Perhaps only in China can investors find companies engaged in online video sharing also doing brisk business in mining of minerals. A recent press release issued by China YouTV (CYTV.OB) is yet another reason why I only choose to write about China’s tech world, and keep my money far away from the Middle Kingdom and its many dubious listed technology companies.
On March 5, 2007, Admax Resources changed its name to China YouTV Corporation. I’m not joking when I relay the following from the company’s release: “The company intends to participate in the fast growing video sharing web site market in China, and at the same time, to continue its exploration of mineral properties in British Columbia, Canada.”
Is somebody at China YouTV sniffing sulfur deposits?! Gao Zhenyong is the president of the company, but where’s the board of directors to ensure the company stays on task? I guess in a poetic sense the two businesses are synonymous: mining of video data with bots and scripts on the one hand, and extraction of precious minerals on the other.
No, sorry, it still doesn’t make sense.
Here’s my favorite part of their press release, and it should be printed and pasted to the walls of all would-be Chinapreneurs, China consultants, trade associations, and investors:
“If the Company finds mineralized material and it is economically feasible to remove the mineralized material, it will attempt to raise additional money through a subsequent private placement, public offering or through loans. If the Company needs additional cash and can’t raise it, it will either have to suspend activities until it is able to raise the cash, or cease activities entirely. If the Company can’t find any mineralized material or it is not economically feasible to remove the mineralized material, it will have to cease activities and focus on the new market: the video sharing industry in China.”
The minerals mining sector and the video sharing sector are so different that I think it’s rather beautiful that this wayward company is honestly relaying to potential investors and (ouch!) current investors their ridiculous intentions.
But Gao is still hoping for rich rewards. He has inked a deal with Huaju Network, a Chinese Internet video sharing company and says, “Through this joint venture, we hope the new project could generate more returns to all the shareholders, and also, the new joint venture company could become the Chinese YouTube in China’s video sharing industry.”
There are many other Chinese companies like China YouTV that are trying to build huge conglomerates on the shoulders of nothing. All of these bubble businesses will burst. I hope either Gao or investors come to their senses soon and realize that they might not be making money on either of their two ventures.
(Perry Wu of ChinaTechNews)
Another very nice China ripoff of YouTube is CNBoo
Established in May 2005, and further funded by HuaJu Network in July 2006, CnBoo.com
developed from a simple video network site, to become the leader in online video and the
premier destination to watch and share original videos in China.