CEO Talk Series - Summary
Good morning to everyone joining from the States, and good afternoon and evening to the rest of you.
This is the first time we’re hosting this event, and I hope it will effectively communicate what our companies are doing and our direction in terms of business growth.
Since this is our first time conducting it via Zoom, we’ve limited the number of attendees to ensure the best possible experience for everyone.
We’ll keep the session to 30 minutes, so let’s get started!
I’d like to introduce the management team of ICNM / Eastwin8.
Here’s a bit about me. I have over 30 years of experience in IT. Since January this year, I’ve been the Chairman and CEO of ICNM and I’m also a director at Viagoo group of companies.
Mr. Li Lan Wei, another director at ICNM, is the CEO of Kuora. He previously served as the COO and Director of CREG, listed on Nasdaq. Li is a brilliant executive with many innovative ideas. During a recent conversation in his Xian office, I was deeply impressed by his vision. He envisioned incorporating AI into the Kuora platform as early as 2019, two years after Kuora’s inception. Over the past four years, his team has collected data to build a unique language model, making Kuora’s platform one of the largest industrial-trained LLMs.
Next, we have David, a key advisor to ICNM with over 30 years of experience in professional accounting. He served as the CFO of CREG. Together with Mr. Li, they helped uplist the company from OTCMarkets around 10 years ago, achieving a share price of over 150 USD post-IPO.
Mr. CN Tan is a long-time friend and mentor. A veteran in Singapore’s IT industry, he has also been involved in food distribution and was a committee member for Singapore Standards in cold chain management.
Our management team boasts extensive experience in technology, product development, marketing, and corporate finance.
To understand why we acquired Kuora, we need to consider two points:
1. Eastwin8 took over ICNM Shell (0.0001) and committed to injecting an operating business into the company. After six months of evaluation, we identified Kuora, a growing startup at the time, as a perfect fit.
2. Kuora, an industrial service platform, aligns well with Eastwin8’s VITE network ecosystem. I’ll elaborate more on this later. The alignment of our business models was a key factor in our acquisition decision. Eastwin8 aims to grow through platform networks using our built or acquired key technologies, making user base expansion easier through acquisitions.
Let’s delve deeper into Kuora’s business model.
So, what is Kuora?
Kuora is an Industrial Service Platform based in XiAn, China, a major tech development and support hub. It leads in equipment manufacturing, agricultural product processing, automobile, and aviation manufacturing, and is well-connected by a high-speed rail network.
The platform boasts over 300,000 users and more than 3,000 specialists. It has 18 registered copyrights and 4 trademarks, indicating a high-growth potential area. Heavy industrial sectors face significant technical issues, and breakdowns can be extremely costly.
Common issues include:
• Frequent technical changes/configurations in processes/equipment, requiring time-consuming troubleshooting.
• Difficulty in obtaining updated technical information.
• High costs of maintaining technical specialists, who may not be fully utilized when idle.
How does the platform work?
For example, if your air conditioner breaks down, you’d likely search for a technician online. However, for heavy industrial equipment like Industrial Cookers, you need specialized engineers available 24/7. Resident engineers may not always be familiar with the equipment, requiring external specialists. Kuora addresses this by allowing engineers to post issues on the platform, which then matches them with experts who can resolve the problems. Transactions are conducted online, with the platform protecting all parties in case of disputes.
• Online: Via WeChat mini program, users can post technical questions or search for answers on the Kuora app. The new AI model enables users to interact with the platform for specific Q&A.
• Offline: For enterprise customers, the system can be deployed on-premise.
Kuora is a fast-growing company, averaging a 25% annual growth rate. From 2022 to 2023, we achieved nearly 100% YoY growth.
What is VITE Platform?
VITE is a digital network platform connecting service partners and customers. For example, palm oil producers in Indonesia might source products and services from China to reduce equipment costs. VITE links the Indonesian palm oil network with the Kuora Industrial Service network, streamlining cross-border trade with our financial partners handling contract-based financing.
VITE focuses on two areas: developing technology to support partner services, with an emphasis on AI and automation, and rolling out new services to enhance operational efficiency.
Merger & Acquisition?
Regarding Mergers & Acquisitions, we’re collaborating with network partners to strengthen our regional business network. This milestone requires careful execution to maximize stakeholder value. The process is slow but progressing well, and we hope to share more in future sessions.
The Kuora acquisition took around six months, and we aim to shorten this timeline for future acquisitions. We are currently assessing the valuation of target companies and engaging stakeholders (founders, shareholders, convertible note holders). Due diligence is essential to ensure accurate records.
IPO Plan?
Our IPO plan has been a focus since Eastwin8 acquired ICNM in June 2022. We need two years of PCAOB audits to qualify. We’ve begun the first audit and will file S1 upon completion. We’re also working with advisers on structuring and will announce developments when ready.
Other questions?
Many questions have been raised about realizing ICNM’s actual value. We’re optimistic about our progress. With sustained revenue and profit growth, M&A activity, and IPO plans, we believe more investors will recognize the company’s true value. Comparisons with some Nasdaq-listed companies indicate our value creation is comparable, if not greater.
Please be patient as we implement our plans to achieve our set goals.
Feel free to visit our site for feedback. While I can’t promise to answer all questions, especially those affecting share prices or timing, I will do my best.
Thank you for your support and faith over the past two years. I appreciate your continued trust in the management team and the company. Thank you for joining this session, and I hope to see you in the next one.
Thank you.