** CHCL ** moving up (1.125 x 1.14); excellent news of IPO application on Singapore exchange. Look at this incredible DD from RB:
By: FLINT
Reply To: None Friday, 7 Apr 2000 at 9:33 AM EDT
NEWS JUST OUT!
Message 13374549
CHCL new investors, DD inside:
Courtesy easydoc.
China Continental (CHCL)
Six (6) Press Releases this week already. Synopsis:
- Thursday April 6th they announced they paid $24 million cash for the largest pharmaceutical company in China.
- They obtained the sole license in China for Kelvar, used to make bullet proof vests--and immediately announced
orders for 100,000 vests from the People's Liberation Army of China.
- They own the largest bio-tech farm in China. They are negotiating with Hitsgalore to join forces in a China based
hitsgalore enterprise.
- They are negotiating w/ Pepsi subsidiary for mineral rights deal.
- They are negotiating in Pakistan for 1st foreign cable tv license.
- They announced a ONE Billion dollar joint venture in Pakistan.
The company has had 40 Prs since 1/31/2000. Read the PRs, overview on the bottom of this post.
These PRs relate to NEW BUSINESS endeavors, separate and in addition to the prior businesses that have produced
over $30 MILLION in revs each of last 5 years .
Revs from new businesses potentially exceeding $100 MILLION annually. Company PRs and SEC reports indicate it
has approximately $150 Million in cash and line of credit to use to implement its expansion into multiple new business
areas in Asia.
A Press Release on 3/22/2000 announced company?s intention to participate in a venture for creation of a B2B Portal
to facilitate convenient and secure business transactions between numerous Asian countries. This is only a $1 stock
right now, discounted 60% from its $2.40 high.
__________________
Further DD:
Websites that featured China Continental (CHCL)
fallingshort.com (Summary of China Continental?s past, present and future
business interests, written by Lou Ambio)
virtualchina.com (Chcl makes ?VirtualChina 30 List - article on Chcl by Doug McGill)
blazinpicks.com
cyberstocks2000.com
http://www.#########.com/in2/pennystockpicks/
pennypi.com
insidetheweb.com
(Onzas? webpage)
Link to RagingBull Message Board
--- China Continental thread --- read posts 4622, 3830, 2941, 1750, 2946, 2947, 2951, 2978, 2973, 2363, 864, 854,
792, 773, 268 and 36 for starters. ragingbull.com
Links to Press Releases:
biz.yahoo.com
bigcharts.com
Link to Company?s Profile on Yahoo
biz.yahoo.com
40 PRs since 1/31/200; also included PRs regarding SEC filings and deals since Nov. 99:
Highlights only. Click on link above to read the Press Releases.
CHCL China Contl Inc
1. THURSDAY, APRIL 06, 2000
CHINA CONTINENTAL FINALIZES TERMS ON ACQUISITION OF PHARMACEUTICAL COMPANY SIGNING
CEREMONY ON APRIL 15 -
PRNewswire
2. THURSDAY, APRIL 06, 2000
Hitsgalore.com and China Continental Explore Joint Venture in Asia -Business Wire
3. WEDNESDAY, APRIL 05, 2000
CHINA CONTINENTAL IN FINAL STAGE OF DISCUSSIONS TO ACQUIRE STAKE IN PHARMACEUTICAL
COMPANY IN CHINA - PRNewswire
4. WEDNESDAY, APRIL 05, 2000
CHINA CONTINENTAL EXPLORES JOINT VENTURE IN ASIA WITH HITSGALORE.COM, INC. - PRNewswire
WEDNESDAY, APRIL 05, 2000
