Download as pdf or txt
Download as pdf or txt
You are on page 1of 8

+27:$7(575($70(172)0$1*2$678'<2)

)285(;3257&25325$7,216,17+(3+,/,33,1(6

-RFHO\Q/$YHQRDQG0D([FHOVLV02UGHQ

&HQWUDO/X]RQ6WDWH8QLYHUVLW\6FLHQFH&LW\RI0XxR]1XHYD(FLMD3KLOLSSLQHV

$%675$&7

7KLVVWXG\LQYROYHGIRXUPDQJRH[SRUWFRUSRUDWLRQVLQ0DQLOD+RWZDWHUWUHDWPHQW +:7 HQWDLOV


GLSSLQJ RI IUHVKO\ KDUYHVWHG IUXLWV LQ R& KHDWHG ZDWHU IRU DSSUR[LPDWHO\  PLQXWHV  7KH
FRPSDQLHVKDYHEHHQSUDFWLFLQJ+:7VLQFHWKHVWDUWRIWKHLUPDQJRRSHUDWLRQLQUHVSRQVHWRWKH
IUXLW TXDOLW\ UHTXLUHPHQW RI LPSRUWLQJ FRXQWULHV 7KH\ KDYH VLPLODU PDUNHWLQJ WHUPV DQG
FRQGLWLRQV'XULQJSHDNVHDVRQDURXQGSHUFHQWRI PDQJRHVFRPH IURP /X]RQ ZKLOHWKH
UHVW   DUH IURP 9LVD\DV DQG 0LQGDQDR  -DSDQ DQG +RQJ .RQJ DUH WKH PRVW FRPPRQ
H[SRUWGHVWLQDWLRQVDOWKRXJKH[SRUWVZHUHDOVRQHJRWLDWHGZLWK&KLQD866LQJDSRUH$XVWUDOLD
1HZ=HDODQGDQG(XURSH
:KLOH+:7LVDFFHSWHGDVDQHIIHFWLYHGLVHDVHFRQWUROWHFKQRORJ\SDUWLFXODUO\DQWKUDFQRVH
DQGVWHPHQGURWLWVXVHKRZHYHULVFRQILQHGPDLQO\WRPDQJRSURFHVVRUVDQGH[SRUWHUV7KLVLV
EHFDXVH WKHVH GLVHDVHV RQO\ VKRZXS ZKHQ IUXLWV DUH DOUHDG\ KDUYHVWHG DQG LQ WKH KDQGV RI
H[SRUWHUVSURFHVVRUV  7KH ILQGLQJV IURP WKH IRXU FDVHV UHYHDOHG WKDW WKH\ DOO SUDFWLFH WKH
UHFRPPHQGHG+:7WHFKQRORJ\EXWZLWKVRPHPRGLILFDWLRQV:LWK+:7WKHFRPSDQLHVZHUH
DVVXUHGRIORZHUDQWKUDFQRVHLQFLGHQFHRIRQO\SHUFHQWFRPSDUHGWRWKRVHQRWVXEMHFWHGZKLFK
KDYH DQ RFFXUUHQFH RI DV PXFK DV  SHUFHQW  7KLV LQ WXUQ UHVXOWHG LQ KLJKHU YROXPH RI IUXLWV
SURFXUHGDQGVROGDQGFRQVHTXHQWO\LQFUHDVHGLQFRPHDQGSURILW
7KHNH\LQIRUPDQWVSHUFHLYHG+:7DVWHFKQLFDOO\IHDVLEOHZKHQH[DPLQHGLQWHUPVRILWV
UHODWLYHDGYDQWDJHFRPSDWLELOLW\HDVHRIDSSOLFDWLRQKHDOWKDQGHQYLURQPHQWDOVRXQGQHVV

