Executive Summary
Core Insights
We are not in the business of “payments” — we are in the business of making other people’s compliant money flows cheaper, faster, and more compliant.
i.
License ≠ Rail ≠ Product. These are the three things most payment founders conflate, and separating them is the key to our strategic clarity.
ii.
We are not positioning ourselves as a “payment institution.” We are an aggregator + document-compliance intermediary + Hong Kong tax-optimisation hub — the compounding of all three is our real competitive edge.
iii.
Profit does not come from a single “channel spread.” It is the stack of channel spread + document service fee + FX margin + Hong Kong tax settlement share.
Three-Layer Framework
| Concept | Meaning | Our Role |
|---|---|---|
| License | Legal qualification granted by regulators, permitting operation of payment business | Ticket to entry; held in layers (HK MSO / AIFC FSP / MSB / MAS PI) |
| Rails | Fund-flow capabilities provided by licensed third parties | Agency counterparty; LianLian / YeePay / Airwallex / XTransfer / YiBao |
| Products | Specific client-facing services layered on top of the rails | Core profit layer: VCC / VA / documents / split settlement / tax settlement |
Licenses are qualification. Rails are tooling. Products are value. Operations are standard — none of the four can be missing.
Chapter One
Licensing Matrix
Global Licence Layering
| Tier | Licence | Holder | Threshold | Business Coverage | Strategic Value | Priority |
|---|---|---|---|---|---|---|
| Ticket | Domestic Aggregated Payment License | Shanyao (Wendy) | Already held | Signing domestic channel agency agreements | ★★★★★ | Already in place |
| Core | Hong Kong Money Service Operator (MSO) | Newly incorporated HK entity | Approx. RMB 700K–800K | International business, split settlement, tax settlement | ★★★★★ | Launch once cash flow stabilises |
| Main Theatre | AIFC FSP Payment Licence | Yidian Lingxi JV | Low (AIFC sandbox) | Full Kazakh domestic + cross-border stack | ★★★★★ | Within 24 months |
| Reserve | US/Canada MSB | Newly incorporated US / CA entity | Low | North American remittance, crypto-friendly | ★★★ | Hold in reserve |
| Deferred | Singapore MAS PI | — | Requires 2-year operating history | Southeast Asia | ★★★★ | Timing not yet ripe |
| Optional | UAE CBUAE / DFSA | Dubai entity | High (local capital requirements) | Local clearing in the Middle East | ★★ | Re-evaluate after the first live deal |
| Advanced | Kazakh Cross-Border FX Licence | AIFC JV | Medium | Cross-border FX conversion | ★★★★ | Growth stage, months 12–18 |
| Finance | Kazakh Micro-Lending Licence | AIFC JV | Medium | Merchant credit, consumer instalments | ★★★★★ | Ecosystem stage, months 24–36 |
Three Strategic Roles of a Licence
A.
Ticket-to-Entry
Without it we simply cannot operate. Domestic Aggregated Payment License, AIFC FSP.
B.
Margin-Amplifier
Owning it doubles our margins. Hong Kong MSO, cross-border FX, HK tax settlement.
C.
Defensive
Held as a hedge, rarely activated. US/Canada MSB, Singapore MAS PI.
Licence Acquisition Path (Timeline)
NOW M+6 M+12 M+24 M+36
| | | | |
[Domestic Aggr.] [HK MSO Filing] [HK MSO Granted] [AIFC FSP Granted] [Micro-Lending Lic.]
Already held Kick-off Margin step-up Main theatre live Value-added finance
| | |
[MENA Signage] [First Deal Live] [+ SG Signage] [Cross-Border FX] [US/CA MSB Reserve]
Signage+premises 3–5 deals SEA reach Compliance boost North America backup
Chapter Two
Product Stack (Four Layers)
Architecture Overview
L4
Value-Added Finance
Credit · Instalments · Wealth · Insurance · Supply Chain · Open API
Ecosystem-stage core · IPO valuation asset
L3
Risk & Compliance
KYC · KYB · AML · CFT · Data Compliance · PCI DSS
Entry threshold · Trust anchor
L2
Product Layer
VCC · VA · Document Pack · Split Settlement · FX Purchase · HK Tax Settlement
★ Our core profit layer
L1
Rails Layer
LianLian · YeePay · Airwallex · XTransfer · YiBao · Bank Cards
Third-party licensed · We never touch funds
L1 · Rails Layer
Third-party licensed payment institutions where we hold agency relationships — we don’t touch the funds. CogoLink is the primary rail; others are auxiliary supplements.
