China West. Share Discussion Threads

[p@] 24/8/2007 13:30

bowl-have tried to copy your video button into the header but i don't think it works,any ideas?

[bowlhead] 24/8/2007 07:25

As its no longer on the latest page maybe worth posting the video - perhaps a link could be put in the header for new investors on board?

[tara7] 22/8/2007 08:26

New law in China, will let them buy shares outside China for the first time.

[tara7] 22/8/2007 08:17

Buy for 1p,but valued at 6p !!!!!

[torabora] 13/8/2007 11:10

Rule 26, should give us a web page on the company , in the next 7 days.

[badtime] 03/8/2007 20:57

Couple of chunky buys today

[bowlhead] 17/7/2007 12:13

In December the interims stated:

"The group has invested in a hospital operation in Western China with the aid of shareholder loans. The hospital made an initial loss in the period to September 2006 but is expected to break even in the short term."

I don't expect 'short term' to mean in time for the year end results, but it seems an interesting opportunity. There are only 3 other hospitals serving the area and they want to make this a market leader, taking over an ex army facility in an example of the kind of diversified property development the new Chinese directors have experience of.

INTRODUCTION

Formerly the 29th People's Liberation Army Hospital, Guangji Hospital aims to provide professional and efficient medical service delivery.

Gansu Province is a rapidly developing area in which the provision of medical services has been insufficient to meet local needs. Although there are 3.5 million people in Tianshui, the rate of illness and the ability to prevent and cure diseases is worse than in many areas in China. At present the area is only serviced by The First People's Hospital, The Second People's Hospital and The Railroad Hospital.

Although these hospitals have good quality medical technology and professionals, they are still unable to meet the needs of current and ever expanding numbers of patients. Access to hospital treatment and care has been limited because of outdated equipment, the lack of sufficient numbers of medical personnel (below the national average), and prohibitive pricing structures. This has resulted in patients having to travel excessive distances, to cities such as Bao ji or Xian, for treatment.

Directly reporting to the Health Office of Gansu Province, Guangji Hospital aims to remedy this situation by addressing these issues and ensuring that medical services are accessible to the entire local population.

In consultation with the General Charity Organisation of Gansu Province, the hospital will dedicate a percentage of its profits towards local charitable medical services.

Guangji Hospital

Guangji Hospital is situated in Mapaoquan County approximately 10km from the centre of the city of Tianshui. The hospital is located on the major route between Tianshui and one of the nation's most famous stone caves at Miji Mountain, and the route to Xianren Cliffs.

The hospital is located in a scenic area which is ideal of rehabilitation, the site covering some 83,000 square metres.

Guangji Hospital is a subsidiary of Lanzhou International Trade Co. Mr Zhan Chun-hu is the Chairman of the Board of Lanzhou International Trade Building Co Ltd. Mr Zhan, a university graduate and senior economist, has a wide range of business management experience and is currently an Executive Director of the UK based Hemisphere Properties Plc, parent company of Lanzhou International Trade Building Co Ltd.

Under the auspices of the General Charity Organisation of Gansu Province, the Department of Health, and parent company Lanzhou International Trade Building Co Ltd, the hospital's management consists of one Dean and two Vice-Deans, who
will lead teams in clinical medicine, general and specialist surgery, orthopaedics, trauma, ENT, paediatrics, obstetrics and gynaecology, plastic and cosmetic surgery, emergency & trauma, and thoracic medicine. All departments will be headed by medically qualified personnel and there will also be an onsite pharmacy.

SIZE

The hospital will have 200 beds, with a focus on outpatient services. Current equipment, which will be supplemented by further purchases of specialist equipment, includes diagnostic tools such for CT scans, ECG, endoscopies, and ultrasounds. The hospital also currently possesses two ambulances and will spend RMB12,000,000 on further equipment and infrastructure.

OPERATIONAL FOCUS

The hospital's initial priority will be the diagnosis and treatment of common ailments and diseases, primarily through the outpatient department. Following this will be the establishment of permanent philanthropic campaigns. Medical staff will undertake field visits to regional and isolated areas in order to treat those who have been previously unable to access medical assistance. It is the view of the hospital's management that they have a broader social responsibility for the healthcare needs of the local population that must be met.

MISSION STATEMENT

Guangji Hospital is committed to accessible, efficient, and innovative patient care and is guided by our commitment to excellence and leadership in healthcare provision through:
- Providing exemplary care for patients and their families
- Balancing a continued commitment to the care of those most in need with the provision of specialised services to a broader community
- Building a work environment in which each person is valued, respected and has an opportunity for personal and professional growth
- Demonstrating social responsibility through the donation and dedication of services and resources to the local community

Guangji Hospital’s goal is to become the premier healthcare provider for the region.

