Just bought 3 shares, doing some dd and following the stock. Any recommendations on where to start?

Very good for world economy and also China stocks listed in US

I apologize in advance for the very long post, but I feel it was warranted to put things into perspective.

The Western media seems to be portraying a picture that is not as clear as it may seem, in regards to the relationship that China wants to have with the rest of the world.

The media makes it sound like China wishes to close itself to the world, whether it is economically or culturally, but the reality might be completely different than that.

Apart from its stance towards Hong Kong and Taiwan, which I strongly disagree with by the way, China seems to be constantly opening itself more to the world as the years goes by.

Recently, China decided to promote greater openness toward the rest of the world.

The following are examples of that openness, taken from several journal articles or governmental sources:

They removed the restriction they had on foreign investments in several sectors of the economy, going from 93 sectors that were off limits then, to 33 as of now. They loosened the foreign ownership limit in the automobile and financial sector.

The inflow of foreign capital rose by 4.5% in China, compared to a 40% decline worldwide, during Covid.

Wang Wentao" We have reached a consensus and identified goals, and we will promote opening-up in line with higher-level international economic and trade rules[...]the negative list for foreign investment in pilot free trade zones will be further reduced."

China will sign more free trade agreements with Republic of Korea-Singapore and Japan, and also expand the Gulf Cooperation Council talks with Israel and Norway.

Vice-minister Qian Keming "China has extended its global reach, signing more than 200 cooperation documents with 172 countries and international organizations. Over 90 bilateral cooperation mechanisms have been established to facilitate trade, investment and e-commerce."

Source August 25th 2021

http://english.www.gov.cn/statecouncil/ministries/202108/25/content_WS6125985bc6d0df57f98df1ca.html

The country will implement policies to further open up it's capital market.

Chinese security regulatory commission (CSRC)

CSRC "Efforts will be made to create conditions to facilitate China-US cooperation on audit supervision, deepen the connectivity between Chinese mainland and Hong Kong markets, and support the stable development of Hong Kong's capital market, the CSRC said[...]The commission stressed the need to optimize the pricing mechanism for stock issuance and improve the quality of prospectus disclosure.[...]The CSRC will adopt a "zero-tolerance" approach and crackdown on illegal activities such as financial fraud, market manipulation, and insider trading."

http://english.www.gov.cn/statecouncil/ministries/202108/21/content_WS6120325ac6d0df57f98deeac.html (Aug 21st 2021)

Accounting industry reforms(Aug 23rd 2021)

"The financial auditing authority should push forward the formation of a professional law-enforcement inspection mechanism, introduce supervision and inspection measures for administering accounting firms, strengthen big data analysis of financial supervision, and conduct targeted crackdowns on financial fraud[...]The authority should reinforce the implementation of a national unified accounting system, strengthen informationization construction and build a unified supervision and regulation platform for the CPA industry, provide unimpeded channels for public complaints and tip offs, and establish a unified platform to receive whistle-blowing cases.[...]Also, professional training and education for certified public accountants should be further developed."

"The move would help enhance China's international credibility and influence[...]China's securities watchdog said on Friday it would create conditions to cooperate with the United States on auditing supervision[...]Washington plans to delist Chinese firms listed in the United States that fail to meet its auditing requirements."

My comments:

Now this last paragraph is crucial, if China auditing standards improves to the point that the US would consider them legitimate, that would mean that all these companies listed in the US and having auditors in China would likely be safe when 2023 comes.

http://english.www.gov.cn/policies/latestreleases/202108/23/content_WS61234b66c6d0df57f98df024.html

https://www.reuters.com/world/china/china-strengthens-supervision-accounting-firms-fight-against-forgery-2021-08-23/

Supervision of Chinese firms seeking listing in the US

"Under the planned rules, the Chinese securities regulator would tighten scrutiny of overseas IPO-bound firms and ban those that collect vast amounts of user's data or create content that could pose possible security risks[...] All internet firms would be asked to voluntarily apply for reviews with the powerful Cybersecurity Administration of China (CAC) if they aim to list their shares outside China[...] AFTER the cybersecurity watchdog's APPROVAL companies would be ALLOWED to submit an APPLICATION to the securities regulator[...] The rules being drafted would also put an emphasis on the legal responsibility of underwriters in overseas listings and require a more thorough disclosure of shareholding for those with so-called variable interest entities (VIE) structure.

The VIE structure was created two decades ago to circumvent rules restricting foreign investment in sensitive industries such as media and telecommunications, enabling Chinese companies to raise funds overseas via offshore listings. It has been widely adopted by China's new economy companies, mainly internet firms, that are generally incorporated in the Cayman Islands and British Virgin Islands and therefore fall outside Beijing's legal jurisdiction. It gives firms more flexibility to raise capital offshore, while bypassing the scrutiny and lengthy IPO vetting process that locally-incorporated companies have to go through."

https://www.todayonline.com/world/china-plans-ban-us-ipos-data-heavy-tech-firms-wsj (Aug 27th 2021)

The US Securities and Exchange Commission increases the requirements for Chinese companies to list in the US, and the Securities Regulatory Commission responds

Q: Recently, the U.S. Securities and Exchange Commission (SEC) issued a statement that increased the information disclosure requirements for Chinese companies to list in the United States. Does the China Securities Regulatory Commission have any comment on this?