CHINA CONTINENTAL TO SIGN COUNTER TRADE AGREEMENT IN INDONESIA - PRNewswire
5. TUESDAY, APRIL 04, 2000
CHINA CONTINENTAL OBTAINS SOLE MANUFACTURING LICENSE TO PRODUCE KEVLAR IN CHINA
RECEIVES ORDER FROM THE PEOPLE'S LIBERATION ARMY OF CHINA TO Supply 50,000 BulletproofJackets -
PRNewswire
6. TUESDAY, APRIL 04, 2000
CHINA CONTINENTAL OBTAINS SOLE MANUFACTURING LICENSE TO PRODUCE KEVLAR IN CHINA
RECEIVES ORDER FROM THE PEOPLE'S LIBERATION ARMY OF CHINA TO Supply 50,000 Bulletproof Jackets -
PRNewswire
7. WEDNESDAY, MARCH 22, 2000
ACL SIGNING A COUNTER TRADE AGREEMENT WITH PAKISTAN - PRNewswire
TUESDAY, MARCH 07, 2000
8. CHINA CONTINENTAL IN DISCUSSIONS FOR JOINT VENTURE IN B2B PORTAL FOR ASIA - PRNewswire
MONDAY, MARCH 06, 2000
9. CHINA CONTINENTAL TO ESTABLISH DAIRY TRAINING CENTER IN PAKISTAN - PRNewswire
10. CHINA CONTINENTAL ACQUIRES 10% STAKE IN PAKISTAN TRUST INVESTMENT BANK; INVESTMENT IN
TRUST INVESTMENT BANK - PRNewswire
WEDNESDAY, MARCH 01, 2000
11. CHINA CONTINENTAL STARTS FIRST PHASE OF DAIRY PROJECT IN PAKISTAN - PRNewswire
MONDAY, FEBRUARY 28, 2000
12. CHINA CONTINENTAL TO LIST SUBSIDIARY ON SINGAPORE STOCK EXCHANGE ASIA CONTINENTAL TO
BE LISTED - PRNewswire
13. CHINA CONTINENTAL ANNOUNCES RESTRUCTURING - PRNewswire
FRIDAY, FEBRUARY 25, 2000
14. VENTURE CAPITAL FUND TO ACQUIRE A SIGNIFICANT STAKE IN CHINA CONTINENTAL - PRNewswire
THURSDAY, FEBRUARY 24, 2000
15. CHINA CONTINENTAL CLARIFIES MINERAL WATER RELATIONSHIP - PR Newswire
WEDNESDAY, FEBRUARY 23, 2000
16. CHINA CONTINENTAL IN NEGOTIATIONS TO ACQUIRE 10% STAKE IN HITSGALORE.COM, INC. - PRNewswire
TUESDAY, FEBRUARY 22, 2000
17. CHINA CONTINENTAL RECRUITING NEW CEO - PR Newswire
FRIDAY, FEBRUARY 18, 2000
18. CHINA CONTINENTAL BOARD APPROVES BUY BACK OF STOCK PRNewswire.
FRIDAY, FEBRUARY 18, 2000
19. China Continental to Receive First [$10 MILLION] Tranche of US$100 Million MTN Funding PR Newswire,
THURSDAY, FEBRUARY 17, 2000
20. CHINA CONTINENTAL SIGNS AGREEMENT TO ACQUIRE 10% STAKE IN TRUST INVESTMENT BANK;
STRATEGIC MOVE TO SUPPORT PROJECTS IN PAKISTAN - PRNewswire
TUESDAY, FEBRUARY 15, 2000
21. China Continental to Set Up Agricultural Genetic R&D Center - PR Newswire - 10
MONDAY, FEBRUARY 14, 2000
22. INNER MONGOLIA GOVERNMENT INTENDS TO LAUNCH CELEBRATION CEREMONY FOR DONG WU
PROJECTS - PRNewswire
23. CHINA CONTINENTAL IN FURTHER DISCUSSION WITH PEPSICO ON MINERAL WATER PRODUCTION -
PRNewswire
24. CHINA CONTINENTAL IN NEGOTIATIONS TO ACQUIRE STAKE IN PHARMACEUTICAL COMPANY IN CHINA
COMPANY HAS ONE OF THE LARGEST PLANTS IN CHINA - PRNewswire
FRIDAY, FEBRUARY 11, 2000
25. CHINA CONTINENTAL'S SUBSIDIARY, ASIA CONTINENTAL LIMITED, TO ADD NEW PRODUCTION LINE TO
BOOST OUTPUT--- ACL'S LISTING PLAN MAKES STEADY Progress - PRNewswire
26. CHINA CONTINENTAL PLANS EXPORT OF ANIMAL FEED TO JAPAN -
THURSDAY, FEBRUARY 10, 2000
27. CHINA CONTINENTAL IN DISCUSSION WITH PEPSICO ON MINERAL WATER PRODUCTION - PRNewswire
28. CHINA CONTINENTAL IN FINAL STAGE OF DISCUSSION TO RECEIVE FIRST CABLE TV LICENSE IN
PAKISTAN - PRNewswire
WEDNESDAY, FEBRUARY 09, 2000
29. CHINA CONTINENTAL AND MELBOURNE UNIVERSITY NEGOTIATE ON JOINT R&D EFFORT R&D EFFORT
TO FOCUS ON GENETIC RESEARCH - PRNewswire
