Karin Technology Holdings Limited · SGX:K29
Karin Technology — IPO Roadshow (February 2005)
33 slides from Karin Technology's IPO roadshow presentation, Feb 22, 2005
Slide 1: Karin Technology Holdings Limited Corporate Presentation
Karin Technology Holdings Limited Corporate Presentation 22 February, 2005
Slide 2: Disclaimer
Disclaimer This presentation does not constitute, or form any part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoeve
Slide 3: Contents
Contents Who we are & What we do Our Strengths & Achievements Our Financials Prospects & Future Plans IPO Invitation Details Valuations Karin Technology Holdings Limited
Slide 4: Who we are & What we do
Who we are & What we do
Slide 5: Karin Technology…
Karin Technology… One of the leading Electronic Solutions Groups in Hong Kong & the PRC A value-adding partner to the electronics industry
Slide 6: We are…
We are… Solid track record of over 27 years ¾ Established since 1977 ¾ Strong reputation & brand recognition in HK & PRC In-house technical capabilities in design and IC software application Nestled in HK - a key gateway for electronic parts & components in Asia Pacific ¾ Poised to benefit from Chin
Slide 7: We are… An Experienced & Cohesive Team
We are… An Experienced & Cohesive Team Key management team has extensive experience, with Chairman & CEO each having more than 27 years of experience Supported by strong team of executive officers Karin Technology Holdings Limited
Slide 8: Key Management team well experienced & committed to growth
We are… - Key Management team well experienced & committed to growth Philip Ng Raymond Ng Eugene Lee Ng Kam Wing Alvan Yeung Executive Chairman CEO & Executive COO & Chief CFO & Company & Executive Director Executive Technology Secretary Director Director Officer Over 27 years Over 14
Slide 9: Our Synergistic Business Model
What we do… Products & Technical Services Expertise IC Components Application Distribution Design Reputation SYNERGY People IT Infrastructure Network Customers Karin Technology Our Synergistic Business Model Holdings Limited
Slide 10: What we do…
What we do… R&D Customers •Improve hardware & software Product Design Develop prototypes, reference designs Develop kits Testing Technical Expertise Technical Advisory Services Supply/Source for components Component Selection Network Source for CMs Coordinate Manufacturing Activities Delivery to cus
Slide 11: Synergistic businesses integrated to serve customers' needs
What we do… KARIN TECHNOLOGY Components IC Application IT Distribution Design Infrastructure Value added Distributes & Computer data customised IC trades electronic storage software components management application solutions design solutions Contributed 37% Contributed 34.6% Contributed 28.4% to PB
Slide 12: Components Distribution
Components Distribution Distributes and trades an extensive range of electronic components, industrial materials and components ¾ ICs, connectors, semi-conductors, cables and power semi-conductors Base of more than 150 suppliers ¾ Distribution of Daishinku, Winbond, Hirose and Shindengen products fo
Slide 13: IC Application Design
IC Application Design Provides customized value- added services ¾ IC software application design solutions required in educational toys; musical instruments; keyboard, LCD, speech and remote controllers Develops prototypes, reference designs and development kits ¾ Proactively generate demand for our
Slide 14: IT Infrastructure
IT Infrastructure Computer data storage management solutions ¾ Aimed at complementing & supporting customers existing systems or meet specific IT needs ¾ Storage Area Network (SAN), Network Attached Storage (NAS) & Direct Attached Storage (DAS) ¾ Authorised HP distributor ¾ Supply a wide range of co
Slide 15: Our Strengths & Achievements
Our Strengths & Achievements
Slide 16: Long & Established Relationships with Suppliers & Customers
Long & Established Relationships with Distinguished Suppliers & Customers Currently serve more than 1,000 customers ¾ MNCs, contract manufactures, electronic product manufacturers, traders, retailers, business corporations ¾ Customers include Jardine OneSolution, Tai Nam Industrial, Wealthwise Indus
Slide 17: Established an Extensive Distribution Network
