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 ISA：individual saving account
Started since 1990，
Non tax payable saving account
Made just for investing
British FD Rate：1-2%
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
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 RM0.50，1000 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?
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. Eg：Caring 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. Einstein：8th Wonder of the World
Talk is easy, are u benefitting from it?
Main board isn’t 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?
We’d 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
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.
36. Midana Capital Inc
Providing a wealth generator through Private Equity
In collaboration with underwriter & over-the-counter：
Lowered the Risk
Assurance
Increase the Profit
37. 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 we’ve 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.
38. 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.
42. 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
43. Want to remain private = Go abroad
Eg. US / Hong Kong
Through HKOTC
Means investing in growing GIANT
China Enterprise
44. 2011：HKEX；China Forestry；freeze USD51 million；account irregularities
2004：SGX；China Aviation；USD550 million trade loss ;$1.94 Stock split 6:5 $0.825
2004：HKEX；Skyworth；USD6million misappropriating；HKD2-HKD4
2008：SGX; 150 listed，20 delisted (China company)
2010：HKEX; 110 listed company price drop by 15.8% on 2012 (China Co.)
2009：US exchange; 51 listed drop by 38% on April 2013
By ratio it’s actually 20%/80%
20% of foreign listing China company underperform，80% remain growing
It’s not that they are underperformance, but too many for us to notice
It’s not plenty of cases but it’s 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
45. Point is!
PE(Private equity) or Equity
Investor
Would still make their millions in
above cases & examples anyway
*Why? Ask our advisor
56. The Star 17th October 2013
Statement says it，even KWAP have their focus right!
57. Why SME/SMI? Why Over-the-counter?
Here’s 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
58. 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
59. 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
60. 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
61. 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
63. 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
64. It is not history either, everyday it’s happening
1st January 2014
黑牛（Black Bull) beef production
After 1 year financing
Net profit grows by
33 times！
65. 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
66. January listed on OTC.
April go for IPO，
Estimate 2 year to reach NASDAQ
67. 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.
68. US OTCC had went through 24 years for today’s success
Today
HKOTC will be Asia’s leading trend，
And with China’s economy & SME Growth it will surpass USA！
VSUSA China
69. Retailing Equity is not something
new or fresh either
SINOPEC is selling 30% of it’s equity
For USD300 million
Retail Equity
71. 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.
72. 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
73. On 21st January 2014 XFC is listed on HKOTC
On his way to HKEX on 2017
77. 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.
80. 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
83. 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.
84. Red Bull
2012 Overall China Energy
Drink grow by 40%，
Holding 14% from China’s
beverage volume
Red Bull China Revenue
RMB 14 Billion
http://www.cnest.asia/yc/Business/BrandStyle/201404/t20140417_55104.html
86. 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.
88. What are you participating in?
Northeast 3 treasure: Ginseng, Mink, Antler
http://baike.baidu.com/view/48926.htm
89. 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 it’s natural clean water source, making them one of the largest
Ginseng plantation & export as well.
92. 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
93. 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
