Friedland Global Capital assists emerging companies obtain stock market listings to access foreign capital. Their Stock Market Listing Program enables companies in big emerging economies like China, Brazil, Malaysia and Sri Lanka to list in the US, Canada, UK and Germany. They have helped over 12 Chinese companies list, including Biostar Pharmaceuticals which saw revenues increase from $5.7M to $90M after listing. Friedland is currently working with companies in China, Brazil, Malaysia and Sri Lanka to help them access public markets.

1. We’re pleased to provide you with an update regarding Friedland Global Capital’s
current activities and successes on behalf of client companies.
Our Stock Market Listing Program enables companies in Big Emerging Economies to
access foreign capital and obtain a stock market listings in the United States, Australia,
Canada, Singapore, the United Kingdom and Germany, with currently most of our firm’s
current focus is on obtaining stock market listings in the United States, Germany and
Canada.
Friedland Global Capital has been assisting emerging privately-held and publicly-
held (“listed”) companies since 1979, helping them achieve their corporate finance
objectives, and thereby enabling our client companies to achieve their business
objectives. Our firm’s focus is the focus on companies in Big Emerging Economies
(www.BigEmergingEconomies.com)
We established our office in China approximately seven years ago. Our main focus
in China has been and continues to be, enabling privately-held Chinese companies to
become publicly-traded in the U.S. or Canada, and attract foreign capital.
Our Chinese client companies have grown as the Chinese economy has grown, and
our clients’ ability to secure stock market listings have proven to be beneficial to them,
not only in their being able to obtain equity capital, but also in increasing the wealth of
the companies’ shareholders. And, they have also been able to benefit by having more
prestige in the Chinese business and financial community, and with their customers and
suppliers as a publicly-traded company.
We now have approximately 12 employees in our Beijing office. We also have an office
in Singapore to take advantage of companies in the growing Indonesian and Malaysian
economies, and our base of operations for Latin America is based in Panama.
Our program enables entrepreneurial and growing companies to not only become stock
market listings, but more importantly be able to access the public equity markets to
obtain capital for growth, working capital and acquisitions at a higher valuation than is
what is typically available as a private company from venture capital or private equity
sources.
While we continue to assist companies once they are listed in obtaining their financing
objectives and assistance with overseeing the investor relations strategy as well
as corporate governance and regulatory requirements, our objective is that client
companies “outgrow” our firm, with a larger investment bank or institutional investor
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2. replacing our roles. This has been the case with most of our client companies.
Chinese Companies
Four of our recent Chinese company successes in China are Biostar Pharmaceuticals
Inc., China Power Equipment Inc., Asia Carbon Industries and China Industrial Steel.
With these successes, we are now proceeding with two other Chinese companies,
China Chanfang Pharmaceuticals Inc., and China Titanium Inc.
Biostar Pharmaceuticals Inc.
Biostar Pharmaceuticals, Inc.develops, manufactures and markets pharmaceutical and
health supplement products for a variety of diseases and conditions. The Company's
most popular product is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter
("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the
Chinese population.
Before we started our process with Biostar Pharmaceuticals, the company’s revenues in
2006 were $5.745 million. The company has grown substantially due as a large extent
to the availability of equity financing as a public company.
The company’s revenues, for the 12 months ended June 30, 2011, were $90 million
with a net income of $16.42 million. For the quarter ended September 30, 2011 the
company’s revenues were $24,779,420 with net income of $4.463 million.
The result of the company becoming publicly-listed as well as the access to capital,
enabled the company to increase its revenues seventeen fold, from under $6 million to
approximately $100 million this year.
The Friedland Capital process not only enabled the company to obtain a stock market
listing in the US, but through pre-listing private placements as well as financings once
the company became publicly-traded in the U.S., obtain close to $10 million in equity
capital. The company was also able to upgrade its U.S. listing from the OTC BB/QB to
Nasdaq.
China Power Equipment
China Power Equipment, Inc., is a U.S. corporation, which through its wholly-owned
subsidiary, An Sen ( Xi'an ) Power Science & Technology Co., Ltd., and its affiliated
operating company, Xi'an Amorphous Alloy Zhongxi Transformer Co., Ltd., designs,
manufactures, and distributes amorphous alloy transformer cores and amorphous
alloy core distribution transformers in China. The company currently manufactures
59 different products, primarily amorphous alloy cores and amorphous alloy core
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3. transformers.
Before we started our process with China Power Equipment, the company’s revenues
were approximately $3 million. This company also has benefited significantly from
access to capital as a public company. China Power Equipment’s revenues in 2009
were $24 million with net income of $4.2 million.
For the nine months ended September 30, 2011, the company’s revenues were $27.7
million with net income of $4.5 million.
The company’s ability to grow nine-fold was to a large extent due to being able to raise
capital as a public company, and the company was able to raise approximately $9
million as a public company.
Asia Carbon Industries Inc.
