China Finance, Inc. - Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (N-Q)
28 Mai 2008 - 3:24PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF
REGISTERED MANAGEMENT INVESTMENT
COMPANY
Investment Company Act file number:
811-22081
China
Finance, Inc.
(Exact name of registrant as specified
in charter)
1330 Ave of
Americas, 21st floor, New York NY 10019
(Address of principal executive
offices) (Zip code)
Wei Wei
1330 Ave of
Americas, 21st floor, New York NY 10019
(Name and address of agent for
service)
Registrant's telephone number, including
area code:
(212)
823-0530
Date of fiscal year end:
December
31
Date of reporting period:
March 31,
2008
ITEM 1. SCHEDULE OF
INVESTMENTS
China Finance,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Value
|
|
As of March 31,
2008
|
|
Shares
|
|
|
(Note
1)
|
|
|
|
|
|
|
|
|
|
|
Common Stocks -
52.77%
|
|
|
|
|
|
|
|
|
Small and Medium Sized Enterprises
(or operating companies)
|
|
|
|
|
|
|
|
|
in the People's Republic of
China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
µ
|
|
Beijing Logistic, Inc. -
1.61%
|
|
|
|
|
|
|
|
|
(par value $0.001, restricted
until April 18, 2008)
|
|
|
5,619,124
|
|
|
$
|
842,869
|
|
*
µ
|
|
China Ivy School, Inc. -
0.73%
|
|
|
|
|
|
|
|
|
|
|
(par value
$0.001)
|
|
|
3,480,750
|
|
|
|
382,883
|
|
*
|
|
China Organic Agriculture, Inc. -
3.92%
|
|
|
|
|
|
|
|
|
|
|
(par value
$0.001)
|
|
|
1,729,273
|
|
|
|
2,057,835
|
|
*
|
|
China 9D Construction Group -
0.11%
|
|
|
|
|
|
|
|
|
|
|
(par value
$0.001)
|
|
|
2,251,621
|
|
|
|
58,542
|
|
*
|
|
China 9D Construction Group -
0.03%
|
|
|
|
|
|
|
|
|
|
|
(par value $0.001, restricted
until April 17, 2008)
|
|
|
649,967
|
|
|
|
16,899
|
|
*
|
|
Gulf Resources, Inc. -
11.76%
|
|
|
|
|
|
|
|
|
|
|
(par value
$0.001)
|
|
|
3,339,000
|
|
|
|
6,177,150
|
|
*
|
|
Guilin Paper, Inc. -
0.75%
|
|
|
|
|
|
|
|
|
|
|
(par value
$0.001)
|
|
|
1,702,762
|
|
|
|
391,635
|
|
*
|
|
Home System Group -
0.27%
|
|
|
|
|
|
|
|
|
|
|
(par value
$0.001)
|
|
|
480,000
|
|
|
|
144,000
|
|
*
µ
|
|
Jade Art Group, Inc. -
10.33%
|
|
|
|
|
|
|
|
|
|
|
(par value $0.001, restricted
until April 1, 2008)
|
|
|
4,340,700
|
|
|
|
5,425,875
|
|
*
µ
|
|
Jade Art Group, Inc. -
20.66%
|
|
|
|
|
|
|
|
|
|
|
(par value $0.001, restricted
until June 28, 2008)
|
|
|
8,681,400
|
|
|
|
10,851,750
|
|
*
|
|
Orient Paper, Inc. -
0.89%
|
|
|
|
|
|
|
|
|
|
|
(par value $0.001, restricted
until May 1, 2008)
|
|
|
1,877,525
|
|
|
|
469,381
|
|
*
|
|
Universal Travel Group -
1.71%
|
|
|
|
|
|
|
|
|
|
|
(par value
$0.001)
|
|
|
573,000
|
|
|
|
899,610
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Stocks (Cost
$20,271,606)
|
|
|
|
|
|
$
|
27,718,429
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable -
30.67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fujian ZangTianYua -
5.44%
|
|
|
|
|
|
|
|
|
|
|
(6.48%, due on May 22,
2008)
|
|
|
|
|
|
|
2,856,000
|
|
|
|
Shenzhen HuaYinTong Electronics -
25.23%
|
|
|
|
|
|
|
|
|
|
|
(9.00%, due on October 15,
2008)
|
|
|
|
|
|
|
13,250,488
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
Receivable
|
|
|
|
|
|
$
|
16,106,488
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Non-income producing
security.
µ
Affiliated issuer (Note 2).
(Continued)
China Finance,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Held for Investment
(a) - 2.86%
|
|
|
|
|
|
$
|
1,504,634
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments -
86.30%
|
|
|
|
|
|
$
|
45,329,551
|
|
Other Assets less Liabilities -
13.70%
|
|
|
|
|
|
|
7,193,567
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets -
100.00%
|
|
|
|
|
|
$
|
52,523,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following information is based upon
the federal income tax cost of portfolio investments
as of March 31,
2008.
