1. Economy & You

2. Should you start investing? Malaysia Inflation Rate Does your income Grow this way? 3. Exceed Bloomberg Survey to 3.4% 19 February 2014 4. Sugar +14% Petrol +11% Electric+15% 6th January 2014 Your Income? 5. The Star 20th March 2014: New High Highest in Asia 6. 2014: More Subsidy reduction = More price raise As at 2013 RM500 Billion 7. Ringgit Performance 8. Main Concern Foreign ownership is up to 45.1% 29th January 2014 9. Does this enlighten us Or hinting us in something Is investment crucial now? 10. Starting an investment 11. Investment is not for the rich but for all According to information given above, even a 10% return yearly will simply mean break-even in terms of inflation & price raise. 3%-4% Fixed Deposit is certainly not advisable at all Developing country has proven this right ever since 12. British ISAindividual saving account Started since 1990 Non tax payable saving account Made just for investing British FD Rate1-2% 13. Our usual investment options 1. Equity 2. Pre-IPO 3. IPO 4. Stock 1. New Development 2. Sub sales 3. Auction 4. Group Purchase 1. Speculation 2. Physical Equities Property Forex 14. Capital Market 15. Can a 30 year speculation make you this profit? Graham Holdings formerly known as The Washington Post Company 1973 Warren Buffett invested USD10,600,000 known as a Guru in Stock Investment he considered he entered at the best price. Who knew in 1974 the stock price drop another 25% making Buffett USD2,000,000 poorer. During that time USD10million was considerably a high amount for him. Well of course he was not affected as emotional price happens in stock every single day. Current status USD10,600,000 ; USD1,000,000,000 ; 100 times Current Dividend 2.8% 280% Warren Buffett profit on dividend yearly is USD30,000,000 16. Malaysia Public Bank 1967 Price during time was RM0.501000 shares = RM500 Currently worth 130,000 shares Current value at RM2,500,000 (5,000 times) Current Dividend 2.64% RM66,000 (130 times Can a 40 year speculation make you this profit? 17. Save RM100,000 Interest 4% 30 years later RM300,243 Stock Speculation RM100,000 30 years later RM Where are the rich investing now? 18. China Forbes 17/09/2013 China 2020 GDP catches up The States (USA) 6 years later, how many regrets & if would you have 6 years before 19. Financial Times 30/04/2014 Economist forecast 2019 20. The Economist 02/05/2014 Picture 2019 later exceed by 20 trillion vs 50 trillion 1.5 times 21. Economy exceeds US Entreprise growth exceeds US 2014-2020 Profit exceeds USD That is why the rich are investing CHINA 22. So where do we start 23. Stages in Capital Market Seeding PE OTC Pre-IPO IPO MB Price goes up by stages & company growth Final stage Main Board inclusive of PE Ratio Where emotional price begins 24. Position vs Capital Position Capital Price Period Profit 10%dividend PE RM50,000 RM1.92 3-5yrs 200% 33% OTC RM50,000 RM2.34 3-5yrs 188% 25% PRE-IPO RM50,000 RM4.00 3-12mths 50% 15% IPO RM50,000 RM4.50 3-12mths 35% 12.5% MBoard RM50,000 RM6.00 - - 10% 25. EgCaring Pharmacy Berhad Position Capital Price Period Profit 10%D Cash PE RM50,000 RM0.30 3-5yrs 500% 70% RM35,000 OTC RM50,000 RM0.50 3-5yrs 350% 40% RM20,000 PRE- IPO RM50,000 RM0.90 3-12mths 110% 20% RM10,000 IPO RM50,000 RM1.25 3-12mths 85% 15% RM 7,500 MB RM50,000 RM1.90 - - 10% RM 5,000 Difference Dividend x6 Meaning Capital x6 Time x6 Mainboard investing & 10% return is only surviving 26. Einstein8th Wonder of the World Talk is easy, are u benefitting from it? Main board isnt bad but a takes a longer time Timing & Position is rather essential If Buffett took 10 years Then mainboard requires 60 years If Buffett took 5 years for his wealth Still we will need 30 years for the same 27. Tenure Price 10% Dividend 10% 1 110,000 11,000 2 121,000 12,100 3 133,100 13,310 4 146,410 14,641 5 161,051 16,105 6 177,156 17,715 7 194,871 19,487 8 214,358 21,435 9 235,794 23,579 10 259,373 25,937 RM100,000 Example Mainboard OTC Since we want to invest of course We want the best price, but where? Wait for another 1967 Public Bank 1973 Washington Post? Wed find one then wait for one! 28. 