CCG expects to have a record number of clients attending the Roth Capital Conference February 18-21 2008 in Dana Point California. This selection includes a number of new clients that have recently joined CCG and are making their first trip ever to meet with US investors. Below is a compelling list of high growth, profitable companies in a wide range of industries from pharmaceuticals to fish farms, and from water to windmills.

American Lorain Corporation

Company Description

American Lorain is a leading China-based food processing company engaged in the development, manufacture and sales of food products worldwide.  The company operates through its four indirect subsidiaries, two in Junan County, one in Luotian Wubei Province and one in Beijing, China. Formed in 1994, the company produces hundreds of varieties of food products, categorized into three interrelated divisions: chestnut products, processed food, including frozen, canned and packaged goods, and convenience foods, consisting of meals ready to eat (MRE) and ready to cook (RTC).

Investment Highlights

§         For the three months ended September 30, 2007, American Lorain reported revenues of $22.8 million, an increase of 79.6% compared to the $12.7 million reported for the same period last year. Gross profits for the three months ended September 30, 2007, were $4.7 million, or 20.6% of sales, compared to gross profits of $3.0 million, or 23.9% of sales, for the same quarter last year. Net income for the three months ended September 30, 2007 was $2.4 million, an increase of 29.7% compared to net income of $1.9 million in the same period a year ago.

§         As incomes rise and urbanization increases within China, Chinese consumers are changing their diets and increasing demand for higher quality, convenience and safety in food. As China’s food market is becoming segmented the demand for quality food by higher-income households has fueled recent growth of such foods within the Chinese retail market. China’s urban per capita food expenditure in 2004 was RMB 2,710 (approximately $327), up 12% from that of 2003 (USDA, Economic Research Report No. ERR-32).

§         American Lorain offers a large variety of products, numbering in the hundreds. The Company is the sole supplier of some products in China, such as bottom-up chestnuts, sweet core chestnuts and chestnut inner-skin extract. American Lorain seeks to use modern food processing technology and innovation in its formulations and manufacturing processes to create high quality products. The Company maintains high food safety standards, which comply with both domestic and international requirements.

Ascend Acquisition Corp.

Company Description

Ascend is a special purpose acquisition company which has identified ePAK as its target.  ePAK is a full service designer, manufacturer and supplier of precision engineered products and solutions for the automated transport and handling of semiconductor and electronic devices. Demand for ePAK’s products is driven by growth in semiconductor unit volumes, which have historically demonstrated low volatility and consistent growth. ePAK has a strong track record of accelerating revenues and earnings and recently entered the high-margin wafer handling business.  The merger with Ascend will provide ePAK with approximately $40 million in additional capital to pursue growth opportunities.

Investment Highlights

§         ePAK is a full service designer, manufacturer and supplier of precision engineered products and solutions for the automated transport and handling of semiconductor and electronic devices.  ePAK’s product areas include front-end wafer handling, back-end IC transport, and end-system sub-assembly handling.  The Company’s products are sold globally to top tier customers including semiconductor companies, system OEMs, and IC assembly and test operations.  The Company’s low-cost, large-scale manufacturing operations in Shenzhen, China, are centrally located to the semiconductor industry, allowing short supply lines to its customers, providing ePAK with a key service advantage.

§         ePAK has a solid track record of growth.  Over the last five years, revenues grew at a compound annual growth rate of 30% to $36.1 million for the year ended December 31, 2006.  Net income grew from $0.1 million in 2005 to $2.2 million in 2006.

§         ePAK’s business is largely consumable enabling the Company to demonstrate consistent growth with low volatility.  Demand for ePAK’s consumable semiconductor handling equipment and transfer products is driven by unit demand for semiconductor integrated circuits and silicon wafers, both of which have demonstrated consistent year-over-year historical growth based on data from VLSI Research.  This is in contrast to the semiconductor capital equipment market, where demand is driven b capital spending and subject to large swings to overall manufacturing capacity.

China Agritech, Inc.

Company Description

China Agritech, Inc. is a leading player in the rapidly growing organic compound fertilizer industry in China.  The Company develops, manufactures and markets high quality, environmentally friendly liquid organic compound fertilizer products to farmers in 16 provinces and one municipality in China.  Its products are manufactured using a proprietary production method and formulas.  China Agritech operates in an environment where there are significant barriers to entry (7 year certification process), and has been selling organic liquid fertilizer for over ten years in northern China.  China Agritech is currently in the process of adding organic granular fertilizer to its product offering. 

Investment Highlights

§         China Agritech’s products address a highly specialized and rapidly growing segment of China’s $49 billion fertilizer market, which is the world’s largest.  Organic fertilizer represents about 10% of the market.

§         Organic compound fertilizers address the need to increase crop yields due to China’s burgeoning population of 1.3 billion people and a steady decline in per capita arable land.  The PRC Ministry of Agriculture is encouraging the use of organic compound fertilizers as reliance on chemical fertilizers historically has resulted in soil degradation, poor crop health and increased environmental risks.

§         China Agritech has embarked on an aggressive growth plan to expand manufacturing and distribution to central, western and southern China.  The Company increases its capacity for liquid organic fertilizer from 5,000 metric tons to 13,000 metric tons and expects to add 200,000 metric tons of organic granular fertilizer.

China Biologic Products, Inc.

Company Description

China Biologic Products, Inc. through its indirect majority-owned subsidiary, Shandong Taibang, is currently the only plasma-based biopharmaceutical company approved by the government of Shandong Province, the second largest province with a population of 93 million.  The Company is engaged primarily in research, manufacturing, and sales of plasma-based biopharmaceutical products to hospitals and other health care facilities in China.  Plasma-based Human Albumin is used mainly to increase blood volume while Immunoglobulin is used for disease prevention and treatment.

Investment Highlights

§         China’s plasma based biopharmaceutical industry is at an early developmental stage with only one third of products that are generally available in developed countries, offered in China.  This disparity provides China Biologic with an opportunity to expand its product offering by developing and marketing more advanced, high-end plasma-based products, with higher margins and more efficient utilization of its plasma supply.

§         Recent government reforms have increased regulatory scrutiny of the plasma-based pharmaceutical industry in China, imposed significant barriers to new entry, and unleashed a consolidation process that is expected to create a favorable industry structure.

§         As a result of the shortage of plasma supply, caused partially by the government-led reform of the plasma-based industry, China Biologic’s immediate strategy is to leverage its financial strength to acquire existing plasma collection stations thus securing high quality plasma supply to support its growth objectives.  In addition, the Company plans to drive the consolidation of the plasma-based biopharmaceutical industry by acquiring weaker players who do not have the resources or expertise to comply with the recently implemented more stringent regulatory requirements.

China Clean Energy, Inc.

Company Description

China Clean Energy Inc., (the “Company”) through its wholly-owned subsidiary, Fujian Zhongde Technology Co., Ltd. (“Fujian Zhongde”), is engaged in the development, manufacturing, and distribution of biodiesel fuel and high-quality specialty chemical products from renewable resources, such as yellow grease and waste vegetable oils. China Clean Energy is a Delaware registered company headquartered in Fuqing City in the Fujian province of the People’s Republic of China (“PRC”).

Investment Highlights

§         China Clean Energy is one of only three publicly traded biodiesel manufacturers in China and is well positioned to take advantage of forecasted growth in biodiesel demand in the coming years. Analysts forecast demand for biodiesel in China to grow at 122% annual rate in the 2005-10 period to 6 million tons, with worldwide demand growing to 619 million tons in 2010, up from 36 million tons in 2006.

