Based in Hong Kong, Takung Art Company Ltd. provides a secure and easy way for art collectors and investors to acquire shared ownership in Asian and other fine art - including paintings, calligraphies, jewelry and precious gems - and participate in the booming international art market without fear of price manipulation and forgery.
The ability to trade these valuable assets on Takung's proprietary online trading platform has attracted a significant number of fine art investors - including many ordinary people without substantial financial resources. This novel platform significantly expands the number of interactions between sellers and buyers of fine art far beyond those generated by art galleries and auction houses alone.
For providing this unique service, Takung Art Company earns multiple streams of revenue, including listing fees, trading commissions, management fees and authorized agent fees.
Takung's business model is to continually add to its fine art listings by offering collectors units in carefully selected items. First, an artwork - either an individual piece or portfolio of several pieces - is presented to Takung by an authorized agent, who helps get the artwork professionally appraised. After making its own assessment, if Takung believes it is clearly marketable and will likely appreciate near-term, the company will - after receiving all offering documents - list the artwork on its site and divide it into equal ownership units based on its appraised value. For this listing the artwork's owner or the offering agent pay Takung a one-time offering fee of 22.5 to 48 percent of the artwork's offering price and a refundable listing deposit of roughly 20 percent of the offering price. In addition, Takung charges trading commissions for the online purchase and sale of artwork units, as well as management fees covering the insurance, storage, and transportation for artwork.
Traders utilize the Takung platform through a client app available for download from the company's commercial website. Currently, most of our traders are located in mainland China. To expand our number of traders, Takung has employed various online promotion strategies and also entered into an agreement with an arts marketing agency that has a broad network of both amateur and professional art traders and dealers. In July 2016, the company initiated its first major expansion of operations outside of China when it introduced the trading platform to residents of Russia, Mongolia, Australia and New Zealand.
As of September 30, 2016, Takung had 157 art listings trading on it's platform, with an aggregate initial listing value of US$38.61 million. Most of the listed pieces and portfolios have traded actively and shown significant appreciation since their introduction on the site. The purchase and sale of ownership units of Takung’s artwork generated a total transaction value of US$4.91 billion during the first nine months of calendar/fiscal 2016 versus US$1.28 billion transacted in the comparable year-ago period.
Each of our artwork listings will remain intact for ten years, after which it will be sold and the proceeds paid to the unit holders.
Takung was incorporated in late 2012 and went public in October 2014.
Chairman and Chief Executive Officer
Mr. Xiao has been in the art investment and consulting industry since 2008 and is familiar with all forms of art dealings as well as trading models and risks in the Chinese art market. He joined Takung Art Company to serve as CEO in January 2013.
From March 2009 to January 2013, Mr. Xiao served as a general manager at Hangzhou LuxTimes Culture and Art Co., Ltd. in China. From December 2008 to March 2009, he worked as a director of FAI Electronics Co., Ltd. and focused on marketing development. Mr. Xiao graduated in July 1998 from the University of Tianjin in China with a bachelor’s degree in mechanical engineering.
CHUN HIN LESLIE CHOW
Chief Financial Officer
Mr. Chow has extensive experience in accounting and the finance industry. Most recently, he served as non-executive director for two Hong Kong stock exchange-listed companies, PPS International (Holdings) Limited and Golden Power Group Holdings Limited. From 2009 through 2015, he held ascending positions culminating in managing director and partner at Albeck Financial Services, a financial consulting firm in Houston, Texas. For the previous three and a half years, he worked with Deloitte & Touche LLP, last serving as a senior auditor. Mr. Chow graduated with honors from the University of California, Santa Barbara, and is a certified public accountant in the United States.
General Manager, Takung (Shanghai) Co., Ltd.
Mr. Li has worked in the Chinese art industry since 2009 and has extensive knowledge of storage, appraisal and other procedures related to the trading and management of artworks. He joined Takung on March 1, 2015 as a vice president of Hong Kong Takung responsible for the listing process, and on July 28 was appointed general manager of Shanghai Takung.
From 2009 to 2014, Mr. Li served as the assistant general manager of Tianjin Culture and Artwork Exchange Co., Ltd. From 2006 to 2008, he was engaged in customer service related work at WuXi AppTec (NYSE:WX). Mr. Li graduated in 2006 from Zhejiang University of Technology with a bachelor of science degree, and completed postgraduate studies in industrial economics at Nankai University in 2013.
Vice President of Information Technology
Mr. Zheng has over five years software project management experience, including such platforms such as JAVA & C language development, spring MVC2.0, spring MVC3.0, IBATIS, and Velocity. He also has eight years experience working under a UNIX & LINUX environment, focusing on AIX and SUSE systems. From 2008 to 2010, Mr. Zheng worked as a project manager of software engineering at Beijing Qiantang Hengsheng Science & Technology Co., Ltd., with a focus in maintaining and developing banking systems. For the previous two years he worked as a software engineer in Tianjin City Card Co., Ltd., involved in business development and implementation of clearing center and system processes. In 2006, Mr. Zheng graduated from Tianjin Polytechnic University in China with a Bachelor degree of Computer Science and Technology, and in 2012 was awarded a Master degree of business administration from Tianjin University in China.