I have done lots of researches of this company and its owners.
The company is of poor capital stucture. Hope co (53%) , Dingxi co (17%) , Zhiyuan (8.8%), the majority of shares (above 79%) are controlled by the owners/insiders, like Dingxi is Ceo Wang's company. What we playing here is just the rest 20% shares, the current sp can not reflect the true thing of this company, because of the dead volume casued by the poor ownership structure.
I reckon they were overly overly confident at the time of preparing this poor ownership structure, dooming everyone include themselves, found out but now trapped by the esrow, can do nothing to change now. I see locals comments in other bars, they even dont touch a share which has a holder holds 20%, in some cases 20% volume can crash sp, how about 70-80%.
The next worried thing is they say to make exposure in Australia, to open or take over something but never happens after one and half year. Their major production activity is all in Heilongjiang, China, They still running Shangzhiyulong Cattle (not big, couples of thousand cows), Xinhua Cattle (bigger). For us we dont know what they can or will do except making raw milks, how to establish the current raw milk business with Australia. Additionally the Ceo Wang has some different businesses to take care in Canada, Mongolia and China, mining, finance and some funny things, so distracted?
The good things are
1. More than half of esrow is removed for the second (ceo's company) and third shareholder, they do not dumping, even not to sell one share. After full removal of the esrow in Apr 2018, if they still have a plan and the strength, something will happen. Check today's seller at sp between 0.07-0.2 sell total 666,355 units, a small force can make the sp back quickly, but must resolve the dead volume firstly by an effective and true method.
2. the Chairman has lots business experience for decades in China, and is a famous guy in Heilongjiang province, China.
3. and Andrew is still there and salary increased a little 2017.
4. In the annual report, they say got some good clients like WanDaShan which is a famous brand in China for more than 10 years, that can not be a fake one.
4. In order to show the finance strength shown in the annual report, probably they would declare a dividend between Jan-Jul 2018, on the other side 79% go back to the insiders no big issue. Or spent lots of money in researching like saying in announcement on 25/9/2017 to create new products?
If unsuccessful or make untrue things in the announcements, in 2019 shall be delisted.
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