§         China Clean Energy uses low cost waste vegetable oil, such as cotton seed leavings, for feedstock and has supply contracts for waste leavings with leading vegetable oil producers. The Company’s manufacturing process also has the flexibility to use other feedstock alternatives such as recycled cooking oil, oil rich sewage, and others.

§         China Clean Energy has a Research and Development (R&D) center that maintains close ties with a number of China’s universities, industry associations and recognized experts in the fields of transport fuel alternatives and renewable resource chemicals. As a result of its R&D efforts, the Company recently received preliminary patent approval for its proprietary biodiesel production method, pursuant to which the Company manufactures biodiesel from monomer acid in a highly cost effective manner.

China Display Technologies, Inc.

Company Description

China Display Technologies, Inc. through its wholly-owned subsidiary Suny Electronics (Shenzhen) Company Ltd. in China, designs, manufactures and markets small- to mid-sized Light Emitting Diode (LED) and Cold Cathode Fluorescent Lamp (CCFL) backlights for various types of Liquid Crystal Displays (LCDs).  Its products have applications in electronic consumer products, such as mobile phones, PDAs, GPS systems, portable DVD/VCD players, MP3s and MP4s, medical equipment and household appliance with displays.

Investment Highlights

§         China Display has experienced rapid growth since it started operations in 2005.  Revenue in the first nine months of 2007 increased 93.6% over the comparable period in 2006 to $20.5 million.  Gross profits rose 96.1% in the same period to $4.8 million, representing gross margins of 23.3%.  Net income for the nine months ended September 30, 2007 was $3.2 million, up 64.5% year over year.

§         China Display owns two patents for technical optimization of the optoelectronic properties and one copyright for software used in the dot matrix design and refining the light guide, which enhances its competitiveness and creates additional opportunities to attract new customers.

§         The Company has begun some strategic initiatives to enhance its competitiveness for future growth, including (i) efforts to find more transparent light guide materials; (ii) development of larger-size BLUs; and (iii) OLED feasibility research – for next generation BLUs.

China Education Alliance, Inc.

Company Description

China Education Alliance, Inc. is a leading educational service company offering high-quality online educational programs and on-site training to families, provincial education officials, administrators, schools and teachers in China.  The Company distributes online test preparation materials, researchers’ materials, study guides, audio recordings through its website, www.edu-chn.com.  The Company also offers vocational training services and vocational certifications through www.360ve.com and offers employment education.

Investment Highlights

§         Unevenly distributed resources in China facilitate growth in the online education market.  Most of China’s best teachers and teaching resources are centralized in the more developed areas and at key high schools.  The level of college entrance from key high schools is higher than 90%, while the national average for college entrance is about 55%.  Thus, there is an urgent need for high quality educational resources and for the best instructors to strengthen the development of the online educational system.

§         The vocational education business, including on-site vocational training programs for various industries, vocational performance evaluation and career development for graduates contributed 9.5% of total revenues during the first nine months of 2007, and is expected to accelerate in 2008 due to more vocational training and performance evaluation programs by collaborating and acquiring educational institutions in other provinces.  In addition, the Company is establishing a graduates’ profile database and providing employment training services to fuel its fast growing vocational business.

§         The Company’s websites have become leading online educational portals, generating advertisement revenues with minimal costs.  This business has grown rapidly as awareness of the websites has increased and attracted more viewers.

China Green Agriculture

Company Description

China Green Agriculture (“the Company”), through its wholly-owned subsidiary Xi’an Jintai Agriculture Technology Development Company, develops manufactures and distributes humic acid-based liquid compound fertilizers in 27 provinces throughout China. The Company offers over 100 different varieties of fertilizers targeted to unique climate and soil specifications. TechTeam’s headquarters, based in Shaanxi Province, include extensive R&D facilities and cutting edge automated production lines. With one of the most recognizable brand names in Chinese organic fertilizers today, the company is widely regarded as a leader in green fertilizer technology.  

Investment Highlights

§         China Green agriculture utilizes its vast R&D facilities to develop all of its own fertilizers, dramatically reducing the time required to go between the lab and the market. The Company’s $10 million, 137 thousand square meter facilities feature advanced equipment supplied by leading international irrigation and agriculture technology providers including Eldar-Shany Technology Co., Ltd of Israel. China Green Agriculture uses soil free techniques in intelligent greenhouses which are controlled and manipulated by R&D technicians to simulate a wide variety of real-life growing conditions.  This high degree of precision and control significantly reduces both development time and costs.

§         China Green Agriculture operates a 47 thousand square meter, fully automated production facility. The first of its kind in fertilizer manufacturing in China, the facility uses computers and electronic weights to ensure that precise proportions of ingredients are mixed to formulate products. Advanced spectral analysis techniques are also utilized to insure quality and accuracy. This attention to detail not only elevates product quality, but minimizes costs by ensuring that no ingredients are wasted in the production process.

§         China Green Agriculture has an elaborate network of 450 private distributors covering 27 provinces in China. These distributors are able to reach farmers at the township and village level, essential to permeating China’s agricultural patchwork of small family-run farms. The Company had also established regional offices in Shanghai, Tianjin Beijing and Chongqing in order to coordinate marketing efforts and nurture local relationships. Internationally, China Green Agriculture has established distribution relationships in several countries including India, Pakistan, Ecuador and Lebanon, and expects international distribution networks to grow considerably in the future.

China Medicine Corporation

Company Description

China Medicine Corp, Inc (CHME “China-Medicine” or “the Company”), is a leading pharmaceutical company which discovers, develops, and distributes over 2,200 pharmaceutical products in China including prescription and over the counter (“OTC”) drugs, traditional Chinese medicine (“TCM”) products, herbs and dietary supplements. The Company distributes the products to wholesale distributors in 28 provinces, over 300 hospitals, 500 medicine companies, and 1,788 drug stores throughout China. China-Medicine holds nationwide exclusive distribution rights to seven products, which accounted for 24% of sales in the first nine months of 2007. The Company actively develops a number of proprietary products for many uses including oncology, high blood pressure and the removal of toxins from food and animal feeds.

Investment Highlights

§         For FY2006 revenue, gross profit and net income increased 61%, 43% and -16%, respectively. More importantly, in the first nine months of 2007, revenue increased 68% to $25.9 million, gross profit rose 43% to $7.9 million, and net income grew 72% to $4.1 million from the same period of the prior year, indicating improved operational efficiency.

§         With its extensive distribution network covering hospitals, medical product wholesalers and retail drug stores throughout China, China-Medicine distributes over 2,200 pharmaceutical products. Additionally, the Company holds exclusive distribution rights to seven products throughout China, which represented 24% of sales in the first nine months of 2007. The products include Iopamidol injection, Panax Notoginseng Saponin, Bumetanide injection, Ozagrel dried powder injection, Levocarnitine dried powder injection, Chuanbei Pipa anticough syrup and Fengduoxin.

§         Using its extensive R&D capabilities, China-Medicine develops a number of products including internally developed, as well as externally acquired early-stage products. Currently, the Company owns patents on manufacturing and ingredients for two drugs with the State Intellectual Property Bureau in China, with five patents pending. Additionally, the Company owns a novel technology, aflatoxin detoxifizyme (ADTZ), to potentially detoxify food and animal feeds from aflatoxin, a carcinogen.

