LONDON ASIA CAPITAL PLC ('London Asia' or the 'Company')
Record Profits From Chinese Investment

We are delighted to announce that Beijing Success Technology Co Ltd ('Success'),
the Chinese financial software company in which London Asia has a 25% stake, has
reported audited profits after tax for the six months ended 30th June 2003 of
600,000, giving a profit after tax for the twelve months ended 30th June 2003
of over 1.2m. These results show considerable growth in both turnover and
profits as a result of Success's expansion of its sales network into cities
across China.
When the Company took its stake in Success in November 2002, it was granted an
option to increase its stake in Success to 51%, on payment of 2.36m, with the
consideration payable one third in cash and two thirds in London Asia shares at
a price of 10p per share. The original investment in Success totalled 163,000,
of which half was paid in London Asia shares, so that the total investment post
exercise of option will amount to approximately 2.5m, valuing the Success
business at only 4.95m, a multiple of only 3.8 times the profits to June 2003.

The Company has hired Cindy Lam as project manager in it's London office to
assist in the exercise of the Success option and the review of investment
opportunities in China. Ms Lam is originally from Hong Kong where she worked
for J.P Morgan Securities and JP Morgan Fleming Asset Management as Project
Manager, her responsibilities including project managing the implementation of
new IT systems. She has previously worked for EDS/Nedcor, Banque National de
Paris and the Hong Kong Government. Ms Lam has a degree in Computer Science, an
MBA, and speaks English, French, Mandarin and Cantonese.

Said Simon Littlewood, Chief Executive of London Asia: 'Success has
continued to grow revenue and profits, demonstrating that with the right
management team and product, it is possible to tap into the vast potential of
the Chinese market. Success is an example of the profitable, high growth
companies that the Company seeks to work with. We are continuing our due
diligence on a number of other potential investments in China.

Simon Littlewood, chief executive of London Asia argues that many local entrepreneurs are making fortunes as software and high-tech companies double turnover year after year and still fail to meet surging demand. Medium sized private companies in China are maintaining annual profits growth of 30 to 50 percent. London Asia can buy long term stakes at price earnings multiples of 3 to 5.

Littlewood claims there are now 16 million day traders in the People’s Republic.

London Asia's list of investments:

Beijing Success - financial analysis tools
Temima China Investment Banking Group - corporate finance and investment activities within China
Beijing Biao Qi Culture Spreading Ltd - publishing, media and film
Beijing Biao Qi Advertisement Ltd - advertising.
EuropAsia Education plc - UK AIM listed investor in and operator of education businesses in Europe and Asia
Metasource - NASDAQ BB listed
MeanFiddler - UK AIM listed
Prestige Publishing - UK AIM listed
Intelliplus - UK AIM listed
ASAP International - UK OFEX listed
Unlisted Companies
Sportalasia
Puca

Current spread is amazingly close. Barclays are quoting 12.04p sell and 12.08 buy. A couple of buys have just gone through at 12.10p but are showing as sells due to screen spreads of 12p to 12.25p. Interesting!

As far as I can tell we have at least 5 financial institutions who could be involved with that placing of stock. Four are known shareholders and if the Mail is correct then we can include Marlborough as well. They are therefore Marlborough, Gartmore, Isis, Throgmorton and Framlington. I will be interested to see the RNS' when they are released perhaps today or early next week.

Historical Prices
Monthly averages for 2004

Date Open High Low Close Avg Vol Adj Close*
Nov-04 12.00 12.50 10.75 12.00 839,504 12.00
Oct-04 10.75 13.75 9.75 12.06 1,211,925 12.06
Sep-04 11.50 11.50 10.75 10.16 269,953 10.16
Aug-04 13.50 13.50 10.75 11.15 187,523 11.15
Jul-04 14.25 14.25 13.00 13.40 180,657 13.40
Jun-04 14.75 15.60 13.25 14.15 64,943 14.15
May-04 17.00 17.00 14.50 14.00 82,586 14.00
Apr-04 17.75 19.25 16.25 16.25 177,172 16.25
Mar-04 19.00 20.00 16.50 17.35 106,669 17.35
Feb-04 17.75 20.50 16.00 18.25 216,838 18.25
Jan-04 19.00 19.75 16.00 17.18 403,486 17.18

The markets turned in the Spring of 2003, since when we have seen people pile into tech stocks on the back of their recovery from the massive loss of faith from the market's peak in 2000. This was followed by a rush to buy into oil minnows on the back of another middle-east crisis and the explosive growth and subsequent demand from China. These oil stocks are now at highly inflated levels and like all bubbles cannot be sustained for ever. Therefore where is the obvious move for hot money? Well it's staring us in the face. Need I say more?

LDC is currently 17th on the leaderboard

Monday's Constant Gainers & Losers
MoneyAM
Stanelco, London Asia Capital, Cranswick, Mice Group, Torotrak, Floors 2 Go, Jarvis, ITM Power, Elan, Autonomy, UKBetting, WH Smith and Dixons in focus.....

