The Company is formed to seek acquisition opportunities in the social commerce sector which can be developed as an e-commerce business.
The Directors are particularly seeking opportunities in data mining, artificial intelligence technologies and social and online media such as instant messaging platforms. Together, the Directors have many years of business experience operating in the e-commerce sector, particularly in the areas of online marketing and consumer interactions through the integration of social media platforms, electronic communication and artificial intelligence technologies into e-commerce businesses. They have established a network of contacts internationally within the sector. The Directors also have extensive experience in corporate acquisitions and capital markets. The Company will utilise independent third parties to provide expert advice where necessary.
Alchemist Codes is a specialist information technology software designer and developer focused on designing and developing comprehensive information technology solutions for clients in the e-commerce sector. In 2018 Alchemist Codes acquired the off-the-shelf messaging application development software, Contusfly. Alchemist Codes used Contusfly as the foundational basis to design and develops a white label chat messaging application for corporate users. Alchemist Codes added extensive in-house coding to the foundation with enhanced encryption and regional specific features accessible across a range of web and mobile devices, giving corporate clients and users a convenient and secure messaging application. Alongside this, Alchemist Codes identified significant growth opportunities in the Malaysian e-commerce and cashback market and the potential for the development and implementation of big data analytics, data mining and Artificial Intelligence (“AI”) in the sector. Alchemist Codes has developed its own e-commerce web and mobile application called OCTAPLUS (“OCTAPLUS”).
Having recognised that online retailers needed to acquire and retain shoppers who were increasingly shifting towards making purchase via their mobile devices, Alchemist Codes focused on developing OCTAPLUS which would serve both the retailer in terms of acquiring the maximum number of users and collecting and analysing user patterns and data, but also on providing users with a convenient means of shopping via their mobile devices and rewarding them for their purchases.
Alchemist Codes believes that it has the following key strengths:
- ● Key merchant deals: OCTAPLUS is positioned to take advantage in the growth of the e-commerce sector in Malaysia due to the relationships Alchemist Codes has with many key online retailers.
- ● Experienced management team: Alchemist Codes has an experienced management team, with expertise in web, mobile, software development and e-commerce and retail. They have held executive roles for AIO Synergy Holdings Berhad, MM Intelligence Technology Sdn Bhd, eBay South China and CPCNet North and East China.
- ● Scalability: both the messaging application and OCTAPLUS have been developed so as to be easily scalable supporting the needs of customers.
- ● Platform: Alchemist Codes has invested in the messaging application and OCTAPLUS to ensure that it maintains a bug free and user friendly interface that allows it to maintain competitiveness against alternative application offerings available in the market.
- ● Market Leader: Alchemist Codes believes that OCTAPLUS has the ability to become a market leader in the Malaysian e-commerce space due to early mover advantage.
The Company’s strategy
The Directors plan to identify a suitable e-commerce business and develop the business with a presence not only in Europe, but also in the US and Asia. The Directors have extensive contacts in Asia which will benefit the target business’ global expansion strategy.
Their focus is particularly on social commerce businesses, such as social media platforms which have the potential of providing a strong e-commerce sales channel. Social commerce is the use of social networks in the context of e-commerce transactions. When assessing a social commerce business, the Directors will consider opportunities to focus on the membership base and members’ data to direct consumers towards new products or services.
The Company’s efforts in identifying a prospective target company or business will not be limited to a particular geographic region, although the Company expects that it will initially focus on acquiring companies or businesses in Europe, and will also consider businesses in Asia.
The acquisition strategy of the Company will be focussed towards the identification and acquisition of companies or businesses which:
• are run by a management team with a strong track record of generating growth for shareholders and a proven experienced business record; and/or
• have attractive commercial prospects within the e-commerce or social marketing sectors in general; and/or
• have existing members or consumers; and/or
• are within lower risk jurisdictions, within countries with a strong focus on protecting investors' interests, low sovereign risk and those that encourage and incentivise investment; and/or
• have revenues which offer the potential for near-term positive cash flows; and/or
• can be funded adequately to be capable of delivery of a realistic plan of achieving credible milestones and significant growth opportunities for Shareholders.