China Precision Steel

Company Description

China Precision Steel is a niche, value added producer and seller of high precision ultra-thin (7.5mm – 0.03mm) cold-rolled steel products and provides other services such as heat treatment and cutting for medium and high carbon hot-rolled steel strips.  Specialty precision steel pertains to the precision of measurements and tolerance of thickness, shape, width, surface finish, and other special quality features of highly engineered end use applications such as automobile components, saw blades, weaving needles, packing and containers, and microelectronics.  CPS primarily sells its products domestically, but has begun building its export business in order to become an internationally recognized competitor in ultra-thin steel.

Investment Highlights

§         By focusing on high margin products, CPS has increased it gross margin for 5.8% in 2004 to 20% in the first quarter of 2008.  To further enhance margins, the Company provides additional services such as heat treatment and cutting.  Because of the specialty of the Company’s end products, price increases of raw materials are passed directly to the client, providing sustainable profitability.

§         CPS has taken the leadership position in China for producing specialty precision steel similar to international standards.  It has 50%-70% market share domestically and 10% of the total market.  The Company has invested in state-of-the-art patented technology processes which enable it to produce high quality products as it builds a nationally recognized brand.  One of the Company’s competitive strengths is that it is the only company in the world that manufactures ultra-thin steel with a width of 1400mm.  Compared to other international companies, CPS’ lower costs allow it to sell its products on average 10% less than its international competitors with shorter delivery time and custom specifications.

§         CPS is expanding manufacturing capacity for more complex precision cold-rolled steel products.  CPS completed a 1400mm cold rolling mill in August 2006.  It plans to commence the installation of a second 1700mm cold rolling mill.  The two mills will increase CPS’ capacity by 300,000 tons per year bringing total annual capacity to 400,000 tons.

China Public Security Technology, Inc.

Company Description

Through its wholly-owned Chinese subsidiary, CPST is focused on the development and implementation of large scale high-tech public security and Geographic Information System (GIS) related projects. The Company provides a broad portfolio of fully integrated solutions and services, including public security information technology (First Responder Coordination Platform, Intelligent Border Control, Intelligent Security Surveillance and Residence Card Information Management System), Geographic Information System (Police-use GIS and Civil-use GIS), and e-Government Platform, Software Sales and Maintenance. Through its exclusive contractual arrangement with Shenzhen iASPEC Software Engineering Company Limited (iASPEC), CPST has the licenses to 16 registered and copyrighted software applications in China. In addition, iASPEC is considered the Company's variable interest entity ("VIE"), and its financial data and information is consolidated into the Company's accounts.

Investment Highlights

§         In past decades, the PRC government has actively advocated the development and adoption of new technologies for information and communication in all spheres of government, industry, education and culture to improve service quality and management capability. China’s public security information technology space is estimated at $4.5 billion and analysts expect it to grow at 19% for the next five years. The GIS system space is estimated at $1.3billion and is expected to grow at about 45% for the next five years.

§         As a result of the Company’s advanced technology, successful track record of execution, and well recognized reputation, CPST controls 100% share of the market for PGIS solutions and 30% share of the market for public security information technology market within the Guangdong province and Shenzhen City.

§         CPST currently has exclusive licenses to 16 registered and copyrighted software solutions in China that provides it with a first mover advantage, due to network economies of scale as well as switching costs, which protects its margins. In addition, CPST owns several qualifications and certifications which are required for bidding for certain PRC government contracts in China.  Due to its proven technology, successful implementation record and industry reputation, CPST currently enjoys a high government contract win ratio.

China Shenghuo Pharmaceutical Holdings, Inc.

Company Description

China Shenghuo Pharmaceutical Holdings, Inc. is a leading traditional Chinese pharmaceutical company, focused on research, development, production and marketing of Sanchi-based medicinal products. Sanchi shortens coagulation and bleeding time, improves women’s menstrual symptoms, reduces cardiovascular disease, enhances memory, regulates the immune system and counteracts stomach acid.  Through its subsidiary, Kunming Shenghuo Pharmaceutical (Group) Co., Ltd., China Shenghuo produces thirty-one State Food and Drug (“SFDA”) approved medicines, including its flagship product, Xuesaitong Soft Capsules, which is currently listed in the nation’s Insurance Catalog.  Currently, the Company has a sales network of agencies and representatives throughout China that market Sanchi-based traditional Chinese medicine to 1,650 hospitals and 1,500 drugstores as prescription and over-the-counter treatments, primarily for cardiovascular, cerebrovascular and peptic ulcer disease.

Investment Highlights

§         China Sheghuo’s primary product, Xuesaitong Soft Capsules, which improves blood circulation and treats cardiovascular and cerebrovascular diseases, has patent protection from the SFDA through 2012.  In 2005, it was added to China’s National Insurance Catalogue, which entitles patients to a partial reimbursement on purchases, spawning significant growth.  In 2007, Xuesaitong received nationwide price protection from the National Development and Reform Commission as a high-quality, high value product.  Xuesaitong’s listing in the Insurance Catalog caused a surge in product sales and opened new market opportunities expected to continue in the near future.

§         China Shenghuo plans to strategically develop new Sanchi-based products in order to maintain sales growth.  The Company also has a Sanchi-based cosmetics line and plans to expand the cosmetics product line.  The “12Ways” beauty line is relatively new and is still a small portion of the sales mix.  The Chinese cosmetics market is $11 billion annually, according to IMS Health, and is expected to grow between 25% and 50% in the next decade.  The cosmetics business enjoys a faster time-to-market, with higher margins and will diversify China Shenghuo’s revenue stream.

§         China Shenghuo’s sales network is staffed by 450 salespeople, spans 186 cities in addition to Yunnan Province and covers major, high-density markets such as Beijing, Chongqing and Shanghai.  Its products are sold in 1,650 hospitals and 1500 drug stores, with sales distribution of 85% via distributors and 15% via direct sales.

China TransInfo Technology Corp.

Company Description

China TransInfo Technology Corp. was established in October 2000 and is headquartered in Beijing. Through its 95% owned subsidiary (the other 5% is owned by Peking University), Beijing PKU ChinaFront High Technology Co., Ltd., the Company uses a full range of self-developed 2-Dimension (“2D”) and 3-Dimension (“3D”) Geography Information System (GIS)

platforms to provide Total Solutions, Real Time Traffic Information Platforms and composite software-hardware products. Most of China TransInfo’s offerings are geared towards the transportation industry.

Investment Highlights

§         The size of China TransInfo’s combined target markets could reach over $20 billion in the years 2006-2010 and the Chinese GIS industry is currently growing at a 50% CAGR.  In 2006, China’s Ministry of Communication (MOC) initiated a plan to develop the utilization of Traffic Information Systems to improve the efficiency and management capabilities of traffic volumes and transportation systems in China.  Digital City is a Chinese government initiative to build out the information technology infrastructure by building broadband and wireless networks in every city in China.  In the Land & Resource market, China TransInfo should benefit from China’s 11^th 5-year Plan, in which Chinese governments are planning to install Land Resource GIS Assessment Systems, City Geological Information Analysis and Disaster Forecast Systems.

§         China TransInfo has a proven track record of successful implementations, a high win rate and strong client base.  The Transportation Information System is a major national initiative and China TransInfo has won the largest number of contracts in the first round of bids.  After the government completes the beta testing phase, it will rollout the GIS technology to 600 municipalities in China.  The Company’s strong client base includes leading government ministries such as MOC and the Ministry of Land & Resources, as well as local governments such as Beijing, Tianjin and Chengdu and the Transportation Planning and Research Institute.