Gross unrealized
appreciation
|
|
$
|
16,833,435
|
|
Gross unrealized
depreciation
|
|
|
(9,386,612
|
)
|
|
|
|
|
|
Net unrealized appreciation
(depreciation)
|
|
$
|
7,446,823
|
|
|
|
|
|
|
Federal income tax
cost
|
|
$
|
20,271,606
|
|
The
difference between the acquisition cost and the federal income tax cost of
portfolio investments is due to certain timing differences in the recognition of
capital losses under accounting principles generally accepted in the United
States and income tax regulations.
(a)
The Company’s
real estate held for investment consists of a building and related land use
rights. The Company values the real estate based on the cost to purchase and
construct a building on the real estate. The Company evaluates the
market price semi-annually for possible impairment loss, and, as needed, a
certified independent agent performs a property inspection and a market price
evaluation.
(Continued)
China Finance,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to Schedule of
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
2008
|
|
|
|
|
|
|
|
Note 1 - Investment
Valuation
The
Company generally receives compensation for its surety guarantee services in the
form of Payment Securities. Most of the Payment Securities are shares
of small companies that are traded in the over-the-counter market and are,
therefore, generally considered to be thinly-traded penny stocks. The
Company has adopted policies for the valuation of securities held by the Company
as part of the Company’s Pricing Policies and Procedures. These
Pricing Policies and Procedures state that the Company will generally value its
portfolio securities at the quoted market price or pricing service valuation;
however, pursuant to these Pricing Policies, the Board has adopted guidelines
and instructions that substitute the Company’s good-faith estimate of fair value
for the quoted market price or pricing service valuation when pricing securities
that may be held by the Company including, without limitation, Payment
Securities (the “Fair Value Pricing Instructions”). These Fair Value
Pricing Instructions are used by the Company when: its portfolio securities
are subject to restrictions on resale because they have not been held by the
Company for six months; there are few transactions or market-makers in the
security; the spread between the bid and asked price is large; and there are
substantial variations in the price quotations over time.
The Fair
Value Pricing Instructions are implemented by the Board, which determines the
fair value price of Payment Securities on a periodic basis (at least quarterly)
in accordance with the Fair Value Pricing Instructions. Using the
Fair Value Pricing Instructions, the Board seeks to determine the price that is
representative of the amount that the Company might reasonably expect to receive
for the Payment Securities upon their current sale. Under the Fair
Value Pricing Instructions, the Board considers a number of factors and criteria
including, without limitation: the financial standing of the issuer; the
business and financial plan of the issuer and comparison of actual results with
the plan; the cost of the securities as of the date received by the Company; the
size of position held and the liquidity of the market; contractual and statutory
restrictions on disposition; and pending public offering with respect to the
financial instrument; any pending reorganization activity affecting the
financial instrument (such as merger proposals, tender offers; debt
restructurings, and conversions); the reported prices and the extent of
public trading in similar financial instruments
of the issuer or comparable companies; the ability of the issuer to obtain
needed financing; any changes in the economic conditions affecting the issuer;
recent purchases or sales of securities of the issuers of the securities;
pricing by other dealers in similar securities; and the financial statements of
the issuers of the securities.
China Finance,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security
Description
|
Acquisition
Date
|
|
Shares
|
|
|
Cost
|
|
|
Value
|
|
|
% of Net
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beijing Logistic, Inc.
(1)
|
10/19/2007
|
|
|
5,619,124
|
|
|
$
|
4,214,343
|
|
|
$
|
842,869
|
|
|
|
1.61
|
%
|
China 9D Construction Group
(2)
|
8/10/2007
|
|
|
2,251,621
|
|
|
$
|
1,148,327
|
|
|
$
|
58,542
|
|
|
|
0.11
|
%
|
China 9D Construction Group
(2)
|
10/17/2007
|
|
|
649,967
|
|
|
$
|
974,950
|
|
|
$
|
16,899
|
|
|
|
0.03
|
%
|
Jade Art Group, Inc.
(3)
|
10/2/2007
|
|
|
4,340,700
|
|
|
$
|
1,446,900
|
|
|
$
|
5,425,875
|
|
|
|
10.33
|
%
|
Jade Art Group, Inc.
(3)
|
12/28/2007
|
|
|
8,681,400
|
|
|
$
|
2,893,800
|
|
|
$
|
10,851,750
|
|
|
|
20.66
|
%
|
Orient Paper, Inc.
