Company Overview March (An IT Portfolio Management Company)

Transcription

1 Company Overview March 2018 (An IT Portfolio Management Company)

2 Disclaimer FORWARD LOOKING STATEMENTS Apart from historical data, this document may contain information and statements concerning the future results of Peak Positioning Technologies Inc. (the Corporation or Peak ) which should be considered as prospective and forwardlooking. These statements, when utilized, reflect the current vision of the Corporation concerning future events; they are based on information currently available to the Corporation and on assumptions which are considered reasonable. These prospective statements are subject to risks, uncertainties and other factors likely to influence the results, performance and achievements of the Corporation such that they could differ substantially from the results, performance and achievements prospective statements of this nature might imply. The Corporation is in no way obliged nor does it intend to update or revise these prospective statements on the basis of new information, future events, etc. 2

3 About Peak Positioning Technologies Peak Positioning Technologies ( PKK ) is an IT portfolio management company whose portfolio includes a group of companies and financial technology ( Fintech ) assets commercialized in mainland China. PKK s shares are listed on the Canadian Securities Exchange and the company s mission is to be a bridge that allows North American investors to participate in China s technology revolution, particularly in the area of Fintech, Blockchain and related technologies 3

4 PKK Group Ownership Structure China Hong Kong 100% Asia Synergy Limited 100% 100% 51%* Product Procurement & PO Financing Platform Commercial Lending Matching Platform *PKK has option to acquire 100% of ASFC 4

5 About PKK Group Subsidiaries & Assets Established in June 2016, AST is a Shanghai based 100% owned subsidiary of PKK and the operator of the Gold River platform Established in March 2017, ASDS is a Shanghai based 100% owned subsidiary of PKK and the operator of the Cubeler platform in China Established in March 2018*, ASFC is a Wuxi based 51% owned financial services subsidiary of PKK Cubeler is a commercial lending fintech platform whose Chinese commercial rights are the exclusive property of PKK Gold River is a product procurement and purchase order financing platform owned by PKK *This is a projected date of establishment as the registration of ASFC was still pending as of the date of release of this presentation 5

6 About ASDS and the Cubeler Platform (Company) (Software) 6

7 About ASDS and the Cubeler Platform SME SME-1 SME-X Lender-1 Lender Lender-X Lender Lender-1 SME-X SME Matches SME-1 SME Lender-X Lender Matches Cubeler is a fintech platform that uses a proprietary analytics engine to match registered businesses looking for credit with various lenders and financial institutions whose credit criteria the businesses fit Cubeler reads and analyses financial data from various sources on the registered businesses and matches the financial data with the credit criteria of its registered lenders The end result is that each business and each lender can log on to their respective Cubeler accounts to review their respective pre-qualified credit matches and engage in credit transactions ASDS earns a referral transaction fee on all loans facilitated on Cubeler Lenders on Cubeler can also subscribe to the GoldLegal service, which is similar to a loan default insurance policy for which they pay ASDS financial partner ASFC a monthly premium 7

8 Cubeler Platform Overview Platform officially launched in Q Operated by ASDS Has potential to match millions of Chinese SMEs looking for credit with thousands of Chinese lenders Pilot started with 2 lenders in August 2017 Launch of GoldLegal service and first revenues generated in Q Over 2,000 registered SMEs as of March 2018 Over 40,000 ICBC (Industrial and Commercial Bank of China) business clients on standby to be added to platform as of March 2018 Platform operator ASDS earns service fee on each transaction done on platform 8

9 ASDS Revenue Model Credit Matching Service Fee: ASDS earns one-time brokerage fee for each transaction conducted on Cubeler representing 0.25% to 1.00% of value of transaction 9