30. CHINA CONTINENTAL IN FINAL STAGE OF DISCUSSION TO ACQUIRE STAKE IN US-BASED B2B INTERNET
COMPANY - PRNewswire
TUESDAY, FEBRUARY 08, 2000
31. CHINA CONTINENTAL NEGOTIATING FUNDING OF CONVERTIBLE EQUITY TERM NOTE - PRNewswire
32. CHINA CONTINENTAL IN DISCUSSIONS TO ACQUIRE STAKE IN US BASED B2B INTERNET COMPANY -
PRNewswire
MONDAY, FEBRUARY 07, 2000
33. CHINA CONTINENTAL SIGNS AGREEMENT ON LARGEST SUPPLY OF EMBRYOS TO ASIA; CASTELLA TO
SUPPLY 12,000 EMBRYOS TO DONG WU BIO TECH FARM - PRNewswire
34. CHINA CONTINENTAL NEGOTIATING TO ACQUIRE DAIRY COMPANIES IN PAKISTAN - PRNewswire
FRIDAY, FEBRUARY 04, 2000
35. CHINA CONTINENTAL FINALIZES US$100 MILLION MEDIUM TERM NOTE AGREEMENT - PRNewswire
36. CHINA CONTINENTAL IN DISCUSSION WITH TECHNICAL ADVISORS FOR PAKISTAN DAIRY PROJECT
ASPECTS OF THE OPERATION DETAILED - PRNewswire
THURSDAY, FEBRUARY 03, 2000
37. CHINA CONTINENTAL NEGOTIATING TO ACQUIRE STAKE IN INTERNET COMPANY - PRNewswire
WEDNESDAY, FEBRUARY 02, 2000
38. PRIVATE PLACEMENT OF CHINA CONTINENTAL SHARES; HEDGE FUND TAKES UP STAKE IN CHINA
CONTINENTAL - PRNewswire
39. CHINA CONTINENTAL ANTICIPATES US$300 MILLION IN ANNUAL REVENUES FROM DAIRY PROJECT IN
PAKISTAN COMMISSIONED FEASIBILITY STUDY PROVIDES Positive Results - PRNewswire
MONDAY, JANUARY 31, 2000
40. CHINA CONTINENTAL IN DISCUSSIONS ON DAIRY PROJECTS IN PAKISTAN TOTALING US$ 1 BILLION
EXPANSION OF INTERNATIONAL OPERATIONS THROUGH Modernization of the Dairy Industry and Other
Infrastructure Projects in Pakistan - PRNewswire
TUESDAY, DECEMBER 14, 1999
41. CHINA CONTINENTAL AIMS TO BE A LEADER IN HIGH TECHNOLOGY AGRICULTURAL GENETICS CHINA
CONTINENTAL UNVEILS A 5 YEAR GROWTH PLAN FOR THE FUTURE Developments of Dong Wu - PRNewswire
WEDNESDAY, DECEMBER 08, 1999
42. CHINA CONTINENTAL SIGNS CONTRACT TO BUY CHINA'S LARGEST AGRICULTURAL GENETIC FARM THE
COMPANY IS POSITIONED TO BE A DOMINANT PLAYER IN THE High Technology Agricultural Genetic
Industry - PRNewswire
MONDAY, NOVEMBER 29, 1999
43. CHINA CONTINENTAL TO ACQUIRE CHINA'S LARGEST AGRICULTURAL GENETIC FARM AND SELL
CURRENT AGRICULTURAL BUSINESS SALE OF CURRENT AGRICULTURAL Business Will Generate an
Extraordinary Gain of $8 Million to Be Reflected in the Fourth Quarter. - PRNewswire
FRIDAY, OCTOBER 01, 1999
44. Management`s Discussions: 10-K, CHINA CONTINENTAL INC - Edgar Online
Public Relations person for Company in US
Harvey A. Goralnick, Investor Relations, of FOCUS Partners,
212-752-9445, chcl@focuspartners.com, for China Continental
Company?s Investor Relations ?Fact Sheet? (thanks Rupert22 from RB board for posting data and Harvey Goralnick,
China Continental's IR person, for providing the information)
Market Cap $ 69.0M
Shares Outstanding 69.0 M
P/E Ratio 1.73x
Current Ratio 3.13X
õ Significant growth opportunities in Asia
õ Creating new markets supported by cash flow from ongoing business
õ Attractive valuation: P/E = 1.73x
õ Profitable ? 5 years of consistent profits
õ High margins
õ 5-year tax holiday for Bio Technology Farm
õ Experienced international management
õ Strong balance sheet ? Current Assets less Total Liabilities = $0.64/share
COMPANY OVERVIEW
Historically, China Continental, Inc. (OTC BB: CHCL) designs, installs and sells production lines on a turnkey basis.