§         China TransInfo plans to convert established business into various consumer data services to provide recurring revenue streams. The Company plans to become a transportation information service provider in such areas as GPS, mobile phones, radio stations and automobile manufacturers.

China Water Drinks

Company Description

China Water & Drinks operates bottled water production plants in four provinces in China – Guangdong, Jilin, Shandong and Guangxi, and has total annual production capacity of 972.5 million liters of purified water.  The Company’s high quality bottled water is sealed in sterilized containers meeting Chinese government hygiene standards.  China Water & Drinks has over 3,600 distributors and retailers selling its bottled water in 11 provinces in China.  The Company markets its own product under the brand “Darcunk”, supplies purified water to both local and international beverage brands such as Coca-Cola, Uni-President and Danone, and provides private label bottled water for companies such as Sands, Macau.

Investment Highlights

§         CWD was the first bottled water supplier in China for Coca-Cola, with whom it has an eleven year history of successful cooperation.  This is a strong endorsement of its high quality level in terms of product and management.  CWD plans to leverage its strong reputation as a quality producer of purified water within the industry and widespread distribution network to make “Darcunk” a leading brand.  The Company is exploring launching a variety of new high margin water products with special functions such as oxygen or vitamin enhanced to diversify its product portfolio.

§         China Water & Drink plans to build a national company and has aggressive expansion plans.  The Company had 650 million liters of capacity at the end of 2006.  As of September 30, 2007, production capacity reached 972.5 million bottles, with 258.5 million bottles added from the acquisition of Nanning and Shenyang facilities.  The Company expects to reach capacity of 1.5 million bottles through internal growth and acquisitions by the end of the first quarter of 2008.

§         According to a report issued on July 17, 2007 by China’s State Environmental Protection Administration, tap water in half of China’s major cities is polluted with industrial chemicals and fertilizers.  Consumption of bottled water in China is expected to reach $5.2 billion by 2011 compared to $3.4 billion in 2006, a 9% CAGR, according to Euromonitor International.  Consumption of bottled water in China is expected to keep rising as the public’s desire to ensure safe drinking water increases.

China Wind Systems, Inc.

Company Description

Founded in 1995, China Wind Systems, Inc., (China Wind, the “Company”) is in the business of supplying precision wind components for use in the wind energy industry. Through its affiliates, Huayang Dye Machine and Huayang Electrical Power Equipment, collectively known as the Huayang Companies, manufactures and sells industrial equipment for use in the textile and coal power industries in the People’s Republic of China. In first half of 2007, China Wind Systems launched its wind energy business by supplying forged rolled rings to the wind industry. The Company currently supplies rolled rings less than 5 meters in diameter. The rolled rings are primarily used in the railway, heavy manufacturing, petrochemical, metallurgical, sea port machinery, defense and radar, as well as the wind power industry. The Company intends to manufacture its own forged rolled rings and other wind components and is currently in the first phase of expansion and is installing new equipment at its new manufacturing facility located in Wuxi City, the Peoples Republic of China.

Investment Highlights

§         China’s Eleventh five-year plan emphasizes the generation of electricity using alternative energy sources. The total installed capacity for wind energy is estimated to be 1,000 GW. As of year-end 2006, the total installed capacity in China stood at 2.6 GW, resulting in an average annual growth rate of 46%, for the last ten years. According to a report by the Chinese Renewable Energy Industries Association, China’s wind energy plan is to reach 20 Gigawatts (GW) of capacity by 2020. This scale of wind power requires 20,000 modern wind turbines and an investment worth USD 40 billion; putting China on track to become the world’s biggest market for wind energy.

§         China Wind will leverage its experience in manufacturing high precision industrial equipment to producing critical components for use in the wind energy industry. The Company’s product portfolio will consist of large forged rolled rings, of up to 8 meters in diameter for use in large wind turbine units >1MW capacity, as well as other wind energy components such as shafts, yaw bearings, gear boxes and blades.

§         Revenues were up 34.4% and net income was up 44%, during the nine months ended 2007, compared to the 9 Months ended 2006 at $16.6 million and $2.6 million, respectively. Net income was adjusted for the third quarter 2007, with a one time tax credit of $6.8 million. As part of its growth plan, the Company constructed a new manufacturing facility in August 2007, in Wuxi City, for which the company has begun the acquisition of necessary assets.  The facility will be used exclusively in the manufacture of wind energy components. The revenue from the wind energy business is expected to contribute 8% of total revenue in 2007.

Cirrus Logic, Inc.

Company Description

Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a broad range of consumer and industrial markets. Building on its diverse analog and signal-processing patent portfolio, Cirrus Logic delivers highly optimized products for consumer and commercial audio, automotive entertainment, and industrial and aerospace applications. The company operates from headquarters in Austin, Texas, with offices in Tucson, Ariz., Europe, Japan and Asia.

Investment Highlights

§         Cirrus Logic reported third quarter fiscal year 2008 revenue of $48.9 million, compared with $47.0 million in the previous quarter, and $45.3 million during the third quarter of fiscal year 2007. Third quarter gross margin was 56 percent compared to 61 percent for the third quarter of fiscal year 2007 and operating expenses for the quarter were $26.1 million. Net income on a GAAP basis was approximately $4.2 million. Total cash and marketable securities at the end of the third fiscal quarter was $252 million, compared with $245 million at the end of the prior fiscal quarter.

§         Cirrus Logic's primary product line include mixed-signal audio products, such as high-precision analog and mixed-signal products for consumer, professional and automotive entertainment markets; industrial products, such as high-precision analog and mixed-signal components for industrial measurement applications, such as industrial process control, analytical instruments, consumer utility, digital power meters and seismic systems, and embedded products including high-precision processors and software for consumer audio, professional audio and industrial applications. Cirrus offers approximately 650 products to over 2,500 end-customers worldwide through both direct and indirect sales channels.

§         Cirrus serves customers from international sales offices in Europe and Asia, including the People's Republic of China, Hong Kong, South Korea, Japan, Singapore and Taiwan. During the fiscal year ended March 25, 2006 (fiscal 2006), Cirrus Logic sold its digital video product line assets to Magnum Semiconductor, Inc., a privately held company. In January 2007, the Company acquired Caretta Integrated Circuits, a fabless IC design company based in Shanghai. In July 2007, Cirrus Logic, Inc. announced that it has closed on its agreement to acquire Apex Microtechnology, a provider of precision high-power analog amplifier products.

City Telecom Ltd.

Company Description

City Telecom (H.K.) Limited, together with its subsidiaries, provides residential and corporate fixed network, and international telecommunications services in Hong Kong and Canada. It offers dial up and broadband Internet access, local voice-over-Internet protocol (IP), and IP-TV services. Its international telecommunications services and products include direct dial services, international calling cards, and mobile call forwarding services. As of August 31, 2007, City Telecom (H.K.) had 683,000 fixed telecommunications network service subscriptions. The company was founded in 1992 and is based in Kwai Chung, Hong Kong.

Investment Highlights

§         City Telecom has been aggressive in promoting various services in international telecommunications, with the aim of serving its customers the best it can.  In addition, CTI participated in the investment for construction of submarine cables, including the Japan-US Cable to connect the US and Japan across the Pacific Ocean, as well as the Asia Pacific Cable Network 2, connecting City Telecom to eight districts in Asia and allowing a direct connection with the major fixed network operators in China. This linkage limits the Company’s dependence on third party capacity, giving it more control over transmission costs and adds value to services offered to customers.

