Emerging Market Links + The Week Ahead (December 30, 2024)
Chinese foreclosures pile up, Hong Kong IPO comeback + India tops Asian IPO rankings, Korean buybacks surge, Grab booking "scam," EM stock picks and the week ahead for emerging markets.
The Murray Hunter Substack has noted a lengthy tweet about how SE Asian ride sharing superapp Grab Holdings Limited (NASDAQ: GRAB) has followed the old ‘Air Asia’ playbook with its online booking scam of inserting a “compulsory” 30 sen (roughly several US cents) insurance charge on rides that is hard to opt out of for future rides (if a customer even notices it on their receipt). That may sound like a small charge, but consider this:
Wee looked at the potential extra revenue that might come Grab’s way in this extra add on. If we accept the figure of 2.5 mil rides per day as stated by Grab in its website, the additional daily income is RM750,000 [US$167,821.5] - the monthly extra income is RM22.5 mil!! [US$5,034,645]
This is a similar business model used by Air Asia in the past. They got fined for this in Australia some years ago. Grab now sees this strategy as a blue ocean until its closed off.
I rarely need to use taxis or ridesharing apps - so I can’t comment - other than to say that Malaysians have been telling me for years that Grab is “expensive” in Malaysia and to use other (I guess local…) ride sharing app alternatives.
In the “alternative” financial news and blogging space though, I know that I have heard/read either (more likely…) Catherine Austin Fitts (Solari Report) or Yves Smith (naked capitalism) complain specifically about American companies becoming increasingly “scammy,” or rather having their entire business or profit models built on or around committing outright fraud (with the regulators and politicians increasingly letting them get away with it…)
However… Back in the late 1990s, I remember a relative at a holiday dinner complaining about a mysterious small charge (like $13) appearing on their credit card statement (which they actually look at…). After asking the wife about it, he called the card company who quickly removed it with other relatives commenting, “imagine if you charged everyone a similar amount, how many would notice and how much money would the card company etc make?…”
[It will be interesting to see whether Malaysia or other SE Asian governments look into and put a stop to this Grab charge…].
🔬 Emerging Market Stock Pick Tear Sheets
$ = behind a paywall
🇨🇳 🇭🇰 China & Hong Kong Stock Picks (November 2024) Partially $
Cafe De Coral, Zhejiang Dingli, Aac Technologies Holdings, Sunny Optical, Chow Tai Fook Jewelry Group, BOE Varitronix, BYD Electronic International Co Ltd, Baozun, iQIYI, PDD Holdings, Ke Holdings, Baidu, NIO Inc, Kuaishou Technology, Atour Lifestyle Holdings, ZTO Express, Xpeng Inc, Tongcheng Travel Holdings, Trip.com, Weibo Corp, Xiaomi, Great Wall Motor, CSPC Pharmaceutical Group, Alibaba, Geely Automobile Holdings, JD.com, NetEase, Bilibili, BeiGene, FIT Hon Teng, Tencent, Tencent Music Entertainment Group, Zhejiang Leapmotor Technology, VSTECS Holdings Ltd, Carote Ltd, China Life Insurance, YUM China, Innovent Biologics, Maxscend Microelectronics, China Pacific Insurance (Group) Co, Shanghai United Imaging Healthcare & Li Auto
CMB International 20+ high conviction stock ideas: Li Auto, Geely Automobile Holdings, China Hongqiao Group, Bosideng International Holdings, JNBY Design, YUM China, Xtep, Proya Cosmetics, BeiGene, Shanghai United Imaging Healthcare, China Pacific Insurance (Group) Co, PICC Property and Casualty Co Ltd, Tencent, NetEase, Alibaba, Greentown Service Group Co, FIT Hon Teng (Foxconn Interconnect Technology), Xiaomi, BYD Electronic International Co Ltd, Zhongji Innolight Co Ltd, NAURA Technology Group & Kingdee International Software Short Idea: Sinotruk Hong Kong Ltd
🌐 EM Fund Stock Picks & Country Commentaries (December 29, 2024) Partially $
ASEAN stocks that benefit from a rising middle class, Saudi Arabia's transformation, India trip report, Central & Eastern Europe opportunities, more book selections + 2025 outlooks, etc.
📰🔬 Emerging Market Stock Picks / Stock Research
$ = behind a paywall / 🗃️ = Link to an archived article
🇨🇳 CATL leads new charge of Mainland-listed companies into Hong Kong (Bamboo Works)
The world’s largest EV battery maker, which is already listed in Shenzhen, is reportedly exploring an IPO to raise $5 billion or more from a second listing in Hong Kong
Contemporary Amperex Technology Co. Ltd. (CATL) (SHE: 300750) has reportedly hired advisers for a potential Hong Kong listing that could become the city’s largest in more than three years
The world’s largest EV battery maker’s biggest appeal for foreign investors could be its ability to remain consistently profitable despite recent turmoil in its sector
🇨🇳 Seyond may get stuck in slow-moving SPAC lane to Hong Kong listing (Bamboo Works)
The maker of autonomous driving LiDAR sensors has agreed to a backdoor-listing deal under a 3-year-old Hong Kong SPAC program that has yet to gain much traction
Seyond has agreed to merge with TechStar Acquisition Corp (HKG: 7855), a special purpose acquisition company (SPAC), to go public through a backdoor listing in Hong Kong
Listing through Hong Kong’s 3-year-old SPAC program has proven difficult due to tough requirements and investor caution
🇨🇳 Lenovo Turning To AI To Drive A New Chapter Of Growth (Seeking Alpha) $ 🗃️
🌐 Lenovo Group (HKG: 0992 / FRA: LHL / LHL1 / OTCMKTS: LNVGY / LNVGF) - Designing, manufacturing & marketing consumer electronics, PCs, software, servers, converged & hyperconverged infrastructure solutions, etc. 🇼
🇨🇳 GDS moves closer to breakup with REIT spinoff plan (Bamboo Works)
The company could break itself into three pieces next year, one a China-based REIT, one for its China-based data center business, and one for its global data center business
GDS Holdings Ltd (NASDAQ: GDS) is reportedly considering a plan to raise 1 billion yuan through a spinoff and separate listing of a REIT containing its China-based real estate assets
The company also appears to be paving the way for a spinoff and separate listing of its fast-growing international business
🇨🇳 Eshallgo looks skyward to cloud gaming to offset sputtering office business (Bamboo Works)
The company announced a move into cloud-based games with Tencent (HKG: 0700 / LON: 0LEA / FRA: NNND / SGX: HTCD / OTCMKTS: TCEHY) as it struggles with plunging profits from its core office equipment business
Recently listed Eshallgo Inc (NASDAQ: EHGO) has launched a cloud gaming initiative with Tencent, with CS Asia Opportunities Master Fund providing $20 million in supporting financing
Eshallgo’s shares fell 23% over five trading days after the deal’s announcement, as investors questioned the move so far from the company’s core office equipment business
🇨🇳 Goldlion joins stock retreat as brand loses its luster (Bamboo Works)
Goldlion Holdings Ltd (HKG: 0533 / FRA: GLH / OTCMKTS: GLLHF)
The menswear maker has become the latest firm to announce plans to delist from the Hong Kong market as it grapples with weak Chinese consumption
The privatization is pitched at a premium of 24.85% over the stock’s pre-suspension price, but is about 65% below the net asset value per share
At mid-year the apparel company held about HK$1.07 billion in cash and about HK$3.4 billion in property investments
🇨🇳 Vesync (2148 HK): The Yang Family’s Scheme Offer Is Light but Likely Done (Smartkarma) $
[Small home / smart home appliance maker] Vesync (HKG: 2148 / OTCMKTS: VSYNF) disclosed a Cayman scheme privatisation offer from the Yang family at HK$5.60, a 33.3% premium to the last close price of HK$4.20. The offer is final.
While the offer is marginally above the IPO price, it is light compared to sell-side price targets, peer multiples and historical trading ranges.
Nevertheless, the scrip option, irrevocables and no disinterested shareholder holding a blocking stake facilitate the scheme vote. The offer could be completed by May.
🇨🇳 Cash-hungry Mabwell seeks financial tonic from Hong Kong investors (Bamboo Works)
Despite already having three products on the market, unlike many of its Hong Kong-listed peers, the drug maker is struggling to cover its daily operational costs
Mabwell Shanghai Bioscience Co Ltd (SHA: 688062) said it plans to make a Hong Kong IPO, seeking to replenish its coffers as its current cash is just enough to fund its operations for about two years
The drug maker’s listing plan, combined with other similar applications, point to another bumper year ahead for pharmaceutical IPOs in Hong Kong in 2025
🇨🇳 CPMC Holdings (906 HK): On the Cusp of Being Declared Unconditional (Smartkarma) $
CPMC Holdings Limited (HKG: 0906 / FRA: 8C3)’s offer from ORG Technology Co Ltd (SHE: 002701) is HK$7.21 with a 50% minimum acceptance condition. The first closing date is 10 January.
CCASS data shows that Mr Wei has tendered (22.01% of outstanding shares). Including acceptances, ORG’s shareholding was 46.63% of outstanding shares as of 24 December.
The Board supports the offer, and it is close to being declared unconditional. At the last close and 25 January payment, the gross/annualized spread was 0.8%/10.9%.
