kunda presentation revised 16 july 2008 5.35pm.ppt this presentation nor any of its contents may be...

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11/7/2008 1 CHINA KUNDA TECHNOLOGY HOLDINGS LIMITED 24 Raffles Place, #25-03 Clifford Centre, Singapore 048621 Tel: (65) 6534 3567 Fax:(65) 6534 3566 www.chinakunda.com Important Notice 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 whatsoever. No person shall be bound to enter into any contract or binding legal commitment and no monies or other form of consideration is to be accepted on the basis of this presentation. Any offer of securities will be made in or accompanied by a copy of the prospectus or profile statement. Anyone wishing to acquire securities will need to make an application in the manner set out in the prospectus or profile statement. This presentation was prepared exclusively for institutional investors, relevant persons as defined in section 275(2) of the Securities and Futures Act (“SFA”) and/or persons to whom an offer referred to in section 275(1A) is to be made before a prospectus or profile statement is registered by the Monetary Authority of Singapore. Neither this presentation nor any of its contents may be used without the prior written consent of CHINA KUNDA TECHNOLOGY HOLDINGS LIMITED (the “Company”). Information contained in this presentation document does not constitute a part of the prospectus.

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11/7/2008

1

CHINA KUNDA TECHNOLOGY HOLDINGS LIMITED中国群達科技控股有限公司中国群達科技控股有限公司中国群達科技控股有限公司中国群達科技控股有限公司24 Raffles Place, #25-03 Clifford Centre, Singapore 048621

Tel: (65) 6534 3567 Fax:(65) 6534 3566

www.chinakunda.com

Important NoticeThis 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 whatsoever.

No person shall be bound to enter into any contract or binding legal commitment and no monies or other form of

consideration is to be accepted on the basis of this presentation.

Any offer of securities will be made in or accompanied by a copy of the prospectus or profile statement. Anyone

wishing to acquire securities will need to make an application in the manner set out in the prospectus or profile

statement.

This presentation was prepared exclusively for institutional investors, relevant persons as defined in section 275(2) of

the Securities and Futures Act (“SFA”) and/or persons to whom an offer referred to in section 275(1A) is to be made

before a prospectus or profile statement is registered by the Monetary Authority of Singapore. Neither this presentation

nor any of its contents may be used without the prior written consent of CHINA KUNDA TECHNOLOGY HOLDINGS

LIMITED (the “Company”).

Information contained in this presentation document does not constitute a part of the prospectus.

11/7/2008

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Agenda

1 Corporate & Business Overview

2 Competitive Strengths

3 Financial Highlights

4 Industry Outlook

5 Business Strategies & Future Plans

Corporate & Business Overview

Note: The above properties are owned by Shenzhen Precision

11/7/2008

3

We are a provider of precision Moulds, Plastic Injection Parts and IMD products to theelectronics, electrical, automobile and specialised devices industries.

Our plastic engineering solutions include design, research and development of PlasticInjection and IMD Technologies.

Our Business

High precision automobile MouldIMD Product

China Kunda(SG)

Yick Kwan Tat

(HKSAR)

KundaMould

(HKSAR)

KundaIndustrial

(BVI)

100 % 100 %100 %

Group Structure

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Milestones

1998

2000

2002 2005

2006

2007

Proposed Initial Public

Offering

Establishment of Yick Kwan Tat

Establishment of Yick Kwan Tat

Establishment of Processing

Enterprise in Shenzhen

Establishment of Processing

Enterprise in Shenzhen

Commenced product and market research

on Moulds and IMD Technology

Commenced product and market research

on Moulds and IMD Technology

Shifted into higher value added precision Moulds and IMD products

Shifted into higher value added precision Moulds and IMD products

R&D collaborationthrough Shenzhen

Precision with Shenzhen Huazhong University of

Technology Research Institute, which is a

National Key Laboratory for Plastic Injection

Simulation and Moulding Technology

R&D collaborationthrough Shenzhen

Precision with Shenzhen Huazhong University of

Technology Research Institute, which is a

National Key Laboratory for Plastic Injection

Simulation and Moulding Technology

Set up a joint post doctoral scientific research base through Shenzhen Precision with South China University of Technology

Set up a joint post doctoral scientific research base through Shenzhen Precision with South China University of Technology

Collaboration with Shenzhen Precision

Provision of technical services for PRC sales

Outsourcing of Mould and IMD product

Competitive Strengths

Strong R&D capabilities

Well-established business relationships with customers

Quality products and services

Experienced management

Processing Enterprise

Manufacturing base for Plastic Injection Parts in

the PRC

R&D collaboration

Business Model

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i) Sale of the following –• High-precision Moulds for Plastic Injection• Plastic Injection Parts• Plastic In-mould Decoration (IMD) products ii) Provision of technical servicesiii) Trading of chemical products and metal parts used in Plastic Injection (“Others”)

Industry

Income from Technical Fee Agreement for 9M2008 is HK$28.0 m

Our Principal Activities

� In 9M2008, automobile Moulds account for 46.1% of our total Moulds revenue

� Our automobile Moulds customers include Magna International Group and Venture Group, etc.

