April 6 2020 Safe Harbor Certain statements in
April 6, 2020
Safe Harbor Certain statements in this presentation, and other statements that the Company make, are forward-looking statements within the meaning of Section 27 A of the Securities Act and Section 21 E of the Securities Exchange Act of 1934, as amended. These statements include descriptions and information regarding the intent, belief or current expectations of the Company or its management about the future. These statements and information can be recognized by the use of words such as “expects, ” “plans, ” “will, ” “estimates, ” “projects, ” “intends, ” “anticipates, ” “believes, ” “confident” or words of similar meaning. These forward-looking statements are made only, and are based on estimates and information currently available to the Company, as of the date of this presentation. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors and assumptions, many of which are beyond the Company’s control. Future results could materially differ from historical performance. Except as otherwise required by applicable securities laws, the Company or any of its directors, officers, affiliates, advisors, representatives or underwriters has no obligation to and does not undertake to revise or update any forward-looking statements to reflect future events or circumstances. The recipient hereby acknowledges and agrees that neither the Company nor any of its affiliates, advisors or representatives accepts any responsibility for or makes any representation or warranty, express or implied, with respect to the truthfulness, ac curacy, fairness, completeness or reasonableness of the information contained in, and omissions from, these materials and that neither the Company nor any of its affiliates, advisors or representatives accepts any liability whatsoever for any loss howsoever arising from any information presented or contained in these materials or otherwise arising in connection with the presentation. The information contained in this presentation is highly confidential and may not be forwarded, published, distributed or otherwise disclosed, directly or indirectly, to any other person (whether within or outside your organization) for any purpose and may not be copied or reproduced in any manner whatsoever. Any forwarding, publication, distribution or reproduction of this document in whole or in part is unauthorized. By viewing, accessing or participating in this presentation, participants hereby acknowledge and agree to keep the contents of this presentation and these materials confidential. Participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided. Participants agree further not to photograph, copy or otherwise reproduce these materials in any form or pass on these materials to any other person for any purpose. Participants must return this document and all other materials provided in connection herewith to the Company at the completion of the presentation. By viewing, accessing or participating in this presentation, participants agree to be bound by the foregoing limitations. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. 2
Investment Highlights 3
Corporate Organization 4
Peng Yang, President, Secretary, Director Mr. Yang has international business and management experience from his positions working with Huaxin, a company engaged in wine trading and Reliant Investment (Group) Limited, an investment company. He has served as the general manager assistant and overseas affairs manager of Huaxin since 2015 and as limited director of Reliant Investment (Group) Limited since 2016. Mr. Yang is a leading member of our sophisticated and long-serving management team who has experience in alcohol marketing and has led us through multiple Management business breakthroughs. Mr. Yang holds a Bachelor of Engineering degree, with honors, from the University of Auckland in New Zealand in 2016. Sze Lok (Patrick Wong), Chief Financial Officer Before joining the Group, Mr. Wong served as the CFO of Amax International Holdings Limited since October 2012. From January 2007 to July 2012, Mr. Wong served as the Senior Manager of Crowe CPA Group. From January 2006 to December 2006, Mr. Wang served as the Head of Internal Audit Department of Intac International Company. Mr. Wang is a fellow of Institute of Chartered Accountants in England & Wales and is a Certified Information Systems Auditor of Information Systems Audit and Control Association. He received his Bachelor of Accountancy with honors from Hong Kong Polytechnic University. He received his Master of Management from Macquarie Graduate School of Management. 5
Financial Highlights 6
Financial Highlights Continued 7
Strategic Priorities 8
We Are Committed to the Alcohol Wholesale Business in China Our Business 9
Our Product Series 10
Market Overview 11
Market Overview Continued 12
The long-term demand for Chinese hard liquor, especially Fenjiu liquor, will continue to grow in China. The overall business environment has been optimistic, due to the continuous economic growth evidenced by significant growth of Chinese nominal gross domestic product (“GDP”). Market Overview Continued 13
China’s per capita disposable income has been increasing rapidly mainly due to the increasing wage level. The rising disposable income indicates the increasing purchasing power of Chinese people, as well as that they pay more attention to the quality of life, thus stimulating the further growth of wine consumption. Growth Drivers China’s urbanization rate has been improving greatly during the past decades and the Chinese government has set a goal of 60% by 2020. With the further improvement of the urbanization rate in China, the retail sales market is experiencing rapid growth in urban regions in China. Along with the adoption of two-child policy, more couples will give birth to two child and they will grow into the potential customers of wine in the future, increasing the purchasing power of Chinese consumers benefitting the wine market. There are favorable national and international policies for imported wine. According to bilateral trade agreement signed by PRC government with New Zealand, Chile and Australia, imported goods from the three countries will benefit from a low tariff rate. By 2019, the tariff will be totally eliminated. This favorable policy will reduce the wine retailing price and contribute to the sales. As the standard of living improves, PRC people grow more concerned about their health problems and focus on eating healthy food as well as exercise. They pay more attention to drinking for health rather than drinking abusively. The benefits of drinking wine, such as beautification and antioxidation, play an important role in contributing to its consumption, especially for female customers. 14
Competitive Strengths 15
Spirits Vending Machine Combined with Digital Identification Most of our Spirits Vending machines are innovative machines that have functions and advantages not found in today's common vending machines, thus providing spirits vending a competitive advantage over more established competitors. 1. Scan QR Code Innovative Machines 2. Select Payment Method or Amount of Spirits • • Convenient and accessiblevending machines Have to meet the various needs of customers for different venues. Virtual service, sono inventory and stockingissues! Costmicro-entrepreneurship, you do not need any fees to participate in this program 3. Drink Spirits Anytime/Anywhere 16
Spirits Vending Machine Combined with Digital Verification Our business model of unmanned sales will usher in more possibilities. Focusing on innovative cooperation in specialty and high quality spirit, we have launched a vending machine with a digital identity verification function. By then, you can also feel the thrill of drinking wine through the vending machine while walking in the district. Our target three distinct market segments: Business Model 1. End Users- Operators that have their own vending routes who wish to expand their product selections. 2. Distributors- Companies that supply operators with machines and supplies for their operations. 3. Branded Manufacturers - By working closely with these companies, we will customize our machines to meet their specifications and to allow them to "brand" our machines with their products. They will either supply the machines or sell them to their customers who will buy product supply for the machines from these companies. Our spirit vending machine business target to two markets: 1. Restaurants and Hotels – End-users benefit from our spirit vending machine purchased. 2. Equipment Supply Companies- These are large supply houses that offer a variety of equipment to the spirits. 17
Key Strategies 18
Equity Snapshot Ticker Symbol OTC: ORNC Share Price $1. 25 Market Cap (9/10/2019) $83. 90 M Shares Outstanding (9/10/19) 41. 95 M Revenue (FY 2019) $15. 19 M 19
Launch. Pad IR Contact Investor Relations Stan Wunderlich 1 -800 -625 -2236 info@cfsg 1. com www. launchpadir. net Oranco Inc. Investor Relations Oranco@surerich-invest. com One Liberty Plaza, Suite 2310 New York, NY 10006 USA 20
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