Established an Extensive Distribution Network Established distribution channels covering 5 cities in the PRC Beijing ¾ Managed by locals who are PRC highly experienced Shanghai Hangzhou • Strong sales & marketing team Shenzhen of 65 staff Hong Kong Karin Technology Holdings Limited
Slide 18: Strong Technical Expertise
Strong Technical Expertise Strong team of 70 field application engineers ¾ Drive development of IC software application design ¾ Implement demand creation business model ¾ Work closely with sales team to develop solutions for customers Karin Technology Holdings Limited
Slide 19: Reputable Name for Quality Products
Reputable Name for Quality Products Strong track record of quality services Strong recognition from business partners ¾ Top Distributor (Winbond) ¾ Outstanding Growth Partner (Sun Microsystems) ¾ Distinguished Business Growth ( Compaq) ¾ Sales Target Achievement (Hirose) ¾ Long Term Sales Cooperatio
Slide 20: Our Financials
Our Financials
Slide 21: Group Revenue
Group Revenue HK$’ Million 1200 1098.8 987.4 888.1 1000 800 600 400 200 0 FY2002 FY2003 FY2004 Financial Year ended 30 June Karin Technology Holdings Limited
Slide 22: Group Revenue
Group Revenue FY2004 35.1% 41.8% FY2003 23.1% 35.7% 48.7% 15.6% FY2002 Component Distribution IC Application Design IT Infrastructure 37.4% 42.8% 19.8% Karin Technology Financial Year ended 30 June Holdings Limited
Slide 23: Group Revenue
Group Revenue FY2004 3.6% 19.9% FY2003 13.1% 0.9% 76.5% FY2002 12.1% 2.0% 86.0% 85.9% Hong Kong PRC Others Karin Technology Holdings Limited Financial Year ended 30 June
Slide 24: Group Net Profit After Tax
Group Net Profit After Tax HK$’ Million 30 2 4 .4 25 2 1 .5 20 1 6 .2 15 10 5 0 FY2002 FY2003 FY2004 Financial Year ended 30 June Karin Technology Holdings Limited
Slide 25: Key Financial Highlights
Key Financial Highlights HK$’million As at 30 June 2004 Current Assets 317.9 Current Liabilities 253.0 Working Capital 64.9 Shareholders Equity 89.0 Trade Debtors Turnover Days 62 days Inventory Turnover Days 25 days NTA (HK cents per share) 59.3 Net cash from operating activities 17.2 Net cash infl
Slide 26: Prospects & Future Plans
Prospects & Future Plans
Slide 27: Electronics Industry in HK & PRC
Electronics Industry in HK & PRC Industry expected to grow significantly, driven by : ¾ New applications, products and shorter product life cycles ¾ Opening of the PRC market led by PRC’s entry into the WTO ¾ Growing domestic demand ¾ Entry of new EMS players Evolving role of industry players ¾ Outs
Slide 28: Electronics Industry in HK & PRC
Electronics Industry in HK & PRC Hong Kong’s Electronics Exports Hong Kong is a key strategic and trading HK$ Billion hub for electronics 800 732.7 in Asia Pacific 750 700 650.8 Electronics industry 650 610.2 largest merchandise 600 export earner (42% 550 of total exports in 500 2003) 2002 2003 P200
Slide 29: Electronics Industry in HK & PRC
Electronics Industry in HK & PRC 58% 42% Grew 20% over 2002 Other Electronics and already achieved Industries Industry more than 88% 2003’s export for the 1st nine months of 2004 TOTAL EXPORTS (HK) IN 2003 (PY2004) 34% 66% Other Parts & Electronics Parts & components components products constitute 2
Slide 30: Use of Proceeds & Future Plans
Use of Proceeds & Future Plans S$3.0 m to expand Expand sales network in the PRC to existing marketing capture growing market team & distribution - Establish 4 additional liaison offices in network in the PRC Qingdao, Chongqing, Chengdu and ( set up additional Guangzhou sales & liaison offices ) Exp
Slide 31: Use of Proceeds & Future Plans
Use of Proceeds & Future Plans S$1.3 m for co- operation or Leverage on established distribution alliances to capture network & technical expertise in Hong new business Kong and the PRC to explore new opportunities product lines with higher profit margins S$2.8 m to increase inventory Further divers
Slide 32: Summary
Summary Entrenched position in the industry Linked in to procurement, inventory & billing systems of major vendors like HP & Sun Microsystems Takes years & strong capabilities to achieve Provide highly specialised application designs, customised software solutions and system integration configuratio
Slide 33: Thank You
THANK YOU
Karin Technology Holdings — IPO Roadshow (February 2005) on 6ix