London Asia Chinese Private Eq.F Share Discussion Threads

[robsy2] 23/12/2006 10:13

Morning Buffin
"Maybe the new investments include LDC's portfolio? That could explain the delay in restructuring LDC."

Thats what I have been thinking! They have always said that interesting opportunities outweigh available funds in China .

We know the fund can expand to 150 million, we know that share swaps are now allowed ( see above)under the new rules so the neat solution would be to transfer in some assets from LDC to the LCP fund.This will release capital for LDC and provide some decent investments for LCP depending on the transfer prices...
So Lcp becomes fully invested in strong performing high growth businesses that are well onside with the Chinese authorities & Ldc gets more revenue from fund manager fees.
I think that value will be created by investing in China but there are risks & I am not entirely certain where the value will be created soI,ve gone with LDC and LCP.
I am bullish of these stocks so long as they continue to play everything with a straight bat and stay onside with the authorities in China and the investmnet community in London and remember to create value for the investers.

[robsy2] 19/12/2006 16:25

This is ticking up nicely.A lot of buying momentum of late.

[painting] 05/12/2006 04:52

The news re CDM listing was emailed out by LAC last week to all those registered for its Newsletter - easiest way to keep up with what going on for LDC and LCP - see

[buffin] 04/12/2006 15:11

From the LDC thread -


Emergin - 4 Dec'06 - 14:49 - 7278 of 7278

The news this morning at our coffee shareclubuk meeting was that China CDM Exchange Centre Ltd has submitted an application to list on the UK PLUS Stock Market.. As a matter of interest London Asia Private Equity Fund (LAPEF) has a 10% holding in the company.. LAPEF is the investment arm of London Asia Capital Plc..

See RNS 23 Nov.

[boonboon] 29/11/2006 07:30

China CDM Exchange Centre


China CDM Exchange Centre Limited ("CCEC") is a Jersey incorporated company providing brokerage, advisory and research services relating to the reduction of greenhouse gases ("GHGs") in Asia. It works with businesses and projects that generate carbon credits, and assists the project owner to identify buyers for, and sell on, those carbon credits.

In addition to providing advice to projects which generate carbon credits, CCEC also acts as an emissions broker and maintains its own carbon trading portfolio. It manages the only on-line platform for environmental commodity transactions in China.

The Company operates within the framework of the Clean Development Mechanism ("CDM") of the Kyoto Protocol, established under the auspices of the United Nations Framework Convention on Climate Change. The Protocol commits countries to reducing their emissions of GHGs by pre-determined amounts or compensate for maintained or higher GHGs emissions via emissions trading.

Currently, CCEC is working on 26 projects with aggregate annual CO2 emissions of approximately 30 million tons.

As the world's second largest emitter of GHGs, China is expected to overtake the US in GHGs emissions by 2025 and become the major player in the global carbon market. To date China is the largest CDM seller and the target for many of the carbon credit funds created in the last 18 months seeking to buy carbon credits.

CCEC has applied for listing on PLUS market in December 2006. London Asia Corporate Finance Ltd is acting as the Corporate Adviser to CCEC in its application to PLUS listing.

For additional information or an investor presentation (note: the offer is only available to those investors who have registered with us as Sophisticated Investors or High Net Worth Individuals, in accordance with UK Financial Services regulations), please contact [e-mail]

[robsy2] 23/11/2006 11:57

I'm with you there capt!!

[capt bligh] 23/11/2006 11:04

Just bought some warrants. roll on 148 bid.

[buffin] 23/11/2006 07:12

LACPEF, the China focused investment fund, is pleased to announce that it is
investing £1.9 million for an 10% stake in China CDM Exchange Centre Ltd ('CCEC'
or 'the Company')....

Mr Kang Zheng, Chief Executive of CDM, said: 'We plan to list our business on
the UK's PLUS Stock Market in the near future, and welcome the investment by the
Fund and assistance from London Asia in getting the PLUS listing, which will
increase our exposure internationally among carbon credit purchasers.'

[robsy2] 22/11/2006 15:07

Another quick look at Plus net tells us that China new energy stock is very tightly held . as far as I can make out it's not been traded since it was floated...
As you say (in theory at least)the 2.2m invested has turned into about 9million and the forward per is around 4.If they were able to get rerated to say per 8 and keep the growth going then in a years time it would be worth at least double the current Mcap.
I think I am going to buy a few more.

