Julian Sandt - CEO of Orchid Capital

Julian Sandt holds an MBA from the Koblenz Business School in Germany (WHU Koblenz) and held various positions with Commerzbank in Europe and Singapore over the period 1993 to 2000. Last position held was Manager, Capital Markets and Syndications. From 2000-2004 he has been the Managing Partner of TFG Venture Capital (Asia) Pte Ltd in Singapore, then Senior Partner with Aegis Private Capital Pte Ltd in Singapore until assuming the position of CEO of Orchid Capital Ltd. in September 2005.

Orchid Capital

:: Company Profile

Orchid Capital has recorded a significant profit in the financial year per 30.06.2007. Major contributors were capital gains on our investments in Asia and a significant reduction of operating costs.

The company has, since late 2005, embarked on a new strategy. The focus is the identification of companies with the potential to list on a stock exchange in the near future. We are looking at profitable and expanding businesses, which benefit from the most important economic revolution of the next decades: The rise of the Emerging Markets.

We are convinced that, not only in the short run, but also in the long-term, Asia will generate high returns for equity investors. Asia has half of the world’s population and is the fastest growing region on the planet, but offers Pre-IPO-stage investors still relatively low equity valuations.

Our Asian Portfolio

Orchid’s principal investment is a stake of about 10% in a leading producer of woodworking machines, Gongyou Machines Ltd. (“Gongyou”), based in Weihai (China). Orchid was the lead investor in the pre-IPO-investment round in Summer 2006. Gongyou was the first-ever Chinese company with a primary listing in Germany, an event extensively covered by German media. Gongyou is a sizable group with more than 1300 staff and with outstanding competitive advantages: Low production costs, significant economies of scale based on an annual output of about half a million machines, and a product range of more than 200 machine types, developed by an R&D team of 150 engineers. This enables Gongyou to penetrate more and more export markets, mainly emerging markets like ASEAN, Russia and Latin America. These are regions with a booming furniture and construction industry. Gongyou has been profitable for many years and recorded a net profit of more than AU$ 5 million in the financial year which ended on 30.06.2006. The proceeds from the placement in Germany enables Gongyou to significantly expand its production capacity and therefore to cater for growing domestic and international demand. More information on Gongyou can be found on www.gongyoumachines.com.

Our second Pre-IPO investment in RGM Entertainment Pte. Ltd., a Singapore-based Asian media group (www.rgm.com.sg) has been concluded just after the end of the reporting period. The Australian subsidiary of RGM has started as a successful talent agency in 1982. Currently, RGM is executive producer of several movies with a high calibre international cast. We are looking forward to the premiere of these movies.

Xing Ling International Pte. Ltd, a pharma distributor majority-owned by Orchid, recorded a loss in the range of AU$ 100,000 in the past financial period. The approval process for various products required investments in form of time and money. Still, the revenue is constantly rising, and we expect, based on recent monthly trends, that Xing Ling will contribute a profit to the group already in the actual financial period. Several contracts with chain stores could be successfully closed, and a significant number of new products with be launched in H2 2007.

Orchid is constantly evaluating and negotiating investment opportunities in Asia, seeking to offer its shareholders the best possible return.