Luk Fook Holdings (International) Limited · HKEX:590
Luk Fook Holdings (International) — FY2015 Earnings Presentation
44 slides from Luk Fook Holdings (International)'s earnings presentation, June 2015
Slide 1: Corporate Presentation: 2014/2015 Annual Results
@ }aSE(Be) SR 25 US. Sit FOOK HOLDINGS (INTERNATIONAL ) LIMITED (WA Rat HRY ZARA al) (Incorporated i in Bermuda with Limited Liability) Stock Code ARIA {t5% : 0590 > aENL TR | 2014/2015) 4E 44 bait CORPORATE PRESENTATION 2014/2015 Annual Results June 2015 1
Slide 2: Contents
CONTENTS 内容 Key Achievements 主要成就 Financial Review 财务亮点 Future Plans and Strategies 未来计划与策略 Open Forum 公开讨论 Core Competences 主要竞争优势 Company Profile 公司简介 2
Slide 3: Key Achievements
Key Achievements 主要成就 3
Slide 4: Key Achievements for FY2015
Key Achievements for FY2015 2015财年主要成就 2nd Highest Record 为纪录第二高 Milestone 里程碑 Revenue and profit attributable to equity Signed a Sightholder sales contract with De holders reached HK$15.9 billion and HK$1.6 Beers, world’s largest diamond producer, to billion respectively, second highest in the ensu
Slide 5: Financial Review
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Slide 6: Financial Highlights
Financial Highlights 财务亮点 FY15 vs FY13 CAGR FY2015 FY2014 Y-o-Y Change (HK$ m) (百万港元) 2015财年对比2013财年 2015财年 2014财年 按年变化 年复合增长率 Revenue 收入 15,923 19,215 -17.1% 9.0% Gross Profit 毛利 3,832 4,214 -9.1% 16.4% 1,976 2,309 -14.4% 14.7% Operating Profit 经营溢利 1,621 1,867 -13.2% 14.1% Profit for the Year 年内溢利
Slide 7: Healthy Financial Position
Healthy Financial Position 健康的财务状况 FY2015 FY2014 Y-o-Y Change (HK$ m) (百万港元) 2015财年 2014财年 按年变化 Average Inventory Turnover (Days) 1 209 138 71 平均存货周转 (日) 1 Inventory 存货 7,395 6,225 18.8% Net Cash 现金浄额 377 1,237 -69.5% Bank Borrowings & Gold Loans 银行借贷及黃金借貸 1,713 568 201.6% Gearing Ratio 债务比率 2 20.1%
Slide 8: Robust Operating Performance
Robust Operating Performance 稳健营运表现 (HK$M) (百万港元) 20,000 19,215 30% 24.1% 23.7% 23.2% 15,923 21.1% 21.9% 15,000 13,412 20% 11,907 10,000 13.6% 12.9% 8,091 12.0% 11.2% 12.4% 11.5% 10.2% 10% 11.0% 9.3% 9.7% 5,000 2,309 1,976 1,6141,369 1,501 1,867 1,621 1,046 891 1,246 0 0% FY2011 FY2012 FY2013 FY2014
Slide 9: Revenue and Profit Analysis
Revenue and Profit Analysis* 收入及溢利分析* Revenue by Market Revenue by Business Sales1 by Product 收入(以市场划分) 收入(以业务划分) 销售1(以产品划分) 12,552 9,231 11,920 74.9% ↓20.5% 78.8% ↓22.3% 60.2% ↓26.1% (78.0%) (84.1%) (67.2%) Retailing Hong Gold & 零售 Kong, Platinum Macau & 黄金及铂金 Overseas 578 香港、澳 ↓6.6% 3.6% (3.2%) 门及
Slide 10: Regional Revenue & Profit Analysis by Business
Regional Revenue & Profit Analysis by Business* 地区收入及溢利分析(以业务划分)* Hong Kong, Macau and Overseas Mainland China 香港、澳门及海外 中国内地 Revenue Revenue 收入 收入 578 95.1% ↓6.6% 14.4% 1,222 (96.8%) 11,330 (14.6%) ↓21.9% Licensing 30.5% ↓25.9% (39.0%) 品牌业务 Retailing Retailing 零售 零售 4.9% 590 (3.2%) 2,203 ↑24.3% ↑12.
