March 2021 Overview CSE: PKK Disclaimer OTCQX: PKKFF
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CSE: PKK | OTCQX: PKKFF March 2021 Overview CSE: PKK Disclaimer OTCQX: PKKFF FORWARD-LOOKING STATEMENTS Apart from historical data, this document may contain The Corporation is in no way obliged nor does it intend to information and statements concerning the future results update or revise these prospective statements on the basis of Peak Fintech Group (the “Corporation”, the “Peak Group” of new information, future events, etc. or “Peak”) which should be considered as prospective and forward-looking. These statements, when utilized, reflect the current vision of the Corporation concerning future events; they are based on information currently available to the Corporation and on assumptions which are considered reasonable. These prospective statements are subject to risks, uncertainties and other factors likely to influence the results, performance and achievements of the Corporation such that they could differ substantially from the results, performance and achievements prospective statements of this nature might imply. All $ values expressed in this presentation are in Canadian dollars 2 CSE: PKK The Problem OTCQX: PKKFF ? ▪ Over 100M small businesses in China have a hard time getting access to credit ▪ Blindly knocking on bank doors often leads to rejection and frustration 3 CSE: PKK The Lending Hub Ecosystem Solution OTCQX: PKKFF ▪ Access to all data on small business that would be Banks required by any lender to qualify the business for credit ▪ Accounting software ▪ Bank statements ▪ Government ▪ Other ▪ Specific lending criteria for each member lending institution ▪ Sales ▪ Cash conversion cycle ▪ Interest coverage ratio' ▪ ...any other criteria ▪ Bring together and match small businesses and lending ▪ institutions based on AI, analytics and lending criteria ▪ Free to join Hub and only pay per transaction 4 CSE: PKK The Lending Hub Ecosystem Solution OTCQX: PKKFF SME Value Proposition ▪ Free to sign up ▪ No shopping around, we bring lenders to you ▪ Significantly increase chances of getting funded ▪ Pre-qualify for credit to be accessed any time ▪ Several options from variety of lenders Bank and Lending Institution Value Proposition ▪ No need to search, we bring ideal clients to you ▪ Instantly qualify clients based on specific lending criteria ▪ Minimize lending risk ▪ Save time and money ▪ Grow loan portfolio Loan Brokers Value Proposition ▪ Minimize wasted leads ▪ Spend less time gathering data and building files ▪ Increase commissions 5 CSE: PKK 2018: Proof of Concept OTCQX: PKKFF ▪ Lending platform launched in Wuxi ▪ Over 2,500 transactions ▪ Less than 2% loan defaults ▪ $1.6M in revenue $1.6M 2018 Revenue 6 CSE: PKK 2019: Established Service Demand OTCQX: PKKFF ▪ Buy-in from banks and local lending institutions $11.7M ▪ Expansion to cities of Jiangyin and Xi’An (in 3 cities by end of 2019) ▪ Strong service demand ▪ $11.7M in revenue 2019 Revenue 7 CSE: PKK 2020: Growth and Service Expansion OTCQX: PKKFF ▪ Acquisition of Jinxiaoer loan brokerage $40.0M platform ▪ Over 40K loan sales reps ▪ 2,700 loan brokerage companies ▪ 31 cities across China Forecasted 2020 Revenue 8 CSE: PKK 2020: Growth and Service Expansion OTCQX: PKKFF ▪ China UnionPay subsidiary, Rongbang ▪ Integration of Jinxiaoer, a loan Technology Ltd. (“Rongbang”), a brokerage company, to Lending Hub payment processing company. (April 2020). ▪ Processes payments, settles transactions and transfers funds between lending institutions, banks and the businesses that are part of the Lending Hub st Peak adds digital ▪ 1 distributor: Beijing Dianjing ecosystem. currency and Company Ltd., a consumer electronic payment electronics product distributor. features to both Gold River & ▪ Launched the program with its ▪ Gruppo Coin (“Coin”), Italy’s largest Cubeler Hub +60,000 online retail clients. department store chain, empowers platforms. social media influencers to sell their ▪ Exclusive distribution rights to products. ~200,000 Petro-China convenience ▪ Influencers are using popular social stores and also online retail media platforms. giant JD.com. ▪ The Hub provides short-term loans to Coin’s social-media-influencers. ▪ 2nd distributor: Beijing Jingying Corporate Management Ltd. brings Peak’s Cubeler Lending Hub financing solution to BJM and its +250,000 retail clients. 