22 trust fund removed from EPF Highest risk in investment is capital management Mainboard & Trust does not seems to be risk free In fact return is certainly lower 29. Through Over-The-Counter Invest Oversea 30. Gretai Securities (OTC) Taiwan OTC known as 2nd board in Taiwan Since 1994 31. US OTC Market Since 1990 In April 1997, the SEC approved the operation of the OTCBB on a permanent basis with some modification *Access to more than 3,300 securities 32. Najib To provide capital financing & establishing an equity trading platform 2012.07.19 Nanyang Prime Minister Datuk Seri Najib Razak today announced that the Government will set up a non-listed company equity trading platform for financing the companies that requires the opportunity to venture into capital financing. He said that small and medium enterprises, venture capital and private equity industry are aware of the platform and are very positive at it, hoping to take this platform to financing. Equity trading platform not only provides financing opportunities, but also for investors in a more efficient and transparent trading platform. 33. Hong Kong Over-The-Counter Hong Kong Over-The-Counter (HKOTC) founded in 2012, aimed at establishing the basic level of multilevel capital markets of Asia. As an important support to the main board and growth enterprises markets. We adhere to the concept of international, market -oriented, standardized and service-oriented. We attract global capital and bring together international information, serving for growing enterprises and professional investors. We stick to the principle of "fair, just", and follow the norms of market discipline, strengthen the supervision of information disclosure. HKOTC strives to establish and maintain a reasonable, standardized, efficient and flexible financing platform, in order to help SMEs and start- ups continue to grow and develop, and provide a value-oriented investment market for investors. It is our unshaken pursuit to help SMEs develop and build a fair and credible market. 34. Midana Capital 35. Midana Capital Inc Providing a wealth generator through Private Equity In collaboration with underwriter & over-the-counter Lowered the Risk Assurance Increase the Profit 36. What we Do? Midana Capital is a seed-to-exit venture capital group, investing globally with great teams of people creating revolutionary companies. When the time has come to take an idea or a business to the next level, entrepreneur wants a venture partner who understand and believe in the power of big dream, bold vision and fresh idea that have the power to change an industry, a sector, even the world. Moreover, entrepreneur want a venture partner who knows what it takes to make a company succeed, to turn an idea into an action, and to make a plan a reality. Midana Capital have invested across stages and geographically continue building great companies. Whether you are seeking investment to get your idea off the ground or looking to propel a proven idea toward greatness, Midana Capital is the venture partner who will be there ; because weve been there, every step of the way. We believe entrepreneur value comes from consistent profitable growth, and not merely market expansion. For decades, through experience and perseverance, we have redefined the evaluation of a company structure, research and development, competitor and value creation. With our highly flexible modes of cooperation, processing and assistance to entrepreneurs has never been better. We invest in all stage of development from angel investment, venture capitalist and even, IPO. In addition, we also invest in entrepreneurial founder of all sorts of industry. MCI is also a member of GUST, Gust provides the global platform for the sourcing and management of early-stage investments. Gust enables skilled entrepreneurs to collaborate with the smartest investors by virtually supporting all aspects of the investment relationship, from initial pitch to successful exit. Gust is endorsed by the world's leading business angel and venture capital associations, and powers over 1,000 investment organizations in 65 countries. More than 160,000 start-ups have already used the platform to connect and collaborate with over 40,000 individual accredited investors. 