.H\ZRUGVKRWZDWHUWUHDWPHQW+:7WHFKQRORJ\PDQJRTXDUDQWLQHSURFHGXUH

,1752'8&7,21

0DQJRLVWKHWKLUGPRVWLPSRUWDQWIUXLWSURGXFWQH[WWRSLQHDSSOHDQGEDQDQDLQWHUPVRIYDOXHDQG
YROXPHRISURGXFWLRQ$WSUHVHQWWKHUHLVDQLQFUHDVLQJGHPDQGIRUWKLVIUXLWIURPERWKORFDODQG
IRUHLJQPDUNHWV7RPHHWWKLVGHPDQGKRZHYHUWKH3KLOLSSLQHVPDQJRLQGXVWU\VKRXOGJHDUXSIRU
FRPSHWLWLRQ ZLWKRWKHU PDQJRSURGXFLQJFRXQWULHVLQRUGHUWRPDLQWDLQDQGLQFUHDVHLWVVKDUHLQ
WKHZRUOGPDUNHW
6FLHQWLVWV LQ YDULRXV UHVHDUFK DQG GHYHORSPHQW DJHQFLHV LQ WKH FRXQWU\ DUH GHYHORSLQJ
SURJUDPV WR ERRVW PDQJR SURGXFWLRQ DQG HQVXUH WKH TXDOLW\ RI PDQJR ,Q IDFW WKH 3KLOLSSLQH
&RXQFLOIRU$JULFXOWXUH)RUHVWU\DQG1DWXUDO5HVRXUFHV5HVHDUFKDQG'HYHORSPHQW 3&$55'
KDYH ODXQFKHG WKUHH FRPSOHPHQWDU\ SURJUDPV WR DGGUHVV WKH ZLGH UDQJH RI SUREOHPV IDFLQJ WKH
PDQJR LQGXVWU\ )RU H[DPSOH WKH 0DQJR &RPSUHKHQVLYH 7HFKQRORJ\ 7UDQVIHU 3URJUDP
0&773  LPSOHPHQWHG IURP  ZDV GHVLJQHG WR VROYH SURGXFWLRQ DQG SRVWSURGXFWLRQ
WHFKQRORJLFDOSUREOHPVRIPDQJR
'HVSLWH DOO WKHVH HIIRUWV WKH PDQJR LQGXVWU\ KDYH QRW VLJQLILFDQWO\ LPSURYHG 0XFK
UHPDLQV WR EH GRQH FRQVLGHULQJ WKH HQRUPLW\ RI WKH YDULHW\ DQG FRPSOH[ SUREOHPV WKDW IDFH WKH
LQGXVWU\ ,Q IDFW DFWXDO DQG SRWHQWLDO \LHOG JDS UHPDLQV ZLGH H[KLELWLQJ D GLIIHUHQFH RI DURXQG
SHUFHQW DYHUDJH\LHOGRIWRNJSHUPDWXUHWUHHIUXLWLQJVHDVRQFRPSDUHGWRSRWHQWLDO
\LHOG RI  WR  NJPDWXUH WUHHIUXLWLQJ VHDVRQ %XJDQWR HW DO   JRRG TXDOLW\ IUXLWV
EDUHO\UHDFKSHUFHQWRIWKHWRWDOKDUYHVWSRVWKDUYHVWORVVHVDUHKLJKDQGSURGXFWLRQFRVWVWLOOD
PDMRUFRQFHUQ
3RVW KDUYHVW ORVVHV DUH RIWHQ FDXVHG E\ DQWKUDFQRVH DQG VWHPHQG URW 1RQHWKHOHVV
UHVHDUFKHUV KDYH IRXQG WKDW GLVHDVH LQFLGHQFH FRXOG EH PLQLPL]HG LI QRW DOWRJHWKHU DYRLGHG LI
PDQJRHVDUHVXEMHFWHGWR+RW:DWHU7UHDWPHQW +:7 %DJJHGPDQJRHVDQGPLQXWHKRWZDWHU
GLSUHGXFHGDQWKUDFQRVHLQIHVWDWLRQE\SHUFHQWDQG VWHPHQG URW E\  SHUFHQW %XJDQLF HW
DO $OWKRXJK+:7KDVSURYHGWREHHIIHFWLYHLQGLVHDVHFRQWUROLWVXVHKRZHYHULVOLPLWHG
WRH[SRUWHUVIUXLWSURFHVVRUV ZKRDUHUHTXLUHGWRSHUIRUPSRVW KDUYHVWWUHDWPHQWWRHQKDQFH IUXLW
TXDOLW\EHIRUHH[SRUWSDUWLFXODUO\WR-DSDQ
7KLV VWXG\ ZDV FRQGXFWHG WR GHWHUPLQH WKH H[WHQW RI +:7 WHFKQRORJ\ DGRSWLRQ DQG WR
DVVHVVLWVLPSDFWLQWKHPDQJRLQGXVWU\

0(7+2'2/2*<

0DQJR H[SRUWSURFHVVLQJ FRUSRUDWLRQV ZHUH VHOHFWHG EDVHG RQ WKHLU ZLOOLQJQHVV WR JUDQW DQ
LQWHUYLHZ DQG RSHQ WKHLU RIILFHV DQG SODQWVVWDWLRQV IRU LQVSHFWLRQ  )RUPDO DQG LQIRUPDO
LQWHUYLHZVZHUHFRQGXFWHGDPRQJNH\LQIRUPDQWV ., XVLQJDQLQWHUYLHZJXLGH,QVSHFWLRQRIWKH
SODQW ZDV OLNHZLVH PDGH WR REVHUYH WKH RQJRLQJ PDQJR RSHUDWLRQ VHH WKH IDFLOLWLHV WRROV DQG
HTXLSPHQW XVHG IRU +:7 DQG YDSRU KHDW WUHDWPHQW 9+7   'DWD ZHUH DQDO\]HG DQG SUHVHQWHG
GHVFULSWLYHO\ZLWKSDUWLFXODUIRFXVRQWKHGHVFULSWLRQRI+:7SUDFWLFHVDQGFRVWUHTXLUHPHQW

