PHI Group Inc (PHIL)

[gemmerling]

01/27/2022 - Conference Call transcript

Transcribed by msb341-Lady Di and VRNAQLR

Ladies and Gentlemen, thank you for joining our conference call today. I notice some of you are still logging in so probably we wait for a couple more minutes and then we’ll start. Greetings from Turkey, from Istanbul. My trip was somewhat of a hectic thing but thank God I arrived safely. Initially the flights were canceled because of the blizzard, I mean snowstorm, and I had to book new flights and stopover in Frankfurt. When I got to Turkey airport there was a big snow, no gates available, so I had to wait on the runway for many, many hours. The driver came to pick me up and waited for 4 hours and couldn't find me, so he left but I got my way to the hotel. So, everything is OK I’m safe and healthy and working hard here. So, I want to give you an update today. I think we can start now.

First, again thank you all of you shareholders and maybe some potential new investors who are joining. Welcome all of you - old long-term shareholders, new shareholders, investors, and people who are newly interested in our company as well. Before we start, you know the drill, we need to go through the safe harbor statement caveat and all that stuff, because we discuss things that will pertain alot to the future and of course things that are happening now at the present but also things in the future as well.

So, you know things may not work out the way we wished or we aspire to see happen because of known and unknown factors, uncertainties, and other things that might cause the result and performance and achievement of the company and our subsidiaries to be much, much different from those implied or expressed in our forward-looking statements. Please be careful and mindful especially, I have repeated [many] times and every time, I believe, when we have a conference call I say, “don't put all your eggs in a basket, especially in a micro- or nano-cap company like PHIL.” There may be huge potential, but [there] can be a lot of risk.

So, if it's not appropriate for you, don't get involved and don't blame yourself. I hate to see you lose your money just by putting all your money into one basket and from the background of an investment advisor/broker dealer, the responsibility is always here with us. We don't want to mislead you, we don't want to tell you something “this is the only thing, the most exciting thing in the universe.” No, it is not. But we have a lot of potential. So, if you don't like the company you can sell, run away, buy something else. Don't put money into PHIL.

Please be careful. I want to say over and over and over again because some of you when things don't work out for you, you come back and say, “Henry you lie!” Things can be delayed, you know. Things [like] even the telescope, it took like 10, 15, 20, 25 years. It doesn't happen overnight, so please keep that in mind and your investment circumstances and risk tolerance may be different from others. Some of you may want to come in to be a flipper, you want to buy and sell right away. Others want to stay long term. You cannot ask me, “should I buy or should I sell.” I cannot tell the answer to that question to you individually, because each of your investment situations, circumstances, financial requirements, future planning, risk tolerance are different. With that being said, there is great potential ahead but also a lot of risk so please keep that in mind and we’ll move forward.

Let me see if I can just [manually control the slide deck]
You know the background the company, PHI group. [We] used to be Nevada corporation but now we are domiciled out in Wyoming, symbol PHIL. It's on the OTC market. We are fully reporting with the SEC. We have a lot of shares authorized, 60 billion shares. We have issued about 28.7 almost 29 billion shares with 600,000 shares of preferred stock, non-convertible. Our corporate strategy: we build and deploy valuable resources with distinctive competitive advantages.

We participate and compete in attractive businesses that have large growing market potential and we want to create long term value and provide points of asset for our investors through capital appreciation or sometimes we may sell a unit or spin off of our business units like we did in the past. Our scope right now: we have the Luxembourg Bank funds and we have been developing and building the Asia diamond exchange in Vietnam. We also have advisory and consulting services.

We involve ourselves in mergers and acquisitions - it can be as an advisor but also can be as a principle like in the case of Five Grain acquisition of the liquor beverage company in China or KOTA energy and KOTA construction, two companies that belong to the same family in the solar energy business and others. And invest in special situations like cryptocurrency and blockchain crypto technologies like CO2-1-0 Carbon Corp. Those are some of the currently active undertakings we are involved with.