🇲🇴 Melco Resorts: Leverage And Capex Are Still Concerns, Even With A Macau Rebound (Seeking Alpha) $ 🗃️
🌏🇨🇾 Melco International (HKG: 0200 / FRA: MX7A / OTCMKTS: MDEVF) 🇭🇰 - Casino & Hospitality + electronic gaming machines. Sub. Melco Resorts & Entertainment Ltd (NASDAQ: MLCO). 🇼
🇲🇴 Fitch tips 18.5pct cut in SJM debt pile by end 2026 (GGRAsia)
Fitch Ratings Inc has affirmed Macau casino business SJM Holdings (HKG: 0880 / FRA: 3MG1 / KRX: 025530 / OTCMKTS: SJMHF / SJMHY)’s long-term foreign-currency issuer default rating at “BB-”, described as a “speculative” rating, with a “stable” outlook.
In a Tuesday memo, the institution said nonetheless it expects a reduction in the firm’s leverage in coming years, relative to its HKD27-billion (US$3.48-billion) debt pile measured as of September 30 this year. That could come down to HKD22 billion – an 18.5 percent reduction – by the end of 2026, said the ratings agency.
The improvement would be driven by factors including growth of the group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) amid the ramping up of operations at its Grand Lisboa Palace casino resort (pictured) in Cotai, stated Fitch.
🇹🇼 ASE Technology Holding: The Undervalued Largest OSAT In The World (Seeking Alpha) $ 🗃️
🌐 ASE Technology Holding (NYSE: ASX) - Independent semiconductor manufacturing services in assembly, test, materials & design manufacturing. 🇼 🏷️
🇹🇼 Taiwan Semiconductor: The Powerhouse At The Heart Of The AI Revolution (Seeking Alpha) $ 🗃️
🇹🇼 TSMC: Market Outperformance Expected, Driven By N2 Advancements And Strong ASIC Demand (Seeking Alpha) $ 🗃️
🇹🇼 TSMC: Time To Dump Shares (Seeking Alpha) $ 🗃️
🌐 Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE: TSM) - World's largest dedicated independent (pure-play) semiconductor foundry. 🇼 🏷️
🇰🇷 Korea Electric Power: South Korea's Power Giant Is On Sale (Seeking Alpha) $ 🗃️
🇰🇷 KEPCO (NYSE: KEP / KRX: 015760 / FRA: KOP) or Korea Electric Power Corporation - Integrated electric utility company. Generation, transmission & distribution of electricity in Korea where it’s the largest electric utility. 🇼 🏷️
🇰🇷 NPS: Portfolio Rebalance Could Lead to Buying At Least 25 Trillion Won in Korean Stocks in 2025 (Douglas Research Insights) $
In 2025, the [National Pension Service] NPS could purchase significant amounts of Korean stocks (at least 25 trillion won) which could act as support in the domestic stock market.
At the end of September 2024, NPS's domestic stock portfolio was 12.7% of its total assets, a 2.2% lower than NPS's domestic stocks target at the end of 2025 (14.9%).
The top five net purchases by the NPS and local pension funds of Korean stocks in the past one month include Samsung Electronics (KRX: 005930 / 005935 / LON: BC94 / FRA: SSUN / OTCMKTS: SSNLF), Kakao [Kakao Corp (KRX: 035720)?], SK Innovation (KRX: 096770 / 096775), Hyundai Motor (KRX: 005380 / FRA: HYU / OTCMKTS: HYMTF), and Samsung Electro-Mechanics Co Ltd (KRX: 009150 / 005935).
🇰🇷 Our Screening Process Methodology for Picking Top Small Cap Stocks in KOSPI in 2025 (Douglas Research Insights) $
In this insight, we provide our screening process methodology for picking top small cap stocks in KOSPI in 2025.
We used a 7 step process to narrow down a list of 30 stocks in KOSPI including market cap, ROE, sales growth, P/E, P/B, and Smartscore.
The top five stocks on the Korean small cap stocks screen include Binggrae (KRX: 005180), Innocean Worldwide (KRX: 214320), Hanil Holding (KRX: 003300), Miwon Chemicals (KRX: 134380), and Daechang Forging (KRX: 015230).
🇰🇷 Korea Small Cap Gem #31: Daesang - A Consistently Profitable F&B Company Run by the Lim Sisters (Douglas Research Insights) $
Daesang is one of the leading F&B companies in Korea. It is especially well known for its sauces, kimchi, and miwon (MSG) food ingredients.
Daesang has relatively attractive valuation multiples. It is trading at P/E of 5.6x, P/B of 0.46x, and EV/EBIT of 6.4x in 2025. Daesang consistently generates positive net profit.
Daesang Holdings (KRX: 084690 / 084695) is the largest shareholder of Daesang Corp (KRX: 001680 / 001685) with a 39.3% stake. Two sisters (Lim Sang-Min and Lim Se-Ryeong) are the two largest shareholders of Daesang Holdings.
🇰🇷 A Potential JV Between E Mart and Alibaba's Korean Operations Could Value the JV at About $4 Billion (Douglas Research Insights) $
On 26 December, Reuters mentioned that E-Mart (KRX: 139480) could announce a major JV announcement with Alibaba (NYSE: BABA)’s Korean operations that could value the JV at about $4 billion.
The official launch of the JV is expected to take place sometime in 1H 2025. Gmarket and AliExpress Korea will become subsidiaries of this JV.
Although this is not a done deal, this potential JV between Gmarket and AliExpress Korea is likely to have a positive impact on E Mart Inc (139480 KS).
🇮🇩 Vale Indonesia: First New Project Guidance, Rating Upgrade (Smartkarma) $
Vale Indonesia Tbk PT (IDX: INCO / FRA: XT3B / OTCMKTS: PTNDF) has released the first guidance for its new projects with nickel matte to shift from 100% of revenue to 49% by 2029E, with nickel ore rising to 48%
S&P has upgraded the company’s credit rating to BB+ from BB, placing it ahead of Indonesia’s BB- country rating and below the BBB rating of parent company Vale
We expect a weak nickel price will weigh on the shares in early 2025, although there could be considerable long-term upside from new projects and multiples remain low
🇮🇩 GoTo Gojek Tokopedia (GOTO IJ) - Barbell Strategies and Fintech to Dominate in 2025
GoTo Gojek Tokopedia (IDX: GOTO / FRA: CK8 / OTCMKTS: GTOFF) remains optimistic for the coming year, with increasing focus on converting hemat users to take up more premium products and it expands its suite of fintech offerings.
Focus on profitability will remain core, with an emphasis on product-led initiatives such as GoFood Plus and GoFood Express, and increasing emphasis on growing its fintech offering across products.
GoTo is increasingly using AI to improve both the customer experience and improve efficiencies. Advertising will increasingly become a tool to improve take rates with Tokopedia providing valuable cash flow.
🇲🇾 Grab follows the old ‘Air Asia’ playbook with its online booking scam (Murray Hunter)
Wee Choo Keong who operates a ‘corruption buster website’ that the MCMC doesn’t like discovered an old scam used by Air Asia until the Malaysian Aviation Commission (MAVCOM) stopped the practice.
Grab Holdings Limited (NASDAQ: GRAB) has started inserting a ‘compulsory’ 30 sen insurance charge on the rises booked through its app. Customers will only see the charge on their receipt from the driver after arriving at their destination. For the first time you use the app, the charge will appear on the bill. You are only able to opt out of this charge in future bookings by clicking on the line below the charge (opt out here) on the receipt.
This line would be difficult to see if you are getting out of a vehicle and heading out to your date, meeting, flight, or shopping trip etc.
Wee looked at the potential extra revenue that might come Grab’s way in this extra add on. If we accept the figure of 2.5 mil rides per day as stated by Grab in its website, the additional daily income is RM750,000 - the monthly extra income is RM22.5 mil!!
🇮🇳 Infosys Presents Strong Upside But Maybe Overvalued (Seeking Alpha) $ 🗃️
🇮🇳 The Beat Ideas: Triveni Engineering & Industries Ltd -Ethanol, Water, Demerger Play (Smartkarma) $
Triveni Engineering & Industries (NSE: TRIVENI / BOM: 532356)'s acquisition of Sir Shadi Lal Enterprise Ltd (BOM: 532879) is expected to add to the bottom line as it is located in the same region.
The resumption of the molasses-based Ethanol plant would benefit as the previous year's company closed operations early due to non-availability of cane.
The demerger of the turbine is expected to be the major value-creation proposition.
🇮🇳 Adani Group to divest $2bn stake in Wilmar joint venture (FT) $ 🗃️
First major capital raise since US indicted billionaire Gautam Adani and associates in an alleged bribery scheme
Gautam Adani’s conglomerate will divest its 44 per cent stake in a joint venture food business with Singapore’s Wilmar International (SGX: F34 / FRA: RTHA / RTH / OTCMKTS: WLMIF / WLMIY) to focus on its core infrastructure arm, weeks after the US indicted the Indian billionaire and company executives over an alleged multimillion-dollar bribery scheme.
Adani Wilmar (NSE: AWL / BOM: 543458), a 25-year-old joint venture between Adani Group’s companies and Lence, a Wilmar International subsidiary, has a $5bn market valuation.