37. Hong Kong Over-The-Counter 30th December 2013 SME.GOV.CN How does HKOTC find their potential company? Through various gateway including, Collaboration with local authorities such as SME association China For example, on your left HKOTC made a seminar in collaboration With SME Association of Xiamen. Along with them, they manage to find the best in quality, potential, and size. 38. Xiamen News HKOTC via Xiamen SME association Assisting all the SME in Xiamen to list in HKOTC Hong Kong Over-The-Counter 39. Through HKOTC, invest in China legally 500 million SME X2 our population 40. 2% government-owned 98% is considered SME. Easier said all enterprises are considered SME 41. 1949 after New China is formed. Many has been confiscated. At least 117 of them 98% as long as they grow big they wont stay private 42. Want to remain private = Go abroad Eg. US / Hong Kong Through HKOTC Means investing in growing GIANT China Enterprise 43. 2011HKEXChina Forestryfreeze USD51 millionaccount irregularities 2004SGXChina AviationUSD550 million trade loss ;$1.94 Stock split 6:5 $0.825 2004HKEXSkyworthUSD6million misappropriatingHKD2-HKD4 2008SGX; 150 listed20 delisted (China company) 2010HKEX; 110 listed company price drop by 15.8% on 2012 (China Co.) 2009US exchange; 51 listed drop by 38% on April 2013 By ratio its actually 20%/80% 20% of foreign listing China company underperform80% remain growing Its not that they are underperformance, but too many for us to notice Its not plenty of cases but its just us being too wary since they are CHINA At the end of the day, Mainboard is a place for market makers & speculators To make their millions, probably not you & not investors. In depths understanding of China Equity 44. Point is! PE(Private equity) or Equity Investor Would still make their millions in above cases & examples anyway *Why? Ask our advisor 45. Year 2013 China relaxes rules for Oversea IPOs 46. Site visits by HKOTC 47. Website Interface & Share prices 48. Your wealth & OTC 49. Sourcehttp://www.telegraph.co.uk/ 8th March 2014 50. Incubation Period-Capital Financing / Equity trade Start-up Period Growing Stage Matured PeriodListing Period, Bank Financing & Venture period Ranging Period 51. Definition of Growth & Speed 17th March 2014 52. The Star 17th October 2013 Statement says iteven KWAP have their focus right! 53. Why SME/SMI? Why Over-the-counter? Heres why Board NYSE Stock Code MED Company Medifast Incorporation Industry Weight management & nutrition Listing Date 12/31/1999 Share Price USD0.19 Updated on 13/12/2013 USD26.33 Changes 140 times 54. Board NYSE Stock Code BYI Company Bally Technologies Inc Industry Entertainment & Games Listing Date 12/31/1999 Share Price USD0.68 Updated on 13/12/2013 USD74.89 Changes 110 times 55. Board NASDAQ Stock code GMCR Company Green Mountain Coffee Roasters Industry Coffee Listing Date 12/31/1999 Share Price USD0.88 Updated on 13/12/2013 USD72.66 Changes 82 times 56. Board NYSE Stock Code PCP Company Precision Castparts Corp Industry Aerospace, defense, industrial, automotive & other metal parts Listing Date 12/31/1999 Stock Price USD6.56 Updated on 13/12/2013 USD253.11 Changes 38 times 57. Board NASDAQ Stock Code DECK Company Deckers Outdoor Corp Industry Shoes Listing Date 12/31/1999 Stock Price USD2.63 Updated on 13/12/2013 USD84.52 Changes 32 times 58. And plenty more 59. Tenure Price Changes +10% Dividend 10% 1 110,000 11,000 2 121,000 12,100 3 133,100 13,310 4 146,410 14,641 5 161,051 16,105 6 177,156 17,715 7 194,871 19,487 8 214,358 21,435 9 235,794 23,579 10 259,373 25,937 Main Board OTC This is