CHINA FINANCE, INC.

CHINA FINANCE, INC.

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Company Overview
China Finance, Inc. (CFI) is a Chinese financial services company whose primary business is providing guarantees to China’s large and rapidly growing class of small and medium size enterprises (SMEs) when they seek access to capital or successfully list on U.S. stock exchanges. China Finance, headquartered in Shenzhen, China, was incorporated in 2000 in the state of Utah.
In a typical transaction, CFI provides surety guarantee services that seek to reduce or eliminate the financial risks associated with the substantial expenses an SME incurs in pursuing a merger or other transaction with a U.S. reporting company or otherwise seeking entry into the U.S. capital markets system. CFI’s clients include China Digital Communication Group and Shenzhen Chasetop Technology Limited.
CFI operates two business segments: Surety Guarantee, which provides surety guarantees to Chinese SMEs seeking to be acquired by a United States reporting company in a reverse merger or mergers and acquisitions transaction; and Loan Guarantee, which provides guarantees to SMEs and individuals in obtaining loans from a Chinese bank for their business operations and personal assets. CFI is one of the leading financial guarantee companies in China.
CFI’s partner, Onanma Services Limited, is a provider of consulting services for corporate mergers and acquisitions, initial public offering and related transactions in Hong Kong.
Business Summary
China Finance, Inc., through its wholly owned subsidiary, Shenzhen Hua Yin Guaranty and Investment Limited Liability Corporation (SHY), is engaged in providing surety guarantees for privately owned small and medium enterprises (SMEs) (or operating companies) in the People’s Republic of China entering into transactions, whereby the SME will be acquired by a publicly traded United States reporting company in a reverse merger or other merger and acquisition transaction; providing loan guarantees to assist SMEs and individuals in China in obtaining loans from Chinese banks for business operations and/or personal use, and making direct loans to SMEs for business operations. In addition, the Company is seeking direct investments (including, without limitation, controlling investments) in SMEs that would be made through the Company’s wholly owned subsidiary, Value Global International Limited.
Description and history
China Finance, Inc., incorporated on March 28, 2000, through its wholly owned subsidiary, Shenzhen Hua Yin Guaranty and Investment Limited Liability Corporation (SHY), is engaged in providing surety guarantees for privately owned small and medium enterprises (SMEs) (or operating companies) in the People’s Republic of China entering into transactions, whereby the SME will be acquired by a publicly traded United States reporting company in a reverse merger or other merger and acquisition transaction; providing loan guarantees to assist SMEs and individuals in China in obtaining loans from Chinese banks for business operations and/or personal use, and making direct loans to SMEs for business operations. In addition, the Company is seeking direct investments (including, without limitation, controlling investments) in SMEs that would be made through the Company’s wholly owned subsidiary, Value Global International Limited.

Surety Guarantees

The Company provides surety guarantee services to Chinese SMEs seeking to become publicly traded companies in the United States by being acquired by a United States reporting company in a reverse merger or other mergers and acquisition transaction. The surety guarantee business generates revenues through fees, which typically are based on a percentage of the transaction. Although the Company may be paid in cash for its surety guarantee services, the Company generally expects that it will receive compensation for its surety guarantee services in the form of stock from client companies (Payment Securities). The Company’s clients generally pay for the Company’s surety guarantee services with Payment Securities.

Loan Guarantees

The Company provides guarantees to SMEs and individuals obtaining loans from Chinese banks for their business operations and/or personal use. In exchange for the Company’s guarantee services, the borrower pays the Company a certain percentage of the loan amount as an upfront loan guarantee fee, however, the Company may also receive periodic fee payments for its loan guarantees. Loan maturities for loans guaranteed by the Company will generally range from 6 months to 5 years, and are secured by bank deposits made by the Company. If a borrower fails to fulfill its obligations to a lender, the bank will take possession of the Company’s deposit.

Loans

The Company may make loans to SMEs from time to time (the Loans). In general, the Company expects its Loans will typically be made to SMEs, to which it has provided or will provide surety guarantee services. To the extent Loans are made to SMEs to which the Company provides guarantee services, the Loans may be made before or after the reverse merger transactions are consummated.

Other Services

The Company may provide Services to SMEs, to which it has provided or will provide surety guarantee, loan or other services, or to other SMEs that it has not worked with previously. The Company’s business and introduction services may include introducing SMEs to third-party service providers, such as auditors, lawyers, consultants and other service professionals, as well as business contacts. The Company’s translation and facilities access services will be provided on an as-needed basis.

Business Line
A financial services company whose primary business is providing guarantees
Subsidiary

Advisor
ROTENBERG & COMPANY, LLP
IPO date

US SIC Code
6351
Company Address
Suite 615
111, Pavonia Avenue
City province or state postal code
07310, JERSEY CITY, NJ
Phone: +1 201 216 0880
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.chinafinanceinc.com