In this report, we present a number of reasons why investors in Yongye International, Inc. (“YONG”) should be especially cautious. We believe that YONG’s business activities are riddled with undisclosed related party transactions and that its revenue and profit may be overstated in its filings with the SEC. Further, we urge the NASDAQ and the SEC to look into Yongye’s largest sources of revenue in an effort to protect public shareholders and defend the integrity of US financial markets.
As a research firm rooted in the deepest soils of investigative diligence, we go to great lengths and commit substantial resources to verifying the claims companies make in their filings with the United States Securities and Exchange Commission (the “SEC”). To date, two of four of the companies we have exposed as engaging in fraudulent behavior have been halted from trading (ABAT and APWR). In addition, the SEC is pursuing a detailed investigation into APWR to determine whether it or any of its personnel violated the federal securities laws.