| Channel | Position | Advantage Scenarios | Our Role |
|---|---|---|---|
| CogoLink | Primary | All-scenario main rail — ME trade, split settlement, Africa, B2B high-frequency | Agent signatory |
| LianLian | Auxiliary | Large trade, split settlement, customs coordination | Agent signatory |
| YeePay | Auxiliary | ME trade settlement, flexible splits | Agent signatory |
| Airwallex | Auxiliary | Africa, multi-currency VA | Agent signatory |
| XTransfer | Auxiliary | B2B small-ticket high-frequency | Agent signatory |
| YiBao | Auxiliary | E-commerce, platform funding | Agent signatory |
| HK licensed bank / MSO | Self-held (future) | Split, tax settlement, offshore posting | Held via HK Co. |
| Kazakhstan local bank | JV | Local clearing, KZT tenge | Via AIFC JV (Halyk / Eurasian) |
L2 · Product Layer (Core Profit Layer)
This layer is where we make money, and it is the value clients actually buy.
| Product | Scenario | Pricing | Margin |
|---|---|---|---|
| Virtual Credit Card (VCC) | Cross-border micro-payments, test orders, SaaS subscriptions, ad spend | Per issuance + per credit line | Medium |
| Virtual Account (VA) | Hong Kong / Singapore receiving accounts | Monthly fee + transaction fee | Medium-High |
| Trade Document Pack | Client lacks PI / customs entry / logistics docs — we assemble them | Per document set | High (low cost · high perceived value) |
| Split Settlement Service | Large ticket split into 2–3 tranches across different rails | Per tranche + channel spread | High |
| FX Purchase & Payment | FX conversion via HK / SG VA | FX spread + service fee | Medium-High |
| HK Tax Settlement | HK entity fronts the tax settlement so the client’s onshore tax burden falls | Tax-savings share | Very High |
| Rail Matching Advisory | Match by client geography, business type and volume | Bundled into service fee | Intangible premium |
L3 · Risk & Compliance Layer
This layer does not bill directly, but it is the entry threshold and client trust anchor.
- KYC / KYB client identification: business licence, legal representative, shareholders, UBO
- Anti-Money Laundering (AML): suspicious transaction reporting, sanctions screening (OFAC / SDN / UN lists)
- Counter-Terrorist Financing (CFT)
- Transaction risk engine: amount, frequency, counterparty and geographic blocklists
- PCI DSS certification (mandatory once card business is involved)
- Data compliance: GDPR / Kazakh data localisation / China cross-border data assessment
L4 · Value-Added Finance Layer
Rolled out only in the ecosystem phase (months 18–36) of the Yidian Lingxi–Kazakh JV, this is the real valuation-driving block.
Payment gross margin runs 0.3–2%; financial services gross margin runs 20–40% — this is the core asset in the IPO valuation.
Payment gross margin runs 0.3–2%; financial services gross margin runs 20–40% — this is the core asset in the IPO valuation.
- Merchant credit lending
- Consumer instalments
- Money-market fund distribution
- Insurance distribution
- Supply-chain finance
- Open API platform + SaaS
- Multilingual AI customer service
Product-to-Licence Mapping
| Product | Dependent Licence | Holding Entity |
|---|---|---|
| Virtual Credit Card (VCC) | Card scheme partnership (Visa / MC) + AIFC FSP | JV |
| Virtual Account (VA) | HK MSO + AIFC FSP | HK entity + JV |
| Trade Document Pack | None (soft capability) | Operated in-house |
| Split Settlement | HK MSO + channel agency | HK entity + Mainland entity |
| FX Purchase & Payment | HK MSO / AIFC cross-border FX | HK entity / JV |
| HK Tax Settlement | HK tax-resident entity | HK entity |
| Merchant Credit / Consumer Instalments | Kazakh micro-lending licence | JV |
Chapter iv · Risk & Compliance
Risk & Compliance
We don’t touch the funds — risk & compliance is our only moat. The whole process is aligned to CogoLink’s compliance baseline as our primary rail; other channels layer differentiated requirements on top.
