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Strategies & Market Trends : Greater China Junior Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (277)	9/25/2003 8:23:24 PM
From: Crossy	Read Replies (1) \| Respond to of 1992

re: The effects of WTO entry on the China Pharmaceutical sector.. Now this is old news, however it's an interesting article worth reading IMHO.. cnchemicals.com WTO Brings New Structure for Pharmaceutical Industry (Last Update: 11/01/2001) After entering the WTO, the Chinese pharmaceutical industry will enter a new structurer. 1) Competition in China means the competition in the world: After WTO China will becomes the major production base of bulk pharmaceutical and preparation; the import & export will increase greatly; the gap between the Chinese product and oversea product will be shorten; and the competition will be severe and the domestic competition means the international competition. 2)Large enterprises will emerge in the next few years: After WTO, maybe 5 year later, some large enterprises, especially those that are listed in stock market, will form and their capability will increase to an extent to compete with oversea companies. 3) Medicine enterprises will engage in multiple business areas. 4) Young men who are expertizing in management will take resposibility in leadership position. 5)The function of government will focus on the economic planning, market supervision and society service. 6) Traditional pharmaceutical industry will combine with the modern technique like network for a better development. 7)The number of enterprise will decrease by about one third in the next 5 years due to the reconstructure or the incorporation. 8)The development of new pharmaceuticals that have Chinese intellegene will be faster than ever, in the sections like TCM, biochemical, bioengineering pharma, gene chip, nutritional tonics, pharmaceutical new materials, etc. 9)The price of medicine will decrease due to the mass supply but it is normal that the price of new drug is higher than the ordinary drug. 10) Western area will become the production base for the bulk pharmaceutical production due to the cheap labor, cheap production cost and diversity of natural resources.

To: Julius Wong who wrote (277)	9/26/2003 8:54:29 AM
From: Crossy	Read Replies (1) \| Respond to of 1992

re: 8095.HK - Beida Jade Bird Universal SciTech- $0.83 Homepage : jbu.com.cn just found out about this one. IMHO a very interesting company and probably the most promising way to play the semiconductor field in China.. Traded on the GEM (Growth Equity market) in HongKong They are an offshoot from the Beijing technical university. Networking, Security, Wireless, etc. all here. They even have vast internal IC-design capabilities (ASICs, FPGAs, ASSPs). But what I like most is that their marketcap is just 250m HK$. Yet the company reportedly owns a 5% stake in SMIC (Shanghai Microelectronic) the most advanced Fab in China (0.18 micron capable, moving to 0.13 micron fast). Now the stake was totally "written off" last year (no market price for SMIC stock) which ate into earnings. However that is past. Noteworthy are 2 items here: it cost more than USD $1.5BN to build SMICs current fab structure (2 fabs) - amounting to HK$ 12000m - Now 5% (Beida Jade Bird'S stake) should be worth more than $600m marketcap historic cost wise. However it should be taken into consideration that the most recent round of financing to SMICs further expansion was undertaken at TWICE BOOK VALUE (!). That alone should have lifted the value of Beida Jade BIRD's stake to more than HK$1000m. Apart from this "ASSET PLAY" potential the PSR of Beida Jade Bird Universal is also quite good - around 1.00 Now there will be a way to UNLOCK this value soon because SMIC, an upcoming contract fab service player, is reported to IPO on the NYSE in the first half of 2004. I think that BEIDA JADE BIRD (8095.) is a great asset play. You get the company for free, yet it'S a decent company.. If the above mentioned developments materialize, a 3-10bagger could be obtained here longterm, depending on the IPO price of SMIC rgrds CROSSY