🇮🇳 Fairfax India (FIH/U CN) － 2024 update (Asian Century Stocks) $
Gearing up for a 2025 BIAL IPO.
Here’s an update on my 2023 deep-dive on Fairfax India Holdings Corp (TSE: FIH.U / FRA: F5X / OTCMKTS: FFXDF). It’s a closed-end fund managed by Prem Watsa’s Fairfax Financial Holdings Limited (TSE: FFH / OTCMKTS: FRFHF). It focuses entirely on investments in India, most notably a controlling stake in Bangalore International Airport.
In this post, I’ll go through what’s changed since my first write-up and what I think will happen to Fairfax India and its portfolio companies in the next few years. Feel free to ask any questions in the comment section below.
🇮🇳 RPSG Ventures (RPSGV): BPO Business Has Normalized | FMCG Business Is Scaling Up (Smartkarma) $
The FMCG business continues to sustain annualized revenue of INR 500cr+ and with Q2FY25 revenue at INR 146cr, it is possible that annualized revenue may now sustain at INR 550cr+.
After having bottomed out a couple of quarters ago, the BPO business - Firstsource Solutions Ltd (NSE: FSL / BOM: 532809), is now performing strong with 6.9% QoQ and 22.7% YoY growth in revenue.
Revenue in the Sports business varies significantly each quarter based on scheduling of the sports events. Accordingly, in Q2FY25, revenues were not significant at INR 20cr.
🇮🇳 The Beat Ideas- Adani Energy Solution: Riding the Electricity Wave (Smartkarma) $ Adani Energy Solutions (NSE: ADANIENSOL / BOM: 539254)
Adani Transmission (ADANIT IN) [Adani Energy Solutions Ltd (NSE: ADANIENSOL / BOM: 539254)] is one of the largest private player in transmission.
The management has guided for 20% YOY revenue & EBITDA growth for long term
Alongside it is trying to diversify from transmission & distribution which are regulated by the government and entered in Smart Meters, Cooling Services etc.
🇮🇳 The Beat Ideas: Strides Pharma~ A Growth Play Post OneSource Demerger (Smartkarma) $
Strides Pharma Science Ltd (NSE: STAR / BOM: 532531) achieved record growth in the US, launched high-ticket generics, and is spinning off OneSource CDMO with a projected valuation of $1.8-$2 billion by Q4FY25.
Deleveraging efforts, diversified revenue streams, and regulatory approvals position Strides for profitability recovery, with expected FY26 EBITDA of ₹1,000 crore, driving long-term growth.
Strides is evolving into a leaner, growth-focused entity with reduced debt, a strong US portfolio, and OneSource spin-off, offering ~25% upside from its current market valuation.
🇹🇷 Unlocking Marti's $8 Billion Opportunity (Seeking Alpha) $ 🗃️
🇹🇷 Marti Otel Isletmeleri AS (IST: MARTI) - Hotels, motels, holiday villages, marinas, restaurants & other touristic facilities.
🌍 Jumia: Cleaning Up The Business For 2025 (Seeking Alpha) $ 🗃️
🌍 Jumia Technologies (NYSE: JMIA) - Operates a pan-African e-commerce marketplace, logistics service & payment service platform. Berlin HQ. 🇼
🌎 MercadoLibre: More Undervalued Than You Think (Seeking Alpha) $ 🗃️
🌎 MercadoLibre: It's Time To Buy On The Latest Pullback (Seeking Alpha) $ 🗃️
🌎 MercadoLibre (NASDAQ: MELI) - Uruguay HQ’d. The largest online commerce & payments ecosystem in Latin America. 🇼 🏷️
🇦🇷 BBVA Argentina Is The Best 2025 Buy: Leveraging On Milei's Miracle (Seeking Alpha) $ 🗃️ (?)
🇦🇷 Bbva Argentina (NYSE: BBAR) - Subsidiary of Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA). Retail & corporate banking to a broad customer base, including individuals, SMEs & large companies. 🇼 🏷️
🇧🇲 Bank of N.T. Butterfield & Son: No Longer A Bargain As Bullish Thesis Has Played Out (Rating Downgrade) (Seeking Alpha) $ 🗃️
🌐 Bank of NT Butterfield & Son Ltd (NYSE: NTB) - Specialized offshore financial services & wealth management. 🇼
🇧🇷 Nu Holdings: 2 Critical External Headwinds To Understand & Exploit (Rating Upgrade) (Seeking Alpha) $ 🗃️
🌎 Nu Holdings (NYSE: NU) - Digital banking platform / fintech. 🇼
🇧🇷 Eletrobras: Political And Economic Pressures Mask Improving Efficiency And Undervaluation (Seeking Alpha) $ 🗃️
🇧🇷🅿️ Centrais Elétricas Brasileiras SA (NYSE: EBR / EBR.B / BVMF: ELET3 / ELET5 / ELET6) or Eletrobras - Electric power holding company. Largest generation & transmission company in Brazil. 🇼
🇧🇷 Suzano: Resilient In Volatile Markets, Poised For Growth In 2025 (Seeking Alpha) $ 🗃️
🇨🇴 Grupo Aval: Improving Financials With The Stock Price Not Reacting (Seeking Alpha) $ 🗃️
🇨🇴🅿️ Grupo Aval Acciones y Valores SA (BVC: PFAVAL) - One of Colombia’s largest banking groups + leader in investment banking through Corporación Financiera Colombiana or Corficolombiana (BVC: CORFICOLCF). 🇼 🏷️
🇲🇽 Wal-Mart de Mexico: The Doubts Are Over, Time For A Comeback (Seeking Alpha) $ 🗃️
🇲🇽 Wal-Mart de Mexico SAB de CV (BMV: WALMEX) - Discount warehouses & stores, hypermarkets, supermarkets & membership self-service wholesale stores. 🇼 🏷️
🇲🇽 Mexico left with 500mn-litre tequila lake after demand slows (FT) $ 🗃️
Note: Becle SAB de CV (Cuervo) (BMV: CUERVO / FRA: 6BE / OTCMKTS: BCCLF) is the world’s largest and oldest tequila manufacturer - Jose Cuervo.
The post-pandemic US thirst for the spirit has faded, leaving the country distilling more than is being sold
Two of the largest tequila brands, Bacardi-owned Patrón and Casamigos, which is now owned by London-listed Diageo (NYSE: DEO / LON: DGE), have been cutting prices for more than a year in response to weaker consumer demand, according to research by Bernstein.
🇵🇪 Compañía de Minas Buenaventura Appears Ready To Resume Strong Gains In 2025 (Seeking Alpha) $ 🗃️
🇵🇪 Compania de Minas Buenaventura SAA (NYSE: BVN) - Precious metals mining & exploration (gold, silver, copper, zinc, etc.). Energy generation & transmission services & industrial activities. 🇼
📰🔬 Further Suggested Reading
$ = behind a paywall / 🗃️ = Link to an archived article
🇨🇳 China Has Limited Firepower to Counter U.S. Tariffs (WSJ) $ 🗃️
While Beijing has already brandished the ways it could hit back at Trump’s levies, such retaliation risks boomeranging
🇨🇳 Postcard from Shanghai (The Great Wall Street - Investing in China)
Snacks, Smartphones, and Social Media Madness
The past couple of days, I’ve been out and about, doing a little on-the-ground “research” in Shanghai (read: wandering around with my eyes open). Hopefully, you’ll find it at least mildly useful—or at the very least, entertaining. Disclaimer: this is all personal observation, not a peer-reviewed study.
🇨🇳 Beijing seeks to curb ‘shakedown’ detentions of Chinese executives (FT) $ 🗃️
Senior figures at more than 80 listed companies were held by local authorities in 2024, FT analysis finds
🇨🇳 2024: ‘overseas gambling’ still a no-no for China (GGRAsia)
But China’s ongoing campaign against mainland residents engaging in “overseas gambling” showed no sign of abating during the year. Warnings were issued to Chinese citizens by the country’s diplomatic missions within a number of regional casino jurisdictions.
China’s amended criminal code, that outlaws anyone assisting in cross-border gambling, came into effect from March 1, 2021. A central government campaign against it has been consistently pursued since then.
In Asia Pacific, Thailand could legalise casino business by October 2025, according to one of the country’s opposition MPs speaking to GGRAsia on the sidelines of the Thai Entertainment Complex Summit in the country’s capital, Bangkok, in early December.
At the same event, a number of commentators and analysts said Thailand should not assume it can build such an industry by focusing on Chinese customers.
🇨🇳 Private equity investors trapped in China as top firms fail to find exit deals (FT) $ 🗃️
Sales and listings of Chinese companies by world’s biggest buyout groups have ground to a halt, data shows
🇨🇳 In Depth: China’s Banks Feel the Strain as Foreclosures Pile Up (Caixin) $
The number of foreclosed properties in China has increased dramatically as families and businesses struggle to meet mortgage repayments. This, together with the ongoing economic downturn, is fueling concerns about the impact on the financial sector.
In the first 10 months of this year, foreclosed properties listed for auction rose by more than 63% year-on-year, reaching 546,000 units. This follows annual increases of more than 20% in both 2023 and 2022, according to Beijing Guoxinda Data Technology Co. Ltd. And they are proving harder to sell.
