INITIAL PRICE OFFER IPO : A FINANCIAL GUIDE FOR INVESTORS IN ART

EBITDA PE AND ROI RATIOS

Wang Ximeng (Chinese: 王希孟; : Wáng Xīmèng; Wade–Giles: Wang Hsi-meng) (1096–1119) was a Chinese painter during the . A prodigy, Wang was one of the most renowned court painters of the Northern Song period, and was taught personally by Emperor Huizong of Song himself. He died at the age of 23. Wang's only surviving work is an 11.9 meter (39 ft) long scroll titled A Thousand Li of Rivers and Mountains (千里 江山). The painting, finished by Wang when he was only 18 in 1113, was one of the largest in Chinese history, and has been described as one of the greatest works of . The painting is in the permanent collection of the in .

Great Criticism Series - Pepsi 1500x1190 US$449012 2005 Wang Guangyi

When the Moon is Orbed 2060x1400 US$3m 2012 Tan Swie Hian Singapore

Execution US$5.99m 2007 Yue Minjun China

The Last Supper 4x2.2m 2001 US$23m 2013 Zeng Fanshi China

Battlefield Realism : The Eighteen Arhats 2004 US$7.95m 2008 Liu Xiaodong China

Chapter of a New Century - Birth of the People’s Republic of China II 1992 US$6.7m 2010 Zhang Xiaogang China

EST 1960x1500 2012 Asking US$6.7m 2013 Soh Eng Sim Singapore Interested Art Representatives will make an industry - wide standard commission and fee of 30% payable on the full successful completion of the sale of each art painting. Commission is expected to be highly remunerative and accounts for 30% of the final negotiated price.

EST Group Singapore 118 Tampines Road Unit 0209 Singapore 535193 Skype : redbear1570 Telephone : 65-64876750 Email : [email protected] Website : http://www.est-intelligence.com

BUSINESS DIVISIONS FOR SALE

EST PAINTINGS a fully owned subsidiary of EST Group comprises 2 divisions. Division 1 markets and sells 9 works of art painted during the discovery of Extra Sensory Intelligence ESI era from 1987-2013. The 9 paintings include " EST " 1960x1500 and 8 original symmetrical calligraphy 790x545.

Division 2 markets and sells " Rabbit in the Forest " 1960x1500, " Retirement EST " 1960x1500 and " Once Shaolin Si " 1960x1500.

COMPARATIVE MARKET PRICING METHOD

Opportunity cost is the next best purchase that provides the same economic utility to an art investor. In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources. Assuming the best choice is made, it is the " cost " incurred by enjoying the benefit that would be had by taking the second best choice available. Comparable Paintings Sold Between 2007-2013 By World Auction Houses 1 " Execution " Sold US$5.99m 2007 Sotheby’s London 2 " Battlefield Realism : The Eighteen Arhats 04 " Sold US$7.95m 2008 Sotheby’s Hong Kong 3 " Great Criticism Series – Pepsi " 1500x1190 Sold US$449012 2009 Sotheby’s New York 4 " Chapter of a New Century-Birth of the People’s Republic of China II 92 " Sold US$6.7m 2010 Sotheby’s Hong Kong 5 " When the Moon is Orbed " 2060x1400 Sold US$3m 2012 Poly Auction Beijing 6 " The Last Supper 01 " Sold US$23m 2013 Sotheby’s Hong Kong

VALUATION AND ASSESSMENT

The value of gold has been deduced from its metal quality, density, malleability and ductility and also how it contributes to the world economy as a standard in relation to monetary policies, as a key stabilizing and hedging force during years of poor economic performance and as well as many widespread monetary and symbolic functions of the modern economic and financial infrastructure. THREE key criteria stand out for any art investment strategy and they are namely (A) Acceptance (B) Artist (C) Creations.

