NYAE GROUP INC.

NYAE GROUP INC. IPO - What You Need to Know (Final Guide)

Hey there! Let’s break down NYAE Group’s IPO with fresh info straight from their filings. No jargon, just the key stuff.

1. What does NYAE Group do?

They’re like eBay for art collectors, but fancier. NYAE runs online platforms where people buy/sell collectibles, artwork, and commodities (rare coins, paintings, vintage cars). They also offer:

• Art appraisal services
• Investment education courses
• Storage/maintenance for high-value items
• Software tools for partner e-commerce sites

Big twist: They launched in March 2024 but are growing fast in China and Hong Kong’s booming art market.

2. How do they make money?

Three main ways:

1. Transaction fees (taking a cut when items sell)
2. Subscription software for partner sites
3. Services like storage, maintenance, and marketing

Growth clues:

• Went from $0 to $5.4 million in sales between March-December 2024 🚀
• $2.6 million profit in the same period (rare for a new startup!)
• China’s art e-commerce sector grew 26.8% in 2023
• But… The company didn’t break down what percentage of revenue comes from each source.

3. What will they do with IPO cash?

Your money would help them:

• Build more software tools for art traders (top priority)
• Expand their Global Arts Exchange platform
• Introduce new products (rare stamps, vintage watches)
• Explore "mini-accounts" for casual collectors
• Buy other companies (risky but could speed growth)
• Hire talent in Hong Kong’s competitive job market
• Boost marketing and cover general costs

4. Biggest risks? Don’t skip this!

• Brand new: Launched 3 months ago – no long-term track record.
• China’s legal gray zone:
  • Uses complex contracts to control Chinese subsidiaries. China could crack down and shut them overnight.
  • One subsidiary does marketing surveys on China’s "restricted list" for foreign companies.
  • If China labels them a "stamp/coin trading platform," they need special permits or face shutdown.
• Tax time bomb:
  • China’s tax agency can audit their 2024 tax return for 10 years.
  • Could owe massive back taxes + penalties (none so far, but risk remains).
• Competition: Over 50 rival platforms in China and 10+ in Hong Kong. Giants like Alibaba could crush them.
• Fraud risk: Fake art sales could hurt their reputation.
• Money trapped in China: Profits face strict withdrawal rules (save 10% yearly in a government fund).
• IPO cash stuck in bureaucracy: Moving money from U.S. to China requires approvals that might fail.
• Tiny IPO price: Shares priced at $2.00–$2.20 – unusually low, which often signals higher risk.
• ⚠️ Preliminary filing alert: This IPO isn’t finalized. The SEC hasn’t approved it yet.

5. How do they compare to competitors?

• Niche focus: Cheaper than Sotheby’s, more secure than eBay for high-value items.
• But… Big players like Christie’s or Alibaba could outspend them on tech and marketing.

6. Leadership & Structure

• Experienced team in Chinese tech/e-commerce (no red flags noted).
• Operates through subsidiaries in China/Hong Kong, including Global Arts Exchange (bought in May 2025).

7. IPO Details

• Stock symbol: NYAE (aiming for Nasdaq)
• Shares offered: 770,000 at $2.00–$2.20
• Valuation: ~$29 million at top price – smaller than most tech startups.

Bottom Line:

NYAE is a high-risk, high-reward bet on China’s booming art market. The $5.4 million sales jump and $2.6 million profit in 2024 are impressive, but:

• 🚩 Tiny IPO size and low share price
• 🚩 China’s unpredictable regulations
• 🚩 No user growth stats provided (we don’t know how many people actually use their platforms)

Treat this like a speculative investment – exciting potential, but be prepared for volatility. Always do your own research!

Final note: NYAE’s IPO filing lacks some key details (like revenue breakdowns and user metrics), which might make it harder to evaluate. Proceed with caution. 😊