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Caixun Report - Ming-Chi Kuo: "Everyone can criticize me for my analysis mistakes and inaccurate predictions. Caixun can also criticize me and there is no issue here. Because it is within the scope of the professional field, I still have a lot of shortcomings to improve."

"The Financial Supervisory Commission's (FSC's) answer is obviously very flat, but some media have used sensational headlines to establish a confrontational image between me and Taiwan's National Security and the FSC because of my status as a company in Hong Kong. I'm Quite puzzled."

Ming-Chi Kuo, who is widely known as the "strongest Apple analyst on the planet", has once again sparked heated discussions in the industry.  At the end of July, Ming-Chi Kuo published several articles related to the optical industry that pointed out the challenges facing Yujingguang, which attracted great attention from the market.

Immediately, on August 9, some media asked Taiwan's Securities and Futures Bureau, "Can overseas securities analysts affect the stock prices of Taiwan's listed OTC companies?" If the relevant stock price is abnormally affected or involves illegal acts, it will be dealt with according to law.”

Unexpectedly, the media trend turned into “the Chinese Communist Party (CCP) launching an information war to affect the stock market, which may cause national security problems” and “the Financial Supervisory Commission will take the initiative to attack and keep an eye on Ming-Chi Kuo.”

To the market, Ming-Chi Kuo" has always been a very mysterious individual. The public photos have never been updated, and he has never attended public events. This makes him an "atypical securities analyst" chased by the market. "The market is chasing his remarks, and he rarely deals with the companies he mentions in his reports. The outside world not only thinks that he is very sloppy, but also thinks that he's leading the way in stock speculation."

In response, Kuo stated that his independent research can create some highlights for what I am writing about, and can also see the same thing that Sell Side analysts see but from a different angle. Independent research is more difficult, and more are going in that direction delivering higher value.

This is one of the reasons why Ming-Chi Kuo decided to switch from KGI Investments to Hong Kong Tianfeng International Securities in 2018. Ming-Chi Kuo revealed that since 2016, he found that Apple (Apple) has clearly begun to tend to the Chinese supply chain, mainly to reduce costs and diversify suppliers; at that time, the "Wall Street Journal" also broke the news that Apple CEO Cook also specially visited Beijing, In exchange for the condition that Apple can develop freely in the Chinese market, "so going to China to directly contact the supply chain will be more helpful for my report."

In the first month of Ming-Chi Kuo's arrival in Hong Kong Tianfeng, he flew more than 20 times to various places, and even Japanese and Korean manufacturers also visited on the spot. From Taiwan to Hong Kong, Ming-Chi Kuo said that it was an international first-level battlefield, the competition was relatively fierce, and his vision had grown a lot.

Of course, Ming-Chi Kuo is not without mistakes. In August last year, Ming-Chi Kuo predicted that the iPhone 13, which will be launched this year, will be equipped with low-orbit satellite technology, allowing users to transmit messages and make calls without 4G or 5G. Once the prediction came out, Globelstar's stock price rose 68%. "However, this prediction was wrong. In the end, Apple did not open this function."

"My research can be publicly evaluated. If the prediction error is criticized, I will accept it. But when it comes to malicious allegations, I will no longer sit idly by as in the past. I believe that the wise public will have their own evaluation." Ming-Chi Kuo hopes Return to the original intention of industrial research.

Our report is based on translations of reports from Taiwan's United Daily News (UDN) and the financial publication Caixun.