Internal Three-Tier Review Flow
| Stage | Owner | Core Actions | SLA |
|---|---|---|---|
| T1 · Material | Wendy | KYC / KYB / UBO completeness · sanctions-list preliminary screen · business-type classification | 24 hrs |
| T2 · Business | Grace | Business substance verification (trade background authenticity) · destination compliance judgement · rail-matching decision | 24 hrs |
| T3 · Risk | Mr. Lin | Final review for large / sensitive / non-standard deals · trigger > USD 500K or L3+ alert | 24 hrs |
| Monitoring | System + on-duty staff | In-flight transaction monitoring · anomaly gate triggers manual intervention | Real-time |
| Post-audit | Grace team | Monthly reconciliation · quarterly risk review · annual compliance audit | Ongoing |
Compliance Four Elements · KYC / KYB / UBO / AML
i.
KYC · Client Identity
Legal representative ID / passport · validity > 6 months · video face verification
ii.
KYB · Entity Identity
Business licence · org structure · bank accounts · 6-month statements
iii.
UBO · Ultimate Beneficial Owner
Natural persons holding ≥ 25% identified through · PEP (politically exposed persons) screening
iv.
AML · Anti-Money-Laundering
AML declaration · real-time sanctions list matching · STR suspicious transaction reporting
CogoLink Compliance Standard (Primary Rail · Baseline)
The whole platform runs on CogoLink’s compliance standard as the baseline; other auxiliary channels layer differentiated requirements on top.
| Compliance Dimension | CogoLink Mandatory Requirement | Consequence of Failure |
|---|---|---|
| Entity Due Diligence | KYB + UBO look-through + PEP screening (4-eye dual review) | Account opening refused |
| Trade Background | PI / contract / bill of lading complete + trade authenticity cross-check | Disbursement refused |
| Sanctions List | Real-time hit check against OFAC · EU · UN · HKMA lists | Immediate freeze · report |
| Large-amount Monitoring | Manual review > USD 100K single ticket · T3 review > USD 500K | Payout suspended |
| Data Retention | KYC / transaction records traceable ≥ 5 years | Compliance demerit |
| Suspicious Reporting | STR submitted to HK Joint Financial Intelligence Unit within 24 hrs | Licence risk |
| Data Security | Encrypted transit + tiered authorisation + audit logs | Compliance demerit |
Other Channels · Differentiated Compliance Layer
| Channel | Additional Requirements on Top of the CogoLink Baseline |
|---|---|
| LianLian | Split scenarios require a split-settlement confirmation letter · Hong Kong account info · split amount vs. contract consistency proof |
| YeePay | Middle East scenarios require counterparty proof of funds (Dubai partner business licence) · destination compliance declaration |
| Airwallex | Detailed AML declaration + UBO schedule · additional local compliance docs for Africa rails |
| XTransfer | Small-ticket high-frequency scenarios accept a simplified electronic bill of lading · but require cumulative volume-cap management |
| YiBao | E-commerce scenarios require shop back-end data export · 3-month platform statements |
| PingPong | E-commerce scenarios require shop back-end data download & export |
| XunHui | Large-amount scenarios require a supplementary client due-diligence questionnaire |
Risk Alert Levels
| Level | Trigger | Handling | Reporting |
|---|---|---|---|
| L1 · Green | Habitual client · single ticket < USD 100K · standard trade | Auto-pass · Wendy T1 review clears it | None |
| L2 · Yellow | New client · single ticket USD 100K–500K | T2 top-up materials · Grace rail decision | Internal file |
| L3 · Orange | Large USD 500K–5M · sensitive region · non-standard business | T3 (Mr. Lin) engages · split + HK tax settlement | Internal risk file · CogoLink pre-report |
| L4 · Red | > USD 5M · sanctions-list hit · PEP hit | Immediate stop + freeze | AML STR filing · joint report with rail partner |
Business Compliance Assessment Matrix
| Business Type | Compliance Risk | Recommended Rail | Additional Compliance Actions |
|---|---|---|---|
| Standard Goods Trade | Low | CogoLink primary | Standard KYC / KYB |
| Service Trade / SaaS | Low | CogoLink + XTransfer | Service delivery proof |
| Cross-border E-commerce | Medium | CogoLink + YiBao / PingPong | Shop data + platform statements |
| Split Large-amount | Medium-High | CogoLink + LianLian (split) + HK MSO | Split-settlement confirmation + source-of-funds |
| Middle East Trade | Medium-High | CogoLink primary · YeePay top-up | Counterparty proof of funds |
| Central Asia (Kazakhstan) Energy | High | AIFC FSP + local bank | MOU endorsement + SOE counterparty proof |
| Non-standard / Document-compliance | High | HK MSO + document pack | Business background statement + compliance declaration + legal opinion |
Detailed execution SOPs are in the sister documents:
- Client onboarding → end-to-end business flow · Dubai Office Vol I · Business Flow chapter
- Internal review / meeting cadence / decision mechanism · Partner Operating Agreement · SOP chapter
- Client materials checklist (external-facing) · Client Materials Checklist
Chapter Four
Strategic Judgements
Three Moats
i.
