By Perry Wu
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.

About the author:
Perry Wu is a writer and correspondent for ChinaTechNews.com and can be reached here at the site. Perry Wu does not hold any positions, long or short, on any of the Chinese or American company securities mentioned in this article.

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13 Responses to “The Chinese YouTube Company That Wants To Keep Mining”

1. By AP Capital – March 15th, 2007 at 6:38 am

   Thank you for expressing your sentiment. I wish other companies were investigated in China to find how they make their money and what they are doing with investor money. Do you have other companies you'd like to discuss??

2. By mark booker – March 16th, 2007 at 7:29 am

   Ha ha. I have to laugh when I read this news. Yes Chinese internet and website companies are by-and-large copycats of foreign company business models. Sohu.com, Sina.com, and Tom.com are twins to Yahoo.com and now a mining company wants to do video sharing that I think all video sharing companies in China should be embarrassed and ashamed.

3. By tyler – March 16th, 2007 at 11:40 am

   Anyone know where this China Youtv website is located? I can't find the company website. Is this company a fraud?

4. By James Tan – March 17th, 2007 at 8:26 am

   YouTube isn't making any money so I say "Good Luck" to this Chinese website company!

   I hear that there already have been other decent youtube-clones in China but are any making money? It seems a great service for users but not great way to make money and start a business. I agree with Mark Booker that all video sharing websites in China have to be embarrassed becasue it shows that the barriers to entry are low, that their sector is not given much respective, and that their prospects are weak.

5. By les – March 17th, 2007 at 3:02 pm

   Right on Perry! I shall strike this stock off my list of potentials. :-)

6. By Dave Tipton – March 19th, 2007 at 7:50 am

   Thank you Mr Wu for being so foward about the business world & keeping us informed
   of those ridiculous companies, may i ask what are your long term favorites.
   As a fellow investor i Thank You. Dave T.

7. By Ralph – March 22nd, 2007 at 5:55 am

   Hello,

   I believe that I am receiving e-mails from this website, or another that is in partnership with this website. I have been receiving e-mails that include an image with the company name "China YouTV Corp" and stock information; along with assorted bits of research and news. I did not sign up to receive any sort of newsletter or mail of any sort and would like to be removed from any list. There is no un-subscribe link in the emails.

   If this is not the correct website to reach "China YouTV Corp" and you know where I could reach them, it would be appreciated.

   Thanks

8. By Editor – March 22nd, 2007 at 6:16 am

   Try going direct to this website for all your complaints. We have received notice from other investors who also report they are receiving similar spam from companies like this: chinayoutv.com

9. By Jesse James – March 22nd, 2007 at 3:07 pm

   I am disgusted by the lack of manners and rude disregard for people coming from this gross bombardment of spam from China Youtv.com This reflects poorly on China and the future of Chinese respect for good taste. What they have done is made me vow to never involve any of my money in any Chinese product. For China to regain it's respect in the America market they must stop these ads from China Youtv.com. They have lost China alot of business and good will. Thank You
   Jesse James

10. By an american investor – March 23rd, 2007 at 1:19 am

    As an american business I encourage all losers to invest their hard earned cash into these copycat websites. As the Chinese says: a penny earned is another sucker at our websites.

11. By Dr. Robert Anthony P. – March 23rd, 2007 at 4:12 am

    Honourable Mr. Perry Wu,
    You have expressed yourself like a clean rose in a field full of putrid rice, appreciating very much your above written observations, my precious clients who have read your precious written comments are very grateful to You & Your Family for your integrity. A Chinese proverb says that “Experience is a comb which nature gives us when we are bald.” We will try not to loose our hair in all of the numerous next coming CYTV e-mails. Please express yourself freely for any Chinese Company worthy of Your trust. Please keep the good work “China should be proud of You” God Bless You.
    Dr. Robert A. P.

12. By Dr. Michelle G – April 1st, 2007 at 5:38 pm

    China YouTV (CYTV.OB) website http://www.Chinayoutv.com is underrated. You can choose English or Chinese, and the Chinese section is fully functionally just like YouTube. The country with the most resources is Canada, so the fact that this company still holds roots with mining in British Columbia is a huge plus, not a minus. The CEO of CYTV is a genius, and if you don't think this company is going to be profitable before,during and after the Olympics then you need to retake Marketing and Macro-Economics.

13. By D. L. from U.S.A. – September 10th, 2007 at 10:08 pm

    I've been investing for a while now,the fundamentals for this company is great! Two years since inception,and over 1 million subcribers thus far. Who cares what they do on the side!

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