2 of 3 China IPO files

Pre-IPO analysis, grading & scoring

. Business Model Rating Criteria

A = high growth market, potential leader; B = more competitive market; C= 'public venture capital'

. Calculations

. IPO Price to annualized Sales Ratio -- (Price / Sales)

Numerator

Denominator

IPO market capitalization…

Annualized Sales (based on recent results)

(post-IPO # of shares times mid-point of IPO price range)

. IPO Price to annualized Earnings (loss) -- (Price / Earnings)

Numerator

Denominator

IPO market cap

Annualized Earnings (loss) from the last quarter

===================

SEARCH BY COMPANY

In your browser use 'Edit/Find' to search for companies

or ticker for analysis

below

===================

China Digital TV (STV)

digital television access systems in China: C+, 8

Oct 4, 2007 @ $!6

WuXi PharmaTech (WX)

biopharma R&D outsourcing: B-, 9

Aug 8, 2007 @ $$14

E-House (China) (EJ)

China real estate services: B-, 9

Aug 7, 2007 @ $13.80

Perfect World (PWRD)

China online 3D video games: B-, 8

July 25, 2007 @ $16

Spreadtrum Com (SPRD)

Chinese designer of wireless handset Ics: C+, 7

June 26, 2007 @ $14

Yingli Green Energy (YGE)

Vertically integrated photovoltaic prod: B-, 8

June 7, 2007 @ $11

LDK Solar (LDK)

multicrystalline wafers for solar cells: B-, 8

May 31, 2007 @ $27.00

China Sunergy (CSUN)

solar cell products, China: C+, 7

May 16, 2007 @ $11

===================

Noah Education Holdings

NED, B-, 8

interactive education content in China

June 30 fiscal year

Post-IPO shrs: 37mm

Shenzhen, China

2005

2006

2007

IPO Mkt

Rev ($mm)

$73

Cap (mm)

Gross profit %

44%

55%

52%

$396

Operating profit %

8%

6%

12%

@$10.8

Profit (loss) $mm

$9

Profit (loss) %

19%

7%

12%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings*

BookValue

TangibleBV

in IPO

Noah Education (NED)

$396

5.4

46

3.4

3.5

27%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

3

2

1

8

Business

. A leading provider of interactive education content in China.

. Develops and markets interactive, multimedia learning materials mainly to complement prescribed

textbooks used in China's primary and secondary school curriculum, covering subjects such as English,

Chinese, mathematics, physics, chemistry, biology, geography, political science and history.

. Delivers content primarily through DLDs, into which content is embedded or subsequently downloaded at

over 8,500 points of sale, approximately 2,000 download centers, or through NED's website,

www.noahedu.com.

. In addition, derives a significant, but decreasing, portion of revenue from the sale of E-dictionaries.

DLDs - fast adoption rate

(DLD is a library package of C functions that performs dynamic link editing. Programs that use dld can add

or remove compiled object code from a process anytime during its execution. Loading modules, searching

libraries, resolving external references, and allocating storage for global and static data structures are all

performed at run time.)

. First introduced in 2003, DLDs have become the main platform for interactive learning in the Chinese

market.

. DLD sales in China grew at a CAGR of 41.7% from 2004 to 2006, according to CCID Consulting, which

projects DLD sales in China to grow at a CAGR of 20.8% from 2007 to 2009.

. NED believes the fast adoption of, and growing demand for, DLDs is due to the manner in which DLDs

present traditional content in an engaging multimedia format and at a pace and order selected by each

individual student, thereby creating a more tailored and more enjoyable teaching and learning experience.

Market position

According to CCID Consulting, in 2006 and the first half of 2007, NED was ranked

. No. 1 by revenue and by the combined number of DLDs and E-dictionaries sold, and

. No. 2 in 2006 and No. 1 in the first half of 2007 by revenue and by the number of DLDs sold, among

interactive education content providers that distribute content through DLDs and E-dictionaries in China.

Fiscal 2007 revenue compared with 2006 (June 30 fiscal)

Net revenue increased 41.3% in fiscal 2007 from fiscal 2006.

. The increase was primarily attributable to a substantial increase in sales of DLDs, offset by a decrease in

E-dictionary sales.

. Sold 557,093 DLDs in fiscal 2007, an increase of 63.7% from 340,343 DLDs sold in fiscal 2006.

. Average selling price of DLDs increased 12.0% as NED introduced a number of models with more

innovative features and offered better content offering.

. The increase in average selling price was moderated by an increase in sales discounts given to distributors

to stimulate sales, from 8.7% of net revenue in fiscal 2006 to 13.0% in fiscal 2007.

. Sold 775,659 E-dictionaries in fiscal 2007 compared to 904,747 E-dictionaries in fiscal 2006. As a result

of a decrease in market demand, lowered selling prices of E-dictionaries and the average selling price of E

dictionaries decreased by 6.7%.

Competition

. The interactive education content market in China is rapidly evolving and very competitive.

. Some competitors who were present when we entered the market in 2004 no longer operate in this field

and others have lost their dominant positions.

. According to CCID Consulting, as of the end of 2006, the top five companies accounted for

approximately 80% of the DLD market.

. Main competitors in the DLD market include Shanghai Ozing Digital Technology Limited and

Guangdong Bubugao Electronic Industry Limited. Our main competitors in the E-dictionaries market

include Guangdong Bubugao Electronic Industry Limited and Global View Co., Ltd.

