China Kunda Technology Holdings Limited · SGX:GU5
China Kunda Technology — IPO Roadshow (November 2008)
24 slides from China Kunda Technology's IPO roadshow presentation, Nov 7, 2008
Slide 1: China Kunda Technology Holdings Limited
11/7/2008 中国群達科技控股有限公司 CHINA KUNDA TECHNOLOGY HOLDINGS LIMITED 24 Raffles Place, #25-03 Clifford Centre, Singapore 048621 Tel: (65) 6534 3567 Fax:(65) 6534 3566 www.chinakunda.com Important Notice This presentation does not constitute, or form any part of any offer for sale or subscription of, or so
Slide 2: Agenda
11/7/2008 Agenda 1 Corporate & Business Overview 2 Competitive Strengths 3 Financial Highlights 4 Industry Outlook 5 Business Strategies & Future Plans Corporate & Business Overview Note: The above properties are owned by Shenzhen Precision 2
Slide 3: Our Business and Group Structure
11/7/2008 Our Business We are a provider of precision Moulds, Plastic Injection Parts and IMD products to the electronics, electrical, automobile and specialised devices industries. Our plastic engineering solutions include design, research and development of Plastic Injection and IMD Technologies.
Slide 4: Milestones and Business Model
11/7/2008 Milestones Set up a joint post doctoral scientific Establishment of research base through Shenzhen Precision 2007 Yick Kwan Tat 1998 with South China University of Technology Proposed R&D collaboration Initial through Shenzhen Precision with Shenzhen Public Establishment of Huazhong Univer
Slide 5: Our Principal Activities and Moulds
11/7/2008 Our Principal Activities i) Sale of the following – • High-precision Moulds for Plastic Injection • Plastic Injection Parts • Plastic In-mould Decoration (IMD) products ii) Provision of technical services iii) Trading of chemical products and metal parts used in Plastic Injection (“Others”
Slide 6: Moulds and Plastic Injection Parts
11/7/2008 Moulds 1. Plastic air intake manifold Mould Superior in performance and estimated to improve fuel efficiency by 8% compared to traditional steel parts 2. Automotive Low pressure Moulds Used mainly in the production of automobile interior parts In low pressure molding, the upholstery materi
Slide 7: IMD Products and Technical Service
11/7/2008 IMD Products In-mould decoration (“IMD”) products are technically challenging products to manufacture requiring expertise from several fields and stringent production and quality control Unlike traditional plastic injection parts, IMD product i. Does not require further processing ii. Is m
Slide 8: Competitive Strengths
11/7/2008 Competitive Strengths Competitive Strengths Strong product R&D capabilities Well- Experienced established management relationships team with customers Commitment to quality products and services 8
Slide 9: Competitive Strengths: Management, Quality, R&D
11/7/2008 Competitive Strengths Experienced management team Our Executive Directors and Executive Officers has an average of more than 10 years of experience in their respective fields Our Chairman and CEO is the Technical Advisor to the PRC National Key Laboratory of Material Forming and Mould Tech
Slide 10: Competitive Strengths: Technology and Recognition
11/7/2008 Competitive Strengths Low pressure moulding technology Awarded 粤港关键领域重点项目突破 “Guangdong and HKSAR Key Area Important Project Breakthrough” by Science and Technology Bureau of Guangdong Province In-Mould Decoration Products Successfully developed 1st batch of IMD products in 2005 In June 200
Slide 11: Competitive Strengths: R&D and Customer Relationships
11/7/2008 Competitive Strengths R & D development A specialised CAD/CAE software system used in Mould design A computerised control system which allow ordinary Plastic Injection machines to perform low pressure plastic injection molding More moulds to produce automobile interior & exterior parts Mou
Slide 12: Financial Highlights
11/7/2008 Financial Highlights Financials HK$’m 12
Slide 13: Financials: Revenue Breakdown by Products
11/7/2008 Financials HK$’m Financials HK$’m Revenue breakdown by products 13
Slide 14: Gross Profit and Margin by Products
11/7/2008 Financials HK$’m Gross Profit breakdown by products Financials Gross Profit Margin breakdown by products 14
Slide 15: Revenue Breakdown by Geographic Markets
11/7/2008 Financials HK$’m Revenue breakdown by geographic markets Financials Revenue breakdown by geographic markets HK$’m 15
Slide 16: Selected Financials
11/7/2008 Financials HK$’m Technical Fee Breakdown Selected Financials HK$’m FY2005 FY2006 FY2007 9M2007 9M2008 Revenue 33.0 58.0 120.1 83.1 76.6 Gross Profit 7.0 14.5 39.8 26.6 23.9 Technical fee 1.0 7.6 18.8 13.5 28.0 Selling and Admin exp (3.3) (4.7) (5.2) (3.5) (6.6) Profit before tax 4.3 17.0 5
Slide 17: Ratios
11/7/2008 Ratios HK$’m FY2005 FY2006 FY2007 9M2008 Debtor turnover days 63 48 32 71 Creditor turnover days 92 67 32 54 Net profit margin 12.5% 24.9% 37.5% 51.5% Sales/Total assets 1.47 1.21 1.30 0.56 Total assets/shareholder 3.50 2.28 1.39 1.26 equity ROE 64.5% 68.6% 67.6% 36.4% ROA 18.4% 30.1% 48.8
Slide 18: Industry Outlook: Automobile Industry
11/7/2008 Industry Outlook 1) Automobile Industry PRC automobile sales in 2006 reached 7.22 million. In the first 5 months of 2007, sales of automobile increased by 21.32% over the last comparative period. The China Automobile Industry Association estimated that sales of automobile parts (inclusive
Slide 19: Industry Outlook: Electronics and IMD Technology
11/7/2008 Industry Outlook 3) PRC Electronics and Electrical Industries We believe PRC will remain an important outsourcing centre for OEMs and ODMs of well-known international brands for electronics and household appliances In 2006, PRC’s domestic consumption of small electrical household appliance
Slide 20: Business Strategies & Future Plans
11/7/2008 Business Strategies & Future Plan Business Strategies & Future Plans We would be focusing on our R&D capabilities in the fabrication of large-scale precision automobile Mould 1) Establish manufacturing capability Establish our own manufacturing capability for Plastic Injection Parts Mould
Slide 21: Business Strategies: R&D, Customers, Sales
11/7/2008 Business Strategies & Future Plans 2) Enhance our R&D capabilities We would continue to focus on R&D, projects that we intend to focus on includes: i. Mould R&D to develop more applications for the automobile industry ii. More complex IMD technology to produce larger and more complex produ
Slide 22: Investment Merits and Issue Statistics
11/7/2008 Investment Merits Established Our automobile relationship with Moulds and IMD OEMs and ODMs products have of owners of good growth international potential automobile and electronic brands Strong technical High gross expertise in margins due to automobile mould the technical and IMD complex
Slide 23: Use of Net Proceeds and Thank You
11/7/2008 Use of Net Proceeds Use of Proceeds S$’000 Acquisition of Shenzhen Precision assets/liabilities 200 Investment in additional plant, machineries and 7,000 production facilities Enhancement of R&D capabilities 1,000 Expansion of our sales and marketing network General working capital and fun
Slide 24: Shenzhen Precision
11/7/2008 Shenzhen Precision Shenzhen Precision is 95% owned by Cai Kaoqun (Chairman and CEO) and 5% owned by Cai Kaobing (Executive Director) The production of our Mould and IMD products are outsourced to Shenzhen Precision Wef 1 Oct 07, the acquisition price of these Mould and IMD are fixed at dir
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