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Non-Tech
IGRP-Intervest Group

An SI Board Since June 2001

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Emcee: pennyangel	Type: Unmoderated

Introduction Compact

China represents one of the most dynamic investment opportunities in the world today and is growing at a compound annual rate of 10%. The population is approximately 1.2 billion, 70% of who are under 35 years of age. Per capita GDP growth is among the fastest growing in the world. The liberalization of the economy began in 1979 and is being continued by the current leadership. Annual foreign direct investment in China is over US $38 billion. China is the leading emerging market in the world and ranks eighth in terms of GDP.

The Chinese Government is extremely restrictive in allowing companies to trade stock on the open market. What few Chinese IPOs' have been allowed by the Government, have been highly successful. Yet these represent but a small fraction of the companies which otherwise would seek investment capital.

Intervest Group, Ltd., is a US over the counter traded company, trading symbol (IGRP), duly organized under the laws of the State of Nevada. The Company is a direct investment company, which engages in Equity Joint Ventures with select Asian companies for the purpose of increasing profitability. The Company identifies promising companies with proven market performance and infuses capital assets in exchange for ownership and profit share. The Company negotiates and formulates joint ventures, prepares the necessary legal documents in accordance with the law, of the country, and performs due diligence to meet investor requirements. Financial audits will be conducted and reports filed to meet the Generally Accepted Accounting Principals including the initial three year audit as well quarterly and annual financial reports.

The Company draws upon investment and legal advisors, accountants and business professionals, managers and consultants throughout China and Hong Kong as well as in the United States. With over 10 years experience in China and Hong Kong, the Company is able to provide direct investment in the Chinese marketplace. The Company's investment strategy focuses on:

Diverse Industry Approach
The Company's strategy is to acquire leading Chinese companies within a diverse industrial or consumer sector. This approach has demonstrated success by reducing market fluctuations and the inherent risks of single industry investment. This approach further enables the Company to target growth markets with greatest near-term profit and long term growth potential.
Capital Assets & Business Management
Rather than simply provide capital, the Company provides with capital assets and/or technology, together with the business management expertise needed to meet their objectives. The Company's strategic approach emphasizes expanding market reach and accelerating growth to develop a competitive advantage.

Corporate Strategy
The Company will acquire, as part of the Joint Venture Agreement, financial projections and a minimum pre-negotiated profit of the Joint Venture are contained in the Business Plans and are therefore part of the legally binding documents according to Chinese law. Failure to perform in accordance with the Joint Venture Agreement is grounds for breach of contract and compensation is due in accordance with Chinese law. The Equity Joint Ventures formed by the Company provide the best way to invest in Chinese companies because they have the protection and force of Chinese Law.

By the end of 1999, China had approved 341,812 foreignfunded projects with US $613.76 billion worth of contracted foreign capital and US $307.85 billion worth officially used foreign capital. Foreign direct investment accounted for more than 95 per cent of the foreign funds the country absorbed.

Successful American Chinese-Foreign Joint Ventures Include:
GENERAL MOTORS, AMERICAN INTERNATIONAL GROUP, FORD MOTOR, NEW YORK LIFE INSURANCE, AT&T, COCA COLA, GENERAL ELECTRIC, THE BOEING COMPANY, TIMEWARNER, AMWAY, STATE FARM

The existence and success of these Joint Ventures substantially reduce any risk, which the Company might face as a result of either nonperformance by the Chinese partner or interference by the Chinese Government. Major companies form Joint Ventures in China with the full support and approval of the Chinese Government, even to the extent that the Government protects the foreign investor.

The Future
The Company has identified numerous Chinese Equity Joint Venture candidates. These companies will typically represent diverse market segments within the telecommunications marketplace. The Company will initially analyze each opportunity and upon a complete and exhaustive market analysis, will then identify a potential JointVenture partner.

The Company has made no commitments and will review all options prior to commitment. All agreements are separate. Company performance and investment capital requirements will determine each Joint Venture Agreement. The advantage of this approach is that the Company retains maximum flexibility in implementing investment strategies that minimize risk and maximize gain.
The initial investigation into a Joint Venture will require an internationally recognized accounting firm, to perform an audit on the existing company and its subsidiaries. The purpose of the audit is to express an independent opinion on the existing company value as of a specified date.