5(68/76$1'',6&866,21

0DQJR2SHUDWLRQDQG0DUNHWLQJ

7KHIRXUFRUSRUDWLRQVXQGHUVWXG\KDYHEHHQLQWKHPDQJRRSHUDWLRQIRUDQDYHUDJHRI\HDUV
7KH SDWWHUQ DQG WHUPV E\ ZKLFK WKH\ SURFXUH PDQJR IRU H[SRUW DQG SURFHVVLQJ ZHUH VLPLODU
0DQJR RSHUDWLRQ XVXDOO\ FRPPHQFHV LQ 'HFHPEHU DQG -DQXDU\ ZKHQ FDQYDVVLQJ IRU SRVVLEOH
VRXUFHVRIPDQJRIRUH[SRUWLVGRQH7KLVLVEHFDXVHH[SRUWRIIUHVKPDQJRHVVWDUWVDVHDUO\DV
WKH VHFRQG ZHHN RI -DQXDU\  7KH SHDN PRQWKV IRU H[SRUWLQJ KRZHYHU DUH IURP 0DUFK WR 0D\
ZKLOHWKHRIISHDNVHDVRQRUOHDQPRQWKVDUHIURP'HFHPEHUWR-DQXDU\3URFHVVLQJRI PDQJR
DOVRFRLQFLGHVZLWKWKHSHDNPRQWKVDVXQH[SRUWDEOHIUXLWVRU³UHMHFWV´DUHSURFHVVHGLQWRSXUHHV
DQGFRQFHQWUDWHV
7DEOH7KHPDQJRH[SRUWHUVDQGSURFHVVRUV

<HDU0DQJR
&RPSDQ\ 3URGXFW/LQHV
2SHUDWLRQ6WDUWHG
9DOOH\RI+RSH  )UHVKPDQJR
)UHVK PDQJR SXUHH KDOYHV
3UHPLXP)UXLWV,QF 
MDPDQGMXLFHV
(YHUODVWLQJ)RRG&RUS  )UHVKPDQJRSXUHH
0DEXKD\  0DQJRSXUHHFRQFHQWUDWHV

