Thanks for the wefe link.
here are a few comments:
1)Considering the huge domestic demand for probiotics and CHBT's clear price and quality advantages over imported products, its bulk additives business seems to have ample room to grow to me for years:
China-Biotics estimates that domestic demand for probiotics as bulk additives is around 10,000 tons/year. Again, that demand is mostly met by imports currently. China-Biotics has finished constructing a new state of the art facility in Qingpu with production capacity of 150 tons/year of bulk additives. That facility has already ramped up to a run rate of 60 tons/year as of the end of June, and is expected to reach 100 ton/year run rate by the end of March 2011. Construction has already begun on Phase II of the facility, which will add an additional 150 tons/year capacity, which will begin to come on-line in the beginning of 2011. When Phase I and Phase II are both at full capacity, they will be capable of producing 300 tons/year.
2) re. the SAIC/SEC issue: I am just asking to get more unbiased info on the charge. I personally think there's not much to that charge. It's probably comparing apples with oranges as CHBT may be required to report different portions/aspects of its rev to the 2 organisations. IMO POPE has invested 25MM in Dec 2007 in this company after having doing intense DD on the company. It would not have sunk that much money in a company doing only 0.4M rev in 2007 and 0.5M in 2008. That's absurd. From what I know from their other investments in BSPM, UTA, CNYD...they only invest in select small companies with outstanding growth prospects and they usually stay with them for a fair period of time. In 2009 CHBT did another raise for 75MM which again proves they are on track with their growth plan. In addition, this is a company with very high insider (50%+) and institutional ownership (25%) which is the best warrant for me against fraud.
