NEW CHINA VENTURES Ltd. Trading Symbol: NCVL
The Water Crisis in China
- China has a population of 1.3 billion. Its economy grew at a rapid annual rate of over 9%, and its urbanization growth increased by 10% in 2005. However, according to the Bank of China International ("BOCI"), and various government officials, more than 400 cities and 13 provinces and regions in China currently face a water shortage problem. There are three main drivers that contribute to the current water crisis in China.
Deregulation Creates Opportunities for Investors - China must depend on professional water consultancy companies to provide the products and technical expertise to help solve its critical water and environmental problems, and such companies are looking at strong demand from China for years to come.
Unique Characteristics of the Chinese Water Industry
- Regional Monopoly, No Substitute for Water, Difficulty of Inter-Regional Transfer & Public Market Success
Major Water Consultancy Opportunities in the Future
- Demand for Water Conservancy Construction Works, Demand for Urban Water Supply Facilities & Demand for the Construction of Urban Sewage Facilities
Corporate Background
- New China Ventures Ltd., signed a definitive agreement for a six-month review option to acquire 100% of China Beijing CGW Water Technology Centre ("the Transaction"). In consideration of their share holdings in CGW, the current shareholders of CGW on closing of the transaction will receive RMB200,000 (roughly $25,000) and will receive a further RMB800,000 (roughly $100,000) within one year of the date of the closing of the transaction.CGW was established in 1999 by a group of experienced water management experts in China. CGW engages in various water-related consulting services such as research and development of technologies in urban water supply, water conservation, agricultural irrigation, and sewage treatment, water technology transfers, public awareness of water issues and exploration of water resources. CGW has participated in various major projects in China in alliance with other local and foreign water supply enterprises.
Business Model
- NCVL is organized into two distinct divisions: the Water Equity Division and the Water Consultancy Division |