Deals from FinancePlus East Asia

h4>Deals from FinancePlus East Asia
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Chemical-Mechanical Wood Pulp and Microcrystalline Cellulose (MCC) Project in China

This Project, located in mainland China, is actively seeking a financing partner:

USD515m (@ Pulp&Paper PE=40, NAPS = RMB4/share)

Project: 100.000 T/A Chemi-mechanical Wood Pulp Project
Industry: Pulp and Paper (P&P) -> MMC (Microcrystalline Cellulose And Carboxymethylcellulose Sodium
Location: Northern Jiangsu Province, Mainland China
Investment: USD20m (Stage I Chemi-mechanical Wood Pulp)
ROI: 27% NPAT
Investment Structure: Equity (20% project executive/80% investor) and Debt 10%~12% p.a. + fee
IPO Prospect: xcellent (Traditional industrial product, capital intensive, strong cash flow, strong financial structure)
Market Cap. @ IPO:
Project Stage: Early (with company reg, production permit, land permits all in place)

Project Overview:
The Project is a two stage, chemi-mechanical wood pulp turns MCC project. The first stage of the project, wood pulp production, is divided into three production lines that construct and operates independently, therefore stage one of the project will take only six month to deliver products and generate revenue. Chemi-mechanical wood pulp is known as “multipurpose pulp”, used in many different type of paper production. It offers excellent profit margin (27% NPAT) as well as enjoying excellent market environment (nationally, over 60% imported, locally, some major paper producers imports over 90%), making locally produced products extremely competitive compare to imported products.

The second stage of the project, involves the production of MCC from rice and wheat straws, deriving high value products from waste materials. The mainland China govt have always had difficulties dealing with rice and wheat straws,traditional pratice of burning results in severe air pollution thus legally banned for many years, while current solution of energy production is extremely inefficient as far as cost is concerned. The second stage MCC project targets this problem by extracting high worth MCC from waste materials that is difficult to treat, thus enjoys excellent policy treatments.

Overall, the high profit margin and excellent market environment ensures a strong platform for the project to progress into stage two, MCC production. The introduction of MCC into the project will provide excellent IPO advantages, both from policy and market perspective, ensuring excellect IPO potential and excellent returns.

Project Location Analysis:

The Project is located at the northern part of Jiangsu province of mainland China. Northern Jiangsu province is known as the “home of poplar”, one of three major poplar plywood industry group within China. Incidentally, poplar is the perfect wood type to use as raw material for the first stage, wood pulp production, of the project. Apart from local resources, the project is also located within 150km from the northern sea port of Lian’yun’gang, provide cost-effective access to imported wood chips.

Northern Jiangsu province is also one of China “granary”, a major wheat and rice production area, providing abundant raw materials for MCC production. Between 2000 – 2007, northern Jiangsu province grain production accounts for more than 50% of the entire Jiangsu Province. While certain degree of decline can be observed as industrialization took over as priority since 2007, the areas still provides more than adequate raw materials to fulfill the project’s need.

Market Analysis:
Ever since 2004, a series of over 70 major water pollution events caused by industrial pollution, had led to the centralization of environmental assessment to Beijing, provincial govts had no rights granting production permits without the assessment report from the central. Combined with policy shifts, the result is an extremely imbalance in the supply and demand from paper production pulp. Nationally, over 60% of the paper production materials are imported while individual major paper producers near the project imports over 90% of their raw materials. Compare to locally produced materials, nearby paper producers are paying a 30% ~ 40% premium for imported raw materials, creating an extremely favorable market environment for our project. We have already established intention agreement with some of these clients for our product, ensuring excellent sales and cash flow prospect.

Investment Analysis:
The first Stage chemi-mechanical wood pulp production is a combination of three independent production lines. Each production line is constructed and produces independently. The design provides excellent financial flexibility with only a minimum of USD6m to have to be in place for the first production line to complete and delivers product, while the remaining part of the USD20m can be invested at a later stage, after the first production line is complete, minimize investor risk. The construction time is also extremely efficient, taking only 4 month to complete and no more than 2 month to tune, delivering products within 6 month, achieve full production capacity within less than two years.