. Also competes indirectly with online education content providers, such as Beijing No. 4 Middle School

Net and Hu Bei Province Huang Gang Middle School Net, and providers of interactive education content

through CD-ROMs such as HUMAN Education & Technology Co., Ltd. and Guangdong Dongtian Culture

Enterprise Co., Ltd.

Use of $84mm in IPO proceeds from sale of 8.7mm ADSs

(shareholders intent to sell 1.12mm ADSs)

o US$40 million to fund our expansion into complementary businesses such as tutoring and test preparation

services, including possible acquisitions;

o US$20 million to fund efforts to enhance our branding and sales channels;

o US$10 million to fund the development of educational content and diversification of delivery platforms;

o US$10 million to fund research and development efforts; and

o the balance to fund working capital requirements.

===================

China Digital TV Holding

STV, C+, 8

digital television access systems in China

Post-IPO shrs: 55.5mm

Beijing, China

2004

2005

2006

June, 06*

June, 07*

IPO Mkt

Rev ($mm)

$4

$13

$30

$10

$22

Cap (mm)

Gross Profit

50%

70%

76%

80%

81%

$666

Profit (loss) $mm

-$3.3

$4.5

$13.0

$3.4

$12.2

@$12

Profit (loss) %

-92%

34%

43%

33%

56%

* six months ended June 30

Last four quarters

Sept, 06

Dec, 06

March, 07

June, 07

Rev ($mm)

$10

$10

$10

$11

Gross Profit

79%

75%

84%

80%

Profit (loss) $mm

$5.7

$3.8

$6.2

$6.0

Profit (loss) %

55%

40%

60%

54%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

China Digital TV (STV)

$666

15.0

28

4.4

4.3

22%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

2

2

8

ADS offering

Note: last four quarters had essentially flat revenue

No corporate taxes

. For tax purposes STV is based in the Cayman Islands

. The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income,

gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty or withholding

tax applicable to us or to any holder of ADSs or ordinary shares.

Business

. The leading provider of conditional access, or CA, systems to the Peoples Republic of China's (PRC)

rapidly growing digital television market.

. STV'sCA systems, which consist of smart cards, head-end software for television network operators and

terminal-end software for set-top box manufacturers, enable digital television network operators in the PRC

to control the distribution of content and value-added services to their subscribers and block unauthorized

access to their networks. In addition, STV licenses its set-top box design to set-top box manufacturers and

sell advanced digital television application software, such as electronic program guides and subscriber

management systems, to digital television network operators.

The industry

. The PRC has the largest television viewing market in the world, with televisions in 362 million

households, of which 139 million households subscribed to cable television, as of December 31, 2006,

according to Analysys International. The commercial potential of the PRC cable television industry,

however, has yet to be fully developed.

. Digital television offers a range of advantages over analog television, including enhanced picture quality,

more efficient use of bandwidth, improved content protection and the opportunity to offer value-added

services to viewers. The transition from analog to digital television services in the PRC introduces

significant opportunities in the PRC cable television industry. This transition is being driven by the

following key factors:

. In 2003, the PRC State Administration of Radio, Film and Television, or the SARFT, announced a target

of 2010 for all television broadcasts to be made in digital format (in addition to any parallel transmissions

in analog format)

. And a target of 2015 for cable television networks to switch off all analog transmissions. In February

2007, the SARFT ordered cable television network operators nationwide to continue to provide at least six

analog television channels for the indefinite future for the benefit of those unable or unwilling to subscribe

to digital television services.

Market share

. According to Analysys International, STV was the leader in the PRC CA systems market in 2006 and

each of the first and second quarters of 2007.

. According to Analysys International, in the second quarter of 2007 STV had an approximately 44%

market share based on the number of smart cards shipped, followed by DVN Holdings Ltd. With

approximately 19% market share, Irdeto Access BV with approximately 12% market share, NDS Group

with approximately 9% market share, Kudelski SA with approximately 9% market share, Sumavision

Technologies Co., Ltd. with approximately 5% market share, and others accounting for the remaining 2%.

Smart cards

. Derives a substantial majority of our revenues from sales of smart cards, which accounted for 85.6% and

87.9% of total revenues in 2006 and in the six months ended June 30, 2007, respectively.

. Expects that the sales of smart cards will continue to constitute the majority of revenues in the near future.

. Sold 0.2 million, 1.5 million and 3.9 million smart cards in 2004, 2005 and 2006, respectively, and sold

2.8 million smart cards in the six months ended June 30, 2007, compared to 1.3 million in the same period

of 2006.

. The number of smart cards sold by STV in each of the first and second quarters of 2007 represented

approximately 44% of the smart cards that were shipped in the PRC in such period, according to Analysys

International

Customers

. STV sells CA systems and digital television application software to PRC television network operators,

including cable, satellite and terrestrial television network operators and enterprises that maintain private

cable television networks within their facilities.

. Currently derives, and we expect to continue to derive, a significant portion of revenues during any given

period from a limited number of customers, primarily cable television network operators who are launching

new digital transmission systems, although the particular customers may vary from period to period.

PRC television network operators

. Aare in the early stages of switching from analog to digital transmissions, and the PRC government has

set a target of 2015 for operators nationwide to complete the digital transition.

. Benefiting from this transition and the expanding market for STV products, the business has experienced

significant growth since 2004.

. As of June 30, 2007, STV had installed CA systems at 130 digital television network operators in 26 of

the 32 provinces, autonomous regions and centrally administered municipalities in the PRC.

