blog.chinasecurities.com

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

Gold Horse International, Inc (OTC.BB:GHII)

Gold Horse International, Inc., through its wholly owned subsidiaries, Gold Horse International, Inc. (Nevada) and Global Rise International Ltd., controls and operates Inner Mongolia Jin Ma Construction Co., Ltd., Inner Mongolia Jin Ma Hotel Co., Ltd., and Inner Mongolia Jin Ma Real Estate Development Co., Ltd., all based in Hohhot, the regional capital of Inner Mongolia Autonomous Region in China. Jin Ma Construction has been providing construction and general contractor services in Hohhot to both private developers and to the local and regional governments since 1980. Jin Ma Hotel owns, operates and manages the Jin Ma Hotel, a full-service, two-star hotel and restaurant and banquet facility located in Hohhot. Jin Ma Real Estate develops residential and commercial properties in Hohhot.

On May 28th,  2010,  Solarfun reported Strong Third Quarter Fiscal 2010 Results

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

Third Quarter Highlights
    -- Net revenue increased 30.3% year-over-year to $12.1 million.
    -- Gross profit increased 16.0% year-over-year to $1.9 million, third
       quarter gross margin was 16.0%.
    -- Operating income was $1.4 million compared to operating income of $1.1
       million a year ago.
    -- For the three months ended March 31, 2010, net income increased to
       $1,234,397 from a net loss of $88,080 in the comparable 2009 period.
    -- Excluding non-cash debt financing expenses, adjusted net income was
       $1,486,000 million, or $0.02 per fully diluted share, compared to
       adjusted net income of $321,000, or $0.01 per fully diluted share, in
       the comparable 2009 period.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

Solarfun Power Holdings (Nasdaq:SOLF)

Solarfun manufactures both PV cells and PV modules, provides PV cell processing services to convert silicon wafers into PV cells, and supplies solar system integration services in China. Solarfun produces both monocrystalline and multicrystalline silicon cells and modules. Solarfun sells its products both through third-party distributors, OEM manufacturers and directly to system integrators.

On May 26th,  2010,  Solarfun reported its unaudited financial results for the quarter ended December 31, 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Total net revenues were US$216.2 million in 1Q10, an increase of 17.8% from 4Q09 and an increase of 115.7% from 1Q09.
• PV module shipments, including module processing services, reached 150.6 MW, an increase from 110.8 MW in 4Q09 and from 35.7 MW in 1Q09.
• Average selling price, excluding module processing services, declined, as expected, to US$1.76 per watt in 1Q10.
• Gross profit was US$39.9 million and gross margin was 18.5%.
• Net income attributable to shareholders on a non-GAAP basis(1) was US$23.2 million, an increase of 64.9% from 4Q09
• Net income per diluted ADS on a non-GAAP basis was US$ 0.40, an increase of 63.9% from RMB 1.66 in 4Q09
• Annualized ROE on a non-GAAP basis significantly improved to 26.6 % in 1Q10 from 17.4% in 4Q09 and 2.3% in 1Q09.
• As of March 31, 2010, the Company had cash and cash equivalents of US$137.2 million and working capital of US$289.8 million.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Financial Highlights:

• Solid subscription growth of 84,000 during six months to 1,027,000 as of 28 February 2010
• The fastest growing residential broadband provider in Hong Kong with net additions in broadband of 73,000 to 464,000 as at 28 February 2010, compared with 75,000 additions for the entire twelve months to 31 August 2009
• Turnover grew by 9.0% year-on-year to HK$786.0 million driven by higher revenue contribution from our Fixed Telecommunications Network Service (FTNS) business of 14.0% year-on-year to HK$675.8 million
• Core EBITDA (note) increased by 11.4% year-on-year to HK$258.5 million
• Net profit up 54.6% year-on-year to HK$116.4 million with basic earnings per share amounted to HK17.3 cents versus HK11.6 cents for same period last year
• Strong balance sheet with net debt to annualized EBITDA of 0.1x
• Declared an interim dividend of HK6.5 cents per ordinary share versus HK3.0 cents per ordinary share for same period last year

Link to HUB/ Profile / Stock Quotes

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1]  The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2]  Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results.  Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan.  As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009.  Why?  When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into.  This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China Carbon Graphite, Inc. (OTCBB: CGYV)

China Carbon Graphite Group, Inc. engages in the production of graphite products such as graphite electrodes, fine grain graphite and high purity graphite. The company is the largest wholesale supplier of fine grain and high purity graphite in China and one of the nation’s top overall producers of carbon and graphite products.

On May 18th, 2010, the Company announced its first-quarter 2010 results.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Net revenue increased 68% year-over-year from the first quarter 2009; Net revenue increased 50% from the fourth quarter 2009;
• Gross profit increased 22% year-over-year from the first quarter 2009; Gross profit increased 209% from the fourth quarter 2009;
• Operating income increased 51% year-over-year from the first quarter 2009; Operating income increased 120% from the fourth quarter 2009;
• Cash and cash equivalents were $4.0 million at March 31, 2010 compared to $243,000 at March 31, 2009 and $2.7 million at December 31, 2009.
• Net cash flow from operation increased 276% to $3.1 million for the first quarter in 2010 from $0.8 million in 2009.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George