Moulds

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1. Plastic air intake manifold Mould

� Superior in performance and estimated to improve fuel efficiency by 8% compared to traditional steel

parts

2. Automotive Low pressure Moulds

� Used mainly in the production of automobile interior parts

� In low pressure molding, the upholstery materials are directly molded onto the plastic interior trim

- eliminates the use of toxic adhesives to glue the upholstery to the Plastic Injection Parts

Moulds

� Used in electronics, electrical, automobile and specialised devices industries

� We provide an integrated manufacturing services

� Our parts are used in the products of KAZ, Whirlpool and Honeywell

Plastic Injection Parts

Design FabricationManufacture of Plastic Injection

Parts

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� In-mould decoration (“IMD”) products are technically challenging products to

manufacture requiring expertise from several fields and stringent production

and quality control

� Unlike traditional plastic injection parts, IMD product

i. Does not require further processing

ii. Is more durable

iii. Offers better aesthetics

iv. Is more environmentally-friendly as the decorative materials are enclosed

within the plastic part

� Used in products of

IMD Products

� We provide technical service on Moulds and IMD technology to Shenzhen

Precision

� Shenzhen Precision would principally sell to PRC customers while our Group

focuses on international customers

� The fees are calculated according to revenue of Shenzhen Precision

� W.e.f 1st Oct 2007, the fees are charged as follow:

% of revenue Moulds IMD products

Base fee 25.0% 25.0%

Additional fee* 0.6% of revenue for every percentage point of

gross margin above 35.0%

0.65% of revenue for every percentage point of

gross margin above 28.0%

* Additional fee is subject to Shenzhen Precision achieving a net profit margin of at least 3.0% on its

overall operations

Technical Service

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Competitive Strengths

Competitive Strengths

Strong product R&D

capabilities

Experienced management

team

Commitment to quality

products and services

Well-established

relationships with customers

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Experienced management teamExperienced management teamExperienced management teamExperienced management team

� Our Executive Directors and Executive Officers has an average of more

than 10 years of experience in their respective fields

� Our Chairman and CEO is the Technical Advisor to the PRC National Key

Laboratory of Material Forming and Mould Technology

Commitment to quality products and services

� Work closely with Shenzhen Precision to ensure consistent delivery of quality and reliable products

Competitive Strengths

� R&D team of more than 20 PRC nationals and expatriate engineers and

experts

� Collaboration, via Shenzhen Precision, with

1. Shenzhen Huazhong University of Technology Research Institute

(National Key Laboratory for Plastic Injection Simulation and Moulding Technology approved by Ministry of Science and Technology)

2. South China University of Technology

on postdoctoral scientific research

Competitive StrengthsStrong product R&D capabilities

11/7/2008

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Low pressure moulding technology

� Awarded 粤港关键领域重点项目突破 “Guangdong and HKSAR Key Area

Important Project Breakthrough” by Science and Technology Bureau of

Guangdong Province

In-Mould Decoration Products

� Successfully developed 1st batch of IMD products in 2005

� In June 2007, a panel of 3 technical experts appointed by the Intellectual

Property Center of the Ministry of Science and Technology carried out a

technical review of 6 of our IMD technologies. They opined that the 6

technologies were not commonly known to engineers in this field and cannot

be obtained through the public domain

Competitive Strengths

High mid-end automobile engine air-intake manifold injection mould

� Recommended by 中国模具工业协会技术委员会 (Technical Committee of

PRC Mould Industry Association) to be enlisted in PRC “Important National

New Products Promotion Plan” in 2006

� The Committee was of the view that the technology has reached advanced

international standard and is a first in the PRC

� In another technical attestation organized by 深圳市科技中介同业公司(Shenzhen City Technology Zhongjie Tongye Co., Ltd) and the panel opined

that our Mould had successfully resolved the technical difficulty of producing

plastic air intake manifold and filled a technology vacuum in PRC

� The panel added that our technology was comparable to advanced

international standard

Competitive Strengths

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� A specialised CAD/CAE software system used in Mould design

