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A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry December, 2008 Fresh Ideas Media Inc. Soon to be renamed CHINA AUTO LOGISTICS INC. Current Stock Symbol: FIDM

A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

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December, 2008. Fresh Ideas Media Inc. Soon to be renamed CHINA AUTO LOGISTICS INC. Current Stock Symbol: FIDM. A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry. Safe Harbor Statement. - PowerPoint PPT Presentation

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Page 1: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

December, 2008

Fresh Ideas Media Inc. Soon to be renamed CHINA AUTO LOGISTICS INC.

Current Stock Symbol: FIDM

Page 2: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Safe Harbor StatementSafe Harbor StatementSAFE HARBOR Information in this presentation may contain SAFE HARBOR Information in this presentation may contain

statements about future expectations, plans, prospects or statements about future expectations, plans, prospects or performance of Fresh Ideas Media, Inc. (the “Company”) performance of Fresh Ideas Media, Inc. (the “Company”) that constitute forward-looking statements for purposes of that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can Litigation Reform Act of 1995. The words or phrases "can be," "expects," "may affect," "believe," "estimate," "project," be," "expects," "may affect," "believe," "estimate," "project," and similar words and phrases are intended to identify such and similar words and phrases are intended to identify such forward-looking statements. The Company cautions you that forward-looking statements. The Company cautions you that any forward-looking information provided by or on behalf of any forward-looking information provided by or on behalf of Fresh Ideas Media, Inc. is not a guarantee of future Fresh Ideas Media, Inc. is not a guarantee of future performance. performance.

All such forward-looking statements are current only as of All such forward-looking statements are current only as of the date on which such statements were made. The the date on which such statements were made. The Company does not undertake any obligation to publicly Company does not undertake any obligation to publicly update any forward-looking statement to reflect events or update any forward-looking statement to reflect events or circumstances after the date on which any such statement is circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.made or to reflect the occurrence of unanticipated events.

Page 3: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Corporate OverviewCorporate Overview

Growing Growing 20%+20%+ a year and with 2007 sales of $152 million* the a year and with 2007 sales of $152 million* the Company is one of China’s leading sellers of luxury imported autos Company is one of China’s leading sellers of luxury imported autos with a base of 3000+ customers nationwide.with a base of 3000+ customers nationwide.

In the first half of 2008 the CompanyIn the first half of 2008 the Company has continued with impressive has continued with impressive growth posting $81 million* in sales vs. $61 million* in the same growth posting $81 million* in sales vs. $61 million* in the same period of 2007 (period of 2007 (31%+ 31%+ growth). Net income in the first six month of growth). Net income in the first six month of 2008 climbed 73.8% to $2.15 million compared with $1.2 million in the 2008 climbed 73.8% to $2.15 million compared with $1.2 million in the first half of 2007.first half of 2007.

The Company provides a one-stop auto import value added set of The Company provides a one-stop auto import value added set of services including: customs clearance, storage and delivery as well as services including: customs clearance, storage and delivery as well as financing to dealers nationwide and is the industry leader in Tianjin financing to dealers nationwide and is the industry leader in Tianjin (China’s leading port for auto imports).(China’s leading port for auto imports).

Operates the largest website in China forOperates the largest website in China for imported auto dealers and imported auto dealers and customers.customers.

Recently launched a website in Tianjin for domestic auto buyers and Recently launched a website in Tianjin for domestic auto buyers and dealers that it expects will become the first and only national dealers that it expects will become the first and only national automotive website in China.automotive website in China.

Expects to grow by expanding these e-commerce websites - which will Expects to grow by expanding these e-commerce websites - which will attract new customers, build auto sales and provide new services such attract new customers, build auto sales and provide new services such as insurance and used car markets.as insurance and used car markets.

**Note: Note: All financial numbers in this document (including graphs) are unaudited. For more information please consult the most recent 8K filings All financial numbers in this document (including graphs) are unaudited. For more information please consult the most recent 8K filings with the US Securities and Exchange Commission.with the US Securities and Exchange Commission.

