UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 13, 2017 TAKUNG ART CO., LTD (Exact name of registrant as specified in its charter) Delaware 001-38036 26-4731758 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) Flat/RM 03-04 20/F Hutchison House 10 Harcourt Road, Central Hong Kong (Address of Principal Executive Offices) Registrant s telephone number: +852 3158 0977 (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 ( 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( 240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 7.01 Regulation FD Disclosure On October 14, 2017, the management of Takung Art Co., Ltd, a Delaware corporation (NYSE American: TKAT), is going to attend and make a presentation at the following investors conference: Conference Name: The 18th Annual GCFF Vancouver Conference 2017 Date: October 14th, 2017 Time: 8:55am 5:00pm TKAT s Presentation Time: 11:50am-12:10pm Location: Sheraton Vancouver Airport Hotel Address: 7551 Westminster Highway, Richmond, BC V6X 1A3 The materials to be presented or distributed at the conference are attached as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in this Item 7.01 is not filed for purposes of the Securities Exchange Act of 1934, as amended, and is not deemed incorporated by reference by any general statements incorporating by reference this report or future filings into any filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent TKAT specifically incorporates the information by reference. Item 9.01 Financial Statements and Exhibits (d) Exhibits Exhibit No. Description 99.1 Conference presentation deck (bilingual) 99.2 Fact Sheet (English translation)
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 13, 2017 Takung Art Co., Ltd /s/ Di Xiao Name: Di Xiao Title: Chief Executive Officer
www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT Exhibit 99.1
Safe Harbor Statement The matters discussed in this presentation, particularly information regarding future revenue, earnings, business plans and goals, consist of forward - looking information within the meaning of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 and are subject to the safe harbor created by these sections and involve risks and uncertainties, which could cause actual results to differ materially from the forward - looking information. Such statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information ; however, management s assumptions and the Company's future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially. The Company undertakes no obligation to publicly update or revise any forward - looking statements. All forward - looking information contained herein is subject to the risk factors and uncertainties described in the Company s filings with the Securities and Exchange Commission, which risk factors and uncertainties are incorporated by reference as though fully set forth herein. 2 www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT
Market Opportunity 3 www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT Chinese Upper Middle Class grows to Investors desire to hold part of wealth in liquid alternative assets. Art has now been: 54% of urban population by 2022 from 22% in 2012. 2012 22% 2022 54% Grows to 550 million by 2024. 2024 5.5 Recognized as an attractive long - term investment. Broadly accepted as an investment vehicle.
Takung was formed to: Satisfy Upper - Middle Class Desire to Invest in and Learn about Chinese Art Provide Artists with an Alternative Distribution Channel to Sell Their Art For Collectors, to Create a Marketplace Devoted to Buying and Selling Art 4 www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT
Fractionalizes Art Portfolios into Tradable Shared Ownership Units Provides Trading Platform to Buy, Sell, and Settle Unit Sales Monthly Trading Volume: Up to $1. 9 Billion 19 More than 1 2 0,000 Traders 120,000 5 www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT Takung Overview
Initial Listing 2013 12 3 Authorized Agents 3 Fewer than 400 Traders on Platform 400 6 43 New Listings 43 5 Authorized Agents 5 20,000 Traders at Year End 20,000 Trading Volume Exceeds $450 Million per Month 4.5 132 New Listings 132 15 Authorized Agents 15 Crossed the 80,000 Trader Threshold 80,000 Trading Volume Exceeds $1.6 Billion per Month 16 2014 2015 2016 Milestones www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT 48 New Listings 48 25 Authorized Agents 25 1 3 0,000 Traders 130,000 Trading Volume up to $1. 9 Billion per month 19 Takung Online Launched Takung Online Unit+ Launched Unit+ A Tier Established A 201 7 (Est.) ( )
