7th Jun 2007 13:18
London Asia Chinese Private Equity07 June 2007 7 June 2007 London Asia Chinese Private Equity Fund Limited ("LACPEF" or "the Fund") LACPEF, the China focused investment fund, is pleased to provide an update toinvestors on the progress of three of its Plus Markets listed investeecompanies. China New Energy Ltd ("CNE") CNE, China's leading provider of turnkey technology solutions and equipment forthe production of ethanol, edible alcohol and acetic acid, produced an excellentset of results for the four month trading period to 31 December 2006, withrevenue of £9.9 million and profit before tax and share options of £2.1 million,equating to over £0.5 million profit per month. CNE has a current marketcapitalization on PLUS of approximately £36 million. The Fund holds a 25%stake. CNE completed 4 contracts in 2006, with 26 contracts in progress as at 31December 2006, representing £28 million in future revenue. CNE is continuing toextend its presence in the international market, resulting in the signing ofmajor bio-ethanol production facility contracts in Hungary and Romania totalling£6.5 million. China CDM Exchange Centre Limited ("CCEC") CCEC, the Chinese carbon credits advisory firm, announced profit after tax of£271,000 on revenue of £323,000 for the two month trading period to December2006. CCEC has a current market capitalization on PLUS of approximately £24million. The Fund has a 10% stake. CCEC has signed 17 new contracts so far in 2007. As at 24 May 2007 CCEC had 37contracts in its portfolio, with contracted tonnes of over 100 million to 2012(442 million tonnes for the 21 year period). China Biofoods Limited ("China Biofoods") China Biofoods announced profit after tax of £0.5 million for its five monthreporting period to 31 December 2006. China Biofoods has a current marketcapitalization on PLUS of approximately £13 million. The Fund has a 31% stake. China Biofoods specialises in the production of highly purified herb extractproducts, which are then used to produce traditional Chinese medicine and asingredients in functional foods. The market for China Biofoods' products isexpanding rapidly worldwide and the products have recently been approved forsale in the United States and Germany as well to the Jewish and Muslimcommunities. The development of its patented high-protein corn project has also beenprogressing well. The corn is integrated with Soya bean protein to deliver fourtimes more protein than that of ordinary corn. China Biofoods anticipatesachieving certification of the high-protein corn as a seed product for sales bythe end of 2007. Simon Littlewood, Director of the Fund, said: "Our portfolio companies continueto deliver strong growth in sales and profits. The listing on PLUS hasgenerated significant interest outside China from financiers, business partnersand customers, providing the exposure which enables the businesses to expandbeyond their home markets." For further information please visit www.londonasiafunds.com or contact: John West/Andrew Dunn Simon Littlewood Hugh FieldTavistock Communications London Asia Capital plc Collins Stewart Europe LimitedTel: 020 7920 3150 Tel 020 7355 7928 Tel: 020 7523 8000 About CNE CNE has established itself as the leading provider of turnkey ethanol productionsolutions in China, with its technology used in over 30 projects to date. CNE issupported by strong drivers with the demand for ethanol, a fuel seen as analternative to oil, growing rapidly and supported by a recent change inlegislation in China requiring 10% of all vehicle oil consumption to be biofuelin 11 of China's Provinces. Similar legislation is coming into force in manycountries, such as the US and EU, creating a potential market for CNE to exportits products going forward. For additional information, visit the Company's website at www.chinanewenergygroup.com About CCEC: China CDM is a Jersey incorporated company providing brokerage, advisory andresearch services relating to the reduction of greenhouse gases ("GHGs") inAsia. It works with businesses and projects that generate carbon credits, andassists the project owner to identify buyers for, and sell on, those carboncredits. The Company operates within the framework of the Clean Development Mechanism("CDM") of the Kyoto Protocol, established under the auspices of the UnitedNations Framework Convention on Climate Change. The Protocol commits countriesto reducing their emissions of GHGs by pre-determined amounts or to compensatefor maintained or higher GHGs emissions via emissions trading. Additional information is available at www.chinacdmex.com About China Biofoods Biofoods is based in Xuchang, Henan Province, the centre for farming traditionalChinese medical herbs. It specialises in the production of highly purified herbextract products, which are then used to produce traditional Chinese medicine,and as ingredients in functional foods. The market for "Functional Foods" is expanding rapidly worldwide, especially inChina. "Functional Foods" are foods or dietary components that may provide ahealth benefit beyond their basic nutritional value. Such products are aimed ata wide variety of markets, from those with poor diets and limited resourcesseeking additional nutritional content in their diet, to those whose lifestylesare levels of stress require them to eat more healthy food, to the aged who areseeking traditional cures to age related ailments. Biofoods' core products are highly purified linolenic acids, Reshi mushroomspore oil, and deodorized garlic oil. Linolenic acid, also known as Vitamin F,is an essential fatty acid which is not produced by the body, and has beenproven to improve hair and skin, reduce blood pressure, help prevent arthritis,lower cholesterol and triglycerides, and reduce the risk of blood clots. Reshimushroom spore oil is broadly used in the health food industry as a supplementand intermediate ingredient. For additional information, please visit the company's web pagewww.chinabiofoods.com.cn Valuation Policy For investments actively traded in organised financial markets, the Company'saccounting policy is that fair value is determined by reference to StockExchange quoted market bid prices as at the close of business on the balancesheet date. The fair value of other investments is determined in accordance withthe International Private Equity and Venture Capital Guidelines. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
FFWD.L