YNOT China, Inc. ynotchina.com is an offshore corporation,constituted as a "Recognised Closed End Fund" and organized under the appropriate laws of the British Virgin Islands. Investment in the fund provides an opportunity for qualified individuals and institutional investors to participate in the investment opportunities developed by Harrop, Lees, Brown & Co., principal of the fund's advisor, Harrop, Lees, Brown Fund Management. Harrop, Lees, Brown & Co. successfully engineered the first reverse merger of a Mainland China Information Technology Company, Beijing Forlink Software Corporation, Ltd. with a public company traded on a United States Securities Exchange on November 3, 1999. The fund will primarily invest in Mainland Chinese companies following the successful template established in the Beijing Forlink Software Corporation merger transaction. Primary investments will be in Technology, Telecommunications and Manufacturing related sectors. The YNOT China Fund will have representation on the Boards of all portfolio companies.
Harrop, Lees, Brown & Co. is the successor company to the English-Scottish firm of Engineers and Merchant Bankers of the same name. One of Europe's oldest venture capital firms, its venture capital activities began in the mid-1700's in the north of England and Scotland as the family expanded downstream from traditional landowning. Investment syndicates led by the firm built some of the first spinning and weaving mills in Lancashire and Yorkshire, followed by canals and railways. Banking was added in the late 1700's. In the 1800's the firm diversified abroad and by the early 1900's had considerable holdings in Africa, the Levant and Balkans. A majority of these holdings were lost in the two world wars, but by the 1990's the firm was re-building its venture capital activities for its own account and on behalf of a growing number of private and institutional investors.
Michael J.A. Harrop is current chairman. He has British and Swiss nationalities, is fluent in the major European languages, and was educated at the Scuola Svizzera in Milano, Malvern College, Cambridge University and Paisley Polytechnic.
Mr. Harrop was in DuPont's new products market-development team for 11 years. The position required multinational, multidisciplinary marketing and technical skills. He operated his own start-up from 1980-90, developing, producing and selling high tech composite parts to aircraft manufacturers (Airbus, Douglas, Boeing), moved to asset management, and then used the combined experiences to re-open Harrop, Lees, Brown & Co. venture capital activities.
The following summarizes the major terms of the offering of shares of the Fund:
Shares Offered: 25,000,000
Share Price: $10.00 (US)
YNOT China, Inc. has entered into negotiations to merge with an OTCBB listed, publicly traded, closed end small-cap fund. The merged funds will apply to be traded on the NASDAQ National Market. The merger is scheduled for closing in August 2000.
CURRENT PORTFOLIO COMPANIES - page 1
Elawchina.com, Inc. (NASDAQBB - symbol BCCH)
Has entered into an exclusive world-wide marketing contract with Beijing Elawchina Network Technology Co., Ltd. to develop subscription service marketing programs to sell law firms, multi-national corporations, banks, etc., access toi the English translation pages of the elawchina.com web pages. Beijing Elawchina Network Technology Co., Ltd. has developed the only interactive English/Chinese translation of the Chinese legal database, and is the legal reference site for the United Nations. The database contains national, provincial and municipal laws, interpretations and rulings covering all of China. The Elawchina.com web pages provide immigration laws and rules, business practice requirements, law firm reference services, investment opportunities as provided by the Chinese Government, and guides to doing business and investing in the expanding Chinese markets. Upon the successful intergration of China into the WTO, access to this information will be of primary importance to all foreign companies and their legal advisors.
CURRENT PORTFOLIO COMPANIES - page 2
Forlink Software Corporation, Inc. (OTCBB - symbol: FRLK)
The Company has been certified by the Office of Beijing City New Technology Development Experiment Zone as a "New Technology Enterprise" and has been given tax holidays, tax credits, access to bank credit and other benefits by the Chinese government. The online software sales site softhouse.com.cn was developed as the Company's first E-commerce and Internet information service site. The site was opened in March of 1999 and has become one of the most influential software portals in China. The site was named one of the top ten Internet sites in China during the Chinese Government sponsored Beijing Hi-Tech Conference this year. The Company has developed and is marketing a suite of internet portal software tools including "For-Mail", "For-Business", "For-Search" and "For-Monitor" which are currently running on Chinese web sites such as tongua.com.cn and E-commerce sites owned by such well known companies as Legend Computer of China and Toshiba.
CURRENT PORTFOLIO COMPANIES - page 3
Beijing Century Milestone S&T Co., Ltd. ( OTCBB - symbol: HANX)
The Company is a high-tech enterprize, specializing in multi-media technology, video processing digitalization, networking and application systems integration. The Company developed "CenturySight 2000", a multi-media, remote, video monitoring system, employing the Company's patented video compression technology. This patented technology enables realtime video image transmission of 25 frame QCIF (176X144 ) per second over standard copper telephone lines. The Company is the largest supplier of video monitoring and CCTV equipment in China with over 400 representative sales agents and offices in China's largest cities. The Company designs and develops alarm systems and decoder system products. Currently almost 200 alarm center networks have been established in China covering over 40,000 direct users. The Company is the largest Sanyo CCTV products distributor ( 70% of total sales )in China and produces 50% of nationwide sales for both Seiko Camera Lens products and USDS Safety and Defense Equipment products in China
CURRENT PORTFOLIO COMPANIES - page 4
VIPC, Inc.,
A U.S. telecommunications corporation that has formed a Joint Venture with ChengDu Jiabin Electronic Co., Ltd., one of the largest IP Telephony service groups in China. Jiabin has established IP PoP centers in 8 Mainland China cities and is licensed to open centers in 7 additional cities. The group is currently handling 4,000,000 minutes of international IP Telephony traffic per month. The Joint Venture is developing additional IP centers in other Asian-Pacific countries including Singapore, Thailand, South Korea, Malaysia and Japan. The Joint Venture currently administers paging systems in Moscow and St. Petersburg, Russia and has applied for IP Licenses in both cities. Total international incoming and outgoing minutes are projected to exceed 5,000,000,000 during fiscal year 2003. The Joint Venture Company is currently negotiating a preliminary plan of reorganization with a U.S. OTCBB listed public company. The group is currently negotiating a joint venture agreement to provide internet security products with a subsidiary of a major European telecommunications company.
CURRENT PORTFOLIO COMPANIES - page 5
Beijing Minghe Harper Technology Development Co., Ltd.
- Steel Fabrication Group
The largest steel building fabrication and construction company in China. The Company is currently negotiating contracts in excess of 500,000,000 RMB for the construction of new buildings to facilitate the relocation of industrial plants in the Beijing area. The Company has signed a letter of intent with Environmental Construction Products, Inc. ( OTC symbol: EPCI ), manufacturer of a high-tech building panel, to exchange 30% of its equity for shares of the listed Company. The Company, in combination with ECPI, has recently signed contracts to build over 270,000 square meters of commercial buildings and has preliminary approval with a local district government to construct approximately 800 homes utilizing the Company's steel fabrication plant and the ECPI building panel. The Company will be producing and building with the ECPI wall panel on a nationwide basis in China and expanding its steel fabrication and construction operations using the ECPI panels in other Asian-Pacific countries.
CURRENT PORTFOLIO COMPANIES - page 6
Golden Panda Entertainment, Ltd.,
Engaged in the project planning, creation and production, post production, computer programming and processing, publishing and marketing of animation art projects. The Company operates an animation and technical arts training school. The production facilities, studios, and school are in Beijing, China. Golden Panda is in the process of expanding in all areas, and should have their new english web site up within weeks at goldenpanda.net. |