" Human creativity is the pursuit of a vision in a way an individual evolves original creations frequently that are truly acceptable to all. "

(A) Key ACCEPTANCE by all is verified by TWO " As " I ACCEPTANCE by all is when it is truly and fully acceptable within a group, community, society or across all societies II AUTHENTICITY refers to the origin, historical relevance which are in significant agreement within a community and beyond

(B) Recognition of the ARTIST is governed by FIVE " As " I ADAPTABILITY possession of a strong persona, agility and purposeful pursuit of a vision II ATTITUDE evolution of life outlook, positive orientation, ideas and work details without giving way to life failures III ABILITY demonstration of ability and technical competence consistently IV ARTISTIC together with significant political, social, economic and technological contributions across societies V ACUMEN showing of entrepreneurship, integrity, prudence, drive and spirit in fostering suitable market responses

(C) Quality of the CREATIONS is determined by FIVE " Cs " I CONTEMPORARY evolution of original, novel and bold expression, communication of new perception, ideas and emotions II CREATIONS depth of creations and symbolism, composition and overall look, beauty and aesthetics III COMPUTERIZED methods and techniques influencing the supply of creations in huge abundance and frequently IV COSTS capital outlays and cost savings arising from preservation, replacement, maintenance and storage of creations over time V CONDITIONS dedication to large sized works, colors, defects, tears, scratches, spots, molds and props that affect the value of the creations

" The poet and artist Soh ES was the man at the epicentre of the phenomenal storm some 25 years through his sudden discovery of Man's Extra Sensory Intelligence ESI in Singapore and Batam, Indonesia from 1989 to 1991. In the years following he pursues the discovery of Extra Sensory Intelligence and publicizes it through his arts. Sohist EST Singapore is marketing and selling all works of art because they are pivotal to the explanation of discovery of man’s Extra Sensory Intelligence ESI since 1987. EST 1960x1500 is a work that details and promotes the truth about Extra Sensory Intelligence ESI and shares with the world about a post discovery era and its significance to a completely transformed world. "

The distinctive quality of " EST " 1960x1500 and the similar works of art arise from :

(A) ACCEPTANCE

I ACCEPTANCE BY ALL The earliest documented members of the genus Homo are Homo Habilis which evolved around 2.3 million years ago; the earliest species for which there is positive evidence of use of stone tools. 2 million years of human thinking have changed with the discovery of Extra Sensory Intelligence some 25 years ago. Through these understanding and perception, the governments and authorities worldwide decided from the beginning and for good reasons, to keep the open discussion about Extra Sensory Intelligence ESI away from the public and from the media limelight for as long as possible. Nothing was quite spoken or allowed to be spoken for many years and the world somehow adapted to it. Soh Eng Sim believes that once the human mind adapts to the great transformation, people should be allowed to understand what happened and why it actually happened and accept and embrace the new world and move bravely forward as Extra Sensory Intelligence ESI is a new form of human and social intelligence. It has been made known and is brought across the entire world openly and safely through the approval and collaboration with the authorities in Singapore.

The National Arts Council of Singapore and the Singapore Government understood and endorsed the discovery of Extra Sensory Intelligence ESI and its art in late 2010 and early 2011 despite the early open public launching of Extra Sensory Arts exhibitions since 1996 and the attendant painstaking and to many at the time " unconventional and unorthodox efforts ". The elaboration and acceptance by all follow the approval by these two authorities.

II AUTHENTICATION BY INTERNATIONAL COMMUNITY Soh Eng Sim is the Founder and Owner of EST Group of Businesses and it has a strong art business track record; the ESI Museum Singapore houses some 600 contemporary works of art, 800 Chinese poems and 1600 calligraphy; 4 solo exhibitions on Extra Sensory Intelligence ESI and arts were held from 1996; many works of art were sold to private collectors in Australia, Malaysia and Singapore in 2011 and EST Group was first established in 1991 and has more than 25 productive years in the art industry. Today the EST Group Singapore owns 4 subsidiaries namely Sohist EST, EST Paintings, EST Land and EST Timepieces and Jewellery. With this backdrop, it fosters a great deal of confidence in the acceptance of Extra Sensory Intelligence ESI and its arts amongst members of the public in Singapore, people of the world and beyond and the relevant authorities because they understand the importance, significance and relevance of Extra Sensory Intelligence ESI to societies across the globe. The EST website is supported everywhere.

