Facts:

SingTech Solutions (STS) is a Singapore-listed AI software company specializing in financial services automation. Their flagship product automates KYC/AML processes for banks. Annual revenue: USD 200M, market cap: USD 1.2B.

STS is exploring expansion into the Greater China market where two opportunities have emerged:

Opportunity 1:
DragonTech (DT) - A profitable Chinese fintech company with:

• Strong domestic banking relationships

• Required PRC licenses

• 60% market share in Tier 2/3 cities

• Valued at USD 800M

• Currently 51% owned by Chinese state-owned enterprise

• Heavy regulatory oversight

• Limited international presence

Opportunity 2:
HK Innovation (HKI) - A Hong Kong-based startup with:

• Cutting-edge blockchain technology

• Young but talented technical team

• No profit yet but growing revenue

• USD 50M in VC funding

• Key patents pending

• Some overlap with STS's technology

• Limited market penetration

• Burn rate of USD 2M monthly

Question:

What transaction structure would you recommend for each opportunity? Justify your answer considering:

• Regulatory constraints

• Commercial objectives

• Risk management

• Cultural factors

• Financial implications