developments in china, page-3

considering also below

China Joint Venture

Document date: Thu 30 Jan 2003 Published: Thu 30 Jan 2003 15:24:48
Document No: 286210 Document part: A
Market Flag: Y
Classification: Other
IMT HOLDINGS LIMITED 2003-01-30 ASX-SIGNAL-G

HOMEX - Sydney

+++++++++++++++++++++++++
IMT has entered into an agreement to establish a joint venture for
the manufacture and sale of Phoslock in China and for the export of
Phoslock outside China. IMT will hold 20% of the JV.

The other two members of the joint venture are as follows:

* Yalong Metallurgy (Group) Company Limited. This is a manufacturing
and distribution company specialising in minerals and metals and will
hold 29% of the JV. Its turnover is approximately A$40,000,000 and
employs approximately 1000 people.

* International Environment Technology Solutions Pty Limited
("IETS"). This company is the licensee for Phoslock in China and will
hold 51% of the JV. As disclosed previously Messrs Respinger, Garman
and Liu (directors of IMT) are associated with IETS.

The JV will undertake the following:

1. The sourcing of materials in China.

2. The construction of Phoslock manufacturing plant in Kunming
initially and in other cities in China as the business develops. The
Kunming plant will have sufficient capacity to meet the initial
demand in China and export markets.

3. The manufacturing, packaging and logistical management of
Phoslock.

4. The marketing, distribution and application of Phoslock in China.

The manufacture of Phoslock will be less expensive in China than in
most other countries where Phoslock will be used, including Australia
and the US. Being able to export Phoslock from China will be of
significant benefit to future licencees as it will eliminate the need
to establish their own manufacturing facilities which would otherwise
be a major undertaking and duplication of resources. This will make
the sale of licenses more attractive and will reduce the lead time
for those new licensed territories being operational.


For further details, please contact Brett Crowley, CEO, on
02 96980622.

previous announcement could be better, it should state clearly the facts

1. revenue ==> pure profit ?
2. revenue ==> stated figure is ONLY the part IMT is geting in 100%, it's not a total, so no need to calculate 20% JV part from it ?

'cose if it's not as the above, then
revenue = cost + profit (in usual sense)
and who pays the cost, if JV then IMT is obliged to 20%

company has currently 167k cash
spent total 326k in a last quarter
293k on staff
can they afford next quarterly rent/electrical/phone bill ?

"Dianchi Lake is 40 km long and eight km wide with water storage of 1.5 billion cubic meters. It is the major source of water for industrial and agricultural use in Kunming, capital of Yunnan, and also plays a key role in balancing the city's environment. "

40km x 8km=320sqkm

1.5 billion cubic meters x A$ 5.25/cubic meter = mamma mia (that's what VTI missed)