(B) ARTIST

III GOVERNMENT POLICY AND SUPPORT The Singapore Government’s stand on the discovery of Extra Sensory Intelligence ESI and its arts had been verified and confirmed by Soh Eng Sim in late 2010. With this, he moves swiftly forward and embraces ESI fully, publicizes and exhibits his arts, values and markets them internationally a quarter of a century after the great discovery.

IV TRANSFORMATION OF HUMAN MIND IN HISTORY OF MANKIND Many years had passed since Extra Sensory Intelligence ESI was discovered in Singapore and Batam between 1987 to 1991. The world has been totally transformed since, so is the human mind. The younger generation of people has been born with and taken to ESI. The older generation somehow loses the keen memory of what it was before since the very beginning of time. The earliest documented members of the genus Homo are homo habilis which evolved around 2.3 millions years ago; the earliest species for which there is positive evidence of use of stone tools. Million years of human thinking had changed with the discovery of Extra Sensory Intelligence 25 years ago. The transformation of the human mind is a possible and likely sequence of consecutive world wars and could also be seen as natural evolution and strife of humanity. ESI arts says the truth and sees it beneficial and timely to accept openly the totally new form of human intelligence.

V DISCOVERY OF EXTRA SENSORY INTELLIGENCE ESI The poet and artist Soh ES was the man at the epicenter of the phenomenal storm some 25 years through his sudden discovery of Man's Extra Sensory Intelligence ESI in Singapore and Batam, Indonesia from 1989 to 1991. The years following his yearn to tell the world about the transforming discovery moved him through his art and poetry. The poet and artist Soh Eng Sim was not only at the epicenter when the discovery did not just happened by itself but through and with him. As ESI is transforming the world rapidly over the years, many geo-political, political and social-economic issues arise from across the entire planet, societies and his own country. Knowing that this is part of change, the poet responds through his thinking, writing, painting, meeting with people from each walk of life. The world community is now awakened through Soh Eng Sim's thinking, writing, painting and meeting. He feels that the world is poised for phenomenal growth arising from the discovery and should speak openly and freely about the discovery of Extra Sensory Intelligence ESI and not to be put or held back by its sudden intrusion and transformation for decades. No doubt many complex problems worldwide would remain. But through his belief and perseverance in pursuing an early global announcement of Extra Sensory Intelligence ESI, the international community has today wakened to a new era and a new dawn of peace and growth. Since late 1998 his own thinking like others has permeated societies across and moving them slowly to acceptance of ESI as a way of life and world peace. In Singapore with the new form of shared intelligence, there is more hope, greater awareness and meaningful dialogue for more rights, greater freedom and responsibility in a fully democratic society. Today he paces the winds of change and fosters the explanation, elaboration, acceptance and growth and development of ESI worldwide. The whole world pivots on arts for an explanation, more elaboration and full acceptance. Poet and artist Soh Eng Sim believes in bringing Extra Sensory Intelligence ESI safely to the planet through his arts and propelling ESI productivity and global businesses further in the years ahead.

VI LIFE WORK AS A POET AND ARTIST Soh Eng Sim artist, poet, calligrapher and owner - entrepreneur, holds post graduate degrees in Education with concentration in Planning, Administration and Social Policy from the University of Harvard, USA in 1987 and Master of Science with Distinction from Liverpool John Moores University, England in 1979. He was Director, School of Business at the Singapore Polytechnic from 1985 -1990. As an artist and a poet, he pioneered the Extra Sensory Intelligence ESI arts from the very beginning in the late 80s, covering detailed portraits never done before in art history using added intelligence. A novel and new symmetrical calligraphy away from traditional calligraphy was developed by him in 1997. From 1998, he started to write Chinese poetry about Singapore and extra intelligence. Of late he has developed super wide format or grand format inkjet art printing using the latest technology to improve his creative art production and artistic methods to better compete in the world art markets. As an artist, he had worked in several countries including Malaysia, Hong Kong (China), Australia and Singapore over the last twenty odd years. He was the first artist worldwide to curate and hold a great number of solo exhibitions on Extra Sensory Intelligence ESI and its arts. He had launched these solo exhibitions in 1996, 2006, 2008 and 2013. Two of which were for charity. The latest was held at the Artium at the Old Hill Street Police Station Building. The response was good. Meanwhile as Founder and Chairman of SOHIST EST, a thriving business working closely with other galleries, representatives and dealership in art, he devotes all his energy in marketing, valuation and sales. Lately, he spends most of his time publicizing, marketing and selling his works across all continents such as Asia, America, Europe and South East Asia and is also thinking about expanding his businesses into other fields. The rest of the time, he continues to write poetry and create works of art from his art studio when he is inspired. His poetry suwen 蘇⽂ has 4 volumes namely literature wenshi ⽂诗, reasoning lishi 理诗, reminiscence jishi 记诗 and Chinese English translation yishi 译诗.

