Perry,
Info on Chinese market from Tokenhouse Capital and Research Inc as of January 17, 1997...
"KCA started looking at the Chinese market some two years ago when they came into contact with the Chinese Ministry of Forestry but this was replaced by a more profit oriented joint venture spearheaded by the Chinese Electronics Education Corporation (CEEC), a company owned by the Chinese Ministry of Electronics. Through a jointly owned subsidiary (75% KCA - 25% CEEC) to be called Beijing KC Data Equipment Company Limited ("BKC"), an internet network called the Chinese Education Services Network ('CESN') will be deployed. Just as the internet itself first migrated from its original defence purposes to senior academic circles so CESN will be initially supplied to key opinion making circles in China's major universities and research centres.
Providing...that the joint venture receives official sanctions later this year, the funding for this initial project has been allocated and the selected provinces would only have to agree to its installation. Already five of these provinces have signalled initial and conditional agreements. There is an attractive second dimension. Once CESN has been initially deployed, BKC would be able to approach the second, much larger tier in each of China's 30 provinces. Although funding in this case would have to be made on a conventional per site basis by the provinces, an existing network would already be running. The initiation of the network will require technologies at different levels: computer networking technologies, internetworking products and services such as web site servers and remote access - in all of which KCA has extensive expertise and experience. There appears to be a refreshing candour and entrepreneurial flavour with this initiative that seems, so far, to have avoided many of the bureaucratic or infrastructural cul-de-sacs that have plagued projects in this country in the past."
Tokenhouse's audit estimates the E/S to be $0.14 for 1997; $0.22 for 1998; $0.34 for 1999.
They listed the estimates (revenues, CGS, Gross Profit, etc) if KCA gets the Chinese operation seperately...they did not list the E/S but they did give the information to figure it out...my estimates with their figures are $0.18 for 97; $0.31 for 98; $0.76 for 99. Let it be clear that these E/S are not added to their original E/S but are the total estimates for the year.
The address for Token if you are interested is:
Tokenhouse Capital and Research Inc.
137, rue St. Pierre
Suite P-105
Montreal, Quebec
H2Y 3T5
For another source of info call Yorkton Securities
Hope this helps you out...
Rob |