ADVANTAGES

1.Pre-existing facilities
The existing building, storage and facilities of the former Twenty-ninth People’s Liberation Army Hospital are available for immediate use. An eight-year leasehold agreement has been signed for the property, during which facilities will be modernised.

2. Reputation
The former hospital was well regarded locally and in surrounding regions for forty years.

3. Medical Personnel
All the medical doctors and personnel who previously served in the former Army Hospital have indicated that they will return to Guangji Hospital to resume their services to the community.

4.Convenience
The hospital is situated in Mapaoquan County, approximately 10km from the city Centre of Tianshui, and easily accessed by public and private transport.

[bowlhead] 17/7/2007 11:52

Too right torabora. Potential is enormous and the top guys have plenty of cash and contacts to help out with sourcing and funding opportunities. Although the spread is large you can buy well inside it. I see the do-nothing share price as a symptom of the lack of news flow. The company just thinks it has to put out an annual report to the stock exchange and that will be enough, so investors are holding back. At some point there will be a wake-up call, I'm happy to have been adding slowly in the last 6 months

This starts by describing the economy and local area of Lanzhou, after about 4 minutes it focuses on the International Trade Building Co, which Hemisphere (now renamed China Western) bought into by issue of shares to the Chinese owners. As per the company announcements, they have added to the portfolio with a hospital (funded by shareholder loans) and the video also mentions plans for a hotel.

Before a spate of chinese businesses became listed on AIM in the last couple of years I didn't know much about their economy, geography or demographics. Clearly there are some overvalued companies out there, that are growing their market cap (or simply treading water) on hype and spin. That's certainly not an accusation you can lay on our directors. They just quitely get on with their own thing, brokers and analysts ignore them...

But if potential investors think this is some two bit shopping mall in some dead-end town, think again.

[torabora] 17/7/2007 10:17

Very cheap share, just the type to buy on a five year view. Growth is on the cards big time.

[bowlhead] 17/7/2007 10:07

As the remaining portfolio is now the Lanzhou portfolio (international trade building, hospital etc) this might be relevant for the header - taken from the chinese website for Gansu Hospital


Strategic Outlook and Direction

Lanzhou International Trade Building Co Ltd plans to develop the second stage of the building site in order to provide better cultural and lifestyle opportunities for the residents of Lanzhou. It will also diversify into the fields of bio-pesticides and Chinese traditional medicines, with a target of holding a diverse portfolio of investments

Governors

Mr. Chun-hu Zhan: Born in Shandong. Senior Economist.
1. Chairman of the Board of Lanzhou Yunfeng Real Estate Exploitation Ltd. since 1992.
2. Chairman of the Board of Lanzhou Yunfeng Jincheng Entertainment Ltd. since 1993.
3. Chairman of the Board of Lanzhou International Trade Building Co Ltd. since 1993.
4. Executive Director of Hemisphere Properties Plc. since July 2004.

Mr. Yim Sang Chan: Born in Hong Kong . BA from the Chinese University of Hong Kong, MA from the University of Ottawa and the University of North Carolina. Previously employed at the Australian National University, and a consultant for the Hoover Institute, Stanford University. Since 1992 Mr Chan has been Chairman and Director of several Hong Kong and Australian real estate development companies. With Mr Chan, he established Lanzhou International Trade Building Co Ltd and is Vice Chairman of the UK based Hemisphere Properties Plc.

Mr. John Ho: Born in Hong Kong. Qualifications in law from the University of London. Practising solicitor for over 33 years. Director of several Hong Kong listed companies and CEO of Hemisphere Properties Plc.

Milestones
In July 2004, Lanzhou International Trade Building Co Ltd successfully 'purchased' British company Hemisphere Properties Plc. Board Chairman Mr Chun-hu Zhan was appointed as Executive Director of the company. Mr Yim Sang Chan was appointed as Vice Chairman, and Mr John Ho was appointed as Executive Director and CEO

[hamm677] 09/5/2007 12:30

Hi
do chwi have a website?

[timanglin] 05/5/2007 15:25

oh yes, your tip for nta has made me money - thanks, and i was 4th, but now 11-12th on www.stockchallenge.co.uk - 2007, this is where i got your tip for nta, i think, maybe 2007 thread as well.

[timanglin] 05/5/2007 15:14

Hi Tora,

thanks for your honesty - i am not a 'trader' and consider myself an investor, i got interested in shares recently because of some spare money and a need to pay for my daughters education and independent financial advisors seemed a real rip off - however having said that i have started more frequent trading recently. My 'core' holding is GVC - which i have researched thoroughly and at the present price - P/E 4.75 and dividend of 20% is a bargain, in my mind. The mark down in price was subsequent to worries about the germans closing the on line gambling business down, however my perception is that this risk is alot less now. There is a new 'boss' there who is just about getting his feet under the table there at the moment. The new boss hopefully will generate growth. It is ideal for a steady payment of education, from my point of view, and beats the building society.

