AGORACOM Small-cap Investor Relations Blog

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

They are a provider of distributed power generation systems in China and a fast-growing manufacturer of wind turbines. In fact, they are the largest provider of distributed power generation systems in China and they built China’s largest wind turbine manufacturing facility so this is a real serious company.

On March 31, 2010, the Company reported its unaudited financial results for the fourth quarter, and the fiscal year endedDecember 31, 2009.

Check out the full year results below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

4Q09 Financial Highlights
— Revenues were $125.9 million for a 54.6% year-over-year increase;
— Gross margin was 21.3% vs. 17.8% in 4Q08;
— Excluding the expenses and non-cash losses related to the convertible
bond and warrants, non-GAAP Net Income attributable to common
shareholders for Q4 was $20.6 million, or non-GAAP diluted EPS $0.61;
— GAAP loss was $23.9 million, or $0.69 per diluted share;
— Cash, Cash equivalent and restricted cash were $179.8 million.

Fiscal Year 2009 Highlights
— Annual net revenue increased 17.5% year-over-year to $311.3 million;
— Gross margin was 16.4%;
— Operating income rose to $38.4 million from $28.2 million in 2008;
— Excluding the expenses and non-cash losses related to the convertible
bond and warrants, non-GAAP Net Income attributable to common
stockholders for the fiscal year 2009 was $36.1 million, or non-GAAP
EPS $1.05;
— GAAP net loss was $16.7 million, or $0.49 diluted per share.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China Wind Systems Inc – Nasdaq:CWS

China Wind Systems supplies forged rolled rings to the wind power and other industries and industrial equipment to the textile and energy industries in China. With its newly finished state-of-the-art production facility, the Company plans to increase its production and shipment of high-precision rolled rings and other essential components primarily to the wind power and other industries.

On March 31, 2010, announced its financial results for the fourth quarter and fiscal year ended December 31, 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

Fourth Quarter 2009 Highlights
— Net revenues increased 45.9% year over year to $15.9 million
— Revenue from the sale of forged products for the wind power and other
industries increased 111.4% year over year to $10.5 million, or 65.9%
of net revenues
— Revenue from the sale of forged products exclusively to the wind power
industry increased 327.1% year over year to $6.8 million, or 43.0% of
net revenue
— Gross profit increased 63.2% year over year to $4.3 million
— Net income allocable to common shareholders was $1.1 million, or $0.05
per diluted share
— Excluding a $1.6 million deemed preferred dividend and other non-cash
expenses, adjusted net income was $2.7 million, or $0.11 per diluted
share, up 86.0% year-over-year

2009 Full Year Highlights
— Net revenues increased 26.4% to $53.5 million year over year
— Revenue from the sale of forged products for the wind power and other
industries increased 104.2% year over year to $35.7 million, or 66.8%
of net revenues
— Revenue from the sale of forged products exclusively to the wind power
industry increased 198.5% year over year to $20.1 million, or 37.6% of
net revenue
— Gross profit increased 22.5% to $12.9 million
— Net income allocable to common shareholders was $5.6 million, or $0.24
per diluted share
— Excluding deemed preferred dividends and other non-cash expenses,
adjusted net income was $7.8 million, or $0.34 per diluted share, up
35.1% from adjusted net income of $5.8 million, or $0.27 per diluted
share, in 2008
— Opened new forged product manufacturing facility in Wuxi City
— Began construction of electro-slag remelted production line
— Listed on the NASDAQ Global Market

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

LDK Solar (NYSE:LDK)

LDK Solar Co., Ltd.  is a leading vertically integrated manufacturer of photovoltaic (PV) products and the world’s largest producer of multicrystalline wafers. LDK Solar manufactures polysilicon, mono and multi crystalline ingots, wafers, modules, and engages in project development activities in selected segments of the PV market.

On March 30th, 2010, LDK reported its unaudited financial results for the fourth quarter ended December 31, 2009.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

HIGHLIGHTS

• Fourth quarter 2009 revenue was $304.6 million;
• Shipped 340.4 MW of wafers in the fourth quarter, up 33.8% year-over-year;
• Gross margin for the fourth quarter of fiscal 2009 was 9.9%;
• Net loss was $7.3 million, or $0.07 per diluted ADS for the fourth quarter;
• Increased wafer capacity to 1.8 GW in 2009;
• Sold 15% ownership stake in 15,000 metric ton (MT) annualized capacity polysilicon plant to Jiangxi International Trust and Investment Co., Ltd. for proceeds of approximately $219.7 million; and
• Completed follow-on public offering and received net proceeds of $111.0 million.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China Energy Corp (OTC.BB:CHGY)

China Energy Corporation produces and processes raw coal for domestic heating, electrical generation and coking purposes for steel production primarily in the People’s Republic of China, and acts as a brokerage in facilitating coal trade transactions. The Company produces coal through its subsidiary Inner Mongolia Tehong Coal Group Co, Ltd. (“Coal Group”) and supplies heating and electricity requirements throughout the XueJiaWan district through its subsidiary Inner Mongolia Zhunger Heat Power Co., Ltd. (“Heat Power”).

