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Peak Positioning Technologies Inc. (CSE: PKK), a Canadian IT portfolio management company recently had its China-based subsidiary, Asia Synergy Technologies, reach C$50M revenue milestone after less than four months of operations. NAI sat down with Peak Positioning President, CEO and Director, Johnson Joseph, to get a brief introduction and the opportunities from Peak Positioning.
Q: Can you give an introduction on Peak Positioning Technologies and explain what an IT portfolio management company is?
A: For a number of years, Canadian investors have watched some tech sectors in China grow at an impressive rate, wishing they could somehow participate in and benefit from that growth. What Peak Positioning Technologies is, is a Canadian public vehicle in which Canadian investors can invest to take advantage of the exceptional opportunities in China’s Fintech, e-commerce and cloud-computing sectors. We do that through the outsourcing of the development of products and solutions, and/or the acquisition of commercial rights to products and solutions that have high growth, profit and revenue generating potential. We then license these assets to our operating subsidiaries in China who commercialize the products and solutions, often in partnership with well-established local Chinese businesses. Our shareholders then benefit from the revenues and profits generated by our subsidiaries in various forms. Shareholder benefits can come in the form of royalties paid by the subsidiaries to Peak, which we may then distribute to our shareholders as dividends. And benefits can also obviously come through the appreciation of our stock price.
Q: You have a strategic partnership with a Shanghai based conglomerate, Zhonghai Wanyue Group Enterprises; can you briefly talk about the partnership and how it advances Peak Positioning’s business in China.
A: I believe that one of the most important keys for a foreign company to succeed in China is to find a long established local partner that understands the space and how business is generally done in China. Our partnership with the Zhonghai Wanyue Group allows us to check that box and then some. Zhonghai Wanyue is a financial services firm that has been providing services to the Chinese commodities and materials trading industry for a number of years. In fact, our Gold River materials trading and financial services platform, operated by our Chinese subsidiary, was really their idea. All financing requests received on Gold River are referred to Zhonghai Wanyue, which processes and funds the requests, and pays a referral fee to our subsidiary. Because Zhonghai Wanyue has been in the financing business for a number of years, our subsidiary has a large pool of clients who were already Zhonghai Wanyue clients to work with.
Q: How is Peak Positioning different from other Fintech companies? Are there any competitors in this specific field? If there are, what are the advantages Peak Positioning has over its peers?
A: I think the best way to answer this question would be to point out that Peak is not a Fintech company, which is one of our biggest advantages. What we do is we look for problems or opportunities in certain fields that could be resolved with Fintech solutions. We then try to find the right solutions to take advantage of the opportunities. So far, we’ve identified two such opportunities, one for which we had a solution developed and another for which we’re working on a licensing agreement to have the rights to the solution to take advantage of the opportunity.
Q: How do you evaluate your company at this stage now? How will you unlock value?
A: Most CEOs believe their companies are always undervalued. I’m not sure I’m one of them, at least, not right this moment. I’m a strong believer that a company’s fair value should be a reflection of its fundamentals and growth potential. Right now, our most recently published financial statements don’t necessarily show a company with strong fundamentals, although our fundamentals have improved considerably over the past few quarters. I also don’t believe the market completely understands our revenue model and we haven’t yet really proven our growth and profitability potential, so I don’t think I would classify the company as undervalued right now. However, if we deliver on our objectives for the next few months and the company’s value remains relatively close to what it is today, then I’ll definitely consider the company to be grossly undervalued. But I believe by then, the opportunity will be quite evident to the market, which should reflect the true and fair value of the company.
Q: What investment opportunities does Peak Positioning have for investors looking to get involved in the Fintech space?
A: The Fintech world is made up of several segments. You have payment and transaction processing solution providers, big data and financial research solution providers, credit and financing solution providers, personal finance solution providers, banking infrastructure solution providers and a number of others, all operating in Fintech. Each of these segments offers different kinds of opportunities. The interesting thing about making an investment in Peak is that because we’re a portfolio management company always looking for opportunities, as opposed to a solution provider, an investor that invests in Peak would potentially have access to opportunities in various Fintech segments just by making a single investment.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. is an IT portfolio management company whose mission is to assemble, finance and manage a portfolio of high-growth-potential companies and assets in some of the fastest growing tech sectors in China, including Fintech, e-commerce and cloud-computing. Peak provides its shareholders with exceptional growth potential by giving them access to the fastest growing sectors of the world’s fastest growing economy.
For more information: http://www.peakpositioning.com
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Peak Positioning Technologies Inc.
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Disclaimer: NAI is being compensated for this article. Materials contained in this article is for information purposes only and is not intended to constitute an offering of securities in any jurisdiction. Nothing on this article should be construed as an offer, solicitation or recommendation to buy or sell products or securities.