Research and Development

. STV'ssuccess to date has in large part resulted from strong research and development capabilities. As of

June 30, 2007, STV's research and development team consisted of 178 employees, up from 145 as of

December 31, 2006, and STV plans to further expand the team during the second half of 2007.

. Many of STV's current research and development staff are graduates of the PRC's top science and

engineering universities, including Tsinghua University, and have extensive experience in digital television

and encryption technologies.

. STV's research team played a leading role in drafting the PRC industry standards for CA systems,

electronic program guides and other key industry standards. STV is active in the China DRM Forum, which

aims to develop a PRC standard for digital rights management, and the Audio and Video Coding Standard

Workgroup of China, which has developed the PRC's own video and audio compression technology.

. In 2006, the Radio and Television Standards Institute of the SARFT awarded STVs their annual

technology innovator award, and honored Mr. Jian Han, STV's chief technology officer, with their

innovative person award.

Intellectual property

. STV develops all of its software internally

. As of June 30, 2007, held a total of three patents issued in the PRC and seven pending patent applications

in the PRC.

. Issued patents and pending patent applications relate primarily to digital transmission technologies,

encryption and decryption technologies, technologies relating to the production of set-top boxes and smart

cards and technologies relating to value-added services.

. Also completed copyright registration of 34 software programs for digital television in the PRC.

Competition

International

. Main international competitors in the CA systems business are Conax AS, Irdeto Access BV, Kudelski

SA, and NDS Group. These companies have longer operating histories and substantially greater financial,

technical and other resources than STV, which may enable them to respond more quickly than STV to

technological or commercial changes in our industry.

. Several of these companies entered the PRC market before STV but have been less successful in capturing

market share. Historically, these companies have generally focused on sales to the television network

operators in the PRC's largest cities.

. To the extent that international competitors may begin targeting small and mid-size television network

operators, STV believes that it can continue to compete successfully because of local knowledge and

relationships and more extensive customer support and service network.

Domestic

. Main domestic competitors are Compunicate Technologies Inc., DVN Holdings Ltd., and Sumavision

Technologies Co., Ltd., all of which are non-state-owned companies operating mainly in the PRC.

. They may offer their CA systems at a lower price than STV. However, STV believes that it has more

advanced technology and that STV's strong technology and leading market position will enable STV to

continue to compete successfully against these companies.

Dividend policy

. As a result of the substantial growth of revenues in 2005 and 2006, STV generated cash in excess of

ordinary business needs. Because STV had not identified any immediate investment or acquisition

opportunities, it declared dividends to shareholders in August 2006 and November 2006 and paid out such

dividends in August 2006 and February 2007, respectively.

. Currently intends to retain all available funds and any future earnings for use in the operation and

expansion of the business, and does not anticipate paying any cash dividends on ordinary shares, or

indirectly on ADSs, for the foreseeable future

Use of $131mm in IPO proceeds

. The principal reasons for this offering are to create a public market for our ordinary shares for the benefit

of all shareholders, to retain talented employees by providing them with equity incentives in a public

company, to promote our corporate brand and image and to raise capital.

. Intends to use net proceeds from this offering for research and development, sales and marketing,

acquisitions and general corporate purposes.

===================

E-House (China) Hldigs

EJ, B-, 9

China real estate services

Post-IPO shrs:75mm

Shanghai, China

2004

2005

2006

March, 06*

March, 07*

IPO Mkt

Rev ($mm)

$31

$39

$56

$4

$16

Cap (mm)

Gross Profit

69%

72%

82%

68%

85%

$933

Operating profit (%)

22%

38%

43%

-43%

37%

@$12.5

Profit (loss) $mm

$5.6

$11.1

$18.0

-$1.3

$4.4

Profit (loss) %

18%

29%

32%

-33%

28%

* three months ended March 31

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

E-House (China) (EJ)

$933

10.1

37

4.9

5.0

20%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

3

3

2

1

9

Each ADS represents one ordinary share

Recent developments

. EJ estimates that it generated revenues ranging from approximately $22.5 million to $24.0 million for

the quarter ended June 30, 2007.

. Also estimates that it had income from operations ranging from approximately $9.2 million to $10.0 million and

. Net income ranging from approximately $6.0 million to $6.5 million for the quarter ended June 30, 2007.

Business

. A leading real estate services company in China based on scope of services, brand recognition and

geographic presence.

. Provides primary real estate agency services, secondary real estate brokerage services as well as real

estate consulting and information services

. China Real Estate Information Circle system, or CRIC system: EJ believes their CRIC system is the only

information system that provides up-to-date, comprehensive and in-depth information covering residential

and commercial real estate properties in all major regions in China.

. EJ ranked as the largest real estate agency and consulting services company in China for three consecutive

years from 2004 to 2006 by the China Real Estate Top 10 Committee, as measured by the number of

transactions facilitated, transaction value and GFA of properties sold and geographic coverage.

Segments

For the quarter ended March 31, 2007 the segment distribution of revenue was

. Real estate agency services, 79.4%

. Secondary real estate brokerage services, 11.5%

. Real estate consulting and information services, 9.1%

Highlights

o Enhanced brand recognition and leading position in the real estate services market, as evidenced by the

award received on March 28, 2007 as the largest real estate agency and consulting service company for the

third consecutive year;

o CRIC system was further expanded from covering real estate data in nine cities as of March 31, 2007 to 24 cities

as of June 30, 2007

o Secondary brokerage store network was further expanded from 114 stores as of March 31, 2007 to 141

stores as of June 30, 2007;

o Experienced a minimum of 40.6% increase in revenues from $16.0 million for the first quarter of 2007 to

the estimated revenues ranging from approximately $22.5 million to approximately $24.0 million for the

second quarter of 2007; and

o Experienced a minimum of 36.4% increase in net income from $4.4 million for the first quarter of 2007 to

the estimated net income ranging from approximately $6.0 million to approximately $6.5 million for the

second quarter of 2007.

