Value Microcaps Motherboard

[chinditone]

Bobwins - I have some CESV answers from the CFO to your questions:

Bobwins Q1:

"Can't figure out how they calculate the minority interest that has since been bought out. They owned 65% of stairwayStarway as of November. Why is there a 49% deduction for minority interest in 12/31 stmt? Even if you do it prorata for part of qtr, doesn't add up. If they own 100% now, and issued stock to pay for it, I figure eps would have been close to same number on a diluted basis"



CFO Answer: Before November 17, 2004, CESV (formerly known as RIM) owned only 50% interest in Starway, thus the Minority Interest entitled 50% profits of Starway before November 17, 2004.

On and after November 17, 2004 CESV owns 65% interest in Starway. In other words, the rest of 35% interest in Strarway is still owned by Minority Interest.

For the period from Oct 1 to Dec 31, 2004, the Minority Interest's share of the profits of Starway are calculated using a pro-rata basis of the actual profit for this quarter, i.e. (50% from Oct 1 to Nov 16 and 35% from Nov 17 to Dec 31) and the profits of Starway for the quarter was about US$6,375K.


Bobwins Q2: "I think these sales agreements could be the reason for the weak stock prices. These sales consultants took stock instead of sales commissions but they have to eat for the next 3 years. They will sell stock, especially if it keeps going lower as it has been lately. Don't know how long this selling pressure will continue."


CFO answer :

It could also be the shortselling activities prior to the approval of our listing application and closing of financing transactions.

Bobwins Q3; "Cash appears very high at 26.8 million or more than $1 per share. Why are they still issuing stock for services when they are cash rich??"


CFO Answer: The energy savings business is the major source of income of CESV thus the 26.8m cash.
Reason we keep issuing stocks to consultants as compensation is that we need the 26m cash for expansion of our business by restarting the profit sharing business model with which we need a ridiculous large amount of fund for the equipment. We are in need of more than $26m and are well in negotiation with funders.

Bobwins Q4: "Does the mgmt of CESV run Shenzen Dickens group?"

CFO answer; Yes CESV mgmt is on top of Shenzhen Dicken group overseeing its operation. Not a CYD.

Bobwins Q5: "The energy crisis is going to call for energy savings and the unstable power supplies probably help sell CESV products"

CFO answer: Before China manages to address the energy shortage problem by building power plants, energy conservation looks the quickest way to resolve this issue in the interim.