Post on 18-Dec-2015
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Corporate PresentationMay 2006
Warderly International Holdings Limited
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Contents
1. Company Introduction1. Company Introduction
2. Business Review2. Business Review
3. Production Plant 3. Production Plant
4. Distribution & Marketing 4. Distribution & Marketing
5. Future Plan & Products5. Future Plan & Products
6. Financial Summary6. Financial Summary
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Company Snapshots
1989 Established by Mr. K.W. Yeung, ChairmanA fully integrated ODM / OEM manufacturer offering wide variety ofelectrical appliances
2002 Listed on the Main Board of Hong Kong Stock Exchange (SEHK: 607)
2003 The Cathay Investment Fund Limited (Irish Stock Code: CATHAYI ID)acquired 10% of Warderly’s shares
2005 Appointed as authorized distributor of global household appliancesbrand “GE Appliances” in Hong Kong and Macau
Introduce advanced home and vehicle security alarm devices andkitchen appliances to diversify product portfolio
Arranged a syndicated loan of HK$200 million for factory expansion and financial working capital
2006 Will complete production expansion
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Corporate Mission
To be the leading integrated
ODM / OEM manufacturer
offering a wide variety of
electronic and electrical appliances
for worldwide markets
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Business Review
• Fans & Heaters Division:– Quartz Heater experienced a strong sales growth
– Product diversification: Introducing new fan and heater products
– Successfully launch the panel heater models which receive a very positive response from northern European markets
– Enhance the product portfolio to eliminate the adverse impact brought by rise in raw material price
– Fan and heater products accounted for 94% of the overall Group’s turnover in 2004 / 2005
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Business Review
2. Kitchen Appliances Division:
NewPartner
Partnered with Triangle
Design House (French
designer) to develop
a total of 21 new models
Attracted
new customers like
Westbend,
Black & Decker, Bettycrocker, Bush, Siplec
NewClient
Achieved total sales of
20M for Q1 to Q3 (10% of
total sales)
SalesQ1 – Q3
Gross margin: 15-25%
(depends on product type)
GM15-25%
NewModel
Launched 15 new models
including coffee makers,
blenders, food processors
& hand mixers
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Business Review
Re-positioning
Repositioningstrategy to
switch emphasis from home electronics products to specialized electronics products,
the latter provides stable margin
PrimaryObjective
Introducing electronics elements to
existing home appliances
andbroadening
product range
To manufacture transponders for
an Australian technology
company(used for vehicle &
home security, vehicle tracking & monitoring)
Contract value
exceeds
HK$ 70 million
Car Alarm
Gross margin: 8-12%
(depends on product type)
GM8-12%
3. Electronics Products Division:
Achieved total sales of
6M for Q1 to Q3
Sales
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Business Review
4. Distribution Division:
Signed GE authorizeddistributor contract
in January 2005
In the process of building up local distribution network
including retails shops like GOME, CMK,
Chung Yuen, SOGO, UNY, Best Denki (over 100 outlets)
Start ODM business with Hong Kong
major importers such as Li & Fung, Shun Hing
Due to late shipment of GE products, sales actually
commenced in Q2
Further expand distribution of
in-house brands “Regent” & “Homemax”
products
Achieved sales of 9M for Q1 to Q3
Gross margin: 15-20% (depends on product
type)
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Production Plant
1. Dongguan Plant
Total Gross
Floor Area
93,500m2
No. of production
staff & workers2000
Assembly linesFans & Heaters x 5
Specialized electronics products x 4Automatic powder coating x 3
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Certifications
Dongguan Ka Lee Electrical Co. Ltd.
ISO 9001 (Year 2000) successfully
renewedAlso obtained 3C Certificate
for fans & heaters
(available for sales
In the PRC)
Attestation for
conducting on-site witness projects(TUV
Hong Kong Ltd.)
Certification of
Qualification (UL Int’l Ltd.)
to participate in Underwriters Laboratories
Inc. Witnessed Test Data Program
Air-to-Air Heat Recovery
Ventilator was accredited 2005
Hong Kong Industries Awards:
Machinery and Equipment
Design: Certification of
Merit
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Certifications
Air-to-Air Heat Recovery Ventilators
Mosquito TrapsUse TiO2, Co2, PCO to
capture mosquitoes
Anti-Virus Ozone
VentilatorsCo-invented &developed by
Newstarts (HK) Ltd.
