RE:1st Quarter Report and changes in leadership etc To restore some investor confidence start by answering this question....
Date: May 28, 2023 at 10:40:44 PM MDT
To: cboyd@tenetfintech.com
Subject: Shareholder Question
Hello,
Please explain why the Chinese business model has changed so radically overtime. The previous CEO never did articulate the strategy adequately.
Originally, the model was to provide a platform that matched SME borrowers with financial lenders for a fee (and high margin) with the promise to lenders that the platform would reduce credit risk. Now the co. provides a bunch of very low margin services like logistics which it has to partially outsource and has to provide deposits on behalf of SMEs to reduce the borrowing risk for the financial lenders.
This change increased revenues substantially but also the costs, so what is the point? Many investors/shareholders would prefer a co. with revenues of $10 million and net income of $2 million rather than a co. with revenues of $100 million and net income of $1 million.