KFIC — Investor Presentation 2019

Jul 9, 2019

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

-1416-
2019

Notes:

Disclaimer

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.

Notes:

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

Notes:

Affiliated Companies
Kwong Fong Industries Corporation

Pao Fong Asset Management Co. Ltd.
Kwong Fong Holdings Limited
100%
100%

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

Notes:

Mall – Location

The Commercial area benefits over a million citizens from both Taoyuan City and New Taipei City.

Distance Commute	10km 20mins	20km 40mins
Taoyuan City→	Bade	Luzhu
	Taoyuan	Yang Mei
	Zhongli	Long Tan
	Pingzhen	Gui Shan
	Daxi
New Taipei City→	Sanxia	Shulin
	Yingge

Notes:

Mall – Site planning

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/16,525m2 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.

Notes:

Mall – Operation

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.
Carrefour
4800 ping New Concept
Mall Highly comfortable,
High product diversity

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

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

Notes:

Shopping Mall Revenue

Chart

Category	2017	2018	2019
1月	14675498.0	19100366.0	18548459.0
2月	16068630.0	18795434.0	18915837.0
3月	18518151.0	16531752.0	18509709.0
4月	21360771.0	21018945.0	None
5月	17888891.0	18120120.0	None
6月	17825601.0	19633813.0	None
7月	19087662.0	21619841.0	None
8月	18399460.0	20381658.0	None
9月	17400569.0	19013652.0	None
10月	19052986.0	18407347.0	None
11月	19024587.0	18139934.0	None
12月	20667798.0	20740356.0	None

Notes:

2019Q1 Consolidated Income Statement
| | 2019Q1 | | 2018Q1 | | Diff | % |
| --- | --- | --- | --- | --- | --- | --- |
| OPERATING REVENUES | 56,307 | | 56,620 | | (313) | -0.60% |
| OPERATING COSTS | (12) | | (348) | | (336) | -97% |
| GROSS PROFIT | 56,295 | | 56,272 | | 23 | 0% |
| OPERATING EXPENSES | (69,782) | | (75,938) | | (6,156) | -8% |
| OPERATING PROFIT | (13,487) | | (19,666) | | (6,179) | -31% |
| NON-OPERATING INCOME AND EXPENSES | 31,470 | | 115,990 | | (84,520) | -73% |
| PROFIT BEFORE INCOME TAX | 17,983 | | 96,324 | | (78,341) | -81% |
| TAX | (3,601) | | (14,884) | | (11,283) | -76% |
| NET INCOME | 14,382 | | 81,440 | | (67,058) | -82% |
| EPS (Loss) ( in NT$) | 0.08 | | 0.44 | | (0.36) | -82% |

Notes:

2019Q1 Consolidated Balance Sheet
| | 2019.3.31 | | | | 2018.12.31 | | | | 2018.3.31 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| in NT$ thousands | 金額 | | % | | 金額 | | % | | 金額 | | % |
| Total current assets | 1,426,873 | | 18% | | 1,323,463 | | 17% | | 1,787,725 | | 21% |
| Cash and cash equivalents | 228,600 | | 3% | | 128,571 | | 2% | | 493,760 | | 6% |
| Unfinished Construction /Property for sale | 808,555 | | 10% | | 808,555 | | 10% | | 887,554 | | 11% |
| Non-current Assets Held for Sale | 175,660 | | 2% | | 186,096 | | 2% | | 199,740 | | 2% |
| Other noncurrent assets | 214,058 | | 3% | | 200,241 | | 3% | | 206,671 | | 2% |
| Total noncurrent assets | 6,308,326 | | 82% | | 6,324,679 | | 83% | | 6,694,373 | | 79% |
| Investments accounted for using equity method | 1,651,179 | | 21% | | 1,642,036 | | 22% | | 1,687,381 | | 20% |
| Property, plant and equipment | 4,371,655 | | 57% | | 4,389,793 | | 57% | | 4,730,175 | | 56% |
| Other noncurrent assets | 285,492 | | 4% | | 292,850 | | 4% | | 276,817 | | 3% |
| Total Assets | 7,735,199 | | 100% | | 7,648,142 | | 100% | | 8,482,098 | | 100% |
| Total current liabilities | 604,786 | | 8% | | 532,211 | | 7% | | 1,271,845 | | 15% |
| Short-term bank loans | 509,983 | | 7% | | 420,000 | | 6% | | 1,042,393 | | 12% |
| Other current liabilities | 94,803 | | 1% | | 112,211 | | 1% | | 229,452 | | 3% |
| Total noncurrent liabilities | 2,864,635 | | 37% | | 2,869,342 | | 38% | | 2,950,501 | | 35% |
| Long-term bank loans | 2,500,000 | | 32% | | 2,500,000 | | 33% | | 2,577,351 | | 30% |
| Deferred income tax liabilities | 318,135 | | 4% | | 321,144 | | 4% | | 337,103 | | 4% |
| Others | 46,500 | | 1% | | 48,198 | | 1% | | 36,047 | | 1% |
| Total Liabilities | 3,469,421 | | 45% | | 3,401,553 | | 44% | | 4,222,346 | | 50% |
| Total Equity | 4,265,778 | | 55% | | 4,246,589 | | 56% | | 4,259,752 | | 50% |

Notes:

2019Q1 Consolidated Cash Flows Statement
| in NT$ thousands | 2019Q1 | 2018Q1 |
| --- | --- | --- |
| Cash and cash equivalents, beginning of period | 128,571 | 569,064 |
| | | |
| Net cash generated/used in by operating activities | (57,274) | (68,880) |
| Net cash generated by /used in investing activities | 67,006 | 86,292 |
| Net cash generated by /used in financing activities | 90,040 | (89,096) |
| Effect of exchange rate changes | 257 | (3,620) |
| Net increase (Decrease) in cash and cash equivalents | 100,029 | (75,304) |
| | | |
| Cash and cash equivalents, end of period | 228,600 | 493,760 |

Notes:

Thank You.

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