(C) CREATIONS

VII RARE SOHIST WORKS OF ART There are always many investment opportunities open to the keen minded investors. Art especially works of art created by renowned and like-minded artists worldwide during a period of great discovery and strife should be highly regarded and are all worthy of investing. These works should not be underestimated or dismissed quickly.

VIII CREATIVITY AND INNOVATION The paintings are the first pieces of works in the world to use symmetrical geometry and figurative symbolism to construct and complete. Never before has this been done in the history of art. The technique is very different, innovative and creative. The overall presentation and details are astonishingly symbolic, figurative, representational, simple and please the eyes. The works are all original and are individually created to the highest artistic and production standards possible.

The last stage of the art production deploys the latest super wide format inkjet technology and techniques, hedging the high costs of preserving and storage of large sized art in the very long run. Using the very best fine art papers, canvases and polyester cloths, original works of art can be produced. The archival period of these fine art materials and ultra violet stable inks used are estimated to stretch over many years.

PRODUCTION

SOHIST EST INKJET PRINTING The method usually involves the creation of an original final piece of inkjet artwork from one or several original artworks that are created in the traditional manner, then using a digitized image to output from a computer to a large format art inkjet printer. Of course, each digitized image is analyzed and modified to create the exact artistic precision that is needed in the final work. The inks are ultra violet stable and offer a lifespan for centuries to come.

SIHL ARCHIVAL PAPERS AND CANVASES Using the very best fine art papers with unique structure, surface texture and warm white tone, original works of art can be produced. The archival periods of the fine art papers used are estimated to stretch over hundreds of years. Artworks may also come to live with texture and depth of very high quality stretched canvases. The inkjet painted canvases are then stretched on mitred and wedged wooden frames of varying dimension stretcher bars. Some printers offer different wraps, for example museum and gallery wraps. Of late, many canvases are mounted on light durable alloy plates such as Dibond and Dilite.

EUROPEAN / CHINESE HIGH QUALITY CLOTH FABRICS Polyester cloth fabrics ( 222g/m2 0.28mm thick 100% polyester ) are the finest synthetic materials available for art. The materials are the modern solution to creating a totally chemically compatible environment. Polyester has an almost flawless surface that is very popular with oil painters looking for a real fine surface. It is not affected by moisture at all and heat or cold causes it to expand and contract less than linen or cotton canvases. These materials are thus fairly rigid with low stretch. Polyester cloth fabrics have been used for backlight images inside museums and exhibitions and they work extremely excellent for art in non backlight applications too. Some suppliers advertise this type of polyester cloth fabrics as " artist heavy ".

WORLD LATEST TECHNOLOGY World most reputable designers and latest inkjet painting technology would be employed to follow through till fruition of each final work of art.

PRESERVATION AND STORAGE Technology as a factor of production has been around for decades. Using convenient software original artworks can be altered, expressed, edited and stored in multiple backup; linking electronic art production to marketing, storage and preservation is something relatively new and novel in Singapore and perhaps the world. SOHIST EST has embarked on a detailed business plan to embrace technology completely and to bring arts to the latest state of technological innovation and excellence, thereby reducing the high costs of preservation, maintenance and storage large sized art in the future. Even reproducing the originals (if damaged) cost relatively less.