Takung Online Direct Artist to Buyer (1 to 1) Fee Paid by Seller 300 Artists by the End of 2017 2017 300 Social Media Art Blog Home Decorations Content 7 www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT
Revenue Drivers Revenue Drivers 2015 2016 2017 FIRST QUARTER (Actual) 1 SECOND QUARTER ( Actual ) 2 THIRD QUARTER ( Preliminary ) 3 FOURTH QUARTER ( Estimate ) 12 MONTHS ENDED DEC. 31, 2017 ( Estimate ) 12 /31/2017 12 Listing Fees $4,834,126 $10,914,300 $2,307,946 $843,205 $1, 46 0,000 $2, 3 00,000 $ 6,910,000 Commissions $6,145,261 $5,416,436 $1,670,613 $1,803,212 $1,5 00,000 $1, 57 0,000 $ 6,550,000 Management Fees $115,452 $1,761,977 $292,551 $272,420 $400,000 $ 4 50,000 $ 1,410,000 Other $241,012 $1,050,716 $483 $236 $3,000 $500 $ 4,000 8 www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT
Select Financial Metrics 9 www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT Income 201 4 201 5 201 6 2017 6 MONTHS ENDED JUNE 30, 2017 6/30/2017 6 Gross Revenue $4,719,862 $11,335,851 $19,143,429 $7,190,666 Gross Profit (%) ( %) 91% 93% 94% 93% Net Income $1,369,537 $5,436,109 $6,370,694 $1,119,658 Shares Outstanding 9,332,276 11,119,276 11,169,276 11,188,882 Earnings Per Share (EPS ) $0.15 $0.57 $0.60 $0.10 Balance Sheet 201 4 2015 2016 2017 AS OF JUNE 30, 2017 6/30/2017 Cash $2,355,839 $10,769,456 $13,395,337 $15,547,604 Restricted Cash $6,865,821 $16,195,289 $21,743,360 $19,020,425 Liabilities $9,075,723 $18,472,318 $30,665,324 $28,216,524 Shareholder Equity $2,048,543 $11,276,895 $17,632,697 $19,459,058
www.websitename.com Incorporated in Late 2012 2012 Reverse Acquired Public Shell in October 2014 2014 10 Uplisted to NYSE in March 2017 2017 3 10 11.2 Million Shares Outstanding 1,120 Unrestricted: 1,808,875 Restricted: 9,380,007 Capital Structure www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT
Grow the new A tier category A Launch Unit + Concept to include collectable assets other than art: Unit+ List portfolios with more important art including Western art Introduce Takung brand to US art collectors and investors Growth Initiatives 11 www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT Sports Memorabilia Golden Newspapers Other
Compelling Business Model with Significant Growth Potential First Chinese Company to be Uplisted to the NYSE in more than Five Years 5 Earnings Leverage on a Par with E - commerce Sector High Gross Profit with Substantial Free Cash Flow Platform Designed for Eventual Use with Other Asset Classes Destined to Become the Premier Art E - commerce Platform with the Most Extensive Chinese Art Database in the World Over the Next Several Year s, Takung Expects more than 1,000,000 Users Will Buy, Sell, and Learn about Art on the Takung Platform 100 Investment Considerations 12 www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT
13 Thank you for your time and interest. Contact: leslie.chow@takungae.com www.takungart.com TAKUNG ART COMPANY LTD NYSE AMERICAN: TKAT
Exhibit 99.2 Based in Hong Kong, Takung Art Company Ltd. (NYSE American: TKAT) provides collectors and investors with a safe and liquid online platform to learn about, invest in, and buy and sell fine art, including paintings, calligraphies, jewelry and precious gems as well as sports memorabilia and other collectables. Since its inception in 2012, the Company has been focused on marketing its platform to China s growing middle class, which, despite its increased wealth, still had limited access to that nation s world-leading fine art market. Through Takung, however, this group now comprising 200 million people and expected to reach 550 million by 2024 can easily and safely invest in fine art and valuable collectables. At the same time, the platform offers artists an alternative venue in which to sell their art and gain widespread recognition. Takung s platform consists of the following: Unit Trading Takung arranges for artworks to be divided into ownership units which are traded by investors on the Company s proprietary Unit Trading platform. The process begins when either an individual artwork or portfolio of artworks is presented to Takung by one of the Company s authorized agents. If Takung believes the works are attractive to its traders and will appreciate long-term, the Company divides the portfolio into equal ownership units based on the portfolio s appraised value and lists the units for sale. The artwork s owner pays Takung a one-time listing fee of 22.5 to 48 percent of the artwork s offering price, a fee consistent with fees charged by auction houses throughout China. In addition to the listing fee, Takung receives a trading commission on each trade made on the platform as well as management fees covering insurance, storage, and