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SEC flags ‘Elite’ group offering allowance and insurance cover

THE Securities and Exchange Commission (SEC) has flagged another illegal investing group that is luring the public by offering weekly allowances and an insurance coverage.

The corporate regulator posted an advisory on its website Thursday against Elite Entrep Blue Print/Elite Entrepreneur Blue Print/EEBP. It said it operates on Facebook and invites people to invest a P115,000 capital in the firm.

But the SEC said EEBP is not authorized to solicit investments, as it does not have the required registration and license from the commission to operate such business.

“[T]he public is hereby advised to stop investing in the investment scheme being offered by the said entity,” it said.

The SEC likened EEBP’s operations to Teachers Financial Coaching Program/Teachers Financial Freedom Program/Elite Teachers Financial Program/Teachers Financial Program, another investment group that it said was operating illegally.

EEBP invites the public to invest P115,000 in exchange of P11,500-worth of Royale products. By selling the products and recruiting more members, the investors may be able to get their returns.

A weekly income of P5,000 to P50,000 and a P1-million insurance coverage in Bank of the Philippine Islands is also offered to investors as some of the “benefits” in becoming a member of EEBP.

The SEC said those that acted as salesmen, brokers, dealers of agents for the group may be fined up to P5 million or imprisoned for 21 years, or both, as penalty for violation of the Securities Regulation Code (SRC).

Section 28 of the SRC require persons engaging in the buying and selling of securities to secure a registration with the SEC.

The SEC said it will also give the names of those involved in EEBP to the Bureau of Internal Revenue for appropriate penalties and tax assessment. — Denise A. Valdez

Yo! DJ Hyo

By Cecille Santillan-Visto

Show Review
DJ Hyo: The Exclusive DJ Set
Feb. 8
House Manila, Resorts World Manila

IT HAS always been the dilemma of Korean pop stars: How they will transition from K-pop superstardom to a celebrity life that is less frenzied but equally glamorous?

Many have slowly moved away from the limelight towards family life with the likes of Wonders Girls’ Sunye choosing to settle down long after the popularity of “Nobody” died down. Others go into business — Hyorin of the defunct Sistar started her own music label, while Brown Eyed Girls’ Narsha launched her own clothing line. Though still very active, ex-2NE1 member Sandara Park has ventured into hosting and, in 2016, was named as the Public Affairs Manager at YG Entertainment, one of the biggest talent agencies in Korea.

But Girls Generation member Kim Hyoyeon felt the need to be a bit, well, different.

While still immersed in music, the 30-year-old Hyoyeon has fashioned a persona that deviates from the girl-next-door image that was tailor-fit for the members of Sonyeo Sidae (SNSD), the Korean translation of Girls Generation.

The last time that she was here in the Philippines with the nine-member GG was in 2015 — they were among the first foreign acts to perform at the then newly opened Philippine Arena. The group, which was launched in 2007, has since lost some members and has gone into semi-hiatus. Hyoyeon returned to Manila nearly five years later — alone and bringing with her a kind of entertainment different from what the fans are used to.

As a solo artist, Hyoyeon — now known as DJ Hyo — has released several singles such as “Sober,” “Punk Right Now,” and “Badster,” a psychedelic piece which she co-wrote and co-produced. She performed all these during her exclusive DJ set at Resorts World Manila’s House Manila earlier this month.

The club was teeming with Girls Generation fans, known as Sones, who came in full force and armed with their pink GG light sticks.

The show kicked off at around 10 p.m. and a number of celebrities were in attendance. Barely three weeks from the announcement of their breakup, James Reid and his ex-girlfriend apparently set aside any possible disagreements to see DJ Hyo at the event.

To drum up excitement, there were a number of front acts before DJ Hyo finally took the stage. Angelo G, Lox, and Nix Damn P were the curtain-raisers and provided house music for two hours. A DJ at Wave 89.1 FM, Angelo G has his own radio show, The Vibe, and plays at various clubs. Lox, on the other hand, was featured in the track “Don’t You Forget” along with Mr. Reid and Narez. Nix Damn P, meanwhile, is a household name in the local DJ and clubbing scene and has collaborated with various DJs and artists throughout his career.