10 About AST and the Gold River Platform (Company) (Software) 10

11 About AST and the Gold River Platform Product and Material Suppliers Ordered Products and Materials Platform Users Gold River is a product procurement and purchase order financing platform for raw materials, metals and various products Gold River allows AST to collect and analyse data from platform users to qualify them for purchase order financing services from AST financial partner ASFC As the platform operator, AST sources the ordered products and materials from its suppliers and has them shipped directly to the clients Qualified platform users can request to have the orders placed on the platform financed by ASFC Monthly PO financing rates on Gold River range from 1.00% to 2.00% 11

12 Sample Gold River PO Financing Transaction Platform User Ordered Product 1. Platform user places purchase order with AST on Gold River and qualifies to have order financed 2. Purchase order financing details are sent to ASFC and ASFC processes request 3. ASFC approves request and sends funds to AST, including financing fees portion payable to AST 4. AST places order with supplier 5. Supplier sends ordered product to platform user 6. Platform user makes financing payments to ASFC Supplier 5 12

13 Gold River Value Proposition to Platform Users Profile of Gold River Platform Users: o Well-established manufacturers and product distributors o Dealing with very slow paying clients o Clients usually take 90 days or more to pay invoices, and can sometimes take 6 months or even 12 months to pay o Constant struggles with cash flow management Gold River Value Proposition o One-stop-shop product and materials ordering with PO financing assistance to ease cash flow pressures 13

14 Gold River Platform Overview Platform officially launched in Q Operated by AST $60M in total revenues generated in 2016 from materials related purchase orders only (no PO financing) Can be adapted for the procurement of various products and materials Over 100 registered platform users as of March 2018 Platform operator AST earns markup on product and material orders plus referral fee if orders are financed 14

15 AST Revenue Model Sale and distribution of products and materials: AST earns gross margins of 0.5% to 5.0% on the sale and distribution of products and materials for orders placed on the Gold River platform Financing referral service fee: AST earns a one-time financing referral service fee representing 0.25% to 1.00% of the value of the transaction on every purchase order financed on the Gold River platform 15

16 About ASFC and the Cubeler & Gold River Platforms * Default Lender on Cubeler ASFC is one of many lenders on the Cubeler platform, but serves as the platform s default lender. In addition to lending funds to SMEs on Cubeler on its own, ASFC also put up funds to support the platform s Lend with Me program and its Gold Legal service Exclusive Financial Service Provider on Gold River ASFC is the exclusive financial services provider on the Gold River platform. All PO financing requests on the platform are referred exclusively to ASFC *ASFC can leverage its lending license to borrow up to 150% of its initial $20M registration capital from tier 1 banks and funds for its lending operations 16

17 ASFC Revenue Model by Platform GoldLegal Service Fee: ~$30 per month on all Gold Legal service agreements used on the platform Interest on Loans: 1.00% to 2.00% monthly interest on value of own credit products offered to SMEs Interest on Lend with Me Loans: 0.75 % to 1.00% monthly interest on value of credit products offered to SMEs under LWM program Interest on PO Financing: 1.00% to 2.00% monthly interest on value of purchase orders financed 17

18 PKK Investor Value Proposition & Capital Structure Capital Structure (as of February 28, 2018) Shares Outstanding 656M Closing Price $ Week High/Low $0.205 / $0.04 Warrants Options Fully-diluted 128M 36M 820M Insider Position* 23.1% Market Cap $29.5M Bridge and pipeline for Canadian investors to largest and fastest growing fintech and related technologies market in the world (China) 3 Recurring-revenue model based operating subsidiaries, including licensed financial institution o AST Operator of product procurement and purchase order financing platform o ASDS Operator of commercial lending platform matching lenders and businesses o ASFC Financial services provider on product procurement platform and commercial lending platform $21.5M cash position** *Insider position expressed on a fully-diluted basis **Includes $9.8M contributed by ASFC investment partner in China for ASFC financing operations 18

19 Investor Relations Contact Information Peak Positioning Technologies Inc. Johnson Joseph President & CEO T: (514) x 501 E: jjoseph@peakpositioning.com CHF Investor Relations Cathy Hume CEO T: (416) x 231 E: cathy@chfir.com 19