🇨🇳 In Depth: Canal Fever Grips China Amid Slowing Growth (Caixin) $
China is in the grip of canal fever.
As the government steps up its long-term strategy to turn the country’s inland waterways into a network of interconnected arteries that will boost trade and economic growth, at least five major canal projects costing hundreds of billions of yuan are either being built or planned by provincial governments.
They include the 135-kilometer Pinglu Canal in Southwest China, the first manmade waterway connecting a river to the sea to be built since the founding of the People’s Republic of China in 1949, the 1,988 km Zhejiang-Jiangxi-Guangdong (Zhe-Gan-Yue) north-south canal system — which will be even longer than the Beijing-Hangzhou Grand Canal built 2,000 years ago — and an ambitious project led by the Henan provincial government that reportedly involves connecting waterways between the Yellow River, Huai River, and Yangtze River and provide direct access to the Yangtze River Delta.
🇭🇰 In Depth: Hong Kong IPO Market Stages Comeback After Dismal 2023 (Caixin) $
Investors in the Hong Kong IPO of Chinese cosmetics firm Mao Geping Cosmetics (HKG: 1318) got an early Christmas present on Dec. 10 when the company made its debut — the shares rose as much as 92% before closing the day 77% higher.
It was the best first-day performance in four years and a further sign that the three-year slump in IPOs on the Hong Kong stock market is finally over.
🇰🇷 Surging Share Buybacks in Korea in 2024 (Douglas Research Insights) $
Capitalizing on the lower share prices combined with the government's pressure for Corporate Value up improvements, the share buybacks surged in Korea in 2024.
As of 27 December 2024, the total treasury shares planned acquisition amount by Korean companies increased by 215% YoY to 11.83 trillion won in 2024.
There have been some mixed share price performances among the companies announcing meaningful share buyback/cancellation announcements this year.
🇰🇷 Three Presidents in One Month in South Korea - What's Next? (Douglas Research Insights) $
The acting South Korean President Han Duck-Soo was impeached by the South Korea's Parliament on 27 December. Choi Sang-Mok (finance minister) is now the new, acting President of South Korea.
There could be multiple impeachments of acting Presidents in the next several weeks which would be unprecedented and raise further concerns about the lack of political stability in South Korea.
Amid all this political uncertainty, Yoon Suk-Yeol's approval rating has been improving sharply to more than 30%.
🇰🇷 Change in Regulation of Treasury Shares Allocation Post Spinoffs Starting January 2025 (Douglas Research Insights) $
Starting January 2025, there will be a major change in the regulation regarding the use of treasury shares during a company spinoff process.
The main change involves the practice of allocating newly issued shares to existing treasury shares held by companies during corporate spinoffs.
This practice will now be banned which should help to reduce the wrongful use of treasury shares and improve minority shareholders' rights.
🇰🇷 Dividend Procedure Improvement Plan in Compliance with Global Standards Is Passed into Law (Douglas Research Insights) $
Amid chaos in Korean politics (including impeachment of the Acting President Han Duck Soo), the FSC announced that the change in the procedure for quarterly dividends was passed into law.
The main change that has been made is that the the investors will know in advance how much they will receive in quarterly dividends.
Amid market turmoil, numerous high dividend paying stocks such as Hankook & Company [Hankook Tire & Technology Co Ltd (KRX: 161390)?], HD Hyundai Electric Co Ltd (KRX: 267260), and KT Corp (NYSE: KT / KRX: 030200 / FRA: KTC) have been outperforming the market this year.
🇲🇾 Chinese automakers urged to use Malaysia as a global launchpad (Caixin) $
As Chinese carmakers accelerate their expansion into Malaysia amid cutthroat competition at home and growing trade tensions with the West, a Malaysian official is advising them to use the country as a launchpad into the rest of Southeast Asia, and beyond.
“If they’re focusing on this Malaysian market, the business model is wrong. They need to look at least at the ASEAN region,” Malaysian Investment Development Authority (MIDA) CEO Sikh Shamsul Ibrahim Sikh Abdul Majid told Caixin at the Malaysia-China Summit in Kuala Lumpur last week.
🇮🇳 Thematic Report: India- World’s Next Hotspot for Premium Brands (Smartkarma) $
Premiumization is reshaping India's consumer market, with rising demand for high-quality products across FMCG, automobiles, electronics, and luxury goods driven by growing affluence and aspirations.
India’s per capita GDP surpassing $2,500 and increasing digitalization have unlocked significant growth in premium categories, positioning India as a global hotspot for aspirational consumption.
The shift from affordability to quality signals immense opportunities in premium segments, making it essential for businesses to innovate while balancing premium and budget-friendly offerings.
🇮🇳 Thematic Report: Is India Shifting from Essentials to Experiences in Consumer Spending? (Smartkarma) $
Over the last decade, Indian consumer spending has shifted from essentials like food and housing toward services like healthcare and education, reflecting rising incomes and evolving priorities.
Although food and beverages remain the largest spending category, their share decreased from 30.5% to 28.2% in the last decade.
Within the food and beverage category, there is a growing preference for protein-rich foods and packaged foods while spending on staples like bread and cereals has decreased.
🇮🇳 India roars ahead of China to top Asian IPO rankings (FT) $ 🗃️
Fast-growing Indian market behind only the US in money raised by company listings
🇦🇷 Argentina’s world-beating currency rally puts pressure on Javier Milei (FT) $ 🗃️
Peso allowed to rise sharply this year in real terms, fuelling competitiveness concerns
📅 Earnings Calendar
Note: Investing.com has a full calendar for most global stock exchanges BUT you may need an Investing.com account, then hit “Filter,” and select the countries you wish to see company earnings from. Otherwise, purple (below) are upcoming earnings for US listed international stocks (Finviz.com):
📅 Economic Calendar
Click here for the full weekly calendar from Investing.com containing frontier and emerging market economic events or releases (my filter excludes USA, Canada, EU, Australia & NZ).
🗳️ Election Calendar
Frontier and emerging market highlights (from IFES’s Election Guide calendar):
Croatia Croatian Presidency Dec 31, 2024 (t) Confirmed Jan 5, 2020
Ecuador Ecuadorian National Assembly 2025-02-09 (d) Confirmed 2023-08-20
Ecuador Ecuadorian Presidency 2025-02-09 (d) Confirmed 2023-10-15
Cayman Islands Referendum 2025-04-30 (d) Confirmed
Cayman Islands Cayman Legislative Assembly 2025-04-30 (d) Confirmed 2021-04-14
Philippines Philippine Senate 2025-05-12 (d) Confirmed 2022-05-09
Philippines Philippine House of Representatives 2025-05-12 (d) Confirmed 2022-05-09
📅 Emerging Market IPO Calendar/Pipeline
Frontier and emerging market highlights from IPOScoop.com and Investing.com (NOTE: For the latter, you need to go to Filter and “Select All” countries to see IPOs on non-USA exchanges):
Park Ha Biological Technology Co. Ltd. PHH Dawson James Securities/ D. Boral Capital (formerly EF Hutton), 1.2M Shares, $4.00-4.00, $4.8 mil, 12/27/2024 Priced
(Incorporated in the Cayman Islands)
We manufacture skincare products, including anti-aging products and exfoliation products. Our product line covers almost 200 items.
We sell our skincare and beauty products in our own stores and through a network of franchisees throughout China.
Our operating subsidiaries specialize in providing skincare and cosmetic products under our brand name “Park Ha” in China. Our operating subsidiaries develop our proprietary beauty products and offer complimentary after-sales beauty services in our physical stores. Park Ha Jiangsu, in addition to operating our two physical stores, is the research and development center focusing on skincare products development and improvement for sensitive skin. Xinzhan leads the marketing and promotional efforts and is the entity in charge of our franchising business. Park Ha Shanghai is a training center for our franchisee staff. As part of our value-added service for our products, our directly operated and franchise stores offer “light beauty experience,” a quick complimentary after-sales beauty service performed in the stores. Light beauty experience is offered to our customers as an effective way to demonstrate how our products are used in order to deliver the best results.
Note: Net income and revenue are for the 12 months that ended March 31, 2024.
(Note: Park Ha Biological Technology priced its small IPO at $4.00 – the low end of its $4.00-to-$6.00 price range – and sold all 1.2 million shares – the same number of shares in the prospectus – to raise $4.8 million on Thursday night, Dec. 26, 2024.)
(Note: Park Ha Biological Technology cut the price range of its small IPO to $4.00 to $6.00 – down from $5.00 to $7.00 originally – and kept the number of shares at 1.2 million shares – to raise $6.0 million, if priced at the $5.00 mid-point of its new range, according to an F-1/A filing dated Oct. 9, 2024. Background: Park Ha Biological Technology filed its F-1 on Aug. 26, 2024, and disclosed the terms for its IPO: The company is offering 1.2 million shares at a price range of $5.00 to $7.00 to raise $7.0 million.)