Tax issues

. Under the new Enterprise Income Tax Law, enterprises that are established under the laws of foreign

countries or regions and whose "de facto management bodies" are located within the PRC territory are

considered PRC resident enterprises, and will be subject to the PRC enterprise income tax at the rate of

25% on their worldwide income.

. However, the new law does not define the term "de facto management bodies." Substantially all of our

management are currently located in China, and if they remain located in China after January 1, 2008, the

effective date of the new law, EJ's offshore holding companies may be considered PRC resident enterprises

and therefore be subject to the PRC enterprise income tax at the rate of 25% on their worldwide income

. This may increase EJ's tax expenses and adversely affect results of operations.

Customer concentration & developer relationships

. Generated 95.2%, 89.2% and 81.6% of total revenues from primary real estate agency services in 2004,

2005 and 2006, respectively.

. Although EJ is expanding service offerings, EJ expects to continue to rely on primary real estate agency

services to generate a significant portion of revenues for the foreseeable future.

. Revenues from primary real estate agency services are typically generated on a project-by-project basis

and are non-recurring in nature. This may contribute to the fluctuations in our period-to-period operation

results.

. EJ typically enters into agency agreements with developers shortly before they are expected to obtain

permits to sell their newly developed properties. However, the timing of obtaining these sales permits

varies from project to project and is subject to uncertain and potentially lengthy delays as developers need

to obtain a series of other permits and approvals related to the development before obtaining the sales

permit.

Seasonal

. Operating income and earnings have historically been substantially lower during the first quarter than

other quarters.

. This results from the relatively low level of real estate activity during the winter and the Chinese New

Year holiday period, which normally falls within the first quarter each year.

Competition

> EJ's competitive position in Shanghai, Wuhan and Fuzhou is stronger than its position in other local

markets.

. In Shanghai, EJ remained as the leading comprehensive real estate services company for three consecutive

years starting in 2004 and

. EJ's leading position was recognized by the prestigious "Golden Bridge" Award EJ received annually for

the same period from the Shanghai Real Estate Services Company Association.

> In the primary real estate agency services market, main competitors include World Union Real Estate

Consultancy (China) Ltd., Hopefluent Group Holdings Limited, Shanghai T&D Real Estate Co. Ltd. And

B.A. Consulting Company, all of which operate in multiple cities in China

> In the secondary real estate brokerage services market, EJ competes with established international and

domestic real estate brokerage firms, including Century 21 China Real Estate, Centaline Group, Coldwell

Banker, Shanghai House Exchange Co., Ltd., SUNCO Real Estate Co., Ltd., and 5i5j Real Estate Co. Ltd.,

in terms of number of brokerage storefronts, sales force and geographic coverage.

> In the real estate consulting and information service market, competes with other leading international

and domestic real estate services companies which provide real estate consulting services, including DTZ

International, Jones Lang LaSalle, CB Richard Ellis and First Pacific Savills

Use of $130mmin IPO proceeds from sale of 11.45mm ADSs

(shareholders intend to sell 3.15 ADSs)

o $20.0 million to fund capital expenditure, including approximately $10.0 million to fund opening of new

secondary storefronts and approximately $10.0 million to invest in information and operational systems;

o $5.0 million to expand our sales and marketing efforts; and

o balance for general corporate purposes, including funding possible acquisitions of complementary

businesses, although EJ is not currently negotiating any such transactions.

===================

WuXi PharmaTech

WX, B-, 9

biopharma R&D outsourcing

Post-IPO shrs:60mm

Shanghai, China

2004

2005

2006

March, 06*

March, 07*

IPO Mkt

Rev ($mm)

$21

$34

$70

$13

$34

Cap (mm)

Gross Profit

55%

54%

49%

42%

46%

$720

Profit (loss) $mm

$4.3

$6.1

$8.9

$0.8

$6.0

@$12.5

Profit (loss) %

20%

18%

13%

6%

18%

* three months ended March 31

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

WuXi PharmaTech (WX)

$720

5.3

30

3.5

3.7

22%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

3

3

2

1

9

Business

. The leading China-based pharmaceutical and biotechnology research and development, or R&D,

outsourcing company.

. Operations are grouped into two segments:

(1) laboratory services, consisting of discovery chemistry, service biology, analytical, pharmaceutical

development and process development services, and

(2) manufacturing, focusing on manufacturing of advanced intermediates and active pharmaceutical

ingredients for R&D use, or APIs.

. In 2006 provided services to 70 pharmaceutical and biotechnology customers, including nine of the top 10

pharmaceutical companies in the world, as measured by 2006 total revenues.

. To date, most customers have returned for additional and often larger and longer-term projects, and each

of the top-ten customers over the last three years continues to be a customer today.

Outsourcing industry

. WX has benefited significantly from growth in the global pharmaceutical and biotechnology outsourcing

industry.

. This growth is being driven by the need to increase the speed and lower the cost of drug development,

unmet medical needs of an ageing population, technological innovations that are increasing the conversion

of lead candidates to drugs, increasing regulatory and safety standards, and the demands of the

biotechnology industry.

