3 OF 3 China IPO files

Pre-IPO analysis, grading & scoring

. Business Model Rating Criteria

A = high growth market, potential leader; B = more competitive market; C= 'public venture capital'

. Calculations

. IPO Price to annualized Sales Ratio -- (Price / Sales)

Numerator

Denominator

IPO market capitalization…

Annualized Sales (based on recent results)

(post-IPO # of shares times mid-point of IPO price range)

. IPO Price to annualized Earnings (loss) -- (Price / Earnings)

Numerator

Denominator

IPO market cap

Annualized Earnings (loss) from the last quarter

===================

SEARCH BY COMPANY

In your browser use 'Edit/Find' to search for companies

or ticker for analysis

below

===================

Qiao Xing-Mobile (QXM)

Mobile handsets: C+, 7

May 2, 2007 @ $12

Tongjitang ChiMed (TCM)

modernized trad Chinese medicine: C+, 8

March 15, 2007 @ $10

Xinhua Finance (XFML)

Chinese media company: B-, 8

March 8, 2007 @ $13

3SBio Inc. (SSRX)

Chinese biotech: C+, 7

Feb 6, 2007, @ $16

JA Solar (JASO)

China-based solar cells mfg: C, 7

Feb 6, 2007 @ $15.00

Solarfun Power (SOLF)

solar cells and modules: C+, 7

Dec 20, 2006 @ $12.50

Fuwei Films (FFHL)

plastic film for various markets: C+, 6

Dec 18, 2006 @ $8.28

Melco Entertnmnt (MPEL)

casino gaming/entertainment in Macau: B-, 8

Dec 18, 2006 @ $19

Trina Solar Ltd (TSL)

soilar power modules: C+, 7

Dec 18,, 2007 @ $18.50

===================

Pre-IPO analysis, grading & scoring

Qiao Xing-Mobile Com

QXM, C+, 7

Mobile handsets

Post-IPO shrs: 52.5m

Beijing, China

2004

2005

2006

IPO Mkt

Rev ($mm)

$225

Cap (mm)

Gross margin %

12%

18%

27%

$683

Operating profit margin %

7%

15%

21%

@$13

Profit (loss)

$37

Profit (loss) %

0.0%

12.4%

16.4%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Qiao Xing-Mobile (QXM)

$683

3.0

18

2.9

2.7

32%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

2

1

7

China's tax laws

. On March 16, 2007, the Enterprise Income Tax Law of the PRC, or the New Tax Law, was

promulgated. Under the New Tax Law, which will become effective on January 1, 2008, domestic

enterprises and foreign investment enterprises will be subject to a

. Unified enterprise income tax rate of 25%, except that enterprises that were approved to be

established prior to March 16, 2007 may continue to enjoy the existing preferential tax treatments

until December 31, 2012. Details of the 5-year transitional period arrangement (i.e. from January

1, 2008 to December 31, 2012) for enterprises approved to be established prior to March 16, 2007

are expected to be set out in more detailed implementation rules to be adopted in the future.

. In addition, certain qualifying high-technology enterprises may still benefit from a preferential

tax rate of 15% under the New Tax Law.

Business

. One of the leading domestic manufacturers of mobile handsets in China in terms of unit sales

volume.

. Manufactures and sell mobile handsets based primarily on GSM global cellular technologies.

Changing sales mix

. In 2006, 42.8% of total handset revenue was derived from sale of handsets produced at the

Huizhou facility, 56.3% from those produced through EMS (Electronic Message Service)

arrangements and 0.9% from those sourced from original design manufacturers, or ODMs.

. Expects to reduce reliance on EMS (Electronic Message Service) providers and lower product

costs once the new facility in Huizhou commences operation in the second half of 2007

Prior to 2004

. Prior to 2004, the substantial majority of our revenue was derived from selling handset products

sourced from ODMs under the "CECT" brand name.

. Over the last two years, GXM has gradually increased in-house design and manufacturing

capabilities.

Sales

. Sells products primarily to national and provincial distributors, which resell products to end

customers in mainland China through their own distribution networks principally composed of

local distributors and retail outlets.

. All products are currently sold under the "CECT" brand name.

Competition

. While China's mobile handset market is expected to grow significantly, competition is intense

. The market has become highly fragmented in recent years as an increasing number of handset

producers have entered the market.

. Based on MII data, there are currently over 60 mobile handset manufacturers in China.

. QXM focus's on developing and marketing differentiated products for the Chinese handset

market.

. This strategy,according to QXM, has allowed the company to maintain market position while

avoiding direct competition with mass market competitive products.

Shareholders

. Pre-Ipo Qiao Xing Universal Telephone (XING). owns 80.5%.