Cre8 Enterprise, Ltd. CRE Benjamin Securities/ Prime Number Capital, 1.8M Shares, $4.00-5.00, $8.0 mil, 12/30/2024 Week of
We provide financial printing and related services 24/7 to listed companies in Hong Kong, as well as to IPO applicants and private companies. (Incorporated in the British Virgin Islands)
The integrated services provided by Cre8 Hong Kong cover concept creation and artwork design, typesetting, proofreading, translation, printing, binding, logistics arrangement, uploading or making e-Submissions of our customers’ financial reports and compliance documents on the website of the Hong Kong Stock Exchange and media placements and of these services.
Note: Net income and revenue are for the 12 months that ended Dec. 31, 2023.
(Note: Cre8 Enterprise, Ltd. filed its F-1 to go public on Aug.19, 2024, and disclosed the terms for its small-cap IPO: 1.75 million shares at a price range of $4.00 to $5.00 to raise $8 million.)
Diginex Ltd. DGX Dominari Securities/ Revere Securities, 2.3M Shares, $4.00-6.00, $11.3 mil, 12/30/2024 Week of
(Incorporated in the Cayman Islands)
DSL is the wholly owned subsidiary of Diginex Limited. Accordingly, Diginex Limited owns 100% of DSL and all of DSL’s business lines and subsidiaries.
DSL is an impact technology business that helps organizations to address the some of the most pressing Environmental, Social and Governance (“ESG”), climate and sustainability issues, utilizing blockchain, machine learning and data analysis technology to lead change and increase transparency in corporate social responsibility and climate action. Our products and services solutions enable companies to collect, evaluate and share sustainability data through easy-to-use software. The Group’s principal executive office is in Hong Kong where the CEO, CFO and CTO are based. The Hong Kong office is in a co-working shared space facility with 9 seats and the Hong Kong based employees operate under a hybrid model as they work both from the office and from home with the majority of working hours spent working from home. There is also an executive office in Monaco that is used by the Chairman and COO. DSL has subsidiaries in the United Kingdom and United States, however the subsidiary in the United States is inactive. DSL also outsources a component of IT development and maintenance support to engineers in Vietnam.
Our customers include Coca-Cola, HSBC, Unilever and Reckitt, whose brands include Woolite.
DSL has built several accessible, affordable and intelligent products to help democratize sustainability and offers multiple supporting services to complement the product suite.
DSL’s suite of products includes the following:
digninexESG: is an accredited Hong Kong Monetary Authority award winning cloud based ESG platform that offers end to end reporting from topic discovery, data collection to collaborative report publishing. Our diginexESG platform is ISO-27001 Certified (an international standard to manage information security), official partner of Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), World Economic Forum and signatory of the United Nations Principles of Responsible Investment (UN PRI).
The diginexESG platform guides companies through the entire ESG journey; from materiality assessment & stakeholder engagement, framework & indicator selection, the data collection and collaboration process, report creation, validation and ultimately report publishing. By leveraging machine learning and data analytics, diginexESG is able to drive material efficiencies in the reporting process, and the blockchain-enabled audit trail, whereby a record of each data activity is created and stored on a blockchain, provides greater transparency in the data thus increasing its value. Originally targeted specially at Small and Medium Sized Enterprises (SMEs) around the world who are new to ESG reporting and lack the budget or bandwidth to engage with traditional and often expensive consultants, diginexESG has increased its feature set to include functionality that also targets larger companies with more complex organizational structures. diginexESG has also been adopted by global commercial banks like HSBC to help engage with their diverse customer base at scale.
diginexLUMEN: allows companies to execute comprehensive supply chain risk assessments about working conditions within the supply chain. Supplier information is validated against worker feedback and automated risk calculations enables companies to prioritize issues for mitigation and prevention of adverse impacts and improvement efforts.
diginexLUMEN focuses on broad data collection through complex inter-jurisdictional supply chains with a specific focus on social governance issues such as forced labor due diligence, gender risk and child labor risk. Through the collection of data from suppliers and validation by workers, diginexLUMEN relies on proprietary algorithms to generate risk scores to help companies identify which parts of their supply chain require greater scrutiny. The platform then auto-generates corrective action plans which allow the brands and suppliers to work together to remedy potentially problematic areas and reduce the risk score.
diginexAPPRISE: is a multilingual application that collects standardized, actionable data related to working conditions directly from workers in global supply chains. Through tailored question sets, companies can deploy surveys directly to workers in their supply chain on a variety of topics such as responsible recruitment, gender equality and pulse check living and working conditions. The worker voice tool was initially developed by the United Nations University Institute in Macau (UNU-IIST) in partnership with The Mekong Club – an organization working with the private sector to bring about sustainable practices against modern slavery, and was acquired by DSL on December 14, 2021.
diginexAPPRISE is available both as a standalone tool and also fully integrated into diginexLUMEN.
diginexCLIMATE: is a proprietary carbon footprint calculator based on the GHG protocols that is currently available as an integrated part of the diginexESG platform. This allows companies to seamlessly calculate their Scope 1, 2 and 3 carbon footprint as part of their overall ESG reporting journey. Scope 1 are those direct emissions that are owned or controlled by a company, whereas scopes 2 and 3 indirect emissions are the result of the activities of the company but occur from sources not owned or controlled by it.
DSL also offers the following complementary services:
diginexADVISORY: is a service offered by DSL as a complement to the suite of DSL software license sales. diginexADVISORY provides clients strategy and advisory support at every stage of the sustainability journey, including assurance solutions for credible reporting. We also offer custom framework creation for clients who need more complex reporting templates or who want to set a benchmark for others in their industry. As part of diginexADVISORY we also develop and run one-off or programmatic training sessions covering a range of topics from a general introduction to ESG to complex carbon accounting and emissions.
diginexPARTNERS: is a service whereby DSL develops white label versions of both diginexESG and diginexLUMEN for companies who then want to run either diginexESG or diginexLUMEN as an extension of their own service offering. This service often requires custom technology work up front for our clients that generates initial revenue as well as ongoing service and maintenance licenses which generate ongoing recurring revenue.
In addition, DSL develops custom software platforms as part of a project consortiums for organizations like the United States Department of State, United States Department of Labor, and the United Nations.
diginexMANAGEDSERVICES: is service to be offered by DSL to provide oversight and support to clients in operationalizing the rollout of our software products within their organizational structure or supplier base. This service can include training and education, onboarding, data collection and analysis, as well as general on-going support. We will be offering this kind of vertical integration as a service from 2024 onwards and expect it to become an important part of our overall product and service offering.
As of June 2024, DSL has a current headcount of 30, among which 21 are employees in Hong Kong and United Kingdom and 9 are contractors based in France, Germany, Spain, USA, Canada, Dubai, Mexico and Australia.
Note: Net loss and revenue are for the fiscal year that ended March 31, 2024.
(Note: Diginex Ltd. filed its F-1 for its IPO on Sept. 11, 2024, and disclosed the terms – 2.25 million shares at a price range of $4.00 to $6.00 to raise $11.25 million. Background: Diginex submitted confidential IPO documents to the SEC on Feb. 12, 2024.)
Fast Track Group FTRK Network 1 Financial Securities, 3.0M Shares, $4.00-5.00, $13.5 mil, 12/30/2024 Week of
(Incorporated in the Cayman Islands)
Fast Track Events Pte. Ltd. was incorporated as an exempt private company limited by shares in Singapore on March 8, 2012 as an operating company of our businesses. We are a regional entertainment-focused event management and marketing company that provides a full range of services including experiential marketing, artiste endorsement and management, movie premiere organizations, grand openings and concerts. In addition to our expertise in event and concert management, we offer comprehensive value-added services tailored to meet specific client demands. These include media planning and PR management to boost event visibility, technical production planning for seamless execution of audiovisual requirements, and event manpower support for logistical efficiency. Internally, we handle project management and select media press releases, while sourcing technical support from specialized suppliers across event locations. This integrated approach ensures that we deliver high-quality, customized solutions that meet the diverse needs of our clients, enhancing the success and impact of each event we undertake.
Since our inception, we have been instrumental in creating, developing, organizing, hosting, and managing a diverse range of events and concerts for our clients. Leveraging our extensive experience, we have successfully orchestrated large-scale events featuring renowned Asian bands and artistes such as B.A.P, BTS, and David Tao. Additionally, we have hosted international speakers including Michael Franzese and Michelle Yeoh, as well as organized appearances by global celebrities like John Cena and Steven Seagal. Notable milestones include organizing Malaysia’s inaugural Hollywood Movie Premiere Red Carpet event for “Baby Driver,” as well as the acclaimed 2015 BTS Live Trilogy: Episode II The Red Bullet concerts. Furthermore, we managed the successful 2018 Wild Kard Tour showcases held in Sydney and Melbourne, Australia. These events underscore our capability to deliver memorable experiences and highlight our expertise in managing high-profile engagements across different regions and entertainment genres.
We derive a significant portion of our revenue from a small number of customers. For example, one major customer accounted for 100% of our total revenue for the year ended February 28, 2023, and approximately 75% of our total revenue for the year ended February 29, 2024 was generated from two major customers, who are also related parties. Due to the nature of our business, our portfolio of major customers may vary from year to year as our customers may only be holding one or two events and/or concerts in a year and such events and/or concerts may not be held on a regular basis. We may continue to have a concentration of customers in the future, and we face the risk of losing a significant source of revenue if our major customers do not engage our services and we cannot secure new customers on time. Part of our diversification strategy involves expanding into various facets of the entertainment industry, including Live Entertainment and Agency services, which would allow us to not be reliant on a single revenue source and maintain stability even when one segment faces challenges.