(sub. of CityU)
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Vertically Integrated Production Process
Coiling
Coil Insertion
Fan Guard ProductionMetal Processing
Plastic Injection
Molding
Motor Assembly
Semi-automatic Painting
Product Assembly
photo
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Flexibility Combats Seasonality
Flexible Manufacturing BaseFlexible Manufacturing Base
AutumnAutumnHeaters;
Kitchen Appliances;BBQ Grills;
EMS
SpringSpringFans;
Kitchen Appliances;Mosquito Traps;
BBQ Grills
WinterWinterHeaters;
Kitchen Appliances; BBQ Grills;
EMS
SummerSummerFans;
Kitchen Appliances;Mosquito Traps
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Robust R&D
• Over 200 professional engineers, product designers and technical staff
• More than 50 new products and/or models launched in every year
• New product divisions: – Kitchen ware products– Consumer electronics products
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Diversified & Global Clientele
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Marketing & Promotion
Local Exhibitions:Hong Kong
Electronics Fair 2006Hong Kong
Spring Fair 2006
PRC Exhibitions:Canton Fair 2006
3C Expo 2005
Overseas Exhibitions:2005 ISH Frankfurt
Hong Kong In Style, Dubai 2006
Domotechnica 2006
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Future Plan: Growth Strategy
• Electrical appliances products range from
electrical fans to heaters, oil-filled radiators, as
well as other household kitchen appliances
• Brand names including “Regent”, “Housely” and
“Homemax”
• Introduce electronic-based elements to home
appliances products
• Manufacture specialized electronic products
such as security alarm devices for vehicle
tracking and monitoring
• Introduce new models for heaters (quartz
heaters and panel heaters)
Product Diversification
• Continuously strengthen overseas market
presence in Europe, North America, etc
• Expand sales and distribution network to new
emerging markets such as the PRC and other
Asian countries
• Appointed as the Authorized Distributor of “GE
Appliances” in HK & Macau
Market Expansion
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BBQ GrillBBQ Grill
Future Products
Kitchen Appliances (21 new models)
Kitchen Appliances (21 new models)
Wet & Dry Vacuum CleanerWet & Dry Vacuum Cleaner
Car Alarm Transponders
Car Alarm Transponders
Automatic Towel DispenserAutomatic Towel Dispenser
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Financial Summary
(HK$’000)
Turnover
Gross profit
Profit attributable to shareholders
Basic EPS
Total dividend per share
May 05 – Jan 06
202,118
29,318
6.95 HK cents
78,891
N/A
May03 – Apr04
291,219
67,883
17.2 HK cents
129,272
4.0 HK cents
- HK cents 1.2 HK cents
- Final
- Interim
Dividend payout N/A 30.2%
May 04 –Apr 05
337,499
58,014
13.7 HK cents
132,245
2.5 HK cents
1.5 HK cents
29.2%
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Turnover by Markets
Europe60%
Asia (inl. the PRC)
26%
North America
9%
Australia & New Zealand
4%Others
1%
Europe57%
Asia (inl. the PRC)
27%
North America
14%
Australia & New Zealand
1%Others
1%
Europe62%
Asia (inl. the PRC)
25%
North America
13%
May 05 – Jan 06
May 03 - Apr 04
May 04 - Apr 05
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Local Distribution 4%
Air Ventilation Products
2%
Turnover by Products
Fan60%
Convention Heater, Quartz Heater & Oil-filled Radiator
36%
Motor3%
Others 1%
Fan56%
Motor2%
Others 2%
Fan27%
Kitchenware10%
Others 2%
Electronics3%
May 05 – Jan 06
May 03 - Apr 04 Apr 04 - May 05
Convention Heater, Quartz Heater & Oil-filled Radiator
38%
Convention Heater, Quartz Heater & Oil-filled Radiator
54%
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Solid Financial Foundation
31 October 2005(HK$’000)
Cash position
Gearing ratio (Net Debts/ Total Assets)
Inventory turnover days
Debtors turnover days (Exclude discount bills)
Net asset value
98,723
27%
190 days
90 days
325,010
Current ratio 2.05X
30 April 2005
127,227
14%
122 days
88 days
315,117
1.91X