6RXUFHVRI0DQJRDQG4XDOLW\5HTXLUHPHQWV

$VFLWHGHDUOLHUWKHSHDNPRQWKVLQPDQJRH[SRUWLQJLVIURP0DUFKWR0D\7KLVFRLQFLGHVZLWK
WKHSHDNSURGXFWLRQPRQWKVFDOOHGWKH/X]RQVHDVRQZKLFKUXQVIURP)HEUXDU\WR0D\'XULQJ
WKHVH PRQWKV PDQJR VXSSO\ LV IURP /X]RQ SDUWLFXODUO\ 3DQJDVLQDQ =DPEDOHV %XODFDQ
3DPSDQJD1XHYD(FLMD%DWDQJDV1XHYD9L]FD\DDQG/D8QLRQ
7KH DYHUDJH YROXPH SURFXUHG E\ WKHVH IRXU FRUSRUDWLRQV GXULQJ SHDN VHDVRQ ZDV DURXQG
 WRQV   7KH\ EX\ PDQJRHV GXULQJ OHDQ PRQWKV DW DQ DYHUDJH RI  WRQV  9ROXPH DQG
IUHTXHQF\RIEX\LQJPDQJRHVYDULHGJUHDWO\E\VHDVRQDVEX\LQJGXULQJSHDNPRQWKVZDVDOPRVW
GDLO\FRPSDUHGWRRQO\DERXWGD\VDZHHNGXULQJRIISHDNVHDVRQ
$OOIRXUFRUSRUDWLRQVKDYHURYLQJDJHQWVLQHDFKRIWKHVRXUFHSURYLQFHVPHQWLRQHGDERYH
0DUNHWLQJ WUDQVDFWLRQV WKDW LV EX\LQJ PDQJR FDQ DOVR EH GRQH GLUHFWO\ IURP WKH
JURZHUVFRRSHUDWLYHVWKURXJKWHOHSKRQHZRUGRIPRXWKDQGZDONLQVHOOHUV
0RVWVSHFLILFDOO\IRUWKH/X]RQVHDVRQFDQYDVVEX\LQJGHOLYHU\F\FOHLVIURP6DWXUGD\WR
:HGQHVGD\ ZLWK)ULGD\DVWKHFXWRIISHULRG7KLV PDUNHWLQJ VFKHPHLV DGKHUHG WR LQ RUGHU WR
FDWFK XS ZLWK WKH VKLSSLQJ VFKHGXOH IRU -DSDQ  :LWK WKLV VFKHGXOH EX\HUV FDQYDVV PDQJR RQ
7XHVGD\ DQG PDQJRHV DUH KDUYHVWHG WKH QH[W GD\  7KH KDUYHVWHG IUXLWV DUH GHOLYHUHG WR WKH
FRPSDQ\¶V VWDWLRQ E\ 7KXUVGD\ IRU TXDUDQWLQH DQG WKHQ SDFNHG DQG VKLSSHG E\ )ULGD\  7KH
VKLSSLQJSHULRGIURPWKH3KLOLSSLQHVWR-DSDQDQG.RUHDWDNHVDERXWDQGGD\VUHVSHFWLYHO\
0DQJRHV DUH ERXJKW HLWKHU ³VWUDLJKW´ RU ³FODVVLILHG´ 6WUDLJKW EX\LQJ PHDQV DOO KDUYHVWV
UHJDUGOHVV RI VL]H DUH WDNHQ ZKLOH FODVVLILHG UHIHUV WR VRUWLQJ WKH IUXLWV LQWR H[SRUW JUDGHVL]HV
([SRUWJUDGHPDQJRHVZHLJKIURPDURXQGWR!JSHUIUXLW7KHUHDUHILYHJUDGHV 7DEOH
 VXSHUVPDOO 66 ZHLJKVWRJVPDOO 6 ZHLJKVWRJPHGLXP 0 WR
JODUJH / WRJDQGH[WUDODUJH ;/ DQGXS0DQJRHVERXJKWRQVWUDLJKWEDVLV
DUHSDLGDWDSULFHUDQJHRI3SHUNJ )HEUXDU\WR$SULO GRZQ3SHUNJLQ0D\([SRUW
JUDGHPDQJRHVDUHERXJKWDW3NJGXULQJ)HEUXDU\DQG0DUFKGRZQ3IRURWKHUVL]HVDQG
GURSVWR3LQ0D\GRZQ3IRU6WR667KHSULFHRIPDQJRKRZHYHULVLQIOXHQFHGE\WKH
+RQJ .RQJ PDUNHW KHQFH RWKHU FRUSRUDWLRQV KDYH ORZHU SULFH UDQJHV  1HYHUWKHOHVV WKH NH\
LQIRUPDQWVVDLGWKDW-DSDQLPSRUWHUVRIIHUDEHWWHUSULFHWKDQ+RQJ.RQJ
7KHFRPSDQ\LPSRVHGTXDOLW\UHTXLUHPHQWVRQWKHLUEX\LQJDJHQWVDVWKH\WKHPVHOYHVZHUH
SUHVFULEHGZLWKWKHVDPHE\WKHLULPSRUWHUV7KHIUXLWVKRXOGEHDWULJKWPDWXULW\IUHHIURPVFDE
DQGVRRW\PROGODWH[EXUQVZLQGEUHDNPDUNVDQGVFUDWFKHV2WKHUFRPSDQLHVOLNH9DOOH\RI+RSH
DGGLWLRQDOO\ UHTXLUH WKDW IUXLWV EH VRUWHG E\ VL]H ULJKW LQ WKH IDUP EHIRUH GHOLYHU\ WR WKHLU SODQW
VWDWLRQ DW WKH )7, &RPSOH[ LQ 0HWUR 0DQLOD 7KLV ZDV WKHLU SUHYHQWLYH PHDVXUH IRU LQFXUULQJ
KLJKHUUDWHV RIWRWDOYROXPHSXUFKDVHG RIUHMHFWVWKH\FDOO 563 RU UHMHFW VD SXQR 563 LV
HTXLYDOHQWWRORFDOJUDGH
)LJXUH&RORULQGH[RIPDQJREHVWHDWHQDWWKVWDJH SKRWRIURPZZZGVDSLFRPSK

4XDOLW\ FRQWURO DQG UHFRYHU\ UDWHV KRZHYHU DUH VRPHWLPHV WKUHDWHQHG HVSHFLDOO\ ZKHQ
EX\LQJDJHQWVKDYHWR IXOILOOWKHLUTXRWD $VDUHVXOWWKHDJHQWV¶SULRULW\LVIRFXVHG PRUHRQWKH
YROXPHWKH\FDQDFTXLUHUDWKHUWKDQTXDOLW\RIWKHIUXLW$VDUHVXOWIUXLWUHMHFWVFDQEHDVKLJKDV

%DVHG RQ UHVHDUFK DQG NH\ LQIRUPDQWV WHVWLPRQLHV PDQJRHV WKDW DUH VXEMHFWHG WR +:7
RQO\KDGDQWKUDFQRVHLQFLGHQFHDVFRPSDUHGWRGLVHDVHLQFLGHQFHZLWKRXW+:76XIILFH
LWWRVD\WKHORZHUWKHDQWKUDFQRVHLQIHVWDWLRQWKHKLJKHUWKHLUUHFRYHU\UDWHDQGLQFRPHZRXOGEH