. Qiao Xing Universal Telephone, Inc. engages in the manufacture and distribution of

telecommunications products in the People's Republic China.

. XING's market cap was $413mm April 26, 2007, but it is not a fully SEC-reporting comany

. Pre-IPO 19.5% held by two funds

Use of $134mm in IPO proceeds from sale of 12.5mm shares

(shareholders intend to sell 4.16mm shares)

o $44 million to repay shareholder loans to Xing. The shareholder loans from Xing were

unsecured, non-interest bearing and had no fixed repayment terms

o $80 million to make loans or capital contributions to CECT, of which (i) $60 million will be

used to fund working capital requirements in connection with planned capacity expansion and (ii)

$20 million will be used to purchase equipment for new manufacturing facility in Huizhou.

===================

Tongjitang Chinese Med

TCM, C+, 8

modernized trad Chinese medicine

Post-IPO shrs: 33.5mm ADS equivalents

Shenzhen, Guangdong, China

2004

2005

2006

IPO Mkt

Rev ($mm)

$62

Cap (mm)

Gross profit %

46%

59%

67%

$536

Profit (loss) ($mm)

$17.2

@$16

Profit (loss) %

5%

32%

28%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Tongjitang ChiMed TCM

$536

8.6

31

2.9

3.0

30%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

2

2

8

American Depositary Shares, each ADS represents four shares

Tax issues

. Currently, Tongjitang Pharmaceutical is entitled to (a) an exemption from the national enterprise

income tax for 2006 and 2007, and (b) a 7.5% national enterprise income tax rate for 2008, 2009

and 2010.

. After 2010, Tongjitang Pharmaceutical will be subject to a 15.0% tax rate as long as it maintains

its manufacturing FIE status in the Guiyang economic and technological development zone.

Uniform tax rate in process

. However, since China joined the World Trade Organization, or WTO, in November 2001,

preferential tax treatments have been criticized as not being WTO-compliant. On October 4, 2006,

China Securities Daily reported that the State Council of China recently approved a draft bill to

apply a uniform tax rate to both foreign-invested enterprises and domestic enterprises and plans to

submit this draft bill to the National People's Congress, the Chinese legislature, for review and

possible enactment in March 2007.

. According to this report, the uniform tax rates range from 24.0% to 27.0% and there is likely to

be a three to five year transition period for foreign-invested enterprises during which they would

be able to continue to enjoy their existing preferential tax treatments.

. If the uniform tax regime is adopted, then the effective tax rate of Tongjitang Pharmaceutical

could increase significantly

Business

. Specialty pharmaceutical company in China

. Flagship product, Xianling Gubao, is the leading traditional Chinese medicine for the treatment

of osteoporosis in China

. Sales of Xianling Gubao accounted for 68.7%, 66.6% and 77.2% of net revenues in 2004, 2005

and 2006, respectively.

. TCM expects that the sales of Xianling Gubao will continue to comprise a substantial majority of

revenues in the near future.

Xianling Gubao product

Approved in 2002 by the SFDA as both a prescription medicine and an OTC medicine for the

treatment of osteoporosis.

> Hospitals. In 2004, 2005 and 2006, 1,602, 1,982 and 2,257 Chinese hospitals, respectively,

included Xianling Gubao on their lists of approved prescription medicines, or formularies

. Under the PRC Ministry of Health hospital classification system, the best and largest hospitals in

China are designated as "Class 3" hospitals, followed by lower-ranked "Class 2" and "Class 1"

hospitals.

. Of the formulary hospitals for Xianling Gubao, 361 in 2004 and 441 in 2005 were "Class 3"

hospitals, representing 38.7% and 46.6% of all "Class 3" hospitals in China, respectively.

. The number of "Class 3" formulary hospitals for Xianling Gubao increased to 488 in 2006.

> Retail stocking pharmacies

. Since May 2004, has also been marketing Xianling Gubao as an OTC medicine to retail

pharmacies.

. In 2005 and 2006, over 20,000 and 37,000 retail pharmacies in China stocked Xianling Gubao,

> National catalog

. In September 2004, Xianling Gubao was added to the national medicine catalog of the National

Medical Insurance Program, a government-administered medical insurance program, which is the

largest in China.

. As of the end of 2006, the number of participants enrolled in this program was 157.4 million,

according to a statement made on January 18, 2007 by the Ministry of Labor and Social Security,

or the MLSS.

. According to a statement made by the MLSS on February 21, 2006, the Chinese government

intends to expand program enrollment to 300 million by the end of 2010.

Seasonal Variations

Sales of Xianling Gubao are affected by seasonal variations in consumer demand. In most regions

in China, winter starts in the last quarter of each year. The

. Lower temperatures in winter normally result in a higher incidence of pain and other symptoms

associated with osteoporosis, arthritic rheumatism and other bone-related diseases and conditions.

