Shareholder Koza proposes to help Gold Horse International. 13D/A filed 10/9/2012
Mike Koza (12,7% shareholder) thinks Gold Horse may go dark because costs staying listed are bigger than the benefits (raising capital, image, etc...). He proposes to help them. Here is an excerpt from SC 13D/A he filed yesterday (Koza=Reporting Person):
The Reporting Person may take actions as deemed appropriate, possibly in conjunction with other shareholders, including one or more of the following:
1. Offering to pay all or part of the expenses (including back pay) of continued U.S. listing, including the re-hiring of Mr. Li (the fiscal year 2012 Chief Financial Officer) or an alternate Chief Financial Officer to be agreed upon;
2. Encouraging the Issuer to make a tender offer for all outstanding shares;
3. Assisting the Issuer in voluntarily deregistering its common stock, and arranging for the dissemination of periodic financial information to shareholders of the Issuer, in a simple format agreeable to the Issuer and shareholders. This outcome would be acceptable only if the SEC did not deny voluntary deregistration;
4. Entering into negotiations with China-based shareholders of the Issuer to sell to these shareholders the shares owned by the Reporting Person. According to a Form 10-K filed by the Issuer on October 6, 2008, 36 individuals residing in China purchased 55,481 shares (split-adjusted) from the Issuer for $2,219,252 in 2007. The purchase price was $40 per share (split-adjusted). Although the reported book value per share of the Issuer has roughly doubled from December 31, 2007 to March 31, 2012, according to SEC filings, the Reporting Person would be willing to sell his shares to China-based shareholders at a significant discount to the amounts paid per share by these China-based shareholders in 2007. The Reporting Person believes that many of the China-based shareholders of the Issuer are employees of the Jin Ma Companies, which are controlled by the Issuer through contractual agreements;
5. Assisting the Issuer in unwinding its variable-interest entity structure.
Assciated press release:
HOHHOT, China, Feb. 27, 2012 /PRNewswire-Asia/ -- Gold Horse International, Inc., (OTC Bulletin Board: GHII) ("Gold Horse" or the "Company"), a multifaceted business group that controls and through the Jin Ma Companies operates a construction company, real estate development business and a hotel/banquet facility in Inner Mongolia, China, today announced its financial results for the six months ended December 31, 2011.
The Second Quarter Fiscal Year 2012 Highlights
"Strategically, we sold all remaining inventory of apartment units available for sale in the fourth quarter of fiscal 2011 and have no apartment units available for sale now. Consequently, we minimize the effects of the slower real estate markets on Gold Horse. Moreover, we will keep going forward on track to become one of the most prominent construction and real estate development companies in Inner Mongolia, China and we are confident that the construction and the real estate development in Hohhot, Inner Mongolia and its surrounding areas, a third-tier city, will remain strong in the future," said Mr. Liankuan Yang, chairman and CEO of Gold Horse.
At December 31, 2011, the construction segment is in various stages of development of three new construction projects totaling approximately $45 million in estimated revenues over fiscal years 2012 to 2013. The real estate segment has acquired several land use rights and began developing one residential project. The project is a joint effort between the construction segment and the real estate segment with the construction business serving as the general contractor for the construction of the project.
Mr. Liankuan Yang, Chairman and CEO of Gold Horse, offered a brief description on each project:
In construction segment, three new projects began in October 2011:
In real estate segment:
Fiscal Year 2011 Highlights
"We are quite pleased with Jin Ma Real Estate's new real estate development projects, and we are confident that the Jin Ma Companies remain on track to become one of the most prominent construction and real estate development companies in Inner Mongolia, China. We are confident that real estate development in Hohhot, Inner Mongolia and its surrounding areas, a third- tier city, will remain strong and will not feel the effects of the slower real estate markets occurring in tier-one cities such as Beijing and Shanghai," said Mr. Liankuan Yang, chairman and CEO of Gold Horse.
The Jin Ma Companies are in various stages of development of three new real estate development projects totaling approximately $96 million in estimated revenues over fiscal years 2014 to 2016. These projects are a joint effort between the Jin Ma Construction and Jin Ma Real Estate with the construction business serving as the general contractor for the construction of these projects.
GOLD HORSE INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME(AMOUNTS EXPRESSED IN US DOLLAR)
HOHHOT, China, June 10, 2011 /PRNewswire-Asia/ -- Gold Horse International, Inc., (OTC Bulletin Board: GHII) ("Gold Horse" or the "Company"), a multifaceted business group that controls and through the Jin Ma Companies operates a construction company, real estate development business and a hotel/banquet facility in Inner Mongolia, China, today announced its financial results for the nine months ended March 31, 2011.
Gross profit increased 60.8% period-over-period to $5.9 million
Operating income was $4.2 million compared to operating income of $2.2 million in the prior comparable period
Net income decreased 6.3% period-over-period to $3.7 million from $3.9 million
"We remain confident that real estate development in Hohhot, Inner Mongolia and its surrounding areas, a third- tier city, will remain strong and will not feel the effects of the slower real estate markets occurring in tier-one cities such as Beijing and Shanghai. We intend to meet our liquidity requirements, including capital expenditures related to the purchase of land for the development of future projects, through cash flow provided by operations, from the collection of outstanding accounts and notes receivable balances and the from the sale of units at the Shuian Renjia residential project. Through March 31, 2011, we have capitalized construction in progress consisting of the acquisition of land use rights and construction costs related to the Shuian Renjia project of approximately $19.8 million. In connection with the acquisition of land use rights and for construction costs, pursuant to agreements with Jin Ma Construction's sub-contractors, we will only partially pay subcontractors until such time as we begin selling units of real estate held for sale and accordingly, accounts payable has increased substantially. Subcontractors are willing to extend us credit due to long-term relationship with the Jin Ma Companies. During the fourth quarter of 2011, we expect to sell all of our units in Shuian Renjia and we expect to collect approximately $30,000,000 from these sales which will be used to pay subcontractors and other accounts payable balances and will be used for working capital purposes," said Mr. Liankuan Yang, chairman and CEO of Gold Horse
GOLD HORSE INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
GeoTeam® Note: 2011 vs. 2010 Third Quarter Adjusted EPS was $0.28 vs. $0.95
For the Three Months EndedDecember 31,
For the Six Months EndedDecember 31,
COST OF REVENUES