Note: Net income and revenue are in U.S. dollars for the fiscal year that ended Feb. 29, 2024.
(Note: Fast Track Ltd. cut its IPO’s size to 3.0 million shares – down from 3.75 million shares initially – and kept the price range at $4.00 to $5.00 – to raise $13.5 million, according to an F-1/A filing dated Nov. 15, 2024. Background: Fast Track Ltd. disclosed the terms for its IPO in an F-1/A filing on Sept. 6, 2024.)
Skyline Builders Group Holding SKBL Dominari Securities, 1.5M Shares, 4.00-$4.00, $6.0 mil, 12/30/2024 Week of
Through our subsidiary, Kin Chiu Engineering, we offer construction services for roads and drainage projects in Hong Kong. (Incorporated in the Cayman Islands)
Kin Chiu Engineering, our subsidiary, is an approved public works contractor. The company works mostly as a subcontractor. However, it is qualified to serve as a main contractor.
Note: Net income and revenue are in U.S. dollars for the 12 months that ended March 31, 2024.
(Note: Dominari Securities is the book-runner with Revere Securities acting as the co-manager. Dominari and Revere replaced the original sole book-runner, Pacific Century Securities, according to Skyline Builders Group’s SEC filings.)
Zhengye Biotechnology Holding Limited ZYBT Kingswood Capital Partners, 1.5M Shares, $4.00-5.00, $6.8 mil, 12/30/2024 Week of
We are a holding company incorporated in the Cayman Islands. Our underlying business is a Chinese company that makes and distributes vaccines for livestock. (Incorporated in the Cayman Islands)
We, through the operating entity, focus on the research, development, manufacturing and sales of veterinary vaccines, with an emphasis on vaccines for livestock. For nearly 20 years, the operating entity has been committed to enhancing the health of livestock. The operating entity markets a diverse range of vaccines, including vaccines for swine, cattle, goats, sheep, poultry and dogs. The operating entity’s products are available in 29 provincial regions across China and are exported overseas to Vietnam, Pakistan and Egypt.
*Note: Net income and revenue are in U.S. dollars (converted from China’s currency) for the 12 months that ended June 30, 2024.
(Note: Zhengye Biotechnology Holding says Kingswood Capital Markets has been named the new sole book-runner, replacing US Tiger Securities.)
(Note: Zhengye Biotechnology Holding Limited increased its IPO’s size to 1.5 million shares – up from 1.25 million shares initially – at a price range of $4.00 to $5.00 – to raise $6.75 million, according to an F-1/A filing dated Aug. 22, 2024. Background: Zhengye Biotechnology Holding filed its F-1 on Jan. 9, 2024, without disclosing terms for its IPO. The company submitted its confidential IPO documents to the SEC in August 2023.)
ALE Group Holding Limited ALEH Dawson James Securities/D. Boral Capital (ex-EF Hutton), 1.3M Shares, $4.00-6.00, $6.3 mil, 1/6/2025 Week of
We are a holding company incorporated in the BVI with all of our operations conducted in Hong Kong by our wholly owned subsidiary, ALE Corporate Services Ltd., also known as ALECS. (Incorporated in the British Virgin Islands)
We provide accounting and corporate consulting services to small and medium-sized businesses. Our services include financial reporting, corporate secretarial services, tax filing services and internal control reporting. Our business is operated through our wholly owned subsidiary, ALE Corporate Services Ltd. (ALECS), a Hong Kong company incorporated on June 30, 2014. Our goal is to become a one-stop solution for all the accounting, corporate consulting, taxation and secretarial needs of small and medium enterprises operating in Asia and the U.S.
**Note: Net income and revenue figures are in U.S. dollars (converted from Hong Kong dollars) for the fiscal year that ended March 31, 2024.
(Note: The company disclosed that E.F. Hutton was named the sole book-runner – replacing Prime Number Capital – according to an F-1/A filing dated March 26, 2024.)
Decent Holding Inc. DXST Craft Capital/D. Boral Capital (ex-EF Hutton), 1.5M Shares, $4.00-4.50, $6.4mil, 1/6/2025 Week of
We are a holding company with no material operations of our own. We conduct our operations in China through our subsidiary, Shandong Dingxin Ecology Environmental Co., Ltd., which is our PRC Operating Subsidiary (“Decent China” or “Operating Subsidiary.” (Incorporated in the Cayman Islands)
We specialize in providing industrial wastewater treatment, ecological river restoration and river ecosystem management, as well as microbial products that are used for water quality enhancement and pollutant removal, through our Operating Subsidiary, Shandong Dingxin Ecology Environmental Co., Ltd. Our main services and products include (1) wastewater treatment, (2) river water quality management, and (3) microbial products that are used for water quality enhancement and pollutant removal. For the fiscal year ended October 31, 2023, our revenue primarily comes from (1) provision of wastewater treatment service, representing approximately 25.49% of our revenue; (2) provision of river water quality management service, representing approximately 46.39% of our revenue; and (3) sale of microbial products, representing approximately 28.03% of our revenue.
We have an in–house research and development (“R&D”) team with members possessing technical expertise in engineering and chemistry as well as a sharp business sense that we believe can accurately capture and meet our customers’ needs. As of the date of this prospectus, we own 12 patents and 9 software copyrights.
We have received a number of industry awards and certifications recognizing our success and achievements, including the “Yantai City Industrial Design Center” awarded by the Yantai Municipal Bureau of Industry and Information Technology in 2022, the “Yantai New Special Expertise Enterprise” awarded by the Yantai Municipal Bureau of Industry and Information Technology in 2022, the “High-Tech Enterprise” awarded by the Shandong Provincial Department of Science and Technology, Shandong Provincial Department of Finance, and Shandong Provincial Taxation Bureau of the State Administration of Taxation in 2019 and 2022, the “Shandong Province ‘One Enterprise, One Technology’ Innovative Enterprises” awarded by the Shandong Provincial Bureau of Small and Medium Enterprises in 2015.
Management Team
Mr. Dingxin Sun is the founder, Chairman of the Board and director of the Company. He has accumulated substantial experience in entrepreneurship in the past two decades, during which he founded multiple companies in Shandong, including Yantai Dingxin Environmental Limited, Yantai Sunshine Gymnastic Limited, Yantai Tongqu Wanxiang Cultural Entertainment Limited. Mr. Sun also worked at Sinopec Yantai branch and served as the general manager of the office, where he was responsible for the retail business of more than 200 gas stations under Sinopec. While at Sinopec Yantai branch, he carried out extensive reform of the business model and compensation model of the Yantai branch and successfully boosted the revenue of gas stations.
Ms. Dingyan Sun is the director of our company. She is the sister of Mr. Dingxin Sun. Ms. Sun has 19 years of experience in accounting. Currently, she is serving as the director and cashier of Decent China, where she is responsible for handling and managing the day-to-day cash flow of the company, including tasks such as cash withdrawals, payments, deposits, and maintaining cash ledgers. Previously from December 2020 to November 2021, she served as the manager of Yantai Development Zone Xingshun Petroleum Co., Ltd. where she was responsible for the overall management of the company’s daily operations, including but not limited to gasoline and diesel fuel retailing, bulk customer delivery and financial accounting. From November 2004 to November 2020, she worked as the accountant of Yantai Development Zone Xingshun Petroleum Co., Ltd and was mainly responsible for the day-to-day operations of the gas station, including accounting documents, account statements, oil settlement, expense review and reimbursement, and other financial duties..
Haicheng Xu is our CEO. Since 2012, Mr. Xu has been working for Decent China as the general manager, responsible for all business docking, market development and sales. He is responsible for expanding the business scope and managing ongoing projects, selecting suppliers and implementing safety control. Prior to joining Decent China, Haicheng XU has held managerial positions at Yantai Huaqiao Hotel, Bohai Ferry Group Co., Ltd. and Yantai Dingxin Cargo Limited from 2000 to 2011, where he acquired industrial knowledge and substantial management experience.
Francis Zhang has been our CFO since September 2024. Mr. Zhang was the Chief Financial Officer and Director of Jiuzi Holdings Inc (Nasdaq: JZXN) from August 2020 to August 2024. Prior to joining Jiuzi Hoildings, Inc., from February 2019 to July 2020, he served as the Executive Director of Shanghai Qianzhe Consulting Co., Ltd, where he was mainly responsible for overseas M&A projects, and follow-on investments and management of newly formed financial holding groups. From June 2013 to January 2019, he served as the Deputy General Manager of Tebon Innovation Capital Co., Ltd, where he was responsible for business development and asset management. From May 2012 to May 2013, he was the Senior Manager of the Investment Department at Sanhua Holding Group, during which he was in charge of overseas M&A projects, new financial investments, and post-investment management. From May 2010 to May 2012, Mr. Zhang was the Investment & Asset Management Supervisor at China Calxon Group Co., Ltd.’s Capital Management Centre. He handled private placement of newly listed companies, took charge of other capital market financing access, and reviewed and appraised operating investment projects. From August 2006 to May 2010, he served as the Assistant Manager of the Investment Banking Department of KPMG Advisory (China) Limited, where he engaged in several auditing and financial advisory projects, which included public-listed companies and IPO projects.
