2018 Q4 Business Update KING’S FLAIR INTERNATIONAL

Transcript:2018 Q4 Business Update KING’S FLAIR INTERNATIONAL:
2018 Q4 Business Update KING’S FLAIR INTERNATIONAL (HOLDINGS) LIMITED 科勁國際（控股）有限公司 （Stock code: 6822.HK） Business Model Value Proposition Manufacturers Brandowners Raw material supplier End customers Ability to gain steady order Eliminate their receivable risks Technological enhancement and production support Long-term working relationship R&D input Cost-efficient procurement Material know-how Reliable production Timely deliveries Quality assurance to avoid product recall Customer reach through extensive client network Centralized order through aggregating demand of customers First-hand material experience and feedback Reliable and high-quality products Fashionable design Value-added product engineering Extensive product assortment One-stop Solutions provider End-to-end Kitchenware and Household Product Solutions Provider 4 Idea Generation Industrial Design Retail Manufacture Material Sourcing QC Logistics Marketing Light asset business model with outsourced manufacturing Collaborates with over 200 outsourced manufacturing plants which are located in the Guangdong Province 20 of the plants are key assembly plants exclusively serving King’s Flair Mold fabrication and modification Production engineering Effective quality and production control Engages independent third party for QC A team of approximately 90 QC experts exclusively serving King’s Flair International brandowners Retailers Self-developed retail platform Online stores: Tmall, Amazon.cn, JD.com, Taobao, Yitiao.com Number of POS in China: ~800 (as at 30 June 2018) Number of brandowners: 100+ (as at 30 June 2018) Raw material selection Long-term partnership with raw material suppliers, can easily obtain the latest raw material for product design Adopts an effective centralized procurement system for clients, achieving economies of scale Market research and analysis Concept creation Product design, development and engineering capabilities Popular products: containers, cheese slicer, ice-cream scoop and mandolin slicer Competitive Advantage 5 Decline in oil prices and devaluation of RMB Differences between King’s Flair and traditional traders Differences between King’s Flair and traditional manufacturers Proven margin enhancement through value-added solutions Due to better cost control Extensive Assortment of Kitchenware and Household Products 6 King’s Flair (6822.HK) is a kitchenware and household products provider for more than 20 years, mainly engaging in the design, development and supply of an extensive assortment of kitchen and household products Drinkware Tools and Gadgets Bakewares and Accessories Food Preparation Products Storage and Accessories Sinkware Financial and Business Review 1H18 Financial Overview 8 Increase in revenue was mainly due to the increasing sales in the PRC, as well as orders from special projects Gross Profit and Gross Profit Margin Analysis 9 HK$ million Gross profit & gross profit margin Gross profit margin analysis Gross profit margin decreased mainly due