[robsy2] 22/11/2006 12:36

Hi Buffin
I saw that to.It looks like a great investment that is performing well.When you look at some of the others they have in the fund then it make me very optimistic about the fund.
Robsy 2

[buffin] 22/11/2006 10:50

China New Energy have reported this morning.

We paid £2.2 million for our 25% of the Company (a price of 127p per share) -

Today at China New Energy report increased business (including a contract outside China) and say

The Company is currently generating a monthly profit of over GBP750,000, backed by a strong order book and a number of pipeline opportunities.

The market cap is just over £35m, which could imply a forward PE of 4!

[robsy2] 17/11/2006 16:32

Looks like a good investment,the PER of about 10 ish, growth market etc etc.
More significantly is the change in the way LCP/LDC is doing business as highlighted by Buffin.
Previously the business model has involved setting up a Jersey based company to acquire a Chinese companies assets then floating itself on Plus Markets.Notsurprisingly the Chinese authorities don't see that as being a very good idea.
Maybe bad news for LDC and good news for LCP?

[buffin] 17/11/2006 07:05

London Asia Chinese Private Equity
17 November 2006

Investment in Devotion Eco-Thermal Ltd

LACPEF, the China focused investment fund, is pleased to announce that it is
investing £1.4 million for an 11.8% stake in Singapore listed Devotion
Eco-Thermal Ltd ('Devotion' or 'the Company') via a subscription to a placement
of new shares and the acquisition of existing shares.

Devotion specialises in providing clean and alternative energy solutions, as
well as developing and making energy saving and environmentally friendly thermal
equipment and infrastructure. The Company was listed on the Main Board of the
Singapore Stock Exchange in August 2003.

Victor Ng, Executive Director of the Fund, is also non-executive Chairman of
Devotion.

Mr Chang Houchun, Chief Executive of Devotion, said: 'The Chinese Government's
commitment to developing a more energy efficient economy, and reducing the
reliance on fossil fuels, provides significant growth prospects for our Company'.

Simon Littlewood, Executive Director of LACPEF, commented: 'With the recent
tightening up of rules relating to the listing of Chinese assets and businesses
overseas by the Chinese Government, we are increasingly focusing on investing in
businesses which have already attained a listing or have restructured outside
China to reduce the time taken to invest in and list our investments.'

'We have known Devotion for several years and believe that with the new projects
they are working on in the alternative energy space, they will be able to take
advantage of their strong reputation and Singapore listing to become a leading
player in the rapidly growing Chinese market for clean and alternative energy
solutions.'

[buffin] 15/11/2006 22:23

Bizarre - didn't move the price on my monitor, though.

[robsy2] 15/11/2006 15:47

OK own up! Who was it who bought 79 warrants today and pushed the price up nearly 5%?
R

[painting] 08/11/2006 09:31

See LDC announcement of yesterday re appointment of director of corporate finance for listing companies on Aim and PLUS - hopefully will include some of LCP's investments.

[robsy2] 17/10/2006 16:44

Looks good . Any idea what per they bought in at?

[buffin] 17/10/2006 07:07

Investment in Chinese Solar Business

LACPEF, the China focused investment fund, is pleased to announce that it is
investing £2.1 million in China Solar Energy Co., Ltd. ('China Solar' or 'the
Company') a leading constructor of solar energy buildings in China. The funds
will provide working capital for the construction of a number of new
multi-functional solar energy buildings, for which contracts were signed in
September.

China Solar's core business is the design and manufacture of solar energy
buildings in China, based on its patented solar thermal technology. The Company
has been formed from the acquisition of the assets, intellectual property and
work in progress of Tianpu Solar, a Chinese company. In 2004, Tianpu Solar
completed the first large scale building in China that uses solar power as the
sole source of thermal energy - because of its ground-breaking design and
application of technology, the building is used as a 'Demonstration Building'
for the 2008 Beijing Olympics.

China has an increasing demand for fuel due to its rapid economic growth. Its
electricity supply is mainly based on coal. The use of renewable and alternative
energy sources is becoming increasingly important as the Government seeks to
find alternatives to fossil fuels.