Page 4: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Rapid Growth Has Continued in 2008Rapid Growth Has Continued in 2008

$0$20

$40

$60$80

$100

$120

$140$160

2005 2006 2007$0

$500,000

$1,000,000$1,500,000$2,000,000

$2,500,000$3,000,000$3,500,000

$4,000,000

2005 2006 2007

2005-2007 Continuously Increasing Revenues

* In millions 

Year over Year Growth in Net Income

 

Continuing Growth in Profits in the First Half of

2008

 

Financial Highlights 

* All figures in USD

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Q1 & Q2 2007 Q1 & Q2 2008

Page 5: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Contributions to 2007 Net Contributions to 2007 Net IncomeIncome

Auto Imports36%

Finance 13%

Websites 28%

Auto ImportValue Add 23%

Page 6: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Company Structure & Core BusinessesCompany Structure & Core Businesses

Comprehensive web-based logistical services which modernize and propel sales of imported and domestic autos

Hengjia: Unique one-stop service for financing, customs clearance and storage of imported automobiles

Ganghui: Real-time automobile trading information and internet marketing and advertising on www.at188.com (imports) and www.1365.com (domestic) for auto industry subscribers and consumers

Zhengji: Sales of imported automobiles

Tianjin Hengjia Port

Logistic Corp.

The Company

Tianjin Ganghui Information

Technology Corp.

Tianjin Zhengji International Trading Corp.

Page 7: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

The Rapidly Growing Chinese The Rapidly Growing Chinese Automobile MarketAutomobile Market

The Chinese automobile market has experienced The Chinese automobile market has experienced accelerating development since China became a WTO accelerating development since China became a WTO member in 2001. China has surpassed Japan to become member in 2001. China has surpassed Japan to become the 2the 2ndnd biggest automobile market in the world. biggest automobile market in the world.

China represented 12% of the world’s automobile China represented 12% of the world’s automobile consumption in 2007.consumption in 2007.

8.8 million automobiles were sold in China in 2007, an 8.8 million automobiles were sold in China in 2007, an increase of 20% over the prior year. The conservative increase of 20% over the prior year. The conservative estimate is at least 10% growth per year going forward.estimate is at least 10% growth per year going forward.

China imported 314,200 automobiles in 2007, 41% higher China imported 314,200 automobiles in 2007, 41% higher than in ’06. Total value of imported automobiles (including than in ’06. Total value of imported automobiles (including chassis) was US $1.06 billion. China will soon become the chassis) was US $1.06 billion. China will soon become the second largest market for most luxury autos such as Rolls-second largest market for most luxury autos such as Rolls-Royce.Royce.

China’s auto penetration rate is 20 autos/per 1000 people. China’s auto penetration rate is 20 autos/per 1000 people. The rate for developed nations is 400 autos/per 1000 The rate for developed nations is 400 autos/per 1000 people.people.

Page 8: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Continuing Auto Sales and Continuing Auto Sales and Production Growth in 2008Production Growth in 2008

In the first half of 2008, despite record breaking In the first half of 2008, despite record breaking snowstorms, lethal earthquakes and sharp fuel increases, snowstorms, lethal earthquakes and sharp fuel increases, total auto production in China increased 16.71% and total auto production in China increased 16.71% and sales increased 18.52%.sales increased 18.52%.

BrandBrand US US marketmarket

Sales Sales volumevolume

China China marketmarket

Sales Sales volumevolume

GMGM ↓↓ 16.3%16.3%

1,589,9001,589,900 ↑↑ 12.7%12.7%

590,126590,126

FordFord ↓↓ 14%14% 1,128,6001,128,600 ↑↑ 25%25%

116,903116,903

ChryslerChrysler ↓↓ 22.3%22.3%

867,000867,000 ↑↑ 113%113%

10,51710,517

ToyotaToyota ↓↓ 7%7% 1,240,0001,240,000 ↑↑ 34%34%

285,000285,000

HondaHonda ↑↑ 4.8%4.8% 798,000798,000 ↑↑ 21.3%21.3%

186,991186,991

First Half 2008 Auto Sales 

Page 9: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

The Company’s Leading The Company’s Leading WebsitesWebsites

www.1365.comwww.1365.com Soon to become a Soon to become a

national website national website for domestic car for domestic car buyers and buyers and dealersdealers

www.atl88.cowww.atl88.comm

The # l site in The # l site in China for China for imported autos, imported autos, related services related services and financingand financing

Page 10: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

wwww.at188.comww.at188.com (Imported autos)(Imported autos) www.at188.comwww.at188.com began operating in October 2000, after 16 began operating in October 2000, after 16

months in-depth research with a focus on the high pace months in-depth research with a focus on the high pace development of the Chinese imported automobile market.development of the Chinese imported automobile market.

The biggest website specializing in imported automobiles, The biggest website specializing in imported automobiles, www.at188.comwww.at188.com provides first hand trading and quotation provides first hand trading and quotation information. The two biggest web portals, information. The two biggest web portals, www.sohu.comwww.sohu.com and and wwww.sina.comww.sina.com, both utilize data and information from both utilize data and information from www.at188.comwww.at188.com..