([SRUW'HVWLQDWLRQV

)UHVK PDQJRHV IURP WKH 3KLOLSSLQHV DUH XVXDOO\ H[SRUWHG LQ -DSDQ DQG +RQJ .RQJ 2WKHU
LPSRUWLQJ FRXQWULHV LQFOXGH 6LQJDSRUH .RUHD &KLQD 86 $XVWUDOLD (XURSH DQG 1HZ =HDODQG
7KHEXON  RIPDQJRHVKRZHYHUJRHVWR-DSDQ(DFKFRXQWU\KRZHYHUKDGLWVRZQVL]H
SUHIHUHQFH )RU LQVWDQFH -DSDQ DQG +RQJ .RQJ UHTXHVW 66 DQG ;/ VL]HV ZKLOH .RUHD WRJHWKHU
ZLWK 86 6ZLW]HUODQG DQG /RQGRQ RUGHU 0 WR ;/ VL]HV RQO\ 7KHVH DUH SDFNHG LQ FRUUXJDWHG
FDUWRQZLWKSDUWLWLRQVDQGIURPSXGGLQJ$ER[ZHLJKVDSSUR[LPDWHO\NJV7DNLQJ-DSDQDVDQ
H[DPSOHDNJER[RIPDQJRVFRVWVDSSUR[LPDWHV869DOOH\RI+RSHPDQDJHVIRULQVWDQFH
\LHOGHG D JURVV LQFRPH RI 86  %DVHG RQ H[SHULHQFH WKH XVH RI +:7 DQG 9+7 KDG
UHGXFHG DQWKUDFQRVH LQFLGHQFH WR  SHUFHQW DV FRPSDUHG WR  SHUFHQW LQIHVWDWLRQ WR QRQ
+:79+7WUHDWHGIUXLWV$UHGXFWLRQRISHUFHQWLQFLGHQFHFRXOGUHVXOWWRDQDGGHGLQFRPHRI
DVPXFKDV86SHUGHOLYHU\

7DEOH6WDQGDUGPHDVXUHVIRUH[SRUWDEOHPDQJR

6L]H 1HW:HLJKW 3LHFHVFDUWRQ


;/ JPVDQGXSSF SFV
/  
0  
6  
66  

$GRSWLRQRI+:7

7KHIRXUFRPSDQLHVKDYHXVHGKRWZDWHUWUHDWPHQW +:7 IURPWKHYHU\EHJLQQLQJRIWKHLUH[SRUW


EXVLQHVVRQPDQJR
7KHDFWXDOSUDFWLFHRIWKHFRPSDQLHVVWXGLHGGLGQRWGLIIHUVLJQLILFDQWO\IURPWKHVWDQGDUG
UHFRPPHQGHGSUDFWLFH$VLQWKHUHFRPPHQGHGSUDFWLFHPDQJRHVDUHWUHDWHGLPPHGLDWHO\ZLWKLQ
KRXUVDIWHUKDUYHVWGHOLYHU\7KHIUXLWVDUHGLSSHGLQKRWZDWHUIRUDERXWPLQXWHV7KLVWLPH
OLPLW PD\ KRZHYHU EH VKRUWHQHG WR  PLQXWHV GHSHQGLQJ RQ ZHDWKHU FRQGLWLRQ DQG PDQJR
VRXUFH0RVWSDUWLFXODUO\IURPWKHH[SHULHQFHRI3UHPLXP)UXLWV,QFPDQJRHVIURP3DQJDVLQDQ
KDYH PLQLPDO DQWKUDFQRVH LQFLGHQFH KHQFH GLSSLQJ WLPH LV VKRUWHQHG WR  PLQXWHV ,I PDQJRHV
FDPHIURP%DWDQJDVRU%XODFDQDPLQXWHGLSLVUHTXLUHG7KH\DOVRSUDFWLFHPDQJRIORDWDWLRQLQ
VDOWVROXWLRQ,IWKHIUXLWIORDWVLWPHDQVGHOD\HG+:7
:DWHUWHPSHUDWXUHLVKRZHYHUIROORZHGVWULFWO\E\DOOFRPSDQLHV:DWHUWHPSHUDWXUHLVNHSW
EHWZHHQƒ&WKURXJKDQLQVWDOOHGDXWRPDWLFWKHUPRVWDW
7HPSHUDWXUHV EH\RQG WKLV UDQJH FDQ UHVXOW LQ IUXLW GDPDJH VXFK DV VFDOGLQJ DQG
GLVFRORUDWLRQ $IWHU +:7 PDQJRHV DUH K\GURFRROHG IRU  PLQXWHV WKHQ DLUGULHG +:7 DQG
K\GURFRROLQJOHQJWKHQWKHVKHOIOLIHRIPDQJRIRUDPRQWKXQGHUFROGVWRUDJH 3&$55' 
([SRUWHUVWR-DSDQOLNHZLVHVXEMHFWPDQJRIUXLWVWR9+7DIWHU+:7DVWKLVLVUHTXLUHGE\-DSDQ
FRQVLJQHHV7KHGXUDWLRQRI9+7LVDERXWKRXUV