With more than three years of experience as a solo artist, DJ Hyo expertly worked the crowd, craftly weaving her own music with hits of Girls Generation, which the audience apparently enjoyed. She also played her other tracks such as “Wannabe” and “Mystery” — dancing in between mainly for the benefit of the fans. Though rather conservatively dressed in a green ensemble layered with a floral polo with subdued makeup, DJ Hyo still exuded the K-pop superstar vibe. As she is still a member of SNSD’s sub-unit, Oh! GG, she reverts to her idol image from time to time, particularly when she performs with the five SNSD members who stayed with SM Entertainment.

A clean shift to an alternative — and equally lucrative career — may be what every K-pop star dreams of. DJ Hyo may not have completely cut herself off from Girls Generation but she has made already a name for herself. The GG connection may be difficult to set aside, but at least she has been able to slowly step out of its shadow.

Discovery World raises investment to expand Boracay resort business

DISCOVERY World Corp. (DWC) is expanding its resort business further with the subscription to more shares in a property owner in Boracay.

The listed firm told the stock exchange yesterday it is investing a total of P90 million to increase its stake in wholly owned subsidiary Balay Holdings, Inc. The company currently owns 800,000 shares in the unit.

“In today’s meeting, the board resolved to increase the said subscription by 34.2 million shares bringing the total amount to 90 million shares…,” it said.

The shares are priced at P1 each, equivalent to a total P90-million investment which will be used by the company as working capital.

“This acquisition is in line with DWC’s business and will create opportunities for expansion of the corporation’s resort business,” it said.

DWC first announced its acquisition of shares in Balay Holdings in 2018, when it said it was subscribing to 26.2 million shares in the firm. It eventually increased this by 28.8 million shares in December last year, bringing its total subscription up to 55 million shares.

The 34.2-million additional shares that DWC will be subscribing to is equivalent to 38% of Balay Holdings’ total outstanding shares. Balay Holdings must now submit a revised application to the Securities and Exchange Commission to increase its authorized capital stock to P100 million from P3.2 million.

“Balay Holdings is seen to own real properties in Boracay to be used as the staff house of the employees of the company,” DWC said.

DWC is a hotel and resort operator in the Philippines handling brands such as Discovery Shores Boracay, Discovery Shores, Platitos Resto-Bar, Sands Lounge, Indigo Resto-Bar, Sunken Pool Bar, Forno Osteria, Estate XI, 360 Roof Lounge, Terra Spa and Club Paradise.

It also owns transportation services businesses Palawan Cove Corp. and Discovery Fleet Corp. and has a majority stake in Palawan’s Cay Islands Corp. and Baguio’s Sonoran Corp. DWC’s Long Beach Property Holdings, Inc., which was formed in 2016, is currently looking to develop more properties in Palawan.

The company booked an attributable net loss of P10 million in the nine months to September 2019, down from P88.88 million in the same period in 2018, as revenues improved 83% to P732.04 million. — Denise A. Valdez

Pussycat Dolls returning to the Philippines in May

THE REUNION tour of American girl group and dance ensemble The Pussycat Dolls (PCD) will make a stop in the Philippines on May 9 at the Mall of Asia Arena, Pasay City.

“I love all my girls so much and cannot wait to show you what we’ve got in store for you. It’s been a long time coming but this feels like the perfect time to remind the world what it means to be a Pussycat Doll,” member Nicole Scherzinger said in a release.

The group was initially meant to be a burlesque troupe, created by choreographer Robert Antin in 1995, but upon the suggestion of record executive Jimmy Iovine, Mr. Antin developed the group into a mainstream girl group in 2003. The original members of the PCD were Ms. Scherzinger, Carmit Bachar, Ashley Roberts, Jessica Sutta, Melody Thornton, and Kimberly Wyatt. Their debut single, “Sway,” was featured on the soundtrack of the 2004 film Shall We Dance?

In 2005, PCD achieved worldwide success with its singles, “Don’t Cha,” “Buttons,” and “Stickwitu,” all of which are songs from the group’s debut album PCD. The album went on to become a multi-platinum record and sold three million copies in the US. To date, the album has sold over 9 million copies worldwide.

Three years later, the group released Doll Domination, an album that produced the singles “I Hate This Part,” “Out of This Club,” and “Whatcha Think About That.” The album was released to mixed reviews and in the same year, the group announced that Ms. Bachar was leaving to pursue a solo career.

