China Energy Corp. (fka CHGY)

[realfast95]

Investor notes from the San Diego roadshow lunch
from nuoninuo on YMB and IV

Some info from the management team 18-Mar-11 08:42 pm
So, I'm back from the group lunch. CEO, Mr. Ding, CFO, Mr. Gong, Financial Manager, Ms Wang,and Mr Ding's son were all there. Mr. Ted Haberfield said that CHGY is going to give a conference call 2 or 3 weeks later after the completion of their road show in the US. Mr Ding would also like me to spread the word that the company has the intention of buying back some shares from the floating market in the near future since the pps is extremely undervalued at this stage.

Here are some answers to some of the questions asked here:
1 All the numbers from their financial reports sent to the SEC are the same as those presented in the SAT, SAIC and all other kinds of financial documents filed in China. SAC is more meaningful than SAIC and the numbers from SAC are the bases for the calculation of TAX they pay to the Chinese government. The company is honest and intends to remain that way.

2 Listing to one of the major boards is still in process. SEC wouldn't give any information regarding the progress as they treat other applicants in the same way. They are going to meet personnel in New York that are connected to the listing procedure. They may very well let us shareholders know the update if they have anything new coming in.

3 Talking about acquisition of other coal mines, due to the increased asking price of coal mines in the market and the unreasonable low pps at this stage, they are still looking for/negotiating for potential acquisition targets.

4 A few people asked about whether they would like to sell the heating/electricity division. The truth is that heating and power divisions are benefited from government subsidies to compensate for lower government-regulated heat price and higher cost of coal as explained in 10K. They are actually making money from heating/thermoelectricity section. The profit margin is about 16%, lower than the 66% in coal mining and 22% in coal trading.

5 The coal price is decided by the demand/supply situation in the market, not fixed by government. All in all, they expect a even better year in 2011.

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=68182&tid=2851&mid=2851&tof=2&frt=1

Follow up from nuoninuo on IV


Re: Some info from the management team.....
I'll wait to ask them whether they would like to release share buyback intention/plan just before the conference call in 2 or 3 weeks. If they do, I would like them to address the issue for the c.c. Mr. Ding told me that they were going to buy back shares himself and asked for confidence from us shareholders.

In general, I have the confidence in the company. They are honest. They didn't try to mislead us just to gain temporary advantage. Their business is solid and straightforward. The coal price is going up. The company's income is going up steady and they are looking for acquisition opportunities for further development. I think it's a safe investment.