China Wind Secures KRC for Sarbox Compliance Consulting
China Wind Systems, Inc. (NASDAQ: CWS) signed an agreement with Shanghai KRC Business Consulting Co., Ltd. on January 12. The agreement is to assist China Wind Systems in preparing to comply with the requirements of the Sarbanes-Oxley Act regarding internal control over financial reporting. China Wind Systems is a supplier of forged products and industrial equipment to the wind power and other industries in China. Mr. Jianhua Wu serves as Chairman and CEO.
NEWS & DEALS
China MediaExpress Adding 774 Buses to its Network
China MediaExpress (NASDAQ GS: CCME) has signed three new long-term agreements that will add 774 express buses to its network. These include exclusive rights to supply entertainment programming and paid advertising for: 623 inter-city express buses originating from Henan Province for five years, 101 airport express buses originating from the Chengdu Shuangliu International Airport in Sichuan Province for four years, and 50 airport express buses originating from the Shijiazhuang Zhengding International Airport in Hebei province for three years. China MediaExpress operates a television advertising network on 23,400 express buses originating in seventeen of China’s major regions, including Beijing, Guangdong, Shanghai, and Sichuan. Mr. Zheng Cheng serves as CEO.
China Biologic to Acquire Remaining Ownership in Guiyang Dalin
Tai-an-based China Biologic Products, Inc. (NASDAQ: CMBO) has announced that its wholly-owned PRC subsidiary, Logic Management Consulting (China) Co., Ltd. , has agreed to acquire the remaining 10 percent ownership in Guiyang Dalin Biologic Technologies Co., Ltd.. The shares will be purchased from Mr. Shaowen Fan for a purchase price of approximately $7,530,120. Logic China already owns a 90 percent majority interest in Dalin. Following the acquisition, Dalin will become a wholly-owned subsidiary of Logic China. Dalin is the largest shareholder of Qianfeng Biological Products Co., Ltd., one of the largest plasma-based biopharmaceutical companies in China. China Biologic Products is a plasma-based biopharmaceutical company. Mr. Chao Ming Zhao serves as CEO.
Bernstein & Pinchuk Partners with Marcum
Bernstein & Pinchuk LLP’s China practice has officially merged with Marcum LLP’s China practice. Drew Bernstein noted this is not a merger of the two firms, just their China practices. “It’s more of a partnership,” he said. The partnership is a win-win. Bernstein & Pinchuk is well-known in the sector of Chinese companies trading on the U.S. markets (Bernstein himself on the ground often in Asia and a regular speaker on the conference network), but is still relatively small. Marcum brings the Middle Market reputation and, with that, a larger pool of talent, but only has a small footprint in China. The partnership better positions both firms to meet the growing demand from investors for top-shelf accounting firms, which know the market. In addition, Bernstein believes it will better allow them to compete against the Big Four firms, particularly as the door has opened for Chinese companies to IPO directly to Nasdaq and NYSE.
The new firm is called Marcum Bernstein & Pinchuk LLP. Bernstein & Pinchuk LLP officially withdrew its independent membership with the BDO Seidman Alliance Dec. 15. The new firm will service China-based, publicly traded companies as well as China-based companies transitioning to U.S. stock exchanges. With offices in Beijing, Guanzhou, Hangzhou and Hong Kong, Marcum Bernstein & Pinchuk will have more than 75 professionals. Bernstein & Pinchuk had a rocky 2010. Bernstein was on the board of Orient Paper (ONP) when short-seller Muddy Waters challenged its financials, with BDO serving as the auditor. In addition, investors began to question the “BDO” network in general with the pivotal point being that not all BDO affiliated firms have oversight from the PCAOB. China Shuangji Cement (OTC BB: CSGA) signed on as a Bernstein & Pinchuk client in early January.
CFO Resigns from Simcere Pharmaceutical
Simcere Pharmaceutical Group (NYSE: SCR) announced the resignation of CFO Mr. Frank Zhao for personal reasons, effective January 15, 2011. Simcere’s board of directors has appointed Mr. Yushan Wan, Simcere’s corporate controller, as acting CFO. Mr. Yushan Wan joined Simcere in 2000 and has been serving as the company’s corporate controller since 2007. Mr. Wan has a bachelor’s degree in biochemistry and a master’s degree in accounting from Nanjing University. He is a certified public accountant in China. Simcere Pharmaceutical Group is a pharmaceutical company specializing in the development, manufacturing, and marketing of branded and proprietary pharmaceuticals in China. Mr. Jinsheng Ren serves as chairman and CEO.
Global Sources Appoints COO
Hong Kong-based Global Sources Ltd. (NASDAQ: GSOL) appointed Peter Zapf, 42, as chief operating officer on January 5. Zapf had previously served as deputy COO since January 1, 2010. Craig Pepples, who has been COO since 1999, is shifting to focus on the China Business Group, which is focused on making Global Sources a market leader in China management media. Mr. Zapf holds a B.S. in electrical engineering and engineering and public policy from Carnegie Mellon University, an M.S. in computer science from Troy State University, and an M.B.A. from Thunderbird, the American Graduate School of International Management. He previously worked for United States Air Force, Bear Stearns, and Hong Kong-based AsiaCommerce. Global Sources is a leading business-to-business media company and a primary facilitator of trade with greater China. Mr. Merle A. Hinrichs serves as chairman and CEO.
China Recycling Appoints Chong
Xi’an-based China Recycling Energy Corp. (NASDAQ: CREG) has appointed David Chong as its CFO and secretary on January 6. The company’s previous CFO and secretary, Tony Peng, resigned effective December 30, 2010. Mr. Chong has over 20 years working experience in medium to large private and publicly listed manufacturing companies. From 2007 – 2010, Mr. Chong was the CFO for Guangdong Yan Zhi Hong Shoes Manufacturing Co., Ltd., a shoe manufacturer in China. China Recycling Energy Corp. is an industrial waste-to-energy solution provider in China. Mr. Guohua Ku serves as chairman and CEO.
“China Fortunes” by John Kuhns [Fiction]
Investment banker John D. Kuhns, of Kuhns Brothers, has published “China Fortunes: A Tale of Business in the New World,” a fictional story based on his 25 years of doing business in China working in the energy sector. The setting for the beginning of the book is 1984, with the main character, Jack Davis, finding himself bridging the business cultures between the “greed is good” Wall Street motto and “wild east” of the nascent free market business sector in China. The book is published by John Wiley & Sons. An investor in Chinese companies, Kuhns also serves as Chairman of CEO of China Hydroelectric Corp. (NYSE: CHC).
Lessons in Communication: A Study of the Integration of Western Business Philosophy and Chinese Culture, Douglas P. Menelly
In his book “Lessons in Communications,” Investor relations professional Douglas Menelly emphasizes the need of Western business people to better understand the culture of China to be successful in the country. He illustrates his points by outlining successes and failures of several dozen foreigners in China as they navigate the emerging business landscape. Menelly is the vice president of Investor Relations for electronics company SinoHub, Inc. (NYSE: SIHI) and a student at the EMBA Gobal-Asia Program at Columbia University, studying at Hong Kong University and London School of Economics. Menelly lives in Shenzhen, with his wife LiMei. They are expecting their first baby, Eva Ling, this week.