§         Over the years, Hong Kong Broadband Network Ltd. has invested over HK$2 billion in establishing its own network. Leveraging on the superior network built by optical fiber and CAT-5E high grade cables on Metro Ethernet IP technology, this advanced network caters to "multi-play" applications - conglomerating broadband Internet access, telephony, fully-digitalized IP-TV and corporate data services in a single network.

§         The year ended August 2007 was one of the best years in the Company’s 15-year history, in terms of the strong cash flow as its Earnings before Interest, Taxation, Depreciation and Amortization (EBITDA) grew by 44.3% to HK$353.8 million. EBITDA margin expanded from 21.1% in FY06 to 31.0% in FY07. Profit attributable to shareholders was HK$28.9 million in FY07, which compared with a loss of HK$92.2 million.

Diguang International Development Co., Ltd.

Company Description

Diguang designs, manufactures, sells and distributes light-emitting diode (LED) and cold cathode fluorescent lamp (CCFL) backlights for liquid crystal displays (LCDs).  Commercial applications for the backlight products include color displays for cell phones, in-vehicle televisions and navigation systems, digital cameras, camcorders, PDAs, DVDs, CDs, and MP3/MP4 players, and other household and industrial appliance displays.

Investment Highlights

§         Diguang is one of the largest liquid crystal display (LCD) CCFL backlight producers in China and an emerging leader in light emitting diode backlights.  Diguang’s growth will be driven by development of new LED-based backlights and the Company believes that it has several competitive advantages with its LED technology, including its suite of solutions to improve heat dissipation and to enhance luminous efficiency.  Historically, this challenge has restricted the use of LED technology to smaller displays.  Diguang has crucial patent protection, which should contribute to an evolving leadership position in the LED backlight marketplace.

§         Backlights are used in a wide variety of consumer and industrial products with LCD displays.  While the $19 billion global backlight market was expected to reach $20.2 billion in 2006, industry analysis firm Displaybank forecast that the $7.5 billion market for large-size LCD backlights would reach $9.94 billion in 2006, with sustained annual growth of 34% through 2008.

§         In Q307, Diguang grew sales 30% sequentially from Q207 and returned to profitability.  In July 2006, Diguang received its first order for 100,000 pieces of large display backlights for 19” computer monitors, and in Q107 was named in-house supplier to one of the four “Taiwan Tigers” of the TFT-LCD panel industry.  The Company has also become a supplier to a top tier Korean manufacturer and acquired a manufacturing presence in southern China.  These achievements, plus certification by leading Korean and Japanese manufacturers, improve Diguang’s competitive position.

 Duoyuan Digital Printing Technology

Company Description

Asian Financial Inc. (“the Company”), through its operating subsidiary Duoyuan Digital Printing Technology Industry (China) Co. (“Duoyuan”), is engaged in the business of manufacturing and marketing commercial offset printers and related solutions in the People’s Republic of China (“PRC”).  The Company combines technical innovation with PRC cost advantages to offer a broad range of offset printing equipment at substantial price discount to western models.  The Company has manufacturing facilities located in Lanfan and Hunan and has a distribution and service network located in over 100 cities in China.  Headquartered in Beijing, Duoyuan is the largest non-government owned major offset printing equipment and printing solutions provider in China.

Investment Highlights

§         As the largest privately-owned offset printing equipment and printing solutions provider in China, Duoyuan is able to introduce new technologies and launch new products faster than its domestic state-owned competitors.  Duoyuan also has better internal controls over sales, payments and collections, which streamlines its marketing efforts.  Duoyuan’s market-oriented and client centric focus has contributed to its strong growth and profitability over the last two years.

§         The printing equipment industry is characterized by high barriers to entry, including significant capital investment for manufacturing machinery and a high level of technical expertise required to design and operate it.  Duoyuan is an established player in the offset press market in China, with a 15% market share. Duoyuan also enjoys strong brand recognition and a reputation for quality products.

§         Because it operates in the PRC, Duoyuan enjoys cost advantages that allow it to offer quality products at a fraction of the price charged by its international competitors.  This has provided opportunities for expansion into several markets outside of China, including price-conscious markets in Africa, the Middle East and parts of Asia.  In addition, Duoyuan is developing a marketing strategy to offer its products to certain developed and Western countries, where there is a significant demand for standardized low cost machines.

Elbit Vision Systems Ltd.

Company Description

EVS offers a broad portfolio of automatic in-line inspection and quality monitoring systems used to improve product quality and increase production efficiency. EVS maintains headquarters and manufacturing in Israel, R&D operations in Israel, and offers global sales and support coverage. EVS has two operating divisions: the Automated Optical Division, which provides automatic optical inspection for the textile manufacturing industry, and the Non-Destructive Automated Inspection Systems Division, which provides non-destructive ultrasound inspection systems for heavy manufacturing including automotive, aeronautics, steel and others.

Investment Highlights

§         The products of ScanMaster Systems (IRT) Ltd., or ScanMaster Ltd., serve the high end of a non-destructive testing market. The company’s products enjoy a high technological barrier to entry that translates into a limited number of competitors in each application niche. In terms of sensitivity, speed, resolution, data acquisition and processing hardware and software, the company’s products are believed to be well positioned in the industry.

§         ScanMaster Ltd. has made more than 600 equipment installations in 26 countries. Typical uses of ScanMaster equipment include the imaging and assessment of defects in forged discs used in jet engines, detection of flaws in welded pipe, periodic inspection of the integrity of train rail, evaluation of the integrity of spot weld bonds in automobiles and detection of bonding defects in composite aerospace structures.

§         Elbit Vision Systems recently signed a strategic distribution and supply agreement with Unipart Rail Ltd., one of the largest independent rail logistics companies in Europe. The agreement authorizes Unipart to distribute the Company's ultrasonic solution -- ScanMaster -- to the rail industry in the UK. This strategic alliance with Unipart Rail is one of the most important milestones in EVSNF’s long term growth strategy to increase penetration levels in the rail industry.

GVI Security Solutions, Inc.

Company Description

GVI Security Solutions, Inc. provides the complete line of Samsung Electronics professional video surveillance and security products to the commercial markets in North, Central and South America.  GVI also sell its own GVI branded product line, which complements Samsung’s products.  Together, GVI and Samsung offer a complete line of video surveillance services and technology.

Investment Highlights

§         In their first year at GVI, CEO Steven E. Walin and COO/CFO Joseph Restivo’s proven turnaround strategy of focusing on the company’s core market, developing a higher margin product mix, and instituting effective cost controls delivered dramatic results, as GVI reported net income of nearly $1 million in the first nine months of 2007 in sharp contrast to the loss of almost $10 million reported in the first nine months of 2006.

§         GVI’s executive management team is led by Steven E. Walin, CEO, former President of GE Security Enterprise Solutions, and Joseph Restivo, COO/CFO.  Mr. Walin and Mr. Restivo are now working on their third successful turnaround together, following their successes at Casi-Rusco, which was acquired by GE, and Security Technologies Group (STG), which was acquired by Siemens under their leadership.

§         GVI and Samsung Electronics recently announced a $1.5 million joint marketing plan funded by Samsung to roll out a range of new products.  The strategic growth plan calls for doubling market share over the next three years targeting annual sales in excess of $100 million by 2010.  GVI has the full backing of Samsung to provide increased investment in R&D and acquisitions.  GVI is focusing on the mid-market business segment, where both companies believe the Samsung brand is fully capable of competing with the largest players in the market.

HQ Sustainable Maritime Industries, Inc.