Note: Net income and revenue are for the fiscal year that ended Oct. 31, 2023. (in U.S. dollars converted from China’s currency)
(Note: Decent Holding Inc. filed its F-1 on Oct. 4, 2024, and disclosed the terms for its IPO: 1.5 million shares at a price range of $4.00 to $4.50 to raise $6.38 million.)
FBS Global Ltd. (New Filing December 2024) FBGL WallachBeth Capital, 2.3M Shares, $4.50-5.00, $10.7 mil, 1/7/2025 Tuesday
(Note: FBS Global Ltd. revived its IPO plans with a new F-1 filing on Dec. 5, 2024. Background: This filing followed the company’s withdrawal of its previous IPO plans in a letter to the SEC dated Nov. 4, 2024, stating that the company did not intend to pursue the IPO. FBS Global’s path to going public began in mid-September 2022 when the Singapore company submitted confidential IPO documents to the SEC.))
(Note on corporate structure: The predecessor of our principal operating company was incorporated on March 9, 1996, in Singapore under the name Finebuild Systems Pte Ltd. Pursuant to a restructuring that took effect on August 2, 2022, FBS Global Limited, an exempted company incorporated in the Cayman Islands, through its wholly owned subsidiary, Success Elite Developments Limited, a company incorporated in BVI, became the ultimate holding company of our current principal operating subsidiary referred to herein as FBS SG. (Incorporated in the Cayman Islands) )
From its beginning as a construction company since 1996, FBS SG has developed into a premier integrated engineering company that provides a full suite of construction and engineering services. These services include the supply of building materials and precast concrete components, recycling of construction and industrial wastes, research, and development, as well as pavement consultancy services.
We are an established interior design and build (also referred to as “fit-out”) specialist in Singapore with a track record of over 20 years in institutional, residential, commercial and industrial building projects. Our scope of services comprises design, supply and installation of ceilings, partitions, timber deck, carpet, lead lining, acoustic wall panel, built-in furnishing, carpentry and mechanical & electrical services of a building. We also undertake main construction and building works projects.
**Note: Net loss and revenue are in U.S. dollars (converted from Singapore’s currency) for the 12 months that ended June 30, 2024.
(Note: FBS Global Ltd. revived its IPO plans with a new F-1 filing dated Dec. 5, 2024, in which it kept the same terms from its original IPO filing: The company plans to offer 2.25 million shares at a price range of $4.50 to $5.00 to raise $10.69 million.)
(Note: FBS Global Ltd. withdrew its IPO filing in a letter to the SEC dated Nov. 4, 2024, stating that the company did not intend to pursue the IPO.)
(Note: FBS Global Ltd. revived its micro-cap IPO and disclosed its revised terms on Aug. 13, 2024, in an F-1/A filing: The company increased the number of shares to 2.25 million – up from 1.88 million shares – and raised the lower end of its price range to $4.50 – up from $4.00 – so the new price range is $4.50 to $5.00 – to raise $10.69 million. The company named WallachBeth Capital as its sole book-runner, replacing Eddid Securities USA.)
(Note: FBS Global Ltd. postponed its IPO in April 2024, when it had been expected to price its micro-cap initial public offering on or around April 13, 202r. Background: FBS Global Ltd. says its assumed IPO price is $4.00 – the low end of its $4.00-to-$5.00 price range – on 1.875 million shares, according to an F-1/A filing dated Feb. 23, 2024. Background: FBS Global Ltd. cut its IPO’s size to 1.875 million shares – down from 2.75 million shares – and set the price range at $4.00 to $5.00 to raise $8.44 million, according to an F-1/A filing dated Dec. 29, 2023. In that Dec. 29, 2023, filing with the SEC, FBS Global Ltd. also disclosed that it has changed its sole book-runner to Eddid Securities USA from Pacific Century Securities.)
(Note: FBS Global Ltd. filed an F-1/A dated July 27, 2023, in which it trimmed the size of its IPO to 2.75 million shares – down from 3.75 million shares – at US$4.00 to raise $11.0 million. The number of shares – 2.75 million – will all be offered by the company – and this is the same as in the previous prospectus (F-1/A) filed on June 26, 2023. The difference: The selling stockholder’s 1.0 million shares are not highlighted in the July 27, 2023, prospectus. However, in the July 27, 2023, filing, there is a note that the selling stockholder still intends to sell up to 1.0 million shares. Background: FBS Global Ltd. filed an F-1/A on June 26, 2023, and updated its financial statements for the year ended Dec. 31, 2022. FBS Global Ltd. filed its F-1 on Jan. 30, 2023, and disclosed terms for its IPO: 3.75 million (3,750,000) shares at US$4.00 to raise $15.0 million. Of the 3.75 million shares in the IPO, the company is offering 2.75 million shares and the selling stockholder is offering 1.0 million shares. FBS Global Ltd. will NOT receive any proceeds from the sale of the selling stockholder’s shares. FBS Global Ltd. filed confidential IPO documents on Sept. 13, 2022.)
Fitness Champs Holdings Ltd. FCHL Bancroft Capital LLC, 2.0M Shares, $4.00-5.00, $9.0 mil, 1/13/2025 Week of
(Incorporated in the Cayman Islands)
We believe we are a leading sports education provider in Singapore based on the following: (i) in 2023, we were the largest service provider of the SwimSafer Program based on the number of assessment bookings, accounting for approximately 30% of market share; and (ii) we are one of the few swim education providers in Singapore that provides both services to students under training programs funded by the Singapore Government and provision of customized private swimming training services.
We offer general swimming lessons to children and adults, with ladies-only swimming lessons available, as well as aquatic sports classes such as water polo, competitive swimming and lifesaving. We believe in imparting the correct swim stroke techniques and skills to all of our students so that they can learn to swim within the shortest time span in a variety of strokes, ranging from freestyle, breaststroke, butterfly, survival backstroke and side kick. We are one of the largest providers of swimming lessons to children enrolled in public schools under the MOE (Ministry of Education) in Singapore through the SwimSafer program. We have been offering private swimming lessons to children, youth and adults under our brand “Fitness Champs” since 2012. We aim to make swimming an enjoyable and affordable sport for children and adults, for water safety and as a way of keeping fit and healthy.
Note: Net income and revenue are for the 12 months that ended June 30, 2024.
(Note: Fitness Champs Holdings Limited filed its F-1 on Sept. 9, 2024, and disclosed the terms for its IPO – 2.0 million shares at a price range of $4.00 to $5.00 to raise $9.0 million.)