Then we have a number of subsidiaries, bank funds, advisory services, diamond exchange, PHI Investment and Development company, American Pacific resources - we still have the mining claims in Oregon. We will be working fully develop those as well. A company that used to be called American Pacific plastics we have changed the name to be Vinafilms International Inc. It is the holding company for the acquisition of the Vietnam-based company, but there's a new twist to it.

We were hoping to announce that news this week but because of my travel and other things, we will do that next week instead. And the PHIVITAE Healthcare, we do have some program going on with the company in Vietnam. We do a business cooperation with them, joint venture with them to develop that part of business as well.

And then Empire Spirits, [which] used to be called Provimex. [It] used to be a subsidiary of PHIL way, way back when we did import and export between Asia and the US and then it changed the name a couple times in some effort to merge with some Vietnamese company to go public, but then things didn't work out. We still have that subsidiary. The share dividends have been distributed to shareholders way back at that time, but now with the acquisition of the Five Grain, we’ll use that entity and will file form 10 for the company to become public on its own when it's ready. We believe with the acquisition and the growth of Five Grain, this subsidiary can be very, very substantial.

And now the recent CO2-1-0 Carbon Corporation, which is involved in the carbon credit or carbon emission mitigation program headed by Mr Choky, our colleagues in Asia and Indonesia in the moment. Those are some of the most active subsidiaries of the company, others are not active quite active yet but there'll be a point in time when we'll come to it’s turn. The Luxembourg bank fund is established as a reserve alternative investment fund and it's been established.

We expect to have the first closing within this quarter going forward. So, we have more news to share on that and we have recently put together a very, very comprehensive report regarding the diamond industry and the ADE to be established in Vietnam and we will share that information at another time, not only with our shareholders but also with the international forum when we do the international press conference in Vietnam hopefully in March.

And the Philux global fund will initially focus on real estate development especially with the, what we call in Chu Lai, the Chu Lai multiple commodities center which is similar to the DMCC Dubai multiple commodity center. It has a center originally anchor like in Dubai with the diamond exchange Dubai diamond exchange and then other components follow after that something we will do in Vietnam with the, we call CMCC, the Chu Lai Multiple Commodities Center. It's very, very interesting, very exciting thing and we will share it in detail when the time comes.

But today, actually, I want to give a very quick overview so some of you are new can become familiar with what PHIL is all about. It is not just one thing, we have multiple things going on.

Today in particular we want to update on four things. Number one, the CMC Holdings PR correction. Which we put out a press release the previous day, but today we had a correction on it. The reason being in our press release we mention the potential IPO target for CMC holdings to be $50 billion by the year 2027, but that's not what the CMC Holding management put out in their discussion and presentation and also coverage on multiple news outlets.

So, what it is is Mr Tran Nam Chung, who is the CEO of CMC Holding at the co-founder event he did a very comprehensive and very thorough job presenting the business model, the ecosystem, and also cited some example of startup companies which just came into the public arena quite recently but you know now these three companies particularly VNPay and Momo and VNG all these exceeded $1 billion valuation. Mr Chung and his team believe that the business model for CMC Holding is a very, very robust and it covers a very well organized coordinated system that can deliver a lot of value.

We have invited Mr Chung and his team to share with us February 10th his business model and how they think they can reach the mark of $300 billion by the year 2027. So it's not a PHIL announcement. It's not our claim, but it's CMC Holdings claim. So please keep that in mind [rather] then say, “oh Henry, yeah you're dreaming.” Yes, I like to dream that way too but we need to listen to the original speakers you know about what it is. Based on what they believe it is, it's a road map of seven investment rounds: the co-founder round, and Angel, Series A,B,C, PE, investment banker, and the IPO target of $300 billion by the year 2027. So please join us on February 10th to hear the complete story and presentation from the management of CMC Holding.

Now I want to talk about Turkey and Dubai trips. Some of you asked me “why are you going to Turkey?” “What for?” Of course for business for PHIL benefit and planning and all that stuff. We have not put out press release or any in particular. We have filed a number of 8-K’s regarding loan arrangement with different groups in the Middle East in Europe and so on. Up to now we have discussed and got indication of interest and commitment for a total of $6.2 billion altogether.