. In response, many large pharmaceutical and biotechnology companies are "offshoring" and/or outsourcing

R&D activities to regions with significant resource and cost advantages, such as China.

. Advantages offered by China include a large talent pool in the chemistry, biology and medical sciences

and other related fields, relatively low-cost labor and capital expenditures, a developed infrastructure and

favorable government incentives providing for utility, land and tax advantages.

Growth plan

. Intends to focus in the near term on successfully expanding service capabilities in chemistry, service

biology and manufacturing.

> Laboratory services

. Beginning in 2007, began to offer preclinical development services, such as

DMPK, general toxicology services, as well as pharmaceutical development services and manufacturing of

clinical trial materials.

. Also intend to expand capacity and facilities. Recently opened the Tianjin facility, adding approximately

130,000 square feet of R&D space, and began the expansion of the Jinshan plant to quadruple the

manufacturing capacity of the plant.

. Planning to construct a preclinical drug safety evaluation center in Suzhou, which WX plans to inaugurate

in 2009.

> Manufacturing segment

Expects the manufacturing segment, which typically has a significantly lower gross margin than the

laboratory services segment, will represent an increasing percentage of net revenues in 2007 and beyond

and consequently may result in WX reporting a lower overall gross margin.

. Moreover, WX expects that the anticipated manufacturing projects at the expanded Jinshan facility will

result in even lower margins as WX evolves its business from small-scale, discrete projects to large scale,

higher-volume projects.

. Also expect margins on manufactured drug products to be adversely impacted by changes effective July 1,

2007 in the PRC's value-added tax, or VAT, credit system.

Intellectual property

In the business of providing drug R&D services, WX's customers generally retain ownership of all

associated intellectual property, including those they provide to WX and those arising from the services

WX provides

Competition

. The pharmaceutical and biotechnology R&D outsourcing market remains highly fragmented. According

to Kalorama Information, no single supplier has more than one percent of the drug discovery outsourcing

market.

. WX competes with industry players in particular service areas, for example with Charles River

Laboratories International, Inc., which recently partnered with Shanghai BioExplorer Co., Ltd., in the

preclinical services area, and Shanghai ChemPartner Co., Ltd. and Bioduro, Inc. in the discovery chemistry

area, but WX believes that it does not compete with any single company across the breadth of its service

offerings.

Use of $108mmm in IPO proceeds from sale of 10mm ADSs

(shareholders intend to sell 3.2mm ADSs)

o US$40 million for the expansion of Jinshan facility,

o US$40 million for the construction of a preclinical drug safety evaluation center in Suzhou,

o balance for general corporate purposes, including working capital, acquisitions and expansion of service

offerings.

===================

Perfect World

PWRD, B-, 8

China online 3D video games

Post-IPO shrs:56mm ADSs equiv

Beijing, China

2006

March, 07*

IPO Mkt

Rev ($mm)

$13

$11

Cap (mm)

Gross Profit %

75%

78%

$728

Profit (loss) $mm

-$4

$5.2

@$13

Profit (loss) %

-27.7%

46.0%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Perfect World (PWRD)

$728

16.1

35

6.2

6.2

21%

Compare & contrast

Mrkt

Price /

Price /

Price /

Price /

Op earn

Compare & contrast

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

multiple

Perfect World (PWRD)

$728

16.1

35

6.2

6.2

34

Game operators

The9 Limited (NCTY)

$1,260

9.0

37

6.8

6.8

34

Shanda Interactive (SNDA)

$2,400

8.7

10

6.8

6.8

21

Game developer

July 16

Netease.com Inc. (NTES)

$2,300

8.3

15

5.6

5.6

14

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

3

2

1

8

ADS offering, five shares per ADS

MMORPG: a massively (or massive) multiplayer online role-playing game

Business

> A leading 3D online game developer and operator in China as measured by the popularity of games in

China in 2006, according to a report published by IDC.

> New business

. Began game development business in 2004, and launched first MMORPG, Perfect World, in January

2006

. Launched other three MMORPGs, Legend of Martial Arts, Perfect World II and Zhu Xian, in September

2006, November 2006 and May 2007

. In the first quarter of 2007, PWRD games recorded approximately 237,000 average concurrent users in

China.

Major Characteristics of the Online Game Market in China.

o Migration to 3D games.

There has been a noticeable trend towards development and operation of 3D online games in China.

Compared with 2D games, 3D settings and characters provide a more realistic representation of real-life

objects and can depict more complex activities and movement. 3D games with enhanced graphics are more

attractive to players, in particular MMORPG players.

o Increasing acceptance of the item-based revenue model.

The item-based revenue model is gaining wider market acceptance. While many of the older games use the

traditional time-based model, many of the newer games are being introduced with the item-based model.

Internet users are more likely to be attracted to playing item-based games since there is no initial charge to

play the game.

. The model also presents players with a personalized and differentiated service portfolio and increases the

ability of online game companies to generate higher revenues per customer.

. According to IDC, in 2006, more than 60% of online game revenues in China were generated from the

item-based model, compared to a very low percentage in 2005.

PWRD's game development platform

. Primarily develops 3D online games based on a proprietary Angelica 3D game engine and game

development platform

. PWRD's game development platform is built on modularized functions which allow PWRD to shorten the

development cycle of 3D MMORPGs to approximately six months for the most recent games and to update

our games frequently with new features.

