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Caz... Companies are filing amended reports to ensure they match SEC. You need to ask China Sun Group High-Tech (OOTC:CSGH) if they amended SAIC filings. I will take  a looks at filings again.

WhiteTiger,

Why would management say this if the figures are easily verified?

Have you looked at the correct documents?

Management also follows the governmental compliance to file the China State Administration for Industry and Commerce ("SAIC") report on an annual basis, for the Company's subsidiaries in the PRC. Management has ensured the completeness and consistency of these reports, which is determined as the underlying basis for the preparation of financial statements for U.S. GAAP financial reporting purpose.

Extract from 2010 SAIC report of its subsidiary namely Dalian Xinyang High-Tech Development Co., Ltd, the below figures are summarized:

Fiscal year ended December 31, 2010:
Gross income RMB318.44 million approximately Net profit RMB70.98 million approximately

As of December 31, 2010:
Cash and cash equivalents RMB160.20 million approximately

Management assessed the effectiveness of our internal control over financial reporting as of May 31, 2011. In making this assessment, management used the framework set forth in the report entitled Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that evaluation, our management concluded that our internal control over financial reporting was effective, as of May 31, 2011.

From 10-K:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8124315

______________________________________________________________________________________________________

I wish the actual documents were displayed in the website for all to see.

Cazador

PS* You never posted the actual figures you had.

Thanks for your answer !!! That gives us a much better picture of the company !

This passage is not saying China Sun Group High-Tech (OOTC:CSGH) is a VIE.  It is just a provision to follow if the company had VIE.  It's a boiler plate section.  The reason we know its an FIE is because there is direct ownership.

From 2010 fiscal year 10-K:

In June 2009, the FASB finalized SFAS No. 167, “ Amending FASB interpretation No. 46(R) ”, which was included in ASC Topic 810-10-05 “ Variable Interest Entities ”. The provisions of ASC Topic 810-10-05 amend the definition of the primary beneficiary of a variable interest entity and will require the Company to make an assessment each reporting period of its variable interests. The provisions of this pronouncement are effective January 1, 2010. The adoption of this pronouncement does not have an effect on the Company’s consolidated financial statements.<<

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7460329

How did you determine CSGH was a FIE?

Did you call IR or the company or the auditors?

Thanks in advance.

Cazador

I have no idea if this is old and if China Sun Group is still considered part of Sun Group from which CSGH was spinoff. There are positions requirements for other subsidaries:

Long-term recruitment ============================================= === ====================================

New high-tech development Co., Ltd. Sun

Security (5-6 people)
Requirements: Male, 35 years of age, secondary education, and more than two years of experience in this position, healthy, responsible, veterans of the security certificate preferred.

Operator (11)
Requirements: Male, 35 years of age, secondary education, and more than one year factory related work experience, physical health, can be hard.

Electrician (2)
Requirements: Male, 45 years old, more than three years experience in this position must have electrical license (including high-voltage network license) and substation maintenance experience.

Machine repair (2)
Requirements: Male, 45 years old, more than five years experience in this position, can be hard.

Statisticians (1)
Requirements: 35 years old, specialist education, statistics, finance related, more than two years the factory statistics, good knowledge of computers.

Production manager (1)
Requirements: Male, 45 years old, college degree or above, more than five years experience in this position.

Marketing Manager (1)
Requirements: 3 years of marketing experience, strong communication skills, ability, power batteries and cathode materials are sold first.

Laboratory Technician (3)
Requirements: 35 years of age, college degree or above, analytical chemistry major, has the job experience is preferred.

Export sales (2)
Requirements: College degree or above, fluent in English, there are more than two years of experience in this position, there is good communication and interpersonal skills.

Domestic workers (4)
Requirements: College degree or above, more than three years marketing experience, good communication and interpersonal skills, good team spirit, with separate business level.

