Ann: Market Release - Admission, page-2

Great to see some real good, old-fashioned trade craft here.

WMC listed rather quietly yesterday and had the stags stacking the offer. Come in Day 2, clean 'em out ...and suddenly, it looks like only blue sky above.


Key features of Wonhe, (evidently so easily forgotten by the stags):

1. As at 30 June the profit for the first 6 months has risen to A$6.3m; were one to annualise this 6 month result the NPAT of A$12.6m would represent a current year P/E of 2.4 times against the Cap on Listing of A$30m;

2. Cash held by the Chinese operating company is now approximately A$53m at 30 June; this means that the cash backing based on this June cash figure is now approximately 35 cents per share; another way of looking at the cash is that Wonhe should have sufficient cash to have manufactured approximately 400,000 new Commercial routers which sell at a price at a significant margin to cost, so the future for potential profits is very strong.

3. The Company has stated in its Prospectus that it intends to pay dividends to shareholders of between 10% and 20% of future NPAT commencing in approximately one year in September 2016.

4. Australian listing will of itself enable bigger contracts with SOE’s - Strong future growth, profits. SOE’s and Government in China will only deal with entities listed on a reputable Exchange. Shanghai is closed, Hong Kong and Singapore are too slow and too expensive and both require a greater sell down than the ASX;

5. Huge Market – China is the fastest Growth and Largest (IT/WIFI/Online) Market in the world
- Size and Growth of Smart Phone / mobile data use in China is huge
- China 1.3B v Australia 24M!! China market is much larger than that of Australia

6. Leading edge producer of IT products
- The Wonhe Commercial Router is becoming a leading edge product in China
Why? - Limitation of 3G/4G Network