Revenue models

> Time based

Used a time-based revenue model for the first game, Perfect World, under which players were charged

players based on the time they spend playing the game.

> Item based

. Used an item-based revenue model for Legend of Martial Arts, Perfect World II and Zhu Xian, under

which players can play the games for free, but are charged for purchases of in-game items, such as

performance-enhancing items, clothing, accessories and pets.

. In 2006 and the first quarter of 2007, 46.9% and 86.5%, respectively, of online game operation revenues

were generated through this item-based model.

Distribution

. Distributes physical and virtual prepaid game cards to players in China through a variety of channels,

consisting primarily of a network of 27 third-party distributors of our physical cards and one national

distributor of PWRD's virtual cards.

. Also sells online points through a proprietary E-sales system and the PWRD website.

Licensing

. Although most of revenues are generated in China, has licensed Perfect World II and Legend of Martial

Arts to leading game operators in 11 and seven countries and regions, respectively, including Japan and

Taiwan,

. Ad plans to license games to more countries and regions.

Factors affecting operating results - company specific factors

Including

. Number of online games available in the market, the popularity of PWRD's games, game items compared

with those of competitors,

. Pricing of games and in-game items, the speed at which PWRD develops and launches new online games

and related in-game items, growth of overseas licensing revenues

. Cost of developing, operating and marketing online games.

Online Game Operation Revenues

In 2006 and the first quarter of 2007, substantially all revenues were generated from online game

operations in China.

> First game

. Launched the first game, Perfect World, in January 2006, using the time-based revenue model, and 53.1%,

or RMB52.3 million (US$6.8 million), of online game operation revenues in 2006 were derived from this

game. With respect to games operated under the time-based model, the revenue growth will depend

primarily on the increase in the number of players and their playtime.

. Expects that revenues generated from games operated under the time-based model will decrease as a

percentage of online game operation revenues because PWRD began using the item-based model only in

September 2006 and plans to continue to use this model for new games.

> 2nd and 3rd games

. Launched our second and third games, Legend of Martial Arts and Perfect World II, in late September and

the end of November 2006, respectively, using the item-based revenue model.

. In 2006, 43.8%, or RMB43.1 million (US$5.6 million), and 3.1%, or RMB3.0 million (US$0.4 million),

of online game operation revenues were derived from Legend of Martial Arts and Perfect World II,

respectively.

> 4th game

. Will also adopt the item-based revenue model for the fourth game, Zhu Xian, which was launched in late

May 2007, and plans to adopt the item-based revenue model for all of new games that will be launched in

'2007 and early 2008.

> Item based revenue

With respect to games using the item-based revenue model, the revenue growth will depend primarily on

the increase in the number of players and the average spending of players.

. PWRD expects that revenues derived from games operated under the item-based model will continue to

increase as a percentage of total revenues in the foreseeable future.

> Two new MMORPG games

. PWRD targets to launch two new MMORPGs and a casual game in 2007 and early 2008.

Revenues

. In 2006, launched the first three games and generated revenues of RMB99.4 million (US$12.9 million).

. For the first quarter of 2007, generated revenues of RMB87.2 million (US$11.3 million).

. Expects that revenues will further increase in the near future, driven by the launch of additional games,

increasing monetization of games, and expansion of overseas licensing.

. Online game operation revenues are net of sales discounts and rebates to distributors, which historically

have averaged approximately 16.4% of the face value of prepaid game cards sold to our distributors.

Intellectual Property

. Includes trademarks, trade secrets and domain names in China and copyright and other rights associated

with our websites, game engine, technology platform, self-developed software and other aspects of our

business.

. Relies on trade secret protection, trademark and copyright law, non-competition and confidentiality

agreements with employees, and license agreements with partners, to protect intellectual property rights.

Competition

o online game developers in China, including NetEase, Kingsoft and ZTGame;

o online game operators in China, including Shanda and The9; and

o other competitors, including major Internet portal operators in China, and game developers and operators

in the overseas markets where PWRD offers its games.

Use of $106mm IPO proceeds from sale of 9mm ADSs

(shareholders intend to offer 2.8mm ADSs)

. Expand research and development efforts

. General corporate purposes, including capital expenditures and funding possible future acquisitions.

Tax Issues

> PRC EIT is generally assessed at the rate of 33% of taxable income. Under current PRC rules and

policies, an enterprise qualified both as a "software enterprise" and a "high and new technology enterprise"

is entitled to a preferential EIT rate of 15% and is further entitled to a two-year EIT exemption for the first

two years during which it has cumulative taxable income, and a 50% reduction of its applicable EIT rate for

the succeeding three years. In addition, an enterprise qualified as a "high and new technology enterprise"

located in the Beijing New Industry Development Pilot Zone is entitled to a preferential EIT rate of 15%

and is further entitled to a three-year EIT exemption from either its first year of operation or, if it is

incorporated in the second half of a calendar year, its second year of operation if so selected, and a 50%

reduction of its applicable EIT rate for the succeeding three years.

> PW Network is currently qualified both as a "software enterprise" and a "high and new technology

enterprise" in China and enjoying preferential tax treatments as a result of this status. PW Network did not

have any cumulative taxable income during the period from March 10, 2004 (date of inception to

December 2004 and for the years ended December 31, 2005 and 2006. We expect 2007 and 2008 to be the

first two years during which PW Network has cumulative taxable income. Therefore, PW Network is

expected to be exempted from EIT in 2007 and 2008 and be subject to a 7.5% EIT from 2009 to 2011.

