FFWD.L Regulatory News (FFWD)

6 Sep 2006 07:30

London Asia Chinese Private Equity06 September 2006 6 September 2006 London Asia Chinese Private Equity Fund Limited ("LACPEF" or "the Fund") Investee Companies Trading On PLUS LACPEF, the China focused investment fund, is pleased to announce that two moreof its investee companies are to begin trading on the UK's PLUS Markets StockMarket. China New Energy Ltd ("CNE") is expected to begin trading today at 525p a share,giving it a market capitalisation of £35 million. Its core business is thesupply of turnkey technology solutions for the production of ethanol, ediblealcohol and acetic acid from a range of bio-resources, including corn,sugarcane, cassava and other bio-resources. As part of the listing process, theFund has invested a further £0.35 million, bringing its total investment in CNEto date to £2.2 million for a 25% stake. CNE is seeking a listing to enable itto tap into the international market for its product, with sales currentlyfocused on the Chinese market. China Biofoods Ltd ("Biofoods") is expected to begin trading on Thursday 7September at 175p a share, giving it a market capitalisation of £12.5 million.The Fund took a 31% stake in June at a cost of £2.1 million. Biofoodsspecialises in the production of highly purified herb extract products, whichare then used to produce traditional Chinese medicine, and as ingredients infunctional foods. China Biofoods reported revenues of £2.9m with profit aftertax of £1.2m for the year ended 31 December 2005. It is listing on PLUS as away of tapping into the international market for its products. Simon Littlewood, Executive Director of LACPEF, commented: "These listings onPLUS follow the successful listing of our investee company Dalian BusinessInstitute in May, with Dalian currently trading at a market capitalisation ofover £18 million, valuing the Fund's stake at £3.6 million against an investmentcost of £2.0 million. The listings demonstrate the value in our investmentportfolio. CNE is listing as it will need considerable amounts of capital goingforward as it seeks to take advantage of its leading position in the ethanolsector in China, where as a result of recent changes in legislation there hasbeen a rapid expansion in the size of the market, as well as taking advantage ofopportunities outside China, with ethanol being looked at worldwide as apotential alternative to highly priced oil. Biofoods is expanding its productrange, and looking to tie up with international partners to sell its productsoverseas." For further information please visit www.londonasiafunds.com or contact: John West/Matt Ridsdale Simon Littlewood Hugh FieldTavistock Communications London Asia Capital plc Collins Stewart LimitedTel: 020 7920 3150 Tel 020 7355 7928 Tel: 020 7523 8000 About China New Energy CNE has established itself as the leading brand in China, with an estimated 60%share of the market for ethanol production equipment in China. The Company'ssuccessful track record is key to growing the business and its technology hasbeen used in over 30 projects. CNE is supported by strong drivers with thedemand for ethanol, a fuel seen as an alternative to oil, growing rapidly andsupported by a recent change in legislation in China requiring 10% of allvehicle oil consumption to be biofuel in 11 of China's Provinces. Similarlegislation is coming into force in many countries, such as the US and EU,creating a potential market for CNE to export its products going forward. For additional information, visit the Company's web site atwww.chinanewenergygroup.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 lifestylesand 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 been usedto improve hair and skin, reduce blood pressure, help prevent arthritis, lowercholesterol 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 This information is provided by RNS The company news service from the London Stock Exchange