why, we choose OTC 32 times 38 times 82 times 140 times 60. It is not history either, everyday its happening 1st January 2014 Black Bull) beef production After 1 year financing Net profit grows by 33 times 61. US BIO-Patch 2 years time listed in NASDAQ Profit by 10 times ! At least 9 similar potent company went listed from OTC to NASDAQ in recent years 62. January listed on OTC. April go for IPO Estimate 2 year to reach NASDAQ 63. http://www.nasdaq.com/investing/lowdown-on-penny-stocks.stm Sure, some companies on the OTCBB and Pink Sheets might be good quality, and many OTCBB companies are working extremely hard to make their way up to the more reputable Nasdaq and NYSE. However, the flip-side is that there many good opportunities in stocks that aren't trading for pennies. You need to understand that this is a high risk area that isn't suitable for all investors. If you can't resist the lure of micro- caps, make sure you do extensive research and understand what you are getting into. 64. US OTCC had went through 24 years for todays success Today HKOTC will be Asias leading trend And with Chinas economy & SME Growth it will surpass USA VSUSA China 65. Retailing Equity is not something new or fresh either SINOPEC is selling 30% of its equity For USD300 million Retail Equity 66. Congratulation to HKOTC Successfully held the 3rd Listing Ceremony at Hong Kong Sheraton Hotel & Towers on 21st January 2014 67. Hong Kong Over-The-Counter Current status (HKOTC) listed on Growth Sector 11 companies, market value of HKD2.2 billion, funding size of HKD220 million. Total listing of 32 companies geographically covering Shanghai, Sichuan, Liaoning, Zhejiang, Guangdong, Hong Kong & other 13 province. HKOTC was initially built for the Hong Kong-based hierarchical multi-level capital market system, a necessary and important complement to support Hong Kong main board, the GEM market, the market have entered a stable and healthy development of the new era, the 2014 trade sector is expected to achieve annual listing plan of 100 enterprise. In the future, the market will continue to focus on aspects of information disclosure, investor protection and corporate value- added services. 68. 3rd Listing Includes XinFangChang International Holding Co., Ltd Stock Code 6009 Sheng Quan International Holding Co., Ltd Stock Code 6010 China SmartDriver Co., Ltd Stock Code 6011 BaoMinxiang (Holdings) Limited Stock Code 6012 69. On 21st January 2014 XFC is listed on HKOTC On his way to HKEX on 2017 70. Nationwide Sinchew Jit Poh 9th February 2016 71. XFC retail equity was settled & closed on 30th April 2014 May 2014 announcing a new project 72. 17th May 2014 Tian Xia Yi Shui 73. China Beverage Industry 1949 after New China is formed, the private company Wong Lo Kat was confiscated by the government, making it government-owned ever since. Wong Lo Kat is one of the leading beverage industry in China. Focusing in health drinks commonly known as herbal tea(liang cha) in Malaysia. 74. Why Confiscate? 2004RMB 1.8 Billion 2008RMB 10 Billion 2012RMB 20 Billion 75. On year 2007 F&B China reaches RMB1.3 Trillion 76. China Healthy Drink for 2011-2012 Growth USD11.6 Billion Master Kong 2010-2011 Growth USD660 million An extreme growth & Obvious Demand in health drinks China Beverage Analyst 77. http://www.topcanchina.org/src/2014-03/10006210.html China Canned Drinks JDB, Red bull, Coke, Coconut Drink & Pepsi JDB leads with 12.33% China Can Industry 2011: 972 million ton RMB1.2 Trillion Growth of 18.8% Domestic use RMB800 Billion 78. http://finance.people.com.cn/GB/42877/42883/9129054.html 2009 Wong Lo Kat starts Health Drinks Trend 79. Market Penetration 2003 2004 2005 Carbonized 75.9% - 70% Bottled 66.5% - 75.7% Tea 39% - 46.8% Juice 31.3% - 50.4% Energy drinks 18% 25.7% 27.1% http://wenku.baidu.com/view/1b585c11f18583d04964596a.html Growth in health & energy drinks at 60% yearly. 