An Introduction To FSE Symbol: 27H OTC Symbol: HLLPF Forward - - PowerPoint PPT Presentation

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An Introduction To FSE Symbol: 27H OTC Symbol: HLLPF Forward - - PowerPoint PPT Presentation

May 2016 CSE Symbol: HP An Introduction To FSE Symbol: 27H OTC Symbol: HLLPF Forward Looking Statements Certain statements contained in this presentation may constitute "forward-looking statements. These statements,


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An Introduction To

CSE Symbol: HP FSE Symbol: 27H OTC Symbol: HLLPF

May 2016

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Forward Looking Statements

Certain statements contained in this presentation may constitute "forward-looking statements.” These statements, identified by words such as “plan,” "anticipate,” "believe,” "estimate,” "should,” "expect" and similar expressions include our expectations and objectives regarding our future financial position, operating results and business strategy. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Neoteck Solutions Inc. (“Neoteck”) and, on closing of the transaction between Neoteck and Hello Pal International Inc. (the “Transaction”), the Resulting Issuer to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; lack of brand awareness; early stage commercialization; limited number of products; limited operating history; intellectual property protection and, on closing of the Transaction, the Resulting Issuer; market fluctuations; and retention of key personnel. Forward looking statements are based on a number of material factors and assumptions, including global economic conditions to show modest improvement in the near to medium future, no material change to competitive environment, Neoteck and, on closing of the Transaction, the Resulting Issuer will be able to access sufficient qualified staff and there will be no material changes to the tax and other regulatory requirements governing Neoteck and, on closing of the Transaction, the Resulting Issuer. While Neoteck and, on closing of the Transaction, the Resulting Issuer considers these assumptions may be reasonable based on information currently available to it, these assumptions may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in the section titled "Risk Factors” in the Listing Statement filed with the Canadian Securities Exchange. Neoteck and, on closing of the Transaction, the Resulting Issuer intends to discuss in its quarterly and annual reports any events or circumstances that

  • ccurred during the period to which such documents relate that are reasonably likely to cause actual events or circumstances to differ materially from

those disclosed in the Listing Statement. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on our business or the extent to which any factor, or combination of such factors, may cause actual results to differ materially from those contained in any forwarding looking statement. Accordingly, readers should not place undue reliance on forward- looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect Neoteck and, on closing of the Transaction, the Resulting Issuer. The forward looking statements contained in this presentation are expressly qualified by this cautionary statement. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and, except as required by law, Neoteck and, on closing of the Transaction, the Resulting Issuer undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result

  • f new information, future events or otherwise, after the date which the statements are made to reflect the occurrence of unanticipated events. Readers

are cautioned against attributing undue certainty to, and placing undue reliance on, forward-looking statements.

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What is Hello Pal?

  • Hello Pal is a social language exchange

app that allows users to meet and chat with people from all over the world, in a completely foreign language, in minutes.

  • Launched on Google Play on May 9,

2015, and on iOS in November 2015

  • Over 600,000 registered users

worldwide

JUST SPEAK IT

No studying. No waiting.

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Speak in a foreign language

in just minutes

In literally minutes, you could be talking to someone in a totally foreign language, such as Chinese, French or Japanese. And we do mean talking

  • with your voice, not

just using text translations.

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Using Hello Pal’s filtering and matching abilities, you can easily find pals that suit your criteria. Filter by native language, learning language, nationality, location, etc. The world is suddenly a much smaller place!

Match yourself with pals

from all over the world

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First-in-the-world

Phrasebooks

Integrated into our chat system are our unique Phrasebooks designed for online-chatting. Simply choose a phrase, listen to the professionally-recorded guide audio, and repeat after it. Then send it to your pal! You’ll be learning and speaking,

  • n the go!

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Powerful

translation tools

  • Translate incoming text messages
  • Translate what you wish to say into

your pal’s language

  • Pronounce the translated text with

the help of (i) guide audio; and (ii) romanized text for languages like Chinese (“pinyin”) and Korean. When not using Phrasebooks, you can still chat freely with your pal on any topic and in any

  • language. Using the built-in

translation tools, you can:

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Industries

Covered

Hello Pal covers three main industries:

Language Learning Social / Dating Travel

Apps built on top of messaging increase user retention

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= Social Language Learning

Hello Pal caters to both serious language learners as well as the “unmotivated” group. What Hello Pal means for each group: Language Learner Socializer

  • Opportunity to meet people

from all over the world

  • Opportunity to find partner

/ spouse

  • Opportunity to

improve/learn a new language to improve chances of the above.