The group then commenced on the Doll Domination tour and during the European leg of the tour, tensions ran high when Ms. Scherzinger became a featured artist for the film Slumdog Millionaire (2008), doing a pop version of the theme song, “Jai Ho!”

It was also in 2009 that the group last performed in Manila as part of the Doll Domination tour.

The group officially disbanded after the tour after most of the members left, with Ms. Scherzinger remaining. There were attempts to revive the group with new members but they didn’t stick and eventually, Ms. Scherzinger left in 2010 to pursue her own career.

In 2017, there were rumors that the original members (except Ms. Thornton) had gotten back together and were thinking of going on tour. The PCD reunion was solidified when they were featured in the finale of X Factor: Celebrity in 2019 performing their biggest hits: “Don’t Cha,” “Buttons,” “When I Grow Up,” and their latest single, “React.”

The same year, the group announced its 2020 tour, unofficially called the “Unfinished Business” tour and the reunion tour.

“I created The Pussycat Dolls back in 1994 and never in my wildest dreams would I have thought it would become one of the most iconic girl groups of our time. I’ve been working on making this reunion happen now for years, so I am very excited that the stars have aligned for the PCD reunion!,” Mr. Antin said in a statement. “It’s with gratitude to our fans and during this amazing time of female empowerment, to be able to announce the launch of our PCD reunion, celebrating all genders, and the brilliant success and talent of the girls that helped influence a movement that was long overdue.”

The Pussycat Dolls 2020 Tour in Manila will be held on May 9 at the MOA Arena in Pasay City. Tickets go on sale starting Feb. 29, 10 a.m., on smtickets.com. For more information, visit any SM Ticket outlets or call 8470-2222. — ZBC

Small firms advised to tout CSR opportunities to attract workers

ONLINE JOB search website Jobstreet.com said small businesses should compete for young workers with attractive workplace cultures and a social responsibility focus.

Jobstreet Senior Sales Manager Ryan C. Tordesillas told reporters Thursday that micro, small, and medium-sized enterprises (MSME) struggle to hire as they cannot compete with the salary offerings of bigger companies.

“We’re encouraging them to take a look at the data… It’s not all about salary. There’s a lot of other things you can offer.”

Jobstreet last year released its Laws of Attraction report that found that job seekers prioritize compensation, career development, and work-life balance.’

According to Jobstreet’s new analysis, MSMEs can emphasize their leadership style to attract top talent. It found that potential workers seek professional, respectful, and collaborative leaders in smaller businesses.

Job seekers also look for corporate social responsibility (CSR) activities, with Jobstreet noting that activities to protect the environment and support the employment of disabled people drive candidates to work for MSMEs.

He said young workers are more likely to apply for jobs in startups because they are willing to take risks. Older workers tend to seek more business stability.

Jobstreet said in a statement that jobseekers from certain industries are not drawn to startups, with significant lack of interest from those seeking positions in banking (50% not interested), healthcare (48%), computer information-technology software (47%), and engineering (45%).

“For start-up hirers to be able to persuade the reluctant job hunters especially the ones from the said industries, strategizing the employment process according to factors that these respondents are looking for in a job could be helpful in attracting them,” it said.

Meanwhile, Jobstreet is also working on improving access to job information outside Metro Manila.

Mr. Tordesillas said that people in the provinces are forced to go to Metro Manila or overseas because they cannot find work within their communities. He said that jobs in the provinces are often offered through referrals or announcements outside company premises.

“If you’re an SME, you can tell someone who’s tempted to leave their province, for example, na ‘di mo kailangan lumayo. May trabaho dito. (that you don’t have to go far. There is work here).”

The company has been working for the past two years on a project with local governments in the provinces to promote the website to job seekers.

He said the company has increased job postings in Bacolod, the site of the project’s initial run. Jobstreet aims to roll out the project in Laguna, Cavite, and Cagayan de Oro, among other areas.

Mr. Tordesillas said Jobstreet plans to conduct the Laws of Attraction survey regularly, in intervals of about three years. — Jenina P. Ibañez

PHirst earmarks P550M for Batangas property project

PHIRST PARK Homes, Inc. is setting aside P550 million as capital expenditure for a new project in Nasugbu, Batangas after its purchase of a 30-hectare property in the area.

In a statement yesterday, the affordable housing unit of listed Century Properties Group, Inc. (CPG) said the land expansion will enable it to build a residential community in Batulao.