The trip to Turkey has to do with $200 million out of that total. I arrived yesterday and today was able to have several very, very productive meetings and started doing the paperwork for the SPV the special purpose vehicle for that financing. I hope to complete the rest of the paperwork and procedure tomorrow.

Then I will fly to Dubai to work with the $1.5B loan arrangement. Also paperwork to do that. But Unfortunately, the principal of the group has been sick and he’s still in Saudi Arabia at the moment. Hopefully he can come back to Dubai by next Monday.

So, I have to see how things work out; but if not, then I will have to return to do that. But the main purpose this time is for the $200 million with the SPV in Turkey and then the $1.5B. I hope to have more news to share after the trip and hopefully we can have something to celebrate.

But if it's not done yet, we have to work on it until it's done. I don't know how much of the total $6.2 billion we can get, and some of you ask, “PHI group has nothing, no assets, nothing! How come people can invest that kind of money?” Actually, what we have is quite unique, quite different. CMCC, the Asia diamond exchange. It is a huge undertaking. It would take billions of dollars, it’s not just $1billion not $2billion.

It’s a lot more than that so people know that we are embarking on something that is unique that is one of its kind. No one else is doing this project, this undertaking for Asia. We are so much blessed, so fortunate to have the support of all around, multiple countries, high level people, experts in the industry, key players, you know all kinds of stuff it's just not one single thing.

So I cannot take credit for it, I am nobody but thanks to the help and to support, the contribution of people around, I mean all around the globe that we've been able to put this together. So that's why I'm very excited about this opportunity and we believe we're able to get the kind of funding we need in order to accomplish our big goals.

I will share with you about the big goals a little bit later before we end this conversation. The Vinafilms and KOTA transaction, as mentioned, we will not be able to announce the new development for Vinafilms yet but right now I wouldn't say 100% because every time I say 100% we do something you know something is missing and we gotta do it, I hate that you know every time I announce something and it comes back to bite me and everybody “Henry, yeah you said that, you didn’t do it!” Yeah, I said well let's say 99.9% that we have Vinafilms announcement and KOTA transaction announcement next week and it will be very very very exciting and when you see it.

[Remainder is non-proofread Dictation of BHAG and Noah story with short wrap up at the end]

Fourthly I want to share with you something and from the bottom of my heart some of you may have heard the term behag behag goes you know he went way back in like the 1990s it's Jim Collins and other another professor I believe Jerry Polish yeah from Stanford came out with the book called bill to laugh and another book from a good to great and they mentioned about the big hack goes the girls that are bake Harry audacious Big hairy or they should goes it's not far it's very scary you know it's sometimes people when think about this or it's unbelievable or it's it's not doable and then it's audition.

It's bold you know courageous and we follow that kind of marvel tomorrow that kind of thinking we take and goals that are big hairy and audacious when I doing the little things went to the real real big things that we have great impact if we win we win back if we lose we buy the bullet we say well we have we we try you know we're not doing the little things so we are not a regular normal audition company and that's why I was thinking sometime it's different and sometimes our path of execution is different but we do undertake big hairy or they should goals.

And in order to accomplish those goals we have to take big hairy audacious and beneficial action plan that's my term to be the the behalf is is Jim call in the behalf is mine I said well it has to be big hairy audacious but it has to be beneficial has to be good has to be good for everybody for all shareholders for all the stakeholders it's just not fun for one group of people it's just not not for management it's for everyone so that's our plan and sometimes you know the big hairy audacious beneficial things take time to accomplish.

It cannot be done overnight and those of you who know the Bible and read the story about Noah building the ark how you know how long it took him almost probably 100 years and every day it never rains nothing you know this guy is always clear no clouds nothing no rain sign nothing if you do it people hey know you're crazy you're being in it in ark in a in a in a dry land with this kind of weather you keep doing it then But he kept doing it.