On March 29th, 2010, the company announced financial results for the fourth quarter and fiscal year 2009.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

HIGHLIGHTS

– Fourth quarter 2009 revenue up approximately 300% to $21.9 million; net income $6.6 million
– Fiscal-year 2009 revenue up 110% to $41.7 million; net income $5.1 million
– Fiscal-year 2009 cash flow from operations of $13.2 million
– Mine expansion and improvement program completed in August 2009 contributed to Q4 2009 gains and will contribute to 2010 growth

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

KHD Humboldt Wedag International Ltd (NYSE:KHD)

KHD Humboldt Wedag International Ltd. (“KHD”) announced in the first quarter of 2010 that it intends to restructure KHD into two distinct legal entities through the distribution to KHD’s shareholders, on a pro rata basis, of approximately 26 percent of the shares of its subsidiary, KHD Humboldt Wedag International (Deutschland) AG (the “Arrangement”).

And on March 26th, 2010, Humboldt announced results for the fourth quarter and year ended December 31, 2009.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

HIGHLIGHTS

• Revenues in the fourth quarter of 2009 were $210.2 million, an increase of 41.8 percent compared with the third quarter of 2009
• Gross profit, excluding the impact of terminated contracts, was$48.1 million
• KHD’s balance sheet remains strong. As of December 31, 2009, our cash and cash equivalents increased to$420.6 million (as compared to $409.1 million at the end of 2008)

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China Automotive Systems (NASDAQ:CAAS)

Based in Hubei Province, People’s Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through nine Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles.

On March 25th 2010, CAAS reported 119% Net Sales Increase and 1,200% Net Income Growth for the Fourth Quarter 2009.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

Fourth Quarter 2009 Highlights
— Net sales increased 118.9% YoY to a record $83.8 million;
— Gross margin increased to 29% from 28% in Q4 2008 and 27% in Q3 2009;
— Net income surged 1,199.5% YoY from $0.5 million to $6.5 million;
diluted EPS was $0.21;
— Cash and equivalents were $43.5 million at December 31, 2009.

Fiscal Year 2009 Highlights
— Net sales rose by 56.6% YoY to a record $255.6 million;
— Net income grew 88.3% YoY to $23.4 million; diluted EPS was $0.78;
— Net cash flow from operations was $35.0 million;
— Free cash flow was $17.5 million in 2009.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

Puda Coal (NYSEAmex:PUDA)

Puda Coal, through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The Company currently possesses 3.5 million metric tons of annual coking coal capacity. The Company has recently moved upstream into coal mining, as a consolidator and acquirer of coal mines in Shanxi Province.

On March 24th 2010, Puda Coal announced its announced its 2009 fourth quarter and full year financial results.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment

HIGHLIGHTS

Fourth Quarter 2009 Highlights
— Fourth quarter revenue totaled $60.2 million, down 6.6% year-over-year
but up 7.4% from $56.1 million in the third quarter of 2009
— Gross profit was $5.3 million, down 11.5% year-over-year and down 1.2%
from $5.4 million in the third quarter of 2009
— Operating income totaled $4.9 million, up 8.0% year-over-year, and up
20.9% from $4.0 million in the third quarter of 2009
— Net income was $2.3 million or $0.14 per fully diluted share, as
compared to $3.4 million, or $0.22 per fully diluted share, in the
fourth quarter of 2008 and a net loss of $0.6 million, or $0.04 per
fully diluted share, in the third quarter of 2009
— Excluding the $1.5 million in non-cash expense related to the fair
value loss of derivative warrants, adjusted net income was $3.7 million,
or $0.23 per fully diluted share, as compared to $3.3 million, or $0.22
per fully diluted share, in the same period last year and $2.8 million,
or $0.18 per fully diluted share, in the third quarter of 2009
— Sales of cleaned coal totaled 535,000 metric tons (MT), down 0.6% year
over year
— Average selling price of cleaned coal was $113 per MT in the fourth
quarters of 2009 and 2008.

Full Year 2009 Highlights
— Net revenue was $214.1 million, down 11.7% from 2008
— Gross profit totaled $18.2 million, down 40.1% from 2008
— Operating income was $14.5 million, down 41.7% from 2008
— Net income totaled $5.5 million, or $0.36 per fully diluted share, down
67.9%, as compared to $17.1 million, or $1.12 per fully diluted share
in 2008
— Excluding the $5.0 million in non-cash expense related to the fair
value loss of derivative securities, adjusted net income was $10.5
million, or $0.68 per diluted share, as compared to $16.7 million, or
$1.09 per diluted share from 2008
— Sales of cleaned coal reached 1.9 million metric tons, down 17.6% from
2008
— Average selling price of cleaned coal increased 7.8% to $111 per MT in
2009, as compared to $103 per MT in 2008 (after adjusting for exchange
rate differences)

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinese Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George