China Forward Ventures

China Forward is focused on identifying, executing and leading direct growth investments in central China area in established small-cap companies that can satisfy a majority of the following criteria, although, from time to time, China Forward will participate as a co-investor in larger transactions originated by China Forward or a third-party investor:

Geography:	Central China Area in mainland China
Sales:	$2 - $50 million
Equity Investment:	$1 - $5 million per transaction (minority investments preferred)
Management:	China Forward can assist existing management where necessary. Management ideally will have a significant equity interest post-closing; prefer direct dialogue with senior management rather than with third party.
Targeted Sectors:	Manufacturing Industry: Companies with established product lines and intellectual property rights wanting to expand their reach nationally or internationally Pharmaceutical Industry: Pharmaceutical/Medical equipment companies with established product lines wanting to expand their reach nationally, or to source technology internationally Financial Services: Companies with strong banking or government connection
Excluded Sectors:	Utilities, Oil & Gas Telecom Transportation
Desired Business Variables:	Companies with established products/services Stand-alone, high-growth platforms Potential for highly profitable internal growth Limited significant near-term capital investment Opportunity for significant market share capture
Profitability:	Businesses with solid fundamentals and growth are strongly preferred.
Capital Structure:	Adequate asset base or cash flow to support debt is preferred. Debt will be provided at this moment by China Development Bank and other commercial banks.