Kemiao Garment Hldg Group (KMGH)

[gje2]

Happy Holidays! ...

So...I'm back (for a short while)

I've just spent the last 2 months roaming around China, and I must say, I love it! Of course I took the opportunity to pop by Xinyang to visit our friends at AIV...

Xinyang itself is pretty neat. It's not a 'city' according to Chinese standards, but by our standards it certainly is...with a central population of around 2 million, and 6 million in the greater area. One thing it's not is a mecca for tourism by any stretch of the imagination. I did not encounter a single other foreigner, or much English, while I was there.

As I dive in, and try to understand China, it now makes sense to me why AIV has elected to re-locate from Guangdong. It is a trend of moving inward from the originally established economic zones, where labor has become expensive, and the dynamics of the economies are shifting. Many multi-nationals are doing the exact same thing.

Anyhow, AIV is alive and well, and I had a chance to meet the CFO, Shi Yilin. He was very friendly, and despite the obvious glacial pace of the conversation, very interesting. Upon leaving he presented me with the Antec speaker I mentioned a while back.

Most of the numbers we talk about on the board (Crusader is right on the money) are in-line with what was discussed, from revenues to investment amounts...same as have been published in the news. A few ideas have circulated, and there was mention that management was courted with the idea of moving to the HK exchange, but Guo was not interested. He remains confident in his company and is apparently determined to revisit the US listing in the future with hopes of successfully moving up the chain. There is no rush however, so I wouldn't count on it being in the next couple of quarters. They are currently up to their eyeballs moving, building and expanding. Apparently the local government is keenly (emphasized) interested in supporting this company, which helps AIV in many ways, one of which is securing their financing. The current goal is cooperation with CPT (the Taiwan company, as published) and a major Chinese company to produce OLED phones, tablets and computers. LG is not currently involved.

On a closing note, he also said he was more than willing to setup an annual or even semi-annual conference call with shareholders to update them.

Of course this is all through rough translation, and it being my first time sitting with a CFO asking these types of questions...so take everything I write with a grain of salt.

So there you go...The company is real, and quite friendly. They are also not a typical penny-stock who require immediate access to capital...so it would be ill-advised to think of them that way. There is still risk, since they could change their minds, or the plan could fail, but personally, I am fairly confident in my investment. One day, who knows when, I expect to be rewarded.