China Century Capital Limited - Private Equity Company Focused On China

Sydney, Aug 6, 2007 AEST (ABN Newswire) - China Century Capital Limited is a private equity investment company that is focused on making the most of the present opportunities within the rapidly growing economy of China. The Company has a strong base in the Chinese market and has the solid board and management team to aid it in its venture.

China Century intends to raise up to $15 million through an issue of shares at 35 cents each and its convertible notes offer, in which the Company says will raise up to $3 million through an issue of Notes at $1.00 each, providing investors with 12% interest returns per annum. The closing date for the offer is 23 August 2007.

I had the opportunity to speak with the Company's Research and Investment Manager, Mr. Thomas Su. He gladly took the time to explain to the Australian Investor the key attributes of China Century Capital Limited that make this offer so appealing.

"The Company was incorporated in New South Wales on 1 June 2004," Mr. Su, the company's research and investment manager, told the Australian Investor. "It has an innovative business plan and was one of the first and remains one of the few private equity companies that are focused on investing in China. We believe that China has a number of opportunities that are often overlooked and we plan to aggressively pursue these opportunities to make the most of their potential."

These opportunities are steadily increasing as China is now challenging the developed countries of the world as an emerging economic powerhouse. China has an economy worth over US$6 trillion, with an annual GDP growth rate of over 9% for the past 25 years. It is the world's largest destination for foreign direct investment, with over 450 of the top 500 multinational companies having businesses in China.

"As it is a booming economy there are numerous investment opportunities available," Mr. Su explained to the Australian Investor, "We follow a simple business model to help us screen these deals. The model focuses on businesses with quality management, expansion opportunities that are capable of leading to an IPO within 3-5 years and businesses which have strategic upside advantage. We strive to help these businesses prepare for the float to enable them to capitalize on the opportunity."

A key advantage of being in the Chinese market is that private equity is at a relatively early stage, which means that the deals are not as highly priced as they are in more mature private equity markets, such as Australia.

According to Mr. Su, China Century chose to be based in Australia due to the changing attitude, in general, of the Australian investors. He believes that the recognition of the growing Chinese market and what it represents is beginning to be appreciated by these people, who will therefore potentially be interested in joining China Century's shareholder registry.

China Century already has an exiting portfolio of three companies, which provides them with existing business and cash flow.

The portfolio includes, Sinotel Limited, a licensed telecommunications carrier that has the right of use for 20 years on 30,275 km fibre optic network. This business is in an unusual position in China as it is one of the few private network operators there.

Mr. Su commented, "The internet economy has been increasing at a rapid pace in China due to the use of computers by the younger generation and the increase of multinational corporations setting up in China who use the internet to communicate with their other offices. The infrastructure has not been set up to meet this demand, which means Sinotel will be in a prime position to make the most of the expansion in this market. Plus, it has already reached monthly cash flow positive operations, which we believe is great and very encouraging for its future outlook."

The next Company within China Century's portfolio is Cominco Pty Limited, which owns a construction stone quarry near Shanghai, China. Its business plan is to seek to expand operations to include aggregate blending, construction sands and limestone. It services the new and refurbished housing markets, roads, rail and general infrastructure construction. The business has been expanding rapidly, as anticipated, given the high demand in the Shanghai region for infrastructure development and housing construction.

"Cominco is more the traditional cash flow industry," Mr. Su informed the Australian Investor, "It has been operating for a number of years and has a very strong profit margin. It provides immediate cash flow to China Century. It is a very strong, sustainable business, especially in light to the increasing need for infrastructure in China and the constant demand for construction."

The last company within China Century's existing portfolio is ZBB China Pty Limited, which is focused on energy storage technology. It is positioned to meet the increasing demand for energy management both efficiently and in an environmentally friendly manner. The Company is an established American based technology company that develops zinc/bromine stationary battery systems for power utilities and renewable energy applications.

"At the moment it is focused on major utility companies in the US, but is expanding into the Chinese market," Mr. Su told the Australian Investor, "The application is also being developed as a smaller battery that could be used in scooters, which are very popular within China."

The Board believes that a generally diversified investment strategy with selected growth industries and in selected Provinces in China optimizes potential profits, and reduces overall risks of the investment pool.

"We have a number of exciting opportunities in our pipeline that we plan to carefully evaluate and where appropriate pursue," Mr. Su explained to the Australian Investor, "We are particularly considering companies within industries where our board and management team has the industry knowledge, which includes renewable energy, commercial services, resources, energy, IT, e-commerce and telecommunications."

In addition to this expertise, China Century's board and management team has extensive well established relationships and networks that have been built up over 20 years of conducting business in China. The team includes both bilingual western executives and Chinese professionals who have worked in both China as well as western business environments including Hong Kong, USA, Europe and Australia.
Mr. Su concluded, "We believe that the Chinese market has many more years of sustainable, strong economic performance. We are confident that China will continue its present trend and within the next ten to fifteen years to potentially emerge as one of the largest manufacturing exporters in the world. We believe we are ideally positioned to make the most of this growth, while presenting an attractive offer for investors interested in joining us."

Contact:

Thomas Su
Director
Money Cat Consulting
Tel: (02) 9290 1693
Fax: (02) 8569 2396
Mob: 0411 121 464
E-mail: thomas@moneycat.com.au

Colbourne Pty Ltd (Trading Name: Money Cat Consulting) is the Corporate Authorised Representative 313257 of Great Pacific Securities Pty Ltd: AFSL 247267