However as to CHWI - the reason for the interest is that I know how profitable hospital outpatient services can be. If(the BIG IF) they - CHWI - get this right, then they will be making a profit in the very short term. Hence my questions as to whether you have any info on this side of the CHWI business.

[torabora] 04/5/2007 22:10

£32M

[flashheart] 04/5/2007 16:17

Even at present though with political risk included, their assets have to be worth well in excess of 4m - Yes?

[brando69] 04/5/2007 16:15

Obviously though it has political risk that nta does not have...
Chinese property laws... could be subject to all sorts of changes over next five years.
I am still looking at it. Interesting one!

[torabora] 04/5/2007 16:09

Hate to say it, but this is a long term share, and even i do not see it doing a Northacre. That said, if you buy at .7p with a company value of 4M pounds, big profits can be made over time. One day they could sell the land and buildings,and overnight one could be quids in. If you are a trader this is not for you. On a five year view we should do very well.

[p@] 04/5/2007 15:38

Consolidated Balance Sheet
Notes 30 September 30 September 31 March
2006 2005 2006
(Unaudited) (Unaudited) ((Audited)
#'000 #'000 #'000

Intangible Assets (1,566) (1,552) (1,584)
Investment properties 28,891 43,502 40,449
Tangible assets 635 260 247

27,960 42,210 39,112

Current assets
Stock 21 - -
Property under construction 18,669 18,792 18,752
Properties held for resale - 100 -
Debtors : due within one year 247 490 158
Cash at bank and in hand 727 292 115

19,664 19,674 19,025

Creditors: Amounts falling due within one year (14,244) (24,826) (22,858)

Net current assets/ (liabilities) 5,420 (5,152) (3,833)


Total assets less current liabilities 33,380 37,058 35,279

Creditors: Amounts falling due after more than
one year (555) (917) (329)

Net Assets 32,825 36,141 34,950


Capital and reserves
Called up equity share capital 4 7,183 6,913 7,183
Share premium account 32,919 32,919 32,919
Revaluation reserve 18,262 18,262 18,262
Merger reserve 3 3 3
Profit and loss account (25,741) (22,155) (23,627)
Minority interest 199 199 210

32,825 36,141 34,950




Consolidated Cash Flow Statement
Notes Period ended Period ended Year ended
30 September 30 September 31 March
2006 2005 2006
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000

Cash inflow/(outflow) from operating activities 6 1,022 (2,087) (3,077)


Returns on investments and servicing of finance (915) (892) (1,943)


Taxation (12) - -


Capital expenditure & financial investment (438) 3,250 5,375


(343) 271 355

Financing 955 77 540

Increase in cash in the period 612 348 895

[timanglin] 04/5/2007 12:04

Hi Tora, I have moved over to this thread after your success in NTA. Apart from thanks, i guess that i can help with thoughts on this one, - it seems to me that the hospital deal is significant, how likely is it to start making money, i hace a background in healthcare and know how profitable Outpatient work can be, and was therefore surprised that the hospital opd work didnt make a profit in the first quarter? Do you have any extra info? I am quite hapy to do research on this one if you want?

[torabora] 30/4/2007 21:28

Yes, just me on the stir, don*t worry. Mr M Shields was a top dog , for v, large bank in the far east.

[danski] 30/4/2007 21:24

PS It's not at all that I am not happy! I am v pleased that you put me onto this one to have a look at. Always grateful for interesting tips. I am just cautious...

[danski] 30/4/2007 21:23

Hey Tora - I am not questioning your stockpicking or your rationale. I am just throwing out the questions that I will need to find answers to to satisfy myself. It's more fun than trying to do so in a vacuum.

The history of the market is of course littered with bargains that turn out to be worthless. Not for one moment suggesting this is one of them. But I recall persuading my old investment club to back one of two fastgrowing online gaming stocks on what was then Ofex (I think they were called Fastbet, or something like that). They went bust a month later. To rub salt into the wound, the other company, which I toyed with proposing instead, were an equally little known venture by the name of Sportingbet.

Investors in Langbar probably at some point down the line thought they were getting something for nothing.

Thanks for the tip, I will check out the chaps CV.

[torabora] 30/4/2007 21:15

Danski, you make me cry, you are getting something for nothing, but , still not happy with that, you worry about what will go wrong.!!!! That is, the very reason I can buy such good value shares. Take a look at Northacre, here I was buying at 2p, 18 months ago. All i got was posts like yours,day in day out. Have a read under the NTA thread. Northacre are the best ,[highest rising share on the LSE.] 15 times!!! Back to CW, have a look at the new mans, old job. Then get back to me. Good luck.