2. EXECUTIVE SUMMARY
THE CIIC BUSINESS AND INVESTMENT PROPOSAL IS BASED ON EXISTING, ESTABLISHED OPERATIONS AS WELL AS ON ALREADY OPERATING START-UPS IN THE SEED CAPITAL PHASE AND ADDITIONALLY ON START-UPS IN THE PLANNING PHASE. ESTABLISHED OPERATIONS ARE TO BENEFIT FROM AN INCREASE IN BUSINESS VOLUME AND ENHANCED PERSPECTIVES WHILE THE START-UPS ARE SECURED BY THE EXISTING INFRASTRUCTURE AND MANAGEMENT EXPERTISE ALLOWING A CONTROLLED DEVELOPMENT WHILE PERFORMANCE IS BEING GEARED TOWARD MAXIMUM RETURNS.
2.1. ESTABLISHED OPERATIONS.
CIIC IS RUNNING A 500 SQM OFFICE IN BEIJING WITH SOME 15 PEOPLE, WORKING ON CONSULTING SERVICES, TECHNOLOGY TRANSFERS AND THE MANAGEMENT OF EXISTING AS WELL AS THE PREPARATION OF NEW START-UPS.
CONSULTING SERVICES ARE BEING OFFERED ON VARIOUS LEVELS FROM MARKET ENTRY INFORMATION SERVICES TO PROJECT MANAGEMENT, TECHNOLOGY TRANSFERS AND COMPANY SET-UPS. TOTAL REVENUE FROM THIS ACTIVITY IS GENERATING SOME 5 MILLION RMB DURING THE RUNNING YEAR, COVERING EXPENSE OF ALL OPERATIONS AND LEAVING A PROFIT AFTER TAX OF AROUND 50%. PROFITS ARE BEING REINVESTED AS SEED CAPITAL INTO THE START-UPS OPED AND LASERLAND AND USED TO BROADEN THE BUSINESS PLATFORM AT THE COMPANY¡¯S AGENCY LEVEL.
CIIC AS A COMPREHENSIVE BUSINESS SERVICE PROVIDER HAS AMPLE GROWTH PERSPECTIVES, BASED ON AN ESTABLISHED BUSINESS NETWORK IN GOVERNMENT AND PRIVATE CIRCLES ALIKE. THREE SECTORS HAVE BEEN EARMARKED FOR FURTHER BUSINESS DEVELOPMENT. FOR EACH SECTOR AN INDEPENDENT AGENCY IN FORM OF A LLC IS TO BE FORMED:
2.2. AGENCIES.
TRADING, PROPERTY CONSULTING AND EVENT MANAGEMENT SHALL BE FORMALIZED IN SEPARATE SUBSIDIARIES, EACH CAPITALIZED WITH ONE MILLION EURO DIVIDABLE SHARES.
THE TRADING COMPANY SHALL OPERATE THE ITCN INTERNATIONAL TRADE COOPERATION NETWORK PROGRAM AS WELL AS MAKING USE OF A VARIETY OF TRADING AND IMPORT-EXPORT OPPORTUNITIES OCCURRING AS A BYE-PRODUCT OF CHINATRACK CONSULTING CLIENT¡¯S OPERATIONS IN A VARIETY OF INDUSTRIES, CONVENTIONAL AND HIGH TECH ALIKE.
