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CBK Digest, August 31, 2015

(CBK Digest is published first to CBK’s email list. And then posted to the website. To sign up for the email, see box on the right side of CBK’s website.)

GOING PRIVATE

iKang Healthcare Receives “Going Private” Offer
The board of Beijing-based iKang Healthcare Group, Inc. (Nasdaq: KANG) received a management-back “going private” offer on August 31, 2015. Founder, Chairman and CEO Mr. Ligang Zhang and certain of his affiliated entities, and FV Investment Holdings (“FountainVest”) have offered $17.80 per ADS. According to the proposal letter, the Buyer Group intends to fund the transaction with a combination of debt and/or equity capital, and rollover equity in the company. iKang Healthcare Group, Inc. is a provider preventive healthcare services market.

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SinoCoking Changes Name and Ticker Symbol
Pingdingshan-based SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq: SCOK) has changed its name to “Hongli Clean Energy Technologies Corp.” As well, beginning July 28, 2015, the ticker symbol changed from “SCOK” and “CETC.” The company’s common stock has been assigned a new CUSIP number of 438586109 in connection with the name change. Outstanding stock certificates will not be affected by the name change and will not need to be exchanged. SinoCoking Coal and Coke Chemical Industries, Inc., a Florida corporation, is an emerging producer of clean energy products located in Pingdingshan, Henan Province, China.

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SHARE REPURCHASE

Daqo New Energy Corp. Announces Share Repurchase Program
The board of Chongqing-based Daqo New Energy Corp. (NYSE: DQ) approved a share repurchase program, effective for one year from August 26, 2015. The board of directors has authorized Daqo New Energy to repurchase up to US$10 million worth of its own issued and outstanding ordinary shares or ADS representing ordinary shares in open-market purchases, in negotiated transactions off the market, in block trades or through other legally permissible means in accordance with applicable via US securities laws.

ChinaCache Launches Buyback Program
–Overlaps with Buyback Program from December
The board of Beijing-based ChinaCache International Holdings Ltd. (Nasdaq: CCIH) approved a share buyback program. The company is authorized to repurchase, through open market purchases or privately negotiated transactions, up to US$6 million worth of outstanding ADS of ChinaCache over the next 12 months, depending on market conditions, share price and other factors, and subject to relevant rules and regulations under the U.S. securities laws. This buyback program is in addition to the program previously approved and announced on Dec. 18, 2014. Under that program the company was authorized to repurchase ADSs up to $10 million, of which US$8.72 million remains available as of August 24, 2015.

Chairman of China Cord Blood Buys Block of Senior Notes from KKR SPV
Hong Kong-based China Cord Blood Corp. (NYSE: CO) has been informed that Magnum Opus 2 International Holdings Ltd. (“MO2”), an entity owned by the company’s chairman of the board, Mr. Yuen Kam, acquired the outstanding shares of Excellent China Healthcare Investment Ltd. (“KKR SPV”) from Brilliant China Healthcare Investment Ltd. (formerly known as KKR China Healthcare Investment Ltd.). KKR SPV owned $65 million in aggregate principal amount of the company’s outstanding 7 percent senior convertible notes due 2017 (the “KKR Notes”). [If you own stock in China Cord, refer to the SEC filings for more information. This is the abridged version.]

COMPLIANCE

Skystar Receives Notice of Non-Compliance
Xi’an-based Skystar Bio-Pharmaceutical Company (Nasdaq: SKBI) received a notice of non-compliance from Nasdaq in regard to due to it not filing its 10-Q for the quarter ended June 30, 2015. Prior to the notice, the company submitted a plan of compliance to Nasdaq, responded to an initial request for additional information from Nasdaq, and it is currently preparing responses to a second request for additional information from Nasdaq. If its plan is approved by the Nasdaq staff, the company may be eligible for a listing exception of up to 180 calendar days from the date of its initial delinquent filing (its Annual Report on Form 10-K for the year ended Dec. 31, 2014), or until Oct.12, 2015, to regain compliance. The company filed a NT-K on April 1, 2015, citing part of the issue in filing was the Chinese New Year celebrations. See below.

From SEC Filing NT-K (April 1, 2015)
SEC: State below in reasonable detail the reasons why Forms 10-K, 20-F, 11-K, 10-Q, N-SAR, or the transition report portion thereof, could not be filed within the prescribed time period.

Skystar Response: “The Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (the “Annual Report”) cannot be filed within the prescribed time period because the Registrant requires additional time to finalize the Annual Report and the financial statements included therein. The Registrant believes that extended Chinese New Year celebrations in later February and staffing limitations contributed to the filing delay. As a result, the Registrant was unable to complete the Annual Report without unreasonable effort or expense and requires additional time to accurately prepare and present all necessary disclosures to be included in the Annual Report. The Registrant and independent accountants are working to complete the Annual Report as expeditiously as possible. The Registrant expects that the Annual Report that is subject hereof will be filed within the time frame allowed by the extension.”

China Advanced Materials Out of Compliance
Zhengzhou-based China Gerui Advanced Materials Group Ltd. (Nasdaq: CHOP) received a notice of non-compliance from Nasdaq on August 19, 2015 due to the market value of the shares have fallen below the minimum $5 million. The company has 180 business days to comply. China Gerui Advanced Materials Group Ltd. is a steel processing company in China. The company did not release the information to the public until Aug. 15, 2015.

FUNDS

China Ming Yang Joins Renewable Energy Company Fund
Zhongshan-based China Ming Yang Wind Power Group Ltd. (NYSE: MY) has joined a group of other renewable energy companies to jointly invest in a fund management company. The primary objective of the fund is to seek investment opportunities in projects or companies relating to renewable energies, such as wind, solar, hydropower and biomass, located in Guangdong Province. China Ming Yang Wind is a leading wind energy solution provider in China, focusing on designing, manufacturing, selling and servicing megawatt-class wind turbines, including cutting-edge SCD (Super Compact Drive) solutions, and providing post-sales value-added maintenance and technology upgrade services to wind farm owners.

InnoSpring Closes $10M Investment
Santa Clara-based InnoSpring has closed on $10 million in strategic investment from Wanxiang Group, China’s largest automotive components manufacturer. The investment will enable InnoSpring to bolster its industrialization and financial services capabilities, to further expand its portfolio of startups, and to increase services to entrepreneurs who are focused on leveraging US-China cross-border resources to develop products and technologies. To date, InnoSpring has invested in, including technology mentoring platform HackHands, which was acquired by Pluralsight, and mobile security firm TrustGo, which was acquired by search giant Baidu; law analytics platform Lex Machina and Dew Mobile, which built Zapya, a file-transfer platform with 200 million users worldwide. According to its press release, the total valuation of the investments is approximately the $500 million in valuations.