Office Clerk (1)
Requirements: male, college degree or above, proficiency in a variety of practical writing and office automation software.

http://translate.google.com/translate?hl=en&sl=zh-CN&tl=en&u=http%3A%2F%2Fwww.sungroupcn.com%2FHR.asp

Cazador

By TOM ORLIK

Could accounting shenanigans prove a godsend for private equity? Some China-focused funds seem to think so.

Chinese small-cap firms listed in the U.S. have seen their shares dragged down by a drip of scandals in unrelated companies. More than a dozen Chinese firms have been suspended from trading in the U.S. amid accusations of fraud and mismanagement. Many other U.S.-listed Chinese small-caps are under a cloud of suspicion, and trading at low price/earnings multiples compared with peers listed in Hong Kong or Shanghai.

Mark Tobin, of Roth Capital Partners, notes that Hollysys Automation Technologies, a company that produces control systems for train networks, trades at a forward P/E ratio of 11.2 on the Nasdaq Stock Market, compared with a ratio of 18.7 for Zhuzhou CSR Times Electric, a competitor listed in Hong Kong. QKL Stores, a food retailer listed on Nasdaq, commands a P/E ratio of 10.9 compared with 16.8 for Beijing Jingkelong, a similar firm listed in Hong Kong.

Public-market investors remain suspicious. But private-equity funds see value emerging. Some are starting to bid to take selected listed companies back into private ownership. Bain Capital is buying China Fire & Security Group, which makes industrial-sector fire protection, at a 22% premium, valuing the company at 16 times earnings. TPG is part of a group offering to take CNinsure, an independent insurance broker, off the public market, offering a 44% premium that values the company at 14.5 times earnings.

A few rotten apples, even a lot of rotten apples, don't mean every Chinese small-cap firm listed in the U.S. is worthless. With teams on the ground in China, private-equity firms can kick the tires more thoroughly than traditional investors. If they can avoid the bad ones, that means an opportunity to buy solid firms with strong growth prospects at an attractive valuation.

Relisting in China or Hong Kong provides an opportunity to exit, with the hope that investors closer to the firms' domestic market will see more value than in the U.S.

Success is no foregone conclusion. As Carlyle Group's problems with disappearing trees at its investment in China Forestry Holdings show, private equity doesn't have perfect insight when it comes to due diligence. As for CNinsure, Arjan van Veen, an insurance specialist at Credit Suisse, notes that questions about related-party transactions and share offers to employees account for its low valuation.

If a period out of the public eye, and the benefit of new ownership, improves the legitimacy of such firms, an attractive exit is possible. But the onus will be on private-equity firms to prove skeptical public-market investors are wrong.

http://online.wsj.com/article/SB10001424052702303745304576359462401659014.html

Cazador

WhiteTiger hopefully will provide SAIC verification soon.

PCAOB
OVERSEES
THE AUDITORS OF COMPANIES TO PROTECT INVESTORS

The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection.

http://pcaobus.org/Pages/default.aspx

List:

http://pcaobus.org/Registration/Firms/Documents/Registered_Firms.pdf

Cazador

Great looking forward to the SAIC documents on CSGH.....Thanks White Tiger

Caz.. I think we will have China Sun Group High-Tech (OOTC:CSGH) SAIC analysis in next couple days.

http://www.huanyubattery.com/en/index.asp

http://www.huanyubattery.com/en/lxwm.asp?id=1

See partners:

Partners

Cazador

These words are used in both companies' language, so unless there's a well coordinated conspiracy between them, I have to consider this strong circumstantial evidence CSGH is for real.
 