Requirements:
In order for the project to successful progress, there are certain terms that needs to be met by potential investors, they are as followed:
1. A USD500,000 land deposit & processing fee (Deposited into already established company account, controlled by the investor/financier accountant)
2. Investor/financier proof of funds (Reputable financial institution, subject to confirmation by local govt.)
3. Background info on investor/financier (Subject to confirmation by local govt.)

Deal Contact:
Xcel Corporate Consultancy
Dave Lin
[email protected]
008618683376963

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Japan’s Recruit Buys European Restaurant Booking Service Quandoo For $219M

TechCrunch
Restaurant reservation service Quandoo, a major European rival to OpenTable, is being acquired by Japan’s Recruit in a deal worth 27.11 billion yen, that’s around $219 million.

Berlin-based Quandoo, which was founded in 2012, took a strategic investment from Recruit — via its RGIP venture capital fund — in October, and now the Japanese company has returned to snap up the remaining 92.91 percent of the company to give it 100 percent ownership. Last year Quandoo closed its Series $25m growth financing round lead by Piton Capital, along with Holtzbrinck Ventures and DN Capital.

Quandoo is an online reservation system that is used by over 6,000 restaurants in 10 countries in Europe, South Africa, Lebanon and Singapore. The company said that it is seeing particular momentum in Germany, Italy, Austria, Switzerland, Turkey and Poland, but it did not provide more specific figures.

The deal is an interesting one because Recruit, as the name suggests, started out in the business of connecting job seekers with potential employers when it began life in 1960. It has since branched out to become a “global matching platform” that offers 10 different kinds of services, including HR, education, travel, housing and (in Japan) dining.

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Samsung Acquires LoopPay, Maker Of An Apple Pay Competitor

Samsung has acquired LoopPay, the companies announced today. The acquisition confirms earlier rumors that suggested the two were working closely together on an upcoming project, and suggests Samsung could make use of LoopPay’s technology to offer is own Apple Pay competitor on future devices.

LoopPay even advertises its solution as an alternative to Apple Pay for non-Apple device makers, and advocates its compatibility with systems already in place at retailers throughout the U.S. Its tech currently works using a standalone fob or a CardCase, which incorporates the payment tech into a protective case designed for use with some of the top smartphones currently available. A LoopPay app allows you to input and store payment card information, and the case communicates wirelessly with existing tap-to-pay terminals available at merchants and retailers. It works by mimicking mag stripe technology, meaning it shouldn’t even require updated hardware in most stores.
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Chinese Education App XueXiBao Raises $20M Series B From SoftBank And GSR

education XueXiBao, a homework help app, is the latest educational tech startup in China to receive funding. SoftBank China Venture Capital, an arm of the Japanese telecom giant, and returning investor GSR Ventures led a $20 million Series B in the company. Read More

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Xiaomi Buys 3% Of Chinese Games And Software Giant Kingsoft For $68M

IMG_9835 Xiaomi became the world’s third largest smartphone company based on sales last year, and it also began investing in companies. Its early investments have largely been in hardware, but today it diversified into software after buying 2.98 percent of Kingsoft for HK$527 million (~$68 million). Read More

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Innovative Chinese Drone Maker Gets $10M Boost To Go Mainstream

Forbes
The year got off to a big start, with one of the more interesting startups around — a Chinese drone maker named EHANG — getting funding to the tune of $10 million from US and China venture investor GGV Capital and two prominent angel investors, Nick Yang and Xiaoping Xu.

Derrick Xiong, a co-founder of EHANG, is on a mission to make personal drones mainstream. The first rounding funding should be a boost for the innovative startup, which got its start through a crowd-funding campaign on Indiegogo last November. EHANG raised $600,000 on Indiegogo for its so-called Ghost Drone product.

