Refined Sugar Kills
2 years ago
Yes, but this shell; HGYN/CERPQ, has no publicly known association with "Hongyuan Holdings Group Co. Ltd.", "Beijing Airport Hoya Logistics Co. Ltd.", or any other entity.
Until the SEC and the public are made aware of any such connection, it's irresponsible and reprehensible for B.I. et al to report there being one.
Refined Sugar Kills
2 years ago
Business "Insider" says, "Hongyuan Holdings Group Co. Ltd. designs and manufactures proprietary starch-based, and algae-based bio-plastic resins."
Back on this planet, due diligence says, "No BI, it does not."
Hongyuan Holdings Group Co. Ltd. is a rapidly expanding logistics company, with significant holdings in Air Belgium, et al. It has nothing to do with the design and manufacture of bio-plastics, and as far as the SEC and the public are concerned, has nothing to do with this shell.
Shame on BI for posting such nonsense.
Big Brother
2 years ago
Personally, no, though its not unheard of for Chinese companies to that....lol..... I would doubt that's the case here IMO.
If I'm right about the company, it looks fairly new, it's unlikely they could call themselves Hongyuan Holdings Group in China as A) it would be confusing....and B) the same reason I wouldn't start a company here in the US and call it Google Inc......trademark infringement and other legal hassles. Here they are free to call it that without any issues.
Hongyuan 'Holdings' sounds legitimate enough, the business description in China has a couple of different industries, so likely has a few subsidiaries:
Cultural and artistic exchange activities planning; health management consulting; business operation management; design, production, and domestic advertising business; exhibition services; car rental; technology development and technology promotion of traditional Chinese medicine; education consulting services; sales: prepackaged food and bulk Food, arts and crafts, audio-visual products, electronic products, household appliances, clocks, glasses, clothing, cosmetics, daily necessities, stationery, health food, leather goods; retail: cigarettes, cigars, domestic publications.
I doubt there is anything nefarious here, I just would not personally buy it as Chinese tickers here in the US have mostly shite since COVID.....and have been especially bad recently, I have probably 10 of them and none have gotten any significant volume in eons.
Big Brother
2 years ago
I've looked into it a bit, from what I can tell I believe its a 'real' company, IMO I don't think its the logistics company, instead I think its one that translates as Henan 'Hong Yuan' Culture Development Co., Ltd.
You can see the translated address is pretty similar to the 10K filing, additionally, it has Li Xudong as the majority shareholder of it, holding 78%.
https://aiqicha.baidu.com/company_detail_32225908288737
I have not really spent that much time on it, so I don't see a lot at first glance, however, it has a 60M yuan registered capital, that is generally what the business was worth at the time of incorporation, that number does not change it could be bigger now.....or not....but that's pretty decent.
A lot of Chinese companies go public here have more like 10M yuan registered capital, though I personally prefer to see 100M-200M, those companies tend to be a little more substantial from my experience.
Whatever the case, Chinese companies have a tendency to throw curveballs at you, when you think you have figured out the merging company.....lol.....so I could certainly be wrong, this is just my opinion based on the limited info.
trader59
2 years ago
They don't.
https://www.bloomberg.com/quote/HGYN:US
If you google search the ticker, that's what you get. Bloomberg will have a listing for both companies, since that's what they do. Hongyuan Holdings Group Co., Ltd, is a real company, but they have absolutely nothing to do with this ticker. This ticker selected a similar name so that social media pumpers could "connect the dots" for a pump and dump. It didn't work.
Refined Sugar Kills
2 years ago
Insiders do r/s their own positions at times. It's their way of "taking one for the team" for the greater good of the company, as well as a means to shake out, what they perceive as, low quality shareholders.
I'm not saying that will happen here, but given the Nasdaq ambitions of this company, they'll likely want to take it to dollar land and keep it there for a while, and to do that could require concessions from management and shareholders alike.