� A computerised control system which allow ordinary Plastic Injection machines to

perform low pressure plastic injection molding

� More moulds to produce automobile interior & exterior parts

� Moulds for aircraft interior parts

� Further development on IMD technology to produce IMD products with deep

cavities and uneven surface contours and apply these technologies to produce

larger and more complex products such as automobile and aircraft interior

trimmings and laptop covers

Competitive StrengthsR & D development

� Good track record and reputation in precision Moulds, Plastic Injection Parts

and IMD products

� Over 55 customers across 12 countries

� Established relationships with OEMs and ODMs for international automobiles

and electronics brand names such as KAZ, Honeywell, Whirlpool, Philips,

Sanyo, Walt Disney, Ford, Mitsubishi, BMW, VW, Audi

Competitive Strengths

Well-established relationships with customers

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Financial Highlights

HK$’m

Financials

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HK$’m

Financials

Financials

Revenue breakdown by productsHK$’mHK$’mHK$’mHK$’m

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14

FinancialsGross Profit breakdown by productsHK$’m

Gross Profit Margin breakdown by products

Financials

11/7/2008

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Revenue breakdown by geographic marketsHK$’mHK$’mHK$’mHK$’m

Financials

Financials

HK$’m

Revenue breakdown by geographic markets

11/7/2008

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Technical Fee BreakdownHK$’m

Financials

HK$’m FY2005 FY2006 FY2007 9M2007 9M2008

Revenue 33.0 58.0 120.1 83.1 76.6

Gross Profit 7.0 14.5 39.8 26.6 23.9

Technical fee 1.0 7.6 18.8 13.5 28.0

Selling and Admin exp (3.3) (4.7) (5.2) (3.5) (6.6)

Profit before tax 4.3 17.0 53.3 36.5 45.2

Gross profit margin (%) 21.2% 25.0% 33.1% 32.0% 31.2%

Net profit margin (%) 12.5% 24.9% 37.5% 37.1% 51.5%

Revenue growth rate - 75.6% 107.2% - (7.9%)

Technical fee growth rate - 650.6% 148.6% - 107.4%

Net profit growth rate - 247.9% 212.8% - 27.9%

EPS* (HK cents) 1.30 4.51 14.09 9.64 12.33

*Based on post-invitation share capital of 320m shares

Selected Financials

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HK$’m FY2005 FY2006 FY2007 9M2008

Debtor turnover days 63 48 32 71

Creditor turnover days 92 67 32 54

Net profit margin 12.5% 24.9% 37.5% 51.5%

Sales/Total assets 1.47 1.21 1.30 0.56

Total assets/shareholder equity

3.50 2.28 1.39 1.26

ROE 64.5% 68.6% 67.6% 36.4%

ROA 18.4% 30.1% 48.8% 28.9%

Ratios

Industry Outlook

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1) Automobile Industry

� PRC automobile sales in 2006 reached 7.22 million. In the first 5 months of 2007, sales of

automobile increased by 21.32% over the last comparative period. The China Automobile Industry

Association estimated that sales of automobile parts (inclusive of spare parts) market in PRC will

reach RMB180.0 billion by 2010 and 95.0% of these parts would be manufactured by Moulds.

� PRC automobile is dependent on imported precision automobile Moulds due to shortage of

domestic supply.

� Trend of automobile industry using Plastic Injection Parts to replace traditional steel parts to achieve

3 key objectives:

i) To reduce weight

ii) To improve fuel consumption

iii) To be more environmental friendly

� A PRC-made vehicle uses less plastic parts (approximately 78.0 kg) than that made in developed countries (approximately 120.0 kg). It is estimated that PRC’s consumption of plastic in the automobile industry will increase in the future.

We believe we have the track record and capabilities to develop and supply Moulds used to produce a

variety of automobile interior and exterior parts

Industry Outlook

We had developed the plastic automobile air

intake manifold injection Moulds and automotive

low pressure Moulds to take advantage of this

trend in the automobile industry

2) PRC Precision Mould Industry

� PRC is the world’s largest importer of Mould (import of US$2.47b in 2006).

Domestic supply of precision Mould in PRC is inadequate to meet demand

while supply of low end Mould exceeds demand. It is estimated that PRC is

only 50% self-sufficient in mid and high end Mould

� Production lead time of most PRC Mould manufacturers are longer than

international manufacturers but the useful live of the Moulds produced is only

half to one-tenth than that of international manufacturers

Sources: Research report of produce and sale and investment analysis on China die and mould

industry dated June 2007 by Forward Intelligence Co., Ltd and 2007 PRC Key Industries

Development Analysis and Strategy Advisory Report – Plastic Industry by China Garsum Consulting

