China Kunda

Shares today dropped to a low of 19.5 cents... a level not shown since 18th Aug 2009. Westcomb recently initiated coverage on the stock (4 Jan) with a target price of 36 cents. www.nextinsight.net/content/view/1860/60 1 March 2010 - China Kunda enters into RMB50 million JV to manufacture auto components for China market. JV will supply a variety of auto components to end customer, Beijing Hyundai, 5th largest automaker by sales in January. Beijing Automobile Component is set to benefit from the ready sales channels inherited from Beijing Baiju’s years of dealing with Beijing Mobis Zhong Che Automobile Component Co., Ltd, which is a major automobile component supplier of Beijing Hyundai Automobile Co., Ltd Sales at the JV’s major end customer, Beijing Hyundai, have also been brisk coming into 2010, with sales reaching 56,800 units in the month. 12 November 2009 - China Kunda records 1H2010 net profit of HK$20.5 million on improving business conditions. Net profit decreased by 25.6% compared to 1H2009, but increased by 89.0% compared to 2H2009 Inventory of the Group increased from HK$7.8 million as at 31 March 2009 to HK$24.1 million as at 30 September 2009, as KMS carries out construction on its mould orders on-hand, following commencement of operations in November 2008. 29 September 2009 – proposed placement of new shares to strategic investors to raise net proceeds of S$7.15 million at S$0.22 The Company had entered into a placement agreement to place out 32 million new shares to Barron Partners LP and other sophisticated investors. The Company understands that US-based institutional investor, Barron Partners LP (“Barron Partners”),Mr Andrew Barron Worden (Chairman and CEO of Barron Partners), Golden1177 LP, RossPlan LP,XWRT2 LP, JBWA2 LP, SBMT2 LP, GODFREY2468 LP, KAUFMAN2 LP, 2DANESRUNNIN LP,LEEMADISON9189 LP and Fernando Oscar Liu (Collectively known as the “Investors”) had agreed in aggregate to purchase 8,500,000 ordinary shares from Mr Cai Kaoqun. Barron Partners is a private investment fund based in New York with approximately US$100 million in assets and specializes in micro-cap companies. Its investment criteria for targeted companies include strength of management team, sustainability and growth potential of future revenue, cash flow and earnings, competitive advantages, excitement and uniqueness of business, high profit margins and high returns on capital. The Company further understands that Mr Cai Kaoqun had personally furnished the Investors with a profit warranty (“Profit Warranty”) with regards to the Company’s performance for the financial year ending 31 March 2010 (“FY2010”) and 31 March 2011 (“FY2011”) and that pursuant to the Profit Warranty, Mr Cai Kaoqun is required to transfer up to 5,000,000 shares (the “Profit Warranty Shares”) held by him in the capital of the Company in the event that there is a shortfall in the level of the Company’s profits which he has warranted.