Daigou all using Wiseway. High growth business in low valuation, page-23

So I did a bit of work with WWG prior to IPO.

The main premise of the business seems sound to leverage profit off growing trade between Australia and China
Their operating margin was estimated to be circa 10% for their air freight division and they only incur the costs if they are earning revenue so their biggest fixed costs would be rent.

I am keen to see the result of the trading halt however I have 2 concerns around this business:

1. The reason for the IPO was more for the founders to cash out rather than expand the business, they were already established with their ware housing operations in each state and held minimal interest bearing liabilities, based on the IPO the business was going to be generating free cash flows in excess of capital costs and so there was no need (in the theoretical forecast) to need extra funding.

So the reason for the IPO is one question that is unanswered

2. As mentioned by a previous poster, they dont have any physical tangible assets backing their business. The biggest asset to the business is the director's address book and network in China to generate business leads. However they have effectively kept all assets and in a sense all liabilities off balance sheet through the leasing of basically related party warehousing facilities (this is just info that I surmise from the financial statements).
So again while not wrong it doesnt seem to be the type of action to take shareholder's interests at heart.

DYOR