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Hotcopper stopped me posting the article...

Wonhe Multimedia Commerce is a profitable, rapidly growing, Chinese technology company that will list on the ASX in the coming weeks.
The company is leveraged to the rapidly growing use of broadband, and positioned to take advantage of China’s burgeoning middle class and growing mobile internet participation.
The company’s flagship product is a high tech commercial router, sold to shopping malls and other public places, providing on-demand free Wi-Fi connectivity.
Users can use the Wi-Fi service to access real time product availability and special discounts from retailers in the area. At the same time, Wonhe’s router captures consumer data which can be commercialised.
Even with net assets of $42M, including $50M in cash (as of 31^st March 2015), and existing annual profits of $2M to $3M, Wonhe will list with a market cap of just $30M to $31M.  
Wonhe is seeking a main board listing to pursue growth, and is looking to raise $3M to $4M to list on the ASX under ticker code ASX:WMC – a small raising in comparison to its size.
WMC also intends to pay a dividend next year.
Wonhe will issue between 15 and 20 million shares priced at $0.20c each. Investors are welcome to participate in Wonhe’s IPO before the Closing Date of September 15th 2015.
This is a highly speculative investment, and there is a chance you may lose all of your investment. It is highly recommended that investors seek professional advice before investing.
An Ocean of Liquidity on China’s Doorstep

With its domestic stock market in the headlines for the wrong reasons, several Chinese companies have looked overseas to consolidate and grow their operations.
Australia’s landmark Free Trade Agreement, signed with China last year, has opened a portal of opportunity by allowing more Chinese firms list on the ASX while adding greater transparency for Australian investors looking for good investment opportunities in the one of the fastest growing economies in the world.
Wonhe’s holding company is already listed on the NASDAQ exchange in the US so an Australian listing for a $3M capital raise – the minimum allowed – is likely to go through unhindered.
At the same time, this company does have political, economic and sovereign risks associated with it, including foreign investment risk. The Chinese legal environment can throw up uncertainties for companies like Wonhe, and investors should proceed with caution.  
Once Upon a Time in China

Rapid adoption of internet-based technologies has fueled a strong growth in internet use in China.
Over 600 million internet users and an annual e-commerce revenue growth rate of 120%, makes China the fastest growing and on-track to be the largest e-commerce market in the world.
According to the Alibaba Group Research Center, China’s e-commerce market is expected to exceed the combined markets of the US, Germany, France and Great Britain by 2020.
It seems everything China does will exceed what everyone else is doing combined over the next decade.
And that’s in no small part down to China’s immense rate of economic growth, a growing population and a broadly richer populace as a whole.
China’s rapid ascent to the pinnacle of global economics is what WMC wants to tap into….
Wonhe Snapshot

WMC is an award-winning company based in the heart of China’s Silicon Valley: Shenzhen.
Its flagship product is the YLT300-S Router launched earlier this year which is seeing strong demand amongst commercial customers such as Shopping Centres, Business Parks and other large public arenas providing on-demand free Wi-Fi connectivity.
WMC has leveraged itself to the continued expansion in internet proliferation in China. According to CNNIC, China already has 632 million active internet users, more than any other country. Possibly even more important, is that mobile phone utilisation has overtaken traditional PC’s for the first time.
The following graph demonstrates the growth and penetration of mobile internet users in China:

Companies able to take advantage of the changing internet landscape in China are best suited to reap the commercial benefits, and WMC is well positioned. At the same time, emerging technology companies like WMC are speculative investments, and caution should be applied before deciding to invest.
Currently, WMC sells its products only in Guangdong Province but has plans to expand

WMC plans to expand its footprint in China by expanding into new regions and widening its own scope to sign more lucrative contracts with State Owned Enterprises (SOE’s)…
Becoming a public company listed in Australia will empower WMC to rapidly expand its operations and meet its ambitious growth targets which see Wonhe entering 13 new regions by the end of 2018, rising to 22 by the end of 2022 and reaching 27 by 2025.
An ASX listing will enable WMC to strike larger contracts within China, especially with state-owned partners that require entities to be listed prior to agreeing commercial terms.
A key part of WMC’s success is collating accurate profiles of people using its hardware at public Wi-Fi hotspots across China. Courtesy of its own proprietary software and hardware, WMC’s technology generates in-depth profiles that can be commercialised immediately.
WMC is plotting a careful path within a broader battleground between the Chinese government, corporates and individuals with respect to data security and user privacy.
Intellectual Property rights has been a major issue for both Chinese and foreign investors…

A crucial aspect of WMC’s strategy has been securing product design patents for all its proprietary hardware and software designs. Patent protection is an important hurdle which WMC has cleared therefore mitigating the risk of its technology being copied.
Most recently, WMC has launched two new hardware products aimed at increasing its footprint amongst its Chinese customer base.
The YLT100-S Router is an affordable entry-level router aimed at retail customers while its higher-calibre commercial variant, the YLT300-S, has experienced demand after going on sale earlier this year.
WMC’s IPO opens doors and funds R&D

Of the $3-4 million raised in the IPO WMC will use approximately 15% to fund product development and testing, ~40% on development of new hardware products and ~15% on software development.
The ASX is synonymous with technology listings that have strong growth potential…
And WMC is a solid candidate, which could see its business bloom into a major technology powerhouse in China over the coming years. At the same time, WMC’s success is no guarantee, and participating in this IPO is a highly speculative investment – there is a chance you could lose all your money here.
However good performance to date, a strong balance sheet, likely dividends and cash in the bank makes WMC a compelling opportunity within one of the biggest market growth stories around.
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