China Continental has since diversified its business activities by capitalizing on the tremendous opportunities in the
agricultural genetics industry in China. It has expanded into the manufacturing of chemical fiber-related products and
steel drums in the People?s Republic of China (?PRC?) and in the distribution of these products in both the PRC and
international markets. The current focus of its business is in the
application of technology to various industries. China Continental is leveraging these strengths to diversify its business
activities by capitalizing on the tremendous opportunities in the commercial utilization of natural resources. (And is now
negotiating for a B2B Internet company in the US, a second 20% interest in a China based bilingual Internet site, and
just announced possibility of receiving first Cable TV license in Pakistan (135 people.)
Operations Business
õ Danbury Inc. Producing & installing machinery on a turnkey basis
õ Dong Wu Bio Tech Farm Genetic production & supply of superior livestock & genetic
technology
õ Weifang Great Dragon Production & supply of high quality chemical fiber related
products
õ Jinan Xin Da Shun Production & supply of high quality steel drums
ATTRACTIVE VALUATION - P/E = 1.73X
As of January 6, 2000, CHCL stock was trading at 1.73x earnings and 0.33x sales. CHCL
stock is also trading at just 0.16x book value. Furthermore, China Continental Inc.?s gross
profit margin for the first, second and third quarter of 1999 were over 60%.
TURNKEY PROJECTS ? Danbury Inc.
õ Business Activity - Producing and installing machinery on a turnkey project basis
õ Profitable ? 5 years of consistent profits
Year Revenue Net Income
1994 $26.6m $10.6m
1995 $32.6m $11.7m
1996 $38.4m $15.0m
1997 $34.7m $16.4m
1998 $35.2m $15.0m
õ Completed over 70 turnkey projects throughout China, varying in size from US
$300,000 to US $5 million
õ Backlogs of US $35 million as of December 15, 1999
õ Leading provider of total system integration solutions to manufacturers in China
AGRICULTURE GROWTH OPPORTUNITIES IN CHINA
Dong Wu Bio Tech Farm
Significant Market
õ At 1.3 billion, China has the largest population in the world and is growing at 15 million
annually
õ An annual increase of 12.6% in meat production is needed to meet the growing
population and increasing demand
õ By year 2002, China is expected to experience a shortage of 290,000 tons of beef
and 200,000 tons of mutton
õ Total demand for beef and mutton is estimated to be worth US $40 billion
China Continental?s Role
õ Dong Wu Bio Tech Farm:
õ Owns approximately 406 sq. km. of farmland
õ Has the latest high technology agricultural genetics from New Zealand and farming
facilities from Japan
õ Inviting globally acclaimed ET/AI consultants in TeMania International from New Zealand
õ Will lead the China market:
õ To improve the productivity and quality of the agricultural and livestock industry
õ By making available the latest techniques and know-how in agricultural genetic
technology and farming
õ Targets supplying quality meat valued at US $400 million in the PRC by year 2002
GROWTH OPPORTUNITIES IN ASIA
Weifang Great Dragon Company Limited
õ Import of Seafood to China has increased by 3.4 times, over the last 4 years:
Year Quantity Value
1995 0.62 million metric tons US $0.60 billion
1998 2.10 million metric tons US $2.16 billion
õ The tremendous growth in the import of seafood is attributed to the serious depletion of
resources in the coastal fishing areas of China due to:
õ Excessive fishing
õ Limited deep-sea fishing equipment
õ Growing population
õ In year 2002, the import of seafood to China is expected to increase to 5 million metric
tons with a value of US $7.0 billion
China Continental?s Role
õ Weifang Great Dragon:
õ Has the latest high technology chemical fiber manufacturing plant imported from