The Company is currently completing a large scale leisure project in Beijing,
believed to be one of the largest solar thermal buildings in the world, which
integrates a range of sea themed leisure activities, including an aquarium, fish
breeding centre, floating tanks and restaurants, in one complex. The water
temperature, as well as all heating and cooling, is provided and regulated using
the Company's patented solar technology.

The Company has also developed an efficient, solar thermal heated and cooled
house, designed to meet the requirements of the Chinese Governments' program for
providing affordable, energy efficient housing to the rural population, which
makes up around 600 million of China's population.

Mr Li Xianhang, founder and Chairman of China Solar, said: 'Following the very
successful development of the leisure complex in Beijing, we have signed a
number of similar large projects in other parts of China for which we require
additional capital, which the Fund is providing.'

Simon Littlewood, Executive Director of LACPEF, commented: 'The Company has
patented technology, an experienced management team, a strong research and
development programme, and strong support from the Chinese Government. There
are significant opportunities for the Company to expand rapidly to take
advantage of its strong brand and first-mover advantage, and the increasing
emphasis by the Chinese Government on renewable energy sources and improving the
quality of life for the poor.'

Notes on China Solar Energy

The Company designs and constructs large scale municipal, commercial, academic
and leisure buildings on a Build, Own, Transfer (BOT) basis, incorporating its
own patented solar thermal technology. Its key customers include the Chinese
Government, real estate developers and resort owners. China Solar Energy Ltd is
a Jersey incorporated holding company with a Chinese operating business
headquartered in Beijing. For further information, visit
en.tianpuxianxing.com

[buffin] 25/9/2006 07:30

From today's LDC interims -

In March we successfully raised the £50 million we were seeking for the London
Asia Chinese Private Equity Fund, and listed it on the UK's AIM Stock Market. As
of now, the Fund has committed £23 million to 7 investments, with provisional
Board approval for further investments, which were they to be finalized would
mean the fund would be fully invested. London Asia receives a fee of 2% of the
net asset value of the fund, plus a profit share equal to 20% of the increase in
assets of the fund.

[buffin] 22/9/2006 09:45

Just to add yesterday's announcement.

21 September 2006

London Asia Chinese Private Equity Fund Limited
("LACPEF" or "the Fund")

Two New Investments

LACPEF, the China focused investment fund, announces that it has made two new
investments for a total of #14.2 million, making seven investments since the
Fund closed on 15 March, with over #23 million of funds committed.

Canmake Business Ltd

Founded in 2001, Canmake Business Ltd ("Canmake") is a manufacturer of can-lids,
pull-tab ends, caps, closures and other metal packaging products serving the
fast growing Chinese beverage and food industries. Canmake sells over 150
million lids a month.

Canmake generated profits of #4.2 million for the year ended 30 June 2006,
showing growth of over 60%. The Fund has invested #4.9 million for a 20% stake.
Simon Littlewood has joined the Board of Canmake.

Commenting on the investment Reynold Wong, Chief Executive of Canmake said: "The
new investment strengthens our capital base, enabling us to scale up our sales
volumes and to expand the range of products we provide to our customers. We look
forward to working with London Asia to develop our business and position the
Company for a stock market listing."

Simon Littlewood, Director of LACPEF, said: "Canmake has an established position
in a fast growing market, with opportunities to expand into related products as
the market continues to develop in China on the back of rising prosperity and
shifts in consumer tastes."

Asia Water Technology

The Fund has acquired a 22% stake in Singapore listed Asia Water Technology ("
AWT" or "the Company"), for a total consideration of #9.3 million in cash.

AWT was founded in November 2002 and listed on Singapore's SESDAQ Stock Market
in March 2005 (Code: SI5GB). It has a current market capitalisation of
approximately #48 million.

For the year ended 31 December 2005, AWT reported profit after tax of #2.6
million on sales of #26.2 million. For the half-year period ended 30 June 2006,
the Company saw profits attributable to shareholders increase by 34% to #1.4
million. The net assets as at 30 June 2006 were #16.7 million.

