S3 Investment Company Updates Progress of Closed Redwood Capital Clients
S3Investment Company, Inc. (Pink Sheets:SIVC) today provided updates on the milestones reported by clients of the company's wholly-owned Redwood Capital subsidiary, including the expansion of Boyuan Construction Group, Inc. into a new market and contracts valued at over US$45 million. Growth of Redwood Capital clients impacts the company, since part of Redwood Capital's compensation for its advisory services is paid in shares of the client's common stock. Redwood Capital assists private Asian companies through the process of accessing capital markets through Alternative Public Offerings (APO) transactions.
On January 4, 2011, Boyuan Construction Group, Inc., a fast-growing construction company in China of commercial, residential and municipal infrastructure projects, which trades on the Toronto Stock Exchange under the symbol BOY, announced that it had initiated the building of a 60,000 square meter residential project on Hainan Island valued at US$10.9 million. The new project is expected to be completed in the third quarter of calendar 2011.
In December 2010, Boyuan Construction announced its expansion into Boao, an emerging city in Hainan Province, and the initiation of two residential construction projects with a Hong Kong-based property developer. The aggregate value of the two projects is US$27 million. The first project, which will include the construction of 17 residential villas with a total area of 13,000 square meters, is valued at US$3 million. The second project will consist of the construction of a 29-story residential building with a total area of 88,000 square meters. The US$24 million project is currently underway, and is expected to be completed in the second quarter of calendar 2012.
Earlier in December, Boyuan Construction initiated construction of a 40,000 square meter clubhouse facility in the new Serenity Marina located in Sanya, Hainan Island. The project has a contract value of US$7.5 million and is expected to be completed by the second quarter of calendar 2011.
Redwood Capital client China Infrastructure Construction Corp., a major U.S.-listed provider of ready-mix concrete headquartered in Beijing and traded on the U.S. Over-the-Counter Bulletin Board market under the symbol CHNC, announced its financial results for the second fiscal quarter ended November 30, 2010. Highlights of the report included an increase of year-over-year revenues for the second quarter of 35.4%; an increase in year-over-year net revenue to $4.9 million as compared with a net loss the previous year of $24.5 million; and year-over-year increases in gross margin, operating income, operating margin and earnings per diluted share.
China Infrastructure Construction Corp. also updated the new concrete mixing tower at its Beijing Yizhuang batching station. Concrete production from the new tower, which was installed in April 2010 and began production in May 2010, made up 25.6% of total output for the company's Beijing Yizhuang plant during the six months ended November 30, 2010. The total output of the station increased 10.3% year-over-year during the same six-month period.
"With all of the recent growth and progress in our own subsidiary operations, we have not had the opportunity to update the recent news from the Redwood Capital clients whose transactions have already successfully closed," said S3 Investment Company Chairman and CEO Jim Bickel. "With several new client signings and a conditional close in place for another Redwood Capital client, we fully expect there to be additional client company milestones to update in the future."