🏁 Emerging Market ETF Launches
Climate change and ESG are some recent flavours of the month for most new ETFs. Nevertheless, here are some new frontier and emerging market focused ETFs:
09/20/2024 - FT Vest Emerging Markets Buffer ETF TSEP - Equity
09/11/2024 - Polen Capital Emerging Markets ex-China Growth ETF PCEM - Equity
09/04/2024 - Macquarie Focused Emerging Markets Equity ETF EMEQ - Active, Equity
09/04/2024 - iShares MSCI Emerging Markets Value Factor ETF EVLU - Equity
09/04/2024 - iShares MSCI Emerging Markets Quality Factor ETF EQLT - Active, Equity
09/04/2024 - SPDR S&P Emerging Markets ex-China ETF XCNY - Equity, ex-China
08/13/2024 - Simplify Gamma Emerging Market Bond ETF GAEM - Active, Bond, Latin America
08/13/2024 - Janus Henderson Emerging Markets Debt Hard Currency ETF JEMB - Currency
07/01/2024 - Innovator Emerging Markets 10 Buffer ETF EBUF - Equity
05/16/2024 - JPMorgan Active Developing Markets Equity ETF JADE - Equity
05/09/2024 - WisdomTree India Hedged Equity Fund INDH - Equity, India
03/19/2024 - Avantis Emerging Markets ex-China Equity ETF AVXC - Active, equity, ex-China
03/15/2024 - Polen Capital China Growth ETF PCCE - Active, equity, China
03/04/2024 - Simplify Tara India Opportunities ETF IOPP - Active, equity, India
02/07/2024 - Direxion Daily MSCI Emerging Markets ex China Bull 2X Shares XXCH - Equity, leveraged, China
01/11/2024 - Matthews Emerging Markets Discovery Active ETF MEMS - Active, equity, small caps
01/10/2024 - Matthews China Discovery Active ETF MCHS - Active, equity, small caps
11/07/2023 - Global X MSCI Emerging Markets Covered Call ETF EMCC - Equity, leverage
11/07/2023 - Avantis Emerging Markets Small Cap Equity ETF AVEE - Active, equity, small caps
09/22/2023 - Matthews Asia Dividend Active ETF ADVE - Active, equity, Asia
09/22/2023 - Matthews Pacific Tiger Active ETF ASIA - Active, equity, Asia
09/22/2023 - Matthews Emerging Markets Sustainable Future Active ETF EMSF - Active, equity, ESG
09/22/2023 - Matthews India Active ETF INDE - Active, equity, India
09/22/2023 - Matthews Japan Active ETF JPAN - Active, equity, Japan
09/22/2023 - Matthews Asia Dividend Active ETF ADVE - Active, equity, Asia
08/25/2023 - KraneShares Dynamic Emerging Markets Strategy ETF KEM - Active, equity, emerging markets
08/18/2023 - Global X India Active ETF NDIA - Active, equity, India
08/18/2023 - Global X Brazil Active ETF BRAZ - Active, equity, Brazil
07/17/2023 - Matthews Korea Active ETF MKOR - Active, equity, South Korea
05/18/2023 - Putnam Emerging Markets ex-China ETF PEMX - Active, value, growth stocks
05/11/2023 - JPMorgan BetaBuilders Emerging Markets Equity ETF BBEM - Passive, large + midcap stocks
03/16/2023 - JPMorgan Active China ETF JCHI - Active, equity, China
03/03/2023 - First Trust Bloomberg Emerging Market Democracies ETF EMDM - Principles-based
1/31/2023 - Strive Emerging Markets Ex-China ETF STX - Passive, equity, emerging markets
1/20/2023 - Putnam PanAgora ESG Emerging Markets Equity ETF PPEM - Active, equity, ESG, emerging markets
1/12/2023 - KraneShares China Internet and Covered Call Strategy ETF KLIP - Active, equity, China, options overlay, thematic
1/11/2023 - Matthews Emerging Markets ex China Active ETF MEMX - Active, equity, emerging markets
12/13/2022 - GraniteShares 1.75x Long BABA Daily ETF BABX - Active, equity, leveraged, single stock
12/13/2022 - Virtus Stone Harbor Emerging Markets High Yield Bond ETF VEMY - Active, fixed income, junk bond, emerging markets
9/22/2022 - WisdomTree Emerging Markets ex-China Fund XC - Passive, equity, emerging markets
9/15/2022 - KraneShares S&P Pan Asia Dividend Aristocrats Index ETF KDIV - Passive, equity, Asia, dividend strategy
9/15/2022 - OneAscent Emerging Markets ETF OAEM - Active, Equity, emerging markets, ESG
9/9/2022 - Emerge EMPWR Sustainable Select Growth Equity ETF EMGC - Active, equity, emerging markets
9/9/2022 - Emerge EMPWR Unified Sustainable Equity ETF EMPW - Active, equity, emerging markets
9/8/2022 - Emerge EMPWR Sustainable Emerging Markets Equity ETF EMCH - Active, equity, emerging markets, ESG
7/14/2022 - Matthews China Active ETF MCH - Active, equity, China
7/14/2022 - Matthews Emerging Markets Equity Active ETF MEM - Active, equity, emerging markets
7/14/2022 - Matthews Asia Innovators Active ETF MINV - Active, equity, Asia
6/30/2022 - BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF XEMD - Passive, fixed income, emerging markets
5/2/2022 - AXS Short CSI China Internet ETF SWEB - Active, inverse, thematic
4/27/2022 - Dimensional Emerging Markets High Profitability ETF DEHP - Active, equity, emerging markets
4/27/2022 - Dimensional Emerging Markets Core Equity 2 ETF DFEM - Active, equity, emerging markets
4/27/2022 - Dimensional Emerging Markets Value ETF DFEV - Active, equity, emerging markets
4/27/2022 - iShares Emergent Food and AgTech Multisector ETF IVEG - Passive, equity, thematic [Mostly developed markets]
4/21/2022 - FlexShares ESG & Climate Emerging Markets Core Index Fund FEEM - Passive, equity, ESG
4/6/2022 - India Internet & Ecommerce ETF INQQ - Passive, equity, thematic
2/17/2022 - VanEck Digital India ETF DGIN - Passive, India market, thematic
2/17/2022 - Goldman Sachs Access Emerging Markets USD Bond ETF GEMD - Passive, fixed income, emerging markets
1/27/2022 - iShares MSCI China Multisector Tech ETF TCHI - Passive, China, technology
1/11/2022 - Simplify Emerging Markets PLUS Downside Convexity ETF EMGD - Active, equity, options strategy
1/11/2022 - SPDR Bloomberg SASB Emerging Markets ESG Select ETF REMG - Passive, equity, ESG
🚽 Emerging Market ETF Closures/Liquidations
Frontier and emerging market highlights:
07/27/2024 - iPath GEMS Asia 8 ETN - AYTEF
05/23/2024 - Defiance Israel Fixed Income ETF - CHAI
05/17/2024 - Global X Next Emerging & Frontier ETF - EMFM
03/25/2024 - Global X MSCI Nigeria ETF - NGE
03/21/2024 - VanEck Egypt Index ETF - EGPT
03/14/2024 - KraneShares Bloomberg China Bond Inclusion Index ETF - KBND
03/14/2024 - KraneShares China Innovation ETF - KGRO
03/14/2024 - KraneShares CICC China Consumer Leaders Index ETF - KBUY
03/13/2024 - Xtrackers MSCI All China Equity ETF - CN
03/13/2024 - Xtrackers MSCI China A Inclusion Equity ETF - ASHX
02/16/2024 - Global X MSCI China Real Estate ETF - CHIH
02/16/2024 - Global X MSCI China Biotech Innovation ETF - CHB
02/16/2024 - Global X MSCI China Utilities ETF - CHIU
02/16/2024 - Global X MSCI Pakistan ETF - PAK
02/16/2024 - Global X MSCI China Materials ETF - CHIM
02/16/2024 - Global X MSCI China Health Care ETF - CHIH
02/16/2024 - Global X MSCI China Financials ETF - CHIX
02/16/2024 - Global X MSCI China Information Technology ETF - CHIK
02/16/2024 - Global X MSCI China Consumer Staples ETF - CHIS
02/16/2024 - Global X MSCI China Industrials ETF - CHII
02/16/2024 - Global X MSCI China Energy ETF - CHIE
02/14/2024 - BNY Mellon Sustainable Global Emerging Markets ETF - BKES
01/26/2024 - The WisdomTree Emerging Markets ESG Fund - RESE
11/11/2023 - Global X China Innovation ETF - KEJI
11/11/2023 - Global X Emerging Markets Internet & E-commerce ETF - EWEB
11/09/2023 - Franklin FTSE South Africa ETF - FLZA
10/27/2023 - Simplify Emerging Markets Equity PLUS Downside Convexity - EMGD
10/20/2023 - WisdomTree India ex-State-Owned Enterprises Fund - IXSE
10/20/2023 - WisdomTree Chinese Yuan Strategy Fund - CYB
10/20/2023 - Loncar China BioPharma ETF - CHNA
10/18/2023 - KraneShares Emerging Markets Healthcare Index ETF - KMED
10/18/2023 - KraneShares MSCI China ESG Leaders Index ETF - KSEG
10/18/2023 - KraneShares CICC China Leaders 100 Index ETF - KFYP
10/16/2023 - Strategy Shares Halt Climate Change ETF - NZRO
09/20/2023 - VanEck China Growth Leaders ETF - GLCN
08/28/2023 - Asian Growth Cubs ETF - CUBS
08/01/2023 - VanEck Russia ETF - RSX
07/07/2023 - Emerge EMPWR Sustainable Emerging Markets Equity ETF - EMCH
06/23/2023 - Invesco PureBeta FTSE Emerging Markets ETF - PBEE
06/16/2023 - AXS Short China Internet ETF - SWEB
04/11/2023 - SPDR Bloomberg SASB Emerging Markets ESG Select ETF - REMG
3/30/2023 - Invesco BLDRS Emerging Markets 50 ADR Index Fund - ADRE
3/30/2023 - Invesco BulletShares 2023 USD Emerging Markets Debt ETF - BSCE
3/30/2023 - Invesco BulletShares 2024 USD Emerging Markets Debt ETF - BSDE
3/30/2023 - Invesco RAFI Strategic Emerging Markets ETF - ISEM
2/17/2023 - Direxion Daily CSI 300 China A Share Bear 1X Shares - CHAD
1/13/2023 - First Trust Chindia ETF - FNI
12/28/2022 - Franklin FTSE Russia ETF - FLRU
12/22/2022 - VictoryShares Emerging Market High Div Volatility Wtd ETF CEY
8/22/2022 - iShares MSCI Argentina and Global Exposure ETF AGT
8/22/2022 - iShares MSCI Colombia ETFI COL
6/10/2022 - Infusive Compounding Global Equities ETF JOYY
5/3/2022 - ProShares Short Term USD Emerging Markets Bond ETF EMSH
4/7/2022 - DeltaShares S&P EM 100 & Managed Risk ETF DMRE
3/11/2022 - Direxion Daily Russia Bull 2X Shares RUSL
1/27/2022 - Legg Mason Global Infrastructure ETF INFR
1/14/2022 - Direxion Daily Latin America Bull 2X Shares LBJ
Check out our emerging market ETF lists, ADR lists (updated) and closed-end fund (updated) lists (also see our site map + list update status as most ETF lists are updated).
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Disclaimer. The information and views contained on this website and newsletter is provided for informational purposes only and does not constitute investment advice and/or a recommendation. Your use of any content is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the content. Seek a duly licensed professional for any investment advice. I may have positions in the investments covered. This is not a recommendation to buy or sell any investment mentioned.
Emerging Market Links + The Week Ahead (December 30, 2024) was also published on our website under the Newsletter category.