> PW Software is currently qualified as a "high and new technology enterprise" located in the Beijing New

Industry Development Pilot Zone and enjoying preferential tax treatments as a result of this status. PW

Software was incorporated in the second half of 2006, and has elected to be exempted from EIT from 2007

and 2009 and be subject to a 7.5% EIT from 2010 to 2012. However, PW Software and PW Network's

qualifications are subject to an annual or biennial assessment by the relevant government authority in

China. There is no assurance that they will continue to meet the criteria to qualify as "software enterprises"

or "high and new technology enterprises" or that the relevant government authority will not revoke their

preferential tax treatments.

> On March 16, 2007, the National People's Congress of China enacted a new enterprise income tax law,

under which FIEs and domestic companies would be subject to EIT at a uniform rate of 25%. Preferential

tax treatments will continue to be granted to entities that are classified as "high and new technology

enterprises strongly supported by the State" or conduct business in encouraged sectors, whether FIEs or

domestic companies. The new tax law will become effective on January 1, 2008. Under the new tax law,

enterprises that were established and already enjoyed preferential tax treatments before March 16, 2007

will continue to enjoy them (i) in the case of preferential tax rates, for a period of five years from January 1,

2008, or (ii) in the case of preferential tax exemption or reduction for a specified term, until the expiration

of such term. Therefore, PW Network and PW Software will continue to be entitled to the preferential tax

treatments currently enjoyed by them during such transition period

===================

Spreadtrum Com

SPRD, C+, 7

Chinese designer of wireless handset ICs

Post-IPO shrs: 41mm ADSs equiv

Zhangjiang, Shanghai, China

2004

2005

2006

March, 06*

March, 07*

IPO Mkt

Rev ($mm)

$13

$38

$107

$20

$26

Cap (mm)

Gross Profit %

22%

23%

41%

31%

43%

$497

Profit (loss) $mm

-$11

-$12

$14

$0.6

$2.0

@$12

Profit (loss) %

-88.4%

-30.6%

13.4%

3.0%

7.6%

Employees

316

416

576

419

637

*quarter ended March 31

Quarterly results

6-Jun

Sept 06

Dec 06

March 07

Revenue

. Baseband

$12

$16

$23

$21

. Turnkey

$18

$11

$8

$6

Total revenue

$30

$27

$31

$26

Profit ($mm)

$5

$4

$5

$2

Profit % of reve

16%

14%

17%

8%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Spreadtrum Com (SPRD)

$497

4.7

62

3.4

3.5

21%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

2

1

7

Business

. Fabless semiconductor company that designs, develops and markets baseband processor solutions for the

wireless communications market.

. Combines semiconductor design expertise with our software development capabilities to deliver highly

integrated baseband processors with multimedia functionality and power management.

. Have developed solutions based on an open development platform, enabling our customers to develop

customized wireless products that are feature-rich and meet their cost and time-to-market requirements.

SPRD is a recognized leader in the emerging China semiconductor industry as indicated by various third

party awards received that are based, in part, on the technological innovation of SPRD's baseband

semiconductors.

Awards include

. By the China Semiconductor Industry Association as one of the integrated circuit design companies in

China with the highest growth potential for 2005,

. The People's Republic of China National Science and Technology Advancement First Class Award

awarded by the State Council in 2006 and

. The award by the Management Case Center of Peking University and Communications Weekly as one of

the top telecommunications equipment suppliers for 2006.

Industry overview

. The wireless communications market is highly dynamic and represents one of the most important

communications markets in the world.

. According to iSuppli Corporation, or iSuppli, a leading market research firm focused on the electronics

industry, global wireless (mobile handset) subscribers reached 2.2 billion in 2005, and are expected to grow

to 3.7 billion in 2010.

. In particular, China represents the world's largest wireless market, with 487.4 million wireless subscribers

as of April 2007 according to the Ministry of Information Industry.

> The baseband semiconductor

. The baseband semiconductor is the most critical semiconductor component in the wireless handset.

. It is commonly referred to as the engine of a wireless handset, equivalent to the central processing unit of

a computer. According to iSuppli, revenue from worldwide GSM, GPRS, EDGE and WCDMA baseband

semiconductor shipments reached $8.5 billion in 2005 and is expected to grow to $13.1 billion by 2010

. According to iSuppli, the baseband semiconductor market in China is expected to grow from $3.5 billion

in 2005, representing 30.6% of the worldwide market, to $6.8 billion in 2010, representing 41.3% of the

worldwide market.

Customers and concentration

. SPRD's top five customers in 2004, 2005, 2006 and the three months ended March 31, 2007 collectively

accounted for 66.1%, 52.2%, 40.4% and 54.7%, respectively, of revenue.

. Currently sells substantially products to brand manufacturers, independent design houses, or IDHs,

vendors who specialize exclusively in the design of wireless handsets based on customer specifications, and

original design manufacturers, or ODMs, contract manufacturers who use their own designs and intellectual

property to develop and manufacture wireless handsets for customers

Portfolio

. Of highly-integrated baseband processor solutions that support a broad range of wireless communications

standards, including GSM, GPRS and TD-SCDMA, an international 3G standard for wireless

communications promoted by China.

. A baseband processor is the most critical semiconductor component of a wireless handset, responsible for

encoding and decoding wireless communications transmissions, serving as a platform for the handset's

operating system and multimedia applications, managing storage and directing short range connectivity

such as Bluetooth traffic.

