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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China BCT Pharmacy Group, Inc., (OTC BB: CNBI)

China BCT is engaged in pharmaceutical distribution, pharmacy retailing, and the manufacture of pharmaceuticals products through its subsidiaries Guangxi Liuzhou Baicaotang Medicine Limited, Guangxi Liuzhou Baicaotang Medicine Retail Limited, and Hefeng Pharmaceutical Co. Limited in Guangxi province, China. It operates a large regional retail network in Guangxi province, consisting of 219 directly owned retail stores in Guangxi province and currently over 8,000 products are distributed through the Company’s wholesale distribution network.

On March 30th 2012 the company announced results for the fourth quarter and full year ended December 31, 2011

Fourth Quarter 2011 Highlights

• Revenue decreased 0.7% year-over-year to $66.3 million
• Gross profit rose 12.2% year-over-year to $15.8 million
• Operating income grew 0.5% year-over-year to $9.5 million
• GAAP net income declined 7.1% to $6.9 million, or $0.18 per diluted share, from $7.4 million, or $0.19 per diluted share, in the year ago quarter
• Excluding non-cash items related to change in the fair value of warrant liabilities and share-based compensation expense, non-GAAP adjusted net income was $7.8 million, or $0.21 per diluted share
• Cash and cash equivalents as of December 31, 2011 totaled $31.5 million, compared to $20.2 million at the end of 2010

Full Year Highlights;

• Revenue was $257.5 million for the twelve months ended December 31, 2011, an increase of 28.2% from $200.8 million in the prior year.
• Gross profit was $61.8 million, or 24.0% of revenue, up 26.6% from $48.8 million, or 24.3% of revenue, for the year ended December 31, 2010.
• Operating income was $42.2 million, or 16.4% of revenue, up 19.2% from $35.4 million, or 17.6% of revenue in 2010.
• Net income increased 22.1% to $31.2 million, or $0.82 per diluted share, compared to $25.7 million, or $0.67 per diluted share prior year.

Read Press Release

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

Deer Consumer Products, Inc. (Nasdaq: DEER)

Deer Consumer Products, Inc. is a NASDAQ Global Select Market listed U.S. company with its primary operations in China. Deer has a 17-year operating business as well as a strong balance sheet. Operated by Deer’s founders and supported by more than 100 patents, trademarks, copyrights and approximately 1,000 staff, Deer is a leading provider of “DEER” branded consumer products to Chinese consumers and a leading vertically integrated manufacturer of small home and kitchen appliances for global customers. DEER’s product lines include a series of small household and kitchen appliances as well as personal care products designed to make modern lifestyles easier and healthier.

On March 29th 2012 the company Announces Record Full Year 2011 Results

Highlights:

• 2011 revenue of $226.7million, an increase of28.9% from 2010
• 2011 net income of $39.8million, an increase of31% from 2010
• Fully diluted earnings per share of $1.18, an EPS increase of31% from 2010
• Anticipates favorable Chinese domestic consumer market environment for continued growth in 2012

Read Press Release

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

Nutrastar International Inc. (OTCBB: NUIN)

Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company is headquartered in Harbin, capital of Heilongjiang Province, with 332 employees, including 21 in R&D, and 149 in sales and marketing.

On March 28th 2012 the company Announces Record Full Year 2011 Results

First Quarter 2012 Highlights

• Revenues increased 41.1% to $34.21 million compared to $24.24 million in the year ended December 31, 2010.
• Gross profit increased 32.4% to $25.96 million, up from $19.6 million in the comparable 2010 year, representing a gross margin of 75.9%.
• Net income rose 26.3% to $17.00 million, up from $13.44 million in 2010, representing a net margin of 49.7%.
• Basic and diluted EPS were $1.12 and $1.04, respectively with 14.78 million basic shares and 16.34 million diluted shares outstanding.

Read Press Release

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Botanic Pharmaceutical Inc. (NYSE AMEX: CBP)

China Botanic Pharmaceutical Inc. is engaged in the research, development, manufacturing, and distribution of botanical products, bio-pharmaceutical products, and traditional Chinese medicines (“TCM”), in the People’s Republic of China. All of the Company’s products are produced at its three GMP-certified production facilities in Ah City, Dongfanghong and Qingyang.

On March 19th 2012 the company announced financial results for the three months ended January 31, 2012.

First Quarter 2012 Highlights

• Net sales increased 24.4% year over year to $28.1 million
• Gross profit increased 25.4% to $17.3 million from $13.8 million in the first quarter of fiscal 2011
• Gross margin increased to 61.6% from 61.1% in the year ago period
• Net income rose 12.4% to $12.3 million, or $0.33 per diluted share, from $10.9 million, or $0.29 per diluted share, in the first quarter of fiscal 2011

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

Winland Ocean Shipping Corp. (OTCBB: WLOL)

Winland Ocean Shipping Corp. is a global shipping company with a fleet of Company-owned vessels, mainly in the handysize and Supramax category, engaged in ocean transportation of dry bulk cargoes and chartering brokerage services worldwide.

On December 6th 2011, the company announced a USD 2.2 million shipping contract to transport 53,300 MT yellow peas from Canada to India.

Highlights:

• The Contract is worth USD 2.2 million
• Fon Tai will leave Rizhao, China, load the cargo in Vancouver, Canada, call port at Singapore for bunkering and then discharge the shipment in the ports of Vizag and Kolkata in India.

Read Full Press Release

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Modern Agricultural Information Inc.  (OTCBB: CMCI)

China Modern Agricultural Information, Inc. is a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information.

On December 1st 2011, announced financial results for the three months ended September 30, 2011.