Partner Selection
Intervest Group, Ltd. selects companies which have developed a leading position in their product areas and whose management understands the necessary steps to be competitive in the marketplace. Keeping abreast of the rapidly changing landscape of the Chinese government and economy, and tracking both the successful and unsuccessful market players, is essential to making and maintaining sound investments in China. Since 1990, The Company's, investment team has visited over 50 factories throughout China and Hong Kong and continues to perform market analysis and due diligence in every region.
In short, the Company's strategy is to select the best existing Chinese companies within an industry; to supply them with a combination of capital assets, and business management; and to organize the individual joint ventures into a coordinated group that can maximize investor profit with reduced risks.

The Equity Joint Venture
An Equity Joint Venture Agreement and the supporting documents must be prepared in accordance with Chinese law and approved by the Chinese Government. This affords the Equity Joint Venture protection and rights under Chinese law. Distribution and remittance of net profit received by foreign parties is stipulated by law:
A joint venture shall account for its profit every month. The profit distributed by a joint venture shall be the excess of its net profit over income tax payable and the required provisions of the reserve fund, staff and workers' bonus and welfare fund and enterprise expansion fund. It shall be distributed to the participants of the joint venture in proportion to their shares of contributed capital if the board of directors decides to make the distribution.

A joint venture shall compile a profit distribution program at the end of a year, based on the profits or losses realized in the year and the retained profit or deficit carried over from the previous years and submit the program to the Board of Directors for discussion and decision. The distribution shall be recorded, in the books of accounts and recognized in the annual final accounts after the decision is made.
The net profit which a foreign party receives as his share after performing his obligations under the pertinent laws and agreements and contracts, the funds he receives at the time when the equity joint venture terminates or winds up its operations and his other funds may be remitted abroad in accordance with the foreign exchange regulations and in the currency specified in the contracts concerning the ventures.

The Articles of Association, as agreed to by both parties as part of the Government approved Joint Venture Agreement, detail the legal aspects of the Agreement and further stipulate:
Should any Party fail to perform any of its obligations under this agreement for a reason not attributable to force majeure, or a representation or warranty made by such Party hereunder is untrue or materially inaccurate, the defaulting Party shall be deemed to have breached this agreement and shall bear responsibility for the default and pay compensation to the non-defaulting Party for any foreseeable and direct loss suffered.

Joint Venture Check List
The prospective joint venture companies are required to prepare an in depth business plan consisting of:
· Current Status of the existing Company
· Objectives
· Trademarks, Royalties, and know-how
· Sales network description
· Production facilities and strategic alliances
· Market analysis
· Marketing Strategy
· Financial Analysis
· Management Strategy
· Risk Assessment
· Operating Budget
· Audit Reports performed by the accounting firm
· Anticipated Revenue Growth

An operating budget for the Joint Venture will be developed and agreed to by both Parties. Expenses incurred by either Party that are not included in the operating budget of the Joint Venture will be the sole responsibility of the incurring Party. Upon completion by the prospective companies, the information will be evaluated and management will make the necessary decisions on following through with these ventures.

Background
Intervest Group, Ltd., operates a telecommunications pager network as a legal entity in accordance with the laws of the Peoples Republic of China (PRC). The Company maintains and operates pager stations and satellites in various provinces and cities in China.

Investment
The Company currently owns 90 percent of a Joint Venture to operate a telecommunications pager network as a legal entity in accordance with the laws of the Peoples Republic of China (PRC). In this regard, Chinese and foreign investment is being used to enhance economic cooperation and technical exchanges; to develop and improve services; to improve competitive position in the world market; to improve management and technology capabilities and to ensure satisfactory economic results and benefits to all investors. The Company has invested $9,000,000 over three installments for its interest. The first installment was $1,400,000 U.S. Dollars, ninety days from the effective date. The second installment of $3,100,000 U.S. Dollars, was made within 360 days and the third installment of $4,500,000 date was paid in stock from the Company within seven hundred and twenty days of the effective date.

Historical Performance
The financial information is based upon un-audited statements prepared by GRC, a Chinese accounting firm located in Shanghai and Hong Kong.

Nanyang (Shantou) Electric Cable (FTY) Company, Ltd., - Joint Venture

Background
Located in Shantou Special Economic Zone of the Guangdong Province, Shantou Nanyang Electric Cable Industry Co., Ltd., (Nanyang Cable) began operations in 1980. It is among the three largest companies specializing in the production of low voltage (below 6kVA) electric wire and cable. The Nanyang Cable factory covers an area of 30,000 square-meters and has an annual production capacity of US $36.7 million. The annual production in 1999 was US $24.3 million.