Slide 11: Retail Revenue Analysis
Retail Revenue Analysis Retail Revenue by Product 收入 (以产品划分) 零售收入分析 Hong Kong, Macau and Overseas (% of Revenue) 香港、澳门及海外 Retail Revenue by Region (收入占比 %) 收入 (以市场划分) HK$4.08B 40.8亿港元 (↓ 8.9%) HK$7.25B 72.5亿港元 (↓ 27.8%) Mainland China (% of Revenue) (收入占比 %) 中国内地 HK$259M 2.59亿港元 (↑16.1%) HK$963M 9.6
Slide 12: Wholesale Revenue Analysis
Wholesale Revenue Analysis Wholesale Revenue by Product 收入 (以产品划分) 批发收入分析 Hong Kong (% of Revenue) (收入占比 %) 香港 HK$86M Wholesale Revenue by Region 100% 0.86亿港元 8% 7% 批发收入 (以市场划分) 4% 6% 15% (↑ 152.9%) Gem-set 珠宝 80% 2% HK$11M 0.11亿港元 (↓ 63.3%) 100% 60% 90% Gold/Platinum (others) 黃金 88% 87% 及鉑金(其他) 40%
Slide 13: Retail Revenue Analysis
Retail Revenue Analysis 零售收入分析 Y-o-Y change SSSG 按年变化 同店销售增长 FY2015 FY2014 FY2015 FY2014 2015财年 2014财年 2015财年 2014财年 Hong Kong & Macau -22% 46% -28% 24% 香港及澳门 Gold & Platinum -28% 58% -34% 36% 黄金及铂金 Gem-set -9% 25% -15% 4% 珠宝 Mainland China -26% 63% -30% 45% 中国内地 Gold & Platinum -33% 66% -36% 48% 黄金
Slide 14: Retail Revenue Analysis
Retail Revenue Analysis 零售收入分析 FY2014 SSSG FY2015 SSSG 2014财年 同店销售增长 2015财年 同店销售增长 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 第一季度 第二季度 第三季度 第四季度 第一季度 第二季度 第三季度 第四季度 Hong Kong & Macau 86% 33% 6% -12% -54% -20% -6% -22% 香港及澳门 Gold 131% 54% 15% -18% -65% -27% -5% -22% 黄金 Gem-set 21% 10% -6% -3% -20% -7% -9% -22% 珠宝 Main
Slide 15: Average Ticket Size & Average Selling Price
Average Ticket Size & Average Selling Price 每单平均消费及珠宝产品平均售价 Average Ticket Size Average Selling Price of Gem-set# 每单平均消费 珠宝产品平均售价# $ (in terms of respective currency ) $ (in terms of respective currency ) 元 (以相应货币计算) 元 (以相应货币计算) % *Self-Operated shops only 只限自营店 15 # Only included diamond, jadeite,
Slide 16: Total Operating Expenses
Total Operating Expenses 总经营开支 (HK$M) (% of Revenue) (百万港元) (收入占比%) 3,000 14.0% 13.1% 12.0% 2,500 10.8% 10.8% 10.0% 2,000 2.5% 450 2.3% 392 (↓12.9%) 158 1.0% 8.0% 124 0.6% (↑27.4%) 1,500 87 0.5% 59 (↓32.2%) 0.4% 315 2.4% 6.0% 100 0.7% 738 686 3.6% (↑7.6%) 4.6% 1,000 67 0.5% 4.0% 411 3.1% 500 2.0% 72
Slide 17: CAPEX
CAPE RAT SL (HK$M) (FHS 70) 350 5 300 250 + 200 - 150 + 100 + 50 5 307 29 255 184 42 46 FY2013 201317 = © Manufacturing Plants jg07~ mPremises 7\ll: FY2014 FY2015 201407 = 2015%t == u Office Renovation & Equipment A=)24(271i2& mShops [£38 17
Slide 18: Inventory Analysis
Inventory Analysis 存货分析 Closing Inventories 期末存货 (HK$M) (↑19%) (百万港元) 7,395 FY2014 FY2015 2014财年 6,225 (↑18%) 2015财年 5,440 4,626 (↑22%) 1,955 1,599 Inventory Turnover Days by Product Inventory Turnover Days by Market * 期末存货周转 (以产品划分) 期末存货周转 (以市场划分) * FY2015 FY2014 2015财年 2014财年 FY2015 FY2014 Gold 黄金
Slide 19: Financial Contribution from 3D-GOLD Investment
Financial Contribution from 3D-GOLD Investment 金至尊财务贡献 Profit / (Loss) Contribution 损益贡献 HK$M Revenue Contribution 百万港元 营收贡献 Interest Income on Convertible Bonds 1 可换股债券利息 Contribution to the Group’s HK $159M Wholesale Revenue Valuation Gain on Convertible Bonds 对集团批发收入的贡献 1.59亿港元 10 可换股债券估值得益 Whole
Slide 20: Future Plans & Strategies
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Slide 21: Key Strategies
Key Strategies 主要策略 Revenue Growth 收入增长 Target 100 net shop addition, including 20 self-operated shops 计划净开设约100 间新品牌店, 当中包括20间自营店 Explore joint venture opportunities in Mainland China to expand 于国内探索合资机会，以扩大市场份额 market share Double revenue from e-commerce and add 3 new platforms 将电商销售的收入翻一翻，增多3个电子商