3HUFHSWLRQWRZDUG+:77HFKQRORJ\

2Q WKH ZKROH WKH NH\ LQIRUPDQWV UHSUHVHQWLQJ WKH IRXU FRPSDQLHV DJUHH WKDW +:7 LQFUHDVHG
SURILW DV D UHVXOW RI ORZHU GDPDJH DQG KLJKHU PDUNHW YDOXH IRU IUXLWV 7KH WHFKQRORJ\ ZDV WKXV
SHUFHLYHGDVDGYDQWDJHRXVFRXOGEHWULHGRQVPDOOVFDOHEDVLVFRPSDWLEOHZLWKFXUUHQWSUDFWLFHV
HDV\ WR IROORZ DQG KHDOWK DQG HQYLURQPHQW IULHQGO\  0RVW VSHFLILFDOO\ RQH ., VWURQJO\ DJUHHG
WKDW+:7HQKDQFHGIUXLWTXDOLW\DQGWKHUHIRUHFRPPDQGHGKLJKHUSULFH+HDOVRDJUHHGZLWKWKH
VWDWHPHQWWKDW+:7UHTXLUHVPLQLPDOODERULQYHVWPHQWDQGRWKHUFRVWUHTXLUHPHQWV+HIXUWKHU
H[SODLQHG WKDW LI WKH FRPSDQ\ XVHG PHFKDQL]HG SURFHGXUHVIDFLOLWLHV WKHQ WKH LQYHVWPHQW FRVW
ZRXOGEHUHODWLYHO\KLJKHU
$VWRWKHWULDODELOLW\RIWKHWHFKQRORJ\WKHNH\LQIRUPDQWDJUHHGWKDWWKHWHFKQRORJ\FRXOG
EHDGRSWHGRQDVPDOOVFDOHEDVLVEHFDXVHLWGRHVQRWUHTXLUHFRPSOLFDWHGPDFKLQHVDQGIDFLOLWLHV
WKDWZRXOGQHFHVVLWDWHKLJKHUFDSLWDORXWOD\
+:7 LV OLNHZLVH SHUFHLYHG DV KLJKO\ FRPSDWLEOH ZLWK H[LVWLQJ SUDFWLFHV WR FRQWURO SRVW
KDUYHVW ORVVHV FDXVHG E\ DQWKUDFQRVH DQG VWHPHQG URW  0RUHRYHU WKH ., VWURQJO\ DJUHHG WKDW
LQSXWVQHHGHGDUHUHDGLO\DYDLODEOHIDFLOLWLHVDQGHTXLSPHQWQHHGHGFDQEHORFDOO\PDQXIDFWXUHG
DQGIDEULFDWHGDQGWKHUHLVDYDLODEOHODERUVXSSO\7KHUHVSRQGHQWDOVRDJUHHGWKDW+:7FUHDWHV
DGGLWLRQDOHPSOR\PHQWRSSRUWXQLWLHV
7KH.,IXUWKHUDJUHHGWKDWWKHWHFKQRORJ\LVHDV\WRIROORZDOWKRXJKIDFWRUVVXFKDVIDUP
FRQGLWLRQV HWF KDYH WR EH FRQVLGHUHG ZKHQ DSSO\LQJ WKH WHFKQRORJ\  1R VSHFLDO HTXLSPHQW RU
IDFLOLWLHV DUH OLNHZLVH QHHGHG  ,QWHUHVWLQJO\ WKH UHVSRQGHQW GLG QRW DJUHH WR WKH VWDWHPHQW WKDW
+:7DFWLYLWLHVZHUHQRWWLPHFRQVXPLQJ:KLOHDEDWFKRIPDQJRHVUHTXLUHVQR PRUHWKDQWHQ
PLQXWHVRIGLSSLQJWRILQLVKWKHWRWDODPRXQWRIPDQJRHVIRUH[SRUWWDNHVDORWRIWLPHDQGHIIRUW
FRQVLGHULQJ WKH ELJ YROXPH DQG WKH FDSDFLW\ RI H[LVWLQJ WDQNV  6LPLODUO\ WKH XVHIXOQHVV RU
HIIHFWLYHQHVV RI WKH +:7 LV DIIHFWHG E\ WHPSHUDWXUH DQG FKDQJLQJ ZHDWKHU FRQGLWLRQV  )RU
LQVWDQFHLILWLVUDLQLQJZKHQIUXLWVDUHKDUYHVWHGWKHWHPSHUDWXUHLVUHGXFHGEXWWKHGXUDWLRQIRU
DWWDLQLQJWKHUHTXLUHGWHPSHUDWXUHLVSURORQJHGZKLFKFRXOGDIIHFWIUXLWTXDOLW\
:LWKUHJDUGWRKHDOWKLVVXHVWKH.,KDGD PL[HGSHUFHSWLRQ$OWKRXJKKHFRQVLGHUHGWKDW
+:7GRHVQRWSRVHDQ\KHDOWKULVNVKHTXDOLILHGWKDWLIWKH+:7IDFLOLWLHVDQGHTXLSPHQWZHUH
QRW PHFKDQL]HG ULVNV ZHUH LQHYLWDEOH  +H KRZHYHU SHUFHLYHG +:7 DV HQYLURQPHQW IULHQGO\
EHFDXVH ZDWHU FRXOG EH GLVSRVHG HDVLO\ SUDFWLFHV LQYROYHG ZRXOG QRW GHJUDGH WKH VXUURXQGLQJ
HQYLURQPHQWDQGWKHIDFLOLWLHVDQGHTXLSPHQWZLOOQRWFDXVHDLURUZDWHUSROOXWLRQ
/DERUDQG&RVW5HTXLUHPHQW