Following the acquisition of the stake, which was acquired from one shareholder,
the Fund is now the largest shareholder in AWT. Simon Littlewood, Executive
Director of the Fund, has been appointed to the Company's board as Chairman of
the Investment Committee, responsible for new investments and capital
expenditure, as well as financing. Victor Ng, Fund Executive Director, is an
existing director of AWT and Chairman of the Remuneration Committee.

AWT is a specialist water treatment company, offering total engineering
solutions for both water purification and waste water treatments systems. It
has also invested in Build-Operate-Transfer ("BOT") projects for water supply
and waste water treatment plants, working primarily with clients in the power
generation and municipal water supplying and waste water treatment industries in
China.

In late August 2006, Zhou Shengxian, head of the State Environmental Protection
Administration, announced that China is to launch a giant water pollution
control project to address the fact that per capita water resources in China are
only one third of the world's average. This will be the country's largest
environment related scientific research project in terms of investment. China
has 21% of the world's population, but only 7% of the world's water supply, and
this summer has seen the worst droughts in 50 years.

Other key factors driving AWT's growth include:

* statistics from the Chinese Government show that among 660 cities
nationwide, 364 cities are still threatened by the supply of adequate clean
water and 297 cities have not yet established qualified waste water treatment
facilities;

* according to China's tenth 'Five Year Plan', by 2010 additional water
supplying capacity of 40 billion cubic meters will be built;

* The State Council has planned that at least 60% of Chinese cities
should have waste water treatment facilities ready by 2010, which means more
than 1,500 municipal waste water treatment plants will be built in the next five
years;

* ninety per cent of waterways flowing through China's cities and 75% of
the country's lakes are polluted; and

* more than 300 million of China's rural population do not have access
to clean potable water.


Mr Hanguang Huang, Chief Executive of AWT, said: "AWT is a small company
operating in a huge market. We have many more projects than funds available, and
we look forward to working with London Asia and the funds it manages to enable
us to expand our business rapidly and take advantage of the huge number of
opportunities in our sector, where we have recognised expertise. We hope the
relationship will not only bring us additional sources of finance, but also
access to the latest technology in the sector from around the world through
London Asia's international network."

Simon Littlewood, Director of LACPEF, said: "This is an excellent opportunity to
invest in a fast growing business in a sector with massive long term growth
potential, as China seeks to address major issues with the supply and treatment
of its water and waste. The Chinese Government has recognised the need to
address the efficient treatment of waste water, to curb its water shortages, and
to supply its growing cities with clean, safe water. The Fund has the
opportunity to get in at the beginning of the Company's anticipated rapid
growth."

About Canmake Business Ltd

Founded in 2001, Canmake currently has monthly sales averaging over 150 million
lids, with a total of nearly 2 billion lids and caps delivered to its customers
in 2005.

The canned food and beverage market in China is seeing considerable growth as a
result of rising prosperity and a shift in consumption patterns. Only 11
billion beverage cans are consumed annually by a population of over 1.3 billion
in China, with an average consumption of 8 cans per capita per year, against 400
cans per capita in the US, 140 in Japan, and 67 in South Korea. The annual
consumption of canned food in China is only 1.5kg per head - the annual
consumption of the USA is 90kg per capita, Europe is 50kg, Japan is 23kg and the
world average is 8kg per capita.

About Asia Water

Asia Water is engaged in:

* providing total engineering solutions for water purification, water
supply and waste water treatment projects as a general EPC contractor. Since
incorporation, Asia Water has signed over 200 water purification contracts for
power plants and 5 municipal water supply and treatment contracts, with total
contract value exceeding RMB 2 billion.

* managing and operating municipal water supply and waste water
treatment plants on a "BOT" basis. Currently, Asia Water is operating two
municipal water supply plants and three waste water treatment plants.

For additional information, see www.asiawatertech.com

So we're nearly half invested already! We know the fund was over-subscribed. I can't imagine Simon will want to stop at £50m, and by the time the investments are in the £40m's he'll probably be able to get more funding quite easily.