Slide 22: Extensive Retail Network
Extensive Retail Network 庞大零售网络 As at 19 Jun As at 31 Mar 于6月19日 于3月31日 Y-o-Y 2015 % 2015 2014 2013 Change 按年变化 Hong Kong 香港 50 3.6% 48 45 37 +3 Macau 澳门 10 0.7% 10 10 9 0 Self-operated 自营店 - Tier I 一线 21 1.5% 20 20 21 0 - Tier II 二线 32 2.3% 32 37 34 -5 - Tier III & IV 三线及以下 27 2.0% 27 26 23 +1 Sub-
Slide 23: Global Distribution Network
Global Distribution Network 庞大零售网络 As at 31 Mar 2015 Northern China 华北区 于2015年3月31日 Self-operated 自营店: 14 (21) Licensed 品牌店: 422 (394) Total no. of shops 总数: 436 (415) Location coverage 覆盖范围: 13 Provinces, 2 Municipalities, a total of 121 cities 13省、2直辖市,共121城市 1,319 (1,208) Southern China 华南区 Self-
Slide 24: Network Expansion and CAPEX in FY2016
Network Expansion and CAPEX in FY2016 2016财年零售网络扩充及资本开支 Hong Kong Macau Mainland China Overseas E-commerce 香港 澳门 中国内地 海外 电子商贸 Optimise retail Target new Expand into lower- Ad-hoc basis Add 3 new network in Hong casinos and tier cities 按市场情况而定 platforms Kong and seek resorts for future 于较次级线城市发 增多3个平
Slide 25: E-commerce
E-commerce 电子商贸 Platforms Product Offering Target in FY16 销售平台 产品供应 2016财年目标 9 channels in total as at Focus on lower value Add 3 new platforms March 2015 in Mainland products of below RMB3,000 增多3个销售平台 China, including for young customers Double the revenue from Tmall.com, VIP.com, 主要提供3,000人民币以下的
Slide 26: Online Marketing
Online Marketing 网络营销 With booming internet development and change in the internet users’ habits: 在互联网篷勃发展以及互联网用户使用习惯的改变下： Shift from desktop advertising to mobile platforms 从桌面广告至手机移动平台 Make efficient use of social media 有效运用社交网络 Allocate more resources on video website 分配更多资源予视频网站 26
Slide 27: Open Forum
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Slide 28: Core Competences
Core Competences 核心竞争优势 28
Slide 29: Vertical Business Model
Vertical Business Model 垂直商业模式 Vertical business model helps strengthen operational efficiency, cost effectiveness, market responsiveness and supply reliability to enhance competitiveness 垂直商业模式有助强化营运效率、成本效益、市场反应能力及供应可靠度，以增强竞争力 Sourcing Design Production Distribution 采购 设计 生产 分销 Sourcing of raw Deve
Slide 30: Quality Assurance
Quality Assurance 质量保证 Dual Quality Assurance Authentication Service 双重质量保证 验证服务 Awarded “Quality Gold Mark” Attained “Natural Jadeite” by Gems NDQA Mark by DFHK No Fakes Logo & passed regular checking by “Authentication of & Jewelry Trade 获得”天然钻石质量保 正货标志 HK Customs Natural Fei Cui Association of Ch
Slide 31: Branding
Branding 品牌推广 Awards 奖项 Continuous branding efforts well-received by the industry and market 不断于品牌建设方面作出的 努力，获得业内及市场的认 可 Brand Building 品牌建设 Won Hong Kong Top Brand Ten Year Uphold the theme of “Love is beauty” through mass Achievement Award of the 2013 Hong Kong Top Brand Awards media advertising a
Slide 32: Excellent Service
Excellent Service 卓越服务 Complimentary Certificate for Jadeite & Diamond 免费翡翠及钻石证书 Professional Sales Team 专业的销售团队 Product Photo and Comprehensive Checklist on Invoice 销售单上印有产品照片及综合清单 Gem Examination Microscope at shop 宝石显微镜检查 Free On-site Instant Engraving Service 免费即时刻字服务 Complimentary Gift Cards 免费
Slide 33: Appealing Product Design