. As a result, hospitals and retail pharmacies typically experience seasonal peaks in demand for

Xianling Gubao in the last quarter of each year.

. Accordingly, hospitals and retail pharmacies begin to stock greater quantities of Xianling Gubao

in September, and the fourth quarter is our peak season for sales.

. In the first quarter, strong winter-season sales are usually offset by the slow-down of businesses

during the Chinese New Year holiday season that effectively lasts more than half a month.

. During this holiday season, many businesses in China, including retail pharmacies and most

departments in hospitals, are either closed or substantially reduce the level of their activities

. Conversely, TCM typically experiences seasonal lows in demand for Xianling Gubao in

summer, affecting sales in the third quarter

Intellectual property

. Owns 17 patents, all of which are registered in the PRC.

. As of December 31, 2006, we owned six invention patents and 11 external design patents. We

also have 15 pending invention patent applications in China

Competition

. According to the 2006 China Pharmaceutical Market Research Report prepared by Compass

International, a Beijing-based research company, in 2005 there were over 1,200 traditional

Chinese medicine manufacturers in China (not including manufacturers of traditional sliced

herbs).

. Of these manufacturers, in 2005, large-sized manufacturers contributed to 27.4% of the total

sales of this sector, compared to 30.3% and 42.3% of sales by small- and medium-sized

manufacturers, respectively, according to the same research report.

> TCM faces competition from other China-based manufacturers of traditional Chinese medicines.

Primary traditional Chinese medicines competing with Xianling Gubao are:

. Qiang Gu (Bone-Strengthening) Capsules, and

. Gu Song Bao Capsules/Granules.

> Qiang Gu Capsules are manufactured by Guizhou Fuhua Pharmaceutical Co., Ltd. and Gu Song

Bao Capsules are manufactured by Beijing Qihuang Pharmaceutical Co., Ltd. Both companies are

PRC domestic pharmaceutical companies.

. In addition, TCM faces competition from manufacturers of western medicine with similar

curative effects, which therefore can be used as substitutes for TCM's traditional Chinese

medicine products.

. The major western medicines that compete with Xianling Gubao include (1) calcium

supplements such as Osteoform, Caltrate and Gai Zhong Gai, (2) hormonal replacement therapies

such as Livial, Premarin, Ipriflavone and Ranoxifene, (3) bisphosphonates such as Fosamax, and

(4) calcitonin derivatives, such as elcatonin.

. Except for Gai Zhong Gai, these western medicines are manufactured by the PRC subsidiaries of

U.S.- or European-based pharmaceutical companies.

. Many of these western medicines, including calcium supplements and bisphosphonates, are also

included in the national and provincial medicine catalogs and therefore purchases of them are

reimbursable to National Insurance Program participants.

> The following sets forth the primary SFDA-approved medicines that compete with TCM's other

principal products:

. Alprazolam (Xanax)

. Zolpidem (Ambien)

. Flunarizine (Sibelium)

Use of $119mm in IPO proceeds

. US$40.0 million to enhance marketing of Xianling Gubao and other products

. US$10.0 million to strengthen the research and development infrastructure and broaden and

commercialize the product pipeline

. balance to fund working capital and for general corporate purposes, which may include product

licensing and strategic acquisitions of businesses, business units

===================

Xinhua Finance Media

XFML, B-, 8

Chinese media company.

Post-IPO ADS equivalents: 68mm

Shanghai, China

2006

IPO Mkt

Rev ($mm)

proforma ====>

$62

Cap (mm)

Operating income %

1%

$888

Profit (loss) ($mm)

($2.2)

@$13

Profit (loss) %

-4%

The unaudited pro forma condensed consolidated statements of operations for the year ended

December 31, 2006 present adjustments as if the acquisitions had been consummated on January

1, 2006., for proforma results see page 11 of the S-1 filed Feb 21, 2007

. XFML's consolidated financial statements are prepared and presented in accordance with United

States generally accepted accounting principles

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Xinhua Finance (XFML)

$888

14.3

-404

2.8

2.8

34%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

3

2

1

8

Compare & contrast-- with international advertising agencies

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

Price

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

March 2

Xinhua Finance (XFML)

$888

14.3

-404

2.8

2.8

Interpublic Grp (IPG)

$5,450

0.9

-151

2.8

-5.5

$12.36

Omnicom Group (OMC)

$17,480

1.5

20

4.5

-5.6

$103.78

Publicis Groupe SA (PUB)

$8,290

1.5

14

n/a

n/a

$45.13

Note: valuation ratios for XFML are closest to IPG

. Same price-to-book value of 2.8

. Looks like XFML mis-stated its price-to-tangible book value ratio

. XFML's comparative price to sales ratios appears quite high

Summary comments:

. A China-based advertising agency with increasing critical mass, could become a leader in the

business and financial media areas, focused on an affluent segment of China's market.