I particularly liked Asia Water's comment that they have many more projects than funds available. Their remark that We hope the relationship will not only bring us additional sources of finance, but also access to the latest technology in the sector from around the world through London Asia's international network suggests that they want to work their new investor pretty hard (!) and are looking for a step change in their fortunes. The BBC tv series on China a few months ago certainly gave a feel for the huge scale of the water problems the Chinese have. Sure, some local officials will continue to turn a blind eye to the problem, but it seems the company has more enquiries than it can handle, and the Chinese water problem looks bound to get worse before it gets better. And these people seem to have built the all important contacts already. Obviously there's competition, but it's a huge market. OK, I'm enthusiastic! - I'll shut up now :)

[robsy2] 14/9/2006 18:43

Thanks Boon Boon
That reads well. It looks like you can buy quite a lot for £1.9m in China!

[boonboon] 14/9/2006 07:30

News
China New Energy Limited - Acquisition of assets and sales contracts


CHINA NEW ENERGY LIMITED

ACQUISITION OF ASSETS AND SALES CONTRACTS

The directors of China New Energy Limited ("CNE or "the Company") are pleased
to announce the acquisition of a number of operating assets, technology patents
and work in progress from Guangdong ZhongKe Tianyuan Regeneration Engineering
Co. Limited ("ZKTY") and Guangzhou Baojie Co. Limited ("Baojie") for a total
consideration of RMB 29 million (GBP 1.9 million) to be settled in cash.

Based in Guangzhou in Guangdong Province, southeast China, ZKTY and Baojie are
providers of turnkey technology solutions and equipment in China for the
production of ethanol, edible alcohol and acetic acid.

The acquisition includes signed sales contracts and work-progress with a
contract value of RMB 240 million (GBP 16 million) as well as 72 staff. The
assets, staff and contracts will be transferred to CNE's wholly owned
subsidiary incorporated in China - Guangdong Zhongke Tianyuan New Energy
Technology Co., Ltd - with immediate effect. The patents acquired relate to
distillation, fermentation and ethanol dehydration technologies for ethanol and
edible alcohol designed to improve production efficiency and reduce costs.

Mr Weijun Yu and Mr Tang Zhaoxing, executive directors and shareholders of the
Company, are shareholders and directors of ZKTY and Baojie. An independent
appraiser's report was used to value the assets and their report was reviewed
by the non executive directors, who determined that the assets acquired were
fairly valued.

Commenting on the acquisition, Weijun Yu, CNE Chief Executive said: "The
acquisition of these assets and work in progress, as well as the staff
transferring across, enables us to begin operations immediately. With sales
contracts already in place and a developing pipeline of further contracts, the
Company is well placed to capitalise on the growing opportunities in the
sector."

The directors of China New Energy Limited accept responsibility for this
announcement.

For further information please contact:

Stephen Lucas
London Asia Corporate Finance Ltd
Tel: [phone]
www.londonasiacf.com


ABOUT CHINA NEW ENERGY LIMITED

CNE, a newly incorporated Jersey company, has been established as an investment
vehicle focusing on the rapidly expanding ethanol sector in China. Fuelled by
rapid economic growth, China has become a significant energy consumer, with its
annual increase in energy consumption almost equal to the total installed
capacity in the UK, and usage rising by 16% alone in 2004. Although China's oil
consumption is the second highest in the world, it is still less than a third
of that of the US, and less than 10% per head of that in the West. Demand
growth in China accounted for 52% of global energy demand growth from 2002-
2004. In 2005, China imported over 44% of its oil consumption and this is set
to increase significantly as China's growth and manufacturing boom continues.

The Chinese government is eager to reduce the country's reliance on oil imports
and to increase the uptake of alternative fuels, both for economic,
environmental and strategic defence reasons. It is therefore very supportive of
the renewable energy sector.

The Chinese government has enacted various laws and regulations encouraging the
use of renewable energy as a substitute for fossil fuels, one of which states
that vehicle fuel must comprise at least 10% fuel ethanol in 11 of the 33
provinces in China. This creates a new market for ethanol production, as
previously only one province was operating a trial system. As more provinces
start to implement this policy, China is likely to face a significant shortage
in fuel ethanol. According to the National Development and Reform Committee,
the demand for fuel ethanol in the next five years will reach 5-7 million
tonnes annually, whilst fuel ethanol production in 2005 was only 1.02 million
tonnes. Hence the market size is expected to increase considerably, resulting
in significant opportunities in the supply chain to the ethanol production
market.