Valuation of a Company Engaged in R&D and Production of a New Material, Graphene 

We were instructed by Earthasia International Holdings Limited (06128.hk) to provide valuation services for a target company which is engaged in the R&D and production of graphene products.


Graphene was firstly isolated from graphite by researchers from The University of Manchester in 2004. Graphene is known as the thinnest material in the world but 200 times stronger than steel. Under room temperature, graphene is a superb electrical and thermal conductor.  With high level of elasticity and transparency, and it is could be applied on medical devices, sensors, batteries and transistors, etc. 

China contains second largest amount of graphite deposit in the world, accounting for 33% of the global supply. In 2016, the “13th Five-Year-Plan” National Strategic Emerging Industry Plan stated the Chinese government will support for the application of graphite to achieve industrial scale through increased funding and the establishment of innovation alliances and specialized industry bases.

 

Main information of the project is as follows:

 

  • Valuation subject:

        100% Equity Interest of Think High Global Limited

  • Consideration:

        692 million yuan (cash payment, consideration

        shares and promissory note)

  • Valuation Method:

        market approach (guideline publicly-traded

        comparable method & comparable transactions

        methods)

  • Purpose of Valuation:

        Public disclosure in a Circular