about excelpoint technology limited ... - listed company
TRANSCRIPT
ABOUT EXCELPOINT TECHNOLOGY LIMITED
Excelpoint Technology Ltd is a design and development engineering solutions provider serving OEMs, CMs and sub-contractors in various industries including telecommunications, consumer electronics, industrial and instrumentation electronics, automotive, computers and computer peripherals.
OUR BUSINESS MODEL
Design & Development Services
Supply Chain Management
Value Added Distribution
Field Application Services
Distribution
We are the “Solutions Partner”; providing ”One-Stop Solution” to meet customer requirement. A value chain service from product concept, development, attain international approval, manufacturing; till door-step delivery.
ClientS/W
Develop-ment
H/W Develop-
ment
Proto Develop-
mentProduct Concept
Product Test & Qual
Pre/MassProduction
Mktg & Sales
After Sales
Our Design & Development Services
OUR ROLE IN THE CUSTOMER’S VALUE CHAIN
Exc
elpo
int V
alue
Cha
in Reference Design; Design Review, Services and Applications
Production Test Plan & Systems
Pre-testing International Type Approval & Qualifications
Turnkey Project Management
Development, Prototype, Mass Production & Logistics
Marketing & Sales
A REVIEW OF OUR Q2 PERFORMANCE
AN OPERATIONAL REVIEW OF Q2
BY BUSINESS SEGMENT
• DESIGN-IN
• DISTRIBUTION
BY PRODUCTS AND SERVICES
• GSM / TELECOMMUNICATION
• BLUE TOOTH SOLUTIONS
• OTHER SOLUTIONS
AN OPERATIONAL REVIEW OF Q2
BY GEOGRAPHIC LOCATIONS
• China
• Singapore
• Malaysia
• India
• Other Asian countries
OUR BUSINESS STRATEGY
DESIGN-IN
• Leverage and complement upon the strengths of our principal’s chipset solutions.
• Focus on our value add on creating new applications, cost down, and productization.
• Differentiate by controlling software embedded into our solutions.
OUR BUSINESS STRATEGY
DESIGN-IN
• Provide risk sharing models with low Non Recurring Engineering charges (NRE) to encourage customers to adopt our solutions.
• Develop innovative reference solutions to assist our customers to differentiate themselves from their competitors.
OUR GEOGRAPHIC REACH
Excelpoint has a network of 33 subsidiaries and representative offices located across the Asia Pacific.
EXCELPOINT’S GEOGRAPHIC FOOTPRINTS
SINGAPOREHeadquarter
MALAYSIA• Kuala Lumpur • Penang
THAILAND• Bangkok
PHILIPPINES• Manila
CHINA• Beijing• Chengdu• Xian • Nanjing• Qingdao• Shanghai • Xiamen• Shenzhen
• HONG KONG
INDIA• New Delhi• Mumbai • Prune • Hyderabad• Bangalore
AUSTRALIA• Sydney
OUR FINANCIAL PERFORMANCE
REVENUE(in S$'000)
145,626
287,455
128,332258,662
0100,000200,000300,000400,000500,000600,000
2003 Rev 2004 Rev
Q1 Q2
273,958
546,117
99.3%
NET PROFIT AFTER TAX (in S$'000)
1,499
5,915
4,355
58902000400060008000
1000012000
FY 2003 FY 2004
Q1 Q2
2,088
10,270
392%
NET PROFIT AFTER TAX MARGIN (%)
0.5
1
1.7
2.1
0
0.5
1
1.5
2
2.5
Q1 FY03 Q2 FY03 Q1FY04 Q2FY04
CORE BUSINESSES
• Design-in Services
• Distribution Services Distribution Services 36%*
Design-in Services 64%* * 2Q FY 2004 BY REVENUE
REVENUE BY BUSINESS ACTIVITY (in S$'000)
71,114
184,49774,512
102,958
0
100,000
200,000
300,000
Q2 2003 Q2 2004
Design-in Distribution
36%
64%
49%
51%
REVENUE BY GEOGRAPHIC LOCATIONSQ2 2004
Others3%
China 72%
India4%
M'sia5%
S'pore 16%
S'pore M'sia India China Others
6054 49 48
81
6455 60 50
4034
32
0102030405060708090
Debtors' T/O Creditors' T/O Inventory T/O
WORKING CAPITAL MANAGEMENT(Days)
2002 2003 Q1 FY2004 HY FY2004
CASH FLOW (S$ ‘000)
Q2 2004 HY2004• Operating cash flows before
reinvestment in working capital 8,503 15,243
• Net cash flows from/ (used in) operating activities 940 (5,482)
• Net cash flows used in investing activities (366) (660)
• Net cash flows from financing activities 31,993 64,436 (Includes $34 million from IPO proceeds)
• Cash & Cash equivalents at period end 78,878 78,878
KEY FINANCIAL HIGHLIGHTS
Revenue (S$m) 287.5 145.6 97.4 546.1 274.0 99.3
Op Profit (S$m) 8.3 2.4 241.6 14.7 4.0 271.7
PAT (S$m) 5.9 1.5 194.6 10.3 2.1 392.0
EPS (cents) * 1.24 0.43 187.5 2.15 0.6 258.2
ROE (%) 8.5 7.0 21.4 14.7 9.8 50.0
FY Q2-04 Q2-03 Var.(%) 1H-04 1H-03 Var.(%)
* For comparative purposes, EPS is calculated based on profit attributable to shareholders and the weighted average post-invitation share capital of 477,955,854 (Q2, 1H 2003: 347,971,200).
OUR ROAD MAP AHEAD
THE CHALLENGES
• The temporary impact of the soft landing in China.
• Improving margins.
• Upgrading the quality of our human capital.
• Expanding R&D solutions beyond telecommunication.
• Expansion into new markets.
PROSPECTS
• Penetration into remote areas of China e.g. JiangsuProvince and North Eastern Provinces for the GSM business.
• Contributions will come from new solutions that the Group has developed. There has been market interests in these solutions for example set up box, peripherals for GSM handsets, blue tooth, high end audio video etc.
• Enlarge market penetration e.g Middle East, Pakistan and South East Asia countries e.g. Vietnam.