orient Paper nor Dongfang Holding has any operations or plans to have any operations in the future other than acting as a holding company and management company for HBOP and raising capital for its operations.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 1:09 PM Flag

    Institutions as a whole were met liquidators to the tune of 69 thousand shares.Sabby and Blackrock both sold and continue to sell respectively at losses. Anyone that bought in Q1 2016 is already sitting on a big loss.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 12:57 PM Flag

    The original post explains it best. Any posts on equity, operating income, and operating cash flows needs to be understood within the context of the VIE arrangement. These financial statement figures are not meaningful because of the lack of equity ownership under the VIE arrangement.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 12:17 PM Flag

    The same two pumpers post endlessly each day about HBOPs operating income, HBOP's expected operating cash flows, HBOPS's equity (HBOP owns 86% of the total assets according to the 2015 10-k), and capital expenditures benefitting HBOP. I have never witnessed such effort wasted on trying to pump up a company, which is not owned by anybody here. In fact, HBOP isn't even up for sale nor is it traded in any manner! You both are incompetent fools, broke@40 and stungsailor! The incompetence is so intense that it boggles the mind of any rational inveestor.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 12:03 PM Flag

    Don't trust anyone here, stungsailor and broke@40 must have done that and this explains their poor track record. Check sources provided throughout this thread, all on file with the SEC. Do you trust the auditors of ONP? Liu signed these documents. Do you trust facts contained in audited forms signed by chairman Liu? Be careful what you wish for.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 11:45 AM Flag

    Reiterating this... read through the entire thread for sources. Seeing as ONP's assets total, at most, $34 million, and there are over 21 million shares outstanding, ONP's book value cannot possibly be anything equal to or greater than $1.62/sh. You cannot include the HBOP assets when calculating ONP's book value. ONP does not have equity ownership of HBOP. HBOP is owned by chairman Liu and a couple of other insiders. HBOP is a VIE. Its relationship with ONP is contractual and terminable. The VIE contracts are also illegal in the PRC, rendering them unenforceable. Be honest about what you are investing in. Otherwise you will wind up broke at forty.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 11:34 AM Flag

    Your obsession over other posters here explains your poverty. Choose another path and let go of your demons!

    Expect ONP to go dark. Sell now and avoid.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 23, 2016 10:31 AM Flag

    Chinese companies like ONP, that utilize a VIE arrangement as the primary source of their reported business revenue gives the illusion to ignorant investors that the listed recipient on the VIE contracts has equity ownership in the VIE. Some investors are incapable of reconciling what they see on a balance sheet, income statement, and cash flow statement with what is described in the notes and what is allowed by law in the PRC. Ignorant investors see an equity balance, operating income and cash flows from operations, but anything belonging to the VIE does not really belong to the contractual beneficiary. GAAP will probably address these subtle differences in the future. At least they should.

    Any posts on equity, operating income, and operating cash flows needs to be understood within the context of the VIE arrangement. These financial statement figures are not meaningful because of the lack of equity ownership under the VIE arrangement.

    Sentiment: Strong Sell

  • no_silencio_asensio by no_silencio_asensio Jun 23, 2016 8:34 AM Flag

    Whether he is blowing a load of cash on Chinese junkers, blowing a load of men on a boat, or receiving a blowing load from lonely twinks, he is all about blowing loads. For a chuckle, check out the definition of "sunnsailor" on Urban Dictionary!

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 22, 2016 3:13 PM Flag

    broke@40 should have sold over $2.50 when it ran up to $3/sh. Now he laments all those other purchases in the $2.20-$2.30 range too. $1.04/sh and a bag-holder for 3 years. Tough toenails... anyone sitting around doing nothing but holding their pecker is better off, and a proven better investor than broke@40. Pathetic!

    Sentiment: Strong Sell

  • He is like a beggar on the street begging anyone on this board to buy ONP. The liquidation continues. We still have a lot of losing before this hits $0.00

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 22, 2016 12:32 PM Flag

    Update!

    Congratulations to anyone that sat around holding their pecker in their hand during Q1 2016 instead of buying ONP like the 3 new and foolish institutional buyers stupidly decided to do. The lowest prices for each of the three months of that quarter are:

    January - $1.20/sh
    February - $1.17/sh
    March - $1.18/sh

    The mrt is at $1.04/sh. Those doing nothing with respect to ONP aside from holding their peckers in their hands while participating on the ONP YMB are better off by at leas t11% in just 3 months. This is phenomenal! Congratulations!

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 22, 2016 12:05 PM Flag

    broke@40 continues to focus on Blackrock's and Sabby's initial purchase of ONP while ignoring their decisions to liquidate ONP at a substantial loss. They continued to analyze their decision and decided to reduce their exposure significantly. Sunk costs are in the past. They wisely chose to sell and move on.

    Sentiment: Strong Sell

  • no_silencio_asensio no_silencio_asensio Jun 22, 2016 10:34 AM Flag

    If you "invest by Yahoo", i.e. make your investment decisions by only looking at Yahoo!, you are going to wind up being broke at forty. Investing in Chinese companies requires far more effort than glancing at the Yahoo! financials. Read through this entire thread and look at the sources I have referenced before investing in ONP, If you are already a bag-holder it is not too late to liquidate. The incentives are set up for this company to be an eventual zero.

    Sentiment: Strong Sell

ONP
1.05-0.01(-0.67%)Jun 24 4:00 PMEDT