Asia Carbon Industries Inc. is an emerging, China -based producer of a series of high
quality carbon black products under the brand name "Great Double Star." The Company
was established in 2003 in Shanxi, China 's highest coal producing province. Asia
Carbon is one of the top ten carbon black producers in the province and has established
relationships with a high-profile customer base. The company iss currently in the
process of expanding its manufacturing capacity to meet the anticipated demand.
Asia Carbon Industries was recently introduced to U.S. investors and the financial
community with a road show in September of 2011, in a market environment that
continues to be problematic for Chinese companies listed outside of China, including
the United States.
The company’s revenues for 2009 were $29 million with net income of $2.1 million.
Revenues for the third quarter of 2011 increased 62% to $10,997,216 million in 2011
from $6,788,372 million for the same period in 2010.
The company’s gross profit doubled to $2.6 million in the third quarter of 2011 from $1.3
million for the same period in 2010.
Net income for the quarter ended September 30, 2011 increased 87% to $1,527,662 in
2011 from $816,145 for the same period in 2010.
Earnings per share were at $0.03 for the three months ended September 30, 2011,
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4. compared to $0.02 for the same period in 2010.
Asia Carbon Industries current has a placement agent agreement with a U.S. based
investment banking firm, with the objectives of raising approximately $20 million. These
funds will be utilized to expand production capacity.
China Industrial Steel
China Industrial Steel, Inc. through its wholly owned subsidiary, Handan Hongri
Metallurgy Co., Ltd., produces and sells steel plate and steel bar for domestic and
export customers. The Company currently operates four production lines from its
headquarters on approximately 1,000 acres in Handan City in Hebei Province, China,
where steel production is a significant component of the regional economy. CIS’
business model relies on a lean infrastructure with a strong focus on production.
Functions outside of manufacturing are outsourced to third parties, including related
parties, enabling CIS to remain profitable in a highly competitive market.
The registration statement for China Industrial Steel Inc. was declared effective by the
U.S. Securities and Exchange Commission on September 28, 2011. It is expected that
the company’s shares will begin trading in the first quarter of 2012.
The company’s revenues for the nine months ended September 30, 2011 were
$605,634,960 with net income of $26,191,932. For 2010, for the same period the
revenues were $346,555,014 with net income of $15,805,442.
China Chanfang Pharmaceuticals Inc.
China Chanfang Pharmaceuticals, Inc. is in the process of completing the legal
transaction which will result in its wholly owned subsidiary, Guangxi Chanfang
Pharmaceuticals Co., Ltd. becoming a wholly-owned subsidiary of China Chanfang
Pharmaceuticals.
The Company’s primary business consists of production and sales of traditional
Chinese medicines (“TCM”), the cultivation of herbs, and drug research and
development. The Company has 36 drug approval numbers (20 of 36 are currently
being manufactured, and
20 are reserved by the Company) with China’s State Food and Drug Administration
(“SFDA”) for future use. The Company also has approval numbers for three health care
products that have been issued by the SFDA.
The company is in the process of completing its pre-listing private placement and it is
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5. anticipated that the company will proceed with its stock market listing in Canada during
the first quarter of 2012, followed by a dual stock market listing in the United States.
China Titanium Inc.
China Titanium Ltd., is a holding company that, upon the completion of the corporate
restructuring, intends to own China based Shanxi Zhuofeng Titanium Co.
The company's main product is the processing of titanium sponge.
Currently the company is in the process of preparing its financial statements, with the
next step being the completion of the corporate structure as well as the obtaining of pre-
listing private placement funds.
The company will go public in Canada, and then obtain a dual stock market listing in the
United States.
Brazilian Companies
Brazil Intermedia Inc.
Brazil Intermedia Inc.is Friedland Global Capital’s first client company in Brazil.
Brazil Intermedia Inc., through its wholly owned Brazilian subsidiary, Interpool
Consultoría e Participações S.A., combines live television broadcasts with a telecom
component to create interactive programing for the Brazilian marketplace.
The company is producing and broadcasting two programs; Quiz Cultural, a multi-
media game show, and Jockey Club which enables viewers to win prizes based on the
outcome of regional horse races.
Quiz Cultural requires viewers to call a dedicated number and answer a series of
questions via telephone to earn the chance to answer a single question on a live
television show, and win money and prizes. The show was first broadcast in partnership
with MTV
Brasil.
Jockey Club is a game based on specific horse races run at Hipodromo do Taruma in
Curitiba, one of Brazil’s four race tracks.
Brazil Intermedia is currently completing its pre-listing private placement. The
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6. company’s plan is to file a registration statement with the U.S. Securities and Exchange
Commission during the beginnning of the second quarter of 2012, with the objective
being the company’s shares becoming publicly-listed in the United States..
Other Companies in Brazil
Currently we’re in advanced discussions with several other Brazilian companies, with
the intent of commencing our program for our second Brazilian company during the first
quarter of 2012.
Malaysia
We are currently in discussions with a seafood processor and fishing boat operator in
Malaysia.
Sri Lanka
We are in advanced stages with a petroleum exploration company. A decision as to
whether to proceed is anticipated to be made by mid-December 2011.
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