The Ghost Drone has its innovations. It’s controlled by a smartphone app, and a tilt control feature lets users to control their Ghost Drones by tilting their smartphone. Take off, hover, return and land are all pre-programmed on the app and the Ghost Drone doesn’t require any assembly – talk about Chinese ingenuity!
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Chinese Mobile Development Giant NetDragon Raises $52.5M For Its Online Education Business

online education shutterstock NetDragon, one of China’s leading mobile and games development companies, has raised $52.5 million in Series A funding for its online education business from investors including IDG Capital, Vertex Venture, and Alpha Animation, an animation studio based in Shenzhen. The round values NetDragon’s online education subsidiary at $477.5 million. Targeted at students in kindergarten… Read More

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‘Uber For Logistics’ Startup Lalamove Lands $10M To Expand In China And Southeast Asia

TechCrunch
Lalamove, an Uber-like service for logistics, has raised $10 million to expand its presence across Asia, where it already operates in six cities.

The company, which began life in Hong Kong in December 2013, offers iOS and Android apps that allow customers to move items across a city using its network of ‘regular’ drivers. Its business model is basically akin to an ‘Uber for logistics’ since anyone with a valid license and car can sign up to be a driver.

The $10 million round is led by China’s Crystal Stream Capital, and it includes participation from Geek Founders, Mindworks Ventures, Sirius Venture Capital and Aria Group. Lalamove said a number of unnamed individual investors also took part.

Executive Blake Larson told TechCrunch in an interview that the money will be used to strengthen its position in its existing markets: Hong Kong, Singapore, Bangkok, Taipei and — as of last week — Guangzhou and Shenzhen. The capital will also be used to “further penetrate” China and enter more parts in Southeast Asia.
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Alibaba Competitor Wanda E-commerce Raises $161M At $3B Valuation

TechCrunch
China-based Wanda E-commerce, which hopes to position itself as a rival against Alibaba, has raised one billion RMB (about $161 million) in funding from investment funds Shengke Limited and Hong Kong Xu De Ren Dao E-commerce Investment Co. Wanda E-commerce says this quadruples its valuation to 20 billion yuan (about $3 billion).

Wanda E-commerce was founded in August as a five billion RMB ($814 million) joint venture by mega-conglomerate Wanda and two of China’s biggest Internet firms, Tencent and Baidu. Wanda’s holdings in China include real estate, hotels, movie theaters, and shopping malls, but in the West the company is probably best known for acquiring AMC Theatres and Sunseeker International, a British yacht maker.

In a statement, Wanda E-commerce says it expects to be fully operational in the fourth quarter of this year, when it will also initiate a second round of fundraising. After the funding, Centec Networks now holds a three percent equity stake in Wanda E-commerce, while Xude Rendao holds two percent.
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Chinese Fashion And Lifestyle Site Yetang Raises $5M Led By DCM

Yetang, a Chinese site that sells fashion and lifestyle products by smaller brands and designers around the world, has raised $5 million led by DCM. While smaller e-commerce sites face plenty of competition from formidable rivals like Alibaba’s marketplace Taobao, Yetang co-founder Natasia Guo says her startup’s goal is to figure out how to make shopping more appealing than at other online stores.

“Seventy-four percent of our customers have stated that they usually shop for clothes and accessories on Taobao. So the important question for us is, why don’t these people shop on Taobao all the time, but come to Yetang some of the time?” she tells TechCrunch. “We believe that new and unique products and a fun shopping experience sets Yetang apart, and we will be working hard to make these qualities into competitive advantages.”

In 2014, the first full year Yetang operated, it sold 110,000 products from 800 designers in 34 countries. Guo says its revenue grows 100 percent every three or four months. Yetang is currently focused on expanding within China, but 20 percent of its products are made by overseas designers, and it would like to increase that number.
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