Currently, 80.2% of car dealers and trading agents depend on Currently, 80.2% of car dealers and trading agents depend on the trading information from the trading information from www.at188.comwww.at188.com to adjust sales to adjust sales strategies.strategies.

91.5% of subscribers obtain clients from 91.5% of subscribers obtain clients from www.at188.comwww.at188.com and and realize revenue.realize revenue.

Currently the number of visits exceed 1 million daily and there Currently the number of visits exceed 1 million daily and there are 60-70 dealer or agent quotes online every day.are 60-70 dealer or agent quotes online every day.

Daily quote updates exceed 1100.Daily quote updates exceed 1100. Number of paid subscribers (dealers and wholesalers located in Number of paid subscribers (dealers and wholesalers located in

the 4 main ports in China) is over 120, paying $3,350 each.the 4 main ports in China) is over 120, paying $3,350 each.

Page 11: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Web-Based Sales and Services GrowthWeb-Based Sales and Services Growth

www.at188.comwww.at188.com provides not only the most timely provides not only the most timely industry and market information on imported automobiles, industry and market information on imported automobiles, but also has permitted the Company to establish a stable but also has permitted the Company to establish a stable client base throughout China of more than 3000 long-term client base throughout China of more than 3000 long-term clients.clients.

As the biggest imported automobile port in China, Tianjin As the biggest imported automobile port in China, Tianjin has about 200 dealers/wholesalers. The Companyhas about 200 dealers/wholesalers. The Company has has steadily grown to sell more than 2400 automobiles steadily grown to sell more than 2400 automobiles annually, which represents about 25% of the market share annually, which represents about 25% of the market share in Tianjin. in Tianjin.

The Company’s fast growing web-based, one-stop auto The Company’s fast growing web-based, one-stop auto dealer servicing and financing represents more than 90% dealer servicing and financing represents more than 90% of the market share in Tianjin. It uniquely provides “one of the market share in Tianjin. It uniquely provides “one stop” financing, customs clearance, storage and logistics stop” financing, customs clearance, storage and logistics with little to no competition.with little to no competition.

Page 12: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Domestic automobile marketDomestic automobile market www.1365car.comwww.1365car.com

In 2007 alone, there were more than 100 models launched In 2007 alone, there were more than 100 models launched in the market, making comparisons very difficult for the in the market, making comparisons very difficult for the average customer.average customer.

4S Shops (4S stands for sale, spare parts, service and 4S Shops (4S stands for sale, spare parts, service and survey) became the most popular channel for end-users to survey) became the most popular channel for end-users to choose and purchase their automobiles in China.choose and purchase their automobiles in China.

After 18 months of trial operation, After 18 months of trial operation, www.1365car.comwww.1365car.com began to operate in Tianjin in May 2007, assisting began to operate in Tianjin in May 2007, assisting customers accessing real-time information on pricing, customers accessing real-time information on pricing, after-sale services and promotions, etc., enabling them to after-sale services and promotions, etc., enabling them to choose the most favorable terms to purchase their choose the most favorable terms to purchase their automobiles.automobiles.

www.1365car.comwww.1365car.com also provides all agents and dealers a also provides all agents and dealers a platform to market and advertise. platform to market and advertise.

Page 13: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

WWW.1365CAR.COMWWW.1365CAR.COM

www.1365car.comwww.1365car.com has 1.5 million average hits per day; the highest has 1.5 million average hits per day; the highest record is more than 6 million hits in a single day.record is more than 6 million hits in a single day.

At any given time, there are more than 9000 visitors online At any given time, there are more than 9000 visitors online browsing.browsing.

As of September 2007, 102 4S shops among 118 in total have As of September 2007, 102 4S shops among 118 in total have become paid subscribers of become paid subscribers of www.1365car.comwww.1365car.com, representing more , representing more than 90% of the market share in Tianjin.than 90% of the market share in Tianjin.

Dealers/4S shops quotes online exceed 300 per day.Dealers/4S shops quotes online exceed 300 per day. In late summer the Company has contracted with Xiali, China’s In late summer the Company has contracted with Xiali, China’s

number one mini-car manufacturer, initiating on-line sales, number one mini-car manufacturer, initiating on-line sales, creating the very first on-line sales model in China.creating the very first on-line sales model in China.

This exciting new site aimed at domestic car buyers, has grown This exciting new site aimed at domestic car buyers, has grown rapidly and will form the model for expansion to new cities rapidly and will form the model for expansion to new cities throughout China.throughout China.

