China Is Expected To Win The Big Gamble By Surging Profits.

China's trend of ownership and operation of Kappa brand in the mainland and Macao (HK).

3818) the results released recently showed that the company's sales in 2007 increased by 99.2% compared with the same period last year, and net profit increased by 139.4%, reaching 734 million yuan.

Morgan Stanley, a famous investment bank, made a fortune in China's trend: before the listing, it invested $38 million in the company, occupying 20% of its capital stock.

After the listing of China's stock market, diluted by share capital, Morgan Stanley still accounts for 11.29% of its total share capital after selling 29 million 100 thousand shares. After the listing has received a high return, the interest rate in China will bring another 7 million yuan to Morgan Stanley, which will earn another 7 million yuan.

China's move and Morgan Stanley's "betting agreement" have also attracted market attention: China's 2008 profit target is US $49 million 700 thousand.

If it fails to achieve this goal, the main shareholder will pfer the issued capital stock to more than 20% at the symbolic cost of $1; if the target is lower than 15%, it will have to pfer the 17.6% stake to the company as at June 29th; on the contrary, the group's profit will exceed 55 million 900 thousand dollars, and the company will pfer 1% of the issued share capital to the other party.

According to China's 2007 earnings report, if there is no big change in macro environment and internal operation, it is expected to win the gamble with big Molo.