The company, on paper very strong. However I feel it's stronger than and more profitable than Amalisia wants to it appear. My theory is that it's being "milked". Amalisia was happy to fund the 165m RMB for the partial acquisition Ofpay which she later acquired for herself via Grand Ease. Although she was unwilling to fund Wuxian 25m RMB in working capital and instead we had to borrow from the banks at 18% interest. With a family background in banking and having many connections/clients I think she could have done much better. We've also spent nearly AUD $32m on advertising and marketing in 12 months. It’s far too high of a budget allocation. It’s a huge % of our MC. Why it's so high and who’s reaping the rewards I do not know. The fact of the company structure is very one sided in Amalisa's favour makes it unattractive for a cornerstone investor to "get on board", something I think she's not keen on anyhow. Our median commission rate was 1.95% last year but we still pay Handpay 3% on net profit. Monies are being milked out of this company and I think she will eventually buy out the ASX float at a decent discount and relist in China at some point in the future.
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The company, on paper very strong. However I feel it's stronger...
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