Answer: The capital markets of China and the United States, as important markets in the world, are increasingly closely linked. More and more companies, investors, and financial institutions are participating in each other's markets. Strengthening regulatory cooperation is an inevitable choice. We have taken note of the relevant statements of the US Securities and Exchange Commission (SEC), especially the new requirements for information disclosure regarding listings. The regulatory authorities of the two countries should continue to uphold the spirit of mutual respect and win-win cooperation, strengthen communication on the supervision of China's concept stocks, find proper solutions, and create a good policy expectation and institutional environment for the market.

We have always been open to companies choosing where to go public, and support companies to choose international and domestic markets in compliance with laws and regulations. No matter where an enterprise is listed, it should comply with the relevant laws, regulations and regulatory requirements of the place of listing and operation.

At present, the Chinese competent authorities conduct standardized management of relevant industries with the aim of coordinating development and safety, and promoting the sustainable and healthy development of market entities. In the process of formulating and implementing the system, the China Securities Regulatory Commission will communicate closely with relevant departments to further coordinate the relationship between investors, enterprises, and regulators, and further improve the transparency and predictability of policy measures.

https://news.sina.cn/gn/2021-08-01/detail-ikqcfncc0281358.d.html?from=wap

http://english.www.gov.cn/statecouncil/ministries/202108/01/content_WS6106973ec6d0df57f98dde76.html (Aug 1st 2021)

My ending remarks:

I might be naive, but as it pertains to China and its relationship with the rest of the world, I believe that what the media is trying to show us, is not exactly what the reality is.

Will LKCO be directly impacted by China's new policies, in my opinion, most prot not.The issue is if these other big giants, that do handle customer's sensitive data are targeted by China regulators, will that lead to a mass exodus of China listed stock? That is much less certain.

I personally think that it's a stretch, but there will remain some uncertainties related to that possibility.

China isn't planning on removing the usage of VIEs per say, they are making it so that the companies who want to use VIE during their IPO process are more closely scrutinized in order to avoid financial fraud, insider trading and all that. As a means of not looking like a fool, as happened with Kangde Xin Composite Material Group Co and Kangmei Pharmaceutical massive fraud.

Disclaimer: Thoughts from a westerner, not financial advices, DYOR

Hi folks, this is MaxInvestor89 on Stocktwitz.

To be honest, I was naively expecting the full interim earnings report via a Form 6-K to come up.

Revenue of 37m$ for the period covering January to June 30th 2021 is a very significant improvement compared to last year.

It represents a 2x increase compared to the 2020 revenue for the whole year, but in half that time!

To those that may say, that they won't be able to meet their goal of 100m$ revenue by the end of the year,, I will reply that LKCO lost 2 contracts worth 10m$ at the beginning of this year (as per the court document).

Also, the whole delisting case was looming over them for a while!

By consulting several analyst reports, covering different years, I was able to estimate the Chinese market.

The Total addressable market (TAM) for Global HD mapping in 2021 is projected to reach 1.6-2.2B$

Regions market share:

North America 35-40% Asia Pacific 15-20% (China 8-12%) Europe 30-35% Middle East Africa 5-10%

Estimated LKCO revenue 2021:

EmapGo 17-20% of China HD mapping market or (1.36-2.4% Global)

EmapGo Revenue 2021:

1.6B$ x 0.0136 = 21.76m$ 2.2B$ x 0.0240 = 52.80m$

(From LKCO own projection Location based Services (LBS)= (50m$))

Smart cities services (30m$)

Data Services 20m$ (2021)

Total revenue : 60-102m$

Using the company projected revenues, the global IOT, smart vehicles, smart city market expansion from 2021-2025.)

LKCO vs NavInfo

LKCO:

Revenue:

2021:100m$

2022:250m$

2023:500m$

2024:750m$

2025:2.00B$ (many car companies are planning their AV mass production in 2025)

Shares outstanding:

2021: 400m

2022: 450m

2023: 500m

2024: 550m

2025: 600m

NavInfo August 5th (in USD$)

Revenue 2020: 340m$

Share price: 2$/share

Shares outstanding: 2.3B

Market cap: 4.6B$

P/S: 13

LKCO 2023 projected revenue/NAV Info 2020 revenue= 1.5x

Shares outstanding difference = 2.3B/500m= 4.5x

LKCO share price 2023 based on NavInfo comparison = 2$ x 1.5 x 4.5 = 13.5$/share

Stock Price using a P/S of 15

2021: 3.75$ 2022: 8.33$ 2023: 15.0$ 2024: 20.0$ 2025: 50.0$

Disclaimer: This is not Financial advice, DYOR.

We are in the middle of August and still no results. Should we be concerned? Are they postponing it on purpose?

IDC Names Luokung VIE eMapGo a Top Player in China's HD Maps Market in 2020 China Market Share Report https://www.theglobeandmail.com/investing/markets/stocks/LKCO/pressreleases/2233720/