  • Opportunity to practice

the oral/spoken language

  • Opportunity to practice

with native speakers

  • Opportunity to try out
  • ther languages
  • Opportunity to meet

locals from destination country before traveling

  • Plan out trip with help of

locals

  • Experience the

destination with help of locals

Traveler

Serious Learner Unmotivated Learner

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  • 1. Serious Language Learners
  • 1. Job requirement
  • 2. Career enhancement
  • 1. For exams
  • 2. Going overseas
  • 3. For job prospects

Unmotivated Learners This group is much smaller, but willing to spend

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High School / University Students Employees / Workers

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  • 2. Socializers

Interest in learning languages: not high

Students and employees who:

  • know it will help with exams
  • know it will help career prospects
  • want more self-confidence with foreigners

BUT more interested in other things, and lack motivation.

Big Motivator = Socializing

Much larger group, less willing to spend on average, but total spend is huge

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  • 3. Travellers

Hello Pal also caters to people who like to travel, especially backpackers. Main concept: Make local friends BEFORE travelling Benefits:

  • Get recommendations and help when

planning trip

  • Start learning simple phrases
  • Finding hosts to stay with
  • Finding someone who can take you around

while there Hosts also benefit by being able to meet foreign friends, practice speaking foreign languages, and showing hospitality.

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Capitalising on Current Trends

  • Globalization

– Companies increasingly having to cater to international market

  • Growth in Messaging Apps

– Social networking expanding beyond Facebook to messaging apps such as; WhatsApp, Snapchat, WeChat, etc. Hello Pal is at the right place at the right time

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  • Mobile apps

User activities expanding beyond websites and desktop software to mobile apps

  • E-learning / Mobile learning

Like many other sectors, education sector is starting to experience disruption by online services and mobile utilization of services

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Case in Point – MOMO Inc.

  • Social app in China (now the third largest

behind WeChat and QQ)

  • Location-based, for meeting new friends
  • 78 million monthly active users
  • Listed on NASDAQ at end of 2014
  • Current valuation of US $3Bn
  • Turned profitable less than two years after first

generating sales

  • Branching out into creating mobile games
  • Its market still confined to within China

Proven market demand, proven business model

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Our Direction / Strategy

Focus on Social / Fun / Games – Socializing is primary focus, language learning is more a ‘by-product’; but we think that, ironically, it’s the better long term way to learn. – Games to enhance socializing, not just for learning – Chat is a core feature, not a supplementary one Target Travel crowd – Our direction is highly complementary to traveling crowd, especially ‘couchsurfers’ and backpackers, who are more social and keen to meet locals – Marketing campaigns to target this crowd, including Air BnB, TripAdvisor, Lonely Planet, etc. We have a unique / different strategy to competitors

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Future Revenue Model

  • VIP membership

– Monthly, quarterly or yearly membership fees – Access VIP features eg., full phrasebooks, no translation limits, etc.

  • Advertising / Sponsorship

– Many different ways this can be done

  • In-App Purchases

– Eg., stickers, premium phrasebooks

  • Platform Fees

– Allow people to become teachers and charge students

  • Language Courses

– Structured courses can be provided for serious language learners for a fee. Current Focus on user numbers with revenue generation later

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Registered Users

Android: 566,000 iOS: 53,500

Total registered users: 620,000

Daily new users: 3,500-4,000

We have achieved impressive downloads with no marketing

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Market Opportunity

  • The total mobile learning market is expected to grow from $7.98 billion in 2015 to

$37.60 billion by 2020 at a Compound Annual Growth Rate (CAGR) of 36.3% during the forecast period according to Research and

  • Markets. Language and

social learning is expected to be approximately 25%

  • f that total.
  • According to industry researcher Flurry more than $101.37 billion will be spent on ads

served in 2016 to mobile phones and tablets worldwide. That’s a 400 percent increase from 2013. From 2016 to 2019, mobile ads will nearly double again, rising to $195.55 billion. We have multiple avenues of revenue generation planned

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Barriers To Entry

What we have that can’t be reproduced quickly/easily:

  • Content

– Back-end content-production system

  • Quickly generating new phrasebooks, adding new

phrases and recordings etc.

  • Quickly adding new scripts and recordings, and

translations – Actual content

  • Phrasebooks, scripts, vocab items

– Phrases and words, translations, literal translations, audio recordings, for many languages

  • Content from BrillKids Little Reader content library

– 8 languages, tons of picture, audio and video

  • App and tech

– Some parts (eg., translation engine) can be reproduced quickly, but not easy to do it well. Other parts would take some time.

