King's Flair International (holdings) Limited · HKEX:6822
King's Flair International (holdings) — FY2020 Earnings Presentation
35 slides from King's Flair International (holdings)'s earnings presentation, Apr 27, 2021
Slide 1: King's Flair International (Holdings) Limited 2020 Annual Results
KING’S FLAIR INTERNATIONAL (HOLDINGS) LIMITED 科勁國際（控股）有限公司 （Stock code: 6822.HK） 2020 Annual Results An integrated one-stop kitchenware & household product solutions provider
Slide 2: Company Overview
Company Overview Stock code Stock price Market cap HKD 1,022 million 6822.HK HKD 1.460 As at 26 April 2021 As at 26 April 2021 Listing date No. of issued share January 2015 700,000,000 As at 26 April 2021 Net cash position ROE Established client base FY2020 payout ratio 70.6% average 10-20 years of
Slide 3: Business Overview
01 Business Overview
Slide 4: One-stop Kitchenware and Household Product Solutions Provider
One-stop Kitchenware and Household Product Solutions Provider ODM Retail business Material Retail Research Idea Industrial Sourcing Manufacture QC Logistics Strategy Generation Design Material Marketing & Innovation Branding ￭ Raw material ￭ 31 design and R&D team selection Light asset business mode
Slide 5: Value Proposition
Value Proposition Manufacturers Ability to gain steady order Technological enhancement and production support Eliminate their receivable risks Long-term working relationship Brandowners Raw material supplier R&D input Customer reach through extensive Cost-efficient procurement client n
Slide 6: Competitive Advantage
Competitive Advantage Proven margin enhancement through value-added solutions 21.9% 20.8% 21.6% 23.3% 18.1% 18.2% 20.3% 14.9% 15.2% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Differences between King’s Flair and traditional traders Differences between King’s Flair and traditional manufacturers I
Slide 7: Extensive Assortment of Kitchenware and Household Products
Extensive Assortment of Kitchenware and Household Products King’s Flair as a kitchenware and household products provider with 40+ years of experience Tools and Bakeware and Drinkware Sinkware Gadgets Accessories Food Preparation Storage and Coffee Barware Products Accessories Accessories 7
Slide 8: Extensive Client Network
Extensive Client Network Revenue breakdown by customers 2020 | 2019 Top 5 contributing 66.0% of the Group’s total revenue 2nd 19.5% | 13.1% 3rd 15.0% | 9.4% 4th 2.8% | 2.2% 1st 5th 2.6% | 1.7% 26.1% | 44.0% Others 34.0% | 29.6% • Through our value-added services and long-term relationship with clien
Slide 9: 2020 Annual Results
02 2020 Annual Results
Slide 10: Key Financials
Key Financials For the year ended 31 December HK$ ’000 2018 2019 2020 Change Revenue 1,566,864 1,540,412 1,311,184 -14.9% Gross profit 284,619 312,521 305,597 -2.2% Profit attributable to owners 118,003 124,945 114,081 -8.6% of the Company Basic earnings per share 16.9 17.8 16.3 -8.4% (HK cents) Gro
Slide 11: Revenue Analysis
Revenue Analysis Revenue Analysis Revenue breakdown by Geography HK$ million 2020 | 2019 Europe 6.9% | 7.0% Canada 2.4% | 2.0% United States 67.1% | 71.2% Others 0.3% | 0.5% Asia^ 23.3% | 19.3% ^ Include ODM sales and retail sales, in which retail sales in Asia includes China, Macau, Hong Kong, Taiw
Slide 12: Gross Profit and Gross Profit Margin Analysis
Gross Profit and Gross Profit Margin Analysis Gross profit & gross profit margin Gross profit margin analysis HK$ million 23.3% 2018 2019 2020 Change 20.3% 18.2% One-stop kitchenware 16.6% 18.2% 21.3% +3.1 p.p. and household solutions 312.5 305.6 Retail 47.4% 43.0% 41.5% -1.5 p.p. 284.6 Trading of 3
Slide 13: Net Profit and Net Profit Margin Analysis
Net Profit and Net Profit Margin Analysis Net profit & net profit margin Key expenses HK$ million As a % of total revenue Distribution expenses Administrative expenses 8.7% 8.1% Income tax expense (% to profit before tax) 7.5% 17.5 17.6 16.3 8.6 7.3 118.0 124.9 114.1 6.0 2.9 3.1 3.4 2018 2019 2020 2
Slide 14: Efficiency and Liquidity
Efficiency and Liquidity As at As at As at HK$ ’000 Change 31 December 2018 31 December 2019 31 December 2020 Net current assets 623,916 653,516 583,649 -10.7% Cash and bank balances 421,415 471,536 373,928 -20.7% Current ratio 2.6 3.2 3.8 -- Quick ratio 2.4 3.1 3.5 -- Gearing ratio Net cash Net cas
Slide 15: Historical Dividend Payout
Historical Dividend Payout Full year dividend of HK$0.115 per share for 2020 Dividend since IPO Dividend per Share (HKD) Payout Ratio (Total) Dividend Yield 184.9% 0.7 200.0% 0.6 70.6% 77.1% 62.8% 63.4% 28.2% 70.6% 100.0% 0.5 8.0% 0.0% 14.2% 9.1% 11.2% 7.5% 0.4 0.33 -100.0% 0.3 -200.0% 0.2 0.165 0.1
Slide 16: Development Strategy
03 Development Strategy
Slide 17: Upstream Development through New Technology and Materials - Nanotechnology
Upstream Development through New Technology and Materials - Nanotechnology Material Sourcing Marketing & R&D Idea Generation & Innovation Manufacture QC Branding Retail In 2018, KF entered a strategic partnership with NAMI - Nano & Advanced Materials Institute Limited, investing in machineries and p