Alchemist Codes’ strategy is to capitalise on the significant mobile content market opportunity as consumers are increasingly using mobile content to enrich their interpersonal relationships and social experiences. Alchemist Codes believes increased data volume through OCTAPLUS will offer significant opportunity to develop and grow its digital advertising business and revenue, both in Malaysia and globally.
Alchemist Codes believes the focus on developing 5G networks, both in Malaysia and globally, will benefit OCTAPLUS. Widespread implementation of 5G networks will increase bandwidth capabilities opening up OCTAPLUS for development of new features and functionality. Advances in smart device technology and portability (mobiles and tablets) continue to increase the accessibility and exposure of OCTAPLUS with an always connected culture rapidly developing enabling users to access OCTAPLUS on any device at any time anywhere.
Alchemist Codes’ growth plan is to:
- • Increase user stickiness and grow user base: Alchemist Codes will aim to increase user stickiness and grow its registered user base by focusing on core marketing campaigns to increase recognition of OCTAPLUS domestically and internationally.
- • Partner with retailers who are forward thinking: Alchemist Codes will seek to partner with retailers who recognise the rapidly changing nature of e-commerce domestically and are prepared to change and invest.
- • Provide a package of support services to retailers: OCTAPLUS is designed to simplify and reward the mobile and online shopping experience of its users. Alchemist Codes’ aim is to provide retailers using OCTAPLUS with levels of support and data analytics not offered by the limited number of competitors operating in the space.
- • Extend partnerships with social media marketers: Alchemist Codes is aiming to greatly increase the number of social media influencers on OCTAPLUS to increase the sphere of influencer with target users.
- • Roll-out existing and new retailers: Alchemist Codes currently has a small number of retailers on OCTAPLUS in order to maintain early mover advantage, Alchemist Codes intends to rapidly grow the number of retailers on the application to ensure high levels of user engagement and satisfaction.
- • Diversify product offering: Alchemist Codes intends to expand the product range on OCTAPLUS beyond current offering of retail fashion and beauty products into other fast-moving consumer goods categories including electronics.
- • Diversify beyond demographics: Alchemist Codes recognises the possibility of new opportunities for OCTAPLUS in terms of geographic markets. Alchemist Codes anticipates that as its domestic user base grows it will target geographic locations with high levels of young Malaysian population and large Asia expat communities, such as the UK and Europe.
- • Target in-and out-bound tourism: with business and leisure travel between European and Asian countries continuing to grow, Alchemist Codes intends to develop OCTAPLUS to target both in-bound and out-bound tourist and business economy between UK and South East Asian countries.
- • Commitment to research and development (R&D): Alchemist Codes intends to conduct ongoing R&D into new technologies and innovations related to data mining, processing and AI for future implementation into OCTAPLUS. Alchemistic Codes believes that such investment increases the quality of analysis and data insights that can be extracted from OCTAPLUS benefiting both the user and retailer. Specific areas of focus may include data mining techniques such as pattern tracking, classifications, associations, outlier detection, clustering, regression and prediction.
Alchemist Codes believes that the two main hurdles that may limit the growth of OCTAPLUS are associated with growing the user base of OCTAPLUS and attracting a sufficient number of retailers onto OCTAPLUS.
In addition to focusing on growing OCTAPLUS, Alchemist Codes intends to grow its software development, mobile and web application development and chat application development through:
- • Identification of new contract and tenders: Alchemist Codes will continue to search for new opportunities and clients in relation to the chat application development.
- • Develop new product offerings: Alchemist Codes has identified several complementary products for design and development such as a chatbot system to complement the existing messaging application. As the current e-commerce market grows, Alchemist Codes believes that chatbots are increasingly necessary to keep up with the request and queries of consumers on a 24-7 basis. Alchemist Codes believes that chatbots provide a considerably more cost-effective method of customer servicing than the traditional human customer service team.
- • International expansion: Alchemist Codes believes that a potential market exists for a secured internal messaging application for Asian companies based in the UK. Alchemist Codes will seek to work with subsidiaries of large Asian international companies with operations in the UK to develop secure internal messaging applications based on Alchemist Codes existing offering. Alchemist Codes believes that its messaging application is better served in terms of language, security, privacy and regional user habits than those currently available to Asian companies in the UK.