Highlights

Page 14: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

ExpandingExpanding www.1365car.comwww.1365car.com Expanding to 7 major cities in 2008 and plans to expand to 35 cities over the Expanding to 7 major cities in 2008 and plans to expand to 35 cities over the

next 3 years. Once next 3 years. Once www.1365car.comwww.1365car.com has penetrated 12 representative has penetrated 12 representative cities, a national web network will be established. This new trading and cities, a national web network will be established. This new trading and marketing platform will feature complete, accurate, authorized auto marketing platform will feature complete, accurate, authorized auto information.information.

This web initiative will further build the Company's client base and develop This web initiative will further build the Company's client base and develop sales of domestic manufactured automobiles and related services.sales of domestic manufactured automobiles and related services.

The Company initially plans to expand to Beijing, Xi’An, Wuxi, Dalian, The Company initially plans to expand to Beijing, Xi’An, Wuxi, Dalian, Chongqing and Shanghai all of which are among the most active car markets Chongqing and Shanghai all of which are among the most active car markets in China. These 4 cities alone are each expected to generate $1.38 million in China. These 4 cities alone are each expected to generate $1.38 million revenue annually, adding substantially to the Company’s bottom line.revenue annually, adding substantially to the Company’s bottom line.

The Company recently announced it has expanded the The Company recently announced it has expanded the www.1365car.comwww.1365car.com web-site to Beijing, a significant keystone city in its plan to expand nationally. web-site to Beijing, a significant keystone city in its plan to expand nationally. 97.5% of all Beijing 4S auto dealers signed on as subscribers. 97.5% of all Beijing 4S auto dealers signed on as subscribers.

Combining the web and the Company’s operations provides the opportunity Combining the web and the Company’s operations provides the opportunity to offer value-added services such as used car trading, on-line financing and to offer value-added services such as used car trading, on-line financing and on-line insurance.on-line insurance.

Page 15: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Development PlanDevelopment Plan Emphasize the development of Emphasize the development of www.1365car.comwww.1365car.com, ,

expand to 7 major cities, prepare for the expand to 7 major cities, prepare for the consolidated national website and enhance the consolidated national website and enhance the cooperation with portals.cooperation with portals.

Further enhance the profit generated from Further enhance the profit generated from service segment.service segment.

Move into the second-hand car market, develop Move into the second-hand car market, develop new after-sale services. new after-sale services.

Develop a domestic manufactured automobile Develop a domestic manufactured automobile pledge service, utilize the Company’s capital pledge service, utilize the Company’s capital advantage to provide pledge financing, relieving advantage to provide pledge financing, relieving the financing burden of 4S shops and car dealers.the financing burden of 4S shops and car dealers.

Further diversify the Company’s profit Further diversify the Company’s profit generators.generators.

Page 16: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Diversified Profit Base Key To Diversified Profit Base Key To Financial StrengthFinancial Strength

High margin web-based diversified profit High margin web-based diversified profit operations should increase profits and operations should increase profits and strengthen the Company’s growth strengthen the Company’s growth opportunities.opportunities.

Most car sales deals close within a week, Most car sales deals close within a week, permitting an active and positive cash permitting an active and positive cash flow.flow.

The Company has no long term debt.The Company has no long term debt. Maintenance of strong ties with banks Maintenance of strong ties with banks

acts as a barrier to potential competition. acts as a barrier to potential competition.

Page 17: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

““Number Ones”Number Ones” The Company currently sells more than 2400 imported cars The Company currently sells more than 2400 imported cars

per year, making it Number One in sales and market share in per year, making it Number One in sales and market share in Tianjin.Tianjin.

With 3000+ stable customers in China, the Company has one With 3000+ stable customers in China, the Company has one of the largest client bases in the industry.of the largest client bases in the industry.

The Company’s one-stop servicing package makes it unique. The Company’s one-stop servicing package makes it unique. This includes customs clearance, storage, logistics and This includes customs clearance, storage, logistics and finance. It is the only company in China which provides all of finance. It is the only company in China which provides all of these services, which has led it to achieve the No. 1 market these services, which has led it to achieve the No. 1 market share in Tianjin and a leadership position in China.share in Tianjin and a leadership position in China.

www.at188.comwww.at188.com is the leader in the imported automobile is the leader in the imported automobile industry and is used by the largest web portals in China. industry and is used by the largest web portals in China. ((www.sohu.comwww.sohu.com,, www.sina.comwww.sina.com))

www.1365car.comwww.1365car.com is currently the only is currently the only website aimed at website aimed at providing domestic auto industry and trading information to all providing domestic auto industry and trading information to all car dealers and trading agents in China.car dealers and trading agents in China.