:DWHUWDQNVSRZHUHGE\HLWKHUHOHFWULFLW\OLTXHILHGSHWUROHXPJDV /3* RUNHURVHQHDUHWKHRQO\


PDMRU IDFLOLW\ QHHGHG IRU +:7 7KHVH DUH IDEULFDWHG EDVHG RQ VSHFLILFDWLRQV UHTXLUHG E\ WKH
FRPSDQ\ 7ZR FRPSDQLHV KDYH WZR ERLOHUW\SH WDQNV ZLWK D FDSDFLW\ RI DERXW  WRQV SHU GLS
ZKLOHWKHWZRRWKHUVKDYHFDSDFLW\2WKHUPDWHULDOVQHHGHGDUHZDWHUSODVWLFFUDWHVDQGSDOOHWVIRU
GLSSLQJDQGVWDFNLQJ
/DERU DFWLYLWLHV IRU +:7 ZDV WKH VDPH IRU DOO FRPSDQLHV WKDW LV ORDGLQJ XQORDGLQJ
OD\HULQJ GLSSLQJ DQG VWDFNLQJ 6R IDU WKH FRPSDQLHV GLG QRW H[SHULHQFH DQ\ ODERU GLIILFXOW\
SUREOHP $ +:7 ZRUNHU LV SDLG DQ DYHUDJH RI 3 SHU GD\ 7DNLQJ WKH FDVH RI 3UHPLXP
)UXLWVWKH\SD\DWRWDORI3DGD\HTXLYDOHQWWR3IRUODERUHUVZRUNLQJ
VKLIWV RI  KRXUV GXULQJ SHDN PRQWKV  2QH NH\ LQIRUPDQW RQ WKH RWKHU KDQG VDLG WKDW RQ D SHU
NLORJUDPEDVLVWKH\SD\DODERUFRVWRI3SHUNJRIPDQJR IRUERWKSHDNDQGRIISHDN
VHDVRQ
7KH RSHUDWLRQDO FRVWV RQ HOHFWULFLW\ DQG ZDWHU FDQQRW EH DVFHUWDLQHG DV DOO RI WKH .,
SURIHVVHG WKDW VXFK ZHUH OXPSHG ZLWK WKH WRWDO FRQVXPSWLRQ RI WKH ZKROH FRPSDQ\  7ZR
FRPSDQLHVSURYLGHGDQHVWLPDWHRIHOHFWULFLW\DQGZDWHUFRQVXPSWLRQRQDSHUGD\EDVLVZKLOHWKH
RWKHU WZR KDG FRPSXWHG SRZHU DQG ZDWHU FRQVXPSWLRQ RQ D SHU NLORJUDP EDVLV  7KH HVWLPDWHG
GHWDLOVDUHSUHVHQWHGLQ7DEOH

7DEOH+:7RSHUDWLRQDOFRVWRIIRXUFRUSRUDWLRQVLQ0DQLOD 3KLOLSSLQHV

(YHUODVWLQJ
3DUWLFXODU 9DOOH\RI+RSHD 3UHPLXP)UXLWVE 0DEXKD\G
)RRGVF
+:77DQN 3 3 3 3
&UDWH    
(OHFWULFLW\IXHO    
:DWHU    

%DVLVRIFRPSXWDWLRQ
DWDQN XQLWFUDWH SFV#3HD/3*IXHO 3WDQNGD\VZDWHU 3RSHUDWLRQ
+2FKDQJHDIWHUGD\V
EWDQN XQLWVFUDWH SFV#3HDHOHFWULFLW\ 3GD\[GD\V[PR
ZDWHU 3GD\[GD\V[PR
FWDQN XQLWFUDWH SFV#3HDHOHFWULFLW\ 3NJRIPDQJR[WGD\[GD\V[PR
GWDQN XQLWFUDWH SFV#3HDHOHFWULFLW\ 3NJRIPDQJR#NJSV
ZDWHU 3NJRIPDQJR