transportation of artwork. Takung s Unit Trading platform will grow from less than 20,000 active traders at the end of 2015 to more than 130,000 active traders by the end of 2017 with trading volume up to $1.9 billion per month. A Tier Unit Trading Takung s A Tier Unit Trading platform comprises portfolios that have performed well on the Unit Trading platform and which meet an elevated set of standards including higher levels of liquidity, market value, number of owners, and number of traders. The A Tier makes it easier for first-time traders to quickly identify attractive portfolios, while also encouraging veteran traders to increase their trading in top-tier artworks an action that significantly improves liquidity for all traders on the platform. Takung Online Takung Online is an e-commerce marketplace that enables artists to promote and sell entire pieces of artwork directly to buyers. This new marketplace was launched in July of 2017 with about 80 listed artists, a number the Company expects to grow to 400 by the end of 2018. Takung Online also provides a social media meeting place for both artists and consumers of art. Visitors to the site can read weekly articles about home decorating as well as receive recommendations on artwork to match the contemporary Chinese lifestyle. Early in 2018, the platform will also offer many home decorating items for sale to complement art purchased by the consumer. The Company anticipates that many Takung Online buyers will ultimately become Unit Platform investors and vice versa. Unit+ In August of 2017, Takung launched Unit+, a new unit trading platform for collectibles including sports memorabilia, wine and other popular items. Similar to the Takung Unit Trading platform, Takung Unit+ will allow investors to buy and trade shared ownership units of portfolios of collectibles. However, unlike the Unit Trading platform, each Takung Unit+ portfolio will contain multiple numbers of the same item, and traders will have the option of direct ownership with physical delivery by trading the units they own for one or more of the items in the portfolio. Revenue Drivers 2015 2016 FIRST QUARTER (Actual) SECOND QUARTER (Actual) 2017 THIRD QUARTER (Preliminary) FOURTH QUARTER (Estimate) 12 MONTHS ENDED DEC. 31, 2017 (Estimate) Listing Fees $4,834,126 $10,914,300 $2,307,946 $843,205 $1,460,000 $2,300,000 $6,910,000
Commissions $6,145,261 $5,416,436 $1,670,613 $1,803,212 $1,500,000 $1,570,000 $6,550,000 Management Fees $115,452 $1,761,977 $292,551 $272,420 $400,000 $450,000 $1,410,000 Other $241,012 $1,050,716 $483 $236 $3,000 $500 $4,000
FINANCIAL PERFORMANCE Takung s financial performance since inception has been marked by consistent profitability, strong cash flow, gross profit margins exceeding 90% and rapid growth in the number of active traders on its platforms. In the future, Takung plans to list portfolios with other important art including Western art and museum quality art and will introduce its brand to US art collectors and investors, a move the Company believes will help it become among the most prestigious art trading and e-commerce platforms in the world. Income 2014 2015 2016 2017 6 MONTHS ENDED JUNE 30, 2017 Gross Revenue $4,719,862 $11,335,851 $19,143,429 $7,190,666 Gross Profit (%) 91% 93% 94% 93% Net Income $1,369,537 $5,436,109 $6,370,694 $1,119,658 Shares Outstanding 9,332,276 11,119,276 11,169,276 11,188,882 Earnings Per Share (EPS) $0.15 $0.57 $0.60 $0.10 Balance Sheet 2014 2015 2016 2017 AS OF JUNE 30, 2017 Cash $2,355,839 $10,769,456 $13,395,337 $15,547,604 Restricted Cash $6,865,821 $16,195,289 $21,743,360 $19,020,425 Liabilities $9,075,723 $18,472,318 $30,665,324 $28,216,524 Shareholder Equity $2,048,543 $11,276,895 $17,632,697 $19,459,058 SAFE HARBOR STATEMENT The matters discussed in this presentation, particularly information regarding future revenue, earnings, business plans and goals, consist of forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor created by these sections and involve risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. Such statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management s assumptions and the Company s future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially. The Company undertakes no obligation to
publicly update or revise any forward-looking statements. All for- ward-looking information contained herein is subject to the risk factors and uncertainties described in the Company s filings with the Securities and Exchange Commission, which risk factors and uncertainties are incorporated by reference as though fully set forth herein. TAKUNG ART COMPANY LTD. www.takungart.com NYSE AMERICAN: TKAT