We believe we have a strong technical lead over other PRC Mould

manufacturers. We are able to manufacture high precision Moulds that satisfy

the stringent requirements of well-known international brands

Industry Outlook

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Industry Outlook

3) PRC Electronics and Electrical Industries

� We believe PRC will remain an important outsourcing centre for OEMs and

ODMs of well-known international brands for electronics and household

appliances

� In 2006, PRC’s domestic consumption of small electrical household appliances

reached RMB85.3 billion. The China National Development Research Centre

estimated that growth will be maintained at 8% to 14% for the next 5 years from

2006

Sources: Research report of produce and sale and investment analysis on China die and mould

industry dated June 2007 by Forward Intelligence Co., Ltd and 2007 PRC Key Industries Development

Analysis and Strategy Advisory Report – Plastic Industry by China Garsum Consulting

� Consumer products are generally fast moving and require frequent model

updates/changes. This requires frequent changes of the necessary Moulds

4) IMD Technology

� IMD products have many inherent advantages over traditional Plastic Injection

Parts, including:

i) Better appearance and ability to incorporate complex design;

ii) Better durability; and

iii) Environmentally-friendly to user

� IMD is a technical intensive process and it is difficult to ensure consistent

production quality

� Technically difficult to incorporate more complex product shapes such as

uneven surface contours or deep cavities

We believe that we have a significant lead over our PRC competitors in the

IMD industry and are able to satisfy the stringent requirements of our

customers, extending to products with complex product shapes

Industry Outlook

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Business Strategies & Future Plan

We would be focusing on our R&D capabilities in the fabrication of

large-scale precision automobile Mould

1) Establish manufacturing capability

� Establish our own manufacturing capability for Plastic Injection Parts Mould and

IMD products

� Intend to acquire the Mould and IMD manufacturing equipments of Shenzhen

Precision as well as from other third parties

Business Strategies & Future Plans

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2) Enhance our R&D capabilities

� We would continue to focus on R&D, projects that we intend to focus on includes:

i. Mould R&D to develop more applications for the automobile industry

ii. More complex IMD technology to produce larger and more complex

products in particular automobile and aircraft interior trim and laptop covers

iii. More advance CAD/CAM software used in Mould design

iv. Computerised control system which allows ordinary Plastic Injection

machine to perform low pressure Plastic Injection moulding

Business Strategies & Future Plans

3) Expand our customer base and product range

� Expanding our product range for complex and high-end automobile and aircraft

interior parts Mould

� Develop more complex IMD technology for high-end electronics, medical and

telecommunication devices as well as automobile interior trim panels

4) Expand our sales and marketing network

� Expanding sales network in PRC and internationally

5) Expand our business through acquisitions, JVs or strategic alliances

� To strengthen our market position or add value to our existing business

Business Strategies & Future Plans

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Investment Merits

Our automobile Moulds and IMD products have good growth potential

Established relationship with OEMs and ODMs of owners of international automobile and electronic brands

Strong technical expertise in automobile mould and IMD technology

High gross margins due to the technical complexity of our products

Issue Statistics

Offer Shares

Offer Structure

Listing SGX Mainboard

Price Range

Historical PER

Market Capital

Issue Manager Provenance Capital Pte. Ltd.

Underwriter & Placement agent

DMG & Partners Securities Pte Ltd

Offer Period

Listing Date

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Use of Net Proceeds

Use of Proceeds S$’000

Acquisition of Shenzhen Precision assets/liabilities 200

Investment in additional plant, machineries and production facilities

7,000

Enhancement of R&D capabilities 1,000

Expansion of our sales and marketing network

General working capital and funding for acquisitions, joint ventures or strategic investments

2,858

Total 11,058

Thank You

Q & A

For more information please visit our corporate website at: www.chinakunda.com

11/7/2008

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� Shenzhen Precision is 95% owned by Cai Kaoqun (Chairman and CEO)

and 5% owned by Cai Kaobing (Executive Director)

� The production of our Mould and IMD products are outsourced to

Shenzhen Precision

� Wef 1 Oct 07, the acquisition price of these Mould and IMD are fixed at

direct manufacturing cost of Shenzhen Precision (capped at 80% of our

gross selling price) plus 5% of our gross selling price

� In addition, we provide Technical Services relating to the manufacture

of Mould and IMD products to Shenzhen Precision (see earlier slide)

Shenzhen Precision

� We have an Option to acquire the business and certain assets and

liabilities of Shenzhen Precision relating to its sale and manufacture of

Moulds and IMD products

� The purchase consideration will be based on the net book value of

these business assets less liabilities or independent valuation as

required under PRC laws whichever is higher

� We intend to, upon the listing of our Company, to establish a PRC

subsidiary to acquire these business assets, liabilities and establish our

own manufacturing facilities

Shenzhen Precision