Company Description

HQ Sustainable Maritime Industries, Inc. is a China-based, fully integrated aquatic producer and processor of toxin free tilapia and marine bio and healthcare products, with operations in the environmentally pristine island province of Hainan.  HQ is dedicated to sustainable toxin-free aquaculture using nutraceutically enriched feeds in order to provide its customers with the purest products possible. As a fully integrated company, HQ has control of the aquaculture stage, as well as processing and sales.  The Company markets its products in Asia, America and Europe.  It seeks to expand its operations through additional processing facilities in China and marketing efforts throughout North America and Europe.

Investment Highlights

§         Aquaculture has been the world’s fastest growing segment in the food production system for the past few decades.  This growth is due in part to the fact that the world’s ocean stock is anticipated to be insufficient to meet the growing demand for fish in the near future.  Tilapia has become a large segment of the aquaculture market, second only to carp sales in volume.  At its current growth rate, tilapia is projected to become this century’s most important aquaculture crop, with global sales expected to exceed $4.0 billion by 2010.

§         HQ’s state-of-the-art plant and equipment ensure environmental and quality assurance.  The plants are certified by  Hazard Critical Control Points (HACCP) and European Code (EU).  Its facilities also meet Chinese Good Manufacturing Practice (GMP) products for sale in China.  HQ is also the first tilapia processing plant to meet the guidelines for the Aquaculture Certification Counsel (ACC), which is critical in order for large U.S. retailers such as Wal-Mart to purchase these products.

§         The Company’s Marine Bio and Healthcare division participates in $6.0 billion market in China.  There are significant growth opportunities here, given China’s affinity for natural remedies and health products.  According to the United Nations Development Program, the Chinese pharmaceutical industry has experience an average annual growth rate of over 15% since 1998.

Hutton Holdings Corp. (China Bottles)

Company Description

HTTH is a company with expertise in the production of beverage bottles, which are mainly made of PET, a type of plastic with desirable characteristics for packaging, including clear and a wide range of colors and shapes, strength, good resistance to heat, moisture, diluted acid, and recyclable. The Company is engaged in producing, marketing and selling a full range of beverage bottle production machineries including high speed injection molding machines, semi-automatic and high speed automatic plastic stretch blow molding machines, infrared ray performance heaters, label heat shrinkers and injection molds and blowing molds. HTTH also provides bottle production service. The Company now is selling machines using the brand name “Guo Zhu”.

Investment Highlights

§         Beverage packaging is one of the key applications for packaging machines. In 2006, beverage packaging accounted for 20% of total global sales of packaging machinery, ranked second after food packaging which accounted for 40%. In terms of geographical classification of the global market for packaging machinery in 2006, the Americas had the largest market share which was equivalent to 31.8% of the total market. China plus Japan and Europe had similar sized of shares which were equal to 25.9% and 24.7%, respectively. Asia-Pacific ranked the fourth which owned a market share of 11.2%. Africa plus Middle East owned 3.5% and Russia with Central Asia owned the remaining 2.9%. It is expected that the global market for beverage packaging machinery is growing at an annual rate of around 3%.

§         Packaged beverages are usually packed in four kinds of packaging materials: cartons, cans, glass and PET. In 2003, these four kinds of packaging material accounted for 98% of 870 billion units; glass was the most popular kind of packaging accounting for 33% of the market and Can ranked the second with 27%. However, from the research of marketers and players in the industry, PET is the most rapidly growing packaging material for beverages. It is expected that 41% of beverage sold in 2015 will be packaged in PET bottles which equal to 565 billion units. PET outperforms other packaging materials in popularity.

§         The strong demand for PET beverage bottle production machines has resulted in a supply/demand imbalance. The growth rate of demand of PET bottles is 9% per annum which is promising for the industry. HTTH’s major growth strategy is to expand its production capacity to cope with the growth of the market so that it can preserve the Company’s position in the industry. HTTH is focusing on gathering and acquiring resources available inside or outside of the Company to execute this strategy. The Company is refining production processes so as to speed up its product delivery time in order to increase the efficiency of working capital.

LanOptics Ltd.

Company Description

LanOptics' business consists exclusively of the business of EZchip, a company that is engaged in the development and marketing of Ethernet network processors for networking equipment. EZchip provides its customers with solutions that scale from 1-Gigabit to 100-Gigabits per second with a common architecture and software across all products. EZchip's network processors provide the flexibility and integration that enable triple-play data, voice and video services in systems that make up the new Carrier Ethernet networks. Flexibility and integration make EZchip's solutions ideal for building systems for a wide range of applications in telecom networks, enterprise backbones and data centers.

Investment Highlights

§         EZchip's innovative TOPcore® technology enables EZchip's network processors to deliver their exceptionally high performance. TOPcore technology integrates many high-speed processors; each optimized to perform a specific task. Four types of TOPs (Task Optimized Processors) are employed to perform the four main tasks of packet processing, i.e. parse, search, resolve and modify. A programmable TOP corresponds to each of these tasks, and performs its respective task exceptionally fast.

§         EZchip provides a complete solution for implementing Ethernet network processing with advanced features. The Company’s products and solutions include NP-3 Network Processor, NP-2 Network Processor, NP-1c Network Processor, EZdesign SDK Toolset, EZdriver Control API, Evaluation Systems, and Platforms for SW Vendors.

Lattice Inc.

Company Description

Lattice Inc. is a leading supplier of secure information and communication technology solutions to the Federal government as well as to commercial market verticals.  Lattice has developed a strong customer base in the Federal IT market space, including the Department of Homeland Security, Department of Defense, U.S. Navy, Defense Threat Reduction Agency, National Guard and Peace Corps.  In the private sector, it serves Lockheed Martin, General Dynamics, SAIC, Motorola, Logistics management Institute, BAE Systems and Hughes Network Systems.

Investment Highlights

§         With an established top-tier customer base, Lattice has an in-depth understanding of government clients’ secure information and communications technology requirements, and it enjoys high visibility into future revenues.  Its backlog as of November 30, 2007 stood at $84 million.

§         Lattice developed and acquired over the years several core proprietary technologies such as Aquifer, a DOD certified software application development platform; BubbleLINK, a scalable communication transaction management platform as well as SensorView, the market’s most advanced command and control system for nuclear, chemical and biological sensors.  As a result, Lattice is able to provide product and service solutions with unique features and functionality that address important security requirements of distributed computing networks, as well as the growing need for data retention and network monitoring to address modern security threats.

§         Lattice remains focused on identifying, acquiring and integrating companies that can broaden its client relationships and deepen its proprietary technology platforms in the areas of highly secure advanced technology solutions suitable for deployment within key government agencies.  It also sees significant opportunities to cross-sell its comprehensive set of capabilities to existing clients and to reference-sell into commercial markets by leveraging successful implementations of its core proprietary technologies in the Federal IT space.

Long-E International, Inc.

Company Description

Long-E International, Inc. (“Long-E,” “the Company”) was established in 2000 as a British Virgin Islands corporation. Through its subsidiary, Agilon Science & Technology (Shenzhen) Co., Ltd., located in Shenzhen, Guangdong Province, China, Long-E develops, manufactures, markets and services high-end automotive electronic anti-theft and safety systems, primarily including alarm systems, tire pressure monitoring systems, and reverse sensor systems. The Company distributes its products domestically and internationally to automotive manufacturers and the aftermarket through its network of wholesalers and retailers. The Chinese automotive market is one of the fast-growing markets in the world, and as the country becomes more affluent, demand for high-quality electronic systems continues to grow.

