VOC Vision OP China

    RNS Number : 3661H
  Vision Opportunity China Fund Ltd
  04 November 2008
   

    NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES,
    CANADA, AUSTRALIA, REPUBLIC OF SOUTH AFRICA OR JAPAN


    Vision Opportunity China Fund Limited

    New Investment

    Vision Opportunity China Fund Limited ("VOC") (AIM:VOC.L) today announces it has invested $7,000,000 as a part of a $15,000,000
financing for Lihua International, Inc ("Lihua"). Lihua conducts its businesses through two subsidiaries in the People's Republic of China:
Danyang Lihua Electron Co., Ltd ("Lihua Electron") and Jiangsu Lihua Copper Industry Co., Ltd ("Lihua Copper"). Lihua Electron is a leading
manufacturer of bimetallic composite conductor wires, such as copper clad aluminum ("CCA") fine wire, CCA magnet wire and tin plated wire,
which are used in consumer electronics, home appliances, automotive and specialty cable industries. Lihua Copper was established to enter
the business of manufacture and sale of low-oxygen content copper from recycled scrap copper. For the six months ended 30 June 2008, Lihua
achieved $24.8 million of revenue and $5.8 million net profit, an increase of 68% in revenue and 73% in net profit from the same period last
year. For the fiscal year ended 31 December 2007, Lihua had revenue of $32.7 million and net profit of $7.7 million, an increase of 108% in revenue and 71% in net profit from fiscal year ended
31 December 2006. 

In return for its investment, VOC received the following:
    (a) 3,181,818 Series A Convertible Preferred shares convertible into 3,181,818 shares of Lihua's Common Stock at a conversion price of
$2.20 per share; and
    (b) 5 year Series A Warrants to purchase up to 700,000 shares of Lihua's Common Stock at an exercise price of $3.50 per share.

    This transaction will be described in more detail in an 8-K and other supporting documents to be filed by Lihua with the Securities and
Exchange Commission.

    "As a leader in the CCA magnet wire industry, Lihua Electron is poised to grow as CCA wire provides an effective, low-cost substitute
for copper wire to a large number of cost-conscious customers. We are also excited about Lihua's expansion into the scrap copper recycling
business. With its proprietary technology and favorable Value Added Tax treatment, Lihua is expected to generate substantially higher
margins than its competitors," stated Adam Benowitz, the portfolio manager of VOC at Vision Capital Advisors, LLC.

    Enquiries to:

    Vision Opportunity China Fund Limited
    David Benway, Director / Adam Benowitz, Portfolio Manager
    www.vocfund.com/ Tel: +1 (212) 849 8225

    Fairfax I.S. PLC
    Gillian McCarthy / James King Tel: +44 (0) 20 7598 5368

    Bankside Consultants Limited
    Simon Rothschild / Oliver Winters Tel: +44 (0) 20 7367 8888

    NOTE TO EDITORS

    Vision Opportunity China Fund Limited
    Vision Opportunity China Fund Limited ("VOC") is a closed-ended listed fund traded on AIM.  VOC primarily invests directly in listed
companies with operations principally within Greater China.  Greater China is a collective term for the territories administered by the
People's Republic of China, those administered by the Republic of China and Singapore.        

    Lihua International, Inc 
    Lihua International, Inc is the holding company for Lihua Electron and Lihua Copper.  Lihua Electron is engaged in the manufacturing and
sale of bimetallic composite conductor wires, such as copper clad aluminum ("CCA") fine wire, CCA tin plated wire and CCA magnet wire. 
Lihua Copper was established to enter the business of manufacture and sale of low-oxygen content copper from recycled scrap copper. Lihua's
customers include distributors in the wire and cable industries as well as manufacturers in the electric, telecommunications, utility and
automotive industries.  Additional information on Lihua can be obtained on the Company's website, http://www.dylihua.com/1e.htm.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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