It is targeting to launch the project within the first half of the year, and has started selling the first 13 hectares of the project comprising an initial 1,021 units.

“We achieved another milestone as we acquired one of the prime properties in Nasugbu, Batangas. We are very much excited for the opportunities to develop this into a showcase community,” PHirst Park President Ricky M. Celis said in a statement.

The project is envisioned to have a “mix of modern and rustic ambiance with tree-lined streets and wide-open spaces,” matched with a view of Mount Batulao. It would be different from other projects carrying the PHirst Park Homes brand as it will feature a commercial center and new eco-friendly house models.

“Future residents will get to experience a world-class development at an affordable price point. People can jog in the streets freely, kids can play in the park, or throw a party at the clubhouse — and be rest assured of utmost security and peace of mind when you are inside the PHirst Park Homes project,” Mr. Celis added.

The project site is along the Nasugbu Highway, which the company said is 1.5 hours away from Manila, 20 minutes away from Tagaytay City and 42 minutes away from the Nasugbu beaches.

PHirst Park is eyeing to roll out 10 more master planned communities comprising 33,000 homes in the next three years. This would boost its portfolio of five projects amounting to 8,799 units with a total value of P14.4 billion: the 26-hectare PHirst Park Homes Tanza in Cavite); the 20-hectare PHirst Park Homes Lipa in Batangas; the 18-hectare PHirst Park Homes San Pablo in Laguna; the 11-hectare PHirst Park Homes Pandi in Bulacan; and the nine-hectare PHirst Park Homes Calamba in Laguna.

PHirst Park is a joint venture between CPG and Japan’s Mitsubishi Corp. Shares in CPG at the stock exchange closed 1.03% lower to P0.480 each on Thursday. — Denise A. Valdez

POEA sets deadlines for recruiters to report capitalization

RECRUITMENT agencies catering to land-based workers have been ordered to submit their paid-in capital compliance reports by the end of April, the Philippine Overseas Employment Administration (POEA) said.

According to POEA Advisory No. 16 series of 2020, recruitment agencies and manning agencies are required to demonstrate that their paid-in capital meets the regulatory minimum of P5 million.

“All licensed agencies are required to submit proof of compliance to the required capitalization on or before 30 April 2020 for land-based sector and 04 September 2020 for the sea-based sector,” the POEA said.

The advisory is based on POEA Memorandum Circular No. 4 series of 2017, which required agencies to raise their capital to P5 million over four years.

Non-compliant agencies risk having their licenses suspended.

Corporations and partnerships are required to submit a Certificate of Corporate Filing/Information issued by the Securities and Exchange Commission (SEC), indicating that net capital or equity is not below P5 million.

Single proprietorships must submit an Audited Financial Statement and Income Tax Return for the current year from the Bureau of Internal Revenue (BIR) showing equity of at least P5 million. — Gillian M. Cortez

Actor Johnny Depp takes Sun to court in ‘wife beater’ libel case

LONDON — Hollywood star Johnny Depp appeared in a London court on Wednesday to hear his lawyer argue that Depp’s ex-wife had lied when she accused him of beating her in comments quoted by the tabloid newspaper the Sun.

Depp, the 55-year-old star of the Pirates of the Caribbean films, is suing the tabloid’s publisher, News Group Newspapers, and its executive editor Dan Wootton for libel over an article Wootton wrote in 2018 calling Depp a “wife beater.”

Depp himself attended the High Court for the first day of the pre-trial review. The trial proper is due to start on March 23 and last two weeks.

Both Depp and his ex-wife Amber Heard accused each other of physical abuse during their relationship. Heard first made allegations in 2016, which Depp denied.

“One of them is lying and doing so on a grand scale,” said a skeleton argument submitted by Depp’s lawyers and distributed to journalists.

“It is a very important function therefore of this libel trial that these allegations are tested, and either proved or disproved.”

The onus in the case is on the Sun to prove that it has not committed libel. It will argue simply that the article is not defamatory because it is true.

The skeleton argument requested that the court agree to hear witnesses living in California by video-link during the London afternoon, to accommodate the eight-hour time difference.

News Group Newspapers is owned by the New York-listed News Corp. — Reuters

US SC allows employees to sue Intel over retirement plan

WASHINGTON — The US Supreme Court on Wednesday refused to back stricter deadlines for workers to sue retirement plans over alleged mismanagement, ruling Intel Corp. cannot avoid a suit accusing it of unlawfully making high-risk investments that cost retirement plan beneficiaries hundreds of millions of dollars.