He had a go he had a plan he had a purpose and big ghost take big efforts long ago take longer time it doesn't happen overnight and what we are doing does not happen overnight ladies and gentlemen so I tell you again if this is not the investment for you please don't participate because you may become disappointed along the road you may want to see the start rise in price in a few days so you can flip and get some gain out of it there's nothing wrong with that if that's what you want to do that's fine too.

But those of you who want to get into this this kind of our company please keep that in mind so please don't free discourage even though sometimes it did get to think Adelaide and we we take the action plan that can be scary but but it's got to be courageous you know Bo we just cannot do it with the frequent heart.

You know that's why I usually tell people you know this is not not for everyone and it has to be has to be good for everybody not just one group of people not just the stakeholders not just the shareholders alone it's you know for employees for society for everybody all right and we believe the things we're doing we have major impact long term and the way I believe it you know sometimes I think you know this night about the money.

It's not about the business you know it's something bigger than that like we're trying to accomplish and I remember the story that Rick Warren mentioned about people shut out to do things sometimes you know people initially they have a dream OK and then then make a decision.

The first day is a dream second day your decision but then the third is I run into delays things do not happen right away and delays run into another day its difficulties and it's not easy and the difficulty comes from critics people say oh you cannot do it and sometimes circumstances around you maybe all you know make mixed up it's not no more you know country what you have set out to do and not the same thing and then they fakulty delays.

Worse sometimes you even run into dead ends you have seen no way out oh this is it I'm gonna die no but the good thing is you know I love this verse from the Bible and some of you you know you have not read the Bible you never know it and you know but I encourage that you read this verse from Romans chapter 8 with 28 for all things work together for good to those who love God who I called according to his purpose.

You know we live with a bigger purpose and sometimes if we have the right purpose things may get delayed we may run into difficulties we may get critics we might make it all kind of of a counter your energy counterforce that goes against us but there will be a time when we will we can delete declare the victory you know just like no all those years building.

They are you know nobody few people thought he would accomplish it and some people look at the life of Mandela I like president of South Africa for for example sometime I was thinking about his life saying all those in prison people go this is toast this way you will end up being dead in the prison or will or will not get out of this place you know but who knew at that time that he would become president of South Africa you know so the reason I'm telling you is all things because I need this pep talk for myself as well.

Sometimes I say well forget it then with all the criticisms of I just throw in the towel forget it I do something that I I love to do more than business but ladies and gentlemen I have a commitment I must finish this task in spite of all the difficulties it's by a different all the delays in spite of all the criticism in spite of all the hardship I'm committed to finishing up the job.

Not only for myself but for all of you who trust and believe in the cause of PS I we will make it we will leave the things that will make our shareholders happy and will be beneficial for our society as well I want to sum up this with Todd and that is I want to say I appreciate all of you our shareholders.

I thank you for your support and also you don't know but I also thank you for your criticism as well because by seeing what you you have to say I said well I need to do better and you know if we keep doing the same thing we cannot expect to see difficult results so we'll we'll make some very big and bold and hairy audacious but beneficial action plans in the days to come so I hope to be able to share with you some of the very boat Harry big and beneficial beneficial action items in the very very near future here and thank you you know I'm wearing this hat here.

PSI group thank you shareholder made this hat two of them are sent to me Henry this is for you this is for how simple for our company thank you so much I don't want to mention the name but you know I I want to say thank you so much a lot of you out there rooting for the company supporting company and we are in this we went together.

Again thank you very much for taking your time to have the update today the main thing I want to share today about the CMC PR correction but also give you an update on the 2:00 PM Dubai trips and what to expect with window films and Korea transaction next week and then the behalf action plans will be following to make this happen thank you so much for your time thank you so much for your loyalty for your support thank you so much even for your criticism as well I take everything with a open heart with love and appreciation thank you all May God bless all of us God bless you and God Bless America and everyone of you thank you bye bye

Source: https://www.youtube.com/watch?v=njEJa-Zhwyc