China Manufacturing IPO: Asia Time Corporation

Asia Time Corporation (TYM) is a distributor of watch movement components used in watch manufacturing. The company plans to go public this week.

All quotations are from the company's most recent S-1 filings with links provided.

Business Overview (from prospectus)

We are a distributor of watch movements components used in the manufacture and assembly of watches to a wide variety of timepiece manufacturers. Our core customer base consists primarily of large wholesalers, online retailers and small and medium-sized watch manufacturers that produce watches primarily for sale to customers in Hong Kong and China. To a lesser extent, we design watches for manufacturers and exporters of watches and manufacture and distribute complete watches primarily to online retailers and internet marketers.

Offering: 0.7 million shares at $3.00 - $4.00 per share. Net proceeds of approximately $1.8 million will be used for expansion of operations, working capital, and general corporate purposes.

Lead Underwriters: Westpark Capital

Financial Highlights:

Net sales for the three months ended September 30, 2007 was $23.0 million as compared to $19.6 million for the comparable period in 2006, an increase of $3.3 million, or 16.9%... Cost of sales for the three months ended September 30, 2007 was $18.4 million, or 80.1% of net sales, as compared to $17.3 million, or 88.2% of net sales, for the same period in 2006... Gross profit for the three months ended September 30, 2007 was $4.6 million, or 19.9% of net sales, compared to $2.3 million, or 11.8% of net sales for the same period in 2006...

Competition:

The watch movement distribution industry is highly competitive, primarily with respect to price, product availability, knowledge of product and quality of service. We believe that the breadth of our customer base, services and product lines, our level of technical expertise and the overall quality of our services are particularly important to our competitive position. We compete with large distributors such as National Electronics Holding Ltd., as well as mid-size distributors, such as PTS Resources Ltd., many of whom distribute the same or competitive products as we do.

Our major competitors in complete watches include designer brands from overseas, China and Hong Kong such as Guess, Calvin Klein and Dolce & Gabanna.