Licence Moat
AIFC FSP + HK MSO combination, walking on two legs. Two core licences on the ground within 24 months.
ii.
Rail Moat
Agency agreements with 5+ leading domestic institutions give us wide matching latitude for clients. Preserve stability and keep expanding agency relationships.
iii.
Service Moat
Documents + tax settlement + risk control are highly perceived and hard to replicate soft capabilities. Distil standardised SOPs and a case library.
Three Risk Points
Risk · 01
Fragile Agency Relationship
Rail providers can terminate the agency at any time, and we hold no fund-custody rights → cash-flow interruption
Risk · 02
Compliance Piercing Risk
If a client’s “compliant business” is later re-characterised as “channel laundering,” we are on the hook → legal liability
Risk · 03
Tax Optimisation Boundary
The HK tax settlement model sits in a domestic grey area; a policy tightening could invalidate it → margins halved
Mitigations
- Mid-term (within 12 months): secure HK MSO → upgrade from “agent” to “partially licensed operator”
- Long-term (within 36 months): AIFC FSP live → upgrade from “aggregator” to “issuer” with control over the money flow
- Compliance guardrails: strict KYC / AML; keep records of client business substance; have HK tax settlement business periodically reviewed by tax counsel
Chapter Five
Financial Model & Roadmap
Revenue Model (Per Deal)
| Revenue Item | Pricing Mechanism | Reference Rate |
|---|---|---|
| Channel Spread | Wholesale vs. quoted | 0.2 – 0.8% |
| Document Service Fee | Per document set | RMB 500 – 5,000 / set |
| FX Margin | FX spread on purchase & payment | 0.1 – 0.3% |
| Split Settlement Premium | Uplift per tranche | 0.3 – 0.5% / tranche |
| Tax Settlement Share | Share of client’s onshore tax savings | 10 – 30% share |
| VCC Fee | By credit line + per issuance | 1 – 3% |
Illustrative estimate: on a single USD 1M Middle East trade payment, running the full split-settlement + HK tax settlement flow, our revenue is roughly USD 8,000 – 25,000 per deal (0.8% – 2.5%).
Cost Structure
| Cost Item | Notes |
|---|---|
| Channel wholesale cost | Already netted into the channel spread |
| Headcount: Beijing team of 5–6 | Fixed |
| Hong Kong virtual office + tax settlement | Tens of thousands of USD per year |
| Dubai signage + premises | Low-thousands to tens of thousands USD per year |
| Compliance / legal / tax advisors | On demand |
| Risk-control system build-out | One-off + maintenance |
Break-Even
Assuming the Middle East line ramps to 5–10 deals per month at an average revenue of USD 10K per deal — monthly revenue ≈ USD 50K–100K, monthly cost ≈ USD 30K–50K — break-even: 3–5 deals per month.
