Flexpower Inc. (FLXP): Another incentive for the growth you're...

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breezin_chs

Re: stockpicker post# 77401

Sunday, 12/02/2007 6:50:29 PM

Sunday, December 02, 2007 6:50:29 PM

Another incentive for the growth you're describing: Government subsidies and preferential policies.

What timing for Haorizi/Good Life (understatement).

As mentioned (probably too briefly), China's Commerce Minister has initiated a policy to help the rural provinces catch up to the gains of the cities on the east coast, Beijing, Shanghai, etc. in a Universal Rural Retailing Network.

Objective: "Ten thousand villages thousand townships."

How's this for a clear business plan?

"We will strive for establishing standard farmers’ shops in 50% of the villages and 70% of towns nationwide within 3 years."

"We will strive to establish another 100,000 farmers’ shops within the year, raise the percentage of counties with experimental shops in the eastern regions from 30% to 60%, from 20% to 60% in the central and western regions, and in areas with good conditions to 100%. Our target is to set up standard farmers’ shops in 65% of the villages, and 5% of the towns by the end of the 11th Five Year Plan period."

"... the rural market has a huge potential and demand from farmers is to be explored. China has a rural population of 900 million, and the rural market consumption is playing an increasingly important role for the expansion of domestic demand."

"... sales volume usually rises by 2 to 8 folds after the transformation of traditional family shops to chain stores."

http://boxilai2.mofcom.gov.cn/aarticle/speeches/200605/20060502320015.html