Notable constant gainers over five days include Stanelco, now up 50% at 6p following their Asda contract news last week.

London Asia Capital has added 18.18% at 13p after raising 11m in a placing last week to fund expansion in China.

Cranswick has now gained 11.56% over the period at 429.5p following a recent upgrade from Panmure.

Mice Group is 9.8% ahead at 56p since announcing the appointment of Brian Shepherd as the new CEO last week.

Notable constant gainers over four days include Torotrak, up 38.27% at 56p with today's interim results showing narrowing losses and a six-fold increase in revenue.

Floors 2 Go is 17.7% better at 66.5p, helped by a major share purchase by the Chairman late last week.

Notable constant losers over five days include Jarvis, 17.24% weaker at 12p as confidence in its future continues to wane.

ITM Power is now 11.77% worse at 75p and Elan Corporation has slipped 10.14% to 21.1p.

Autonomy Corporation has slumped 8.43% to 160.25p with UKBetting down 7.8% at 44.25p.

WH Smith is 7.42% lower at 213p since last week's downgrade by broker Evolution.

The most notable constant loser over four days is Dixons Group, down 9.45% at 151p after a disappointing trading update

Following that RNS, so far we know that Throgmorton has reported an increased holding and Barnard has come on board. They account for around 20% of that placing, so we still have plenty to discover.

At the last count we had Gartmore, Isis, Throgmorton and Framlington with notifiable interests and the Daily Mail seems confident that Marlborough has joined in.

We can expect further announcements tomorrow!

2005 is widely tipped to be the year that China's undoubted promise is turned into reality , i.e. large, profit making companies that can compete with the best. LDC seems well placed to take advantage of this.

The following is taken from a Fidelity Ad for their China Focus Fund:

1. China is the #1 market for mobile phones - over 300 million people own a handset

2. China manufactures over $60 billion dollars worth of consumer electronics - more than Western Europe

3. 43% of global cement capacity is consumed by China

4. China has the highest number of households with digital TV

5. Over 1000 universities provide China with nearly one million new graduates each year, 38 % of whom are engineers

I am not pushing Fidelity or indeed LDC but it shows why at least some of your portfolio should be invested in China. Thanks to Fidelity for the above.

SOVGEM (SOV) IS A PRIVATE EQUITY FIRM WITH INTERESTS IN CHINA.ITS AN EXCELLENT OPPORTUNITY FOR THOSE INTERESTED.

Sovgem:

Hugh de Lusignan, Chief Executive Officer and co-founder of SovGEM, said: We are delighted that the AIM flotation of the Company has been completed successfully and it is gratifying to witness such high levels of investor interest. A number of blue-chip institutions have invested in SovGEM and they join a diverse investor base from around the world. We look forward to working with our new shareholders in the future.

SovGEM is a newly incorporated Jersey public limited liability company established principally for the purpose of making investments in Chinese small and mid cap companies proposing to float on non- Chinese stock markets, particularly in the US. Occasionally, the Company may also make investments in quoted Chinese companies and in companies in emerging markets other than China. SovGEM has entered into an agreement (the Benchmark Agreement) (with an initial term of five years) with Benchmark Capital & Finance, Inc. (Benchmark) . Under the Benchmark Agreement, Benchmark will provide opportunities on an exclusive basis to SovGEM to invest in Chinese companies which are expected to float within the subsequent three to six months. Further details of the Benchmark Agreement are set out in the Admission Document.



I HOPE THAT THIS IS OF USE FOR THOSE OF YOU INTERESTED IN HAVING ABIT OF VARIETY AND INVESTING IN THE EMERGING MARKETS AND IN PARTICULAR CHINA

Another drip feed of good news.

Another two great pieces of news , today and previously on the 18th. London Asia is starting to become a big player in the market to develop China's infrastructure.

I am in agreement with you there Jim. I intend to dip my toe in tomorrow.Results are due soon, do you know the date?
thanks, tau.

their website says april but no firm date given

another positive RNS. Slowly but surely they are buiding a substantial portfolio.

LDC is becoming the first stop for Chinese companies wishing to raise capital. They obviously have a very strong base there and I am sure that there will be plenty more good news.

2004 results next Monday - 25 April

Strong set of results. Looking very healthy for the future. Excellent to see LDC in profit already (0.33m vs -0.16m) with a nice spread of investments. Particularly liked this part:
'As an investment company, we show our investments at original cost rather than
actual value, and no account is taken of the profits these investments
generated. We only account for the management fees, interest and dividend income
received from them, and the profit on sale when the investment is realized.'

I'm with you - good solid results, a move into profits and a very positive outlook. And a very sensible way of valuing investments. I expect a lot more from LDC of the next couple of years.