KFIC — Interim / Quarterly Report 2017

Sep 28, 2017

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廣豐實業股份有限公司 KWONG FONG INDUSTRIES CORPORATION

• • 1416

OPERATING REPORT

2017.SEP.

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Disclaimer

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 Contents within this report are based on the company’s predictions of future operations and are prospective descriptions that contain elements of risks and uncertainty. Hence the actual results of business operations might differ to the descriptions in this report.

 With the exception of law regulations, the company is exempt from any responsibilities on new information, future occurrences or other means mentioned within the contents of this report.

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Corporate Introduction

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Kwong Fong Industries Corporation Establishment Date：24[th] June 1968 Floatation Date： April 1976 Paid-in Capital：1,853,421,680 NTD ：Chiu Wen Da Chairperson Main Business： Sale & Manufacture of household fabrics, Property Development, Housing Construction, Mall Management

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1968 1992 1998 2009 2014 2016 2017
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	Founder and Chairman, Mr. Ho Ying Tsai established "Kwong Fong Industries Corp." and the "Life" trademark with paid-in capital of 20 million NTD.	Invested in the establishment of Kwong Fong Overseas Development Ltd.	Invested in the establishment of Pao Fong Investment Ltd; and later renamed as Pao Fong Asset Management Co. Ltd.	The completion of Kwong Fong redevelopment zone at Bade Dist., Tao Yuan City. District. (previous location of Kwong Fong Taoyuan Factory)	Initiation date of the construction of Kwong Fong Plaza.	Acquired use permit for Kwong Fong Plaza	Official Opening of “Kwong Fong Plaza”

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Affiliated Companies

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Kwong Fong Industries Corporation

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Pao Fong Asset
Kwong Fong Life Towel Industrial
Management
Holdings Limited Corporation
Co. Ltd.
100% 74.92% 0.08% 100%
Paid-in Capital
Company Name Est. Date Main Business or Manufacturing Product
(Thousand NTD)
Kwong Fong Holdings Limited 1992.06.19 US$ 17,800 Investment of different assets
Pao Fong Asset Management Asset Management, Real-estate Development, Housing
1998.02.04 NT$ 1,000,000
Construction, Mall Management
Co. Ltd.
Life Towel Industrial
2007.07.04 NT$ 84,000 Manufacture and Sale of Towels and Household Fabrics
Corporation
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Household Fabric Business

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Towel Products

• Kerchiefs | Hand Towels | Bath Towels | Towel Blankets | Pillow Towels | Shower Mats | Bath Robes

• The recent years, the company has been focusing on the refinement of products, the development of fashionable designs, the achievement of innovative competitiveness and established itself as the leader in home textile branding and technology.

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Revenue Breakdown
Towels
Bedding
75%
17%
Others
8%
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Bedding Products

• Blanket Covers| Pillow Case | Bed Sheets| Bedspreads | Mattress Protectors | Memory Foam Pillow/Feather Pillow/Ultra Thin Fiber Pillow| Thick Blankets/Thin Blankets/Feather Blankets| Lamb Wool Blankets/Flannel Blankets

• Supplier of bath towels, sheets, blanket covers, feather pillows etc. for multiple 4/5-star hotels, hypermarkets and corporate purchase across Greater China .

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- Construction Main Construction Projects

Project Name	Kwong Fong Park No. 1	Kwong Fong Park No.2	Kwong Fong Park No.3	Kwong Fong Plaza
Construction Time Span	2011~2014	2012~2015	2013~2016	2013~2016
Site Area	7,139_m2_	10,160_m2_	5,410_m2_	28,552_m2_
Building Type	Residential Building 23F/B2	Residential Building 21F/B2F	Residential Building 18F/B2F	Commercial Building 6F/B4
	Townhouse 4F/B1F
Number of Households	Building 87 households Townhouse 19 households	200 households	136 households	1building
Unit Size	208~512 m2	208~370m2	182~218m2	107,413_m2_
Total Sales By Project	18 billion NTD	34 billion NTD	18 billion NTD

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Industry and Commerce District – Mall Management

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Kwong Fong Plaza

• Adopting the Grand Cruise ship as an inspiration, Kwong Fong Plaza implements a spacious commerce plaza through the design concept of a city gateway. The vertical green landscape on the west side leads to the third floors "Sky Podium", naturally blending in the 5,000 ping/16,525 m[2] ecological landscape scenery of Kwong Fong Park and establishing itself as the new landmark of Bade District.

• Combines with Taoyuan Public Library -Taoyuan City Children’s Museum of Art to create the ultimate incubator for local youth.

• Shopping, Leisure, Recreation, Gourmet and Culture, 5 Functions in one, satisfying daily needs and family leisure. It is also a mall with complementary the largest outdoor environmental park in Taiwan.

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Industry and Commerce District – Mall Management The Commercial area benefits over a million citizens from both Taoyuan City and New Taipei City

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Distance 10km 20km
Commute 20mins 40mins
Taoyuan City→ Bade LuWei
Taoyuan Yang Mei
Zhongli Long Tan
Pingzhen Gui Shan
Daxi
New Taipei City→ Sanxia Shulin
Yingge
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Industry and Commerce District – Mall Management

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Carrefour

4800 ping New Concept Mall Highly comfortable, High product diversity

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Ambassador Theatre

High Tier Cinema with 8 movie halls Exclusively equipped with D-box Seating

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Peng Yuan Banquet Hall 1800 ping, 7 meter high ceiling 4 different style of banquet halls

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Decathlon 1500 ping wholesale store Outdoor Basketball Court Experiencing Area for over 60 forms of sports

This “Premium Power Center” is composed of the 4 major mega stores including a hypermarket, sporting retail, cinema and banquet hall together with a variety of selected gourmet restaurants.

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Operational Revenue

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4,000
3,463
3,500
3,000
2,500
2,000
1,500
988
802
1,000
160
500 135 156 204 169 208 186
36 18
2013 2014 2015 2016
Household Fabrics Business Construction Business Others Unit: Million NTD
Year 2013 2014 2015 2016
Total Revenue (M) 331 1,162 1,365 3,667
Growth Rate 77% 251% 17% 169%
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Operating Performance & Dividends

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1,200 1,046 30%
29%
1,000 22% 25%
20%
800 20%
600 15%
17%
400 259 270 10%
200 5%
55
0%
2013 2014 2015 2016
Gross Profit (M) Profit Margin %
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The stock returns of the past 4 years was 107% (cash dividend/earning per share)

Year	2013	2014	2015	2016
EarningPer Share	0.19	1.68	-0.13	4.69
Cash Dividend	2.31	0.3	1.3	3

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Income Statement H1.2017

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Net Income

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Investments &
Others
43,148
21.8%
Household
Fabrics
Business
Construction &
213
Mall
0.1%
Management
Business
154,455
78.1%
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Unit:Thousands	Unit:Thousands
Profit & Loss Statement	Jan.-Jun. 2017
Revenue	2,041,703
Gross Profit	547,213
Net Profit	157,722
Net Income	197,816
EPS(NTD)	0.96
Gross Profit Margin	26.80%
Net Profit Margin	7.70%
Net Income Margin	9.70%

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Thank You

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