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China-Biotics' 2009 Revenue is 70 Million Dollars Off

China-Biotics' 2009 Revenue is 70 Million Dollars Off

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Published by matberry
When comparing US and Chinese filings, China-Biotics' 2009 revenue is 70 million dollars off.
When comparing US and Chinese filings, China-Biotics' 2009 revenue is 70 million dollars off.

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Published by: matberry on May 12, 2011
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04/04/2014

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Matt Berry Disclosure: I have a short position in CHBT

Every year Chinese companies must submit their audited financial statements to the local branches of the State Administration for Industry and Commerce (SAIC). CHBT submitted its 2009 statements to the Shanghai branch (SHAIC):

SHAIC documents such as the one I present can be obtained from credit report agencies in China, one of which is “Inter-credit” http://www.inter-credit.net/. I encourage all interested parties to retrieve the documents for independent confirmation. Qingdao Inter-Credit Services Pte Co., Ltd. 2306 Parkson International Business Center,4460# Zhongshan Road, Qingdao, China 266001 Tel: 86 532 8202 2131 Fax: 86 532 82022810 info@inter-credit.net

$70,000,000 Off
• Total revenue for 2009 was approximately $530,000 USD, as claimed in documents retrieved from SHAIC. • For the same time period, China-biotics claimed revenue of over $71,000,000 USD in its SEC filings.
• This is a difference of more than $70,000,000 dollars.

Based upon the March 2010 10-K, CHBT’s only revenue generating subsidiary in China for 2009 was Shanghai Shining Biotechnology Co. Ltd: 上海 双金生物科技有限公司 (Shanghai Shining).

We can even remove the issues of “consolidated statements” and “other subsidiaries.” Sales for Shanghai Shining’s star brand alone, as claimed in the USA, exceeds total revenue claimed in Shanghai Shining’s Chinese filing by a factor of 40 to 1.

“We launched Shining Essence in Shanghai in April 2001, and it [sic] currently our best-selling product. Sales of Shining Essence represent approximately 29% of our total sales for the year ended March 31, 2010, 40% for the year ended March 31, 2009, ….” ~ March 2010 10-k

If so, 2009 revenue for Shining Essence alone would be over $20,000,000 USD, not even close to the $530,000 USD claimed in China as total revenue.

Shanghai Shining seal
Currency is RMB

The same financials. This one has the auditor’s seal (QINGDAO ZHENQING CERTIFIED PUBLIC ACCOUNTANTS, CO., LTD. SHANGHAI BRANCH).

Shanghai Shining’s official web page

Cropped official web page (foreground) over cropped financial statement (background). Note that the company named on the statement has the same Chinese characters as the company named on the Shanghai Shining official web page (which the company translates into SEC documents as, “Shanghai Shining Biotechnology Co. Ltd.“)

To the right, an official introduction to the 2009 annual SHAIC filing and below, a Google translation of the Chinese.

Official web sites for the Shanghai Branch of the State Administration for Industry and Commerce (SHAIC): at the top, in English; in the middle, Chinese; and at the bottom, in blue, the introduction to the 2009 SHAIC filings.

Translation: “Income Statement,” “Total Revenue,” and “Previous Period.”

The foreground document is the 2009 statement that I received. The background document is the 2008 statement that Chinese Company Analyst received, translated, and presented last year. His 2008 current year figures match the 2009 previous year figures in the statement I received.

“current year”

Currency Conversion through xe.com: revenue is only $530,000 USD. If I use the exchange rate for December 31, 2009, the amount is even less.

SHAIC statements covered January 1, 2009 to December 31, 2009. I take the same numbers from the March 2010 10-k.

$70,000,000 Off
• Total revenue for 2009 as claimed in China was approximately $530,000 USD. • For the same time period, China-Biotics claimed revenue of over $71,000,000 USD in its SEC filings
• This is a difference of more than $70,000,000 dollars.

SHAIC 2009 and 2008 official documents, made available for download by myself, Matt Berry:
http://tinyurl.com/chbtShanghai

China-Biotics, Inc. (CHBT)
CIK#: 0001271057 (see all company filings)
Mailing Address NO 999 NINGQIAO ROAD, JINQIAO EXPORT PRO PUDONG SHANGHAI F4 201206 Business Address NO 999 NINGQIAO ROAD, JINQIAO EXPORT PRO PUDONG SHANGHAI F4 201206 86 21 5834 9748 Formerly: OTISH RESOURCES INC (filings through 2006-01-05) SIC: 1400 - MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) fState location: F4 | State of Inc.: DE | Fiscal Year End: 0305 (Assistant Director Office No 4)

SHAIC 2008 and 2007 official documents, with analysis and English translation, made available by Chinese Company Analyst

Independent translation of the 2009 SHAIC Income Statement:
http://tinyurl.com/chbtIncomeStatement

Informal Youtube Video Presentation:
http://tinyurl.com/CHBTvideo

• • • • • •

Other links: Most CHBT Outlets Never Existed CHBT Store Verification Results Start Rolling In The China-Biotics Store Verification Website Chinese Company Analyst Citron Research

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