This Company, through its subsidiaries and certain contractual arrangements, controls a microcredit company that provides direct loans and loan guarantee services to small-to-medium sized businesses (“SMEs”), farmers and individuals in the city of Wujiang, Jiangsu Province, China. Jiangsu, which is an eastern coastal province, has among the highest population density in China and is home to many of the world’s leading exporters of electronic equipment, chemicals and textiles. As a result, the city of Wujiang ranks as one of the most economically successful cities in China.
SMEs, both in Jiangsu and other provinces in China, have historically been an under-served segment of the Chinese banking market. Due to the significant demand from SMEs, the number of microcredit companies in China is increasing rapidly.
Since the Company’s inception in October 2008, it has developed a large and growing number of borrowers in Wujiang City. As of March 31, 2013, it has built an $88.5 million portfolio of direct loans to 249 borrowers and guaranteed 146 loans aggregating $84.1 million for 115 borrowers.
The Company plans to offer 2,700,000 shares of our common stock at an expected initial public offering price of shares between $6.00 and $7.00 per share. Currently, no public market exists for the Company’s common stock. It has applied for the listing of the shares on the NASDAQ Capital Market, however no assurance can be given that the application will be approved. The Company may not sell these securities until its registration statement filed with the Securities and Exchange Commission is effective.