KFIC — Interim / Quarterly Report 2018

Dec 3, 2018

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

• • 1416

2018

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

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Affiliated Companies

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Kwong Fong Industries Corporation

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Pao Fong
Asset
Management
Co. Ltd.
100%
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Kwong Fong Asset Holdings Management Limited Co. Ltd. 100% 100% Paid-in Est. Company Name Capital Main Business or Manufacturing Product Date (Thousand NTD) Kwong Fong Holdings Limited 81.06.19 US$ 17,800 Investment of different assets Pao Fong Asset Management Asset Management, Real-estate Development, Housing 87.02.04 NT$ 1,100,000 Co. Ltd. Construction, Mall Management

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Mall – Site planning

Kwong Fong Plaza

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• 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 m2 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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Mall – Location

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 Luzhu
Taoyuan Yang Mei
Zhongli Long Tan
Pingzhen Gui Shan
Daxi
New Taipei City→ Sanxia Shulin
Yingge
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Mall – Operation

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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

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

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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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3Q ‘18 Financial Results Highlights

in NT$ thousands	3Q'18		2Q'18		Diff	%
Net revenue	94,963		61,057		33,906	56%
Gross profit	74,755		60,682		14,073	23%
Net income(Loss)	(4,612)		(28,146)		23,534	-84%
EPS (Loss)( in NT$)	(0.02)		(0.15)		0.13	-87%
Total Assets	8,382,932		8,611,428		(228,496)	-3%
Total Liabilities	4,290,932		4,523,416		(232,484)	-5%
Total Equity	4,092,000		4,088,012		3,988	0.1%
NAVPS( in NT$)	22.08		22.06 0.02 0.1%

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Consolidated Income Statement

in NT$ thousands	3Q '18			3Q '17		Diff	%			1-3Q '18			1-3Q '17		Diff	%
Net revenue	94,963			108,347		(13,384)	-12%			212,640			2,150,050		(1,937,410)	-90%
Cost of revenue	20,208			37,431		(17,223)	-46%			20,931			1,531,921		(1,510,990)	-99%
Gross profit	74,755			70,916		3,839	5%			191,709			618,129		(426,420)	-69%
Marketing Exp.	64,397			69,958		(5,561)	-8%			188,093			391,566		(203,473)	-52%
General and administrative Exp.	12,046			9,242		2,804	30%			44,850			77,125		(32,275)	-42%
Income(Loss) from operations	(1,688)			(8,284)		6,596	-80%			(41,234)			149,438		(190,672)	-128%
Non-operating income and expenses	1,363			(17,251)		18,614	-108%			111,145			7,824		103,321	1321%
Pretax profit (Loss)	(325)			(25,535)		25,210	-99%			69,911			157,262		(87,351)	-56%
Tax	(4,287)			(17,124)		12,837	-75%			(21,229)			(2,105)		(19,124)	909%
Net income(Loss)	(4,612)			(42,659)		38,047	-89%			48,682			155,157		(106,475)	-69%
EPS (Loss)( in NT$)	(0.02)			(0.21)		0.19	-90%		0.26			0.77			(0.51)	-66%

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Consolidated Balance Sheet

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in NT$ thousands
	Sep2018		%		Dec 2017		%		Diff	%
Total current assets	1,918,028		23%		1,885,121		22%		32,907	2%
Cash and cash equivalents	342,006		4%		569,064		7%		(227,058)	-40%
Unfinished Construction /Propertyfor sale	867,694		10%		887,554		10%		(19,860)	-2%
Non-current Assets Held for Sale	483,634		6%		224,608		3%		259,026	115%
Others	224,694		3%		203,895		2%		20,799	10%
Total noncurrent assets	6,464,904		77%		6,731,687		78%		(266,783)	-4%
Investments accounted for usingequitymethod	1,788,354		21%		1,731,778		20%		56,576	3%
Property, plant and equipment	4,407,290		53%		4,738,435		55%		(331,145)	-7%
Others	269,260		3%		261,474		3%		7,786	3%
Total Assets	8,382,932		100%		8,616,808		100%		(233,876)	-3%
Total current liabilities	1,314,949		16%		1,337,743		16%		(22,794)	-2%
Short-term bank loans	1,234,863		15%		1,004,741		12%		230,122	23%
Others	80,086		1%		333,002		4%		(252,916)	-76%
Total noncurrent liabilities	2,975,983		35%		3,055,279		35%		(79,296)	-3%
Long-term bank loans	2,599,987		31%		2,704,895		31%		(104,908)	-4%
Deferred income tax liabilities	340,194		4%		315,241		4%		24,953	8%
Others	35,802		0%		35,143		0%		659	2%
Total Liabilities	4,290,932		51%		4,393,022		51%		(102,090)	-2%
Total Equity	4,092,000		49%		4,223,786		49%		(131,786)	-3%

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Consolidated Cash Flows Statement

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in NT$ thousands
	1-3Q'18		1-3Q'17
Net cashgenerated by /usedinoperating activities	(165,047)		1,218,813
Pretaxprofit	69,911		157,262
Depreciation& amortizationexpense	63,293		66,828
Gainondisposalof investment	(125,771)		0
DecreaseinUnfinished Construction/Inventory			1,197,038
Others	(172,480)		(202,315)
Net cash generated by /used in investing activities	36,325		(137,635)
Proceedsfromdisposal investment	162,441		0
Capitalexpenditures	(127,546)		(262,717)
Other financialassets			121,327
Others	1,430		3,755
Net cash generated by /used in financing activities	(96,752)		(427,634)
Increaseinshort-term loans	125,000		168,141
Cashdividends	(222,411)		(617,807)
Others	659		22,032
Effect of exchange rate changes	(1,584)		(23,796)
Net increase (Decrease) in cash and cash equivalents	(227,058)		629,748
Cash and cash equivalents, end of period	342,006	942,823

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Thank You.

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