Page 18: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

ManagementManagement Mr. Tong ShipingMr. Tong Shiping CEO, PresidentCEO, President

47 years old, Bachelors degree in computer science, founded the 47 years old, Bachelors degree in computer science, founded the Company as the Shisheng Group in 1995 and led Group from Company as the Shisheng Group in 1995 and led Group from startup to over $30M annual sales in less than 10 years. Under startup to over $30M annual sales in less than 10 years. Under his management, the Company was honored as a “Top Hundred his management, the Company was honored as a “Top Hundred Enterprises” by The Ministry of Commerce in 2005. Mr. Tong Enterprises” by The Ministry of Commerce in 2005. Mr. Tong was also honored as “Tianjin Top Hundred private-owned was also honored as “Tianjin Top Hundred private-owned entrepreneur” in 2006.entrepreneur” in 2006.

Ms. Wang XinweiMs. Wang Xinwei CFO,VPCFO,VP

50 years old, Bachelors degree in accounting, CPA, Senior 50 years old, Bachelors degree in accounting, CPA, Senior Internal Auditor. Ms. Wang worked as Senior Accounting Internal Auditor. Ms. Wang worked as Senior Accounting Manager for Tianjin Hongqiao District Government. She was in Manager for Tianjin Hongqiao District Government. She was in charge of Tianjin’s joint development project with Euro countries charge of Tianjin’s joint development project with Euro countries and gained strong international accounting experience. Ms. Wang and gained strong international accounting experience. Ms. Wang joined the company in 2001 and has served as CFO since then.joined the company in 2001 and has served as CFO since then.

Mr. Yang BinMr. Yang Bin General Manager, Sales DirectorGeneral Manager, Sales Director

36 years old, Bachelors degree in economics from Naikai 36 years old, Bachelors degree in economics from Naikai University and EMBA from Tsinghua University. Mr. Yang has rich University and EMBA from Tsinghua University. Mr. Yang has rich experience in automobile industry sales and has contributed experience in automobile industry sales and has contributed greatly to developing the company’s extensive client base. greatly to developing the company’s extensive client base.

Page 19: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Investment HighlightsInvestment Highlights

Continuing development of China automobile market Continuing development of China automobile market provides tremendous growth opportunity. provides tremendous growth opportunity.

Extensive client base provides the Company a strong Extensive client base provides the Company a strong platform for expanding its business.platform for expanding its business.

Management team has rich trade experience, knowledge Management team has rich trade experience, knowledge of the market, and understanding of trends and internet of the market, and understanding of trends and internet technology.technology.

The Company expects its web-based platform to yield first The Company expects its web-based platform to yield first hand market and trader information, which will accelerate hand market and trader information, which will accelerate its sales and one-stop service businesses.its sales and one-stop service businesses.

From its start, the Company has worked closely with the From its start, the Company has worked closely with the major commercial banks and has maintained a strong major commercial banks and has maintained a strong financial profile and positive cash flow to support its financial profile and positive cash flow to support its growth plans.growth plans.

The Company already is a leader in its four core profitable The Company already is a leader in its four core profitable businesses.businesses.

Being public in the US will further enhance its industry Being public in the US will further enhance its industry leadership positions by providing increased visibility and leadership positions by providing increased visibility and access to world capital markets.access to world capital markets.

Page 20: A Leader in Modernizing China’s Still Rapidly Expanding Auto Industry

Contact InfoContact Info

China Auto Logistics Inc. China Auto Logistics Inc. Headquarters:Headquarters:

No. 87 No-8 Coastal WayNo. 87 No-8 Coastal Way

Floor 2, Construction BankFloor 2, Construction Bank

FT2, Tianjin, ChinaFT2, Tianjin, China

Tel: 86 (22) 25762771Tel: 86 (22) 25762771

Fax: 86 (22) 66271509Fax: 86 (22) 66271509

Email: Email: [email protected]@shishenggroup.com

Website: Website: www.shishenggroup.comwww.shishenggroup.com

IR Contact (U.S.):IR Contact (U.S.):

Robert AgriogianisRobert Agriogianis

30 Columbia Turnpike30 Columbia Turnpike

Florham Park, NJ 07932Florham Park, NJ 07932

Focus Asia PartnersFocus Asia Partners

Tel: 973-845-6642 Tel: 973-845-6642

Fax: 973-216-6252Fax: 973-216-6252

www.focusasiapartners.cowww.focusasiapartners.comm