The justices unanimously upheld a lower court decision that revived the proposed class-action lawsuit filed in 2015 by former Intel engineer Christopher Sulyma against the Santa Clara, California-based chipmaker. The justices rejected Intel’s argument that Sulyma’s lawsuit had been filed too late.

At issue was the time period for bringing a lawsuit alleging violations of the Employee Retirement Income Security Act (ERISA), a federal law that requires plan managers to invest prudently. Beneficiaries generally have six years to sue over ill-advised investment decisions. That deadline is cut to three years if a problem becomes known sooner.

Sulyma was backed by President Donald Trump’s administration in the case. Sulyma’s suit accused company retirement plans and administrators of breaching their fiduciary duty to the participants by placing an overly heavy emphasis on hedge funds and private equity, in contrast to peer funds.

Intel said that the investments were chosen to better diversify the plans’ portfolios and urged that the case be thrown out. The fund participants knew of the issue more than three years before based on emails the company had sent with links to documents about the investments, thus missing the deadline for filing suit, Intel added.

Sulyma countered that while employed at Intel between 2010 and 2012 he was unaware of the alternative investments, that they performed poorly or even what hedge funds were. He said that he did not have “actual knowledge” of the alleged investment problems because he did not read the relevant documents that were only posted online.

The San Francisco-based 9th US Circuit Court of Appeals in 2018 let the case proceed, ruling that the three-year deadline applied only if Sulyma was actually aware of the facts of a violation, not merely that those facts were available.

In Wednesday’s ruling, the Supreme Court agreed.

“The question here is whether a plaintiff necessarily has ‘actual knowledge’ of the information contained in disclosures that he receives but does not read or cannot recall reading. We hold that he does not,” Justice Samuel Alito wrote in the ruling.

In its appeal, Intel had warned that such a decision would make it too easy for a plaintiff to sustain a lawsuit simply by asserting “that he did not read the relevant plan documents, or simply that he cannot recall whether he saw them.”

During December arguments in the case, conservative and liberal justices alike voiced doubt that most people read investment documents that companies send out. — Reuters

BDO books higher net income in 2019 as its core businesses grow

BDO UNIBANK, Inc. saw its net income jump by more than a third in 2019 on the back of core recurring income sources.

In a statement on Thursday, the Sy-led lender said its net income hit P44.2 billion in 2019, surging by 35.16% from the P32.7 billion booked in 2018.

“The results exceeded the bank’s P38.5 billion guidance and translate to a return on common equity of 12.8% from 10.7% the year before,” the bank said.

According to the lender, its record-high net income in 2019 was on the back of the “strong performance of its core recurring income sources.”

Net interest income grew to P119.9 billion, up by 2.19% from the P98.3 billion booked in the preceding year.

“Net interest margin improved on continued CASA (current account, saving account) growth and improving loan mix in favor of consumer and middle market customers,” BDO said.

Loans inched up by nine percent to P2.2 trillion buoyed by growth across market segments.

Meanwhile, the bank’s non-performing loan (NPL) ratio was steady at 1.2% despite the increase in credit, while NPL cover “remained high at 164.7%.”

BDO set aside P6.2 billion in provisions as an effort to maintain its “conservative credit and provisioning policies,” it said.

On the other hand, total deposits rose by three percent to P2.5 trillion, backed by the eight-percent growth in low-cost CASA deposits which make up 73% of total deposits.

Meanwhile, BDO’s non-interest income reached P60.6 billion last year, mainly on the back of fee-based income and insurance premiums which reached P35.3 billion and P14.8 billion, respectively. Gains from trading and foreign exchange stood at P5.7 billion.

BDO said its gross operating income inched up to P180.5 billion overall.

The lender’s capital base grew to P370.6 billion. Its capital adequacy ratio stood at 14.2%, while its common equity Tier 1 ratio was at 12.7%, both well above the required regulatory levels.

“Moving forward, BDO’s robust business franchise, extensive distribution network, solid balance sheet and focused growth strategy place the bank in an advantageous position to tap growth opportunities and development thrusts in line with government priorities while remaining resilient to domestic and external challenges,” the bank said in the statement.