INVESTMENT

Investment is putting money into an asset with the expectation of capital return. A financial instrument is a tradable asset of any kind; either cash, evidence of an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument. Cash Reserves / Assets Long term financial instruments 35% Short term financial instruments 5% Subtotal 40%

Options Art 5% Commodities 5% Diamonds and jewelry 5% Equities 10% Foreign exchange 5% Gold and silver 10% Government and corporate bonds 10% Properties 10% Subtotal 60% Total 100%

INITIAL PRICE OFFER IPO OF EST PAINTINGS DIVISION 1

The Initial Price Offer IPO of EST Paintings Division 1 comprising 8 original symmetrical calligraphy 790x545 and the painting " EST " 1960x1500 is US$3000000. Sohist EST Singapore reserves the rights to provide a range of these quality calligraphy for the clients to choose.

PRICE-EARNINGS RATIO

PRICE-EARNINGS RATIO is defined as the market price per share divided by the earnings per share.

Initial Price Offer IPO of " EST " = US$2860000 Initial Price Offer IPO of 8 original calligraphy = US$140000 Initial Price Offer of EST Paintings Division 1 = US$3000000

Asking Price of " EST " = US$6700000 Asking Prices of 8 original calligraphy = US$280000 Asking Price of EST Paintings Division 1 = US$6980000

Assuming 75000 shares are being issued for Divisions 1 of EST Paintings and the private equity investor(s) takes 100% stake.

A) US$40 each share at exit price US$3000000 100% equity amounts 75000 shares at US$40 (US$3000000)

PE Ratio = (6980000/75000) / (3980000/75000) = 1.75

EBITDA RATIO

EBITDA RATIO is defined Revenue less Expenses before interests, taxes, depreciation and amortization. EBITDA Ratio = US$6980000 - US$3000000 = US$3980000

RETURN ON INVESTMENT ROI

Return on Investment ROI = (Gain from investment - Cost of investment)/Cost of investment

ROI = (US$6980000 - US$3000000)/US$3000000 = 133%

INITIAL PRICE OFFER IPO OF EST PAINTINGS DIVISION 2

The Initial Price Offer IPO of EST Paintings Division 2 comprising " Rabbit in a Forest " 1960x1500, " Retirement EST " 1960x1500 and " Once Shaolin Si " 1960x1500 is expected to be US$9000000.

PRICE-EARNINGS RATIO

PRICE-EARNINGS RATIO is defined as the market price per share divided by the earnings per share.

Initial Price Offer of EST Paintings Division 2 = US$9000000 Asking Price of Division 2 = US$6700000x3 Asking Price of EST Paintings Division 2 = US$20100000

Assuming 225000 shares are issued for Division 2 of EST Paintings and the private equity investor(s) takes 100% stake at :

A) US$40 each share at exit price US$9000000 100% equity amounts 225000 shares at US$40 (US$9000000)

PE Ratio = (20100000/225000) / (11100000/225000) = 1.81

EBITDA RATIO

EBITDA RATIO is defined Revenue less Expenses before interests, taxes, depreciation and amortization.

EBITDA Ratio = US$201000000 - US$9000000 = US$11100000

RETURN ON INVESTMENT ROI

Return on Investment ROI = (Gain from investment - Cost of investment)/Cost of investment

ROI = (US$20100000 - US$9000000)/US$9000000 = 123% FINANCIAL SUMMARY

The purpose of investment is to earn income arising from capital appreciation, dividends and accrued interests. Investment in art business or art itself provides opportunities to gain from appreciation of the piece of art work based on an acceptable rate of return. EST Paintings Division 1 Asking Price US$6980000 Internal Valuation US$4m (minimum) Initial Price Offer IPO US$3000000 EBITDA US$3980000 Profit-Earnings PE Ratio 1.75 Return On Investment 133% ROI EST Paintings Division 2 Asking Price US$20100000 Initial Price Offer IPO US$9000000 Profit-Earnings PE Ratio 1.81 EBITDA US$11100000 Return On Investment 123% ROI

How 1960x1500

Retirement EST 1960x1500

Once Shaolin Si 1960x1500

The Evolution 4600x2300

Unspoken 4000x2000

Rebuilding Dream 4000x2000

The Species 4000x2000

The Man 4000x2000

The Old Master 4000x2000