. SPRD solutions also offer a wide array of multimedia capabilities such as TV-out, MP3 digital audio

playback, Motion JPEG, MPEG4 and H.264 digital video playback and 64-channel polyphonic ringtone

playback.

Milestones

SPRD's business model has enabled the rapid development of advanced products.

. Within the first 15 months of inception, had fully developed the first series of integrated baseband

semiconductors for the GSM/GPRS market.

. In June 2005, commercially introduced what SPRD believes to be the world's first fully integrated analog

and digital baseband semiconductor with power management and multimedia functionality.

. In the 3G area, has been instrumental in the development, trialing and planned commercial rollout of the

TD-SCDMA standard.

. In April 2004, developed what SPRD believes to be the world's first dual-mode TD-SCDMA/GSM

baseband processor.

. In addition, is an active member of the TD-SCDMA Industry Alliance, which is responsible for

developing and enhancing the standard globally.

> In February 2007, announced development of a TD-SCDMA baseband semiconductor that supports

HSDPA.

. Intends to offer samples of a baseband processor that supports EDGE in the second half of 2007, and are

developing solutions that will support other 3G wireless standards, such as WCDMA/UMTS.

. In addition, working to develop advanced products to further expand the current portfolio, including

solutions that incorporate smart phone functionality, advanced multimedia applications and other

applications such as mobile digital TV, which allows subscribers to receive television transmissions

through their wireless handsets.

3 Months Ended March 31, 2007 Compared to Three Months Ended March 31, 2006

Revenue

Revenue increased by 32.9% to $26.2 million for the three months ended March 31, 2007 from $19.7

million for the same period in 2006.

. This increase was primarily due to an increase in units of baseband semiconductors shipped to 3.7 million

units in the first quarter of 2007 from approximately 722,000 units in the first quarter of 2006, partially

offset by a decline of 61.7% in the average selling price.

. The decline in average selling price was due, in large part, to the change in product mix.

> Basedband semiconductors

Baseband semiconductors, which typically carry lower average selling prices, accounted for 78.7% of total

revenue for the three months ended March 31, 2007 as compared to 24.6% for the same period in 2006.

> Turnkey solutions

Turnkey solutions, which typically carry higher average selling prices, accounted for 21.3% of total

revenue for the three months ended March 31, 2007 as compared to 75.4% for the same period in 2006.

Revenue affected somewhat by seasonality

. Revenue has generally increased from quarter to quarter, although SPRD experienced declines in revenue

in the first quarter of 2007 to $26.2 million from $31.0 million in the fourth quarter of 2006, in the first

quarter of 2006 to $19.7 million from $20.6 million in the fourth quarter of 2005 and in the third quarter of

2006 to $26.7 million from $29.7 million in the second quarter of 2006.

. These quarter to quarter declines in revenue in the first and third quarters of 2006 and the first quarter of

2007 were primarily due to the seasonality factors, which increased revenue in the preceding quarters.

> Baseband semiconductor sales

Revenue from baseband semiconductor sales has generally increased from quarter to quarter since SPRD

commenced large volume shipments in the third quarter of 2005 while revenue from turnkey solution sales

increased from quarter to quarter in 2005 and then decreased from quarter to quarter in 2006 except an

increase in the second quarter of 2006 as compared to the first quarter of 2006.

. These trends are consistent with a shift in focus toward generating revenue from sales of higher margin

baseband semiconductors, which SPRD began to implement in the first quarter of 2006.

> Baseband seasonality

In the first quarter of 2007, revenue from the sale of baseband semiconductors was 9.1% lower than the

fourth quarter of 2006.

. Shipped approximately 3.7 million units of baseband semiconductors in the first quarter of 2007 as

compared to approximately 3.5 million units in the fourth quarter of 2006

. Although the decline in average selling price had a greater impact than the increase in shipping volume.

Competition

The baseband semiconductor industry is highly competitive and dynamic and is characterized by rapid

technological changes, evolving industry standards, price reductions and rapid product obsolescence.

. Currently sells substantially all of SPRD's products to brand manufacturers, IDHs (Independent Design

Houses) and ODMs (Original Design Manufacturers, a contract manufacturer that uses its own designs and

intellectual property)

. Primarily competes in China with baseband processor solutions providers, such as Analog Devices,

Infineon, MediaTek and Texas Instruments.

. SPRD expands its business, it may compete in the future with additional baseband processor solutions

providers, such as Broadcom, Freescale and NXP.

Use of $85.5mm in IPO proceeds

. Working capital and other general corporate purposes, including to finance our growth, develop new

products and fund capital expenditures

. In addition, we may choose to expand our current business through acquisitions of other businesses,

products or technologies.

===================

Yingli Green Energy

YGE, B-, 8

Vertically integrated photovoltaic prod

Post-IPO shrs: 129m

Bauding, China

2004

2005

2006

March, 07*

IPO Mkt

Rev ($mm)

$212

$56

Cap (mm)

Gross Profit %

21%

30%

28%

21%

$1,548

Operating Income %

11%

23%

22%

10%

@$12

Profit (loss) $mm

$34

$1.1

Profit (loss) %

5.1%

18.2%

16.0%

1.9%

*quarter ending March 31

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Yingli Green Energy YGE

$1,548

7.0

358

3.1

3.3

22%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

3

2

1

8

Business

. One of the leading vertically integrated photovoltaic, or PV, product manufacturers in China.

. End-products include PV modules and PV systems in different sizes and power outputs.