. Right now most revenue (76%) is from advertising agency-related sources

. On a combined basis XFML also generates and markets its own media content, although that

division's revenue doesn't yet make a significant contribution

. Strong, unique agreements to sell advertising space, some exclusively, see 'strategic

partnerships' below

. Consolidated financial statements present in accordance with United States generally accepted

accounting principles (GAAP), which is a good sign for the investment community in the United

States

. Valuation ratios seem high

Business

. Established on November 7, 2005 by the parent, Xinhua Finance Limited. Acquired companies

to build an integrated platform of media products and services

. Outlets reach an estimated 210 million potential television viewers, a potential listening audience

of 33 million people, and the readers of leading magazines and newspapers.

2006 Sources of Revenue

And % of revenues for 2006) plus cost of revenues (% of revenues)

o advertising services, 76.1%--47%

o advertising sales, 11.3%--3.2%

o content production, 11.1%--4.8%

o publishing services, 1.5%--2.4%

Five operating groups

o Advertising

which refers to XFML's advertising agency that creates and places advertising for television, print

media and campus billboards;

o Media production

which refers to the in-house production studios that create and produce a diverse array of high

quality programs, including business, entertainment, educational and animation shows;

o Broadcasting

which refers to the distribution of programming through Inner Mongolia Satellite Television;

production and syndication of the Fortune China series of financial programs, including Fortune

Morning 7 a.m., a popular financial news programs in China; and the production and distribution

of bilingual content for China Radio International's EasyFM stations in Beijing and Shanghai;

o Print

which refers to XFML's exclusive rights to sell advertising for and provide management and

information consulting services to, Money Journal magazine and the Economic Observer

newspaper;

o Research

which refers to XFML's market research group that provides research services on products,

advertisements and markets.

The biggest component is advertising services, 76% of revenues

XFML generates advertising services in several way

o Acts as an advertising agent to place advertisements on certain programs aired by Beijing

Television Station and other television stations, on billboards on some university campuses in

Shanghai and in certain print and electronic media (by the advertising group);

o Designs and produces television, print and billboard advertisements (by the advertising group);

o Markets services, primarily events organization (by the print group, the broadcasting group and

the advertising group);

o Research services (by the research group); and

o Advertising, sponsorship and sponsored programming on Inner Mongolia Satellite Television

and provision of content and advisory services to Shanghai Camera (by the broadcasting group).

Strategic partnerships

> Some of these key contracts have long terms, while others have short terms ranging from one

year to a few years and will need renewal. The longer term contracts, which all expire in 2014 or

later, or have no expiration, include, but are not limited to, the following:

o agreements to provide consulting and advisory services to, offer content to, and be the exclusive

external advertising agent for, Shanghai Camera Media Investment Co., Ltd., or Shanghai Camera,

which has the exclusive rights to sell advertising for and provides most of the content of Inner

Mongolia Satellite Television;

o agreements with Economic Observer Press Office that allow us to have the exclusive rights to

sell advertising for the Economic Observer and to provide management and information

consulting services;

o agreement with the exclusive advertising agent for China Radio International that allow us to

have the exclusive rights to sell advertising for and the right to provide content to its EasyFM

stations in Beijing and Shanghai. We intend to only provide non-news content pursuant to this

agreement; and

o agreement with Money Journal Press Office that allows us to have the exclusive rights to sell

advertising for, and to provide management and information consulting services to, Money

Journal.

> Shorter term contracts, which expire in 2009 or earlier, include, but are not limited to, the

following:

o agreement with Hunan Television Station that allows us to broadcast Fortune Morning 7 a.m. on

Hunan Satellite Television;

o agreement with Dow Jones that allows Money Journal to publish Dow Jones content; and

o agreement with Beijing Television Station's advertising agents that allow us to act as advertising

agent for certain programs.

> XFML's business relies on certain key contracts to which it is not a party. Instead, XFML has

contracts with the companies that in turn have those key contracts with third parties. The contracts

XFML has allow XFML to benefit financially and strategically from its contracting

counterparties' roles in the following key contracts:

o contracts with Shanghai Camera, which has the exclusive rights to sell advertising for and

provides most of the content of Inner Mongolia Satellite Television under a contract it has with

Inner Mongolia Television Station;

o contracts with Beijing Guoguang Guangrong Advertising Co., Ltd., or Guoguang Guangrong,

the exclusive advertising agent for China Radio International's domestic stations, giving XFML

the exclusive rights to sell advertising for and the rights to provide content to the EasyFM radio