Slide 18: Highlight of Nanospider Machine
Highlight of Nanospider™ Machine Material Sourcing Marketing & R&D Idea Generation & Innovation Manufacture QC Branding Retail Current Installation Status: The 1st production line among the 4 has been delivered and started its operation in Tai Po, consisting of the standard version of the machine wi
Slide 19: Continuous Technological and R&D Advancement
Continuous Technological and R&D Advancement Our R&D team: • Focuses on market research and analysis which includes 9 from Nano Technology Development Team • Equipped with professional academic background and experience: almost all of them have a Bachelor’s Degree, some in Master’s Degree, and inclu
Slide 20: Expanding Channels for Retail Business
Expanding Channels for Retail Business Material Sourcing Marketing & R&D Idea Generation & Innovation Manufacture QC Branding Retail Our Retail Platform 20
Slide 21: Expanding Channels for Retail Business
Expanding Channels for Retail Business Our Online Stores Our Offline Channels Visitors per day ~1,000 – 27,000 # of POS in 1H2020 ~1,200 Online store current hit rate ~35% – 70% # of POS (Target by end of 2021) ~1,300 Average transaction value RMB ~130 – 270 21
Slide 22: Expanding Retail Network in Asia
Expanding Retail Network in Asia JAPAN Geographical Coverage: CHINA TAIWAN HONG KONG & MACAU THAILAND 22
Slide 23: Successful Case of Retail Product Adaptation
Successful Case of Retail Product Adaptation Product Range Logistics China sales network Marketing and promotion • Lifestyle, light luxury, • Major courier and shipping • Online POS focusing on user experience companies with order and functionality tracking services • Warehouses in Shanghai, Beijing
Slide 24: Appendix
04 Appendix
Slide 25: Shareholding Structure
Shareholding Structure Dr. Wong Siu Wah (Chairman and CEO) Public and Ms. Cheng Hew Hong, Rebecca 75.0% 25.0% (Stock code：6822.HK) No. of issued shares (As of 26 April 2021): 700,000,000 shares 25
Slide 26: Corporate Milestone
Corporate Milestone ￭ Entered strategic partnership ￭ Chairman – Dr. Wong Siu ￭ Established business with ￭ Established product ￭ On 16 January 2015, with NAMI - Nano & Advanced Wah started the kitchenware William Levene Ltd. design and development listed on the Main Materials Institute Limited, bus
Slide 27: Management Team – Experienced Industry Professionals
Management Team – Experienced Industry Professionals Name & title Major responsibilities & Years of professional experience • 40+ years in engineering design, production supply chain and operational management in the kitchenware business • An Honorary Life Vice President of the PolyU Foundation Dr.
Slide 28: Management Team – Experienced Industry Professionals
Management Team – Experienced Industry Professionals Name & title Major responsibilities & Years of professional experience • Responsible for managing the Group’s marketing teams and workflow improvement Mr. Chan Hoi Tung, Danny • Over 25 years of experience in IT & consumer electronics products dis
Slide 29: Corporate Social Responsibility - Education
Corporate Social Responsibility - Education Over the years, + HKD 30 Million Education Funding donated: • The Hong Kong Polytechnic University • Endowed Professorship – School of Design • COVID-19 Student Support Fund • Basketball and rowing team sponsorship • Hong Kong University of Science and Tec
Slide 30: Corporate Social Responsibility - Charity
Corporate Social Responsibility - Charity Over the years, donate + HKD 15 million to support Charity Organization and Local Community
Slide 31: Corporate Social Responsibility - Awards
Corporate Social Responsibility - Awards
Slide 32: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income For the year ended 31 December HK$’000 2020 2019 Revenue 1,311,184 1,540,412 Cost of sales (1,005,587) (1,227,891) Gross profit 305,597 312,521 Other income and gains, net 8,463 12,473 Distribution expenses (44,711) (48,364) Administrative expenses (113
Slide 33: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position HK$’000 As at 31 December 2020 As at 31 December 2019 Non-current assets 86,761 96,850 Property, plant and equipment 54,998 66,688 Other asset 172 172 Interests in associates 12,673 13,540 Intangible asset -- -- Deposits paid for property, plant and equip
Slide 34: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position HK$’000 As at 31 December 2020 As at 31 December 2019 Non-current liabilities 5,668 9,526 Lease liabilities 1,563 5,114 Deferred tax liabilities 4,105 4,412 Current liabilities 211,432 295,645 Trade and bills payables 102,975 121,534 Other payables and ac
Slide 35: Thank you !
Thank you ! This document is confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval from King’s Flair International (Holdings) Limited (“King’s Flair”). King’s
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