THE ITCN PROGRAM OFFERS NEW-COMERS TO THE CHINESE MARKET AN UNIQUE OPPORTUNITY TO TEST THE MARKET WITH THEIR PRODUCTS ALMOST RISK FREE. IT OPERATES AS FOLLOWS: AGAINST A HANDLING FEE CHINATRACK PREPARES A PRODUCT INTRODUCTION AND MAKES USE OF THE EXISTING MARKETING NETWORK SO AS TO TEST THE BASIC CHANCES FOR A GIVEN PRODUCT. IF NEGATIVE, THE CLIENT IS INFORMED AND NO FURTHER CHARGES OCCUR. IF POSITIVE, A DETAILED RECOMMENDATION FOR A SALES STRATEGY IS PRESENTED AND AN OFFER FOR SALES REPRESENTATION NEGOTIATED. SALES AT PRESENT AMOUNT TO AROUND RMB 10 MILLION WITH A PROFIT MARGIN OF ABOUT NET NET 5%. SALES ARE CONDUCTED VIA A THIRD COMPANY WHICH SUBSTANTIALLY DIMINISHES MARGINS, WHICH CAN BE INCREASED TO A HEALTHY 15% NET WITH THE SET-UP OF A FULLY OWNED TRADE VEHICLE. TURNOVER IS PROJECTED TO GROW AT UPPER DOUBLE DIGIT MARGINS WITH NECESSARY INVESTMENT MAKING URGENTLY NEEDED RESOURCES FOR STAFF AND PROMOTION AVAILABLE.
THE PROPERTY CONSULTING AGENCY IS CONCENTRATING ON REAL-ESTATE INVESTMENT OPPORTUNITIES, FOCUSING ON THE BEIJING MARKET. EXCELLENT CONNECTIONS WITHIN THE BEIJING CITY GOVERNMENT PROVIDE ACCESS TO INVESTMENT OPPORTUNITIES ESPECIALLY DURING THE RUN-UP TO THE ¡¯08 OLYMPICS. THE AGENCY SHALL BE DEVOTED TO ADVICE ON INDIVIDUAL DEVELOPMENT PROJECTS ON A FEE BASIS AND MOREOVER TO THE PREPARATION OF A REAL ESTATE INVESTMENT TRUST, WHICH SHALL BE DESIGNED AS A SEPARATE INVESTMENT VEHICLE WITHIN THE FIRST YEAR OF OPERATIONS. NO PROJECTIONS ARE GIVEN HERE FOR REVENUE FROM SUCH OPERATIONS WHICH MIGHT WELL DWARF PROFITS FROM OTHER ACTIVITIES DURING THE CAPITAL¡¯S ONGOING INFRASTRUCTURE AND REAL ESTATE INVESTMENT BOOM.
THE EVENT AGENCY STAR EVENTS IS TO BRING HIGHLIGHTS OF INTERNATIONAL ART AND CULTURE WITH A SPECIAL EMPHASIS ON POP AND CLASSICAL MUSIC STARS TO THE CHINESE MARKET, WHICH HAS BEEN DEPRIVED SINCE LONG OF SUCH OPPORTUNITIES AND IS LITERALLY HUNGRY TO FILL UP ON IT. THE AGENCY¡¯S MANAGING DIRECTOR HAS BEEN ORGANIZING INTERNATIONAL CONCERT TOURS SINCE OVER 15 YEARS AS PRODUCTION MANAGER AND COMMANDS THE NECESSARY CONNECTIONS AND TRUST WITHIN THE RESPECTIVE SOCIETY TO INTRODUCE ORGANIZING RIGHTS FOR THE CHINESE MARKET TO STAR EVENTS. ¨C AGAIN, NO FORECASTS ARE GIVEN FOR FINANCIAL RETURNS, WHICH LIE IN THE SIX DIGIT USD REGION PER LARGE SCALE EVENT.
2.3. CIIC INCUBATOR.
FROM EXISTING CHINATRACK CLIENTS, THREE COMPANIES HAVE BEEN SELECTED TO SET-UP START-UPS IN THE CHINESE MARKET: A MEDICAL EQUIPMENT BUSINESS WITH PROPRIETARY KNOW-HOW IN ORTHOPEDICS, AN ENGINEERING COMPANY WITH PATENTS IN INDUSTRIAL WASTE WATER TREATMENT AND A MULTIMEDIA COMPANY WITH CONSISTENT TECHNICAL ADVANTAGE IN LASER ANIMATION. INDIVIDUAL PROPOSAL¡¯S FOR ALL THREE ARE ATTACHED TO THIS SUMMARY, WHICH ONLY PROVIDES BASIC INFORMATION AND PERSPECTIVES.