We have spent years building and perfecting our technology

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1. Requires expertise in both language education and technology

– Many language education companies – Many technology companies – Not many language education companies which focus on technology, and not many which provide both English and Chinese language courses

2. Must launch in Western and Chinese markets at the same time

– Success requires service to be launched in China and Western markets simultaneously, so that learners can make foreign friends. – Company must be familiar and comfortable with both markets.

Why is this not easy for others to do

Not easy for US company. Not easy for Chinese company.

Difficult!

=

Language education + Technology company

+

Launch in China and US

+

+

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  • We are Education + Technology

– We are an early education company and technology is in our DNA – Founder’s first company was BrillKids. Through BrillKids, our flagship product “Little Reader” for teaching reading is powered by software and web technologies, and has won multiple education product awards in the US.

  • Chinese and Western roots

– Through BrillKids, our main market has been the US, and has an international team with members in China, Hong Kong, and Europe, and partners in UK, Canada, Australia, Taiwan – Founder is Chinese Malaysian, living in Hangzhou, studied in England (10 years) and comfortable and experienced in both US and China markets – Operating companies will be in Hangzhou, Hong Kong and California, USA

We are perfect for the job

Hello Pal Hello Pal LLC

杭州好语伴科技有限公司 21

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KL Wong (Age: 45)

– Background

  • Malaysian, Hong Kong citizen
  • Cambridge University, Law MA (1993)
  • Fluent in English, Mandarin, Cantonese

– Entrepreneur

  • Founder of Hello Pal (2014 to present)
  • Founder of BrillKids , in the field of early childhood

education (2008 to present) – Finance / Venture Capital

  • Softbank Investment (HK:0648) (2001-2007)
  • President
  • Mainly technology-related projects in Greater China

– Dotcom

  • China.com (NASD: CHINA)/ Hongkong.com (HK:8006)

(1999-2001)

  • Vice President, Business Development

– Lawyer

  • Clifford Chance (worlds largest law firm) (1995 – 1999)
  • Specialized in China law and technology/telecoms advisory

Founder

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Hans Xu (Age: 48)

– Key management partner of the New Margin Venture group, one of the largest venture capital firms in China with over US$3 Bn of funds under management both within and outside China. – Prominent and well-connected angel investor in China with highly successful investment track-record. – Extremely well-connected in China, and able to leverage connections to help our project launch and grow.

Michael Koh Tat Lee (Age: 48)

– Angel investor with rich experience in mobile and technology sector – Masters degrees from Columbia University, US. – Currently Chairman of Pan Asia Mining Limited (HK:8173) – Previously Chairman of China Railway Logistics Limited (HK: 8089), CEO and Executive Director of M Dream Inworld Limited (HK: 8100), and Vice President of First Pacific Company Limited (HK: 0142), as well as having been with Bell South and AT & T in the United States.

Major Shareholders

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Current issued and outstanding: Hello Pal Acquisition: Private placement: $1,750,000 CAD @ 15 c Total issued and outstanding: 10% option plan @15c Fully diluted:

Share Structure

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27,373,977 25,000,000 12,000,000 64,373,976 6,400,000 70,773,976

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Investment Highlights

  • Hello Pal was recently launched and already achieving high

numbers of registered users with no marketing and thousands of new users registering daily

  • Recent oversubscribed financing and no debt with low burn rate.
  • Launching aggressive PR and user acquisition campaign.

Expansion of technical and marketing team

  • Major Chinese shareholders with substantial financial backing

and deep business and entertainment networks

  • Messaging has emerged as the new frontier of social on mobile

and apps built on messaging platforms have high user retention and engagement

  • Rapidly growing language learning market particularly in mobile

E-learning

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Hello Pal International

CSE Symbol: HP FSE Symbol: 27H OTC Symbol: HLLPF Suite 200 - 550 Denman Street Vancouver, BC Canada, V6G 3H1

604.683.0911

THANK YOU

“Our detailed assessment of competitors is that there is no one major firm that is positioned to compete with us across all education, language and Asia/North America areas and markets with a focus on both dynamic content and eLearning. Our Assets are more full-featured and more user fun and friendly than any other System”

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Hello Pal Video Tutorials

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Quick Tour

The Basics Text and Voice Messaging in a Foreign Language Helping Your Pal When Receiving And Sending Messages