Investment Highlights

§         The automotive industry has seen significant transformation, including increased reliance on independent components suppliers, more emphasis on integrated electronic systems and technological content and greater demand for safety-related products.

§         Long-E is growing rapidly and profitably. For the full year 2006, revenue was increased 107% to $27.8 million from $13.4 million in 2005. Gross margin was 27.0% in 2006, up from 25.3% in 2005. Net income in 2006 was $2.2 million, or $0.10 per diluted share, an increase of 119% from $1.0 million, or $0.05 per diluted share, in 2005.

§         Long-E’s emphasis on significant research and development investment has brought to market a diverse portfolio of innovative, proven products for its customers using the latest technologies, materials and processes. These include two-way anti-theft devices, RFID-equipped alarms, digital reverse sensor systems and computerized tire pressure monitoring systems – primarily for the high-end market. The Company’s production process has earned ISO 9001 certification, as well as certifications from the Chinese government, the U.S. Federal Commerce Commission, the European Union and ISO TS16949, which differentiate Long-E’s high-end products from the competition and help create strong brand identity.

Renhuang Pharmaceuticals, Inc.

Company Description

Renhuang Pharmaceuticals, located in Harbin, Heilongjiang province, in Northeast China, is a leading integrated developer, manufacturer and distributor of a broad line of high-quality nutraceutical, natural medicinal and bio-pharmaceutical products. The Company provides three major product lines including the Acanthopanax-based natural medicinal products, Shark Power Health Care series (a natural marine biology product), and Traditional Medical Products, currently representing 53%, 12%, and 35% of total revenues, respectively. Renhuang has a dominant market position in Acanthopanax-derived products, controlling an estimated 70% of China’s natural resource of Acanthopanax (also known as Siberian Ginseng) that grows in Heilongjiang province but does not grow in abundance anywhere else in China. Siberian Ginseng has become one of the most popular natural medicinal products in the world due to its well known ability to help people enhance overall health, improve memory, relieve stress, combat fatigue, restore energy, and increase endurance.

Investment Highlights

§         Through its GMP certified facilities, the Company manufactures over 200 types of western, traditional Chinese medicines (TCM), and branded pharmaceuticals. The Company sells raw materials and finished products using its extensive distribution network and third party distributors throughout China. Renhuang controls an estimated 70% of China’s natural source of Acanthopanax (also known as Siberian Ginseng), a widely used drug for multiple indications, and hence dominates the market for Acanthopanax-based medicinal and nutraceutical products. The Company’s distribution network includes over 3,000 sales agents in 70 sales centers across 24 districts, covering over 50% of the greater China. Additionally, Renhuang exports its pharmaceuticals to Russia and Southeast Asia.

§         Using its strong R&D team, Renhuang performs contract research and development services. Lead pharmaceuticals include: Acanthopanax based natural medicine products for treating depression, melancholy and other illnesses, Biopharmaceuticals (Shark Power Health Care and Ginseng Ointment) for multiple indications, and TCM. For nine months ending July 31, 2007, Renhuang’s revenue totaled $20.1 million, and net income was $8.5 million, up 175% from the same period in the prior year.

ShengdaTech Inc.

Company Description

ShengdaTech Inc. is a leading manufacturer of nano precipitated calcium carbonate (“NPCC”), a functional filler used as a means of reducing material costs by replacing a portion of higher cost materials while significantly strengthening a product’s intensity and quality.  The Company is the only supplier of NPCC products to the tire industry and also supplies NPCC to the PVC building material, paint/ink, and paper industries.  ShengdaTech’s legacy chemical division, a mature business that generates consistent cash flow, is a major manufacturer and supplier of ammonia bicarbonate, liquid ammonia, methanol, melamine and other agrochemical products in Shandong Province, China.

Investment Highlights

§         ShengdaTech has transitioned from a chemical producer to a high growth company targeting the NPCC market.  As one of the first producers of NPCC, the Company has first mover advantage in establishing key relationships with customers.  ShengdaTech has attained economies of scale on proprietary product technology and has co-developed with Tsinghua University a breakthrough membrane dispersion technology for producing the most symmetrical and easily controllable nano-particle on the market, with full right to all commercialized applications.

§         ShengdaTech’s NPCC business in the third quarter of 2007 accounted for 48% of revenues compared to 28.5% in the prior year’s third quarter.  Gross margins rose to 35.6% in the third quarter of 2007, up 5.9% from 25.3% from the same period a year ago due to growth in the NPCC business and improved efficiencies in its chemical business.  Over the past three years, ShengdaTech has achieved compound annual growth rates of 33.9% in revenues, 53.7% in gross profit and 91.7% in net income.

§         ShengdaTech is the largest NPCC producer in China and continues to expand capacity.  In September 2006, the Company opened a new NPCC factory, increasing annual NPCC capacity by 60,000 metric tons.  It added another 40,000 metric tons in July 2007, bringing total capacity to 130,000 metric tons.  ShengdaTech is adding another 60,000 metric tons of capacity for total NPCC capacity of 190,000 metric tons.

Shengtai Pharmaceutical, Inc.

Company Description

Shengtai Pharmaceutical, Inc. through its wholly-owned subsidiary Weifang Shengtai Pharmaceutical Co. Ltd., is the leading manufacturer and supplier of glucose products in China.  Its products include pharmaceutical grade glucose used for medical purposes, and other glucose and cornstarch products for the food and beverage industry and for industrial production.  The Company is currently selling most of its products to medical supply companies, pharmaceutical companies, medical supply exporters and food and beverage companies in 27 provinces in China and also to over 60 countries.

Investment Highlights

§         The rapid growth of Shengtai Pharmaceutical’s business is largely attributable to robust domestic and overseas demand for pharmaceutical grade glucose (dextrose) and its strong quality control system.  The Company has taken the leadership position in China in producing glucose series products from its facilities which comply with international standards for hygiene.  It is estimated that Shengtai Pharmaceutical has over 30% of China’s pharmaceutical dextrose market.

§         Shengtai Pharmaceutical completed its new cornstarch production complex with annual production capacity of 300,000 tons, which is situated next to its existing glucose production plant.  This new plant began producing cornstarch in January 2007 and for the first year, only 40% of capacity could be utilized.  Full capacity can be gradually implemented within two to three years.  Shengtai Pharmaceutical started to upgrade its existing glucose production facility in October 2006 and it is expected to be completed in May 2008.

§         Shengtai Pharmaceutical is also developing new, higher margin products to diversify its revenue stream.  It recently set up a new product line to manufacture sodium gluconate, a non-corrosive, non-toxic and highly pure gluconate, which is gaining popularity as a chelating agent in China and is widely used in pharmaceutical, construction and chemical industries.

Sino Gas International Holdings, Inc.

Company Description

Sino Gas International Holdings, Inc. through its indirect wholly-owned subsidiary, Beijing Gas, is a leading developer of natural gas distribution systems in small- and medium sized cities, as well as a distributor of natural gas to residential, commercial and industrial customers in China.  Its revenues come from three primary areas: i) the sale of interconnection to its natural gas distribution system; ii) the sale of natural gas; and iii) the sale of natural gas appliances and equipment, gas meters, as well as repair, maintenance and related services.

Investment Highlights

§         Sino Gas currently operates 24 exclusive gas distribution concessions with approximately 70,000 connected and 642,000 potential households, and six commercial and industrial customers.  The Company currently has 5 new locations under development and is actively evaluating additional opportunities for growth, including acquisitions of new franchises and development of new residential and industrial projects.