BDO raised P35 billion through fixed-rate peso bonds in February to support its business expansion and to diversify its funding sources. The papers have a yield of 6.42% per annum to be paid quarterly until July 2020.

The lender’s shares ended trading at P143 apiece on Thursday, up by P6 or 4.38% from Wednesday’s finish. — Luz Wendy T. Noble

Holcim net income surges 41%

EARNINGS of Holcim Philippines, Inc. (Holcim) surged 41% in 2019, driven by improved efficiencies and tempered costs.

In a regulatory filing yesterday, the listed cement manufacturer said its net income last year rose to P3.59 billion despite a 6% slowdown in net sales to P33.49 billion.

Cost of sales fell 9% to P27.04 billion, resulting to a 12% increase in gross profit to P6.45 billion.

Its earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P6.7 billion for 2019, 37% up from the year prior.

“[T]he company benefitted from initiatives to raise efficiencies and improve costs across all areas of the business. A more favorable product mix and the steady contribution of its aggregates unit also helped business performance,” Holcim said in a statement.

During the fourth quarter, the company’s revenues climbed 17% to P9.8 billion, as EBITDA jumped 67% to P2.5 billion. Net profits during the three-month period soared 113% to P17.1 billion.

“We made significant progress in improving our company’s ability to deliver strong profitable returns to our shareholders last year,” Holcim Philippines President and Chief Executive Officer John Stull said in a statement. “Our sustained focus on operational efficiency and cost discipline for the past years lifted our bottom line.”

The company upgraded its plants in La Union, Bulacan and Davao last year to raise its annual cement production capacity to 10 million metric tons. Mr. Stull said projects like this will prepare Holcim for future growth.

“With the completion of our capacity expansion projects, commercial innovations and stronger cost and efficiency mindset, Holcim Philippines Inc. is well positioned to deliver sustainable and healthy growth to shareholders and continue our support to this country’s development,” he said.

Aside from the newly upgraded plants in La Union, Bulacan and Davao, Holcim also operates facilities in Batangas and Misamis Oriental. The company is part of the global LafargeHolcim Group which has a footprint in 80 countries.

The Philippine unit of Holcim is in the process of being acquired by listed conglomerate San Miguel Corp. The $2.15-billion deal is being reviewed by the Philippine Competition Commission.

Shares in Holcim at the stock exchange rose 48 centavos or 3.69% to P13.48 apiece on Thursday. — Denise A. Valdez

Total recall

Kaiba
Directed by Masaaki Yuasa
Amazon Prime and YouTube

CALLING Masaaki Yuasa the new Miyazaki would sound tired, not to mention inaccurate — he’s a little wilder, a little less restrained; calling him Makoto Shinkai’s contemporary would be unfair — he’s so much better (more subtle, less sentimental) than the blockbuster director of Your Name and Weathering With You.

Kaiba opens with a boy; he has a triangle of three connected circles tattooed to his belly, and a hole where his heart should be. He lies on a melted bed (Plastic? Metal?) and the wall behind him has been blown out, the edges partly melted.

Who, what, where, how, why? Kaiba (we only learn his name later) barely has time to react when a skonk — a large automated flying drone — pops up behind him through the wall gap and a boy with a big gun fires (At the machine? At Kaiba?); a roadrunner-like bird springs across the screen shoving Kaiba aside, carrying him away, and the show is literally off and running.

You’re as confused as the protagonist, who has lost his memories; perfect opportunity for Yuasa to sketch in a few details. The boy is lost in the planet Lala, a world where the rich live in a contiguous upper stratum held aloft by towering columns (literally the upper crust); the poor live in honeycombed warrens far below.

That’s the basic premise; what really hits you at first glance is Yuasa’s animation style, a childlike cleanlined look that recalls everything from Osamu Tezuka’s Astro Boy to Rene Laloux’s Fantastic Planet — Kaiba looks like Astro fitted with a mop of limegreen hair; the rescue bird has powerful ostrich legs and a single toon eye encased in a green bubble (the creature says nothing, expresses itself in astounding leaps and bounds); the big gun is a brass metal ball with a handle at one end, a nozzle at the other, firing yolky cookie dough. Looks like children’s anime, and if you didn’t know any better you’d expect cheerful adventures and easy lessons in life and love and togetherness to follow.