Appealing Product Design 具吸引力的产品设计 Professional jewellery design teams in Hong Kong, Shenzhen and Nansha in the Mainland China 于香港、深圳及中国内地南沙设有专业设计团队 Attained over 150 awards 获得超过150个奖项 “Origin of Symbiotic Harmony” “共生‧共融” Award in Open Group “Inspiration of Live” 公开组”生活灵感”得奖作品 Chuk Kam Jewellery De
Slide 34: Corporate Social Responsibility
Corporate Social Responsibility 企业社会责任 Introduced the “Love is Beauty” charity gift set and donated a portion of the sales proceeds to the “Free Lunch for Children Fund” 推出”爱很美”慈善礼盒，并将部分 收益捐予”免费午餐基金” Sponsored "Tung Wah Charity Gala 2014" held by the Tung Wah Group of Hospitals 赞助「欢乐满东华2014慈善晚会」 Spo
Slide 35: Environmental Protection
Environmental Protection 环境保护 Won “Prime Awards for Eco-Business - Eco Jewellery Corporation (Gold Award)” for three consecutive years 连续三年荣获「都市盛世环保企业奖 - 环保珠宝企业(金奖)」奬项 Titled “Hong Kong-Guangdong Cleaner Production Partners (Manufacturing)” 获颁发”粤港清洁生产伙伴(制造业)标志” Won the “5 Years + Entrant” and “Green
Slide 36: Company Profile
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Slide 37: About LUKFOOK
About LUKFOOK 关于六福 A leading jewellery retailer in Hong Kong and Mainland China 香港及中国内地主要珠宝零售商之一 Main Business 主要业务 The Group principally engages in the sourcing, designing, wholesaling, trademark licensing and retailing of a variety of gold and platinum jewellery and gem-set jewellery products 集团主要
Slide 38: Supply Chain
Supply Chain 供应链 01 02 03 04 Sourcing and Designing Production Quality Control Distribution 采购与设计 生产 品质管制 分销 (from quality suppliers) (自优质供应商) Self-operated Shops Raw Materials 自营店 原材料 Retail revenue 零售收入 E-Commerce Platforms 电子商贸销售平台 Retail revenue 零售收入 Manufacturing Plants 生产厂房 Licensed Shops 品牌店
Slide 39: Licensing Model
Licensing Model 品牌模式 Joining Fee 加盟费用 Wholesale Revenue from Licensing Fee Licensing Model Royalty Income Revenue 品牌费用 品牌业务收入 专利收入 批发收入 Consultancy Fee 顾问费用 Payment terms 付款方式: Cash On Delivery交货付款 Advantages Advantages 优点 Requirements 条件 Better understanding of local market Initial investment: Min.
Slide 40: Licensing Model
Licensing Model 品牌模式 Stringent control system applied on both self-operated and licensed shops 自营店和品牌店采用统一的监管系统 Pricing Control 价格监管 Operational Control 营运监管 Centralised control on discount policy 中央折扣政策 Whistle-blowing System and Reward Scheme Standardised retail price through centralised 鸣笛系统及奖励计划
Slide 41: Gold Hedging from Business Perspective
Gold Hedging from Business Perspective 从商业角度看黄金对冲 Historical Cost (% of inventory) 历史成本 (存货占比) (USD per ounce) 美元/盎司 100% 50% Conservative view on gold price* 对黄金价格的保守看法 Hedging Ratio: ~ 50% of inventories ≥ $1,100/ ounce 对冲比率: ≥$1,100/盎司之存货的50% 50% 1,100 Our View Long-term : Upward trend 长线：上升趋势 Sa
Slide 42: Gold Price Changes & GP% of Gold
Gold Price Changes & GP% of Gold 黄金价格波幅及黄金毛利率 Financial Year 财年 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Gross margin of gold sales** 10.2% 9.0% 11.9% 8.4% 11.2% 12.2% 11.8% 10.3% 11.9% 13.0% 黄金销售毛利率 Gross margin with gold hedging impact# 8.3% 8.3% 10.1% 8.5% 10.4% 11.3% 11.4% 10.4% 12.3% 1
Slide 43: Disclaimer
Disclaimer 免责声明 This presentation has been prepared by Luk Fook Holdings (International) Limited (the “Company”), and the information contained herein has not been independently verified. This presentation does not make any explicit or implicit representations or warranties and no undue reliance sho
Slide 44: Thank You!
7\ 2 Re LUKFOOK GROUP Thank You!
Luk Fook Holdings (International) — FY2015 Earnings Presentation on 6ix