cima 兴业投资前4页.doc

Investment in HY HY is an established Canadian based manufacturer and on-line retailer in children’s toys. One of HY’s top sellers is a highly sophisticated video game called the Space Warrior for kids over 10. HY invests heavily in research development and its video games are recognized as pioneering and price competitive as similar Japanese products in the market. HY also enjoys a substantial market share in many Asian markets such as Japan, Korea, Malaysia, Singapore, Taiwan and Hong Kong, in addition to the traditional European North American markets. HY recently announced its latest version of video game called “The Super Space Warrior”. The company regarded this as a breakthrough of all existing video games by having a distinctive 3D effect compatible on all cellular phones, TVs and computers. HY’s RD center is located in Toronto employing over 100 IT specialists and around 500 supportive staff. The company is listed in Toronto Stock Exchange trading at C$0.11 (Canadian 11 cents) just last Friday. Its stock price, however, has been pummeled since last year. In the last 45 days, the companys trading range has been between C$0.091 and C$0.109. Its 52 week low is C$0.09. Its 52 week high is C$0.275 and its market cap currently sits at roughly C$4.1 million. Trading loss has been recorded for the first time since incorporated, and in the last financial year, HY has an unaudited loss of C$1.03 million. Despite HY is one of Jot’s seven largest customers, the two companies operate as strategic partners. Among all other suppliers of HY, Jot supplies one important component of the Space Warrior -- the Space Leaser (or the Joystick), marketed and sold under separate packages and in different forms. It is always the hope of Jon Grun, the Managing Director, that Jot can be more “associated” with HY’s latest development -- such as involve in the development of the Super Space Warrior, participate on HY’s technical and research to improve Jot’s product quality, and achiev