Kiyoshi Yoshida’s dreamy synthesizer score suggests differently, evokes a tone that Yuasa maintains for much of the series: the gauzy state between subconscious and wakefulness, with unexpected forays into nightmare. The gun fires cookie dough; the dough wraps around your body and melts you into a puddle. The skonk chasing Kaiba is knocked down, and folks scramble to collect the memory chips that spill out — earlier we saw skonks dive down on fleeing pedestrians, sucking memories out of their skulls to be stored in those little cone-like chips.

In a quick review that introduces most of the succeeding episodes, Yuasa explains that technology has enabled us to record memories into chips but only the rich can afford to buy newer, younger, stronger, more beautiful bodies in which to insert said chips; the poor sell their bodies to the rich for cash. Corollary to memory transfer: one can suck out bad memories and insert happy ones, improving one’s mood immeasurably; Yuasa goes into the implications of that later.

Meanwhile Kaiba has been smuggled aboard a ship by transferring his memories into the body of a girl (one of the countless kawaii — cute — girls that populate Japanese anime); the woman who helped Kaiba into his new body has made a copy of her own memory chip, inserted it into the boy’s old body, and is basically making love to herself (Kaiba watches through a peephole). The character designs suggest wholesome Tezuka-like adventure but what folks forget is that Tezuka often ventured into dark territory, even with his popular Astro Boy series; this may be Yuasa’s tribute to the old master, at the same time adding his own eerie mix of melancholy, deadpan humor, surreal imagery.

For a few episodes Kaiba rides the ship to different planets with different stories: in one two boys seek their grandmother’s hidden treasure; with a special projector they access her memories — creating a circular opening resembling a comic strip’s thought balloon — and send Kaiba in (Keaton’s Sherlock, Jr. anyone?) to learn the treasure’s location. In another, a cat named Patch fashions ever evolving trends in wearable bodies (wildly different shapes and sexes, bright neon colors, deliberately introduced defects) while his loyal dog named Quilt stands quietly by his side. We visit different corners of this universe Yuasa has made, where body-switching is a commercial enterprise, memory an ephemeral, highly mutable concept, and the rich have invented a few perversities to add to an already enormous heap.

Most folks prefer this picaresque first half with its more easily digestible tales; the second half pulls everything together in an intricate ambitious scheme: the power struggle over who will rule Lala and its network of worlds, who controls the memories that are either stored in chips or float — like so many plastic beads — across the ocean of interplanetary space. I think the second half indispensable to the overall work; having shown us the consequences, Yuasa now shows us the struggle to either correct said consequences or push aforementioned implications to their extreme yet logical conclusion.

Key to understanding what Yuasa is trying to say (skip the next two paragraphs if you haven’t seen the series!) is Kaiba — not the boy hero, but a monstrous plant traveling through space towards Lala to swallow the memories of all its inhabitants. Kaiba’s love Neiro (who he first sees as a blurred image in a locket, later as an assassin targeting him) names him “Kaiba” because his recall seems so sharp (he had drawn intricate murals of people and scenery from memory); the word is also Japanese for hippocampus, the organ in the brain responsible for transferring short-term memories into long-term storage. Kaiba’s real — or original — name is Warp, whose statue and images can be seen constantly through the episodes, in video screen and statues throughout the many planets.

Which suggests a number of things — Kaiba is both hero and villain, being the tyrant who established this vast social order, and the technology that made the order possible; he’s also the innocent hero wandering through space, witnessing the suffering his order has caused. Losing his memories is instrumental in forcing the change, having lost power and status (in this world memory is power, and absolute command of most if not all memories is absolute power) to view the world from another vantage. Not just memories though, but which version of that memory — at one point Neiro seeks to kill Warp because her memories have been altered to eliminate any mention of their time together; she ends up trying to save him because he’s become (thanks to her) Kaiba, or as she puts it “my Kaiba” — the possessive determiner suggesting she has as good a claim as any of the many power figures struggling for control, or at least asserts she does. Who’s to say she’s wrong?

Preferring the first half or the whole or getting yourself lost in the narrative’s complex twists, it doesn’t really matter — one can simply sit back and enjoy the series’ haunting imagery, the disconnect between bright toon-like characters and their dark dangerous world, to the accompaniment Yoshida’s unearthly melodies. Yuasa is arguably one of the most inventive of the next generation of animators to follow Miyazaki, Takahata, Oshii, and this arguably one of his best works.