Highlights:

• The company has signed the merger agreement to transfer 100% equity interest of Shangzhi Yulong.
• The acquisition is expected to increase fresh milk production capacity by 30,000 tons per year to 110,000 tons, an increase of 38%, and generate $13 million in revenue and $5 million in net income for the 2012 fiscal year.

Read Full Press Release

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Health Resource, Inc. (OTCBB: CHRI)

China Health Resource, Inc. engages in the development, manufacturing, processing, marketing and sale of Dahurian Angelica Root (DAR) and is only the provider of GAP quality product in the People’s Republic of China under the registered Trademark Chuan Baizhi™. DAR, which is also known as “Bai Zhi” in Mandarin Chinese, is an herb that is employed as an ingredient in medicine, cosmetics and food, as well as used in TCM for the treatment of pain, swelling and pustule.

On November 22nd 2011, announced financial results for the three months ended September 30, 2011.

Third Quarter 2011 Highlights:

• China Health Resource, Inc. (OTCBB: CHRI), a producer and supplier of Traditional Chinese Medicine (TCM) products, announced robust record breaking quarterly earnings for September 2011. CHRI reported over $9.3 million in revenues and $1.8 million in net income, a 219% increase in revenues and a 141% increase in profits from the third quarter of 2010.
• CHRI has maintained its profitability with a gross profit margin for the first three quarters of 2011 of 30% and net profit margin of 20%, compared to 33% of gross margin and 17% of net profit margin for the first three quarters of 2010.

Read Full Press Release

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Mass Media (NYSE:CMM)

As a leading television advertising company in China , the Company provides a full range of advertising services, including advertising agency services, creative production services, public service announcement sponsorship services, and other value added services. The Company currently offers approximately 41 minutes of advertising time slots per day on CCTV Channels 1, 2, and 4. CCTV is the largest television network in China . The Company has produced over 400 advertisements and has won a number of prestigious awards in China and across the world, including the “Gold World Medal” at The New York Festivals® International Television & Film Awards.

On November 21st 2011, announced financial results for the three months ended September 30, 2011.

Third Quarter 2011 Highlights:

• Total net revenues were  US$9.0 million , an increase of 5.1% from the third quarter of 2010 and an increase of 11.3% from the second quarter of 2011.
• Operating income was US$2.6 million , an increase of 35.1% from the third quarter of 2010 and an increase of 17.7% from the second quarter of 2011.
• Net income was US$2.2 million , an increase of 117.8% from the third quarter of 2010 and an increase of 24.8% from the second quarter of 2011.
• Net cash outflows from operating activities were US$24.8 million

Read Full Press Release

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Medical Technologies, Inc. (NASDAQ:CMED)

China Medical Technologies, Inc. is a leading China -based advanced IVD company using molecular diagnostic technologies including Fluorescent in situ Hybridization (FISH) and Surface Plasmon Resonance (SPR) and an immunodiagnostic technology, Enhanced Chemiluminescence Immunoassay (ECLIA), to develop, manufacture and distribute diagnostic products used for the detection of various cancers, diseases and disorders as well as companion diagnostic tests for targeted cancer drugs. .

On November 18th 2011, announced financial results for the three months ended September 30, 2011.

Highlights

• The Company reported net revenues of US$37.4 million  for 2Q FY2011, representing an 18.1% increase from the corresponding period of FY2010.g
• ross margin was 64.9% for 2Q FY2011 which increased year-over-year from 55.2% for the corresponding period of FY2010.
• Net income was US$5.2 million  for 2Q FY2011, compared to net loss of US$ 0.46 million for the corresponding period of FY2010.
• Non-GAAP net income was US$14.0 million )for 2Q FY2011, representing a 36.9% increase from the corresponding period of FY2010.

Read Full Press Release

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China BCT Pharmacy Group, Inc., (OTC BB: CNBI)

China BCT is engaged in pharmaceutical distribution, pharmacy retailing, and the manufacture of pharmaceuticals products through its subsidiaries Guangxi Liuzhou Baicaotang Medicine Limited, Guangxi Liuzhou Baicaotang Medicine Retail Limited, and Hefeng Pharmaceutical Co. Limited in Guangxi province, China. It operates a large regional retail network in Guangxi province, consisting of 219 directly owned retail stores in Guangxi province and currently over 8,000 products are distributed through the Company’s wholesale distribution network.

On November 15th 2011, announced financial results for the three months ended September 30, 2011.

Third Quarter 2011 Highlights

• Revenue increased 28.5% year-over-year to $67.5 million
• Gross profit rose 23.2% year-over-year to $16.3 million
• Operating income grew 31.4% year-over-year to $12.5 million
• GAAP net income climbed 36.9% to $9.5 million, or $0.22 per diluted share, from $6.9 million, or $0.18 per diluted share, in the year ago quarter
• Excluding non-cash items related to change in the fair value of warrant liabilities and share-based compensation expense, non-GAAP adjusted net income was $9.1 million, or $0.21 per diluted share
• Cash and cash equivalents as of September 30, 2011 totaled $34.3 million, compared to $20.2 million at the end of 2010

Nine Months 2011 Results

• Revenue was $191.2 million for the first nine months of 2011, increasing 42.6% from $134.0 million in the same period prior year.
• Gross profit was $46.0 million, or 24.0% of revenue, up 32.6% from $34.7 million, or 25.9% of revenue, for the nine months ended September 30, 2010.
• Operating income was $32.7 million, or 17.1% of revenue, up 26.1% from $25.9 million, or 19.3% of revenue, for the nine months ended September 30, 2010.
• Net income increased 33.0% to $24.3 million, or $0.57 per diluted share, compared to $18.3 million, or $0.48 per diluted share

Read Full Press Release

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