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Through its own team of seasoned professionals and international network of corporate and financial contacts us is capable of delivering a wide array of specialized consulting services to its clients. Because each client’s needs are unique, Our works with each client to develop and execute a sound strategy utilizing our unique and diverse services.
Raising Capital using a Public Company
Joint Venture and Strategy
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A USA Product Designer
Background: The company and newly and unique products with significant market potential. Pricing was however to high and therefore an obstacle to market entry. They needed dramatic cost reduction and had no contacts or resources able to help them in China sourcing.
Execution: FIG took sample products, developed written specifications and then conducted a search for potential suppliers in China. This required hard tooling, stamping, high quality label, assembly and retail packaging skill sets.
Deliverable : Within 60 days FIG identified a supply chain that reduced the cost of one product by 65% and another 85%. In addition in cooperation with the newly identified supply chain designed superb retail packaging and redesigned one product resulting in a 66% reduction in freight costs.
Customer assessment : “The results are beyond our wildest drams! We could not be more pleased, this is much more than we expected.”
Footnote: FIG remains engaged with the account providing program management support activities.
Case II: We researched and qualified a Chinese supplier for one of the largest distributors of packaging products in USA.
Case III: We did customized component manufacturing for some US small and medium companies.
We designed marketing plans for a multinationational company’s entry to Chinese market by doing marketing research(focus group, survey), SWOT analysis etc. Our client experience includes P&G, Motorola, Siemens and etc.
Joint Venture & Investment
I. We successfully assisted US companies setup joint ventures in Asia. There are two types of joint venture enterprises in China: equity joint ventures (EJV) and contractual joint ventures (CJV).
According to the Chinese law, EJVs are limited liability companies. Usually, the foreign partner of an EJV must contribute at least 25 percent of the capital although there are no limitations on the number of partners in a venture. Profits are distributed according to each partner’s capital contribution. Upon successful completion of the pre-approval screening, the Ministry of Foreign Economic Relations and Trade (MOFERT) or a corresponding authority will normally make a decision on approval within 90 days. Depending on the scope of the venture, the contract period may be decided by negotiation among the parties or in accordance with sector specific regulations. The foreign investor may not recover its investment until liquidation or sale of the venture. (However, in practice, investors can sell its shares or receive dividend from the JV.)
Under the law governing CJV, the parties determine the form of operation through the negotiation of a contract. Generally, the parties agree to operate jointly like partners or to form a new limited liability company. There are no set government requirements on the duration of the venture, on the amount of capital the foreign investor must contribute, or on how profits are to be distributed. If ownership of the fixed assets of the venture reverts to the Chinese partner at the end of the contract term, the foreign investor may recover its share of the investment during the term of cooperation. Assuming successful completion of the required pre-approval procedures, MOFERT or a corresponding local authority will make a decision on approval within 45 days.
II. We are doing reverse merger for Chinese companies, we’ve done several cases on financing in US public market through reverse merger. Reverse merger is a faster and cheaper way for a private company to go public. To do a reverse merger, a private company would find a public “shell” – a public company that has little or no operation and assets. Usually the shell has to be “clean” , that is, with little or no liability, and with no current or potential legal problems. In a reverse merger, the public shell issues shares to the shareholders of the private company to acquire (usually 100%) shares of the private company. Subsequently, the shareholders of the private company become the majority (usually 90%-95%) shareholders of the public company, the directors and officers of the public shell resign and appoint the new directors designated by the private company. A reverse merger deal could be a “cash deal” (in which the majority shareholders of the public shell are bought-out with cash) or a “non cash deal” (in which no cash changes hands).
III. We are providing value-added financial advisory service for Chinese private and family firms, assisting its financing, global strategy, M&A , IPO in USA.