(4)
|
10/29/2007
|
|
|
1,877,525
|
|
|
$
|
1,408,143
|
|
|
$
|
469,381
|
|
|
|
0.89
|
%
|
|
(1)
|
The 5,619,124
shares of BJGL represent approximately a 6% interest in the issued
and outstanding common shares of BJGL as of March 31, 2008. The
BJGL shares were received as payment for surety guarantee services
provided for BJGL’s October 19, 2007 merger transaction with China Baolong
Logistic Limited. The closing price of the BJGL shares was
$0.75 per share on October 19, 2007. As of March 31, 2008, the
market value of unrestricted shares of BJGL was $0.15 per share, and the
Company’s board determined the fair value of its shares of BJGL to be
$0.15 per share.
|
|
(2)
|
The 2,901,588
shares of CNAG represent approximately a 3.63% interest in the issued
and outstanding common shares of CNAG as of March 31, 2008. A
portion (2,251,621) of the CNAG shares were received as payment for surety
guarantee services provided for CNAG’s August 10, 2007 merger transaction
with China 9D Decoration Group Limited. The closing price of
the CNAG shares was $0.51 per share on August 10, 2007. On
October 17, 2007, the Company received an additional 649,967 shares of
CNAG as payment of a promissory note for $974,950 owed to the Company from
CNAG as payment for the original surety guarantee services the Company
provided.
As
of March 31, 2008, the market value of unrestricted shares of CNAG was
$0.026 per share, and the Company’s board determined the fair value of its
shares of CNAG to be $0.026 per
share.
|
|
(3)
|
The 13,022,100
shares of JADG represent approximately a 5.43% interest in the issued and
outstanding common shares of JADG as of March 31, 2008. A
portion (4,340,700) of the JADG shares were received as payment for surety
guarantee services provided for JADG’s October 2, 2007 merger transaction
with Guoxi Holding Limited. The closing price of the JADG
shares was $1.00 per share on October 2, 2007. On December 28,
2007, the Company received an additional 8,681,400 shares of JADG due to a
three-for-one forward stock split of JADG. As of March 31,
2008, the market value of unrestricted shares of JADG was $1.25 per share,
and the Company’s board determined the fair value of its shares of JADG to
be $1.25 per share.
|
|
(4)
|
The 1,877,525
shares of OPAI represent approximately a 4.68% interest in the issued
and outstanding common shares of OPAI as of March 31, 2008. The
OPAI shares were received as payment for surety guarantee services
provided for OPAI’s October 29, 2007 merger transaction with Dongfang
Zhiye Holding Limited. The closing price of the OPAI shares was
$0.75 per share on October 29, 2007. As of March 31, 2008, the
market value of unrestricted shares of OPAI was $0.25 per share, and the
Company’s board determined the fair value of its shares of OPAI to be
$0.25 per share.
|
(Continued)
China Finance,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliated
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
2008
|
|
|
|
|
|
|
|
The
companies included in the table below are affiliated issuers (as defined in the
Investment Company Act of 1940) of the Company because the Company owns 5% or
more of the outstanding voting securities of each issuer listed. A
summary of the Company's investments in affiliates for the period ended March
31, 2008 is noted below:
Affiliate
|
|
Balance
03/31/2008
|
|
|
Dividends
|
|
|
Realized
Gain/Loss
|
|
|
Value
03/31/2008
|
|
|
Acquisition
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Ivy School,
Inc.
|
|
|
3,480,750
|
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
382,883
|
|
|
$
|
1,740,375
|
|
Beijing Logistic, Inc.
(1)
|
|
|
5,619,124
|
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
842,869
|
|
|
$
|
4,214,343
|
|
Jade Art Group, Inc.
(3)
|
|
|
13,022,100
|
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
16,277,625
|
|
|
$
|
4,340,700
|
|
ITEM 2. CONTROLS AND
PROCEDURES
(a)
|
The Principal Executive Officer
and the Principal Financial Officer have concluded that the registrant’s
disclosure controls and procedures are effective based on their evaluation
of the disclosure controls and procedures required by Rule 30a-3(b) under
the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under
the Securities Exchange Act of 1934 as of a date within 90 days of the
filing of this report.
|
(b)
|
There were no changes in the
registrant's internal control over financial reporting that occurred
during the registrant’s last fiscal quarter that have materially affected,
or are reasonably likely to materially affect, the registrant’s internal
control over financial
reporting.
|
ITEM
3. EXHIBITS
Certifications for each principal
executive officer and principal financial officer of the registrant as required
pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR
270.30a-2(a)) are filed herewith as Exhibit A.
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934 and the Investment Company Act of 1940, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
China
Finance, Inc.
By:
(Signature and Title)
|
/s/ Zhi Yong
Xu
|
|
Zhi Yong
Xu
|
|
Chairman and
Chief Executive Officer
|
|
China
Finance, Inc.
|
|
|
Date:
May 21, 2008
Pursuant
to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates
indicated.
By:
(Signature and Title)
|
/s/ Zhi Yong
Xu
|
|
Zhi Yong
Xu
|
|
Chairman and
Chief Executive Officer
|
|
China
Finance, Inc.
|
|
|
Date:
May 21, 2008
By:
(Signature and Title)
|
/s/ Liang
Liao
|
|
Liang
Liao
|
|
Chief
Financial Officer
|
|
China
Finance, Inc.
|
|
|
Date:
May 21, 2008
China Finance (CE) (USOTC:CHFI)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
China Finance (CE) (USOTC:CHFI)
Historical Stock Chart
Von Jun 2023 bis Jun 2024