Briefing
Henan Huanyu Group, under the umbrella of Henan Huanyu Industrial Investment Co. Ltd., was set up by more than a dozen independent industrial companies. Oriented towards and guided by broad international and domestic trade and market network, Huanyu is running a high tech enterprise group taking rechargeable battery as its base industry and the accessory industries auxiliary boosting means, while incorporating industrial investment, capital operation, scientific research and development, industry, trading and business development.   As the sole company among the domestic competitors for rechargeable battery, Henan Huanyu Group can produce a chain of integrated industrial products, ranging from active material for anode and cathode, isolating material, all kinds of additive material, material for polarity grids, battery container, cover, till plastic and hardware components, electrical components and related battery manufacturing equipment. Its overwhelming advantage in technique, quality, price and scale has made an extraordinary developing possibility lying ahead.   Since its establishment, Henan Huanyu Group has been maintaining its vigorous expansion trend by an amazing annual developing rate of 50 percent.   Huanyu Group has more than 5000 employees and two industrial premises of 300,000 square meters. Its total asset comes to as much as RMB 700 million and yearly sale value RMB 800 million that enables the foreign currency income amounted to USD 20 million.   Henan Huangyu Group, continuously granted by the government as faithful enterprise who can fulfill their contract promises and credited as " AAA " by the Bank, has always been the example to be followed by other local companies in business operating and taxpaying.

http://www.huanyugroup.com.cn/old/html_en/group/



Henan Hypercell Energy & Technology Co., Ltd

Henan Hypercell Energy & Technology Co., Ltd is one industrial company under Huanyu Group's devoted to developing the third generation of rechargeable battery - lithium ion battery

Henan Hypercell Energy & Technology Co., Ltd is registered with a capital of RMB 23 million and a total asset of RMB 60 million. Its daily output of lithium ion batteries for communication reaches 100 thousand cells and annual sales value nearing RMB 200 million.

Set up under the construction of the modern enterprise system and standardized corporate administration from Huanyu Group and under the Group's main development target, Henan Hypercell Energy & Technology. Ltd. is one of the new high tech enterprises that is incorporating capital, professional high tech techniques and manpower in its quest to be the leader in its field.

The product quality of Henan Hypercell Energy & Technology Co., Ltd is largely approved and accepted by the corresponding domestic and international enterprises. Rechargeable batteries, such as cylindrical lithium ion battery, dynamic lithium ion battery and lithium-polymer which are widely used in the communication industry and high power electrical appliances, are now in the process of researching, developing, testing and industrializing. The lithium ion battery industry is now becoming a new increasing point for the industrial development of Henan Huanyu Group.

http://www.huanyugroup.com.cn/old/html_en/group/

These guys seem to be the Real McCoy:

Translated website from Chinese:
http://translate.google.com/translate?hl=en&sl=zh-CN&tl=en&u=http%3A%2F%2Fwww.huanyugroup.com.cn%2Fold%2Fgroup%2F


Cazador

The way the PPS has been going down longs need some reassurance. I know I do.

I don't know if there's some stealth shorting going (some firms are advertising some Chinese stocks as Shortable), but the

Regulation SHO Threshold List

doesn't included CSGH:

http://www.nasdaqomxtrader.com/trader.aspx?id=RegSHOThreshold

I wish I could go to China and see if the manufacturing facilities are at full throttle.

I wonder what CSGH is going to do to give investors confidence in terms of verifiable data such as providing prove the Cash stated in the Balance Sheet is for real.

CSGH will separate itself form the "Chinese Fraud" crowd, which is a long, long list with more added almost on a daily basis.

Cazador

whitetiger, did you have time to look into CSGH's SAIC filings?

I am just curious.

Thanks,

Sh1nzon

R&D:

I somehow lost my way in the maze of windows I opened, but I'm sure is somewhere in here:

http://translate.googleusercontent.com/translate_c?hl=en&rurl=translate.google.com&sl=zh-CN&tl=en&twu=1&u=http://www.sungroupcn.com/About.asp&usg=ALkJrhj8eBhq8sEITCB-TzHrLjTpToOnJw

Cazador

http://translate.googleusercontent.com/translate_c?hl=en&rurl=translate.google.com&sl=zh-CN&tl=en&twu=1&u=http://www.sungroupcn.com/shownews.asp%3Fid%3D154%26click%3D1&usg=ALkJrhi5aoQsxuwlf5syPqQCz8kCvbp6UQ