9 CSE: PKK 2021: Growth and Service Expansion OTCQX: PKKFF ▪ 3rd distributor: Xiamen Guangzhui ▪ Peak signs up with Qiyuesuo, Ltd., a beverage distributor that China’s leading digital document owns distribution rights to several signing service provider, that will popular beverages in China. allow members of its Lending ▪ Exclusive rights for Red Bull energy Hub ecosystem to digitally sign drinks at PetroChina convenience legally binding agreements with PKK acquires banking AI stores in Guizhou province. one another. software company Zhongke Software Intelligence Ltd. (“Zhongke”). Zhongke ▪ The launch of a new Cubeler ▪ Strategic partnership agreement with develops analytics and AI Lending Hub financing program ShopEx, who provides a complete software used by banks for JD.com product suppliers that suite of solutions and related services and financial institutions. will allow them to receive cash to help entrepreneurs & retailers easily advances on product orders they create, manage and market stores on get from JD. China’s top e-commerce marketplaces like (to name a few): 1. TAOBAO: https://www.taobao.com 2. TMALL: https://www.tmall.com 3. JD.COM: https://www.jd.com 4. PINGDUODUO: http://yangkeduo.com 5. TIK TOK: https://www.douyin.com 10 CSE: PKK Growth and Expansion Beyond 2020 OTCQX: PKKFF ▪ City-wide Financial Centres powered by ▪ Lending Hub ▪ Replicate Jiangyin model to other cities ▪ Industry-specific solutions ▪ Replicate supply-chain model to industries such as trucking and vehicle dealerships ▪ E-Commerce portals ▪ Expanding ecosystem to online merchants in partnership with China’s largest e-commerce portals ▪ Other markets ▪ Possible service expansion beyond China 11 CSE: PKK Stock Information OTCQX: PKKFF Capitalization Table ▪ Peer companies in Fintech space trading at Shares outstanding: 124.9 M 10 to 15 times revenue ▪ Listed in Canada on Canadian Securities Exchange Warrants ($0.25 - $1.00): 22.5 M under ticker Listed in US on OTCQX Market“PKK” ▪ Listed in US on OTCQX under ticker “PKKFF” Options: 8.7 M ▪ Looking to up-list on NASDAQ by early April 2021 Fully diluted: 156.1 M ▪ Looking to up-list on TSX & Hong Kong stock exchanges in 2021 Market cap: $350 M (Data as of February 28, 2021) 12 CSE: PKK Some Chinese Commercial Lending Stats OTCQX: PKKFF Average time it takes to process and make decision 1-2 on a loan application - Statistics and Analysis Dept. of the 43 $25 Weeks People 's Bank of China - Million 8,351 Trillion Number of SMEs as of December 2018 73 - China Association for Small & Medium Commercial Enterprises- Number of non-bank lenders Total value of commercial as of Dec. 2018 loans made in 2018 (in CAD$) - Statistics and Analysis Dept. of the Million - Statistics and Analysis Dept. of the People 's Bank of China - People 's Bank of China - Number of micro enterprises* as of Dec. 2018 Number of chartered banks Percentage of total 2018 - China Association for Small & Medium as of Dec. 2018 commercial loans made to Commercial Enterprises - 4,034 - China Banking and Insurance SMEs and micro enterprises Regulatory Commission - 24% - Statistics and Analysis Dept. of the People 's Bank of China - 13 * According to Wikipedia, a micro enterprise is a business with 9 or fewer employees CSE: PKK Subsidiaries Overview & Revenue Model OTCQX: PKKFF Asia Synergy Data Solutions Asia Synergy Financial Capital Asia Synergy Credit Solutions Manager of the Lending Hub Lender and financial services Provider of credit outsourcing ecosystem provider services to banks and lenders ▪ Service fees related to ▪ Interest income earned on ▪ Service fees to manage loans on Lending Hub transactions loans made behalf of banks and lenders Asia Synergy Supply Chain Asia Synergy Technologies Jin Xiaoer Marketer of Lending Hub supply- Manager of product procurement Manager of loan brokerage chain related services platform linked to Lending Hub platform linked to Lending Hub that provides interface to order ▪ Membership and service fees ▪ Service fees related to products which require financing charged to loan sales reps Lending Hub supply- chain ▪ Service fee for facilitating and loan brokerage transactions product purchase transactions companies 14 CSE: PKK Peak Fintech Group Management OTCQX: PKKFF Johnson has been CEO of the Peak Group since 2011, guiding the Liang “Golden” Qiu is a successful IT entrepreneur. Prior to company through a number of challenging periods and adjusting joining the Peak Group, he was the co-founder and CTO of its business model to changing and difficult market conditions. He Longkey Software Technology, a provider of cloud-based led the company’s transition from being a software development Software as a Service (SaaS) business management applications company to an asset management company focused the Chinese to small and medium size businesses. In his role as Peak Group Fintech and financial services sectors. His vision of giving China CEO, he’s responsible for the overall execution of the Canadian investors access to some of China’s most promising tech company’s strategic plan in China, both from a technological sector opportunities is now the driving force behind Peak’s development and business development standpoint. He also operations. Prior to joining Peak,