&21&/86,21

*OHDQLQJIURPWKHDERYHILQGLQJVWKHIROORZLQJFRQFOXVLRQVFDQEHGUDZQ

 7KH +:7 WHFKQRORJ\ KDV EHHQ XVHG E\ H[SRUW DQG SURFHVVLQJ FRUSRUDWLRQV VLQFH WKH
EHJLQQLQJRIWKHLUPDQJRRSHUDWLRQ7KLVZDVLQUHVSRQVHWRH[SRUWUHTXLUHPHQWLPSRVHG
VSHFLILFDOO\E\-DSDQHVHLPSRUWHUV
 +:7 LV VR IDU WKH PRVW HIIHFWLYH TXDUDQWLQH SURFHGXUH LQ  SUHYHQWLQJ DQWKUDFQRVH DQG
VWHPHQGURWRQKDUYHVWHGPDQJRHV
 $VDWHFKQRORJ\+:7LVWHFKQLFDOO\IHDVLEOHRZLQJWRLWV DWWULEXWHV RI EHLQJ UHODWLYHO\
DGYDQWDJHRXV WULDODELOLW\ FRPSDWLELOLW\ HDVH RI DSSOLFDWLRQ DQG KHDOWK DQG
HQYLURQPHQWDOIULHQGOLQHVV
 +:7UHGXFHGDQWKUDFQRVHDQGVWHPHQGURWLQFLGHQFHE\SHUFHQWUHVXOWLQJLQDOPRVWD
KXQGUHGSHUFHQWUHFRYHU\UDWHZKLFKOHDGVWRLQFUHDVHGVDOHVYROXPHDQGLQFRPH
 $OWKRXJKSURYHQHIIHFWLYHDJDLQVWDQWKUDFQRVHDQGVWHPHQGURWWKHDSSOLFDELOLW\RIWKH
WHFKQRORJ\LVOLPLWHGPDLQO\WRH[SRUWHUVDQGSURFHVVRUV7KLVLVEHFDXVHVXFKGLVHDVHV
GRQRWQRUPDOO\VKRZXSZKLOHLQWKHIDUPHU¶VILHOGXQWLOWKHIUXLWVDUHKDUYHVWHGDQGLQ
WKHKDQGVRIPDQJRH[SRUWHUVDQGSURFHVVRUV $OWKRXJKLWFDQDOVREHXVHGE\ IDUPHUV¶
FRRSHUDWLYHLWLVRQO\LQWHUPVRISURYLGLQJ+:7DVDVHUYLFHIDFLOLW\LQWKHILHOGOHYHO

$&.12:/('*0(176

7KH UHVHDUFKHUV ZRXOG OLNH WR DFNQRZOHGJH WKH YDULRXV DVVLVWDQFH JLYHQ E\ VHYHUDO HQWLWLHV WKDW
FRQWULEXWHGWRWKHFRPSOHWLRQRIWKLVVWXG\
7KH 3KLOLSSLQH &RXQFLO IRU $JULFXOWXUH )RUHVWU\ DQG 1DWXUDO 5HVRXUFHV 5HVHDUFK DQG
'HYHORSPHQW 3&$55' IRUWKHILQDQFLDODVVLVWDQFH
9DOOH\RI+RSH3UHPLXP)UXLWV(YHUODVWLQJ,QWHUQDWLRQDODQG0DEXKD\)UXLW3URGXFWV
IRU OHWWLQJ WKHP EH VXEMHFWV RI VWXG\ DQG WKHLU  PDQDJHUV DQG VWDII ZKR VHUYHG DV WKH NH\
LQIRUPDQWV
7KH 'HSDUWPHQW RI $JULFXOWXUH '$  DQG WKH /RFDO *RYHUQPHQW 8QLWV /*8  IRU
DOORZLQJXVWRJDWKHUWKHQHHGHGGDWD

5()(5(1&(6

(2%URZQHWDO)HDVLELOLW\VWXG\RQ/3*IXHOHG+RW:DWHU7UHDWPHQWWR&RQWURO$QWKUDFQRVH
DQG6WHPHQG5RWLQ0DQJR 3&$55'/DJXQD3KLOLSSLQHV 
5'%XJDQLFHWDO'LVHDVH&RQWUROLQ3KLOLSSLQH³&DUDEDR´0DQJRZLWK3UHKDUYHVW%DJJLQJDQG
3RVWKDUYHVW+RW:DWHU7UHDWPHQW$YDLODEOHDWKWWSZZZDFWDKRUWRUJ
5HVWLWXWR-U%XJDQWHHWDO'HWHUPLQDWLRQRIUHDGLQHVVWRIORZHULQWKH&DUDEDR0DQJR
(QKDQFLQJ3URGXFWLYLW\RIWKH3KLOLSSLQH0DQJR,QGXVWU\7HUPLQDO5HSRUW'2673&$55'
3&,(5'83/%
KWWSZZZGVDSLFRPSK
KWWSZZZXSOEHGXSKFDSRVWKDUYHVWEUHDNKWPO
6RUWLQJ +:7 9+7$UHD

$UULYDO )ORDWDWLRQ /RDGLQJ

6RUWLQJ*UDGLQJ +RW:DWHU 3UHKHDW


7UHDWPHQW

:HLJKLQJ )UXLW6HDVRQLQJ
'U\LQJ

9+7
)LOLQJ

&RROLQJ

6KRZHU

3DFNLQJ

)LJXUH+:7DQG9+73URFHVV)ORZ&KDUW DGRSWHGIURP(YHUODVWLQJ)RRGV&R

You might also like