Complete News Releases:
http://translate.googleusercontent.com/translate_c?hl=en&rurl=translate.google.com&sl=zh-CN&tl=en&twu=1&u=http://www.sungroupcn.com/News.asp&usg=ALkJrhgVwiF-aqY3leAqBTvZ6t3_usOrbg

Cazador

This looks good since Upstream hasn't unloaded any shares after the visit to CSGH. Click below to see PR:

• China Sun Group-High Tech Co. Hosts Denmark Investment Delegation Meeting to Promote Cooperative Business OpportunitiesPR Newswire(Mon, Apr 11)

UPstream Porteføljen

Kurs på UPstream aktien: 1.777 DKK

Sidst opdateret: d. 29.april 2011
Kurs ved 1.emission november 2008: 1.050 DKK
Afkast siden start: 69 %

 

Complete portfolio:

http://www.upstreaminvest.com/da/upstream-portefoeljen

Another strong CIRCUMSTANCIAL evidence this company is legit.

Cazador

Caz,

We will be updating SAIC data base soon (20 more names). We should have China Sun Group High-Tech (OOTC:CSGH) in that update.

SEC Reports on China Reverse-Mergers

‎
Barron's - Bill Alpert - May 5, 2011

Reed Smith / Allen Z. Sussman

Reed Smith Enlisted by China Sun Group

Thu, Sep 23, 2010

Reed Smith has been brought on as U.S. corporate and securities counsel for China Sun Group High-Tech Co., which supplies raw materials for rechargeable Lithium-ion batteries in China.

In its role, Reed Smith will handle U.S. securities filings, compliance work and transactions in the U.S., and will ensure China Sun Group’s compliance with the Securities and Exchange Commission.

According to a press release, China Sun is emerging as one of the world’s leading suppliers of anode materials for lithium ion batteries. The company has made several moves recently to increase its production capacity in order to meet the growing demand for the green technology.

“We are thrilled at the opportunity to work with China Sun Group, especially at this juncture in which it is poised to capture a significant market share in the growing demanding for Li ion battery materials,” said Los Angeles-based attorney Allen Z. Sussman ( http://www.reedsmith.com/our_people/directory_search.cfm?cit_id=19634&widCall1=customWidgets.content_view_1 ) , a partner in Reed Smith’s Corporate & Securities Group.

Sussman will serve as China Sun’s lead outside counsel, and will head the legal team that will guide the company’s disclosure and compliance obligations under SEC and stock exchange rules, as well as its ongoing corporate governance issues, complex securities law matters and capital-raising transactions.

Reed Smith frequently handles cross-border transactions for Chinese companies and foreign companies doing business in China. The firm established a presence in China in 1980 and has become one of the largest law firm’s serving the Asia-Pacific region.

http://www.jdjournal.com/2010/09/23/reed-smith-enlisted-by-china-sun-group/

Allen was named a Best Lawyer in America in the field of Corporate Law, 2006-2011 and has been ranked within the top 100 IPO lawyers nationwide by the IPO Lawyer Yearbook.  He is a frequent speaker on corporate and securities topics, and has appeared as a guest commentator on CNBC to discuss SEC matters.

Prior to private practice, Allen served as an attorney in the Financial Institutions Task Force of the U.S. Securities and Exchange Commission in Washington, D.C. from 1990 to 1993, and as counsel at the Office of Thrift Supervision, Department of the Treasury from 1988 to 1990.

More: http://www.reedsmith.com/our_people/directory_search.cfm?cit_id=19634&widCall1=customWidgets.content_view_1

Why would a guy like Sussman risk everything on an OTC stock?

Cazador

The only thing i can say here is that more needs to be done by the SEC.; This move is Childs play.

I get a kick out of the author's statement that

We always worry about overreaction when there is the appearance of a crisis.

Sir.. we are properly reacting.

He probably died too quickly and he'll be in his element in hell.

Cazador

Well think he already got F****d