80. Red Bull 2012 Overall China Energy Drink grow by 40% Holding 14% from Chinas beverage volume Red Bull China Revenue RMB 14 Billion http://www.cnest.asia/yc/Business/BrandStyle/201404/t20140417_55104.html 81. Tian Xia Yi Shui ShenGongShenPo 82. Tian Xia Yi Shui Founded in Jilin TianXiaYishui is a company specialized in R&D, production & sales in ginseng drinks. Also the first in China to have ever started R&D & beverage production specialized in Ginseng. With the recruitment of all the domestic R&D personnel, with this TXYS advances themselves in the industry. The company focuses on ShenGongShenPo series of Ginseng drinks Product manufacturing company is Jilin Green Tech Co., Ltd. founded in 2003, located in Changbai Mountain. Focuses on their high quality natural water in Jilin Tonghua Meihekoushi. The company covers an area of 15,000 square meters, with an investment of RMB55 million, a standard modern production channel which are certified ISO9001:2008, ISO22000 & ISO14000. With the introduction of advance equipment from all aspect, we are able to ensure the highest quality & secure of ginseng beverage are being produced for the safety of consumers. Current capacity of production per year is at 130 million cans. At the end of March 2014, registered capital as RMB10 million. With total asset of RMB3.81 million, tangible assets RMB2.6 million & intangible assets RMB400,000. The company employees at 120 person, 10 senior management, R&D 30 staff, sales profession at 60 people, service personnel of 10 people. The company current sales channel includes 10 provinces beginning with Jilin, Henan, Jiangsu, Zhejiang, Fujian, Hubei, Hunan, Shandong, Guangdong & Shanxi. Dealing contract o 186 units throughout these province, setting up sales point of 420 spot. The company expects a net sales of RMB10 million by end of this year with an average net profit of 20% As a pioneer in Ginseng research, TXYS upholds their title for developing the ginseng beverage industry providing a healthier nation of China. With primary focus in service & professional marketing team, TXYS will make SGSP the beverage as one of the number 1 ginseng drinks nationwide & a priority healthy drink in China. 83. Ginseng News 84. What are you participating in? Northeast 3 treasure: Ginseng, Mink, Antler http://baike.baidu.com/view/48926.htm 85. China Water Source Pollution Demand for Canned drinks will continue to rise Health drinks will continue to spike Jilin water source & ginseng drinks Will certainly fly sky high *Jilin is famous for its natural clean water source, making them one of the largest Ginseng plantation & export as well. 86. 2014 Key Growth Strategic Planning Dynamic Marketing Compact Expansion Innovation Production Base New Production Before September 20th 2014, SGSP Xylitol drinks in Gift Pack, making up a new market, improvising product architecture, expanding range of consumer. Brand Upgrade Major in Changbai Mountain Ginseng as branding, enhancing its effect & exposure. These shapes up the whole image of SGSP as Changbai mountain is famous for its Ginseng & Water source. 87. An Opportunity 20129717 7th September 2012 The National Health & Family Planning Commission of Peoples Republic of China No.17: Regulate Ginseng as a new F&B 88. Funding Objective a) Fujian Sales Force Expansion Working Capital RMB1 million. b) Creating an example . Implementing the business model in Fujian, Jiangxi, Zhejiang, Guangdong Up to 10 sales force at a working capital of RMB8 million 89. Tian Xia Yi Shui Total Shares 13,000,000 (13 million shares) Our Shares 3,000,000 (3 million shares) Selling Price HKD1.30 Dividend HKD0.10 (2 years) Est 5 years leap board / M&A Est PE Ratio (x10) Ginseng Drink is Health drink the same time Energy Drink Redbull : RMB14 Billion JDB : RMB20 Billion 1% : 340 million x120 ROI 0.1% : 34 million x12 ROI 0.01% your return is still 1.2 fold Timing & Position 90. Welcome to PE, Welcome to Midana Capital 91. Through Hong Kong Over-The-Counter, lets participate all the ELITE SME/SMI in China Multiply our wealth, & ensure your capital growth!