ToPacific Inc. is launching a new e-commerce platform called 1and300.com that combines elements of Walmart, eBay, Groupon, and social networks. It aims to provide low-cost online and offline transactions. 1and300.com will only accept Kingdom Card as payment, and cardholders can purchase items and accumulate loyalty points. ToPacific seeks $2 million initially and $5 million total for marketing, acquisitions, and operations to establish 1and300.com. Financial projections estimate $10 million in sales the first year and profits of $1.4 million, growing significantly in subsequent years.
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1. The Next Biggest Thing
Confidential: Not for Public Dissemination
2. ToPacific Inc. Overview
? ToPacific Inc. is the second generation Internet transaction
software company, and its main business is www.1and300.com
? By establishing 1and300.org, we provide a online and off line
low-transaction-cost trading community (O2O Model).
? ToPacific Inc. aims to be customers¡¯ sales promotion specialist
? ToPacific Inc. plans to be publicly listed in 2014
3. Reciprocal Relationship
between ToPacific Inc. & Kingdom Card
? Kingdom Card is the only acceptable payment method for www.1and 300.com
? Kingdom Card holders help increase the market share of www.1and 300.com
? ToPacific Inc. (www.1and 300.com) creates a platform for Kingdom Card
holders to purchase goods and services, thus saving money.
? By investing in ToPacific Inc., Kingdom Card holders can not only accumulate
wealth but also promote the development of ToPacific Inc., and thus provide
better services.
4. Market Potentials
? Hybrid business model: Combine advantages of Wal-Mart, eBay, Groupon,
Social Networks, Customer Loyalty Program , and Franchise System.
? Wal-Mart¡¯s role: M2C direct sales model - Manufacturers sell their products
directly to final consumers. We provide e-commerce transactions and offline mart
system to develop a global alliance.
? 2nd generation Internet DNA: Embedding a social networks gene, we promote
manufacturers' products efficiently and reduce transaction costs significantly.
? More credible than BBB: Create a secure and trustable international trade &
commerce community with our guidance and escrow account service.
? Add more value than Groupon: Build our global virtual point money system to
lower transaction costs and build loyalty among buyers and sellers. Advance local
business by selling their coupons and vouchers.
5. Our Product
? 1and300.com ¡ª 2nd Generation E-Commerce Platform with eBay and
Facebook plugged in
? 300 Marketplace ¡ª an Organic & distributed market model
? 1and300.net ¡ª Global Loyalty Points Platform, our Kingdom Card system
? 1and300.org ¡ª GBS (Gideon Business Society): 1and300.com comes from
Bible and the story of Gideon. As the story goes, Gideon used 300 warriors,
defeating a million. We advocate faith, integrity and diligence as our culture.
Gideon Business Society (GBS) Accreditation is an honor ¨C and not every
company is eligible. Businesses that meet our high standards are invited to
join GBS.
Confidential: Not for Public Dissemination
7. Our Product: 300 Marketplace
Confidential: Not for Public Dissemination
8. Our Product: GBS, Faith-orientated group
GIDEON BUSINESS SOCIETY
Confidential: Not for Public Dissemination
9. Profit Sources
? Service Fees
o VIP membership fees;
o Advertising revenues
o Transaction fees like eBay;
o Revenue sharing fees on coupons and vouchers of sellers; We charge 1030% of revenue fees
o Revenues from the issuance of Kingdom Card
? Advertising Fees
o There will be extra fees for feature advertising and extra options including
bold and border display.
Confidential: Not for Public Dissemination
10. Investment Highlights
? In order to implement 1and300.com Phase 1 marketing campaign and
launch strategy, we are seeking an initial investment of $2 million.
? An additional investment of $5 million will be required for M&A,
operational expenses, continuing marketing campaigns, additional website
enhancements, maintenance and support as necessary to establish and
maintain 1and300.com.
? Proceeds will be used for:
o Working capital
o Marketing spending
o New talent hiring
o M&A
Confidential: Not for Public Dissemination
11. Share Exchange Plan
Only to Members with Kingdom Points:
? 1Point=1 Share;
? Minimum 1000 Shares with 1000 points
Exit Strategy:
? IPO in 2014
? Opening price expecting $10 a share.
Confidential: Not for Public Dissemination
12. Profit Expectation
(In
Millions)
Year 1
Year 2
Year 3
Sales
$10
$40
$80
EBITDA
$2
$8
$16
Net
Income
$1.4
$5.6
$11
EPS
$0.063
$0.26
$0.50
Shares
22
22
22
Valuation Multiple
2x
Year 1 Revenue
2.5x
Year 2 EBITDA
2.00x
Year 3 Earnings
The financial projections indicate that 1and300.com will have generated enough cash in the next
three-five years to permit the exit of the outside investors if so desired. It is the founders' choice to
continue with the company's profitable operations until 1and300.com is presented with a viable offer
for acquisition or the opportunity of an IPO is contemplated.
Confidential: Not for Public Dissemination
13. Management Team
Ming (Phil) Xu ¨C CEO Chairman
Mr. Xu is a successful serial entrepreneur and merchant banker. As an entrepreneur,
he sold one of his portfolios to SOE for around $50M. As a merchant banker, he
successfully took several companies public in the USA. Prior to his involvement in
finance space, Mr. Xu created an e-telecom company and became an E-commerce
expert. He consulted with Millennium Hanson Capital that advised China.com IPO.
In 2003, he founded World Capital Market, Inc. Mr. Xu also founded China Private
Equity Group. Mr. Xu received a Master degree in Communication Management
from University of Southern California and studied in Harvard Business School on
PEVC. President of FGBMFI chapters.
Andy Wang¨CVP of Operation and Product Manager
Graduated from Hunan University Industrial Design Major in 1995, Began his career
in Social Media Industry, employed with CCTV Economic Channel in 1997, changed
his career into Social Network in 1998, over 15 years experience in Social Network.
Employed as Branch Manager in Daheng Electronic Press, Multi-Media R&D
Department Manager in Tide Group, and also employed in Sina Tech. In 2005, Mr.
Wang created photographic community web www.shot8.com, over 200,000
registered users under data from 2006. He has a great reputation among Chinese
photographers, even Canon, Nikon, Sony, Sigma launched in Mr. Wang's webpage in
order to advertise their brands. In 2008, Kids Graphics brand "TONG YAN WU JI"
was added in shot8.com, it soon opens several branch stores in Beijing.
Confidential: Not for Public Dissemination
14. Contact Information
In the U.S.
Ming Xu: Tel: 626.395.9000
Email: XM@ToPacific.com
Andy Wang: Tel: 213.215.3529
Email: AW@ToPacific.com
Confidential: Not for Public Dissemination