Germany and US
õ Has 70 skilled technicians trained in Germany
õ The fully automated plant is capable of producing 16,000 metric tons of deep-sea
trawler
fishing nets fabrics per annum
õ Produced 5,700 metric tons of deep-sea trawler fishing net fabrics in 1999 and plan to
increase production to 11,300 metric tons by 2001
õ Since 1997, has established fishing net fabrics markets in Pakistan, Bangladesh and
Indonesia. Note: Pakistan, Bangladesh and Indonesia are the major fish resources in the
South Asia region
õ Will lead the Asia market:
õ By importing quality seafood to China, through counter trade arrangement, to meet the
growing demand
õ By offering clients in Pakistan, Bangladesh and Indonesia, a countertrade arrangement
to supply them with deep-sea trawler fishing net fabrics against frozen seafood for import
to China
õ Targets supplying quality fishing net fabrics, through countertrade arrangement, valued
at US $21.6 million by year 2002
GROWTH OPPORTUNITIES IN CHINA
Jinan Xin Da Shun Company Limited
õ Over the last 10 years, the oil industry in China has grown at about 15% per year
õ China currently exports about 50 million drums of oil and related petrochemical products
õ The rapidly growing industry will in turn require more packaging and containers in the form
of high quality steel drums
China Continental?s Role
õ Jinan Xin Da Shun:
õ Has the latest high technology steel drum manufacturing plant imported from
Ssangyong, Korea
õ Is currently one of the only four high technology steel drum manufacturing plants in China,
which is accepted by the insurance companies to cover for export
õ Produced 420,000 steel drums in 1998 and plan to increase production to 1 million
during year 2000
õ Since 1997, has established markets with major petrochemical companies in the
Shandong Province and the Tianjin province. Note: The Shandong Province is the 2nd
largest chemical producer in China. The Tianjin Province is the largest chemical export port
in China
õ Will lead the China market by supplying high quality steel drums in the growing
petrochemical industry
õ Targets supplying quality steel drums in China which is valued at US $34 million by year
2002
CORPORATE STRUCTURE
* China Continental owns 57.4% of Asia Continental Limited
STRONG FINANCIALS
(in 000s except EPS) Quarter Ended Quarter Ended
9/30/99 9/30/98 9/30/99 12/31/98
Total Sales $11,103 $11,625 Total Assets $251,452 $235,684
Gross Profit 6,688 6,743 Total Liabilities $24,326 $20,449
Net Income $4,970 $5,283 Minority Interest $84,810 $86,278
EPS $0.07 $0.08 Total Stockholders Equity $142,316 $128,957
Weighted Shares Outs 69,000 66,000
5-Year Tax Holiday The Company?s agricultural genetics joint venture has been granted a
tax exemption from the Government of the PRC.
Anticipated Flotation of Subsidiary As previously announced, China Continental has
appointed the United Overseas Bank Group (UOB Group) to lead, manage and
underwrite its subsidiary, Asia Continental Limited?s (?ACL?) listing on the Stock
Exchange of Singapore. ACL will be scheduled for an IPO in the second quarter of year
2000. CHCL expects to retain 34.47% of ACL following the offering.
EXPERIENCED INTERNATIONAL MANAGEMENT
Harry H. H. ## ? Chairman and Managing Director
Mr. ## is responsible for the overall strategic planning and corporate developments of
China Continental. He has over 20 years of international management and commercial
experience in China and in Asia. Mr. ## was the founder of the Megaway Group, which is
engaged in the food, shipping, and the financial and investment businesses, has a net
asset value of US $50 million. He has also been involved in various takeovers and
restructuring of Chinese enterprises over the last ten years.
Mr. ## currently sits on the board of the Cardogan Hotel Group in Malaysia and is the
Economic Advisor |
