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

Diguang International Development Co., Ltd.

Ascend Acquisition Corp.

Duoyuan Digital Printing Technology

China Agritech, Inc.

Elbit Vision Systems Ltd.

China Biologic Products, Inc.

GVI Security Solutions, Inc.

China Clean Energy, Inc.

HQ Sustainable Maritime Industries, Inc.

China Display Technologies, Inc.

Hutton Holdings Corp. (China Bottles)

China Education Alliance, Inc.

LanOptics Ltd.

China Green Agriculture

Lattice Inc.

China Medicine Corporation

Long-E International, Inc.

China Precision Steel

Renhuang Pharmaceuticals, Inc.

China Public Security Technology, Inc.

ShengdaTech Inc.

China Shenghuo Pharmaceutical Holdings, Inc.

Shengtai Pharmaceutical, Inc.

China TransInfo Technology Corp.

Sino Gas International Holdings, Inc.

China Water Drinks

Sinoenergy Corporation

China Wind Systems, Inc.

TechPrecision Corporation

Cirrus Logic, Inc.

Vertical Branding, Inc.

City Telecom Ltd.

Zhongpin, Inc.

 

 

 

American Lorain Corporation

OTCBB: (ALRC $9.51 – 2/5/08)

 

52-Week Range

$35.20 - $3.00

Revenues (FY2006)

$49.6M

Shares Outstanding

24.9M

Net Income (FY2006)

$5.9M

Market Capitalization

$236.8M

Fiscal Year End

December

 

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.

OTCBB: (ASAQ $5.69 – 2/5/08)

 

52-Week Range

$5.84-$5.42

Revenues (FY 2006)

$36.1M

Shares Outstanding

8.6M

Net Income (FY 2006)

$2.2M

Market Capitalization

          $48.9M

Fiscal Year End

December

 

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.

OTCBB: (CAGC $2.43 – 2/5/08)

 

52-Week Range

$6.25-$2.00

Revenues (ttm)

$29.5M

Shares Outstanding

24.7M

Net Income (ttm)

$5.3M

Market Capitalization

$60.0M

Fiscal Year End

December

 

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.

OTC Pink Sheets: (CBPO $4.50 – 2/5/08)

 

52-Week Range

  $15.00-$2.70

Revenues (ttm)

$32.5M

Shares Outstanding

21.4M

Net Income (ttm)

$8.0M

Market Capitalization

$96.3M

Fiscal Year End

December

 

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.

OTCBB: (CCGY $2.02 – 2/5/08)

 

52-Week Range

$3.10 - $1.10

Revenues (ttm)

$18.6M

Shares Outstanding

21.5M

Net Income (ttm)

$4.01M

Market Capitalization

$ 43.4M

Fiscal Year End

December

 

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.

OTCBB: (CDYT $3.02)

 

52-Week Range

$3.50 - $3.00

Revenues (ttm)

$25.8M

Shares Outstanding

11.6M

Net Income (ttm)

$3.8M

Market Capitalization

$35.0M

Fiscal Year End

December

 

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.

OTCBB: (CEUA $4.05 – 2/5/08)

 

52-Week Range

$6.40-$0.78

Revenues (ttm)

$15.1M

Shares Outstanding

20.3M

Net Income (ttm)

$4.0M

Market Capitalization

$82.2M

Fiscal Year End

December

 

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

OTCBB: (CGAG $N/A – 2/5/08)

 

52-Week Range

N/A

Revenues (FY2007)

$15.2M

Shares Outstanding

18.3M

Net Income (FY2007)

$7.2M

Market Capitalization

N/A

Fiscal Year End

June

 

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

OTCBB: (CHME $2.12 – 2/5/08)

 

52-Week Range

$4.48 - $1.90

Revenues (ttm)

$34.49M

Shares Outstanding

14.8M

Net Income (ttm)

$6.51M

Market Capitalization

$ 31.4M

Fiscal Year End

December

 

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

NASDAQ: (CPSL $5.52 – 12/20/07)

                   

52-Week Range

$12.65-$2.58

Revenues (ttm)

$68.8M

Shares Outstanding

45.9M

Net Income (ttm)

      $8.3M

Market Capitalization

$253.4M

Fiscal Year End

June

 

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.

OTCBB: (CPBY $7.80 – 2/5/08)

 

52-Week Range

$10.80-$4.00

Revenues (9 mos. 2007)

$25.8M

Shares Outstanding

45.6M

Net Income (9 mos. 2007)

$10.4M

Market Capitalization

$355.7M

Fiscal Year End

December

 

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.

AMEX: (KUN $5.40 – 2/5/08)

 

52-Week Range

$19.75-$3.10

Revenues (ttm)

$22.0M

Shares Outstanding

19.7M

Net Income (ttm)

$3.9M

Market Capitalization

$106.4M

Fiscal Year End

December

 

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.

OTCBB: (CTFO $6.10 – 2/5/08)

 

52-Week Range

$8.50-$2.65

Revenues (FY2006)

$7.2M

Shares Outstanding

19.6M

Net Income (FY2006)

$3.0M

Market Capitalization

         $119.6M

Fiscal Year End

December

 

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 11th 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

OTCBB: (CWDK $11.09 – 2/5/08)

 

52-Week Range

$18.70-$5.00

Revenues (ttm)

$46.5M

Shares Outstanding

94.5M

Net Income (ttm)

$12.2M

Market Capitalization

$1048.0M

Fiscal Year End

December

 

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 Administ