Management Team
Mr. Zhong Zhong Nan is the Founder and past President of Guangdong Nanyang Cable Manufacturing since 1983. His blend of management skills and extensive experience allow him to understand the research, production of wire and cable. In 1994, he presided over developing "Fire Resistant PVC Insulated Cable" NH-VV 0.6/lkv" which was granted the Gold Award as Outstanding New Product of Touch-Light-Champaign by Guangdong Province Science & Technology Committee in 1995. He also presided over developing XLPE Insulated Power Cable in 1999 which was-tested and approved by Guangdong Electric & Mechanic Industry Bureau and achieved ISO-9002 Quality System Accreditation. Mr. Zhong was elected Outstanding Entrepreneur in 1997, 1998 and 1999 of Shantou City. He is also the Director of China Wire & Cable, Industry Association, Vice General Secretary of the Electronic Institution of Guangdong and Standing Committee of the Shantou Labor Union.

Product
The Nanyang (Shantou) Electric Cable (FTY) Company, Ltd., manufactures and markets medium and low voltage wire and cable products. The cable products such as flame-retardant cable and fire-resistant cable, were tested and approved by Guangdong Public and Security and Fire Fighting Organization and recommended as reliable products which are ISO-9002 Certified.

Awards and Recommendations
The Chinese Government bestowed upon Nanyang Cable the following awards:
· Quality System Certificate, issued by Beijing 9000 Certificate Center for Quality System, 1998.
· Certificate of Outstanding Privately Owned Enterprise, issued by Shantou City People's Government, 1998.
· Certificate of International Standard issued by National Accreditation of Certification Bodies, 1998.
· High-Tech Enterprise Certificate issued by Guangdong Science-Tech Committee, 1997.
· Certificate of Recommended Products honored by Shantou City Economic Committee, 1998.

Investment
The Company has entered into a Joint Venture Agreement Nanyang (Shantou) Electric Cable (FTY) Company, Ltd. Nanyang (Shantou) Electric Cable has an estimated value of $3,627,569 in U.S. Dollars. The Joint Venture is organized as a Limited Liability Company. Intervest Group, Ltd., will own a 40% interest in this venture by issuing $2,418,380 of Stock over three installments for its interest. The first installment will be 50% of the Stock contribution within thirty days from the date of approval by Shantou City People's Government for registration of the Joint Venture. The second Stock contribution of 25%, shall be made within sixty days and the third Stock contribution will be made within ninety days from the date of approval.

Use of Capital
The investment capital will be used to purchase equipment, technology and management expertise for the manufacturing of medium voltage wire and cable.
Guangdong Wanshitong Communiation Company Ltd. - Association

Background
Guandong Wanshitong Communication Company, LTD is located at Yangweishan Industry Zone, Puning City, Guangdong P.R. China. A privately held company in Hong Kong duly organized under the laws of and registered in the People's Republic of China.

Management Team
Mr. Chen Wan Shi has been the General Manager of Wanshitong Communication Company, Ltd., since 1995 and is a member of the Political Negotiation Committee of Puning City and Vice President of the Science-Technology Association. His work experience includes being Manager of an Import & Export Corporation of Puning City and Business Manager of a Foreign Economy Service Company.

Product
The Guangdong Wanshitong Communication Company, Ltd., manufactures, designs and markets telecommunication products to include telephones.

Investment
The Company has entered into a joint venture with Guangdong Wanshitong Communication Company, Ltd. Guangdong Wanshitong Communication Company, Ltd., has an estimated value of $4,500,000 in U.S. Dollars. The joint venture will be organized as a Limited Liability Company wherein the Company will own a 40% interest. The Company will invest $3,000,000 over three installments for its interest. The first installment shall be 50% of the contribution within ninety days from the date of the establishment of the Association. The second installment of 25% shall be made within one hundred and eighty days and the third installment will be made within two hundred and seventy days from the date of establishment.

Use of Capital
Use of capital is to manufacture L.E.D. readouts for their telephones. The Company is currently purchasing the LED's at a cost of $8.00 U.S. Dollars and they can be manufactured for a cost of $1.87 U.S. Dollars. The equipment necessary and additional floor space needed will cost approximately $2.3 Million U.S. Dollars. Training of new employees and wages will cost approximately $300,000 U.S. Dollars with the remaining balance utilized as working capital for the joint venture.

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