§         Presently, the Company has exclusive compressed natural gas (CNG) contracts with Petro China to source a guaranteed 100,000m³ per day of natural gas from the North China Oilfield.  It also has a LNG contract that guarantees natural supply form Xinjiang Guanghui and a long-term natural gas supply contract with Sinopec for both LNG and CNG.  In addition it has a long-term cooperation agreement with Petro China and China Oil and Gas to source both CNG and LNG from the West-East pipeline which is the main natural gas pipeline in China.

§         The Chinese government in recent years has begun to prioritize the development of the natural gas market in China in order to leverage its substantial gas reserves, diversify energy resources and improve the environment.  To achieve its objectives directly, or through the State Owned Enterprises, it embarked on a major investment program to expand the country’s pipeline backbone and to build liquefied natural gas (LNG) plants to process imported gas for distribution along the east coast.  The government also enacted a concession system to attract private investors and to accelerate the development of a healthy urban market for piped natural gas.

Sinoenergy Corporation

Company Description

Sinoenergy manufactures non-standard pressure containers as well as other key components associated with compressed natural gas (CNG) storage and related systems for use in CNG filling stations, transportation trailers, and vehicle conversion kits.  Sinoenergy also provides design, construction, technical consulting and equipment installation services for CNG filling stations in China.  Sinoenergy is a leading player in the Chinese CNG infrastructure market.

Investment Highlights

§         Sinoenergy’s non-standard pressure containers division manufactures a wide variety of pressure containers for use in the petroleum, chemical, metallurgy and electricity generation, and the food and brewery industries.  The Company is one of a few, non-standard pressure container manufacturers in China and holds A1, A2 licenses to design and manufacture these in China.  The CNG storage transportation segment manufactures CNG transportation trailers, filling station equipment, vehicle conversion kits and related CNG equipment.  Sinoenergy is one of three companies in China that holds C2 and C3 licenses to design and manufacture CNG truck trailers.  The company is well positioned to play a leading role in developing the clean burning CNG-powered vehicle market in China.

§         Sinoenergy opened its first two CNG filling stations and has begun distributing compressed natural gas to vehicles as of September 2007.  Going forward, Sinoenergy plans to build and operate its own network of CNG filling stations targeting taxi and fleet bus operators, and to develop a CNG retail and wholesale business across mainland China.  The Company will also provide high-margin design services to the large players such as CNPC and Sinopec, in this segment.

§         An industry projection made by PetroChina estimates that there will be more than 1,000 CNG filling stations and more than 300,000 CNG vehicles in mainland China before the year 2010.  In addition, Sinoenergy has in place supply commitments for up to 400 million cubic meters of gas.  This should be sufficient to approximately 139 CNG substations, which will enable Sinoenergy to build a CNG wholesale and retail distribution network in Central and Eastern China.

TechPrecision Corporation

Company Description

TechPrecision Corporation, through its wholly-owned subsidiary Ranor, Inc., produces high-precision, large scale metal fabrications and machined assemblies weighing up to 100 tons.  A significant part of the Company’s revenues are derived from the alternative energy industry, with solar representing 47.4% of sales during the Company’s first half year (FYE March 31 2008) and nuclear 3.3%.  The Company also manufactures products for the aerospace/defense, medical and other commercial industries.

Investment Highlights

§         TechPrecision is a highly valuable contractor in the alternative energy industry due to leveraging its expertise from over 50 years of developing mission critical products for the aerospace and defense industries to meet exacting requirements for high pressure, strength, and precision metal fabrications.  TechPrecision is one of the few facilities in the U.S. with American Society of Mechanical Engineers (ASME) Certifications and Authorizations, which allow the design and construction of commercial nuclear equipment, and nuclear storage and transportation equipment.

§         TechPrecision’s new growth strategy is to focus on higher-volume, long-term projects with more predictable cost structures, and does not seek to bid on certain projects which it does not believe would generate an adequate gross margin.  This strategy has already resulted in improved profitability with gross margins rising from 13% in 2006 to 19% in 2007, and 23% in the first six months of fiscal year 2008.

§         The Company intends to leverage it core competency in large-scale, high precision machining and metal fabrication into higher growth industries.  TechPrecision is currently working with a customer in the medical industry to manufacture critical components for prototype proton beam therapy machines designed to treat cancer.

Vertical Branding, Inc.

Company Description

Vertical Branding is a consumer products company selling high quality household, beauty and personal care products at affordable prices. The Company sells directly to consumers through television, Internet and print advertising as well as wholesale to many of the country’s largest retailers and drug chains in addition to catalog proprietors, home shopping channels and international distributors. The Company’s hottest selling products and brands currently include Hercules Hook, ZorbEEZ, EZ Foldz Step Stool and StarMaker Cosmetics.

Investment Highlights

§         For the nine months ended September 30, 2007, Vertical Branding’s total revenues increased 145%, to $30.5 million, compared to $12.4 million in the nine months ended September 30, 2006. EBITDA for Q3-2007 (ended September 30, 2007) was $722,000, a 684% increase over the $92,000 in EBITDA posted in Q3-2006. The 2007 period includes full quarter contributions from the acquisition of VBI’s retail distribution segment in August 2006.

§         In November 2007, Vertical Branding completed a $4 million equity investment from RENN Capital Group, bringing in fundamental institutional backing; allowing the company to reduce debt by over $2 million; and providing additional working capital with which to pursue business opportunities.

§         The Company has firmly established products in retail channels with strong major chain customers, including Wal-Mart, Kohl’s, Target, Linens ‘N Things, Home Depot, CVS, Rite Aid, K-Mart, Bed Bath & Beyond; VBI products are now sold in more than 30,000 U.S. retail stores, growing to an expected 40,000 in 2008 with the introduction of new product categories.

Zhongpin, Inc.

Company Description

Zhongpin, Inc. is a meat and food processing company that specializes in pork and pork products, and fruits and vegetables in China.  The Company is developing a nationally recognized high quality brand for meats and food products.  Zhongpin sells its products domestically through its Zhongpin specialty stores, food retailers, foodservice distributors, restaurant operators and noncommercial foodservice establishments.  The Company also has established strategic partnerships with leading supermarket chains for exclusive branded counters and major catering companies in China.  Zhongpin exports its products to the European Union, Southeast Asia, Russia and South Africa.

Investment Highlights

§         The Chinese meat industry is going through important changes which are creating domestic and international opportunities for Zhongpin.  China is aggressively working to become a dominant player in the world’s meat industry by supporting the improvement of infrastructure, enforcing food safety laws and promoting standardization.  The result has been meat equivalent to international standards and access to new markets for meat processors.  In addition, domestic meat consumption is on the rise with Chinese living standards.

§         Zhongpin is building brand recognition for its products through a strong marketing and promotion campaign.  Its brand, Zhongpin, is positioned as high quality, fresh, healthy, and nutritious meat and food products primarily targeted at the middle class.  Zhongpin has been able to attract China’s best known supermarket chains and fast food companies as clients, including Carrefour, Metro, Lianhua Supermarket Group, McDonald’s and KFC.

§         Zhongpin has successfully established a unique, vertically integrated fresh meat and meat products supply chain from farming, slaughtering, cutting, processing and wholesaling to retailing via an exclusive network of showcase stores, network stores and supermarket brand counters.  Zhongpin’s unique business model differentiates it from other major national meat and meat products producers in China.