Gib Cap Group Inc (GIBX)

[Kevin40]

Looks like Chinese Government itself has 40% stake in Xinhua C & D. This might get interesting now...

http://www.secinfo.com/d12Ddz.z28.b.htm#1stPage

Xinhua C & D is the operating entity that had been the distribution arm of the
Chinese government's Xinhua Bookstores. It holds the only nationwide wholesale
distribution license in China. This Beijing based wholesale book business that
distributes to Chinese retailers has now been spun-out and privatized. Xinhua
China has acquired a 57.67 percent interest. The new operating subsidiary will
begin operations effective February 1, 2005 with registered capital of RMB(Y)300
million, or approximately US$ 36.2 million. The Chinese government has estimated
2004 distribution revenues at about $US100 million, with pretax income of more
than $US 7 million.

The Chinese Government is a strategic partner retaining a 40 percent interest in
Xinhua C & D through its Xinhua Bookstore Head Office. Xinhua China expects this
strong relationship will help to expedite approvals required to import foreign
publications that meet with Chinese government content approval for distribution
in China. The remaining ownership interest of China C & D is held by seven
domestic Chinese publishing companies including the People's Publishing House.

"We have completed this acquisition within the time frame we discussed in
previous statements," said Mr. Xian Ping Wang, President and CEO of Xinhua
China. "This acquisition provides us with access to one of the most vibrant
businesses in the People's Republic of China. The non-textbook segment of the
Chinese retail market for books is large, estimated at about $1.6 billion, and
has the potential to become significantly larger.

"China joined the World Trade Organization in December of 2001 and agreed to
open its book distribution market within three years. Xinhua C & D is one result
of that promise. This provides Xinhua China a solid base from which to pursue
additional opportunities including the distribution of additional domestic and
imported books in China."

Mr. Wang further noted "Book consumption in China was reportedly valued at the
equivalent of only $US 3.86 per capita. In comparison, per capita spending on
book consumption in the United States is reportedly valued at $93.00. Obviously,
there exists a tremendous opportunity and we are particularly well positioned to
develop it. There are several ways to do that. There are only about 150,000
titles currently approved for sale in China compared to over four million for
some major distributors in the US. We believe that as China's standards of
living continue to rise, literacy rates stay high, and the number of approved
titles both domestically and in foreign languages increases, the per capita
consumption will rise dramatically".

"Secondly, with the opening of the market to competition, including competition
from those outside China, the Chinese government recognized the need to instill