Three-Year Business Forecast
Conservative scenario. FX assumed 1 USD = 7.15 CNY.
| Business Dimension | 2026 · Y1 Startup | 2027 · Y2 Expansion | 2028 · Y3 Maturity |
|---|---|---|---|
| Main Battleground | Middle East (Dubai) | ME + Central Asia (Kazakhstan MOU) | ME + Central Asia + SE Asia (Singapore) |
| Active B2B Clients | 20 | 80 | 200 |
| Monthly Avg Orders | 60 | 250 | 600 |
| Avg Order Size | 500K USD | 600K USD | 800K USD |
| Annual GMV | ~360M USD | ~1.8B USD | ~5.76B USD |
| Blended Service Fee | 0.8% | 1.0% | 1.2% |
| License Progress | Aggregated payment (existing) | + HK MSO self-held | + AIFC FSP JV + reserve MSB |
Three-Year Financial Model Forecast
Unit: CNY 10K (万元) · midpoint estimate.
| Item | 2026 · Y1 | 2027 · Y2 | 2028 · Y3 |
|---|---|---|---|
| Channel spread | 1,200 | 4,500 | 10,000 |
| Documentation service fee | 400 | 1,500 | 4,000 |
| FX margin + split premium | 200 | 800 | 2,000 |
| HK tax settlement share (Y2+) | — | 500 | 2,000 |
| VCC fee | 100 | 300 | 500 |
| AIFC JV dividend (Y3+) | — | — | 1,500 |
| Total Revenue | 2,000 | 7,500 | 20,000 |
| Personnel (Beijing + ME staff) | 600 | 1,600 | 3,500 |
| Dubai signage + HK virtual office + system | 250 | 600 | 1,500 |
| Compliance · Legal · Tax | 150 | 500 | 1,000 |
| License filings & annual fees (HK MSO / MSB / AIFC) | — | 300 | 1,000 |
| Total Cost | 1,000 | 3,000 | 7,000 |
| Net Profit | 1,000 | 4,500 | 13,000 |
| Net Margin | 50% | 60% | 65% |
IPO-qualifying compliant revenue — three-year cumulative net profit ~185M CNY (RMB), pairs with commodity trade FX defense as high-margin tech-service line item.
Third-Party Channel Rebate Forecast (Revenue Breakdown)
By each channel’s order-share and effective rebate rate. CogoLink as the primary rail contributes over half of our revenue.
| Channel | Position | Y1 (万 CNY) | Y2 (万 CNY) | Y3 (万 CNY) | 3-Yr Cumulative |
|---|---|---|---|---|---|
| CogoLink | Primary · Deep partnership | 1,100 | 4,500 | 10,000 | 15,600 |
| LianLian | Split auxiliary | 300 | 900 | 2,000 | 3,200 |
| YeePay | ME auxiliary | 200 | 600 | 1,200 | 2,000 |
| Airwallex | Africa · multi-currency VA | 160 | 450 | 1,000 | 1,610 |
| XTransfer | B2B small-ticket | 100 | 300 | 800 | 1,200 |
| YiBao / PingPong | E-commerce | 80 | 225 | 600 | 905 |
| HK licensed bank / MSO (self-held) | Y2+ tax share | — | 375 | 2,000 | 2,375 |
| AIFC JV dividend | Y3+ Central Asia | — | 150 | 1,600 | 1,750 |
| VCC / other | Miscellaneous | 60 | — | 800 | 860 |
| Total | — | 2,000 | 7,500 | 20,000 | 29,500 |
Structural observation: CogoLink contributes ~53% of 3-year cumulative revenue — the core revenue foundation. Second tier (LianLian + YeePay + Airwallex) totals ~24%, filling in by geography/scenario. HK tax share starting Y2 and AIFC JV dividend from Y3 mark the transition from channel-agent to licensed+capitalized hybrid — the key growth curve.
Next Steps
| Priority | Item | Owner | Deadline |
|---|---|---|---|
| P0 | Close the first Middle East deal to validate the SOP | Full team | 30 days |
| P0 | Codify internal cost sheet + external price sheet | Mr. Lin | 7 days |
| P0 | Standardise document checklist × business type | Wendy + Grace | 7 days |
| P1 | Online intake form, Phase 1 | Grace team | 14 days |
| P1 | Kick off Hong Kong MSO licence application | Mr. Lin + Wendy | 3 months |
| P2 | Advance the Kazakhstan MOU to a formal agreement | Mr. Lin | 3 months |
| P2 | Prepare AIFC FSP licence documentation | Both sides | 6 months |
| P3 | Reserve-mode start on US/Canada MSB | TBD | 12 months |
Licenses are qualification. Rails are tooling. Products are value. Operations are standard. None of the four can be missing.